. Financial history of the United States . to the banks; that the government could withdraw allof its own deposits in banks, and present all bank-notes held,or received, for instant redemption. The banks, in his opinion,would find no profit in presenting treasury notes for coin inorder to embarrass the government; legal-tender notes wereused by the banks for reserve; and these, being interested inkeeping a strong reserve for which greenbacks were available,would find it more to their advantage to aid the governmentby making employment for the treasury notes. To this day there is uncertainty an
. Financial history of the United States . to the banks; that the government could withdraw allof its own deposits in banks, and present all bank-notes held,or received, for instant redemption. The banks, in his opinion,would find no profit in presenting treasury notes for coin inorder to embarrass the government; legal-tender notes wereused by the banks for reserve; and these, being interested inkeeping a strong reserve for which greenbacks were available,would find it more to their advantage to aid the governmentby making employment for the treasury notes. To this day there is uncertainty and division of opinion asto what were the real forces that accomplished resumption,and the means by which it was afterwards maintained. Manyhave attributed the achievement solely to Secretary Shermansfinancial wisdom and skill, and to the fact that as soon as itwas seen that he was in earnest, public confidence co-operatedto a successful issue. Without in any way questioning Sher-mans administrative ability, we must recognize as a powerful. >-i S P. B s W £« S o § i6o] Resumption Accomplished. 377 factor in eifecting resumption, and in maintaining it duringthe early years of trial, the favorable commercial position of theUnited States. The tide of trade turned about 1878, and theUnited States at last was selhng to foreign countries more thanit was buying. Commerce came to the rescue of to the fall in prices following the depression of 1873,and the increasing demand of Europe for our cotton andfood, intensified in 1879 and 1880 by the shortage in Eu-ropean crops, our exports more than doubled between 1872and 1881, the increase from 1877 to 1881 being over 50 percent. Such conditions were evidently favorable to the impor-tation and retention of gold; and coupled with this happyturn in market conditions, was the fall of prices occasioned byresumption itself, which in turn was a powerful magnet forattracting gold back to this country. In the actual carrying o
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