The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-27
THE CRIME" OF 1873.
WHY THE sILVEH DOLLAR WAS
OMITTED IN the Law OF 1873.
Bullion Dealers RcsponsibIc-The Reason
for the Omission OF the Silver
Dollar in the Law of 1873.

mitted by Mr.. f.. q. VIM, of Claremont.
n. IL. II conciusively shows the reason
for the omission of the silver dollar in the
law of 1873:
In the establishment of our monetary
system in 1922, the coinage ratio Of Is to
/, wnicn was adopted. underyalued gold
and overvalued silver. AS consequence
the substance in the gold dollar was
worth more than the substance in the
silver dollar, and our gold money was
Withdrawn from circulation. Not only
was our gold money Withdrawn, but u
portion of our new silver money as well.
Its place being supplied by the worn and
abraded silver coins OF England, Spain
and other countries, which had been
made legal tender for the purpose OF
taking the place of the then almost
worthless paper money on which the
Revolutionary War had been prosecuted
In 1906. finding that our new silver
coins were being exported, President
Jefferson discontinued the coinage OF the
silver dollar, and for thirty years not y
silver dollar was coined at our mints. In
1891 for the purpose OF restoring our
gold currency. an act was passed chang
ing the coinage ratio from 10 10 10 10 10 /.
Andrew Jackson was President. Thos-
II. Benton. Daniel Webster and John c.
Calhoun were leaders in Congress. AL
insisted on the restoration Of gold
currency, only to be accomplished. as
they all knew. by making the substance
I'm the gold dollar equal or less than
equal 10 the commercial value Of tbs
substance in the silver dollar Mr.. Ben
ton, Mr.. Calhoun and other American
statesmen contended that gold was tho
preferable money metal and the act was
passed giving the preference to gold by
fixing the ratio at 10 10 |. when the real
commercial ratio was 1858 TO !. The
avowcd purpose OF this act was 10 make
gold the sole standard. This is plainly
shown by the report Of the Committee Of
the House OF Representatives having
charge of the bill. who said: THE con,
mittee think that the desideratum in the
monetary system is a standard of uniform
value: they cannot ascertain that both
metals have ever circulated simultane-
ously. concurrontly and unfortunately
I'm any country where there are banks
and money dealers. and they entertain
the conviction that the nearest approach
TO an invarable standard is It's establish
ment in one metal. which metal shall
compose exclusively the currency for
large payments"
The coinage act of 1884, heartily APP
proved, as IT was. by Andrew Jackson
purposely and intentionally placed this
country on gold basis and in less than
ten years after its passage our silver
money. including our minor coins. was
entirely withdrawn from circulation. So
completely was it withdrawn that the
people were compelled 10 use what were
commonly denominated "shinplasters. ."
little slips OF paper representing the D
TO- 25 and 30 cent coins.
In 1853 an act was passed reducing the
amount Of silver I'm the minor coins and
declaring that the half dollar. the quar-
ter dollar. the dime and the half dime
should be coined at the rate OF 3Si grains
OF silver bullion to a dollar This act
abolished their free coinage. directed the
purchase Of silver for their coinage on
government account. and made them a
legal tender for sums not exceeding
$500. By this act of 1853 all OF our sill
yer money was demonetized with the ex-
ception Of the silver dollar. only two and
one-half millions 80 526.39ooO Of which
had been coined up to this time, and
every dollar of which had disappeared
from circulation. This measure was In
troduced for the purpose OF furnishing
us with minor silver coins which would
remain i'm circulation from the fact that
their bullion value was less than their
coinage value. and they were calculated
10 superscde the paper scrip then in use
The chairman Of the committee having
this bill I'm charge I'm the House Of Rep
resontatives said: THY (the commit
tee) desire to have the standard currency
TO consist OF gold only. and that these
silver coins shall be entirely subservient
10 IT,. and that they shall be used rather
as tokens than as standard currency. and
they propose TO maintain their credit and
circulation not only by limiting their
supply to the wants of the country. but
by making them receivable for all pub
lie dues TO the United States
Such is the history of our coinage laws
up to 1870. when the bill for the revision
and amendment of the laws relative 10
assay Offices and the coinage-the Crime
Of lsl3-was introduced by Mr.. Hooper,
of Massachusetts. There was, however.
one notable exception 10 the operation Of
the law OF 1853, and I'm this exception we
find the reason why the silver dollar was
dropped from our coinage in the law o.
1873.
The law Of 1853 had abolished the
coinage OF our minor silver coins FOR
private account. but by a ruling Of Mr.
Guthrie. Secretary of the Treasury under
President Pierce. the mint was ordered
TO receive silver from private individuals
and coin 1T.
This ruling furnished the opportunity
for an immense profit TO the coin and
bullion broker. and he did not fail 10 take
advantage of II. our silver dollars. hay
Of hundred
cents we're collected by him. taken to
the mlnts and coined into minor coin:
every two dollars yielding four half dol
lars. a dime and almost half dime.
Here was profit Of seven per cent. Sill
yer bullion coined into our minor coin
yielded a profit Of four per cent. From
a quarter TO a half million dollars were
made in this way yearly with prospect
Of many millions profit when we should
resume specie payments.
Let US note the effect OF this immerse
profit by the coin and bullion broker in
shaping the Mint and Coinage bill OF
1870. when finally became a law In 1873.
On the 9Th OF April. 1872. this bill was
brought before the House upon the ques-
ton OF ordering II 10 be engrossed and
read for third time. Il had been pre-
pared two years before and had been
submitted 10 careful and deliberate eA-
animation. IL had the approval or near
~ all the mint experts OF the country
and the sanction OF the Secretary OF the
Treasury. The Committee of the House
who had II In charge unanimously recon-
mended its passage as necessary and ex-
pedient.
Mr.. Hooper. on pre- senting the bill TO
the House. on this occasion. carefully ex-
nlainnd each of its slXty-nlne SECTIONS.