TeachMeFinance.com - explain Resumption act of 1875
Resumption act of 1875 -- A bill enacted into law January
7, 1875, which provided for the resumption of specie payments
by the government on January 1, 1879.
When the day appointed for resumption arrived the Treasury
Jield more than $114,000,000 in gold in excess of outstanding
gold certificates and the premium on gold in the market
had disappeared. In fact greenbacks (paper money) were at
par on December 17, 1878. The Gold Room in New York,
where speculative operations in gold had been carried on,
closed the following day and never reopened. No gold was
withdrawn from the Treasury on resumption and only $11,000,000 was withdrawn during the year.
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