There was a period, from 1862 to 1876, when there was no fractional silver coin in circulation in the United States except on the Pacific coast. During this period the small change of the country consisted of fractional paper currency, which will be described in its place.

Issue of Standard Silver Dollars and Fractional Silver Coin. Standard silver dollars are issued by the Treasurer and assistant treasurers in redemption of silver certificates and Treasury notes of 1890, and are sent by express, at the expense of the Government, in sums or multiples of $500, for silver certificates or Treasury notes of 1890 deposited with the Treasurer or any assistant treasurer.

Upon the deposit of an equivalent sum in United States currency or national bank notes with the Treasurer or any assistant treasurer or national bank depositary, fractional silver coin will be paid in any amount by the Treasurer or assistant treasurers in the cities where their several offices are, or will be sent by express, in sums of $200 or more, at the expense of the Government, or by registered mail, at the risk of the consignee, in packages of $50, registration free, from the most convenient Treasury office, to the order of the depositor. For this purpose drafts may be sent to the Treasurer or the assistant treasurer in New York, payable in their respective cities to the order of the officer to whom sent.

Paper Money.

The first paper money ever issued by the Government of the United States was authorized by the acts of July 17 and August 5, 1861. The notes issued were called "demand notes," because they were payable on demand at certain designated sub-treasuries. They were receivable for all public dues, and the Secretary was authorized to reissue them when received; but the time within which such reissues might be made was limited to December 31, 1862. The amount authorized by these acts was $50,000,000. An additional issue of $10,000,000 was authorized by the act of February 12, 1862, and there were reissues amounting to $30,000. The demand notes were paid in gold when presented for redemption, and they were received for all public dues, and these two qualities prevented their depreciation. All other United States Lotes were depreciated in value from 1862 until the resumption of specie payments, as shown by the table hereinafter following. The act of February 25, 1862, provided for the substitution of United States notes in place of the demand notes, and they were, therefore, canceled when received. By July 1, 1863, all except $3,770,000 had been retired, and nearly three millions of this small remainder were canceled during the next fiscal year. These notes were not legal tender when first issued, but they were afterward made so by the act of March 17, 1862.

United States Notes.

The principal issue of United States paper money was officially called United States notes. These were the well-known "greenbacks" or "legal tenders." The act of February 25, 1862, authorized the issue of $150,000,000,

of which $50,000,000 were in lieu of an equal amount of demand notes, and could be issued only as the demand notes were canceled. A second issue of $150,000,000 was authorized by the act of July 11, 1862, of which, however, $50,000,000 was to be a temporary issue for the redemption of a debt known as the temporary loan. A third issue of $150,000,000 was authorized by the act of March 3, 1863. The total amount authorized, including the temporary issue, was $450,000,000, and the highest amount outstanding at any time was $449,338,902 on January 30, 1864. There are still outstanding $346,681,016.

The reduction from the original permanent issue of $400,000,000 to $346,681,013 was caused as follows: The act of April 12, 1866, provided that United States 'notes might be retired to the extent of $10,000,000 during the ensuing six months, and that thereafter they might be retired at the rate of not more than $4,000,000 per month. This authority remained in force until it was suspended by the act of February 4, 1868. The authorized amount of reduction during this period was about $70,000,000, but the actual reduction was only about $44,000,000. No change was made in the volume of United States notes outstanding until after the panic of 1873, when, in response to popular demand, the Government reissued $26,000,000 of the canceled notes.

This brought the amount outstanding to $382,000,000, and it so remained until the resumption act of January 14, 1875, provided for its reduction to $300,000,000. The process was, however, again stopped by the act of May 31, 1878, which required the notes to be reissued when redeemed. At that time the amount outstanding was $346,681,016, which is the present amount. The amount of United States notes redeemed from the fund raised for resumption purposes since January 1, 1879, to June 30, 1896, was $426,190,220; but the volume outstanding is undiminished because of the provisions of the act of May 31, 1878, which require the notes so redeemed to be paid out again and kept in circulation.

Gold Certificates.

