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Flamingos are a familiar sight even to those who have never seen one in real life. Though the dollar came under the gold standard de jure only after 1900, the bimetallic era was ended de facto when the Coinage Act of 1873 suspended the minting of the standard silver dollar of 412.5 grains (26.73 g = 0.8595 oz t), the only fully legal tender coin that individuals could convert bullion into in unlimited (or Free silver ) quantities, a and right at the onset of the silver rush from the Comstock Lode in the 1870s.

However, silver and gold coins continued to be issued, resulting in the depreciation of the newly printed notes through Gresham's Law In 1869, Supreme Court ruled in Hepburn v. Griswold that Congress could not require creditors to accept United States Notes, but overturned that ruling the next year in the Legal Tender Cases In 1875, Congress passed the Specie Payment Resumption Act , requiring the Treasury to allow U.S. Notes to be redeemed for gold after January 1, 1879.

This money is not transferred from any existing funds—it is at this point that the Federal Reserve has created new high-powered money Commercial banks then decide how much money to keep in deposit with the Federal Reserve and how much to hold as physical currency.

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