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<p>[QUOTE="Conder101, post: 4707938, member: 66"]And it was a good thing they had to. When Assayer Albion Cox died in office in 1795 they had to close up his accounts and they discovered a significant shortage which the bond then covered. So the person who put up the bond for him lost the money.</p><p><br /></p><p><br /></p><p>Not really. The only real sources of "Float" they had were from the large deposits by the Bank of the United States and smaller ones from Director Rittenhouse. The mint had no funds with which to buy bullion and make coins to have on hand for immediate payment until the Act of 1837. Before that they kind of had an agreement with the Bank Of the United States to be able to use coins made from their deposits that had not been paid over to them yet, and then the depositors silver would be made into coin to replace the Bank's coins.</p><p><br /></p><p><br /></p><p>The charge for immediate payment was one half of one percent of the value of the deposit.</p><p><br /></p><p><br /></p><p>Yes originally the plan was for the seigniorage on the copper coins to pay the entire expenses of the mint.</p><p><br /></p><p><br /></p><p>The Hunts lost because the commodities exchange changed the margin requirements. The Hunts were buying most of the silver on margin, control say 100 million dollars worth of silver by putting down 10 million dollars. Well they controlled billions of dollars worth or more. then the exchange change the margin requirement for 10% to 15%. "Dear Mr. Hunt please deposit another $250 million dollars by the close of business today or we will have to liquidate your positions." Well they may have been billionaires, but it wasn't laying around in cash. They couldn't come up with the money on that short notice so their silver positions got dumped and that caused the price to come crashing back down.[/QUOTE]</p><p><br /></p>
[QUOTE="Conder101, post: 4707938, member: 66"]And it was a good thing they had to. When Assayer Albion Cox died in office in 1795 they had to close up his accounts and they discovered a significant shortage which the bond then covered. So the person who put up the bond for him lost the money. Not really. The only real sources of "Float" they had were from the large deposits by the Bank of the United States and smaller ones from Director Rittenhouse. The mint had no funds with which to buy bullion and make coins to have on hand for immediate payment until the Act of 1837. Before that they kind of had an agreement with the Bank Of the United States to be able to use coins made from their deposits that had not been paid over to them yet, and then the depositors silver would be made into coin to replace the Bank's coins. The charge for immediate payment was one half of one percent of the value of the deposit. Yes originally the plan was for the seigniorage on the copper coins to pay the entire expenses of the mint. The Hunts lost because the commodities exchange changed the margin requirements. The Hunts were buying most of the silver on margin, control say 100 million dollars worth of silver by putting down 10 million dollars. Well they controlled billions of dollars worth or more. then the exchange change the margin requirement for 10% to 15%. "Dear Mr. Hunt please deposit another $250 million dollars by the close of business today or we will have to liquidate your positions." Well they may have been billionaires, but it wasn't laying around in cash. They couldn't come up with the money on that short notice so their silver positions got dumped and that caused the price to come crashing back down.[/QUOTE]
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