The act of March 3, 1863, authorized the Secretary of the Treasury to receive deposits of gold coin and bullion in sums not less than $20, and to issue certificates therefor in denominations not less than $20, said certificates to be receivable for duties on imports. Under this act deposits of gold were received and certificates issued until January 1, 1879, when the practice was discontinued by order of the Secretary of the Treasury. The purpose of the order was to prevent the holders of United States notes from presenting them for redemption in gold and redepositing the gold in exchange for gold certificates. No certificates were issued after January 1, 1879, until the passage of the bank act of July 12, 1882, which authorized and directed the Secretary of the Treasury to receive gold coin and bullion and issue certificates.

This act, however, provided that “the Secretary of the Treasury shall suspend the issue of gold certificates whenever the amount of gold coin

and gold bullion in the Treasury, reserved for the redemption of United States notes, falls below one hundred millions of dollars." The highest amount of gold certificates outstanding at the close of any fiscal year was $157,542,979, on July 1, 1890, and the amount now outside the Treasury is $42,320,759. The act of July 12, 1882, made them receivable for customs, taxes and all public dues.

Silver Certificates.

The act of February 28, 1878, authorizing the issue of the standard silver dollar, provided that any holder of such dollars might deposit them in sums not less than $10 with the Treasurer or any assistant treasurer of the United States, and receive certificates therefor in denominations not less than $10, said certificates to be receivable for customs, taxes, and all public dues. The act of August 4, 1886, authorized the issue of the smaller denominations of $1, $2, and $5. Silver certificates have practically taken the place in circulation of the standard silver dollars which they represent. The amount outside the Treasury July 1, 1896, was $331,259,509, while the amount of standard silver dollars outside the Treasury was only $52,175,998. • Neither silver certificates nor silver dollars are redeemed in gold.

Treasury Notes, Act of July 14, 1890.

These notes were authorized by the act of July 14 1890, commonly called the "Sherman act." The Secretary of the Treasury was directed to purchase each month 4,500,000 ounces of fine silver at the market price, and to pay for the same with Treasury notes redeemable on demand in coin, and legal tender for all debts, public and private, except where otherwise expressly stipulated in the contract. It was provided in the act that when the notes should be redeemed or received for dues they might be, reissued; but that no greater nor less amount of such notes should be "outstanding at any time than the cost of the silver bullion and the standard silver dollars coined therefrom, then held in the Treasury, purchased by such notes.”

The authority for the purchase of silver bullion under this act was repealed by the act of November 1, 1893, up to which date the Government had purchased 168,674,682.53 fine ounces, at a cost of $155,931,002, for which Treasury notes were issued. The amount of silver bullion purchased under said act, and now held in the Treasury, is 131,838,199.46 fine ounces, which cost $118,903,909.23. When coined it will produce $170,457,470, of which $51,558,560.77 will be gain or seigniorage. The amount of Treasury notes redeemed in gold up to the close the fiscal year 1896 was $80,073,325, and the amount redeemed in standa silver dollars was $26,247,722. Treasury uotes redeemed in standard si dollars are canceled and retired in accordance with the requirements of the act of 1890. Those redeemed in gold are reissued as required in the course of business.

Copies of the Treasury regulations governing the issue and redemption of currency can be procured by application to the Department.

Fractional Currency.

When specie payments were suspended, about January 1, 1862, both gold and silver coins disappeared from circulation. The place of the subsidiary silver coins was for a time supplied by the use of tickets, due-bills, and other forms of private obligations, which were issued by merchants, manufacturers, and others whose business required them to "make change." Congress soon interfered and authorized, first, the use of postage stamps for change; second, a modified form of postage stamp called postal currency, and finally fractional paper currency in denominations corresponding to the subsidiary silver coins. The highest amount authorized was $50,000,000. The highest amount outstanding at any time was $49,102,660.27, and the amoun still outstanding, though not in use as money, is $15,267,122.47, of which $8,375,934 is officially estimated to have been destroyed.

Redemption.

Gold coins and standard silver dollars being standard coins of the United States are not "redeemable."

Subsidiary coins and minor coins may be presented in sums or multiples of twenty dollars to the Treasurer of the United States or to an assistant treasurer for redemption or exchange into lawful money.

