U.S. Mint History: The “Crime of 1873”

Discussion in 'Financial Cents' started by DKR, Jan 11, 2020.


  1. DKR

    DKR Raconteur of the first stripe

    The “Crime of 1873” | U.S. Mint

    A short piece on the demonetization of silver, movement tot he gold standard and gives a clue on why returning to the gold standard is just not possible today owing to the current (non) value of FRN.

    Non-political history worth the few minutes to read. This happen more than a couple of lifetimes ago, but we (US) is still living with the fallout.

    see also
    Sherman Silver Purchase Act
    Bland-Allison Act of 1878
    and
    Specie Payment Resumption Act of 1875:
    After the War of Northern Aggression (CWI) , the debtor elements, desiring inflation, wanted the greenbacks to remain in circulation and for new notes to be issued. Conservative forces, abhorring inflation, opposed these schemes and wanted all paper currency to be backed by gold.

    Under the Funding Act of 1866, greenbacks in circulation were gradually reduced to $356 million on February 4, 1868, when further retirement was ended. The amount was temporarily raised to $382 million by 1872, but Grant vetoed the Inflation Bill, intended to increase the circulation of greenbacks permanently to $400 million.

    On January 14, 1875, a Republican lame-duck Congress passed Senator George Edmunds' Specie Resumption Act, which provided:
    1. That the U.S. Treasury be prepared to resume the redemption of legal tender notes in specie (gold) as of January 1, 1879
    2. That gradual steps be taken to reduce the number of greenbacks in circulation
    3. That all "paper coins" (notes with denominations less than one dollar) be removed from circulation and be replaced with silver coins.
    Despite opposition from the Greenback Party, specie payments were resumed on the appointed date. The dire predictions of citizens storming the banks to demand gold for the greenbacks never occurred. As 1879 approached, the government prudently increased its specie reserves and the public became convinced that their paper notes were "as good as gold."

    So-called "Bank runs" would become common later in time.....
     
  2. Dunerunner

    Dunerunner Brewery Monkey Moderator

    Still have some Silver Certificates... somewhere... Interesting read.
     
    Gator 45/70 and Ura-Ki like this.
  3. Ura-Ki

    Ura-Ki Grampa Monkey

    Yup, I have several thousand in "Silver notes" passed down to me! Also have several books of stamps left over fr WW-2!
     
    Dunerunner and Gator 45/70 like this.
  4. tacmotusn

    tacmotusn RIP 1/13/21

    If memory serves me correctly it was around 1964 when silver certificate dollar bills were being redeemed for $1.29 each, and after that no more silver coins or silver certificates in paper notes of any value. My grandparents had a large stash of silver certificate paper notes and there was a deadline when if you had not cashed them in at $1.29 you would only get a new paper non silver certificate to replace them. They should have immediately gleaned all the pre 1965 silver (90%) dimes, quarters, and half dollars and silver dollars they could lay hands on.
     
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