Second. By exchange for gold coin.

Third. Under general regulations prescribed by the Director of the Mint, and approved by the Secretary of the Treasury September 3, 1878, directing that the superintendents of the coinage mints "upon the receipt of a written request of the Treasurer of the United States, forward by express standard silver dollars in the sum of one thousand dollars, or a multiple thereof, to such party or parties as he may designate. The expense of transportation to be paid by the mint from the silver profit fund." Section 27 of the coinage act of 1873 provides that the expense of distributing the subsidiary silver coins shall be paid from the silver profit fund. In the act directing the coinage of the standard silver dollar the gain arising from such coinage is required to be accounted for and paid into the Treasury as provided under existing laws relative to the subsidiary coinage.

Under these provisions and the regulation referred to, standard silver dollars are transported from the mints not only to assistant treasurers, depositaries, and other officers of the United States, but to such point as the Treasurer of the United States may designate, and the expense is charged to the silver profit fund.

If there is any doubt as to this construction of the law, or of the propriety of such method of distribution, and the payment of expenses thereof, I respectfully suggest that additional legislation be requested conferring any needed authority, or more specifically defining the proper cases for its application.

Section 28 of the coinage act of 1873 provides that the subsidiary silver coins shall only be paid out at the mints in sums of not less than $100 at par in exchange for gold coins.

The propriety of limiting such exchange to gold coin at the present time is not apparent, and if any exchange for United States notes is not authorized I respectfully suggest that the existing laws ought to be amended.

I append herewith a table exhibiting the movement, circulation, and coinage of standard silver dollars on July 1, 1878, and each six months thereafter to July 1, 1880, and for the four months ending November 1, 1880, as shown by the books of this office and the Treasurer's monthly statement of assets and liabilities:

COMPARATIVE STATEMENT of the MOVEMENT, CIRCULATION, and COINAGE of STANDARD SILVER DOLLARS at the end of each six months, from July 1, 1878, to July 1, 1880, and for the four months ending November 1, 1830.

APPROPRIATIONS, EARNINGS, AND EXPENDITURES.

The amount appropriated for the support of the respective mints and assay offices during the fiscal year ended June 30, 1880, was $1,228,800, out of which the sum of $1,085,482.91 was expended. In addition the

sum of $92,033.46 was expended on account of the mints, and $13,558.62 at the Treasury Department, a total of $105,592.06 from the appropriation contained in the act of February 28, 1878, authorizing the coinage of the standard silver dollar.

The use of this appropriation to meet the expenditures at the Philadelphia and New Orleans mints became necessary on account of the large coinage of standard silver dollars executed at those mints, which unavoidably carried the expenses above the specific appropriations for their support. This, however, was offset by reduced expenses resulting from correspondingly diminished coinage at other mints.

The total expenditures at all the mints and assay offices were $51,283.63 less than the amount specifically appropriated.

The appropriations and expenditures were distributed as shown in the following table:

*Contains $5,000 for repairs and machinery. † Contains $4,994.06 for "Repairs and machinery."

The charges collected from depositors for parting and refining bullion are used as provided by law for paying in full the expenses thereof, including labor, material, and wastage.

The total amount collected from depositors and paid into the Treasury on account of parting and refining bullion during the year ended June 30, 1880, was $257,771.37, of which the sum of $249,479.23 has been expended.

The following statement shows the amount of charges and expendi tures, including the proper portion of the operative wastages and loss on sale of sweeps, on account of parting and refining bullion at the mints

at Philadelphia, San Francisco, and Carson, and the assay-office at New York, during the fiscal year ended June 30, 1880.

The commission appointed by the President to make the annual test of the fineness and weight of the coins reserved from each delivery at the mints, met at the mint at Philadelphia, pursuant to law for that purpose.

The following extracts from the reports of the committees on weighing and assaying show that the examination was in all respects satisfactory. The committee on weighing report:

That from the tabular statement submitted it appears that the weights of the reserved coin from the several mints, both in masses and in single pieces, are in all cases within the limits of legal tolerance, and are therefore entirely satisfactory. The result also of the examination of the weights ordinarily employed in the mint is entirely satisfactory to the committee.

The Committee on Assaying beg leave to present the following report: That they have taken the gold and silver coins reserved from the several mints, viz, Philadelphia, San Francisco, Carson City, and New Orleans, and have assayed the same either in mass or in individual coins and have found in all cases the coins to be in conformity with law of Congress, and all safely within the limits of tolerance.

ESTIMATION OF THE VALUE OF FOREIGN COINS.

Pursuant to the provisions of section 3564 of the Revised Statutes, on the 1st day of January last estimation was made by the Director of the Mint and proclamation by the Secretary of the Treasury, of the values of the standard coins in circulation of the various nations of the world. The basis of comparison for estimating the values of certain silver coins was changed from that taken in preceding years, for the reason stated in the correspondence relating thereto, copies of which are submitted herewith.

