Bland-Allison Act

Bland-Allison Act

The Bland-Allison Act was a 1878 law passed over the veto of President Rutherford B. Hayes requiring the U.S. treasury to buy a certain amount of silver and put it into circulation as silver dollars. The goal was to subsidize the silver industry in the Mountain states and inflate prices. The law was replaced in 1890 by the similar Sherman Silver Purchase Act, which in turn was repealed by Congress in 1893.


U.S. Treasury would purchase quantities of bullion valued between $2 million and $4 million per month.
#The silver would be purchased at market prices, not at a predetermined ratio tied to the value of gold.
#The silver would be used to make coins at ratio of 16:1 to gold. In other words, 16 ounces of silver would be equivalent to one ounce of gold, regardless of the metals' respective market values.


This was part of something of the silver, bimetal- groups, and the forces who tried to bet it altogether. Rutherford B. Hayes, who was shown by banking and banking interests, opposed this act because he did not agree with the deflation that it would cause. Fact|date=February 2007 Congress went against the veto.

However, the Hayes administration blunted the impact of the law. The Treasury Department never actually bought more than the $2 million minimum amountFact|date=February 2007 and never circulated the silver dollars. The Bland-Allison Act was replaced in 1890 by the Sherman Silver Purchase Act.

Gold remained the larger feature between both legislations. The term "limping bimetallism" has been used to describe this program.

The five-year depression following the panic of 1873 caused cheap-money advocates (led by Representative R. P. Bland of Missouri) to join with silver-producing interests in urging a return to Bimetallism, the use of both silver and gold as a monetary standard. The controversial mint reform act of 1873 eliminated the coinage of silver at a time when increased supplies from newly discovered Western mines were lowering prices. Silver advocates, decrying the so-called Crime of '73, demanded restoration of free coinage of silver at a ratio to gold of 16 to 1, approximately $1.29 an ounce.

Free coinage, as the symbol of justice for the poor, was seized upon by others determined to prevent resumption of specie payments (the redemption, in metallic coin, of U.S. paper money by banks or the Treasury) and desirous of plentiful inflationary currency. Bland's bill for free coinage, passed by the House on 5 November 1877, jeopardized Secretary of the Treasury John Sherman's plans for resuming specie payments. Sherman, through a Senate amendment sponsored by Senator W. B. Allison of Iowa, was able to substitute less inflationary limited purchases for free coinage. Silver producers accepted the arrangement as likely to restore silver to $1.29.

The law, passed 28 February 1878 over President Rutherford B. Hayes's veto, required government purchases, at market prices, of $2 million to $4 million worth of silver bullion monthly, and coinage into legal tender 16-to-1 dollars, exchangeable for $10 silver certificates. The president was directed to arrange an international bimetallic conference to meet within six months. These provisions signified victory for producers over inflationists.

See also

* Resumption Act
* Fourth Coinage Act
* Crime of 1873

External links

* []

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Bland-Allison Act — Le Bland Allison Act est une loi fédérale votée par le congrès des États Unis en 1878, à l initiative du président Rutherford Birchard Hayes, pour tenter de relancer l économie américaine, déprimée par cinq années de récession qui avaient suivi… …   Wikipédia en Français

  • Bland-Allison Act — /bland al euh seuhn/, U.S. Hist. an act of Congress (1878) requiring the federal government to purchase at the market price from two to four million dollars worth of silver monthly for conversion into silver dollars containing 16 times more… …   Universalium

  • Bland-Allison Act — /bland al euh seuhn/, U.S. Hist. an act of Congress (1878) requiring the federal government to purchase at the market price from two to four million dollars worth of silver monthly for conversion into silver dollars containing 16 times more… …   Useful english dictionary

  • bland dollar — ˈbland , aa(ə)nd noun Usage: usually capitalized B Etymology: after Richard P. Bland died 1899 United States congressman : the United States silver dollar of 412 1/2 grains troy coined under the Bland Allison Act of 1878 that provided for the… …   Useful english dictionary

  • Allison, William B. — ▪ American politician in full  William Boyd Allison   born March 2, 1829, Ashland, Ohio, U.S. died Aug. 4, 1908, Dubuque, Iowa  U.S. representative (1863–71) and senator (1873–1908) from Iowa, cosponsor of the Bland Allison Act of 1878, which… …   Universalium

  • Coinage Act of 1873 — Caricature from Puck magazine, 1900. The Fourth Coinage Act was enacted by the United States Congress in 1873 and embraced the gold standard and demonetized silver. Western mining interests and others who wanted silver in circulation years later… …   Wikipedia

  • Richard P. Bland — Richard Parks Bland (* 19. August 1835 bei Hartford, Ohio County, Kentucky; † 15. Juni 1899 in Lebanon, Missouri) war ein US amerikanischer Politiker. Zwischen 1873 und 1895 sowie nochmals v …   Deutsch Wikipedia

  • Richard P. Bland — Richard Parks Bland (August 19 1835 ndash; June 15 1899), American school teacher, lawyer, and Democratic Congressman from 1873 until 1899.Born near Hartford, Ohio, he graduated with a teacher’s certificate from the Hartford Academy, and taught… …   Wikipedia

  • William B. Allison — Infobox Senator name=William Boyd Allison jr/sr=United States Senator state=Iowa party=Republican term=March 4, 1873 ndash; August 4, 1908 preceded=James Harlan succeeded=Albert B. Cummins date of birth=March 2, 1829 place of birth=Perry, Ohio,… …   Wikipedia

  • Coinage Act — is a stock short title used for legislation in the United Kingdom and the United States which relates to coinage. Contents 1 List 1.1 United Kingdom 1.2 United States …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.