Alteration of the Coinage.

The law of 1834, having underrated silver in the coinage, had the effects described above (page 110). 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., 192 grains standard (nine-tenths fine); 25 cts., 96 grains. At the rate of 15.625 to I 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:

In March, 1858, Mr. Balfour, of Boston, classified the note issues of the country as follows;