Randy,
That's a good question! I do not have the depth of historical knowledge and background it would take to provide an accurate answer...but I will offer the following speculation;
It's my understanding that in those days a person could bring silver or gold bullion to the mint for processing into coins for their own use, for a fee paid to the mint. It was not required, at least initially, that all bullion deposited was to be automatically purchased by the government.
Accordingly, I would think that much of the gold and silver that was deposited into the mint by mine owners was converted to gold bars for two reasons;
1. To correctly assay the raw bullion.
2. To convert the raw bullion into high value bars, each measured
and stamped with their weight and the owner's name. As such, high value amounts could be more easily transported, accounted for and, or traded for goods and services than if shipping hundreds or thousands of gold coins.
Perhaps Rusty will opine on the percentages of gold deposits that were purchased by the government versus gold deposits retained by the bullion's owners in either coin format or bars once processed at the CC mint?
Belay Off
C4OA Lifer!
