4. (1875) All greenbacks were to become redeemable in specie on January 1, 1879.
5. To get specie, bonds might be issued.
%515. Bland Silver Bill; Silver remonetized.%—Against the continuance of this policy the majority of the House stood pledged. Before the session closed, therefore, two bills passed the House. One repealed so much of the act of 1875 as provided for the retirement of greenbacks and the issue of bonds. The second was brought in by Mr. Bland of Missouri, and is still known by his name. It provided
1. That the silver dollar should again be coined, and at the ratio of 16 to 1; that is, that the same number of dollars should be made out of sixteen pounds of silver as out of one pound of gold.
2. That silver should be a legal tender, at face value, for all debts, public and private.
3. That all silver bullion brought to the mints should be coined into dollars without cost to the bringer. This was "free coinage of silver."
The House passed the bill, but the Senate rejected the "free coinage" provision and substituted the "Allison" amendment. Under this, the Secretary of the Treasury was to buy not less than $2,000,000, nor more than $4,000,000, worth of silver bullion each month, and coin it into dollars.
The House accepted the Senate amendment, and when Hayes vetoed the bill Congress passed it over his veto and the "Bland-Allison Bill" became a law in 1878.
%516. Silver Certificates.%—Now this return to the coinage of the silver dollar was open to the objection that large sums in silver would be troublesome because of the weight. It was therefore provided that the coins might be deposited in the Treasury, and paper "silver certificates" issued against them.
A few months later, January 1, 1879, the government returned to specie payment, and ever since has redeemed greenbacks in gold, on demand.