Compared with the previous year, there was an increase of $3,182254.76 in the amount of silver operated upon-$4,086,766.70 in silver coinage and $181,631.36 in silver bars.

in the mint at San Francisco, enlargement of the facilities in the United States assay office at New coining facilities at the mints in Philadelphia and

s for the new mint edifice at San Francisco, and ch it was constructed, contemplated the use of the for refining. When the building had been completed For coining operations, it was thought that the space e refining was sufficient for the employment of the sulmethod, but after the plans and drawings for the same had d, it was found that a sufficient capacity could not be of the iron portions of the rooms secured against serious insulphurous acid gas generated and emitted during the refining After an exhaustive examination of the subject, it was ded, with your approval, to equip a nitric-acid refinery, with cerodifications and improvements, having for their object increased eney and reduced cost of separating (usually termed refining) of precious metals.

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e arranging of the plan of the refinery and its equipment was insted to Robert E. Rogers, professor of chemistry in the University : Pennsylvania, whose eminent qualifications as a chemist and metalgigist, rendered him peculiarly qualified for this service, and who performed the duty assigned him in an entirely satisfactory manner. The refinery has been in successful operation since the 26th day of August last, and with much advantage to the public interests.

The business of the assay office in New York has increased to such an extent during the last two years, as to render necessary the occupancy of the rooms in the Wall street building, which have until recently been rented to banking firms. These rooms have been altered, repaired, and otherwise put into condition for the purposes to which they are hereafter to be devoted, and the capacity for melting and refining bullion has thereby been doubled, and the office is better adapted in many respects for the convenient transaction of its business.

A careful examination by the Supervising Architect of the Treasury, of the rear building, in which refining by sulphuric acid has been carried on for a number of years, having developed the fact that the iron beams were corroded by sulphurous acid gas to such an extent as to weaken them and render additional supports necessary, the latter have been provided and put in place by the officer referred to.

The duplication of the coining machinery at the mint in Carson, for which an appropriation was made two years ago, has been completed and the coining capacity doubled. At the mint in Philadelphia, the annealing capacity having been found too limited, two additional furnaces have been erected, and the coining capacity thereby increased. With these improvements the mints and assay offices are in a very

efficient condition.

ADDITIONAL VAULT FACILITIES REQUIRED.

ce of the last year has demonstrated the insufficiency of the Treasury and its offices for the convenient and safe particularly in the Western States, and more silver coin n retained in the custody of the mints than could be for.

ais fact and the increased amount of coin which will have

to be stored in the Treasury offices in different parts of the country before specie payments shall have been resumed, it is suggested that the provision of additional vaults should be undertaken at an early day.

PREPARATIONS FOR COINAGE AT NEW ORLEANS.

Under the provisions of the act of Congress approved June 20, 1874, the mint at New Orleans has been prepared for re-opening as far as the limited appropriations therefor would permit, and it would now be practicable to conduct thereat the operations of melting, assaying, and stamping of bullion; but the appropriations having been made for the purpose of re-opening the establishment, "to be conducted hereafter as a mint subject to the provisions and restrictions of the coinage act of 1873," do not authorize it to be conducted as an assay office.

Estimates for the appropriations necessary to carry into effect the provisions of law above referred to will be submitted for your consid eration and such action as you may deem proper.

THE TRADE-DOLLAR.

In the latter part of the year 1872, it became apparent that the change in the German monetary system, and other causes affecting the demand and supply, would produce a serious decline in the value of silver and injuriously affect our silver mining interests.

To provide a market for the silver mined in the western portion of our country, a coin of a standard likely to make it acceptable in China. was authorized early in the following year, 1873. About two years afterward, January, 1875, a law looking to the substitution of silver for the paper fractional currency was enacted. Upon a superficial examination the trade-dollar may be supposed to interfere with the plan of substituting silver for the fractional currency; such, however, is not the case, its coinage not having the least effect on the general marketprice of silver. The real effect is to make something of a local market at San Francisco, and if our annual production of that metal was not more than the mints could coin, the silver production of the Pacific coast would command slightly better rates; but the fact is, the coiningcapacity of the mints for silver coins of less denomination than the dol lar is not equal to more than half the production, and two years' yield of the mines will, it is probable, furnish sufficient silver to manufacture all the fractional coins that can be advantageously used in the country.

After the redemption of the fractional notes, silver coins, with the exception of the trade-dollar, can only be issued under the coinage laws in exchange at par for gold coins; and as this limitation will be a barrier to their excessive coinage, the demand for bullion for that purpose must, after two or three years, be quite small. The coining rate of silver in trade-dollars is $1.14,2 per standard ounce. Deducting the charge of 14 per cent. on the nominal value (equal to 142 cents per ounce) gives a return to the depositor in that coin of nearly 113 cents per ounce. The fact that the average price of silver purchased for the NOTE. $1,000,000 in gold coin weigh 53,750 troy ounces, or 3,685.71 avoirdupois pounds; equal to, at 2,000 pounds to the ton, 1 ton 16 cwt. 86 pounds. $1,000,000 in trade-dollars weigh 875,000 troy ounces, or 60,000 avoirdupois pounds; equal to, at 2,000 pounds to the ton, 30 tons.

$1,000,000 in subsidiary silver coin, (half and quarter dollars, 20-cent pieces, and dimes,) weigh 803,750 troy ounces, or 55,114.28 avoirdupois pounds; equal to, at 2,000 pounds to the ton, 27 tons 11 cwt. 14 pounds.

fractional coins has been only 1114 cents per standard ounce, proves that the trade-dollar coinage has not influenced the price to any percep tible extent.

The Comstock bullion, which has San Francisco for its natural market, consists, on the average, of twenty-one parts by weight of silver to one of gold. The two metals must be separated or parted before either can be brought to the legal standard for coinage. The most economical proportion for the parting operation being two parts by weight of silver to one of gold, the Comstock bullion admits of gold containing a percentage of silver, being added and refined with but trifling expense compared with that which would be incurred if fine silver had to be purchased and added to such gold to bring it to the proper proportions for refining.

small

This class of bullion is, for this reason, a favorite in the London market, where gold containing a small percentage of silver constitutes principally the partible bullion received, and a higher rate is paid for it there than for fine silver.

Formerly this unparted bullion was nearly all shipped direct from the mines to London, but the coinage of the trade-dollar and repeal of the charge for coining gold have caused it, during the present year, to be refined and minted in the United States.

Ultimately China must have a national coinage of silver, and in the mean time a more extensive use of the silver coins of other countries will be found advantageous not only to the Chinese, but to foreign residents at the different ports. The American trade-dollar has been well received in that empire, and if authority were given to coin at our western miuts five, ten, twenty, and fifty-cent pieces of the same standard, they would no doubt find a ready market at the different commercial ports, and gradually work their way into the interior of the empire.

If this trade-coinage should incidentally afford protection to our mining interests, which have already been injuriously affected by the fall in the value of silver, it could hardly be regarded otherwise than as sound national policy.

PURCHASES AND COINAGE OF SILVER.

The first section of the act of January 14, 1875, for the resumption of specie payments, authorized and required the Secretary of the Treasury, to cause to be prepared as rapidly as possible, silver coins for the redemption of the fractional currency.

The purchases of silver-bullion for this purpose from January 14 to October 31, 1875, have amounted to $9,183,417.37, at an average price, with the refining charge added for the Doré bullion, of 1114 cents per ounce standard. The average price of silver in London during the same period has been 56.99 pence per ounce, British standard, which, reduced to United States standard and money, gives 112 cents.

The following statement exhibits the purchases made to October 31, 1875, and a comparison of rates paid with London quotations: