54 BULLETIN OF THE 



follows that, at the present time, the greenback price of silver 

 bullion — 25 grammes nine-tenths fine to the dollar — is 103 (more 

 exactly, 102.9) ; the greenback price of silver coin, of thei same 

 weight and fineness, ranging from 107.6 for older and abraded 

 coins, to 111.1 for coins of the full legal weight. 



Exportation of Silver Coin for Melting or Becoinage. — 

 Should the price of greenbacks, relatively to that of silver bul- 

 lion, advance three per cent., silver coin, even at its minimum 

 or bullion value, would prove more profitable for circulation as 

 money than for use in the arts, or for exportation for coinage 

 abroad. 



Exportation of Silver Coin for Use as Money Elsewhere.—- 

 The fractional silver coin of the United States is demanded, in 

 limited quantities, by certain South American and other countries, 

 chiefly on this side of the Atlantic, for circulation ; which fact 

 accounts in part for the higher price which our fractional silver 

 coin commands in the market compared with bullion. To what 

 extent this fact will operate — when a liberal supply of coin shall 

 be issued and thrown upon the market — to retain as now, the 

 price of coin beyond that of bullion, is, as yet, uncertain. 



Effect on the Price of Silver Coin of the Demand for its Use 

 at Home as Subsidiary Coinage. — Gold and greenbacks are each 

 legal tender of payment in all amounts, but United States frac- 

 tional silver coin is legal tender of payment only in limited 

 amounts, not exceeding five dollars in any one payment. The 

 effect of this provision of law is to give to silver coin a value 

 superior to its intrinsic value as bullion, and to protect it against 

 remelting at home, and against exportation for melting or re- 

 coinage abroad. 



When greenbacks rule in the market at a lower point than 

 that of silver coin, such coin will not be in demand at home for 

 use as money for general circulation, except at the extreme 

 Southwest and on the Pacific Slope. When, however, green- 

 backs command in the market a higher price than silver coin, the 

 subsidiary silver coin will be in demand as money, but will com- 

 mand a price above that of its value as bullion. 



When greenbacks advance from 85^, their existing rate, to 88, 

 the existing bullion rate (corresponding to a premium on gold of 

 13.6) — assuming that the relative values of gold and silver remain 

 unchanged — silver coin will necessarily cease to be profitably 



