Alteration of the Coinage

In the meantime the surplus revenue had been applied to the reduction of the public debt, which, in 1853, was 67,000,000, and in 1857 (July 1st), 29,000,000. In March, 1857, the tariff was reduced to an average of 20 per cent, on dutiable imports. ALTERATION OF THE COINAGE. The law of 1834, having underrated silver in the coinage, had the effects described above (page no). In March, 1853, a law was passed,* similar to the English law of 1816, to obviate the difficulty of throwing either one or the other metal out of circulation. On this plan, silver is purposely overrated in the coinage so that it is worth more as coin than as metal. There is, therefore, a loss in exporting or melting it. The silver dollar was not altered, but it had disappeared and ceased to be a coin of the country. The fractional coins were made to weigh : 50 cts., * See p. 292.

188 HISTORY OF AMERICAN CURRENCY. 192 grains standard (nine-tenths fine) ; 25 cts., 96 grains. At the rate of 15.625 to 1 for silver to gold, two half dollars are worth .9533 of a gold dollar. This fractional silver was coined by the government out of purchased metal, and not upon demand of holders of bullion. These coins were therefore made legal tender only for sums less than five dollars. It is evident that this was no depreciation of the coinage. The reaction from the crisis of 1857 was so rapid and complete that its lesson was only partially learned. Things went on until the war very much in the old way. The state of the currency is sufficiently shown by the following table : Jan. i, 1857 214,700,000 230,309,000 684,400,000 58,300,000 1858 .... 155,200,000 185,900,000 583,100,000 74,400,000 1859 .... 193,300,000 259,500,000 657,100,000 104,500,000 1860 .... 207,100,000 253,800,000 691,900,000 83,500,000 1861 .... 202,000,000 257,200,000 696,700,000 87,600,000 1S62 .... 183,700,000 296,300,000 646,300,000 102,100,000 1863 .... 238,600,000 393,600,000 648,600,000 101,200,000 In March, 1858, Mr. Balfour, of Boston, classified the note issues of the country as follows : HISTORY OF AMERICAN CURRENCY. 189 Notes for a ti a a ti a n a it a Total $1 2 3 5 10 20 50 100 500 1,000 5,000 to the a a tt a a it a n it ti amount of tt a a a tt a a it tt 7,000,000 4,000,000 3,000,000 15,000,000 5,000,000 13,000,000 12,000,000 8,000,000 35,000,000 30,000,000 2,000,000 1^4,000,000 THE CURRENCY AT THE OUTBREAK OF THE WAR.