SPEARW ORT

name of certain plants of order Ranunculacez growing in moist places. OF, RESUMPTION OF, the basic principle of the monetary systems of all countries. Specie is that medium of exchange which is recognized by governments, invariably gold and silver. The governments and the banks deposit great quantities of gold and sometimes silver in their vaults and i ue paper to represent it, as the gold certificates of the United Staies, or the banknotes of a the banks. So long as holders of this paper money realize that they may cash their paper for gold or silver, it stands at par. But in times of stre , especially during war, when governments must pay gold for great quantities of material purchased in foreign countries, it sometimes becomes nece ary to suspend payment of specie, whereupon, naturally, the paper money drops below its face value, no matter how much confidence there may be in the integrity of the government. When a country suffers severely in war, and especially if it is defeated, the suspension of payment continues and the paper money drops rapidly in value, more having to be i ued to supply the need. This is what happened in Ru ia and Germany. In the United States such suspension of specie payment occurred during the Civil War, and it was not till 1879 that payment was resumed. During the ‘World War the nece ity of suspending payment and i uing paper money was evaded by i uing Liberty bonds, redeemabla after certain set periods. The value of these have often dropped below par.