Sherman Silver Purchase Act- 1878
An act directing the purchase of silver bullion and the issue of Treasury notes
thereon, and for other purposes.
Be it enacted . . ., That the Secretary of the Treasury is hereby directed to
purchase, from time to time, silver bullion to the aggregate amount of four
million five hundred thousand ounces, or so much thereof as may be offered in
each month, at the market price thereof, not exceeding one dollar for three
hundred and seventy-one and twenty-five hundredths grains of pure silver, and to
issue in payment for such purchases of silver bullion Treasury notes of the
United States to be prepared by the Secretary of the Treasury, in such form and
of such denominations, not less than one dollar nor more than one thousand
dollars, as he may prescribe.
SEC. 2. That the Treasury notes issued in accordance with the provisions of this
act shall be redeemable on demand, in coin, at the Treasury of the United
States, or at the office of any assistant treasurer of the United States, and
when so redeemed may be reissued; but no greater or less amount of such notes
shall 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; and such Treasury notes shall be a legal tender in payment of all
debts, public and private, except where otherwise expressly stipulated in the
contract, and shall be receivable for customs, taxes, and all public dues, and
when so received may be reissued; and such notes, when held by any national
banking association, may be counted as a part of its lawful reserve. That upon
demand of the holder of any of the Treasury notes herein provided for the
Secretary of the Treasury shall, under such regulations as he may prescribe,
redeem such notes in gold or silver coin, at his discretion, it being the
established policy of the United States to maintain th two metals on a parity
with each other upon the present legal ratio, or such ratio as may be provided
by law.
SEC. 3. That the Secretary of the Treasury shall each month coin two million
ounces of the silver bullion purchased under the provisions of this act into
standard silver dollars until . . . [July I, 189I] . . ., and after that time he
shall coin of the silver bullion purchased under the provisions of this act as
much as may be necessary to provide for the redemption of the Treasury notes
herein provided for, and any gain or seigniorage arising from such coinage shall
be accounted for and paid into the Treasury.
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SEC. 5. That so much of the act of . . . [February 28, I878] . . ., entitled "An
act to authorize the coinage of the standard silver dollar and to restore its
legal tender character," as requires the monthly purchase and coinage of the
same into silver dollars of not less than two million dollars, nor more than
four million dollars' worth of silver bullion, is hereby repealed.