TeachMeFinance.com - explain Inflation bill
Inflation bill -- The name given to a bill passed by Congress
in 1874 which provided for an increase of $44,000,000 in the
issue of legal tender notes (United States notes, commonly
called greenbacks). The bill also provided for the redemption
of legal tender notes in gold coin or in government 5 per cent bonds and further provided that the notes when so redeemed
might be reissued. Objecttion was raised that the constant
reissue of legal tender notes and their conversion into bonds
would increase the funded debt (bond issue) without retiring
the notes. President Grant vetoed the bill.
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