Q. David Bowers
"After the issuance of this order no silver dollar pieces were stamped for thirty years. But notwithstanding the discontinuance of the coinage of silver dollars, half dollars, two of which contained as much fine metal as a dollar piece, continued to be coined and exported. Spanish dollars were imported, being exchanged against American half dollars, which went out. Up to 1830 $34 million of silver coins of all denominations had been coined by the United States Mint, only $14 million of which, it was estimated, remained in the country. The Spanish pieces which had been substituted for United States pieces suffered greatly from abrasion. They had lost much in weight, and this, too, contributed to the expulsion from circulation of American coins. The evil had grown to such dimensions that a memorial of the New York bankers, led by Mr. Gallatin, in 1834, represented:
" 'That the dollar of Spain and the gold and silver coins of the United States constitute at present the only legal currency of the country; and that, from the commercial value of the "GOLD PERIOD, 1873-1878-DEMONETIZATION OF SILVER IN 1873.
"On the 25th of April 1870, the secretary of the Treasury transmitted a bill to Congress providing for the revision of the coinage laws of the United States. It was considered for five sessions of Congress and was finally passed and became a law February 12, 1873.
Spanish dollar and the intrinsic value of the gold coins of the United States, they have become mere articles of merchandise and are no longer to be considered as forming any portion of the metallic currency.'
"It provided that the gold coins of the United States should be a I-dollar piece, which at the standard weight of 25.8 grains should be a unit of value; a 3-dollar piece, a 5-dollar piece, a 10-dollar piece, and a 20-dollar piece of a standard weight, proportional to the I-dollar piece, and that such coins should be legal tender in all payments at their nominal value when not below the standard weight and limit of tolerance. It also provided that the silver coins of the United States should be a trade dollar, a half dollar, a quarter dollar, and a dime; that the weight of the half dollar should be 12-1/2 grams, and that of the quarter dollar and dime proportional thereto. The weight of the trade dollar was fixed at 420 grains Troy. All these coins were made legal tender to the amount of $5.
"Section 21 of the act provided that any owner of silver bullion might deposit the same at any mint, to be formed into bars, or into dollars of the weight of 420 grains Troy, designated in the act as trade dollars, and that no deposit of silver for other coinage should be received. The bill met with little opposition either in the Senate or in the House of Representatives. The silver dollars previously coined, of which there were but few in existence, maintained their quality as legal tender, but the coinage of new full legal tender dollars, whether on government or private account, was discontinued. This act was the logical complement of the legislation of 1853.
"There was at first complete acquiescence in the result of the legislation of 1873, as therehad been in that of 1853, and not until the decline of silver in 1875 and 1876 were any suggestions made for the coinage anew of silver dollars, although in both those years the currency of the country was inconvertible paper, and no gold or silver coins were in circulation. A large number of silver bills were introduced in the House of Representatives in the summer of 1876. The agitation in and out of Congress in favor of the coinage of silver dollars continued through 1877. Hon.John Sherman, then secretary of the Treasury, refers to it in his report for 1877 ....
"In Honorable John Sherman's words, here is a partial quotation:
" 'By the coinage act approved February 12, 1873, fractional silver coins were authorized, similar in general character to the coins of 1853, but with a slight increase of silver in them to make them conform exactly to the French coinage, and the old dollar was replaced by the trade dollar of 420 grains of standard silver.
" 'Much complaint has been made that this was done with the design of depriving the people of the privilege of paying their debts in a cheaper money than gold, but it is manifest our coinage, arrest the refunding of the public debt, and impair the public credit, with no apparent advantage to the people at large.
" 'The secretary believes that all the beneficial results hoped for from a liberal issue of silver coin can be secured by issuing this coin, in pursuance of the general policy of the Act of 1853, in exchange for United States notes, coined from bullion purchased in the open market by the United States, and maintaining it by redemption, or otherwise, at par with gold coin. It could be made a legal tender Jar such sums and on such contracts as would secure to it the most general circulation. It could be easily redeemed in the United States notes and gold coin, and only reissued when demanded for public convenience. If the essential quality of redeemability given to United States notes, bank bills, tokens, fractional coins, and currency maintains them at par, how much easier it would be to maintain the silver dollar of intrinsic market value, nearly equal to gold, at par with gold coin by giving to it the like quality of redeemability. To still further secure a fixed relative value of silver and gold, the United States might invite an international convention of commercial nations. Even such a convention, while it might check the fall of silver, could not prevent the operation of that higher law which places the market value of silver above human control. Issued upon the conditions here stated, the secretary is of opinion that the silver dollar will be a great public advantage, but that if issued without limit, upon the demand of the owners of silver bullion, it will be a great public injury.' " (Annual Report of the Secretary of the Treasury on the State of Finances, 1877.)
"THE PERIOD OF THE LIMPING STANDARD, 1878 TO THE PRESENT TIME. ACTS OF 1878 AND 1890.
"Notwithstanding the recommendations of the secretary and the veto of the president, an act for the coinage of silver dollars to a limited amount was passed by Congress February 28, 1878. The material provisions of that act are as follows: