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SENATE, December 21, 1864.— Referred to the Committee on 
 Finance and ordered to be printed. • 
 
 [By President op Senate. 
 
 COMMXJNICi^TION 
 
 From the Secretary of the Treasury, in responpe to a resolution of 
 
 the Senate calling for certain information in relation to 
 
 the Mint and Assay Office at Charlotte, N. C. 
 
 Treasury Department, C. S. A., ) 
 Richmond, Dec. 19, 1864. J 
 
 Hon. Alexander H. Stephens, 
 
 President of the C. S. Senate : 
 
 Sir : I have the honor to submit to the Senate the following re- 
 ply to the resolution adapted by them on the r2th inst. 
 
 The resolution is in these words : 
 
 " Besolved, That the Secretary of the Treasury be instructed to 
 inform the Senate what di-»po9ition han been made of the machi- 
 nery, imj)lemci.tH and other apfiendagcs of the Miut and Assay 
 Office at Charlotte. North Carolina ; and whether, in his opinion, 
 the work of coining and assaying gold and silver, may not be re- 
 sumed thereat without further dolay." 
 
 The machinery, implements and other appendages of the Mint 
 and At^say Olhce at Charlotte, and the occupation and use of the 
 building were surrendered to the Navy Department, on condition 
 that tbey should be restored at a week's notice, whe ever required. 
 This was done by my predecessor, witk a view to j)romote the con- 
 venience of another Department of the government, it being at that 
 time, apparently the settled policy of Congress, to suppend the op- 
 erations of the several mints in the Confederacy. By the act ap- 
 proved May 14, 1861, it is provided : 
 
 " Skctkik 1. That from and after the 1st day of June, 1 86 1, the 
 operations of. the several m nts in the Confederate States be sus- 
 pended; and th.it all officers therein shall cease to exercise their 
 fun-tions. or to receive any salaries, and that all monevs and bullion 
 in the hands of any officer, shall forthwith be transferred to the 
 Treasurer of the Confederate States." 
 
 In a letter dated June 12, 1861, addressed by the Secretary of 
 the Treasury to Jan es \V . Osborne and W Johnston, Raleigh, the 
 following explanation is given of the policy of the government : 
 
" Your letter of enquiry concerning the policy of the Confeder- 
 ate Government, as to the mint at Charlotte, ha.s hcen duly received. 
 1 have as vet seen no notice that ;he establishment has been turn- 
 ed over, and therefore cannot speak with any authority. The other 
 mints have been closed by act of Congress, and 1 presume the same 
 policy will bp purpuod throui^hont. 
 
 ^' We are endeavorintr to administer the i^ovornmcnt upon the 
 ]'rincipic that each branch of industry ^hall bear its own Imrthens, 
 and not tax another to pay i's <»wn expense?. The principle, ap- 
 plied to the mints, would make the establishment place its charges 
 on such a basis as to par all its expenses; and if its })asiness could 
 not rai^e enough for tliis purpose, it must be discontinued 
 
 " 1 have supposed tiiat the sma'ler mints could not be made to 
 pay the expense ol coinage, but that they might pav for assaying ; 
 and, possit)ly. ilie groat purpose dtsire(l by the miners might be 
 accomplished in that way. The a-isay would enable the gold to 
 pass at the banks, and with the mei chants, and thus meet the wants 
 of the noighhorhood." 
 
 At a subsequent date, namely, on the Gth Augu'^st, 1861, the Sec- 
 retary addressed the following letter to Hon. R. W. Barnwell, 
 Chairman of the Committee on Finance of the Senate : 
 
 " I have the hon(!r to report to you, that before the mint at Dah- 
 lonera was cl<»sed. ■ applied to the Suf»erintendeiit for an estimate 
 of tho expense of keeping the «ame open as an Assay office : an5 
 wfisinfoimed ihat il'.o expense would leacli tiiC sum of 
 which was oniy less than the amount es imated for the 
 
 mint Ut/on the n?.ion of North Carolina wich our Confederacy, I 
 made the smne enciuiry as lo the mint at Chartotte, with similar 
 results. The^e enrpiiries exhibit ray opinion th;it I considered it 
 desirable to use the mints as As3-«y offices; but the expcn;e proved 
 so cor side^able. that ii did not appear to me that it could be defray- 
 ed upon the principle adopted by otir government, raniely, from 
 the industiy l)enelir,tcd by the exoenditure. 
 
