UMMARY

_Financial History, 1868-1880_

1. When the war ended, the national debt consisted of two parts: the
bonded, and the unbonded or floating.

2. As public sentiment demanded the reduction of the debt, it was
decided to pay the bonds as fast as possible, and contract the currency
by canceling the greenbacks.

3. Contraction went on till 1868, when Congress ordered it stopped.

4. The payment of the bonds brought up the question, Shall the 5-20's be
paid in coin or greenbacks?

5. The Democrats in 1868 insisted that the bonds should be redeemed in
greenbacks; the Republicans that they should be paid in coin,--and when
they won, they passed the "Credit Strengthening Act" of 1869, and in
1870 refunded the bonds at lower rates.

6. In the process of refunding, the 5-20's, whose principal was payable
in greenbacks, were replaced by others payable "in coin." In 1873, the
coinage of the silver dollar was stopped, and the legal-tender quality
of silver was taken away. The words "in coin" therefore meant "in gold."

7. In 1875 it was ordered that all greenbacks should be redeemed in
specie after January 1, 1879 (resumption of specie payment).

8. In 1878 silver was made legal tender, and given limited coinage.

_The South and the Negro_

9. In 1869, three states still refused to comply with the Reconstruction
Act of 1867 and had no representatives in Congress.

10. Such states as had complied and given the negro the right to vote
were under "carpetbag" rule.

11. This rule became so unbearable that the Ku Klux Klan was organized
to terrify the negroes and keep them from the polls.

12. Congress in consequence sent out the Fifteenth Amendment to the
Constitution, and in 1871 enacted the Force Act.

13. These and other issues, as that of amnesty, split the Republican
party and led to the appearance of the Liberal Republicans in 1872.

14. In general, however, party differences turned almost entirely on
financial and industrial issues.

[Illustration: INDUSTRIAL AND RAILROAD MAP OF THE UNITED STATES]

CHAPTER XXXIII

GROWTH OF THE NORTHWEST

%520. Results of the War.%--The Civil War was fought by the North for
the preservation of the Union and by the South for the destruction of
the Union. But we who, after more than thirty years, look back on the
results of that struggle, can see that they did not stop with the
preservation of the Union. Both in the North and in the South the war
produced