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 the ratio was 17.87 to 1, and in 1880 it was 18.04 to 1.

When President Grant wisely checked greenback inflation with a veto in 1874, the inflationists began to consider increased silver circulation as a means to their end. New mines in Colorado and elsewhere had enormously increased the output of that metal and the mine owners were eager to realize for it the old coinage value. The Democrats took the lead, followed by some Republicans, in seeking demonetization of the silver dollar and in 1877 Congress passed a bill introduced by Senator Bland, a Democrat, providing for the free coinage of $4,000,000 in silver every month. President Hayes vetoed it but the bill was repassed over his veto. Thus the government, under that Democratic policy, every month bought silver at more than its commercial value and coined it into dollars which nobody wanted to handle and which remained stored in the treasury vaults while paper certificates representing them were put into circulation.

This unsound system continued, with the commercial value of silver steadily falling, until 1890 when the Sherman bill was enacted providing for the continued purchase of a limited amount of silver bullion against which there should be issued treasury notes payable “in coin,” which might be either gold or silver. Following this an attempt was made to pass a bill providing for the free and unlimited coinage of silver which passed the Senate but was rejected by the House. Now although the treasury notes might be paid in silver, the President rightly held that good faith required their payment in gold if that metal was demanded. In consequence the gold reserve in the treasury became nearly exhausted, a financial panic occurred, and in