e
view of retaining both gold and silver in circulation. The 2nd
Congress undertook to establish the ratio of fifteen of silver to
one of gold, with free coinage of both metals. By this ratio gold
was under-valued, as one ounce of gold was worth more in the markets
of the world than fifteen ounces of silver, and gold, therefore,
was exported. To correct this, in 1837, the ratio was fixed at
sixteen to one, but sixteen ounces of silver were worth, in the
market, more than one ounce of gold, so that silver was demonetized.

These difficulties in the adjustment of gold and silver coinage
had been fully considered by Congress, prior to the passage of the
act approved February 21, 1853. By that act a new, and it was
believed a permanent, policy was adopted to secure the simultaneous
circulation of both silver and gold coins in the United States.
Silver fractional coins were provided for at a ratio of 14.88 in
silver to one in gold, and were only issued in exchange for gold
coin. The right of private parties to deposit silver bullion for
such coinage was repealed, and these coins were issued from bullion
purchased by the Treasurer of the Mint, and only upon the account,
and for the profit, of the United States. The coin was a legal
tender only in payment of debts for all sums not exceeding five
dollars. Though the silver in this coin was then worth in the
market 3.13 cents on the dollar less than gold coin, yet its
convenience for use in change, its issue by the government only in
exchange for, and its practical convertibility into, gold coin,
maintained it in circulation at par with gold coin. If the slight
error in the ratio of 1792 prevented gold from entering into
circulation for forty-five years, and the slight error in 1837
brought gold into circulation and banished silver until 1853, how
much more certainly would an error then of nine per cent. cause
gold to be exported and silver to become the sole standard of value?
Was it worth while to travel again the round of errors, when
experience had demonstrated that both metals could only be maintained
in circulation together by adhering to the policy of 1853?

The silver dollar was not mentioned in the act of 1853, but from
1792 until 1874 it was worth more in the market than the gold dollar
provided for in the act of 1837. It was not a current coin
contemplated as being in circulation at the passage of the act of
February 12, 1873. The whole amount of such dol