Part 2

On April 14, 1790, Thomas Jefferson reported to the House of Representatives, advising the declination of the proposition of John H. Mitchell regarding his offer to furnish coins from Europe at a fixed price per pound for copper coins. His objections were that the opportunity of recoinage of coins would be lost, and that in transportation across the ocean it would be subject to the dangers of the sea, acts of piracy, and, in times of war, would offer the sinews of war to the enterprise of the enemy, and further, that the resource of coining household plate would be lost. The risk of counterfeiting was also noted.

Alexander Hamilton, Secretary of the Treasury, on January 28, 1791, as a result of instructions on the part of the House of Representatives on April 15, 1790, sent a lengthy communication to it on “The Establishment of a Mint.” This communication was evidently the basis for the act of Congress, dated April 2, 1792, establishing the mint and regulating the coins of the United States.

The mint was to be situated at the seat of government, then Philadelphia, and the President, in addition to the authority given him under the Act of March 3, 1791, was authorized to cause to be provided and put in proper condition such buildings as appeared to him to be necessary for carrying on the business of the mint.

The Act of March 3, 1791, approved by President Washington, authorized the establishment of a mint under such regulations as should be directed by law. This Act authorized him to cause to be engaged artists and the procurement of the necessary apparatus.

On December 30, 1793, Jefferson wrote the President regarding artists. He mentioned that a certain Drotz had been hired, but, after considerable delay, refused to come to America, and that our minister at London had succeeded in getting Mr. Albion Coxe, who was probably the person of that name who had the right to make copper coins for the State of New Jersey in 1786, to accept the position as assayer. Inasmuch as it was impossible to secure abroad a chief coiner of greater ability than at home, Mr. Henry Voight, who was temporarily in the position, was favorably mentioned.

These two men were required to furnish security in the sum of ten thousand dollars each, which neither was able to do, and Jefferson stated that the coinage of precious metals was prevented for some time past, but that in order that the mint might not be entirely idle the coinage of copper had been going on. Jefferson recommended that their securities be lessened by reducing their responsibilities.

October 28, 1794, David Rittenhouse, director of the mint, reported that it had been necessary to purchase an additional lot of ground, that nearly one million of cents had been coined and a beginning made in the coinage of precious metals, that nearly 120,000 ounces of bullion had been deposited for coinage and that a large parcel of blank dollars was ready for coining as soon as a more powerful press could be finished.

February 9, 1795, Mr. Boudinot, one of the Congressional Committee appointed to examine and report on the state of the mint, made a long report on the duties and work of the various employees.

At that time besides the buildings at 37 and 39 North Seventh Street, now belonging to the Frank H. Stewart Electric Company, a lease was held on one in the “Northern Liberties” for five years at the rent of five shillings per annum, a very trifling sum indeed.

There was more or less criticism about the conduct of the mint which Mr. Boudinot explained was due to trouble in getting competent workmen, proper materials and strong apparatus. He reported the lots for the buildings were too small and that this hindered the operations; and, further, that the frequent breaking of dies, which were all made in the mint, caused numerous delays. Up to September, 1794, the lands purchased had cost $4,266.66; buildings, apparatus, machines, etc., $22,720.45; copper, $15,815.51; salaries, $15,591.99, a grand total of $58,394.61, which he considered a very great amount. He remarked that a great saving could be made if the machinery could be operated by water or steam instead of manual labor or that of horses. He noted that in case the projected canal between the Schuylkill and Delaware should be accomplished the heavy expense of the mint would be greatly reduced.

His report, among other things, showed that when the bullion was not in use it was kept under two locks, the keys of which were kept by the assayer and chief coiner. This was for the time it was in the custody of the chief coiner. That part not in his custody was in the vaults of the mint, also secured under two locks, keys of which were kept by the treasurer and assayer. Mention is made elsewhere regarding these vaults. He recommended a reduction in the size of the copper cent and a change in the standard for silver coins to ten parts silver and one part copper.

Henry William DeSaussure in a letter, dated the mint office, October 27, 1795, to the President of the United States, George Washington, apologized for the length of his communication and said he was prepared to deliver the direction of the mint to his successor.

He stated the coinage of gold had begun under his administration. He deemed it proper to state there was no copper in the mint fit for coining, and that the price of copper had advanced, and suggested the desirability of reducing the weight of the cent and thereby help in preventing its use by coppersmiths.