 The proposal made in the documents submitted to Congress, 
 overcomes that difficulty; and I see no objection to the proposal, 
 if ];roper measuies are taken to prevent the pu])lic treasury from 
 being made chargeable for any failure in the plan. 
 
 There is a material diiTcronce between nn Assay olliceand a mint 
 for coinatie. The latter is one of the most important functions of 
 government, the former is widiin the scope of private enterprise. 
 
 I have given some coneideration to the sul'ject of coin; ge. I 
 think it can be shown that, as heretofore carried on by the old go- 
 vernment, it is a waste of means and money. Of all the coinage 
 issued, a mere fraction remains The pieces are mostly exported, 
 and reeoined ; and the same process is annually rep afccd. with no 
 benelit to the country. At the proper time, it, is my intention to 
 advise that, instead of coins, the gold shall be capt in bars, and 
 marked, as they are in the Bank of England ; and that only that 
 portion be coined which the wants of the country will call for. 
 
 I also think that in fixing a coin for our country, we should start 
 
with a new mint, which would assimilate our coins to those of France , 
 and relieve some of the confusion which prevails on this subject. 
 It can be shown that 'with such arrangements, it will be best to con- 
 centrate all coinages at our mint. 
 
 These considerations show that the question of coinage had bet- 
 ber be postponed for the present. The additional expense of coin- 
 age it is true, is proposed to be defrayed bj the petitioners from 
 Charlotte; bit the reason which induces them to make the offer, is 
 the present difference between gold and bank notes— nearly ten 
 per cent. That difference is temporary, and in the ordinary course 
 of things, the seignorage required for a mint at Charlotte, would 
 certainly drive away the gold, and break up the mint. 
 
 But for au Assay Office, the outfit and arrangements are less ex- 
 pensive, and an experiment niitrht very well be made. The public 
 may assist tiie enterprise by allowing to tlie As^ayer, the use of the 
 mint establishment and tools, ard this is as much as the petitioners 
 ask. But to prevent any recourse back upon tlie Treasury, it 
 would be proper to provide that the compensation of the As-^ayer 
 should arise entirely from his charges, and that the whole expense 
 of the establirfhmont is at tiis risk 
 
 It is but fair to add. that ihe most urgent representations are 
 made from the War Department, of the necessity of retaining all 
 the Nitre acid at each establishment, there being no mode of pro- 
 curing another supply. All other materials could be allowed to 
 the establishment at a valuation. 
 
 Desiring to save the Committee all po.s3'ble labor, 1 have taken 
 the liberty of submitting the draft of a Bill, which will aid their 
 action, in case they think it expedient to establish Assay offices.'" 
 
 No action appears to have been taken by Congress, at that time 
 or subsetiuently, indicating a oliange of palicy, or the belief that 
 the expenses of a mint, u.-zder the existing circumstances of the 
 country, could be defrayed from the compensation to be received 
 from tlie public for coining and a^'saying. 
 
 I have no reasons for doubting the correctness of the opinions 
 hitherto entertained, or for supposing that such an establishment 
 could be made to pay its own expenses. Besides, even if the ope- 
 rations were confined to assaying only, a certain capital would be 
 necessary to carry on the business. Persons l)ringing the precious 
 metals to tho mint, would expect to be paid the value thereof, as 
 soon as the fineness and weight were determined : and as at present 
 advised, I do not perceive any public l)enefit to arise from coin- 
 ing a^d assaying, of sufficient iapoitancc to outweigh the consid- 
 erations that have hitherto determinf^d the policy of the govern- 
 naent, in favor of the inactivitv of these establishments. 
 
 Verv respectfully, 
 
 G. A. TRENHOLM, 
 Secretary of Treasury. 
 

 
 
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