ction of the bill, under date of April 25, 1870,
Comptroller Knox gives the history of the silver dollar and the
reasons for its discontinuance as follows:

"The dollar unit, as money of account, was established by the act
of Congress April 2, 1792, and the same act provides for the coinage
of a silver dollar, 'of the value of a Spanish milled or pillar
dollar, as the same is now current.' The silver dollar was first
coined in 1794, weighing 416 grains, of which 3711/4 grains were pure
silver, the fineness being 892.4. The act of January 18, 1837,
reduces the standard weight to 4121/2 grains, but increases the
fineness to 900, the quantity of pure silver remaining 3711/4 grains
as before, and at these rates it is still coined in limited
amounts."

He then says:

"The coinage of the silver dollar piece, the history of which is
here given, is discontinued in the proposed bill. It is, by existing
law, the dollar unit, and assuming the value of gold to be fifteen
and one-half times that of silver, being about the mean ratio for
the past six years, is worth in gold a premium of about three per
cent. (its value being 103.12) and intrinsically more than seven
per cent. premium in our other silver coin, its value thus being
107.42. The present laws consequently authorize both a gold dollar
unit and a silver dollar unit, differing from each other in intrinsic
value. The present gold dollar piece is made the dollar unit in
the proposed bill, and the silver dollar piece is discontinued.
If, however, such a coin is authorized, it should be issued only
as a commercial dollar, not as a standard unit of account, and of
the exact value of the Mexican dollar, which is the favorite for
circulation in China and Japan and other oriental countries.

"Note.--Assuming the value of gold to be fifteen and one-half times
that of silver, the French 5-franc piece is worth about 961/2 cents
(96.4784); the standard Mexican dollar 104.90, our silver dollar
piece 103.12, and two of our half-dollar pieces 96 cents."

The finance committee carefully examined the bill. We were not in
any hurry about it. It was sent to us in April, 1870, and was
printed and sent, by order of the Senate, to everyone who desired
to read it or look over it.

That committee was composed of Messrs. Sherman, Williams, Cattell,
Morrill, Warner, Fenton and Bayard.

The bill was reported unanimously to the Senate December 19, 1870,
after lying in the committee roo