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Coinage Act of 1857
The Coinage Act of 1857 (Act of Feb. 21, 1857, Chap. 56, 34th Cong., Sess. III, 11 Stat. 163) was an act of the United States Congress which forbade the use of foreign coins as legal tender, repealing all acts "authorizing the currency of foreign gold or silver coins". Specific coins would be exchanged at the Treasury and re-coined. The act is divided into seven sections.
==Background==
Before the Act, foreign coins, such as the Spanish dollar, were widely used〔Murray N. Rothbard. ("The Mystery of Banking" ) (pdf), p.10, referenced 2009-08-24.〕 and allowed as legal tender by the Act of April 10, 1806.〔Library of Congress. ("An Act regulating the currency of foreign coins in the United States" ), passed on April 10, 1806, referenced 2009-08-24.〕
In addition to banning foreign coins, the Coinage Act of 1857 also discontinued the half cent. Furthermore, the penny was reduced in size. The large cent was discontinued and regular coinage of the Flying Eagle cent began.
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