Hold one of the balusters on the middle of a stair tread. Mark where the bottom edge of the handrail touches the side of the baluster, using a pencil. Remove the baluster. Cut along the line with a handsaw.
Lay the first baluster against the other balusters, using it as a template to draw a cut line on the other balusters. Cut all of the balusters along the line you trace, using the handsaw.
Insert the balusters between the middle of the stair treads and the handrail. Drive finishing nails at an angle, attaching the balusters to the underside of the handrail.
Drill guide holes from the underside of the staircase through the stair treads and into the bottoms of the balusters. Drive 3-inch wood screws through the stair treads and into the balusters.