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History of the Currency, 1848 - 1873 by Walter G. Watt, 1898

History of the Currency, 1848 - 1873 by Walter G. Watt, 1898, Page 4

2.
anized by Congress in enacting a law providing for the coinage of gold dollars and double eagles; but its most important influence was one which was not immediately apparent, and which to be properly understood requires at lest a momentary glance at a law passed by Congress fourteen years prior to the beginning of the period we are considering. By this law, which was passed June 28, 1834, Congress changed the Mint ratio of gold and silver coin from 15 to 1 to 16 to 1. Neither of these ratios corrosponded with the market ratio existing between the two metals. The ratio of 15 to 1 had rated silver too high, and so in accordance with the workings of Gresham's Law gold had had been almost completely driven out of circulation. After the changing of the ratio silver was rated too low, and the opposite effect to that formerly experienced was the result. Silver began to disappear. The lowering of the price of gold by its largely

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2. anized by Congress in enacting a law providing for the coinage of gold dollars and double eagles; but its most important influence was one which was not immediately apparent, and which to be properly understood requires at lest a momentary glance at a law passed by Congress fourteen years prior to the beginning of the period we are considering. By this law, which was passed June 28, 1834, Congress changed the Mint ratio of gold and silver coin from 15 to 1 to 16 to 1. Neither of these ratios corrosponded with the market ratio existing between the two metals. The ratio of 15 to 1 had rated silver too high, and so in accordance with the workings of Gresham's Law gold had had been almost completely driven out of circulation. After the changing of the ratio silver was rated too low, and the opposite effect to that formerly experienced was the result. Silver began to disappear. The lowering of the price of gold by its largely