United States notes are redeemable in "coin," in sums not less than $50, by the assistants treasurers in New York and San Francisco.

Treasury notes of 1890 are redeemable in "coin," in sums not less than $50, by the Treasurer and all assistant treasurers of the United States.

National-bank notes are redeemable in lawful money of the United States by the Treasurer but not by the assistant treasurers. They are also redeemable at the bank of issue. In order to provide for the redemption of its notes when presented, every national bank is required by law to keep on deposit with the Treasurer a sum equal to 5 per cent. of its circulation.

Gold certificates being receipts for gold coin are redeemable in such coin by the Treasurer and all assistant treasurers of the United States. Silver certificates are receipts for standard silver dollars deposited, and are redeemable in such dollars only.

"Coin" obligations of the Government are redeemed in gold coin when goid is demanded, and in silver when silver is demanded.

Summary of Monetary Events Since 1786.

1786.-Establishment of the double standard in the United States with a ratio of 1 to 15.25; that is, on the basis of 123.134 grains of fine gold for the half eagle, or $5 piece, and 375.64 grains of ne silver for the dollar, with out any actual coinage.

1792.-Adoption of the ratio of 1 to 15 and stablishment of a mint with free and gratuitous coinage in the United States; the silver dollar equal to 3714 grains fine, the half eagle to 123.75 grains fine.

1803.-Establishment of the double standard in France on the basis of the

ratio of 1 to 152, notwithstanding the fact that the market ratio was then about 1 to 15.

1810.-Introduction of the silver standard in Russia on the basis of the ruble of 17.99 grams of fine silver, followed in 1871 by the coinage of imperials, or gold pieces of 5 rubles, of 5.998 grams; therefore, with a ratio of 1 to 15. This ratio was changed by the increase of the imperial to 5 rubles 15 copecks, and later to 1 to 15.45.

1815.-Great depreciation of paper money in England, reaching 261⁄2 per cent in May. Course of gold, £5 6s., and of silver, 711⁄2d. per ounce standard. In December the loss was only 6 per cent; gold at this period was quoted at £4 3s., and silver at 64d.

1816.-Abolition of the double standard in England, which had had as its basis the ratio of 1 to 15.21, and adoption of the gold standard on the basis of the pound sterling at 7.322 grams fine in weight.

Coinage of divisional money at the rate of 66d. per ounce. Extreme prices, £4 2s. for gold and 64d. for silver; in January, £3 18s. 6d., and 591⁄4d. in December.

1816.-Substitution for the ratio of 1 to 15.5 in Holland, established by a rather confused coinage, of the ratio of 1 to 15%.

1819.-Abolition of forced currency in England. Price of gold, £3 17s. 10d., and of silver, 62d.* per ounce in October, against £4 1s. 6d. and 67d. in February.

1832.-Introduction of the monetary system of France in Belgium, with a decree providing for the coinage of pieces of 20 and 40 francs, which, however, were not stamped. Silver, 594d.

1834.-Substitution of the ratio of 1 to 15 for that of 1 to 16 in the United States by the creation of a gold piece-the eagle-weighing 258 grains, and of a silver dollar of 4121⁄2 grains. In 1837 the fineness of these coins was raised to 0.900. Silver, 59 15-16d.

1835.-Introduction of the company rupee, a piece of silver weighing 165 grains fine, in India in place of the sicca rupee. Creation of a trade cointhe mohur, or piece of 15 rupees-containing 165 grains of fine gold. Silver, 59 11-16d.

1844.-Introduction of the double standard in Turkey, with the ratio of 1 to 15.10. Silver, 592d.

1847.- Abolition of the double standard in Holland by the introduction of the silver standard on the basis of a 1-florin piece 0.945 grams fine, the coinage of which had already been decreed in 1839. Silver, 59 11-16d. 1847.-Discovery of the gold mines of California.

1848.-Coinage in Belgium of pieces of 10 and 25 francs in gold, a shade too light. These pieces were demonetized and withdrawn from circulation in 1884. Silver, 592d.

*The price of silver given hereafter represents the average rate per ounce standard-that is, the mean between the highest price and the lowest price quoted during the year.