In the Coinage Act of 1834, President Andrew Jackson devalued the US dollar by 6.6 percent to $20.67 per troy ounce in terms of gold, but not in terms of silver, thus increasing the gold-to-silver mint price ratio from 15:1 to 16:1, which by slightly overvaluing gold and undervaluing silver relative to prevailing market prices caused an inflow of gold, leading to a 42 percent increase in bank deposits and a 36 percent increase in prices from 1834 to 1836.
Glossary Term