ation into the silver
question. This Commission made an exhaustive report to Congress on March
2, 1877, the majority of the Commission recommending the resumption of
silver coinage. Also, previous to the discussion of the Bland-Allison
Act in the Senate, the celebrated Matthews Resolution was passed by that
body. This asserted that "all bonds of the United States are payable in
silver dollars of 412 and 1/2 grains, and that to restore such dollars
as a full legal tender for that purpose, is not in violation of public
faith or the rights of the creditors." The de-bate on this resolution
was a notable one. It was chiefly under these aspects that the financial
question was discussed in the years 1877-1878.

The Bland-Allison Act was in operation from 1878 to 1890, during which
time $2,000,000 in silver were coined per month, the minimum amount
authorized by law. On July 14, 1890, the so-called Sherman Act stopped
the coinage of silver dollars and provided for the purchase of silver
bullion to the amount of 4,500,000 ounces per month. Against this
bullion Treasury notes were to be issued, redeemable in gold or silver
coin at the option of the Secretary of the Treasury. These notes were
made a legal tender in payment of all debts, public and private, and
receivable for all customs, taxes, and all public dues. It was also
declared in this Act to be the established policy of the United States
to maintain the two metals on a parity with each other upon the present
legal ratio, or such ratio as may be provided by law. On account of this
language in the law the Secretary of the Treasury under Mr. Cleveland
has not deemed it advisable to exercise the discretion which the law
gives him to redeem these notes in silver, and these new Treasury notes
have been treated as gold obligations. By November 1, 1893, when the
silver purchase clause of the Act of July 14, 1890, was repealed,
Treasury notes to the amount of $155,000,000 had been issued, though
some of these have since been exchanged for silver dollars at the option
of the holders. It has been by these Treasury notes and the outstanding
greenbacks that gold has been withdrawn from the Treasury, thus
depleting the gold reserve and making bond issues necessary. It has
been deemed advisable by successive administrations of the Treasury
Department to maintain a gold reserve of $100,000,000 against the
$346,681,000 outstanding greenbacks, though no law requires that such
a reserve sho