inage value.
Under this law the coinage of silver rapidly increased, so that,
within two years after the passage of the act of 1853, more silver
was converted into fractional coins and was in active use among
the people than was contained in all the silver dollars coined
under "free coinage" from the beginning of the government to 1878.

While silver was thus made useful to the fullest extent possible,
it was, from its weight and bulk, inadequate and inconvenient for
the vast demands of the government during the war. Silver and gold
together could not meet this demand. There was known to be in the
country at that time, of specie in circulation, $250,000,000, of
state bank notes, $180,000,000, in all $430,000,000. This amount,
experience had shown, was necessary to meet exchanges in ordinary
times of peace. The disturbance of a civil war would likely
stimulate production for a time and require even more circulation
for current business. This circulation, if drawn from its ordinary
channels, would bring no end of confusion and distress to the
people, and the government, to meet the demand occasioned by carrying
on a war, must look elsewhere for a circulating medium with which
to meet its enormous disbursements which must necessarily be made
almost wholly in actual cash--checks being, from the character of
payments, of little avail.

There was no escaping the issue of credit money in some form, and
of whatever form adopted we knew that gold and silver would soon
disappear under the shadow of war--that they would be hoarded or
exported.

This is the universal result of great wars long protracted. It
was our experience during our Revolution and the War of 1812, and
of Great Britain and all European nations during the Napoleonic
wars. What should take the place of gold and silver for currency?
The only answer was to substitute for the time the notes of the
United States, with all the sanction and credit which the republic
could confer, in the place of coin. We could not, with safety,
accept bank notes issued by state corporations, varying in terms
and credit according to the laws of twenty-three separate states.

To establish a credit of our bonds and notes these measures at
least were necessary: First, to increase largely the revenues from
customs duties to be paid in coin; second, impose all forms of
internal taxes authorized by the constitution; third, create a
national currency redeemable in coin, with no f