a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain Sherman act historic definition... Sherman act -- The act of July 14, 1890, which ordered the purchase each month by the Secretary of the Treasury of 4,- 500,000 ounces of silver bullion, or so much thereof as might be offered at the market price, provided the market price did not exceed the coinage value, $1.29.29 an ounce. To pay for the silver so purchased an issue of Treasury notes redeemable in coin was authorized. There was also a clause in the act repealing the purchasing clause of the Bland-Allison act of 1878 and providing for the coining of 2,000,000 ounces of silver per month until July I, 1891, when coinage should cease, except when necessary to supply silver dollars for the redemption of the Treasury notes. All the remaining bullion and that bought thereafter was to be held in the Treasury as security for the notes. Seigniorage was to accrue to the Treasury. The purchasing clause in the act was repealed November i, 1893, it having been found that the government purchases of silver not only failed to accomplish the result hoped for, viz., the maintenance of the price of silver at the coining parity $1.29.29 an ounce but that silver was declining so rapidly in value as to threaten both impairment of the security it offered as backing for the notes and an entire upsetting of the monetary stability of the country. A severe business panic had been brought about, complicated by political considerations in which the tariff also figured. Before the repeal the notes issued under authority of the act were reissued after redemption. Since 1893 they have been canceled when redeemed in silver and the bullion so released has been coined, gradually reducing the Treasury's holdings of bullion. The seigniorage also is coined as it accrues. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.