UNITED STATES NOTES A HISTORY OF THE VARIOUS ISSUES OF PAPER MONEY BY THE GOVERNMENT OF THE UNITED STATES JOHN JAY KNOX WITH AN APPENDIX CONTAINING THE RECENT DECISION OF THE SUPREME COURT OF THE UNITED STATES AND THE DISSENTING OPINION UPON THE LEGAL TENDER QUESTION SECOND EDITION REVISED T. FISHER UNWIN 26 PATERNOSTER SQUARE 1885 PREFACE. Ix the course of his official career the author lias had occasion to deal with subjects kindred to those presented in this volume. From time to time, he has collected material with the hope of publishing at some future day a volume worthy of the title of " History of Bank- ing in the United States." The results of these investi- gations have appeared from time to time, in official re- ports, occasional addresses, and in articles contributed to various encyclopaedias. The present volume is pub- lished in accordance with the request of many friends, who believe that at the present time a small volume containing a history of all the various issues of paper money by the Government will be useful and interest- ing to the public. The recent decision of the United States Supreme Court lias virtually placed it in the power of Congress to issue United States legal tender notes in any amount, at any time it may be deemed politic or advisable. A 2003111 jv PREFACE. connected history of the paper money issued by the Government will enable the reader to trace the gradual rise and development of a doctrine which has at length been endorsed by so much weight of authority. At the date of the adoption of the Constitution, the issue of paper money in any form was popularly re- garded with aversion. The experience of the colonists with bills of credit, as paper money was then called, had been fraught with loss and political disturbance, and the experience with the like issues by the Contin- ental Congress had so affected the minds of the wisest and best men of that time, that in the Federal Conven- tion the general feeling was one of almost bitter opposi- tion to granting the power to emit bills of credit to the new Government. ]So one can examine the records of those days without being thoroughly impressed that the sense of the Convention was in favor of an absolute prohibition. Further proof may be found in the fact that from 1791 to 1812, a period of twenty-one years, the method of raising funds for the Government by the issue of bills of credit was not even suggested ; nor indeed were circulating notes, in form payable on demand without interest, issued at all, until more than seventy years after the adoption of the Constitution. The charter of the first Bank of the United States expired in 1811, and the Federalists were not strong enough to secure a recharter. When the war of 1812 PREFACE. V broke out, the necessity of funds was so imperative, that the Administration and Congress felt themselves forced, the one to recommend, and the other to author- ize, the issue of interest-bearing Treasury notes. They were regarded as a measure of necessity. Loans in the ordinary form had failed, and these notes were regarded as a convenient form of loan. They were not intended to circulate as money ; they were f undable into public stock, and, as a matter of fact, were retired as soon as possible after the close of the war. These issues were, however, a fatal precedent out of which has grown a latitude of constitutional construction not then antici- pated. From 1815 to 1837, a period of twenty-two years, there was no resort to this remedy for the relief of the Government finances. In 1836, the charter of the second Bank of the United States expired, and again party spirit prevented a recharter. Soon after came the financial disasters of 1837, and again the Ad- ministration recommended, and Congress authorized, the issue of interest-bearing Treasury notes as forms of short loans. These issues extended from 1837 to 1844, and during that period the views of many, as to the constitutionality of their use, considerably expanded. The discussions in Congress, and the executive docu- ments of that day, show how severe was the strug- gle between the strict constructionists and those who vi PREFACE. were in favor of a view of the Constitution giving wider powers to Congress. During the Mexican war, 1846-1847, the plea of necessity secured congressional authority for another issue of interest-bearing Treasury notes. The financial panic of 1857 again caused Congress to consider such notes as the only remedy for the existing distress. It remained for the Civil war, however, to bring such pressure that all remaining constitutional scru- ples were swept away. Until 1862 no notes had been issued with the legal-tender quality. All propo- sitions to make Government paper a legal tender had been rejected almost with contempt by Congress. In 1862, however, the first Legal-tender Act was passed, and for the first time, notes having the quality of legal tender, and intended to circulate as money, were is- sued by the United States Treasury. These notes were at first fundable in United States bonds, and had not this provision been afterward repealed by Con- gress, they would, like previous issues of Treasury notes, have soon disappeared from circulation. By this repeal they were made a permanent circulation. Then came the decision of the United States Supreme Court, reversing a former decision and making them a legal tender for all debts for those contracted before the passage of the Legal-tender Act as well as for those contracted after that date. This decision, however, PREFACE. vii based the constitutionality of legal-tender notes upon the war powers of Congress. This still left open the question whether such notes issued in time of peace were constitutional, and the Supreme Court has now settled that, under the Constitution, Congress has power, if it deems it expedient, to issue legal-tender money to any amount, either in time of peace or war. The chapter upon the distribution of the surplus money of the United States is, it is believed, the first complete history of that subject. It serves to illus- trate the subject of United States notes. The crisis of 1837, which at that time was deemed sufficient cause for the issue of the latter, can be readily traced to the withdrawal of the surplus from the banks to distribute it among the States. The late decision of the Supreme Court on t!*<3 legal- tender question, and the dissenting opinion, OB account of their importance, are given in an Appendix. A considerable portion of the material in the present volume was contained in the third volume of the "Cyclopaedia of Political Science and Political Econ- omy," recently published by M. B. C*ry & Co., of Chicago ; and by their courtesy, and with their consent, it is given to the public in this convenient form. In addition to the authorities quoted, the following have been consulted: American State Papers; Annals of Congress ; Madison Papers ; Elliot's Debates ; Con- viii PREFACE. gressional Globe ; Bolles' Financial History of the United States; National Loans of the United States, by R. A. Bayley ; Annual Cyclopaedia ; Hunt's Mer- chants' Magazine ; Bankers' Magazine ; Schucker's Life of Chase ; Spaulding's Legal-tender Paper Money ; Newspapers, 1861, 1862, 1863. J. J. K. WASHINGTON, April 30, 1884. CONTENTS. PREFACE, CHAPTER I. COLONIAL PAPEK MONEY, .... 1 CHAPTER II. PAPER MONEY AUTHORIZED BY THE CONTINENTAL CONGRESS, 9 CHAPTER HI. BILLS OP CREDIT IN THE FEDERAL CONVENTION, ... 13 CHAPTER IV. TREASURY NOTES AUTHORIZED UNDISR THE CONSTITUTION, . 19 CHAPTER V. TREASURY NOTES OP THE WAR OF 1812, . . 31 CHAPTER VI. TREASURY NOTES op THE PERIOD OP THE FINANCIAL CRISIS OP 1837 x CONTENTS. CHAPTER Vn. PAGE TREASURY NOTES OF THE PERIOD OF THE MEXICAN WAR, 63 CHAPTER VIII. TREASURY NOTES OF THE BUCHANAN ADMINISTRATION, . 70 CHAPTER IX. TREASURY NOTES OF THE PERIOD OF THE CIVIL WAB, . 80 CHAPTER X. THE SILVER DOLLAR AND THE SILVER CERTIFICATE, . . 148 CHAPTER XI. THE LEGAL-TENDER CASES IN THE SUPREME COURT OF THE UNITED STATES 156 CHAPTER XII. THE DISTRIBUTION OF THE SURPLUS AMONG THE STATES, . 167 APPENDIX, 193 INDEX, >231 LIST OF FAC-SDIILES AND FOKMS OF TREASURY NOTES. Photo-lithograph of Fifty Dollar one year Treasury Note, Act of March 3, 1843, bearing interest at the rate of one mill per $100 per annum. Frontispiece. Photo-lithograph of Fifty Dollar one year Treasury Note, Act of January 31, 1842, bearing interest at six per cent. Page 1 Photo-lithograph of One Hundred Dollar two years Treas- ury Note, Act of January 28, 1847, bearing interest at six per cent. End of Volume. Form of One Hundred Dollar Note, Act February 24, 1815, bearing interest at 5| per cent., or one cent and one- half a cent per day. Page 35 Form of Five Dollar Note, Act February 24, 1815, fund- able into seven per cent, bonds. Page 36 Form of One Hundred Dollar one year Note, Act March 31, 1840, bearing interest at five per cent. Page 47 Form of One Hundred Dollar one year Note, Act July 22, 1846, bearing interest at 5| per cent. Page 65 Form of One Hundred Dollar two years Note, Act January 28, 1847, bearing interest at six per cent. Page 67 xii FAC-SIMILES OF TREASURY NOTES. Form of One Hundred Dollar one year Note, Act Decem- ber 23, 1857, bearing interest at three per cent. Page 73 Form of Fifty Dollar two years Note, Act March 2, 1861, bearing interest at six per cent. Page 81 Form of Ten Dollar Note, being the first Demand Note ever issued by the United States, Act July 17, 1861. Page 91 Form of Seven-thirty Fifty Dollar three years Note, in- terest one cent per day, Act March 3, 1865. Page 101 Form of Five Cent Postage Currency and Reverse, re- ceivable for Postage Stamps, Act July 17, 1862. Page 105 Form of Ten Cent Postage Currency and Eeverse, Act July 17, 1862. Page 106 Form of Twenty-five Cent Postage Currency and Reverse, Act July 17, 1862. p age 107 Form of Fifty Cent Postage Currency and Reverse, Act July 17, 1862. p age 108 Form of Compound Interest three years Ten Dollar Note, bearing interest at six per cent., compounded semi- annually, Act June 30, 1864. Page 111 Form of Reverse of Note, giving interest for each six months. Page 112 UNITED STATES NOTES. CHAPTER I. COLONIAL PAPER MONEY. PREVIOUS to the Revolutionary War paper money was issued to a greater or less extent by each one of the thirteen colonies. The first issue was by Massachusetts in 1690, to aid in fitting out the expedition against Canada. Similar issues had been made by New Hamp- shire, Rhode Island, Connecticut, New York, and New Jersey, previous to the year 1711. South Carolina began to emit bills in 1712, Pennsylvania in 1723,. Maryland in 1734, Delaware in 1739, Virginia in 1755,, and Georgia in 1760. Originally the issues were au- thorized to meet the necessities of the colonial treasuries. In Massachusetts, in 1715, as a remedy for the prevailing embarrassment of trade, a laud bank was proposed with the right to issue circulating notes se- cured by land. John Colman, a merchant of Boston, urgently advocated its establishment. The land bank was forbidden by the Province Council,, unless author- ized by the General Assembly. There was a large party, 2 UNITED STATES NOTES. however, in favor of paper money in some form. The plan for the land bank was defeated, but the issue of paper money by the treasury was authorized to the ex- tent of 50,000, to be loaned on good mortgages in sums of not more than 500, nor less than 50, to one person. The rate of interest was 5 per cent., payable with one-fifth of the principal, annually. The bills were in form the same as those previously issued for the benefit of the treasury. This round sum or aggre- gate of 50,000, to be so loaned, was styled a bank, and was the first of the so-called loan banks, which were afterward authorized by nearly, if not quite, all of the colonies. In 1733 an issue of bills to the amount of 110,000 was made by the merchants of Boston, which were to be redeemed at the end of ten years, in silver, at the rate of 19 shillings per ounce. In 1739, the com- mercial and financial embarrassment still continuing, another land bank was started in Massachusetts. John Colman was one of the corporators. The stock of the land bank was to be 150,000. Iso one was permitted to subscribe more than 2,000, nor less than 100. The subscribers were to pay down lawful money at the rate of 40 shillings for every 1,000 subscribed, and for the remainder were to pledge security in lands to the satis- faction of the directors. They were to pay 3 per cent, interest per annum, either in bills of the bank or in produce and manufactures, at prices regulated by the directors. Circulating notes equal to the capital were to be issued, payable in twenty years in produce or manufactures, and 5 per cent, of the capital was to be paid annually in the notes, produce, or articles manu- factured. The "manufactures, being the produce of FIRST PAPER MONEY ISSUED; BUBBLE ACT. 3 this province," were enumerated as follows : ' " Hemp, flax, cordage, bar iron, cast iron, linens, sheep's wools, copper, tanned leather, flaxseed, beeswax, bayberry wax, sail cloth or canvas, nails, tallow, lumber or cord wood, or logwood from New Spain." This scheme was strenuously opposed by Governor Belcher, but in spite of all opposition 49,250 of its notes were struck off, of which the treasurer of the company issued 35,582, and 4,067 were employed by the directors in trade. A specie bank was also formed in 1739, by Edward Ilutcliinson and others, which issued bills to the amount 120,000, redeemable in fifteen years in silver, at 20 shil- lings per ounce, or gold pro rata. The payment of these notes was guaranteed by wealthy and responsible mer- chants. These notes, and those of a similar issue in 1733, were largely hoarded and did not pass generally into circulation. In 1740 Parliament passed a bill to extend the act of 1720, known as the bubble act, to the American colonies, with the intention of breaking up all companies formed for the purpose of issuing paper money. Under this act both the land bank and the specie bank were forced to liquidate their affairs, though not without some re- sistance on the part of the former. The Governors of Massachusetts rendered themselves very obnoxious to the people by their determined opposition to these banks and to paper money generally, 2 and Governor Belcher 1 An Historical Account of Massachusetts Currency, p. 103. By Joseph B. Felt. Boston, 1839. - The History of Massachusetts Bay, vol. ii. , p. 396. By Lieutenant- Governor Hutchinson. Boston, 1767. 4 UNITED STATES NOTES. \vas recalled to England on account of misrepresentations of the paper money advocates, but was subsequently ap- pointed Governor of Xew Jersey. The paper money of the colonies, whether issued by them or by the loan banks, depreciated almost without exception as the amounts in circulation increased. The bills as originally emitted were intended to be equal to coin, but when depreciation advanced to such an extent as to appal the authorities, a new set of bills would be issued, with new assurances that they would be kept equal to coin. In these new bills the old bills would be redeemable at their depreciated value. Sometimes this second set of bills, having also depreciated, was replaced by a third set in the same way. These various sets were designated tenors ; the terms old tenor, middle tenor, new tenor, new tenor 1st, new tenor 2d, being used to distinguish them. To give all the details of the depre- ciation of this currency in each of the colonies would re- quire much space ; but the best authorities agree that it underwent in all cases a constant diminution in value, inflicting loss and misery upon all classes of citizens. Pelatiah Webster says of this paper and the continental currency : " We have suffered more from this cause than from any other cause or calamity. It has killed more men, pervaded and corrupted .the choicest interests of our country more, and done more injustice than even the arms and artifices of our enemies." The following table 1 gives the price of 100 in coin in the currencies of the several colonies in the year 1748 : 1 A Short History of Paper Money and Banking in the United States, p. 10. By Wm. M. Gouge. Philadelphia, 1833. VALVE OF PAPER MONEY IN COIN. New England 1,100 New York 190 New Jersey 180 to 190 Pennsylvania 180 Maryland 200 North Carolina 4 1,000 South Carolina 750 Virginia 120 to 125 The emission of bills bj the colonies and the banks was not regarded with favor by the mother country, and the provincial governors were as a general thing opposed to these issues. They were consequently frequently em- broiled with their legislatures. Felt, in his " Massachu- setts Currency," gives examples of this controversy. Governor Belcher, in 1740, issued the following proclama- tion : " Whereas, a scheme for emitting bills or notes by John Colinan, Esq., and others, was laid before the General Court in their session held the 5th of December, 1739, and by a report of a committee appointed by said Court, was represented, if carried on, to have a great tendency to endamage His Majesty's good subjects as to their properties ; and whereas, application has been very lately made to me and His Majesty's Council, by a great number of men of the most considerable estates and business, praying that some proper method may be taken to prevent the inhabitants of this province being- imposed upon by the said scheme ; and it being very apparent that these bills or notes promise nothing of any determinate value, and cannot have any general, certain or established credit ; wherefore, I have thought fit, by and with the advice of His Majesty's Council, to issue this proclamation, hereby giving notice and warn- 6 UNITED STATES NOTES. ing to all His Majesty's good subjects of the danger they are in, and cautioning them against receiving or passing the said notes, as tending to defraud men of their sub- stance and to disturb the peace and good order of the people, and to give great interruption and bring much confusion into their trade and business." Subsequently, on November 6, of the same year, being assured that part of the military corps encouraged the circulation of the land bank paper, he published the fol- lowing : " I hereby warn all commissioned officers in the ;nilitia from signing or giving any countenance to the passing of the said notes of hand, directly or indirectly. And as I apprehend that if these should obtain a cur- rency, it will reflect great dishonor on His Majesty's Gov- ernment here, and be very detrimental to the public in- terests of this province and people, I do hereby declare niv firm resolution, that if after this pnblick notice given, any of the military officers of this province persist in being any way concerned in or giving any encouragement whatsoever to the passing of the said notes of hand, and full proof be made thereof to my satisfaction, I will im- mediately dismiss them from their said offices." These proclamations had but little effect. A gentleman writing to a correspondent in London, under date of February "27, 1741, says: " Whole troops, nay almost whole regi- ments either resigned or told their colonels, who ex- amined them, that they would resign rather than not encourage the 1 bills." Later in the same year Governor Belcher writes to Thomas Hutchinson : " You say it would be much better if some other way than by appli- cation to Parliament could be found to suppress it (land bank). I assure you, the concerned openly declare they PAPER MONEY A CAUSE OF THE REVOLUTION. 7 defy any act of Parliament to be able to do it. They are grown so brassy and hardy as to be now combining in a body to raise a rebellion, and the day set for their coming to this town is at the election, and their treas- urer, I am told, is in the bottom of the design, and I doubt it not. I have this day sent the sheriff and his officers to apprehend some of the heads of the conspir- ators." These continued disputes, which largely curtailed the use of an expedient which the colonists considered necessary to their prosperity, together with the action of Parliament in restricting the issue of paper money, embittered the minds of the colonists against England, and had undoubtedly much to do with the final out- break. The Bubble Act, which laid an interdict on all banking associations having no legal charter within the dominions of the king, was passed by Parliament in 1720. In 1740 another enactment was made, extending the provisions of the act of 1720 to the American colo- nies, where it had been disregarded. Banking in those days consisted merely in the privilege of issuing circu- lating notes, and this act restricted all private enter- prises of this kind. On June 25, 1751, Parliament enacted a law forbidding paper money of the colonies to be passed, except for current expenses of the Govern- ment each year, or in case of invasion by the enemy. It seems also that these exceptional cases, where paper money was permitted, were to be under control of the Crown, as Mr. Bollan, the agent in London of the prov- ince of Massachusetts, writes that he opposed the bill on the ground that it might open the way for the un- constitutional exercise of the king's authority in the 8 UNITED STATES NOTES. colonies in other matters. Legal tender paper money was prohibited by this act of Parliament, and in 1763 such issues were declared void ; but subsequently, in 1773, they were allowed to be received as legal tender at the treasuries of the several colonies. CHAPTEE H. PAPER MONEY AUTHORIZED BY THE CONTINENTAL CON- GRESS. THE second Continental Congress was convened in 1775, and, in order to raise funds, having no power to insti- tute taxation, naturally turned toward the expedient of an emission of paper money on the credit of the Union, but in the redemption of which each colony was to bear a part. The first issue was made in June, 1775. For a year these issues continued equal to gold ; in two years they had depreciated to 2 for 1 ; in three years to 4 for 1 ; in nine months more their relative value was 10 for 1 ; in September, 1779, it was 20 for 1. Con- gress now determined that the total issues should not exceed $200,000,000, and renewed the declaration that this currency should be redeemed in full, and went to some labor to prove that the States had the ability to do so. In March, 1780, these issues had so depreciated that their value, as compared with specie, was as 40 to 1. Congress now required the whole to be brought in for redemption at its market value in coin, and also author- ized the emission of new notes bearing interest at 5 per cent., and payable six years from date in silver and gold. These were to be exchanged in the proportion of 1 dollar of the new for 20 dollars of the old emission. 1* 10 UNITED STATES NOTES. During the year 1780 the notes of the old issue sank first to 75 to 1, then ceased to circulate in the States north of the Potomac. In Virginia and North Carolina they passed for a year longer, and finally depreciated to 1,000 to 1, and then ceased to circulate. According to Thomas Jefferson, but 200 millions of the first emission was issued, which was the amount au- thorized by resolution of Congress ; but other authorities state the amount much higher. Joseph bourse, register of the treasury in 1828, places it at $241,552,780. The amount as given in the treasury statement of 1843 was 8242,100,176. The aggregate loss to the people of the country from this currency was estimated by Secretary Woodbury at $196,000,000. During the war paper money, distinct from the continental currency, was also issued by several of the States. The amount thus issued has been placed at $209,000,000, which is probably too high. It is, however, difficult to obtain exact informa- tion in reference to these emissions. At the close of the war the minds of all classes were imbued with a wholesome antipathy to paper money, and as a consequence, when the Federal Constitution was un- der consideration, the power to emit bills, which in the original draft was given to the United States, was strick- en out. Moreover, the original draft having contained a qualified permission to the States to issue paper money, an amendment was inserted which took away from the States all power to coin money, emit bills of credit, or make anything but gold or silver coin a tender in pay- . ment of debts. It has been held that the lack of power on the part of a State to coin money, taken in connection with the prohibition of the emission of bills, prevents the VIEWS OF WEBSTER AND STORY. 11 issue of paper money by banks chartered by the State, as well as such issue by the State itself. This view was held by Daniel Webster, in his speech on the Bank of the United States, on the 25th and 28th of May, 1832, and his arguments are quoted with commendation by Mr. Justice Story, in his commentaries on the Constitution, as follows : " It will be hereafter seen that this (the power to coin money) is an exclusive power in Congress, the States being expressly prohibited from coining money. And it has been said by an eminent statesman that it is difficult to maintain, on the face of the Constitution it- self, and independent of long-continued practice, the doc- trine that the States, not being at liberty to coin money, can authorize the circulation of bank paper as currency at all. His reasoning deserves grave consideration, and is to the following effect : The States cannot coin money. Can they, then, coin that which becomes the actual and almost universal substitute for money ? Is not the right of issuing paper intended for circulation in the place and as the representative of metallic currency, derived merely from the power of coining and regulating the metallic currency ? Could Congress, if it did not possess the power of coining money and regulating the value of foreign coins, create a bank with the power to circulate bills ? It would be difficult to make it out. Where, then, do the States, to whom all control over the metallic currency is altogether prohibited, obtain this power ? It is true that in other countries private bankers, having no legal author- ity over the coin, issue notes for circulation. But this they do always with the consent of the Government, express or implied ; and Government restrains and regulates all their operations at its pleasure. It would be a startling propo- 12 UNITED STATES NOTES. sition in any other part of the world, that the prerogative of coining money held by the Government was liable to be defeated, counteracted, or impeded by another pre- rogative, held in other hands, of authorizing a paper cir- culation. It is further to be observed that the States cannot issue bills of credit ; not that they cannot make them a legal tender, but that they cannot issue them at all. This is a clear indication of the intent of the Con- stitution to restrain the States as well from establish- ing a paper circulation as from interfering with the metallic circulation. Banks have been created by States with no capital whatever, their notes being put in circu- lation simply on the credit of the State. "What are the issues of such banks but bills of credit issued by the State ? " Mr. Justice Story says : " This opinion was not peculiar to Mr. Webster ; it was maintained also by Hon. Samuel Dexter, one of the ablest statesmen and lawyers who have adorned the annals of the country." Nearly thirty years after, Chief Justice Chase, when Secretary of the Treasury, in his report to Congress, of December 9, 1861, said : " It has well been questioned by the most eminent statesmen, whether a currency of bank notes, issued by local institutions under State laws, is not, in fact, prohibited by the national Constitution. Such emissions certainly fall within the spirit, if not within the letter, of the constitutional prohibition of the emission of bills of credit by the States, and of the mak- ing by them of anything except gold and silver coin, a legal tender in payment of debts." CHAPTER III. BILLS OF CREDIT IN THE FEDERAL CONVENTION. THE committee appointed by the Federal Convention held in Philadelphia on May 14, 1787, reported, on August 6, a draft of the Constitution, which contained, in article thirteen, a clause giving qualified authority to the States to issue paper money, as follows : " Is o State without the consent of the Legislature of the United States shall emit bills of credit, or make anything but specie a ten- der in payment of debt." This clause, after discussion, was finally so amended as to read as follows : " Xo State shall coin money, emit bills of credit, make anything but gold and silver coin a tender in payment of debts." The eighth clause of the first section of the seventh article of the Constitution, as presented for the consid- eration of the Convention, provided that " the Legislature of the United States shall have power to borrow money, and emit bills on the credit of the United States." This clause, as embodied in the eighth section of the first article of the Constitution as finally adopted, reads, " The Congress shall have power to borrow money on the credit of the United States." The debate ' on the question of striking out the words " and emit bills," is important, for the reason that the subject of making 1 Madison papers, vol. iii., p. 1343. 14: UNITED STATES NOTES. bills of credit issued by the Government a legal tender, was there for the first time discussed, and was not sub- sequently at any time, as far as I am aware, discussed at any length by Congress, though it was twice presented for its consideration, until the Legal Tender acts of 1862 were brought before Congress for its consideration. This debate was as follows : " Mr. Gouverneur Morris moved to strike out, ' and emit bills on the credit of the United States.' If the United States had credit, such bills would be unneces- sary ; if they had not, unjust and useless. Mr. Butler seconds the motion. Mr. Madison: Will it not be suffi- cient to prohibit the making them a tender ? This will remove the temptation to emit them with unjust views. And promissory notes, in that shape, may in some emer- gencies be best. Mr. Gouverneur Morris : Striking out the words will leave room still for notes of a re- sponsible minister, which will do all the good without the mischief. The moneyed interest will oppose the plan of Government, if paper emission be not prohibited. "Mr. Gorham was for striking out without inserting any prohibition. If the words stand, they may suggest and lead to the measure. Mr. Mason had doubts on the subject. Congress, he thought, would not have the power, unless it were expressed. Though he had a mor- tal hatred to paper money, yet as he could not foresee all emergencies, he was unwilling to tie the hands of the Legislature. He observed that the late w^ar could not have been carried on, had such a pohibition existed. Mr. Gorham : The power, as far as it will be necessary or safe, is involved in that of borrowing. " Mr. Mercer was a friend to paper money, though BILLS OF CREDIT IN FEDERAL CONVENTION. 15 in the present state and temper of America, he should neither propose nor approve of such a measure, lie was consequently opposed to a prohibition of it alto- gether. It will stamp suspicion on the Government, to deny it a discretion on this point. It was impolitic, also, to excite the opposition of all those who were friends to paper money. The people of property would be sure to be on the side of the plan, and it was impolitic to purchase their further attachment with the loss of the opposite class of citizens. Mr. Ellsworth thought this a favorable moment to shut and bar the door against paper money. The mischiefs of the vari- ous experiments which had been made were now fresh in the public mind, and had excited the disgust of all the respectable part of America. By withholding the power from the new Government, more friends of influ- ence would be gained to it than by almost anything else. Paper money can in no case be necessary. Give the Government credit, and other resources will offer. The power may do harm, never good. Mr. Randolph, not- withstanding his antipathy to paper money, could not agree to strike out the words, as he could not foresee all the occasions that might arise. " Mr. Wilson : It will have a most salutary influence on the credit of the United States to remove the possi- bility of paper money. This expedient can never suc- ceed while its mischiefs are remembered. And as long as it can be resorted to, it will be a bar to other resources. Mr. Butler remarked that paper was a legal tender in no country in Europe. He was urgent for disarming the Government of such a power. Mr. Mason was still averse to tying the hands of the Legislature altogether. 16 UNITED STATES NOTES. If there was no example in Europe, as just remarked, it might be observed, on the other side, that there was none in which the Government was restrained on this head. Mr. Eead thought the words, if riot struck out, would be as alarming as the mark of the beast in Keve- lation. Mr. Langdon had rather reject the whole plan than retain the three words, 'and emit bills.' " On the motion for striking out, Kew Hampshire, Massachusetts, Connecticut, Pennsylvania, Delaware, Virginia, Xorth Carolina, South Carolina, Georgia, aye 9 ; jSew Jersey, Maryland, no 2. The clause for borrowing money was agreed to, nem. con. Adjourned," Kine States voted to strike out, and two States to re- tain. Virginia voted in the affirmative, and in explana- tion of his vote, Mr. Madison appended the following note : " This vote in the affirmative by Virginia was oc- casioned by the acquiescence of Mr. Madison, who be- came satisfied that striking out the words would not disable the Government from the use of public notes as far as they could be safe and proper, and would only cut off the pretext for & paper currency, and particularly for making the bills a tender either for public or private debts." Mr. Martin, of Maryland, a delegate to the Federal Convention, who was in favor of retaining the words, in his address to the Legislature of his own State, soon after the proceedings of the Convention, said: 1 "By 1 "The Genuine Information delivered to the Legislature of Mary- land, relative to the Proceedings of the General Convention lately held at Philadelphia, by Luther Martin, Esq., Attorney General of Maryland, and one of the Delegates in the said Convention. Phil- adelphia: printed by Eleazer Oswald, at the Coffee House. 1788." PHILIPPIC OF DELEGATE MARTIN, OF MD. 17 our original articles of confederation, the Congress have a power to borrow money and emit bills of credit on the credit of the United States ; agreeable to which was the report on this system as made by the Committee of Detail. When we came to this part of the report, a motion was made to strike out the words, ' to emit bills of credit ; ' against the motion we urged that it would be improper to deprive the Congress of that power ; that it would be a novelty unprecedented to es- tablish a government which should not have such au- thority. That it was impossible to look forward into futurity so far as to decide that events might not hap- pen that should render the exercise of such a power ab- solutely necessary. And that we doubted whether, if a war should take place, it would be possible for this coun- try to defend itself without having recourse to paper credit, in which case there would be a necessity of be- coming a prey to our enemies, or violating the Constitu- tion of our Government ; and that, considering the ad- ministration of the government would be principally in the hands of the wealthy, there could be little reason to fear an abuse of the power by an unnecessary or injuri- ous exercise of it. But, sir, a majority of the Conven- tion, being wise beyond every event, and being willing to risque any political evil rather than admit the idea of a paper emission, in any possible case, refused to trust this authority to. a Government to which they were lavishing the most unlimited powers of taxation, and to the mercy of which they were willing blindly to trust the liberty and property of the citizens of every State in the Union ; and they erased that clause from the sys- tem." 18 UNITED STATES NOTES, Forty-eight years later, in a speech in the Senate on the famous "specie circular" in 1836, Daniel Webster said : " Most unquestionably there is no legal tender, and there can be no legal tender in this country, under the authority of this Government or any other, but gold and silver, either the coinage of our own mints or foreign coins at rates regulated by Congress. This is a Constitu- tional principle, perfectly plain and of the highest im- portance. The States are expressly prohibited from making anything but gold and silver a legal tender in payment of debts, and although no such express pro- hibition is applied to Congress, yet, as Congress has no power granted to it in this respect but to coin money and to regulate the value of foreign coins, it clearly has no power to substitute paper or anything else for coin as a tender in payment of debts and in discharge of contracts. Congress has exercised this power fully in both its branches ; it has coined money, and still coins it ; it has regulated the value of foreign coins, and still regulates their value. The legal tender, therefore, the constitutional standard of value, is established and can- not be overthrown. To overthrow it would shake the CHAPTER IV. TREASURY NOTES AUTHORIZED UNDER THE CONSTITUTION. THE Constitution was adopted on September 17, 1787, and three years thereafter, Hamilton, in his report of December 13, 1790, on a national bank, said : " The emitting of paper money by the authority of Government is wisely prohibited to the individual States by the national constitution ; and the spirit of that prohibition ought not to be disregarded by the Government of the United States. Though paper emissions, under a gen- eral authority, might have some advantages not applica- ble, and be free from some disadvantages which are ap- plicable, to the like emissions by the States separately, yet they are of a nature so liable to abuse and, it may even be affirmed, so certain of being abused that the wis- dom of the Government will be shown in never trusting itself with the use of so seducing and dangerous an ex- pedient." Although notes of different forms were issued subsequently by the Government at various dates, some of \vhich were receivable for all dues payable to the Government, no circulating notes were authorized to be issued which were payable on demand in coin, until the passage of the act of July 17, 1861, which authorized the issue of fifty millions of notes payable " on demand " and "receivable in payment of all public dues;" and no circulating notes were authorized, which by the terms of law were made a full legal tender, until the passage of the act of February 25, 1862, which was nearly seventy- five years after the adoption of the Constitution. Some 20 UNITED STATES NOTES. of the treasury notes, issued since the adoption of the Constitution, and previous to the passage of the Legal Tender act, were receivable for all dues to the Govern- ment, and others not ; some were payable at a fixed date, both with and without interest ; some were fundable at any time after the date of their issue, others at a fixed date in United States bonds. During the late civil war, treasury notes were also is- sued of all these different forms, and also notes payable on demand, receivable for all dues to the Government, and others payable to bearer, not receivable for duties on imports, or payable by the Government for interest upon the public debt, but in every other respect a full legal tender to and by the Government, and between the people in all payments. Postage currency was also issued, re- ceivable in payment of all dues less than five dollars ; and fractional currency, which was "exchangeable for United States notes " in sums of not less than three dollars. Ko notes were issued from 1789 to 1812, a period of twenty-three years. !N\)tes bearing interest were issued in the years 1812, 1813, 1814" and 1815, and at various dates from 183T to 1847. They were again issued in 1857, and subsequently, in the years 1860, 1861 and thereafter. The periods for the issue of these notes may be summarized as follows : first, the war of 1812 ; second, the financial crisis of 1837 ; third, the Mexican war; fourth, the financial crisis of 1857, or during the Buchanan administration ; and fifth, the war of the rebellion. It will thus be seen that there have been four emergencies in which Congress lias seen fit to authorize interest-bearing notes, and only one in which it has authorized bills of credit or circulating notes paya- ble on demand in lawful money. CHAPTER Y. TREASURY NOTES OF THE WAR OF 1812. THE original debt had, at the beginning of 1812, been reduced from seventy -five millions to forty-five millions. In 1810 it was found impossible to meet all of the annual reduction of the debt required by law from the sinking fund, and a temporary loan was authorized to make up the deficiency, which amounted to $2,750,000. This loan was paid the next year. In 1811, however, re- course was had to a loan, and the one authorized by Congress for that year was taken so slowly, that, in the month of May of the following year the Secretary of the Treasury, for the first time since the adoption of the Constitution, recommended the issue of treasury notes upon the following principle, viz. : "1. Not to exceed, in the whole, the amount which may ultimately not be subscribed to the loan ; that is to say, that the amount received on account of the loan, and that of the treasury notes, shall not, together, exceed eleven millions ; which limits, therefore, the greatest possible amount of treasury notes to less than $4,900,000. 2. To bear an interest of 5| per cent, a year, equal to one cent and one-half a cent per day on a hundred dollar note. 3. To become pay- able by the treasury one year after the date of their re- spective issues. 4. To be, in the meanwhile, receivable in 22 UNITED STATES NOTES. payment of all duties, taxes, or debts, due to the United States." He did not propose that the notes should be fundable in the loan which they were intended to re- enforce. This recommendation of Secretary Gallatin was made in his letter of May 14, 1812, to Mr. Langdon Cheves, chairman of the Committee of Ways and Means of the House, and, in conformity therewith, a bill was reported by that Committee on June 12, 1812. War was declared against Great Britain June 18, 1812. The failure of the loan was due to the fact that the money had to be borrowed from the very classes who had been opposed to the war ; therefore, when the bill for authorizing treasury notes was put upon its passage an June 16, it met with much opposition. It was argued that the notes under the bill were not equal in value to gold and silver, and would not be received by the banks or the people, who were prejudiced against such Government paper ; that if issued they could not be redeemed, and would depreciate ; that the measure would be subversive of public and private credit ; that it was a confession of impaired credit ; that to allow the notes to be deposited in banks and to accept bank paper in exchange was to depreciate the Government's paper ; that if issued, additional taxes should be im- posed and set apart for the redemption of the notes, as in the case of the English exchequer notes ; that the pro- posed notes were the same as the old continental money, and would depreciate in the same way. Others opposed the bill simply because they opposed the war or any preparation for it. In case Avar proved unavoidable the necessary funds should be raised by taxes and loans. The shortness of the time for which ARO UMENTS FOE AND A GAINST ISSUE OF NOTES. 23 the notes were to be issued was another objection. The public revenues would not meet the engagement, and engagements should not be entered into without a certainty of fulfilment. Taxes were necessary. It was a paltry expedient never suggested by Hamilton or Wolcott, and not even the spontaneous production of Gallatin ; that the first suggestion of the latter was to authorize a loan on such terms as would have insured its success. It Avas a humiliating spectacle to exhibit the Government failing in negotiating its first war loan. On the other hand, the supporters of the bill main- tained that the notes would be received by the banks in the same manner as any good individual paper was re- ceived. The banks would give the Government credit for them, and in return the Government could draw gold and silver from the banks. The notes would be even more valuable to the latter than specie, as they could be kept as an interest-bearing reserve. They would have currency, being receivable in duties, taxes, and debts due the Government, and, as interest accumulated, they would increase in value. In reply to the suggestions that money should be raised by taxes, it was stated that when, previously, measures of that kind had been pro- posed, the opposition had refused to consent. The issue of treasury notes, bearing interest at 5f per cent, only, did not indicate bad, but rather good credit. In- dividuals in good credit could not borrow at less than 6 per cent. There was no depreciation of Government paper in exchanging the notes for bank paper, as the latter was ready money, while the former were payable one year after date. It was denied that the people had or would have any prejudice against treasury notes. 24 UNITED STATES NOTES. They were, not prejudiced against bank notes, and the proposed notes bearing interest had many advantages over bank paper. The proposed notes would be in no way inferior to exchequer bills; in fact, it was only want of credit that compelled the English Government to set aside certain revenues to meet the latter. The treasury notes would have two advantages over ex- chequer bills : one, the superior credit of the United States, and the other, that they were receivable for taxes and public dues. They were also superior to pub- lic stocks, in that, while bearing interest, they also can serve as currency, the same as gold and silver, thus en- hancing the medium of circulation. There was no re- semblance between them and continental money. When the latter was issued, the Government was de- pendent on the pledges of the several States for its revenues, but now its credit was above suspicion, its power to raise revenue complete, and its ability to pay its debts undoubted. War was unavoidable. Both loans and taxes would have to be resorted to. The pro- posed notes were nothing but a loan with extraordinary advantages, taking, however, but little from the circulat- ing medium of the country. In many transactions they would have all the effect of money. While not secured by any specific fund set apart for their redemption, the entire duties and taxes of the year are indirectly pledged for this purpose, since they are receivable in payment of such duties and taxes. The revenues of the year were estimated at eight millions, and the proposed issue of notes was five millions only. The faith of the Gov- ernment was pledged for their redemption. That faith had never been violated. The resources of the Govern- FIRST ISSUES UNDER CONSTITUTION, 1812. 25 merit were ample beyond those of any other nation. Its sources of revenue were unimproved land, a produc- tive agriculture, an extensive commerce, an enterprising people, and an unlimited right of taxation. The antici- pated abuse of a privilege was no argument against its legitimate use. The bill passed the House June 17, 1812, yeas 85, nays 41. It passed the Senate June 26, and became a law June 30, 1812. By it the President was authorized to issue treasury notes to an amount not exceeding $5,000,000. Section two of the first " Act to authorize the issuing of treasury notes," read as follows : ' ; That the said treasury notes shall be reimbursed by the United States, at such places, respectively, as may be expressed on the face of the said notes, one year, re- spectively, after the day on which the same shall have been issued ; from which day of issue they shall bear interest at the rate of five and two-fifths per centum a year, payable to the owner and owners of such notes, at the treasury, or by the proper commissioner of loans, at the places and times respectively designated on the face of said notes for the payment of principal." They were signed by persons designated by the Presi- dent, and the compensation of these persons was fixed at one dollar and twenty-five cents each for one hundred notes signed. They were countersigned by the Com- missioners of Loans for the State in which the notes were respectively made payable. With the approval of the President, the Secretary of the Treasury was authorized to borrow money upon the security of the notes, and to pay them to such banks as would give the Government credit for them at par. When the notes were paid to 26 UNITED STATES NOTES. collectors of revenue and receivers of public money, the interest ceased on the day of payment. The Commis- sioners of the Sinking Fund were authorized to cause the principal and interest to be paid when due, and to purchase them at not more than par, in the same M T ay as they purchased other public securities, with a view of reducing the debt. They were made payable to order, transferable by delivery and assignment on indorsement by persons to whose order they were made payable. The notes were made everywhere receivable for duties, taxes, and in payment of public land, at their par value with accrued interest on the day paid in. Penalties were imposed for counterfeiting them, and an appro- priation made for the expense of printing and preparing the notes. There was nothing in the law regulating the denomi- nations in which they should be issued, but, as a matter of fact, none were issued of a denomination of less than one hundred dollars. The largest amount authorized under this act, outstanding at any one time, M r as five millions. The notes authorized were all issued before the end of the year 1813, and were all redeemed during the year 1814. Mies' Register for July 4, 1812, in an editorial, thus refers to the issue of these notes. The arguments used in favor of their issue were almost pre- cisely the same as those afterward urged by Chase and Fessenden in favor of the issue of seven-thirty and com- pound-interest notes : "To meet any possible exigency from a transient failure of adequate supplies to carry on the war against an unprincipled and inveterate enemy, it has been re- solved to issue certain notes from the treasury depart- NILES' REGISTER FA VORS TREASURY NOTES. 27 ment, to the amount of about five million dollars, bear- ing interest of five and two-fifths per cent, per annum, equal to one and one-half cents per day on every note of $100 which notes are to become payable at the treasury one year after the date of their respective issues, and in the meantime are receivable (with interest that may have accumulated upon them) in all payments to be made to the United States. " This plan appears the most eligible that could possi- bly have been adopted, as it will mutually accommodate the Government and the people, and be advantageous to both. Yet attempts are making (what will not the enemy attempt ?) to depreciate the value of this intended emission, by comparing it with the old continental money.- The pitiful design will not avail, for though treasury notes to the value of five millions may issue, the probability is that a ten thousandth part of the population of the United States will never see one of them. The whole will be locked in the vaults of the bank, or snugly put away by individuals as soon as they appear; because they will be convertible into current money (specie or bank notes) at a moment's notice, and have constantly increasing value. The sum to be issued is so completely within the means of the Government, that these notes will always bear a premium equal to the interest that may have accumulated on them. The city of New York itself, in the course of one year would consume the whole emission. The proposed op- eration of these notes is so perfectly understood by the trading part of the community, particularly on the sea- board, that an explanation of it may W 7 ell be thought superfluous ; but as bad men may seize upon them to 28 UNITED STATES NOTES. alarm the ignorant and unsuspecting, it appears right we should offer a few propositions to show their folly and wickedness. A person receives of the United States $10,000 in treasury notes ; if he has no use for the money for ten days, he lays them in his desk for that time the interest in the interim amounts to $15. He then carries them to a bank and deposits them with other monies, for $10,015, or exchanges them with a friend or neighbor (and in our seaports he can always find such) who has duties to pay for that amount. Thus the money is never idle, it works night and day, in the language of money lenders, and is constantly accumu- lating. The banks will be glad to receive these notes in exchange for their own ; the advantage is on their side, as the treasury notes bear a daily interest, and their own bear none at all. If the stock should rise to a greater amount than the bank may think it advisable to keep, w T liich can hardly be possible, they are immedi- ately convertible into any kind of money desired, for the banks always have customers who will use them in payment of bonds due the United States for duties. They are better as deposits than specie, gold, and silver, for gold and silver lie dormant in the vaults, whereas the treasury notes will be an active capital, every hour becoming more and more valuable, and as fully compe- tent to all the purposes of the banks as specie, because they will produce it. " From these brief remarks it will appear evident that treasury notes, the moment they are issued, will be hoarded up by the banks, if they can get them ; and very few of us will be alarmed at the sight of one unless we seek it as a matter of curiosity." ADDITIONAL ISSUES IN 1813. 29 The Secretary estimated that there would be a deficit of nineteen millions for the year 1813. Congress au- thorized sixteen millions of this amount to be obtained by loans, without tlie usual provision that the bonds should be sold at par, or specifying the rate of interest. The loan was placed with great difficulty, the sixteen millions authorized being obtained from the avails of $18,109,377.43 of stock, bearing interest at six per cent. To supply the remainder, a bill was introduced into the House on January 27, 1813, to authorize a new issue of treasury notes. The bill was similar in its provisions to the act of 1812 ; the arguments for and against the measure were in the main the same as those of 1812. The opposition complained that much favoritism had been shown in the dealings with the banks. It was al- leged that among the banks granting credit in return for the treasury notes deposited, as authorized by the law of 1812, were those acting as depositaries of public moneys derived from the ; deposits of collectors and pub- lic agents ; that this very money so deposited by the Government agents was again loaned to the Government on the credit of treasury notes. On the other hand, it was urged that the use of banks as depositaries was un- avoidable, and that, in any event, banks would receive incidental benefit from keeping Government deposits. Even if a stock loan was substituted for treasury notes the money realized therefrom would be deposited with the same banks until required by the Government. The bill passed the House by a vote of 79 to 41, and the Sen- ate by a vote of 17 to 9, and became a law on February 25, 1813. The greatest amount of notes authorized by this act, outstanding at anyone time, was five millions; they 30 UNITED STATER NOTES. were all redeemable by the first quarter of the calendar year of 1815, but at the close of that quarter only $1,483,900 had been redeemed, and all of the remainder was not finally paid until the year 1820, although the greatest portion was called in by 1817. They were is- sued in denominations of not less than $100. An act similar in all respects to that of February 25, 1813, passed the House by vote of 83 to 48, and the Senate without debate, on March 1, and was approved March 4, 1814. It authorized the issue of five millions of treasury notes, and of an additional five millions, which, if issued, was to be considered as part of a stock loan for the year, which was subsequently to be authorized. This loan for twenty -five millions was authorized on March 24th of the same year, and could only be placed at a large discount. An additional five millions was therefore issued in place of an equal amount of stock, making in all ten millions of treasury notes issued under this act. These notes were for the first time issued^ in denominations of less than 8100, notes of the denomination of twenty dollars being placed in circulation. The whole ten millions were issued previous to June 30, 1815. The policy of Congress seemed to be to keep the authorized issue of treasury notes each year below the amount of the reve- nue of the year, or, if more was authorized, they were to be in lieu of, and to re-enforce, stock loans. On December 26, 1814, an act was passed which authorized the issue of $7,500,000 of treasury notes in place of portions of the loans of March 24th and Novem- ber 15th not already placed, and three millions more for the expenses of the War Department. These notes bore .the same rate .of interest and were for the same time as LEGAL TENDER A " DESPERATE EXPEDIENT." 31 those of the act of June 30, 1812, and under this act $8,318,400 of notes were issued, a portion of which was in the denominations of twenties and fifties. On August 31, 1814, specie payments were suspended except in lS T ew England. The accounts of the Treasury Department show that there were outstanding on Sep- tember 30, 1814, $10,649,800 of treasury notes. Mr. Crawford was succeeded in October by Secretary Dallas, and the latter, in his report to the Committee of Ways and Means on October 17, 1814, said the condition of the circulating medium presented another copious source of mischief and embarrassment. The stock of specie was diminished by exportation, and by its withdrawal into the private coffers of individuals. The multiplication of banks had increased the paper currency, so that it was difficult to calculate its amount, and still more difficult to ascertain its value. Bank currency was of no benefit since the suspension of specie payments, and there virtu- ally existed no circulating medium common to all the citizens of the United States. The money transactions of private individuals were at a stand, and the fiscal opera- tions of the Government labored with extreme inconven- ience. Under favorable circumstances, the limited issue of treasury notes would probably afford relief, but they were an expensive and precarious substitute for coin or bank notes. He concluded by recommending the estab- lishment of a national bank, and added : " But whether the issues of paper currency proceed from the national treasury, or from a national bank, the acceptance of the paper in a course of payments and receipts must be for- ever optional with the citizens. The extremity of that day cannot be anticipated, when any honest and enlight- 32 UNITED STATES NOTES. ened statesman will again venture upon the desperate expedient of a tender law." This statement was called out by a report made by Mr. Eppes, Chairman of the Committee of Ways arid Means of the House, on Octo- ber 10, 1814, in which, in order to secure the circulation of treasury notes, it was recommended that notes of small denominations should be issued, to be funded into 8 per cent, stock, payable to bearer, and transferred by deliv- ery, receivable in all payments for public lands and taxes. The internal revenue taxes were to be pledged for pay- ment of interest, and they were to be exchangeable for stock at 8 per cent., or redeemable in specie after six months' notice from the Government. On November 24, 1814, in a report to the committee to which a bill for establishing a national bank had been referred, Mr. Dallas mentions, as one of the means at the disposal of the Treasury, the issue of treasury notes, " which none but necessitous creditors, contractors in distress, or Government agents acting officially were willing to accept." He also states that the act of Ko- vember 15, 1814, authorizing treasury notes to be taken in payment for subscriptions to loans, was passed too late ; that the interest on the public debt had not been punctually paid, and that a large amount of treasury notes had already been dishonored. In a subsequent communication of December 14, 1814, he said that the non-payment of treasury notes, and the risk of not pay- ing the interest on the funded debt, were chiefly owing to the suspension of specie payments by the banks, and the consequent impracticability of transferring public funds from the place where they were deposited to the place where they were needed. The difficulty referred to LEGAL TENDER FIRST PROPOSED IN CONGRESS. 33 in meeting tlie interest upon the public debt was in Bos- ton. A State bank had large Government deposits, and a draft was sent to meet the interest, upon October 1, 1814. The State bank declined paying in coin or bank notes, and the creditors refused to receive the treasury notes that were offered instead. After the suspension, the Government was deprived of the use of specie, and as the banks in each State refused credit and circulation to the notes of banks' in other States, no transfer of funds could be made to places where they were wanted to meet treasury notes ; consequently the credit of these notes was lessened, and creditors refused to accept them in payment. On November 12, 1814, Mr. Hall, of Georgia, intro- duced in the House a series of five resolutions to revive the credit of treasury notes. The second resolution pro- vided that the notes should be a legal tender between citizens, and between citizens and foreigners, for all debts then due or afterward to become due, which the House refused to consider by a vote of 95 to 42 more than two-thirds. These resolutions were evidently introduced as measures in opposition to the proposition for a na- tional bank, and the other four resolutions were subse- quently laid upon the table by a large majority. On January 30, 1815, a bill authorizing the issue of treasury notes in accordance with the recommendations of Secretary Dallas in his communication of January 17th, was introduced in the House and referred to the Committee of the Whole. The bill passed the House February llth, and the Senate February 21st, and was approved February 24, 1815 ; it was the last of a series of five acts, commencing with that of June 30, 1812, the 34: UNITED STATES NOTES. first four of which had authorized the issue of treasury notes bearing interest at the rate of 5f per cent. The form of the large notes issued under this act, which in size were 7f by 3 inches, is shown on the next page. This act authorized the issue and reissue of treasury notes to an amount not exceeding twenty -five millions, upon principles essentially different from those govern ing prior issues. These notes might be of any denomi- nation : if of a denomination less than $100, they were designated as "small treasury notes," were payable to bearer, and bore no interest ; if of a denomination of 100 or upward, they were payable to order, transferable by indorsement, and bore interest at the same rate as those of $100 and upward previously authorized. The form of the "small treasury notes," in size 6 by 3 inches, is shown on page 36. These notes were not chargeable upon the sinking fund, as in the case of the first three acts of the series, nor were they payable out of any money in the treasury not otherwise appropriated, as in the previous act of Decem- ber 26, 1814, but rested entirely upon the provision making them fundabie into stock. The principal and interest were not payable at any specified time, but the notes were everywhere receivable in all payments to the United States. The act reduced the pay of those sign- ing the notes to seventy -five cents for each one hundred notes, and also provided that treasury notes of previous issue should be fundabie into 6 per cent, stock. The holders of the small treasury notes could exchange them at pleasure, in sums of not less than $100, for certificates of funded stock bearing interest at 7 per cent. The treaty of peace was signed on December 14, 1814, but HVTTOd 3 A I TOTAL NOTES ISSUED DURING WAR OF 1812. 37 the news reached Washington a few days only before the passage of the bill, which, although a war measure, was carried through, inasmuch as it was considered necessary to the regulation of the disordered finances of the country. The whole amount of treasury notes, ab- solute and contingent, which was authorized by these five acts, was $60,500,000, of which amount $36,680,794 was issued. The following table exhibits the amount issued under each act : Under act of June 30, 1812 $5,000,000 Under act of February 25, 1813 5,000,000 Under act of March 4, 1814 10,000,000 Under act of December 26, 1814 8,318,400 Under act of February 24, 1815 $100 notes. .$4,969,400 Under act of February 24, 1815 small treas- ury notes 3,392,994 8,362,394 Total amount issued $36,680,794 Although the treasury notes of 1815 of small denomi- nations, originally issued, amounted to only $3,392,994, the law made them fundable into 7 per cent, stock, payable after December 31st; and as the notes were re- issuable, they were, under various exigencies, again and again paid out, until the whole amount of the 7 per cent, stock issued for the purpose of funding them, amounted to $9,070,386. On account of the high rate of interest of these bonds, the small treasury notes were in demand, and a small amount was sold at a premium of 4 per cent., and $1,365,000 at a premium of $32,107.64, or about 2 per cent. The Secretary, in his annual report for 1815, says : " The treasury notes, 38 UNITED STATES NOTES. which were issued under act passed previous to February 24, 1815, were, for the most part, of a denomination too high to serve as a current medium of exchange ; and it was soon ascertained that the small treasury notes, fundable at an interest of Y per cent., though of a con- venient denomination for common use, would be con- verted into stock almost as soon as they were issued." ' The notes of $100 and upward, though fundable into 6 per cent, bonds, were depreciated from 8 to 10 per cent, below bank notes, which bore no interest, but were re- deemable in specie. In recapitulation, it may be stated that the treasury notes of the period of the war of 1812 were issued under five acts of Congress, as stated in the table. The notes of the first three acts were made chargeable to the sink- ing fund those of the last two, not ; those of the first two acts were in denominations of not less than $100 ; those of the next two were not less than $20 ; and those of the last act were in denominations of $3, $5, $10, $20, $50, $100 and upward. Those of the first three acts were not originally fundable into stock, but were made so by the act of November 15, 1814, and by the subse- quent act of February 24, 1815. The notes of the acts of December 26, 1814, became fundable by the act of February 24, 1815, but those of the last-named act were fundable by the terms of their authorization. The notes of all the acts but the last were made payable one year from the date of their issue ; those of the last act were payable at no fixed date. All of these notes (with the exception of the small treasury notes, which were with- 1 Report of the Secretary of the Treasury, 1815, p. 26. DEPRECIATION OF GOVERNMENT LOANS, 1812-1815. 39 out interest) bore interest at the rate of 5f per cent. None were in the form of a promise to pay coin on de- mand, but all in the form of a receipt for all dues pay- able to the Government. None of these notes had any legal tender quality, and Congress, without debate, re- jected the only proposition made to give them this quality. The denominations, except in the case of the small notes of 1815, were too large for general circulation, and the inducements for funding the latter were so great that they were speedily funded into seven per cent, bonds. As long as the banks redeemed their notes in specie, treas- ury notes appear to have been kept at par, but when specie payments were suspended, they began to depreci- ate, but were kept from great discount by the funding acts of November 25, 1814, and February 24, 1815. It is said, " that of eighty millions of loans negotiated by the Government during this period, the avails were only thirty-four millions, after deducting discounts and depreciations." ' After the close of the war, in Decem- ber, 1814, these notes were rapidly funded. 1 Report of Committee of Ways and Means, April 13, 1830, CHAPTER VI. TREASURY XOTES OF THE PERIOD OF THE FINANCIAL CRISIS OF 1837. Ix anticipation of a large surplus, Congress, by act of June 23, 1836, provided for the distribution of a large amount of Government money among the States in pro- portion to their representation in the Senate and House of Representatives, and three instalments, amounting in all to 27,063,430, were so distributed. 1 In the mean- time, about May 1, 1837, specie payments were suspended, owing to the great depression in commercial circles. An extra session of the 25th Congress was called in Septem- ber of the same year. The charter of the second Bank of the United States had expired on March 4, 1836, and on June 23, 1836, Congress had passed an act authoriz- ing and regulating the deposit of public moneys in State banks. No action was taken during the extra session toward rechartering the Bank of the United States. The distribution of the fourth instalment to the States was, however, postponed, but the Secretary was pro- hibited from calling for any of the money already dis- tributed without special authority from Congress, which has not, up to the present date, been given. The revenues for the year (1837) were from six to ten 1 See page 180. DISCUSSION OF TREASURY NOTE BILL, 1837. 41 millions short of the expenditures. The public funds already deposited with the States were unavailable, and there was another instalment to be deposited on Octo- ber 1st. The Secretary recommended the withholding of this instalment, and, in order to supply currency, an is- sue of treasury notes, the small denominations to bear no interest, and the large with interest. A large party in Congress were in favor of recharter- ing the Bank of the United States. The advocates of treasury notes urged the issue principally upon the ground of necessity, there being no currency upon which the Government could rely to make and receive pay- ments. Many were in favor of a substitute to be issued by the proposed new Bank of the United States. A bill was presented and passed by the Senate. When it came to the House, objection was made that it was a money bill, which the Senate had no constitutional right to originate. This point was not discussed, but the Committee of Ways and Means presented their own bill, by which the issue of ten millions in treasury notes was authorized. The bill encountered much opposition, par- ticularly from those in favor of authorizing a new bank, but passed the House on October 9, 1837, by a vote of 127 to 98, which was a strict party vote. In the Senate, the next day, Mr. Bentori moved to make the lowest de- nomination of notes $100, instead of $50, as provided in the bill. He presented strong objections to the issue of treasury notes. Nothing but the fact that the Govern- ment must otherwise stop for want of funds, would in- duce him to vote for paper money in time of peace. He particularly objected to the policy of reducing the denominations of paper currency. It was the most dan- 42 UNITED STATES NOTES, gerous feature of the system, and would drive all specie from circulation. Mr. Clay spoke in favor of Mr. Ben- ton's motion, and characterized the whole measure to be, to all intents and purposes, a great bank experiment, and allnded to the inconsistency of issuing, in time of pro- found peace, ten millions additional notes after decrying the banks for enlarging their circulation. Mr. Webster favored Mr. Ben ton's motion. It was lost by a vote of 25 to 16. The bill then passed by a vote of 35 to 6, both Mr. Benton and Mr. Webster voting for it, and Mr. Clay against it. This bill authorized the issue of treas- ury notes to an amount not exceeding ten millions, and in denominations not exceeding fifty dollars. The in- terest was not to exceed 6 per cent ; and they were to be payable, principal and interest, after one year from date, and were, for the first time, signed by the Treasurer and countersigned by the Register. They were to be issued in payment of the debts of the United States to any creditor who would receive them, and were to be re- ceivable in payment of all debts and dues to the Gov- ernment. They were not reissuable, and the authority to issue terminated December 31, 1838. The ten mil- lions authorized were issued by Secretary Woodbury previous to July 1, 1838. About two millions \vere is- sued at the nominal rate of interest of 1 mill per cent.; three millions at 2 per cent.; and over four millions at 5 per cent. On account of the low rate of interest upon a large portion of the notes, the object for which they were issued, namely, to supply a circulating me- dium, was thwarted, for they were soon presented in payment of taxes, and over five millions were retired be- fore the whole amount had been issued. SECOND PROPOSI1ION OF LEGAL TENDER. 43 At the end of 1837 the Secretary estimated that the balance in the treasury for July, 1838, would be $34,- 187,000, of which $28,101,644 was due from the States, $1,100,000 due chiefly from insolvent banks, and $3,500,- 000 from other banks, payment of which was postponed. These sums, and the bullion fund in the mint, reduced the estimated available balance in July, 1838, to about one million. This estimate was nearly correct, for Con- gress was advised by the President, in May, 1838, that only $216,000 of available funds remained in the treas- ury. There were several propositions in the House, one of which was a bill for authorizing loan certificates, which should be a legal tender to public creditors, but not re- ceivable for dues to the Government. The question of the legal tender was not discussed. Mr. Cambreleng, of New York, from the Committee of Ways and Means, re- ported a short bill, authorizing the issue of treasury notes to the amount of the issue of October, 1837, which had been redeemed and cancelled. The interest upon the issues already made under the laws of 1837 had been too small, and they had been immediately paid into the treas- ury when due. There were gratifying signs of a revival of prosperity. The Northern banks had resumed specie payment sooner than expected. This he ascribed to the firmness of the President in refusing to allow dues to the United States to be paid in notes of banks not paying specie. He referred to the passage of the Free Banking act of New York as a presage of sound banking in future. He also urged the necessity of providing notes to enable the treasury to meet its payment. The objections to the bill were much the same as those urged in the debate dur- ing the previous session, though they were presented with 44 UNITED STATES NOTES. more force and completeness, particularly by Mr. Caleb Gushing, He said that such issues were bills of credit not warranted by the Constitution ; that they were based only upon the faith of the Government ; that such meas- ures were considered of doubtful and dangerous charac- ter by all the friends of democratic institutions ; and that Madison and others had always been opposed to the issues of Government paper founded not on funds or specie, but only upon faith or credit, and only consented to its expediency in remarkable exigencies. Experience had shown, that whatever interest they might bear, whether 1 mill or 6 per cent., they would not be above the value of the notes of good banks. It \vas said that, if the United States under the Constitution could issue these bills, so could the States. They were the same as con- tinental money, although bearing interest. Much of the currency issued by the States, during the revolution, de- nominated bills of credit, bore interest. Chief Justice Marshall's definition 1 of bills of credit was, ' ' paper issued by the sovereign authority, and intended to circulate as money." These notes are issued by sovereign authority, and intended to circulate as money. They operate un- equally, and afford no general relief ; they are below par 1 The Supreme Court of the United States in a famous case, Briscoe rs. Bank of Kentucky, 11 Pet., 257, held that a note of circulation " issued by a State, involving the faith of the State, and designed to circulate as money on the credit of the State, in the ordinary course of business," is a bill of credit. Other decisions of the Supreme Court Craig t. Missouri, 4 Pet., 410 ; Byrne ;. Missouri, 8 Pet., 40 hold " that certificates issued by a State in sums not exceeding ten dollars nor less than fifty cents, receivable in payment of taxes, the faith and credit of the State being pledged for their redemption, are bills of credit within the prohibition of the Constitution." MARSHALL'S DEFINITION OF BILLS OF CREDIT. 45 in New York, and at 5 per cent, premium in Charleston. The bill was amended to obviate some technical objec- tions, and finally passed by a small majority, 106 to 99, on May 16, 1838. It came up in the Senate on May 18th. Wright, of New York, Benton, Calhoun, Brown, and Tal- madge were in favor of it. Webster, Clay, Crittenden, and Preston were on the other side. The discussion took a wide range, involving the causes of the condition of the treasury, and the constitutionality of the issue of treasury notes. It passed by a vote of 27 to 13, and was approved on May 21, 1838. Nearly five millions were issued within one month after the passage of the bill, which showed conclusively the pressing needs of the treasury. Under the previous acts of October, 1837, and May 21, 1838, the authority to issue treasury notes ex- pired on January 1, 1839. The whole issue was not to exceed ten millions, and the latter act permitted the re- issue of those paid in. The whole amount which had been issued to Decem- ber, 1838, was $15,709,801.01, with interest as follows: $6,888,809.60 at 6 per cent. ; $4,280,273.72 at 5 per cent. ; $2,784,844.73 at 2 per cent. ; and $1,755,881.96 with interest at 1 mill per cent. There had been re- deemed, up to the same date, $7,955,250, leaving $7,754,560 outstanding. The authority to reissue ex- pired with the year. On January 1, 1839, there was a large amount of notes in the treasury, which con- tinued to grow larger until March 2, 1839, when an act was passed, extending the authority to reissue until June 30, 1839, provided the whole amount outstanding did not exceed ten millions. In December, 1839, Secretary Woodbury reported that at no time had more than ten 46 UNITED STATES NOTES. millions been outstanding, and that the amount out- standing was less than the amount due from suspended banks, and from the Pennsylvania bank of the United States, to the Government, and that the principal and interest on the treasury notes had always been promptly paid when desired. A bill was subsequently presented by Mr. Jones, Chairman of the Committee of Ways and Means. Amendments were offered requiring that the notes should bear interest at not less than 2 per cent., and making them negotiable and transferable only by in- dorsement, in the same manner as bills of exchange : the first to prevent the issuance of notes at the nominal rate of 1 mill per cent., or one-thousandth of 1 per cent., per annum, and the second to prevent their circulation as money, and both to cure, as was alleged, the constitu- tional difficulty which pertained to bills of credit issued by sovereign authority and intended to circulate as money. The Whigs refused to vote, leaving no quorum. On March 24, 1840, the House continued in session from ten o'clock until five P.M. of the next day. Finally, when the House adjourned, the consideration of the bill was fixed for the following Friday, and on that day March 27, 1840 it finally passed the House by a vote of 110 to 66. It passed the Senate on March 30, 1840, and was approved the following day. On page 47 is the form of a $100 note issued under this act. On each end of the reverse were printed the figures 100. tinder this act the issues amounted to $7,114,251. Xotes were to be redeemed sooner than one year, if the condi- tion of the treasury would admit, and at any time with- in the year, after sixty days' notice. REPORT OF SECRETARY EWING. 49 The Secretary, in his report for 1840, states, that treasury notes had been at par during the year, although never bearing interest higher than 5f per cent., 1 and subject to payment after sixty days' notice. To meet the wants of the treasury, a treasury note bill was intro- duced, and passed Congress on February 15, 1841. This law authorized an issue of notes, in the aggregate, of $10,000,000, one-half to be issued in payment of amounts due and payable prior to March 4, 1841, and the remain- inu' s,"), 000,000 in payment of amounts due and payable after that date. In all, $7,529,062 were issued under act of February 15, 1841. In the fall of 1840, Harrison had been elected Presi- dent to succeed Van Bnren, but died April 4, 1841. He was the representative of the Whig party, which had, since the year 1837, so bitterly opposed the issue of treasury notes. Mr. Ewing, of Ohio, was appointed Sec- retary of the Treasury by President Harrison. In his re- port to Congress at its special session of May 31, 1841, he said that, from January 1, 1837, to March 4, 1841, the expenditures of the Government had exceeded the revenues by over $31,000,000. Of about twenty-six millions of treasury notes issued under the acts from October 12, 1837, to February 15, 1841, inclusive, all but about six millions had, as claimed by Secretary Woodbury, been issued in anticipation of revenues, or upon the basis of existing debts due to the United States, leaving about six millions outstanding when the new ad- ministration came in. Mr. Ewing estimated that the deficit in the revenues for the year 1841, after meet- 1 Finance Report, vol. iv., p. 354. 50 UNITED STATES NOTES. ing the current expenses and redeeming the treasury notes then outstanding and to be issued, would be $12,088,215, which he considered to be the amount of the public debt. He objected to the issue of treas- ury notes, and recommended a loan redeemable after eight years or upon six months' notice by the Govern- ment. A bill was introduced by Millard Fillmore, Chairman of the Committee of Ways and Means, on June 24th. It provided a loan, payable after January 1, 1856, with in- terest at 5 per cent., and authority was given the Secre- tary to purchase the bonds out of any surplus in the treasury. It was objected that the loan was unnecessary, and that it was the commencement of a scheme to or- ganize a national bank. The debate was bitterly politi- cal. It was urged, that as this was an administration measure, the loan should be paid within the term of the administration. This point was foolishly conceded, but the rate of interest was raised to 6 per cent. As thus amended the bill became a law on July 21, 18-11. The reduction of the length of the loan from eight to three years, together with the proviso that no stock could be sold below par, destroyed the usefulness of the measure, and less than one-half, or only 5,672,076, of the stock was sold, which was about equal to the amount of treas- ury notes outstanding. On September 13, 1841, Mr. Ewing was succeeded by Secretary Forward, of Pennsylvania. The policy of the administration was changed by the death of the Presi- dent. The repeal of the Independent Treasury act August 13, 1841, which had been authorized at the close of the Yan Buren administration, was about the only BILL OF 1842 INTRODUCED BY MR. FILLMORE. 51 point gained by the Harrison administration, and this repeal practically left the treasury to be managed by those who were unfriendly to the policy of the Whig party. A bill for the issue and reissue of treasury notes was introduced into the House by Mr. Fill more, January 5, 1842. Among other proposed amendments which were rejected, was one by Mr. Ben ton, heavily taxing all bank circulation, especially small notes. The bill be- came a law January 31, 1842. Under it the amount authorized to be outstanding at any one time was limited to five millions, but the total amount issued and reissued was 87,959,994. The subsequent act of August 31, 1842, authorized the issue and reissue of treasury notes, provided the amount outstanding at any one time should not exceed six millions, and under it notes to the amount of $3,025,554.89 were issued. All of the notes issued since the act of October 12, 1837, were issued payable either one or two years after date, chiefly for one year. These notes were continually falling due and embarrassing the treasury. Eleven millions of such notes were to fall due during the year 1843, and accordingly another bill was introduced by Mr. Fillmore, providing for the reissue of such notes as should be redeemed before July 1, 1844. The bill be- came a law on March 3, 1843. The amount of the treasury notes outstanding on the dates named from November, 1837, to March, 1843, are shown in the following table : ' 1 Page 186, 3d Session 27th Congress, Appendix. Speech of Woodbury. 52 UNITED STATES NOTES. MONTHS. 1837. 1838. 1839. 1840. March $6,518,964.65 8,009,760.01 $6,552,946 3,394,180 $2,176,981 4,664,200 November $53,723.83 1841. $5,393,094.00 7,371,705.00 1842. $8,539,115 10,039,056 1843. $11,656,387 November . . . John C. Spencer succeeded Walter Forward as Secre- tary of the Treasury, on March 3, 1843, and was himself succeeded, on June 15, 1844, by George M. Bibb. Under the act of March 3, 1843, Mr. Spencer issued about $850,000 treasury notes. On the face of each note 1 was engraved " The United States promise to pay, one year after date, to or order, fifty dollars, with interest at the rate of 1 mill per $100 per annum." On the back of each note, lengthwise, was engraved, " This note will be purchased at par for the amount of principal and in- terest thereof, on presentation at either of the Deposi- taries of the Treasury in the City of Xew York." These notes, which were issued at the nominal rate of interest of one-thousandth of 1 per cent, per annum, and by the indorsement made payable on demand, were considered by Congress an evasion of the act under which they were issued. The Secretary of the Treasury, in his report for December 6, 1843, had stated that less than $270,000 of these notes had then been issued, and asserted that the right to purchase such notes at par on presentation was given by the eighth section of the act of October 12, 1837, as follows : "And the said Secretary is further authorized to make purchases of the said notes, at par, 1 See Frontispiece. NOTES ISSUED BY SECRETARY SPENCER. 53 for the amount of the principal and interest due at the time of purchase on such notes." The Committee of Ways and Means were instructed, on January 15, 1844, " to inquire and report whether the notes lately issued by the Treasury Department, bearing a nominal in- terest and convertible into coin on demand, and now forming part of the circulating medium of the country, are authorized by the existing laws and Constitution of the United States ; " and the report of the Commit- tee, which also contains a letter of the Secretary giving his views on the subject, is interesting from the fact that it contains the principal constitutional ar- guments against the issue of paper money by the Gov- ernment. 1 During the second session of the 27th Congress, after the veto, by President Tyler, of a bill to au- thorize the organization of a Bank of the United States, he recommended the passage of a bill for the issue of exchequer bills of not less than $5 in denomina- tion, which notes were to be signed by the Treasurer of the United States, and countersigned by the President of the Board of Exchequer, and redeemable in gold and silver on demand at the agency where issued. This bill, which was prepared at the Treasury Department, did not- become a law, and it was claimed by the Committee^ tliat the notes issued by Secretary Spencer were in, mpst re- spects like the exchequer notes proposed \\\ this bill. The principal difference was, that while the exchequer notes were to be in denominations as law as $5, without interest, the notes issued were of denominations not less 1 Report Xo. 379, 28th Congress, 1st Session, H, pf -R, 54 UNITED STATES NOTES. than 850, and bore a merely nominal rate of interest. It was claimed by the Committee that the Constitution authorized the Government to borrow money, but not to issue bills of credit ; that borrowing money implied the paving of interest for the money borrowed ; that inter- est-bearing treasury notes payable at a future day were a temporary loan, not designed to circulate as money, and could properly be issued ; while notes bearing no interest and payable on demand were bills of credit, and could be issued only in violation of the Constitution. The following are extracts from the report of the Committee : " The power to issue treasury notes under the act of March 3, 1843, at a rate of interest not exceeding six per centum per annum, should the wants of the public service require, in place of others redeemed before the first day of July, 1844, seems to be clearly granted. The notes are to be redeemed at the Treasury after one year from their dates, respect- ively ; and the Secretary is authorized to make pur- chases of said notes, at par, for the amount of principal and interest due at the time of purchase. This is con- strued to mean, and the Committee do not intend to question such construction, a purchase before the expira- tion of one year, when the notes would, by limitation of time, become payable. Such purchases, however, in an- ticipation of time, necessarily imply the ability of the treasury to make them, and fair notice to the holders. These issues promise, on their face, to pay one year after date. In good faith, in point of fact, they are is- sued because required by the wants of the public ser- vice. If the wants of the public service really require Jthe issue of .treasury notes, to supply the deficiency of COMMITTEE'S REPORT ON SPENCERS NOTES. 55 means, then it is clearly impossible that the ability to purchase the notes should exist at the time of issue, and to make them, presently, convertible into coin. If the means to purchase are coextensive with the amount is- sued, coeval and coexistent, then it is perfectly manifest that the wants of the public service do not require the issue. If the wants of the public service require the is- sues, then there must be a present inability to redeem. Whether this inability will be removed before the efflux of one year depends upon the income of revenue, and consequent improved condition of the treasury. " The ability to purchase the notes within the year, therefore, is, at the time of issue, a future contingency ; which cannot be foreknown by the Secretary, so as to authorize him to give notice that the notes will be pur- chased at par, at all times on presentation, and at any time after the date of issue. The sound construction and the common-sense view of the matter seem to be, that the notes may be issued, if the wants of the public service require ; and if it shall be seen, subsequently, that the treasury can spare the means, then, and not till then, is the Secretary authorized, or indeed able, to make the purchase ; and ought not, and cannot, but upon ascertainment of the existence of those means, give notice to the holders of the notes to be purchased. How can it be known what amount in the treasury, not otherwise appropriated, will be applicable to the pur- chase ? How can it be known what specific amount, can be drawn from the treasury to make purchases of notes ? " These views render it clear that the notice endorsed on the notes, and issued simultaneously with them, that they will be purchased on presentation, is not such 56 UNITED STATES NOTES. notice of purchase, as to time or amount, as the act au- thorizing the purchase contemplates ; nor is it such notice as a common borrower of money upon time, of one year, with the privilege of redeeming within the time, if able, would give to his lender. * * It is a useless and dangerous experiment with the public faith and public credit in times of peace. The public credit should be used sparingly in time of peace ; should be nursed and invigorated, so that it might be a safe reliance in great and pressing emergencies. But nobody can suppose that the Secretary either expected, desired, or intended, that these notes should be actually forth- with presented and paid. It is impossible to avoid the conclusion, that the whole plan of issuing notes payable on demand, as these notes are, in fact, made payable on demand, by the endorsement, is a deliberate contrivance of the Secretary of the Treasury, with the approbation of the President, to infuse into the circulation of the coun- try, Government paper. * * The Committee may admit that the maximum rate of interest being six per cent, per annum, and no restriction as to a mini- mum rate, that a mere nominal rate of interest cannot, of itself, be charged as transgressing the letter of the law. But if a mere nominal rate of interest be charged for the purpose of aiding in an object not contemplated by the law or authorized by the Constitution, then such nominal rate of interest is a mere pretext to cover a perversion of law, and a violation of the Constitution. The nominal rate of interest is so very small as hardly to admit of computation ; and for all practical purposes, the notes may be regarded as carrying no interest ; whilst the endorsement, that they will be paid at sight, CONSTITUTIONALITY OF DEMAND NOTES. 57 at either of the depositaries of the Treasury, in the city of New York, imparts to them the character of ordinary bank paper, calculated and intended to circulate as money, in the hands of the citizens. It is an emission of paper, on the public credit, to be circulated as money, like bank notes. * * " It is strongly to be inferred that Congress did not intend or expect any departure from the former prac- tices, much less the introduction of a new principle. For the Committee conceive that the issue of notes pay- able on demand, out of funds then on hand, and in the treasury, is totally different in principle from the issue of notes promising to pay one year after date, intended to supply a present deficit in the treasury, and to be re- imbursed thereafter out of accruing revenue. * * The power to borrow money on the credit of the United States was unanimously given, whilst the power to emit bills of credit was refused was struck out of the plan proposed, by a vote, in convention, of nine States to two. And yet the Secretary of the Treasury contends that because there are no express words of prohibition, as there are applied to the States, that Congress may exercise the power incidentally or appertinently to the power of bor- rowing money, whilst the States are totally precluded from a resort to bills of credit, either as a principal or primary power, or in any way as incidentally or appro- priately connected with some other power clearly re- served to the States. It was thought that it was too late to undertake to revive the exploded Federal doc- trine of claiming power because it had not been ex- pressly forbidden. And it is a matter of equal surprise that, at this late day, it should be seriously maintained 58 UNITED STATES NOTES, by any federal officer, that bills of credit (a paper cur> rency) may be supplied to the country under cover of the granted power to borrow money. The power to supply a paper currency is thus made of contingent existence, depending, first, upon the necessity of exercising the primary power to borrow money, and then upon the policy adopted of making the loan more permanent, in the shape of funded debt, or upon shorter time, in the shape of treasury notes. The want of additional cur- rency might possibly be experienced by the country, when there would be no deficiency of means in the treasury to make a loan necessary or proper. In this condition of affairs there would exist no authority to supply the needed currency. Again, a temporary loan might become necessary, and, might be authorized by Congress in the form of treasury notes, at a time when the country was abundantly supplied with a sound cir- culating medium, and in that condition of affairs, accord- ing to the argument of the Secretary of the Treasury, under cover of the authorized loan, and by the adoption of a peculiarly ingenious mode of issuing the notes of the treasury, a currency, not needed, might be sup- plied. The omission to give the power to the Federal Government ' to emit bills of credit ' as com- pletely bars that Government from the exercise of the power, as does the express prohibition to the States ' to emit bills of credit ' bar them from the exercise of such power. According to the received and well-established doctrine, that the States are sovereign, and have the right of self-government, it would follow that they might impart to their legislatures ample powers to leg- islate upon all subjects whatsoever meet for legislation ; REPORT OF COMMITTEE CONTINUED. 59 that they might constitute them, under their own con- stitutions, complete legislatures. Hence they agreed, in convention, to abstain from the exercise of certain enu- merated powers, which otherwise would justly and right- fully pertain to them as ' free and independent States.' And intending, in good faith, to relinquish and abandon the exercise of those certain powers, they inserted in their constitutional compact of union express prohibi- tions. The States, by fair and natural construction, would retain to themselves all powers not conferred ex- clusively upon the Federal Government, or expressly prohibited to the States ; and yet, out of abundant cau- tion, and to remove the possibility of doubt or cavil, an express amendment of the Constitution to that effect was adopted and ratified. " It will not be questioned by the Secretary, the Com- mittee suppose, that the States did possess, and have re- served the power to borrow money. Certain it is, that they have very generally and very extensively exercised such power. Kow, if the power to borrow money on the credit of a State be unqualified, like the power of Con- gress to borrow money on the credit of the United States, the Committee cannot comprehend the logic by which the conclusion is reached, that, in the latter case, whilst the absolute and independent power of issuing bills was intentionally withheld, yet it was meant to leave Congress unrestricted in the choice of such means of borrowing, if the emission of bills should, at any time, be deemed the most expedient mode of attaining that object ; and by which, in the former case, the other and contrary conclusion is also reached, that whilst the absolute and independent power of emitting bills of 60 UNITED STATES NOTES. credit is prohibited to the States, the like unrestricted choice in the means of borrowing, by the emission of bills, should at any time be deemed the most expedient mode of attaining that object, is not left to the States. Xeither Congress nor the States can emit bills of credit, in the exercise of an absolute and independent power. Congress and the States possess the unqualified power to borrow money. Congress is unrestricted in the choice of means, and may issue bills of credit, if that mode of borrowing should, at any time, be deemed the most ex- pedient. The States, however, are not equally unre- stricted in the choice of means, and may not issue bills, although that mode of borrowing should, at any time, be deemed the most expedient. * * When the loan obtained is for any considerable length of time, it is usual to fund the debt thereby created by issuing certificates of stock. Where the loan obtained has only a short time to run, and it is proposed to pay it off speedily with the accruing revenue, the ordinary mode is, to authorize the Secretary of the Treasury to issue treasury notes, payable at the expiration of a limited time, bearing such interest as may be expressed and al- lowed by the act directing the issue of the notes. Such notes are intended, bona fide, as a temporary loan, and are not designed or expected to circulate as a currency. Such notes were doubtless within the contemplation of Gouverneur Morris, when he remarked, that striking out the authority to issue bills of credit, would not prevent the use of the notes of a responsible minister, and that would do all the good without the mischief. The use of public notes can be justified only as the mode of effecting a loan they are employed to AMOUNT OF NOTE ISSUES, 1837-1844. 61 acknowledge the existence of a debt due by the United States, and contain a promise to pay it, at some future stipulated time, with interest, as may be agreed. To issue notes for circulation, payable on demand, under cover of the authority to borrow money in the form of treasury notes, is deemed an abuse of authority which ought to be corrected." From March 3, 1843, until July 26, 1846, no new is- sues of treasury notes were authorized. From 1837 to 1844 treasury notes amounting to $47,002,900 were is- sued under eight different acts, of which 846,216,935.82 were redeemed by the close of 1845. The lowest de- nomination for any one note was $50, but where new notes were issued in place of old ones the accrued inter- est was often added. The amount authorized to be originally issued by these several acts was thirty-one millions. The remainder consisted of reissues. The notes issued under the act of October 12, 1837, and the six succeeding acts were all printed from the same series of plates, and the different rates of interest were inserted in writing. A new set of plates were prepared for notes issued under the act of March 3, 1843, and the following words, " with interest at the rate of one mill per 8100 per annum." were engraved in the body of the note. These notes were all of the same size, the largest ever issued, and measure eight by four inches. Photo-lithographs of the originals issued under these acts may be found at the beginning and end of this volume. The following table exhibits the amount of treasury notes issued each year, under different acts of Con- gress, from October 12, 1837, to March 3, 1843, from which it will be seen that the total amount issued was 62 UNITED STATES NOTES. $7,002,900, all of which was sold or issued at par. Interest varied from 1 mill per cent, to 6 per cent., and the amount authorized was fifty-one millions. 1837 Act of October 12, 1837 $2,992,989 15 1838 Act of October 12, 1837 7,007,010 85 1838 Act of May 21, 1838 5,709,810 01 1839-Act of March 2, 1839 3,857,276 21 1840 Act of March 31, 1840 5,589,547 51 1841 Act of March 31, 1840 1,524,703 80 1841 Act of February 15, 1841 6,468,856 70 1842-Act of February 15, 1841 1,060,206 05 1842 Act of January 31, 1842 7,914,644 83 1843 Act of January 31, 1842 45,350 00 1843 Act of August 31, 1842 2,408,554 89 1843 Act of August 31, 1842 617,000 00 1844 Act of March 3, 1843 1,806,950 00 Total $47,002,900 00 CHAPTER VII. TREASURY NOTES OF THE PERIOD OF THE MEXICAN WAR. ON July 1, 1844, the public debt of the United States amounted to $24,748,188, and consisted principally of stocks not payable until the lapse of ten and twenty years. 1 The 5 per cent, stocks payable in ten years were at a premium of 106, and the 6 per cent, stocks payable in twenty years, at a premium of 116. The Secretary estimated that the revenue under the tariff of 1842 would yield a much larger amount than was neces- sary. Accordingly, Congress, in July, 1846, passed a bill amending the tariff and reducing the duties on imports. In the meantime, during the year 1845, difficulties with Mexico, owing to the annexation of Texas, rendered war inevitable, and on May 13, 1846, war was declared. Secretary Walker estimated that, if the war should continue for a year, there would be a deficiency of more than twelve millions ; and, in order to meet this defi- ciency, a bill was reported from the Committee on Ways and Means, which, with some additions, embodied the provision of the act of October 12, 1837, as to treasury notes, and that of April 14, 1842, as to a loan. The following is the form of a $100 note issued under this act : Seepage 65. 1 Report of Secretary Bibb, 1844. 04 UNITED STATES NOTES. These notes were printed from the plates used for printing the notes authorized by the acts of October 12, 1837, to August 31, 1842. The bill referred to author- ized an issue of treasury notes to an amount of ten mil- lions, which could also be reissued, and also a loan which could be issued in lieu of treasury notes ; the amount of both not to exceed ten millions. The stock was to be redeemable after ten years, no notes of less than $50 were to be issued, and they were to be signed by the Treasurer and the llegister. The rate of interest was not to exceed 6 per cent. Notes were to be used in pay- ment of public creditors who would receive them, and the Secretary could borrow money on them. The bill became a law July 22, 1846. Under this act, 87,- 687,800 of notes were issued, and $4,999,149 of stock. Of these notes $2,086,550 bore interest at 5| per cent, and $1,766,450 at 1 mill per cent, per annum. In January, 1847, the treasury was again in need, and to meet this necessity a bill was introduced, authorizing the issue of twenty-three millions of treasury notes, and an additional five millions under the act of July 22, 1846. This was an elaborate bill, containing all neces- sary provisions within itself, without referring back to the provisions of previous acts, as had been usually the case in legislation of this kind. The debate was princi- pally upon the conduct of the war, and, after one or two amendments had been agreed to, the bill passed the House on the same day that it was introduced, by a vote of 166 to 22. In the Senate, on January 25th, a resolu- tion to postpone its consideration was lost, and the debate took considerable latitude, principally upon the tariff question. The general sentiment appeared to be, that ^ I I! fi / el S0 TREASURY NOTES OF THE MEXICAN WAR 69 in the midst of the war the honor of the country must be sustained. Finally, with some slight amendments, the bill passed on January 27, 1847, by a vote of 43 to 2, and became a law on the following day. Notes issued under this act were not to be of a less denomination than $50, and were receivable in payment of public dues, including duties on imports, and were redeemable at the expiration of one or two years, and the interest was to cease at the expiration of sixty days' notice. On page 67 is the form of a 6 per cent. $100 note issued under this act. (A photo-lithograph of this note is given at end of the volume.) The principal of the notes was fundable into 6 per cent, bonds, redeemable after December 30, 1867, and this privilege was extended to the holders of notes issued under previous acts. Reissues were authorized, but the amount of stock and notes, at any one time, was not to exceed twenty-three millions. The right to issue treas- ury notes, under the act of July 22, 1846, was extended by the fifteenth section to the period fixed by these acts, and on the same terms, but the issue, under this section, was not to exceed five millions. $12,371,150 of these notes were issued previous to July 1, 1847, and $11,- 956,950 additional notes were issued during the next fiscal year. The whole amount of issues and reissues under the act was $26,122,100, all of which were either sold or paid to public creditors at par. The rate of in- terest of the notes was 5| and 6 per cent., and United States 6 per cent, bonds, chiefly for the purpose of re- deeming these notes, were issued under the same act, amounting to $28,230,350. CHAPTER VIII. TREASURY NOTES OF THE BUCHANAN ADMINISTRATION. THE treasury notes issued under the act of January 28, 1847, were all retired, with the exception of about $200,- 000, previous to July 1, 1S50, and no additional treasury notes were authorized, until the passage of the act of December 23, 1857. Secretary Cobb, in his report for that year, estimated that the receipts would exceed the expenditures, but said that the financial revulsion which had caused the banks to suspend specie payment in Octo- ber of that year, had also caused a large part of the duti- able merchandise to be stored without payment of duty, where it could remain tinder the law for three years, although it was probable that a considerable portion would be withdrawn and the duties paid previous to that date. Meanwhile, means should be provided for meet- ing the demands upon the treasury, and he recommended that authority should be given to issue treasury notes " for an amount not exceeding twenty millions of dollars, and payable within a limited time, and carry a specified rate of interest." A bill, in accordance with the sugges- tion of the Secretary, was introduced into both Houses of Congress on December 18, 1857. It passed the Senate on the following day, by a vote of 31 to 18, and the House on the 22d i>y a vote of 118 to 86, and was ap- proved on the following day and became a law. The bill provided for the issue of notes payable in one year NOTES OF THE BUCHANAN ADMINISTRATION. 71 from date of issue, to an amount not exceeding twenty millions. $6,000,000 were to be issued at a rate of inter- est not exceeding 6 per cent. The remainder was to be sold after public advertisement of not less than thirty days, at their par value, for specie, to the bidders offering to take them at the lowest rate of interest, not exceeding 6 per cent. The interest upon the notes was to expire, after maturity of notes, upon sixty days' notice from the Secretary, of his readiness to redeem such notes ; they were to be issued in denominations of not less than $100, and were to be signed by the Treasurer and Register ; they were receivable in payment of all dues to the United States. The whole amount authorized was issued, and the amount of issues and reissues, in all, was $52,778,900. The interest upon these notes was as follows : $6,323,600 at 3 per cent.; $985,000 at from 3to 4 percent.; $688,- 000 at 4 per cent.; 10,055,700 at 4 per cent.; $4,532,- 500 at 4f per cent.; $7,533,900 at 5 per cent.; $8,204,- 500 at 5^ per cent.; $3,514,100 at 5| per cent.; and $10,941,600 at 6 per cent. On page 73 is the form of a 3 per cent. $100 note issued under this act. The following table exhibits the different kinds of treasury notes outstanding which were issued from the organization of the Government to the date of the pas- sage of the act of March 2, 1861, and which had not been presented for payment on January 1, 1885 : NOTES. Act. Bate of Interest. Principal. Interest. Treasury Notes, 1846. Treasury Notes, 1846. Treasury Notes, 1847. Treasury Notes, 1857. Prior to 1846 July 22, 1846 Jan. 28, 1847 Dec. 23,1857 1 mill to 6 per cent. 1 mill to 6 per cent. 6 per cent. 3 to 6 per cent. $82,525 5,900 950 1,700 $2,688.06 200.60 57.00 99.00 72 UNITED STATES NOTES. The total public debt on June 20, 1860, was $64,769,- 703.08. The outstanding treasury notes issued under act of June 23, 1857, were $19,690,500. The amount of treas- ury notes outstanding, issued under acts previous to that date, was $105,111.64. The act of June 22, 1860, au- thorized a loan of twenty-one millions, at a rate of in- terest not exceeding 6 per cent., to be reimbursed within a period not more than twenty years, and not less than ten years. The money was to be used in the redemp- tion of treasury notes, and to replace any amount paid to the treasurer iii such notes for public dues. Under this authority, proposals were invited by Secretary Cobb, on September 8, 1860, for ten millions of this loan, which amount was " ample to meet all the treasury notes that would fall due before January 1, 1861." In his report for December 4, 1860, he says : " The rate of interest was fixed at 5 per centum per annum, under the conviction that the loan could be readily negotiated at that rate, for, at that time, the 5 per cent, stock of the United States was selling in the market at the pre- mium of 3 per cent. The result realized this just ex- pectation, and the whole amount offered was taken, either at par or a small premium." Before, however, the time had arrived for payment on the part of the bidders, political complications arose, which affected the credit of the Government so unfavorably that the amount realized was but $7,022,000, the subscribers of $2,978,000 having failed to make good their subscrip- tions. The Secretary stated that, in the present condition of the country, capitalists were unwilling to invest in United States stock at par, and recommended a repeal of so much of the act of June 22, 1860, as authorized i &. WASHINGTON'S HEAD "1 ] ] 1" 1 U Ten Dents i. w U. S. 2ECZIVABLE FOB AT ANY ""aTsT POSTAOE STAMPS POST OFFICE. [REVERSE.] EXCHANGEABLE FOR UNITED STATES NOTES Treasurer or Depositary in V\\lt &OUARS. payment of all By any Assistant designated U. S. sums not less tha n Receivable in duet to the U. States less th ACT APPROVED JULY 17, 1862. ) POSTAGE CURRENCY O 5 Furnished only by the Assistant Treasurers and Designated Depositaries of the U. S. This design RECEIVABLE FOR AT ANY 5 5 U. S. Postage Five Cents U. S. U.S. I appears five times. POSTAGE STAMPS POST OFFICE. [REVERSE.] EXCHANGEABLE FOR UNITED STATES NOTES ByanyAssist Designated U. sums not l Receivable in dues to the U. States le Treasurer or edU.S. ) ^L Deposit, 'ess than ^j ^J y\\jt OC CT APPROVED, JULY 17, 1882. [OBVERSE.] 50 POSTAGE CURRENCY Furnished only by the Assistant Treasurer* and Designated Depositaries of the U. S. 50 10 io[j This U.S. Postage j appears WASHINGTON'S HEAD J design 1 five times. Ten Cents jj [U. S.jj RECEIVABLE FOR AT ANY U.S. POSTAGE STAMPS POST OFFICE. EXCHANGEABLE FOR UNITED STATES NOTES By any Assistant designated U. S. sums not less than Receivable in 50; Treasurer or Depositary in payment of all dues to the U. States less th ACT APPROVED, JULY 17, 1862. FRACTIONAL CURRENCY. 109 issue of subsidiary silver coin. The fractional paper currency was issued in five different series. The high- est amount outstanding at any one time was less than fifty millions. The amount outstanding on January 1, 1885, was $15,347,277. A considerable amount is still held by banks and bankers, which is grudgingly paid out to those customers who desire it for purposes of remittance by letter. The principal portion of the amount out- standing will probably never be presented for redemp- tion. The proportion of loss to the people from this fractional currency is vastly greater than that of any other kind of circulation ever issued in this country, and this loss, in a large measure, must be attributed to the small value of the notes and the many casualties of the war. The proportion of legal tender notes and national bank notes, of the highest amount outstanding at any one time, not presented for redemption, or lost, in the course of twenty years, is estimated at about 1% per cent. Authority was given by the second section of the act of March 3, 1863, to issue 400 millions of treasury notes, bearing interest at a rate not exceeding six per cent, in lawful money for a term not exceeding three, years, payable at periods expressed on their face, and in, denominations of not less than ten dollars. These notes were exchangeable, together with the accumulated in? terest. for treasury notes not bearing interest. They were made legal tender for their face value, excluding interest. Power was also given to the Secretary to issue 150 millions of additional greenbacks, which were to be issued only in exchange for these interest-bearing notes. Under this act, $44,520,000 notes were issued, redeem- able one year from date, and, $166j480jOOO two years 110 UNITED STATES NOTES. from date, bearing interest at 5 per cent, per annum., which were known as " one and two year notes of 1863." Authority was given by the act of June 30, 1864, for the issue of 200 millions of treasury notes in denomina- tions of not less than ten dollars, not exceeding three years, and bearing interest not exceeding 7.30 per cent. per annum, interest payable semi-annually, principal and interest to be paid in lawful money. The notes were to be a legal tender for their face value. Xo seven- thirty notes were issued under this act, but, in lieu there- of, $266,595,440 of compound interest notes were issued. The act did not authorize in terms the issue of compound interest notes, but as the interest at six per cent, com- pounded, would be considerably less than at 7.30 per cent, simple interest, their issue was not in conflict with the terms of the act. The notes were of the form shown on pages 111-112. The size of these notes was 3^ by 7|- inches. Of these notes, $177,045,770 were issued in re- demption of the one and two year five per cent, notes, and it is not probable that more than 200 millions of these notes were outstanding at any one time. Secre- tary Fessenden, in his report for December 6, 1864, thus refers to the issue of these notes : " The whole amount of national circulation, not bearing interest, ex- clusive of fractional currency, and of notes issued by national banks, is limited to four hundred millions of dollars, subject to slight occasional increase from the fifty millions held in reserve for the payment of temporary deposits. Of five per cent, interest-bearing notes there were outstanding, on the first of November last, $120,- 519,110. To a considerable extent these notes have been, and will continue to be, used as currency. Those with a? \ 11111 ^|| 2 4 ; issues and reissues under Act of 1847, 09; Treasury notes outstanding in 1860, 71 ; in 1884, 71 ; of Treasury notes issued under the Act of March 2, 1861, 79; of 7-30 notes taken by New York bankers, 93; of fraction- al currency issued, 104 ; of surplus due from States carried as una- vailable on Treasury books, 188 ; authorized under various Acts, 53. Anticipation of revenues by use of Treasury notes, 49. Antipathy to paper money, 10. Anxiety to obtain fractional cur- rency, 104. Apportionment of deposit banks among States, 182. Apportionment of surplus revenue among States, recommended by Jackson, 169; opposed by Jackson, 171 ; basis of, 180. Appropriation of public money for improvements thought unconsti- tutional, 169; required to take surplus from Treasury, 189. Approval of bills. See Acts. Arguments for and against Treasury notes in 1812, 22; in 1813, 29; in 1814-15, 31 ; in 18:)7, 41 ; in 1838, 43; in 1840, 46; in 1842, 51; of Committee of Ways and Means in 1844, against Treasury notes, 54 ; in Federal Convention, 14; in 1862, 125; in legal-tender cases, 156- 166 ; relative to distribution of sur- plus, for and against, in 1829, 171 ; in 1835, 172 ; of Jackson's oppo- nents, 175; of Benton, against, 177; for and against postponement of fourth instalment, 183-188. Arrangements with New York banks for placing 7-30 loan, 93. Attorney General Bates' opinion as to legal tender, 121. Authority to issue bills, States de prived of, 10. Authority to coin money, States de- prived of, 10. Available balance in Treasury at various dates, 171. BANKS, land, proposed by John Coleman, 1 ; defeat of land, 2 ; paper money, under auspices of Treasury, 2 ; loan of merchants of Boston, 2 ; second land, proposal by Coleman, 2 ; plan of, 3 ; oppose J by Governor Belcher, 3 ; Hutchi- son's specie, 3 ; charter of, l/y States, 11 ; power of Congress to create, to circulate bills, 11 ; Na- tional recommended, 31 ; Secord, of United States, 41 ; National, Hamilton's report on, 19 ; propo- sition to tax circulation on, 51. Banks of New York City strengthen hands of Government, 143. Banks, right to issne paper money when chartered by States, 11 ; to circulate bills when chartered by Congress, 1 1 ; bad condition of currency . of, in 1 81 5, 31 ; great increase in number of, 31 ; alleged favoritism shown to, 29 ; resump- tion of specie payments by, 43 ; negotiations and agreements with, 95 ; advances agreed to be made by, 1:6 ; National, bill for, 120 ; of deposit in 1837. 182 ; forms of let- ters sent to, directing transfer of deposits, 182 ; losses from failure to pay specie, 1 83 ; specie payments suspended by, in 1814. 31 ; in 1837, 40 ; in 1857, 10 ; amounts due Gov- ernment from insolvent, 43 ; re- sumption of specie payments by, in 1837, 43 ; use of, as depositories of Government money, 40, 172; favor- ites of the administration, 172. Bank circulation, Benton's propo- sition to tax, 51 . Bank vs. Supervisors, legal-tender case, 156. Bank of Commerce vs. New York City, 156. Banking Act, free, of New York State, 43. Banking Act, National, 120. Bates, Attorney-General, opinion INDEX. 233 as to constitutionality of legal- tender bill, 121. Bayard, Thomas F., Delaware, re- marks on legal-tender bill, 133. Belcher, Governor, Massachusetts, intrigues of paper money advocates I against, 4 ; proclamation of, 5 ; differences with Legislature, 6 ; ! forced to retire, 4 ; subsequently Governor of New Jersey, 4 ; let- ter to Hutchison, 6. Bell, John, Tennessee, opposes bill for postponement of fourth instal- ment of surplus, 187. Benton, Thos. H., Missouri, moves to ' increase denominations of Treas- ury notes, 41 ; in favor of Treas- I ury notes, 41 ; in favor of Treasury j note bill of 1838, 45 ; proposes to ! tax bank circulation, 51 ; objects generally to issue of Treasury notes, 41 : " Thirty years' view " upon Jackson's course toward ' Bank of United States, 174; made member of committee to inquire into Federal expenditure, 175; defends Jackson's administration, 176 ; opposes bill for distribution of surplus, 177; his description of Jackson's repugnance to sign bill for distribution of surplus. 178 ; remarks on use of deposits made by States, 190. Bibb, Gdo. M., Secretary of Treas-; ury, 52 ; member of committee to ; inquire inio- extent of Executive patronage, 175. Bids, for Treasury notes, 76 ; for bonds, 80. Bills, for Treasury notes 1812, 15 ; arguments for and against, 23 ; for Treasury notes 1813, 29 ; for Treasury notes 1837, 41 ; for uew issue of" Treasury notes 1838, 43 ; for Treasury notes 1840, 46 ; long debate on bill of 1840, 46 ; loan introduced by Millard Fill- more, 50 ; objections to Fillmore's loan bill, 50; Fillmore's loan, bitter debate on, 50 ; for issue and reissue of Treasury notes intro- duced 1842, 51 ; Treasury notes of 1843, 51 ; Treasury notes of 1840, 63 ; Treasury notes of 1847, 64 ; ' Treasury notes of 1857, 70 ; National Bank, 120; legal-tender, 121 ; exchequer of President Ty- ler, 53 ; for loan and issue of Treasury notes, 63 ; legal tender (see Legal tenders) for recharter of Bank of United States, 174; for distribution of surplus rev- enue, 167, 177 ; for postponement of payment of fourth instalment of surplus, 184. Bills of credit, in Federal Conven- tion, 13 ; authority of States to issue, 13; power of Congress to emit, 13 ; discussion of right to make legal tender, 14 ; Hamilton's opinion as to, 19; revolutionary, bore interest, 44 ; definition of, by Chief Justice Marshall, 44 ; argu- ment of committee of House in 1844 as to right to issue, 54-61. Blaine, James G., Maine, discusses policy of legal tender issues in ''Twenty Years in Congress," 144-147. Blake, Harrison G., Ohio, remarks on legal-tender bill, 125. Board of Supervisors of New York City claim greenbacks are not obligations of the United States, 156, 157. Bollan, Thos., agent of Province of Massachusetts in England. 7. Bonds. U. S., discount during period 1812-1815, 39; discount during 1860, 1861, 79. Bradley, Mr. Justice, of Supreme Court, separate concurring opin- ion in legal-tender case, 162. Brown. Bedford, Senator from North Carolina, in favor of Treas- ury note bill, 45. Bubble Act enacted by Parliament in 1720, 7. Buchanan, Jas., President, Treasury notes of administration of, 70; amendment to bill for postpone- ment of fourth instalment of sur- plus, 186. CABINET. Jackson's, dissent from his views, 174 ; paper read to, 174 ; changes in, 1 75. Calhoun, Jno. C., of South Carolina, in favor of Treasury note bill of 1838, 45 ; makes motion in Senate for select committee, 175. Cambreling, Churchill C., of New 234 IXDEX. York, introduces Treasury note bill, 43 ; argument of, in favor of bill, 48. Capital, of Confederate States at Montgomery, Ala., 8-J ; Washing- ton. D. C.. in danger, 83 Capital of depository banks in 1S33, Cases, legal-tender. Bank vs. Su- pervisors, 157; Hepburn w. Gris- wold, 158 ; Parker vs. Davis, 102 ; , Juilliard vx. Gree:iman, 1(55. Certificates, tour per cent., denomi- nations of, .117; convertible into four per cent, bonds, 117; unneces- sary, 117; eagerness of the people to obtain, 117. Certificates, gold, issued under act of March 3, 1863, 115 ; used for Clearing-house purposes, 114; de- nominations of, 115 ; coin and bullion deposited for, 115; issued in payment of interest on public debt. 115; terms of issue, 115; amount outstanding, 116 ; of act of July 12, 1882, 155 ; amount issued under act of July 12, 1882, 155. Certificates, legal-tender, bear no in- terest, 116; used for Clearing-house purposes, 116; payable in U. S. notes at place of issue, 116; held in reserve by national banks, 116 ; amount reduced after resumption of specie payments, 116 ; amount outstanding, 118. Certificates, loan, to be made a legal tender, 43. Certificates, silver, authorized by act of February 28, 1878, 152 ; denom- inations of, 152; coin deposited for, to remain in Treasury, 152 ; to be receivable for customs, taxes, and dues, 152; may be reissued, 152; amount outstanding, 153 ; act of July 12, 1882, makes available for reserve of national banks, and re- servable for Clearing-house bal- ances, 155 ; not a legal tender, 155. Certificates, three per cent. , author- ized, 113; excess of bank reserve invested in, 114 ; advantage for Clearing-house purposes, 114 ; amount of first issue, 114; addi- tional amount, 114 ; to be cancell- ed, 114 ; terms of redemption, 115. Chase, Salmon P., Ohio, Secretary of Treasury, 8G ; estimates in 1861, 86 ; recommends loan of one hun- dren millions in Treasury notes bearing 7-, |T per cent, interest, 8(5 ; signs circular to receive demanl notes for salary, 89 ; consults with the banks, , 2 1. Favoritism, alleged, shown to banks, 29, 42; to deposit banks, i:2, 176. Federal Constitution, original draft of, 13 ; debate on clause relative to emission of bills of credit, 1418 ; power to emit bills struck out, 16; States deprived of authority to issue bills, 13 ; comments of Mr. Justice Strong, 11; views of Daniel Webster, 11. 18 ; power of State to create banks to issue bills under, 11 ; opinion of Samuel Dexter, 12; opinion of Secretary Chase, 12. Federal Convention, when held 13 ; debate in, on power to emit bills, 14 ; motion of Gouverneur Morris, 14; Mr. Butler seconds, 14; re- marks of Mr. Madison, 14; re- marks of Mr. Gorham, 14 ; remarks of Messrs. Mason, Mercer, Ells- worth, Randolph, Wilson, Butler, Read, Langdon, 14-16; Mr. Mar- tin delegate to, 16 ; report on pro- ceedings of, by Mr. Martin. 17; vote of States, 16 ; vote of Virginia, 16. Fessenden, Wm. P., Maine, Chair- man of Finance Committee of Senate, 130 ; introduces legal-ten- der bill, 130; opens debate, 130; Secretary of the Treasury, 110 ; authorizes issue of compound in- terest instead of seven - thirty notes, 110 ; extract from report of, 110. Field, Mr. Justice, of Supreme Court of United States, concurs with Chief Justice in first legal- tender decision, 158 ; concurs in dissenting opinion of Chief J ustice in second legal-tender decision, 164 ; dissents singly to the third I legal-tender decision, 166, 210. ! Fillraore, Millard, New York, Chair- man of Committee of Ways and Means, 50 ; introduces a bill for a loan, 50; concedes that the lovin shall be for short term, 50 ; intro- duces Treasury note bills, 51 ; op- poses postponement of fouith instalment 187. First issue of colonial paper money, 1 ; of Continental paper money, y ; of Treasury notes, 25. First three instalments of surplus money, payment of, 40, 181. Fiscal operations of Government embarrassed in 1814, 32. Five-dollar demand notes issued, 89. Five Treasury note acts of period of 1812, 38. Folger, Charles J., New York, Sec- retary of Treasury, 191 ; letter of, relative to fourth instalment of surplus, 192 ; mandamus on, 192. Form of Treasury notes (see Fac- simile.) INDEX. 239 Forms used in making deposit with General sentiment in favor of Treas- States, 181 ; used in withdrawing ury notes in 1847, 64. money from depository banks, Gold and silver coin only can be 182. made a legal tender by States, 13 ; Fort Sumter, attempt to relieve, 80 ; , only legal tender until passage of attack on and surrender of, 83. ! legal-tender act in 1862, 19. Forward, Walter, Pennsylvania, Gold coin, demand notes payable in, Secretary of Treasury, 50 ; sue- j 90, 91 ; seven-thirty notes payable ceeds Mr. Ewing, 50 ; succeeded i in, 93 ; the standard after 1873, by John C. Spencer, 52. Fourth instalment of surplus, dif- ficulty in paying, 183 ; bill to post- , j 150 ; over-valued by Act of 1834 ] and took place of silver, 148. | Gorham, Nathaniel, Massachusetts, pone payment of, 184; debate on ; remarks in Federal Convention. 14. postponement of, 187, 1S8 ; post- j Gouverneur Morris, remarks in Fed- ponement of, 188 ; demand for, ! eral Convention, 14. made by Virginia and Arkansas, [ Government, Federal, operations of, 19-2 Fractional currency, necessity for, 100; Act of July 17, 1863, author- izing postal, 100 ; denominations of, 103 ; receivable in sums of 85 for dues, etc., 103 ; fac-similes of, 105-108 ; issue of, by private per- sons, corporations, etc. , prohibited, 103 ; amount of limited, 103 ; ex- changeable for United States notes in sums not less than three dollars, 104 ; people anxious to obtain, in 1814, 31 ; deprived of use of specie, 14, 33; Treasury notes based on faith of, 24 ; Treasury notes 1812-1815 receivable for dues to, 24, 29, 39 ; Treasury notes 1837 receivable for dues to, 42, 65; Treasury notes of 1857 receivable for dues to, 73 ; Treasury notes of 1861 receivable for dues to, 81; loan certificates to be receivable for dues to, 43 ; credit of, affected by political complications, 72. 104; p'aid'in sheets to army, 104; Government of Confederate States, total amount issued, 104; wore | organization of, 83. out rapidly, 104 ; replaced by sub- Governor Belcher, Massachusetts, in- sidiary silver coin, 105. j trigues of paper money advocates Funding, of legal-tender notes pro- [ against, 4 ; differences with Legis- vided for, 127, 1 36 ; of legal-tender lature, 6 ; forced to retire, 4 ; notes to cease after certain date, Governor of New Jersey, 4 ; letter 138 ; of seven-thirty notes, 98 ; .of | to Hutchison, 6. one- and two-year notes into com- j Governors of Massachusetts, opposi- pound interest notes, 110, 115 ; of j tion to paper money, 3. compound interest notes into three ' Gray, Mr. Justice, delivers opinion per cent, certificates, 113, 115 ; of 1 of court in third legal tender de- reasury notes of 1812-1815, 38. ?unds, public, difficulty in transfer- 31- cision, 193. ring' 33 ke'pt with banks, 29, 40, j HALSTED, WILLIAM, New Jersey, 182 ; kept with Bank of United j claims that deposit act was not a States, 40; changed to State banks, j contract, 187. 175 ; unavailable, 43, 78, 183; losses of, through banks, 43, 183. GALLATIN, ALBERT, Secretary of the Treasury, 21 ; first suggests issue of Treasury notes, 22; his plan for Treasury notes, 22 ; letter of, to Chairman of Ways and Means Committee, 22. General Scott, his circular to the army as to demand notes, 89. Hamilton. Alexander, report on Na- tional Bank, 19; opinion as to emission of bills of credit by Gov- ernment, 19; never suggested Treasury notes, 23. Harrison, "William H., elected Presi- dent by Whig party, 49 ; appoints Ewing Secretary of Treasury, 49 ; death of, 49; policy of administra- tion changed by death of, Hickman, John, Pennsylvania, votes 240 INDEX. for legal-tender bill as a necessity, 1*6. Hooper, Samuel, Massachusetts, pre- pares National Bank bill, 120; re- marks on legal -tender bill, 124. House of Representatives, refuses to consider resolutions to make Treasury notes a legal tender, 33 ; does not discuss proposition to make loan certificates a legal ten- der, 43; long session of, in 1840, 46 ; objects to Senate introducing money bill, 41 ; action of (see Bills and Acts). Howell Cobb, Georgia, Secretary of Treasury, 70; estimates for year 1857, 70 ; recommends Treasury notes, 70; invites proposals for loan, 72 ; recommends that public lands be pledged for payment of Treasury notes, 75. Hutchison, Edward, Massachusetts, forms specie bank, 3. Hutchison, Thomas, Massachusetts, letter to, from Governor Belcher, 6. INCREASE of public debt, from 1837 to 1841, 50 ; from 1841 to 1844, 63 ; from 1844 to 1861, 72; to August 81, 1865, 85. Independent Treasury Act, repeal of, 50. Ingham, Samuel D., Secretary of Treasury, 168 ; estimates for 'year 1829, 168 ; reports aniount applica- ble to payment of debt, 168 ; re- ports probable surplus, 168. Interest, paper money issued by States during Revolution bore, 44; on Continental money, '.) ; on Treas- ury notes of 1812, 25; on notes of 1813, 1814, and 1815, 39; small notes of 1815 bore no, 34; on notes of 1837. 42; on notes of 1838, 45 ; nominal, of one mill per cent., 46 ; on notes issued by Secretary Spen - cer, 52 ; report on, by Committee of Ways and Means, 56 ; on notes of 1846, 64 ; on notes of 1847, 69 ; on notes of 1857, 71 ; bids on notes of 1860, 76 ; on notes of 1861, 8't ; on notes of the civil war, 88, 1 CO, 110; on certificates, 114, 116, 117. Introduction of bills (see Bills). Issues, paper money, in Colonies, object of, 1 ; by means of loan banks, 2 ; by merchants of Boston, I 2 ; by Hutchison's specie bank, 3 ; opposition to, by Parliament, 3 ; ! Acts of Parliament prohibiting, 3, 7 ; depreciation of, 5 ; loss, and money inflated by, 4. Issues of paper money by Conti- nental Congress, first issue of, 9 ; depreciation of, 9 ; bought in at market value for coin, 9 ; new in place of old, 9 ; total amount of, 10; loss on, 10; antipathy to, 10. Issues of paper money from 1812 to 1815 (see Notes, Treasury, from 1812 to 1815). Issues of paper money of period of 1837 (see Notes, Treasury, of pe- riod of 1837). Issues of paper money of Mexican War (see Notes, Treasury, of Mex- ican War). Issues of paper money of Buchan- an's Administration (see Notes, Treasury, of Buchanan's Adminis- tration). Issuer, of paper money of Civil War (see Notes, Treasury,of Civil War). JACKSON, ANDREW, President of United States, 168 ; message to Congress of 1829, 168; thinks use of surplus for internal improve- ments unconstitutional, 169; ad- vises apportionment of surplus among States, 169 ; message of 1830, 170; views as to surplus, change in 1836, 171 ; causes of change in his views, 172 ; message of 1836, 173 ; attack on Bank of the United States, 174 ; declares in 18^9 against recharter of bank, 174 ; determines to receive public deposits from bank, 174 ; disa- grees with his Cabinet, 174; reads paper to Cabinet, 1 74 ; makes Taney Secretary of Treasury, 175 ; orders removal of deposits, 1 75 ; proposes method of distribution cf surplus, 1 79. Jay Cooke, services of, in placing seven-thirty loan, 99. Justice Story, comments on consti- tutionality of issue of notes by bank chartered by State, 11. Justices of Supreme Court, in 1869, 158; in 1871, 162. INDEX. 241 KELLOGG, STEPHEN W., Massachu- setts, remarks of, on legal-tender bill, 125. King, of England, issue of paper money in Colonies to be under control of, 7. LAND Bank, proposed by John Cole- man in 1715, 1 ; second, proposed in 1739, 2 ; plan of, 2 ; opposed by Governor Belcher, 3. Langdon, John, New Hampshire, remarks in Federal Convention, 16. Laws (see Acts and BillsV Legal tender, paper money prohib- ited in Colonies. 8 ; gold and silver coin, only, a, under Constitution prior to 1852, 19; proposition to make Treasury notes a, rejected, 33 ; proposition to make loan cer- tificates a, rejected, 43 ; Conti- nental Congress had no power to make paper, 117; States pass ten- der laws, 119 ; discussed in Fed- eral Convention, 14. Legal-tender Acb, bill introduced in Committee by Mr. Spaulding, 120 ; letter of Attorney-General Bates in regard to, 121 ; reported to House, 121 ; hostility of the press, 121 ; hostility of the banks, 121 ; bill submitted to the Secretary, 121 ; again reported to House with the Secretary's amendments, 121 ; passed the House, 121 ; vote on bill in House, 121 ; amendments in Senate, 122; charactar of debate, 122; Secretary Chase's letter to Committee of Ways and Means, 122 ; bill thoroughly discussed throughout the country, 124; a measure of necessity, 124 ; ex- tracts from debate in Senate, 130- 135 ; Conference Committee, 13 ; approved by President February 25, 1862, 136 ; of 1862, authorized issue of 150 millions dollars in notes, 136 ; of June 11, 1862, 138 ; of March 3, 1863, 138; policy of, discussed by Mr. Elaine, 146-147 ; Secretary McCulloch's opinion of, 139. Legal-tender decisions, Bank v. Su- pervisors, 156-157; Hepburn v. Griswold, 157-161 ; Parker v. Da- 11 vis, 161-165 ; Juilliard v. Green- man, 165, 193 ; dissenting opinions, 160, 164, 166, 210. Legal-tender notes, authorized by act of February 25, 1862, 136; bore no interest, 136 ; payable to bearer at Treasury, 136; denomina- tions not less than $5, 136 ; differed from demand notes, fundable into bonds, 136; receivable for all debts, public and private, except duties on imports, 137 ; descrip- tion of, 137 ; act of June 11, 1862, authorizes under $5, 138; whole amount authorized, 138 ; restric- tion on funding, 138 ; effect of re- striction, 138 ; highest amount outstanding, 139; retirement of under Secretary McCulloch, 140; increase under Secretaries Bout- well and Richardson, 140 ; restric- tion of amount in 1874, 140; re- tirement after 1875, 140; amount outstanding fixed in 1878, 141 ; amounts at various dates, 142 ; payment on presentation in coin, 143; certificates of deposit for (see Certificates, Legal-tender). Legal reserve of national banks, gold certificates held as, 155 ; sil- ver certificates held as, 155; cer- tificates for legal-tender notes held as, 116 ; three per cent, certificates held as, 114. Legislature of New York, action remitting taxes on U. S. securi- ties, 156. Legislatures of States accept depos- its of surplus money, 181. Letter, of Governor Belcher to Thomas Hutchison, 6 ; of Mr. Bol- lan, agent, 7; of Secretary Gd Da- tin to Committee of Ways and Means, 22 ; of Secretary Chase to Committee of Ways and Means, 122; of Secretary Chase to Mr. Spaulding, 124 ; of Secretary Spen- cer to Committee of Ways and Means, 53. Lincoln, Abraham, President of the United States. 117; signs legal- tender act, 117. Loans, temporary, of 1810, 22; of 1813, 29 ; policy of Congress as to, in 1812-15, 33 ; authorized in 1815 to fund Treasury notes, 34 ; discount 242 INDEX. on, from 1812-15, 39 ; bill for, in- troduced by Millard Fillmore, 50 ; object defeated, 50; Treasury notes a form of, 59 ; Treasury notes of Mexican War fundable into, 69; of 18BO, 72; of 1861, 79; on August 31, 1865. 85 ; temporary, 85 ; by the New York banks, 95 ; seven-thirty notes a popular, 99; for funding legal-tender notes, 117; obtained on security of Treasury notes, 25 ; to aid in resumption of specie pay- ments, 141. Loan banks, bills issued by, 2. Losses on colonial paper money, 4 ; on Continental paper money, 10; on fractional currency, 104. MADISON, JAMES, remarks on Fed- eral Convention, 14 ; note on vote of Virginia, 16. Mandamus on Secretary of Treasury by State of Virginia, 192. Marshall, Chief Justice, definition of bills of credit, 44. Martin, Luther, Maryland, delegate to Federal Convention, 16; address to Maryland Legislature, 17 (also see note on page 16). Mason, George, Virginia, remarks on Federal Convention, 14. Massachusetts, paper money issues in, 1; loan banks, 2; specie banks, 2, 3 ; governors of, oppose paper money, 3 ; makes Continental money a legal tender, 119. Maximum of public debt, 85 ; of le- gal-tender notes, 188 ; of Treasury notes prior to civil war, 52, 69, 79 ; of fractional currency, 104. McCulloch, Hugh, Secretary of the Treasury, 139 ; opinion of Legal- tender Act, 139 ; retires legal-ten- der notes, 140. Measures (see Bills and Acts). Mercer, John F. , Maryland, friendly to paper money in Federal Con- vention, 15 ; remarks of, 15. Mexico, declaration of war with, 63. Miller, Mr. Justice, dissents to first legal-tender decision, 160. Money, power of Congress to bor- row. 59, 159; borrowed on security of Treasury notes, 25 ; specie, stock diminished, 31 ; Continental, made legal tender by States, 119; colonial paper, 2; surplus of United States (see Deposit of Surplus); legal-ten- der (see Legal-tender); power of Congress to coin, 11. Morrill, Justin S. , Vermont, remarks on Legal-tender Act, 129. Morris,' Gouverneur, moves to strike out "emit bills" from draft of Constitution, 14. NATIONAL bank, Secretary Dallas recommends establishment of, 31 ; bill for, referred to committee, 2 ; bill for, vetoed by President Tyler, 53. National banks, bill for, prepared, 120 ; co-operation of, in placing seven-thirty loan, 99. National debt in 1812, 21 ; extin- guished in 1835, 170; amount of, in 1841, 50 ; "amount of, in 1860, 72 ; maximum of, in 1865, 85 ; form of, in 1865, 85. Newcomb, Prof. Simon, criticism npon Silver Commission, 151 (see also note at foot of page 151). New York City banks, action of, as to demand notes, 90 ; first seven- thirty loan negotiated by, 93; total amount of seven-thirty notes taken by, 93 ; arrangements of, for placing" seven-thirty loans, 93 ; re- port of Loan Committee of, 94 ; Secretary Chase's report in regard to action of, 95 ; loans made by, in 1861, 96. Niles, John M., Connecticut, op- poses Mr. Buchanan's amendment I to postponement bill, 186. ' Niles' Register, extract from, relative to Treasury notes of 1812, 26 ; notice of distribution of surplus sent to banks, 131. Note of Madison on vote of Virginia in the Federal Convention, 16. Notes, compound interest (see Com- j pound interest notes). i Notes, Exchequer, recommended by I President Tyler, 53. [ Notes, fractional (see Fractional ! currency). Notes, legal-tender (see Legal-ten- der notes). Notes, one- and two-year (see One- and two-year notes) . INDEX, 243 Notes, seven-thirty (see seven- thirty notes). Notes, Treasury (see Treasury notes). OBJECTIONS to issue of Treasury notes 1812-1815, 22, 29,32 ;-to issue of Treasury notes in 1837, 41, 44, 46, 53 ; of Committee on Ways and Means to spurious notes, 53 ; to legal-tender bill, 128 ; Woodbury's to distribution of surplus, 171 ;*to postponement of fourth instal- ment, 186 ; to loan bill of 1841, 50. Obligations of the United States, legal-tender notes held not to be, 150 ; legal-tender notes held to be, 157. One and two year notes of 1863, 109 ; bore interest at five per cent., 110 ; redeemed in compound interest j notes, 110. Opinion of Hamilton on authority of Government to emit paper money, 19 : of Samuel Dexter as to rightf j of States to charter banks to issue notes, 12 ; of Chief Justice Chase, 12 ; of Secretary McCulloch, as to Legal-Tender Act, 139 ; of At- 1 torney-General Bates as to legal- I tender bill, 121. Opinions of courts. (See Decisions.) Opposition of President Jackson to distribution of surplus, 171 ; to ; bill postponing payment of fourth instalment, 180 ; of newspapers and banks to legal-tender bill, 121. ! Outstanding Treasury notes, 71, 118. PAPER read by President Jackson to his cabinet, 174. Paper money of the colonies, first issued in Massachusetts, 1 ; issued in other colonies, 1 ; dates of first issues, 1 ; issued by loan banks, j 2 ; rate of interest on, 2 ; payable I in silver issued by merchants in Boston, 2; prohibited by Parlia- ment, 37 ; opposition of governors to, 3; intrigues of advocates of, 4 ; depreciation of, 4 ; terms ap- plied to, 4 ; loss and misery in- flicted by, 4 ; value in coin in dif- ferent States, 5 ; disputes about, 7 ; attitude of mother country, 7. Paper money of Revolution emit- ted by Continental Congress, 9 ; first issue of, 9; depreciation of, 9, 10; new issue bearing interest payable in coin, 9; amount lim- ited, 10 ; redeemable in coin at market value, 9; ceases to circu- late, 10 ; loss through, 10 ; made a legal-tender in certain States, 119 ; issued by States, 10. Paper money under constitution, power of States to emit, taken away, 10, 13; power of States to charter banks to issue, doubted, 11, 12 ; discussion on, in Federal con- ventions (see also Notes). Paris, Silver Commission meets at, Parker v. Davis, legal-tender case, 161. Parliament, acts of, in reference to paper money. 7. Pay of signers of Treasury notes, 25. Payment of fourth instalment of sur- plus postponed, 188. Payment, specie, suspended in 1814, 31; suspended in 1837, 40; re- sumption of, in 1838, 43 ; suspen- sion of, in 1857, 70 ; suspension of, in 1861, 84 ; resumption of, on January 1, 1879, 141. Peace, treaty of, with England, 34. Pelatiah Webster recites evils of Colonial paper money, 4. Pendleton, George H., Ohio, remarks of, on legal-tender bill, 128. People, seven-thirty loans taken by the, 98 ; anxiety of, to obtain frac- tional currency, 104 ; anxiety of, to obtain four per cent, certificates, 117. Pickens, Francis W. , South Carolina, on postponement of fourth instal- ment of surplus, 138. Plan for Treasury notes, Secretary Gallatins, 21; Secretary Dallas', 33. Plans of States to use surplus depos- ited, 190. Postage stamps used for change. 100. Postal currency (see fractional cur- rency). Postmaster-General's report on use of postage stamps for change, ICO. Postponement of fourth instalment, rendered necessary by financial pressure, 182; extra session of 244 INDEX. Congress called to consider, 183 ; President Van Buren on, 183 ; bill for, introduced by Silas Wright, 184 ; long debate on. in House and Senate, 184, 187 ; bill for, amended, 187 ; bill for, passed, 188. Power of Executive, select commit- tee to inquire into, 175. Prejudices against Treasury notes, 22. Premium, on small Treasury notes of 1815, 37 ; on Treasury notes of 1837, 45; on 5 per cent. U. S. stock, 72 ; on demand notes, 93 ; on gold, 97, 100; on four per cent, bonds, 117. Preparations of Secretary Woodbnry for distribution of surplus money, 181, 182. Presidents, Jackson, 168,170, 172; Harrison, 49 ; Tyler, 53 ; Van Buren, 183 ; Lincoln, 117 ; Hayes, 150. Preston, William C., South Caro- lina, opposed to Treasury note bill of 1838, 45 ; opposes postpone- ment of fourth amendment, 186. Proclamation of Governor Belcher, 5. Provincial Governors, trouble with their Legislatures, 3. Public advertisement for bids for Treasury notes, 71, 76 ; for loans, Public debt (see National debt). Public lands, distribution of revenue from, 175 ; distribution of, 175. QUOTATIONS of coin valueof Colonial paper money, 5 ; of bids for Treas- ury notes in 1861, 76; of bonds, notes and gold for 1862, 1863, 1864, Quotations from Governor Belcher's proclamation, 5 ; from Chief Jus- tice Story, 11; from Secretary Chase, reports and letters, 12, 86, 95, 12, 124; from Daniel Webster, 18; from debate in Federal Con- vention, 14 ; from Luther Martin, 16 ; from Niles' Register, 26 ; from Secretary Dallas, 31 ; from report of Committee on Ways and Means, in Spencer's notes, 5, 3; from Secretary Dix, 77, 189 ; from General Scott's circular, 91 ; from report of associated banks, 94 ; from Secretary McCulloch, 98, 139; from Postmaster -General's report, 100 ; from debate on legal- tender bill, 124-135; from James G. