The exception to the rule in the issuance of subsidiary silver?

[shirohniichan]

Section 4 of the 1853 Coinage Act says that subsidiary silver coins "shall be paid out at the mint,in exchange for gold coins at par, in sums of not less than one hundred dollars."

 

Here is an exception I found reported that year:

 

"New Mint Regulations.

Hereafter all silver found in the California gold will be paid for in standard silver, and gold as heretofore. This is a measure which was much desired by California depositors. The largest issue of new silver coin is to consist of twenty five cent pieces. This new silver work for the mint, it is said will lessen the capacity of the mint to coin gold, but it is thought that the assay office in New York, by the conversion of dust into bars and ingots, will greatly lessen the necessity of so much gold coinage, as they can be used fur commercial purposes. It is said that the assay office will manufacture and stamp bars of $200, $1000. $2000 and $4000 in value, and charge the depositors only the bare cost of their conversion, while hereafter the mint is to charge the depositors one half of one per cent seniorage for the coinage of all gold submitted for that purpose."

 

(Italics added)

 

Los Angeles Star, Volume 3, Number 5, 11 June 1853

 

If this were the case, depositors of California gold would be the beneficiaries of seignorage (although they would have to pay the refining and coining charges), wouldn't they?

[DaveG]

shirohniichan,

 

I'd have to refer to my copy of Carothers to review how silver was supposed to be paid for after 1853, but I'm not sure that the New York Assay Office ended up working under different rules for refining gold than the coinage mints did.

 

I really don't understand how you mean your question though. How do you mean that "depositors of California gold would be beneficiaries of seignorage"?

[Conder101]

Something else you need to know is that oftentimes the rules for paying out coinage for specific forms were ignored.

[RWB]

The custom had been for the mint to keep the silver and use its value to cover parting and refining expenses.

 

Since there was no NYAO in 1853 the changes were aimed at the mints, only.