ns
made by law. No money could be received into the treasury except
gold and silver coin of the United States, and such treasury notes
as were receivable for bonds. State bank notes were not received
for government dues. This exclusion grew out of the general failure
of banks after the War of 1812 and the panic of 1837, and had caused
the outcry in 1840 of: "Gold for the office holders; rags for the
people." But this policy of the government to receive only its
own coin or notes was sustained by popular opinion.

Silver dollars were not in circulation in 1861. Their issue was
provided for at the beginning of our government, but, as they were
most of the time more valuable than gold coin of like face value,
they were hoarded or exported. Their coinage was suspended by an
order of President Jefferson in 1805, and after this order only
1,300 silver dollars were coined by the United States prior to
1836. From 1836 to 1861 silver dollars were coined in small
quantities, the aggregate being less than one and one-half million,
and they were generally exported. It is probable that when Mr.
Chase became Secretary of the Treasury, there was not in the United
States one thousand silver dollars. In 1853, and prior to that
year, fractional silver coins were worth for bullion more than
their face value, and, therefore, did not circulate. Small change
was scarce, and fractional notes, called "shinplasters," were issued
in many parts of the United States. Mexican coin, debased and
worn, was in circulation. To remedy this evil Congress, by the
act of February 21, 1853, during Pierce's administration, prescribed
the weight of the silver half dollar as 192 grains instead of 2061/4
grains, fixed by the coinage act of 1792, and the weight of the
quarter, dime and half dime of silver was reduced in the same
proportion. As these new coins were less valuable than gold at
the rate coined, they were made a legal tender in payment of debts
only for sums not exceeding five dollars. The silver bullion for
these coins was purchased at market value, and the privilege
theretofore granted to a depositor of silver bullion to have it
coined for him was repealed. This law had the beneficial effect
of driving out of circulation "shinplasters" and worn coins, and
supplied in ample quantity new full weight silver coins of handsome
device, the government receiving the profit of the difference
between the market value of the silver and its co