78 THE AGRARIAN CRUSADE 



periods of depression and in the less prosperous 

 sections of the ever advancing frontier. During 

 the Civil War, inflation was actually accomplished 

 through the issue of over $400,000,000 in legal-ten- 

 der notes known as "greenbacks." No definite 

 time for the redemption of these notes was speci- 

 fied, and they quickly declined in value as com- 

 pared with gold. At the close of the war a paper 

 dollar was worth only about half its face value in 

 gold. An attempt was made to raise the relative 

 value of the greenbacks and to prepare for the re- 

 sumption of specie payments by retiring the paper 

 money from circulation as rapidly as possible. 

 This policy meant, of course, a contraction of the 

 volume of currency and consequently met with 

 immediate opposition. In February, 1868, Con- 

 gress prohibited the further retirement of green- 

 backs and left to the discretion of the Secretary of 

 the Treasury the reissue of the $44,000,000 which 

 had been retired. Only small amounts were reis- 

 sued, however, until after the panic of 1873; and 

 when Congress attempted, in April, 1874, to force a 

 permanent increase of the currency to $400,000,000, 

 President Grant vetoed the bill. 



Closely related to the currency problem was that 

 of the medium to be used in the payment of the 



