Show i Coin Of The Realm I By GEORGE HAGEDORN The com coin shortage continues with us and in view of its basic causes is likely to get worse rather than better It will surely surely surely sure sure- ly call for some radical revision of our system of subsidiary coinage there is no easy way out BUT THE public psychology psychology psychology produced by the mere contemplation of such meas measures measures measures ures is likely to make the shortage shortage short short- age even more severe The underlying problem is that silver production is insufficient insufficient to meet the growing demand demand demand de de- mand for silver in industry The difference is made up from the US U.S. Treasury hoard accumulated accumulated accumulated ac ac- ac- ac cumulated during the years I when the Treasury was buying silver and issuing silver certificates certificates certificates I against it BUT THIS same hoard is isnow isnow isnow now the source which the Treasury uses to make its dimes quarters and half half-dol half I lars They are working day and night to relieve the coin shortage shortage shortage short short- age and the hoard cant can't last Jast forever Estimates vary but it seems more and more likely that it will be all gone in two or three years I When that happens the market market market mar mar- ket price of silver will rise It wouldn't have to rise much before before be be- fore it became worthwhile to melt silver coins coms down Thus the more coins we make the closer we get to exhaustion of government silver sil stocks and the more incentive people have to keep silver coins in the bureau bureau bureau bur bur- eau drawer rather than in cir cir- cir cir- THIS IS a vicious circle in in in- deed If the conduct of business business business busi busi- ness is not to be impeded by a alack alack alack lack of coins some solution has hasto hasto hasto to be found Most suggestions cen t e r around the idea of using some material other than silver in our coins other metals or perhaps even plastics An alternative alternative alternative al al- would be to issue paper paper paper pa pa- per money for fractions of a dollar EITHER OF these measures would in themselves make problems The public wouldn't easily adjust to accepting as money something radically different different different dif dif- dif dif- ferent from what they had been used to The vending machine industry would have to change its equipment drastically But the worst aspect of the problem is that even the proposal proposal proposal pro pro- of such steps is likely to toI tomake tomake I mal make e the public cling that much closer to its silver slIver coins WE IIA HAVE VE seen only one suggestion suggestion sug sug- t which seems designed to get around this difficulty Itis It Itis Itis is advanced by Dr Elgin Groseclose of the Institute for Monetary Research His proposal proposal proposal pro pro- is simply to double the value of existing silver coins A HALF dollar would count as a dollar a quarter as 50 I cents and a dime as 20 cents I People would have every in in- in t to take their coins out of hoards since they would buy twice as muc i as before The Treasury be able to manufacture twice as much money noney out of a given amount of f silver THIS TIllS IS pr pretty tty hard to low ow People wouldn't easily get used to receiving only two wh they broke a dolar dollar dollar dol- dol lar ar bill But the idea is logical and nd in any case there is no easy solution of oC our coinage problem |