<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-06 -->

# Annual Coinage Expense Justification

## Definition

The economic rationale for government expenditure on coinage, which Smith argues is often unjustified and represents an unnecessary public subsidy to private individuals who bring bullion to the mint. Proper seignorage could eliminate this expense while generating revenue.

## Source Chapter

Book IV, Chapter 6

## Context

Smith provides a detailed analysis of the costs and benefits of government coinage operations. He concludes that the current system of gratuitous coinage provides no public benefit while incurring unnecessary expenses that could be eliminated through appropriate seignorage.

## Economic Domain

Regulation

---
