Value Of Gold Dollars

Judge Xoah W. Cheever, of ihis city, autlior of the series of articles on the curn ïu-y question, publlshed in The Times a few weeks ago. luis written the following letter to the Bunkers' .Magazine: Editor Bankers' Magazine: Sir:- In publishing sonw articles in behalf of the gold basis in one of our newspapers, I bad occasion to rnake some statements in regard to bullion value of the gold in a gold dollar, and of the silver in a silver dollar. Xot being familiar with these values, I asked a leading jeweler of our city, Mr. Wllliam Arnold. what was the value of the gold as bullion in the gold dollar, supposing that the gold dollar is ïnelted down. Mr. Arnold informed me that if the silver dollar was melted, the bullion would be worth about 50 cents, and if the gold dollar was melted, the bullion in it would be worth SS cents or 89 cents. The accuracy of this statement in regard to the gold dollar has been questioned by a good many here. One of our citizens wrote to the mint in 1 New York and they stated that they would give a dollar for the bullion in a gold dollar if but llttle of it had been lost by wear or otherwise. In other words I understand from the statement of the director of the mint that if you should melt down a gold dollar, they would give for the bullion in it 100 cents. Our jeweler, Mr. Arnold, still insists that the bullion in a gold dollar is only worth in the market at the most S9 cents. I thought perhaps you might give me a decisive opinión upon this questiou. I wis'h you would infonn me what is the value of the gold as bullion in a gold dollar, supposing that the gold dollar is melted so as not to be valuable as currency. 1 had always supposed that there was some alloy in a gold dollar, but how much of course I eould not teil. Our business men here seem to hare different opinions in regard to it, and I would like to get something decisive of the matter if I can. NOAH W. CHEEYER. Ann Arbor, Mich., June 25, '96. Answer.- The question propoundecl by our Michigan correspondent was referred to Mr. Maurice L. Muhlemah. author of "Monetary Systems of the World. " and Deputy Assistant Treas'urer of the LTnited States, at New York. Mr. Muhleman is a recognizèd authority on matters pertaining to coinage and money. His reply to the above question follows. Xew York, July 2. '96. Editor Bankers' Magazine: Sir:- In reply to your inquiry I beg to say that the value Of the bullion contained in a "gold dollar of the United States, when full weight, is 100 cents. An oupce of unalloyed gold is wortli at the mint $20.67 (plus a slight fraetion when dealing with very large amounts). At this valuation a grain of gold is worth 4.30 1-16 cents. The dollar weighs 25.8 grains, of whicn one-tentli is alloy, leaving 23.22 grains of pure gold. At the aboveinentioned valuation per grain this would make the dollar contents equal to 99.991125 cents, and by allow:ng for the fraetional differeuce the full value of 100 cents results. Your inquirer bas probably bepn misled by the assumption that the gross weight f the dollar is 23.22 grains; this would account of a difference of about 10 per cent. To be more nearly exact: Value of ounee of fine gold, .20.67183462532 plus. Value of grain of fine feold, $00.043066322136 plus. Very truly yours.