Specie Resumption

In 1861, after the breaking out of the Civil War, the banks of New York suspended coin payments, and their example was followed by most of the banks through the country. Congre authorized the i ue of large quantities of United States notes, to be a legal-tender. January 14, 1875, an act was pa ed by Congre , ordering the resumption of specie payments of Government contracts to begin January 1, 1879. To this end the purchase of bullion and the manufacture of subsidiary coin was at once begun for the redemption of fractional notes. These notes were rapidly presented for redemption, compelling the Government to run its mints over busine hours.