The values of foreign gold coins of full standard weight and fineness are readily computed and expressed in the money of account of the United States, the gold-dollar piece at the standard weight of twentyfive and eight-tenths grains having been established by section 3511 of the Revised Statutes as the unit of value.

The weight and fineness of foreign gold coins in comparison with that of such gold dollar readily determines their value.

But as to foreign silver coins, while standard dollars and fractions of dollar of given weight and fineness have been authorized and made legal tender, the standard of value legally provided has not been changed.

When gold and silver coins of the same denomination are in circulation with like actual purchasing power, the comparative values of the gold coin and gold dollar measured by their weight and fineness can

still be taken as the basis for estimating the value of both coins. But where the coinage of silver is unrestricted, and the actual circulation consists chiefly of silver coins, must the value of such coins be esti mated by comparing their weight and fineness with United States silver coins, or by ascertaining their commercial value compared with the standard gold dollar?

The latter was taken as the proper construction of the law, and the values of foreign silver coins in countries where silver is the sole standard, or coined without limitation, were estimated for 1880 at their commercial gold value.

A different rule having been heretofore followed, the estimation for 1880 will show changes in the valuations of several foreign silver coins, other than would have been occasioned simply by variations in the price of silver bullion.

EXAMINATIONS AND ANNUAL SETTLEMENTS.

During the year personal examinations were made by the Director or his representatives of all the mints and assay-offices except those at Boise City and Charlotte.

They were generally found to be in an efficient and satisfactory condition, and the officers and employés attentive to their duties. But few errors appeared to have occurred in their transactions with individuals or in keeping their books and records and rendering their accounts to the government.

The wastage of the operative officers at the annual settlement was found in each case to be within the legal limits and appeared to have been actually incurred, and was therefore, with my approval, credited to their respective accounts.

The total wastage during the year at the coinage mints was $18,369.14 gold, and $26,617.93 silver.

The amount operated upon in the melting and refining departments of the mints was of gold bullion 6,905,941.191 standard ounces, upon which the legal limit for wastage was 6,905.941 standard ounces, the actual wastage only 866.174 standard ounces; and of silver bullion 51,313,811.72 standard ounces, on which the legal limit for wastage was 76,970.71 standard ounces, and the wastage 18,789.53 ounces.

The amount operated upon in the coining departments of the mints was of gold bullion 6,653,791.119 standard ounces, on which the legal limit for wastage was 3,326.895 ounces, the actual 121.164 ounces; and of silver bullion 48,302,083.84 standard ounces, on which the legal limit for wastage was 48,302.08 ounces, and the actual wastage only 4,085.23

ounces.

In the appendix will be found a statement showing in detail the wastage of the operative officers and the loss on sale of sweeps at the comage mints and the manner in which the bullion fund was reimbursed for the same.

PRESENT CONDITION OF THE MINTS AND ASSAY OFFICES.

United States Mint at Philadelphia.-The coinage at the parent mint has been unusually heavy, having in number and value of pieces coined been double that executed in the preceding year.

The increase was chiefly in the gold and minor coinage. The yearly coinage of standard silver dollars, however, was one-quarter greater than in 1879,

The comparative deposits and coinage of the two years have been as follows:

It is a gratification to report that this increased coinage did not cause a proportionate increase of expenditures.

The regular and specific appropriations were, however, inadequate to meet all the expenses of the mint in accomplishing this unusual amount of work, and it became necessary to make use of the appropriations contained in the act of February 28, 1878, for the coinage of the standard silver dollar. On account of the large amount of imported gold bullion yet uncoined and the lower rates at which silver bullion can be procured for delivery at this mint, its coinage, so long as silver dollars are coined and the excessive importation of gold continues, will be unusually heavy, and increased facilities will be needed to perform the work required.

United States Mint at San Francisco.-The diminished production of gold and silver on the Pacific coast has sensibly affected both the amount of deposits and coinage.

The coinage at this mint was, in 1880, $13,000,000 less of gold and $6,000,000 of silver than in 1878.

The comparative values of the deposits and number of pieces coined for the last and preceding years, are:

A large number of eagles and half eagles have been coined, and consequently the number of gold pieces struck has been increased instead of diminished. Improvements in refining bullion, in the appliances used and arrangement of apparatus have been made, and experiments instituted to ascertain the most economical and desirable processes for parting and refining the precious metals. I made careful inquiry into the unusual wastage of the melter and refiner, and found upon examination of the character of the deposits and a comparison of the fineness of the bullion of the last with the preceding years, that the amount of lowgrade and refractory bullion had largely increased without any deduction having been made from the weight of the deposit for the protection of the government, as authorized by the instructions.

I directed that thereafter deductions should be made on unusually base deposits of gold or silver sufficient to cover the probable and unavoidable loss on such bullion.