Has the Treasury buy back of foreign silver (Act of 1857) ever been revoked?

Prethen

The Treasury encouraged everyone to either trade in their foreign silver for the new flying eagle cents or cash payment. Obviously, the cent exchange was for a limited time, however is the buy back policy still on the books? I scanned the massive 1965 Coinage Act (I did a search of a text version) and I'm unable to find anywhere in there where it might have been revoked. I don't think Nixon's gold standard executive orders had anything alluding to that either.

According to the authors of "America's Foreign Coins", as of 1964, the policy was still on the books. I'm writing a small article about this topic and would like to see if this has ever been closed off.

commoncents05

It is my understanding that the Coinage Act of 1857 disallowed foreign coins to be accepted as legal tender. The treasury may have done a "last call" for exchanging foreign coins for US coins, but (the way I understand it) this ceased after this law was passed.

-Paul

Prethen

The policy of exchange may have ceased, but as of 1964 the policy of buy back was still available.

DaveG

Prethen,

In reviewing the Act of 1857, I don't see the "buy back" language to which you refer. I do see the language authorizing the exchange of new cents for foreign silver, but other than that, all I see is language authorizing the fractions of the "Spanish pillar dollar" to be received at the Treasury, post offices and land offices at defined valued.

Can you point out the language?

Thanks.

RWB

Congressional debate in 1857 refers to acceptance by the Treasury of foreign silver as legal tender as a temporary measure. Thereafter, foreign silver was accepted as bullion only.

Prethen

<< <i>Congressional debate in 1857 refers to acceptance by the Treasury of foreign silver as legal tender as a temporary measure. Thereafter, foreign silver was accepted as bullion only. >>


That's basically correct. However, it's still on the books...right?

DaveG

From what I can tell, no subsequent Act superseded the Act of 1857 and the only subsequent Act that amended the Act of 1857 was the Act in 1859 that extended (for an additional two years) the two year period during which the Mint could exchange the new cents for fractions of the Spanish pillar dollar.

Prethen

<< <i>From what I can tell, no subsequent Act superseded the Act of 1857 and the only subsequent Act that amended the Act of 1857 was the Act in 1859 that extended (for an additional two years) the two year period during which the Mint could exchange the new cents for fractions of the Spanish pillar dollar. >>


Hmmm....I can't find any data on the Act of 1859.

DaveG

I gave Prethen the details via PM, but for those of you in our home audience who are following along, please refer to Neil Carothers' Fractional Money (a definite MUST for the numismatic historian) and/or the Statutes at Large on the Library of Congress' website for details.

ProofArtworkonCircs

Until comparitively recently (1980's?), the United States code stated that Spanish 1 real and 2 real pieces would be accepted at United Staes Post Offices at 80% of face. Profits from this went to a certain fund. When the laws were recodified, this just disappeared. Some other interesting laws disappeared at the same time such as the minimum dollar amount of United States Notes to be maintained.


Edited to add: I would say this was never officially revovoked, but omitted and ignored. If the old law was not officially revoked, I don't think ignoring it would really change anything. Anyhow, good luck on buying stamps with your Spanish silver.

Prethen

<< <i>Until comparitively recently (1980's?), the United States code stated that Spanish 1 real and 2 real pieces would be accepted at United Staes Post Offices at 80% of face. Profits from this went to a certain fund. When the laws were recodified, this just disappeared. Some other interesting laws disappeared at the same time such as the minimum dollar amount of United States Notes to be maintained.


Edited to add: I would say this was never officially revovoked, but omitted and ignored. If the old law was not officially revoked, I don't think ignoring it would really change anything. Anyhow, good luck on buying stamps with your Spanish silver. >>


Well, that's very interesting. It would seem that the buy back might still be in effect. Although, I think it's in effect using 1857 rates, like 20 cents for 2 bits (reales), etc.

ProofArtworkonCircs

I found the exact wording.

The Coin World Almanac, First Edition, 1976 has excerpts of the then current United States Code as it relates to money.

Chapter 8 of the code is "Coins, Coinage and Currency"

Section 374 "Spanish and Mexican Coins" (on page 122 of the Amanac).
"The pieces commonly know as the quarter, eighth, and sixteenth of the Spanish pillar dollar, and of the Mexican dollar, shall be receivable at the Treasury of the United States, and its several offices, and at the several post offices and land offices, and at the rates of valuation following: The fourth of a dollar or piece of two reals, at 20 cents; the eighth of a dollar or piece of one real, at 10 cents; and the sixteenth of a dollar, or half real, at 5 cents.

Section 375 "Transmission for re-coinage" [includes re-coinage]
(this silver was to be recoined and it does allow for either profit or loss.)

So my memory in the earlier post was not complete, but, I hope, close enough for Government work.


edit to add a ")".
edit to add an "e".

LindeDad

So who is going to sell 1/4 oz. of silver for 20¢?

Prethen

<< <i>So who is going to sell 1/4 oz. of silver for 20¢? >>


It would be kind of funny to try, just to send the Mint employees scrambling to deal with it!