He mentioned the important fact that the standard of the silver coin in use at the mint differed from the standard fixed by law. He thought that either the law should be changed or the standard used according to law.

He suggested the desirability of having laws made to close up certain establishments making debased foreign coins and thereby curtailing the supply of gold bullion and degrading our national character.

He referred to an attempt on the mint dies and implements with nefarious views.

Elias Boudinot, in a letter dated at the mint, December 3, 1795, referred to the sudden death of Assayer Mr. Albion Coxe on the preceding Friday, and said “until this officer is replaced the business of the mint would be confined to striking cents only.” In the same letter he recommended, among other things, “that some proper person be authorized to purchase on public account all small quantities of silver and gold brought to the mint, at the best market price, to be coined for the public treasury.”

Elias Boudinot, in a very able letter to the President, dated at the mint, November 29, 1796, told how impossible it was to run the mint with business-like dispatch, hampered as it was by unreasonable restrictions. He pointed out how in one case a depositor of bullion below standard got 500 pounds sterling more than he should and still was within his legal rights. In other words, it cost the mint that much to refine the bullion for which it received no compensation. He also pointed out how expensive it was to coin bullion in rotation so that each depositor got his money in turn. In this way it was just as expensive to melt and refine 20 ounces as 1,000 ounces and he recommended a fund for the mint to be used in paying off small depositors of bullion and thus be able to melt and refine in larger quantities.

February 13, 1797, Mr. Havens, of the committee to examine and report on Mr. Boudinot’s letter, made his report to Congress and recommended the sum of $2,820.71 be appropriated to make good the deficiency caused by wastage in coining gold and silver since the commencement of the coinage of these metals. The report was substantially a confirmation of the statements made by Mr. Boudinot.

May 19, 1798, recommendation of allowance to John Vaughan was made because silver bullion, to the extent of 230,888 ounces, deposited by him was of greater fineness than that regularly used in coinage.

During the latter part of 1797 it became very apparent that the out-put of the mint was not sufficient for the needs of the country, and foreign coins were necessarily continued as legal tender despite legislation to the contrary.

Elias Boudinot, in a letter from the mint to the President, dated January 3, 1799, mentioned that during the previous summer a scheme for robbing the mint was discovered. One of the persons in the mint was in collusion with outside parties. The offenders were detected, prosecuted and punished.

January 8, 1800, Boudinot reported to President Adams and called his attention to the fact that fifty thousand one hundred and eleven dollars and forty-two cents ($50,111.42) of cents, had been coined and that it was necessary for the Secretary of the Treasury of the United States to comply with provisions of law of May 8, 1792, by giving the public notice therein mentioned.

Also brought up the point that the mint was not at the seat of government, which had been moved to Washington, and if mint was to be removed steps should be taken immediately regarding it.

Also called attention to workmen in gold and silver melting down coins for commercial purposes to the loss of the United States.

Mr. Hillhouse, of the committee to whom was referred the report of the director of the mint to the President of the United States, on January 8, 1800, recommended, on March 18, 1800, that a committee be appointed to bring in a bill for repealing the first section of the Act entitled, “An Act establishing a mint and regulating the coins of the United States....” dated April 21, 1792, and such other sections and parts of sections of said Act as relate to the establishment of the mint, and to provide for taking care of the materials and property appertaining to the mint and which belong to the United States; and, further, that the Secretary of the Treasury be directed to report a plan for furnishing the United States with cents and half-cents as shall be deemed necessary or expedient.

February 13, 1801, Elias Boudinot advised the President that the Secretary of State, Secretary of Treasury, Comptroller of the Treasury, the Chief Justice and Attorney-General were not present on the day specified by law to assay reserved pieces of coins, and that the depositors complained of their being deprived of their reserved money, and that the check on coinage contemplated by law was frustrated. Also mentioned that the act of July 16, 1790, provided for removal of all offices attached to the seat of government to the District of Columbia on the first Monday in December, 1800. Called attention to Act of last session of Congress locating mint in Philadelphia until March 4th next.

He, on February 27, 1802, in a communication to the Secretary of the Treasury, calls attention to outstanding contracts for copper abroad which were obligatory, and the difficulty attending the securing of copper in the past. Questioned the scheme of importing coined copper cents because of a chance of a flood of lightweight cents contrary to law, and suggested that the government would have greater security by placing contract in United States.

On March 4, 1802, Robert Scott, engraver at the mint, wrote the Secretary of Treasury, Albert Gallatin, calling attention to the probability of abolishment of the mint, explained the sacrifices he had made and desired to be invested with the exclusive privilege, according to law, of furnishing cents of the regular weight and quality free of all expense to the government at the face value.

In a letter dated March 22, 1802, Mint of the United States, Philadelphia, Elias Boudinot wrote the Secretary of Treasury, giving an inventory of the real and personal property of the mint, as follows:

“Two lots on Seventh Street between Market and Arch, 20 feet each on Seventh Street and extending back 100 feet, with a dwelling house on the north lot and a shell of a house on the south lot, which last lot widens on the rear to about 60 feet on which the stable stands. These lots pay a ground rent of $27.50 per annum.

“A lot on Sugar Alley at the rear of the above, 20-feet front on the alley and about 100-feet deep.

“A frame building improved for a large furnace in the commons at the north end of Sixth Street, of little value, the ground being merely loaned to us.

“Personal estate—copper planchets on hand, 22 tons.

“Three horses, good for little but for use of mint.

“Machinery of mint no value except for mint.

“Five striking presses.

“Three cutting presses.

“One milling machine.

“Five pairs rollers, great and small.

“One drawing machine.

“Three pairs smith’s bellows.

“Set blacksmith’s tools.

“Large number of hubs and dies.

“Carpenter’s tools.

“Seven stoves.

“One turning lathe.

“Six scale beams, scales and weights.

“Two sets assay scales and sundry adjusting scales.

“Furniture in clerks’ rooms.

“Various implements used in the several departments.

“About 2,000 bushels charcoal.

“Engravers’ tools, pots, bottles, etc.

“An old horse cart and gears.

“About 2,000 fire brick.

“Considerable quantity of old iron.”

Stated machinery was in poor repair and should be moved by steam instead of horses. Said lots were too small and was greatly cramped for room.

Said lots were then very valuable, being in the heart of the city. In his opinion the necessary coins of the government could not be protected at much less expense than the mint cost.

In this inventory no mention was made of the building used by the coinage department, and which, no doubt, was the best and most important building then on the lots. The sizes of the lots given are inaccurate, and the idea evidently intended to be conveyed was that there was very little of value in buildings or equipment.

In 1793 salaries of the mint employees were as follows:

David Rittenhouse, director, $2,000 per annum Tristram Dalton, treasurer, 1,200 ” ” Henry Voight, coiner, 1,500 ” ” Isaac Hugh, clerk, 312 ” ”

The regular coinage of copper began in 1793; silver in 1794, and gold in 1795.

The following curious extracts are taken from the mint rules and regulations, dated January 1, 1825:

“The allowance under the name of drink money is hereafter to be discontinued.”

“The operations of the mint throughout the year are to commence at 5 o’clock in the morning.”

“Christmas Day and the Fourth of July—and no other days—are established holidays at the mint.”

“He (watchman) will keep in a proper arm chest, securely locked, a musket and bayonet, two pistols and a sword. The arms are to be kept in perfect order and to be inspected by an officer once a month, when the arms are to be discharged and charged anew.

“The watchman of the mint must attend from 6 o’clock in the evening to 5 o’clock in the morning—and until relieved by the permission of an officer, or until the arrival of the doorkeeper. He will ring the yard bell precisely every hour by the mint clock from 10 o’clock until relieved by the doorkeeper, or an officer, or the workmen on working days, and will send the watch-dog through the yard immediately after ringing the bell.”

The operations at the mint were suspended at different times because of yellow fever epidemics, and this, in connection with the scarcity of metal, and a fire at the mint and the use of coins for purely commercial purposes by coppersmiths, silversmiths and other tradesmen, accounts for the scarcity of certain coins made at “Ye Olde Mint,” under great disadvantages, when men and horses did the work now done by electricity.

Copy of Letter Regarding Purchase of First U. S. Mint Lots.

June 9, 1792.

DEAR SIR:

I am in sentiment with you and the Director of the Mint, respecting the purchase of the lots and houses which are offered for sale, in preference to renting—as the latter will certainly exceed the interest of the former.

That all the applications may be brought to view, and considered for coining, &c., Mr. Lear will lay the letters and engravings before you, to be shewn to the Director of the Mint. I have no other object or wish in doing it, than to obtain the best.

Yours, &c.,

Go. WASHINGTON.

MR. JEFFERSON.