Resumption Act Law and Legal Definition

The Resumption Act of 1875 is an U.S. federal statute. The Act is officially known as the Specie Payment Resumption Act. This Act paved way for the use of paper currency in U.S. The Act also provides for the replacement of the civil war fraction currency by silver coins.

Important features of the Act are:

1. the Supply of tender notes by the U.S. Treasury;

2. taking steps to reduce the greenbacks in circulation; and

3. the replacement of paper coins with silver coins.