%508.  The Inflation Bill.%—­In hope of relieving this distress by making money easier to get, a demand was now made that Congress should issue more greenbacks.  To this Congress, in 1874, responded by passing the “Inflation Bill,” declaring that there should be $400,000,000 in greenbacks, no more, no less.  As the limit fixed in 1868 was $356,000,000, the bill tended to “inflate” or add to the paper currency $44,000,000.  Grant vetoed the bill.

%509.  Resumption of Specie Payments.%—­What shall be done with the currency? now became the question of the hour, and at the next session of Congress (1874-75) another effort was made to answer it, and “an act to provide for the resumption of specie payments” was passed.

1.  Under this law, silver 10, 25, and 50 cent pieces were to be exchanged through the post offices and subtreasuries for fractional currency till it was all redeemed.

2.  Surplus revenue might be used and bonds issued for the purchase of coin.

3.  That part of an act of 1870 which limited the amount of national bank notes to $354,000,000 was repealed.

4.  The banks could now put out more bills; but for each $100 they put out the Secretary of the Treasury must call in $80 of greenbacks, till but $300,000,000 of them remained.

5.  After January 1,1879, he must redeem them all on demand.

%510.  The Political Issues of 1876.%—­The currency question, the hard times which had continued since 1873, the rise of the Labor and Prohibition parties, the reports of shameful corruption and dishonesty in every branch of the public service, the dissatisfaction of a large part of the Republican party with the way affairs were managed by the administration, combined to make the election of 1876 very doubtful.  The general displeasure was so great that the Democratic party not only carried state elections in the North in 1874 and 1875, but secured a majority of the House of Representatives.

%511.  Nomination of Presidential Candidates.%—­When the time came to make nominations for the presidency, the Prohibition party was first to act.  It selected Green Clay Smith of Kentucky and G.T.  Stewart of Ohio as its candidates, and demanded that in all the territories and the District of Columbia, the importation, exportation, manufacture, and sale of alcoholic beverages should be stopped.  Two other demands—­the abolition of polygamy (which was practiced by the Mormons in Utah), and the closing of the mails to the advertisements of gambling and lottery schemes—­have since been secured.

Next came the Greenback or Independent National party, which nominated Peter Cooper of New York and Samuel F. Cary of Ohio, and called for the repeal of the Resumption of Specie Payment Act, and the issue of paper notes bearing a low rate of interest.

In June, the Republicans met in Cincinnati, and nominated Rutherford B. Hayes of Ohio, and William A. Wheeler of New York.  They endorsed the financial policy of the party, demanded civil service reform, protection to American industries, no more land grants to corporations, an investigation of the effect of Chinese immigration, and “respectful consideration” of the woman’s rights question.