Q. David Bowers
St. Louis Mint Proposed
In 1884 certain interests agitated for the establishment of a mint in St. Louis. At the time mints were operating in Philadelphia, Carson City, New Orleans, and San Francisco. The coinage of silver dollars figured prominently in the report quoted herewith. The following is excerpted from testimony before the House of Representatives; (Mint at St. Louis, Mo. House of Representatives 48th Congress, Report No. 1549. Washington, D.C., 1884 )
"MAY 14, 1884 ....
"Mr. BLAND, from the Committee on Coinage, Weights, and Measures, submitted the following REPORT [To accompany bill H. R. 873]:
"The Committee on Coinage, Weights, and Measures, to whom was referred to the bill (H.R. 873) to establish a mint of the United States at Saint Louis, Mo., report the same back favorably and recommend its passage.
"This committee adopt the report of the committee on the Forty-seventh Congress upon this subject, and also, as further argument, append to this report the argument submitted to the committee by Hon James O. Broadhead.
"This report of the Committee on Coinage, Weights, and Measures of the Forty seventh Congress submitted as a controlling argument the fact that a large part of the silver coinage was executed at the mint at San Francisco; that the cost of transportation of the coin from San Francisco to the Atlantic States, where it is wanted for circulation, would be very great.
"The secretary of the Treasury, in his report of December 4, 1882, made subsequent to the report of the Committee on Coinage, Weights and Measures, referred to as part of this report, confirms and substantiates the argument of the committee in this respect. We quote as follows, pages 11, 12, of Report of the Secretary of the Treasury, 4th December, 1882:
"STANDARD SILVER DOLLARS AND SILVER CERTIFICATES.
"There had been coined, on November 1, 1882, under the act of February 28, 1878, of standard silver dollars $128,329,880. There were in the treasury at that date $92,946,094, and in circulation $35,383,786. There were in circulation, November 1, 1881, about $34 million. Increase: $1,383,786.
"The increase in the circulation of standard silver dollars between November 1, 1881; and November 1, 1882, was less than a million and a half of dollars. The amount coined during the same time was $27,772,075. The supply in the aggregate, and furnished yearly, is much more than the demand.
"Of the above amount held by the Treasury November 1, 1882, there were in the Sub-Treasury at New York about $19 million, and in the vaults of the assistant treasurer at San Francisco nearly $14 million, and in the mint at that place nearly $27 million, making nearly $41 million in San Francisco. This large accumulation at San Francisco is useless; the call for silver dollars for use as money there is little. The reason for the accumulation there is this: The mints this side of the mountains could not do the needed coinage of gold and coin also the minimum amount of silver dollars required by the law. After the silver dollars had been coined there, there was not good policy in bringing them away, for there was no unsatisfied call for them on this coast, and the expense of carriage is great, never less than 1 %. Besides that, the vaults on this side are inconveniently taxed in the storage of what is here. Indeed, the storage capacity of the mints and other vault room of the government is everywhere severely taxed. There were on hand in the sub-treasury on November 1, 1882, $26,884,337.62 of fractional silver coin. In all, there were 2,400 tons of silver coin stored in the public vaults. If the coinage of standard silver dollars is kept up and the demand for them for circulation is as dormant as now it will be a serious question where the Treasury Department will find, in public receptacles, storage room therefor.
"Another reason for the coinage at San Francisco is that all the bullion for the monthly coinage required by law could not be bought on this side of the mountain at the market rate as required by the law, and that portion brought on the Pacific side was coined there because it would cost so much to bring it to this side for coinage, even if there had been mint facilities therefor.
"We shall not argue the question as to the propriety of the coinage of silver-a question presented in this extract=but will deal with it as the law contemplates; that is, we must coin it at not less than $2 million worth of bullion per month. Does it pay to transport bullion from Colorado to San Francisco and coin it at that mint, where, confessedly, the coin is not needed? Would it not be economical to the government and to the citizen to have his bullion brought to Saint Louis, where it may be coined at least one-half cheaper for the operation of coinage than it can be done in San Francisco, besides saving 1 % on transportation?
"What is to be done with the forty-one millions of dollars now in government vaults at San Francisco? It is not needed there, and never will be. It must at some day be transported to the Atlantic States at a cost of 1 %, or four hundred and ten thousand dollars. The saving of this item alone would have more than compensated for the establishment and running of a mint at Saint Louis for the purpose of coining the silver dollars the secretary has been compelled to have executed at San Francisco, for want of facilities near the center of population. As this point is elaborated fully in the report of last Congress, we will, for further argument on the whole subject, refer it to it.
"[House Report No. 741, Forty-Seventh Congress, first session.]
"The propriety of establishing a mint in the Mississippi Valley has long been discussed. The first legislative act looking to the establishment of a mint in that section of the country was on the 27th of February, 1875, when the Senate passed a resolution directing inquiry to be made as to the proper place for the location of a mint at some point in the Western States or Mississippi Valley. The secretary of the Treasury commissioned Dr. H.R. Linderman, then director of the Mint, to make the investigation, as is set forth in Ex. Doc. No. 11, Forty-fourth Congress, first session, as follows:
"TREASURY DEPARTMENT, "OFFICE OF THE SECRETARY, 'January 5, 1876.
"Referring to the resolution of the Senate adopted February 27, 1875, requesting the president to institute inquiries as to the proper place for the establishment of a branch mint at some point in the Western States or in the Mississippi Valley. Ihave the honor to advise you that, in obedience to your direction, Dr. H.R. Linderman, the director of the Mint, was charged with the duty of making the inquiry directed by said resolution, and has submitted to me his report thereon, which, together withthe accompanying papers, is herewith transmitted.
"I have the honor to be, very respectfully, your obedient servant.
"B.H. Bristow, "Secretary.
"The PRESIDENT."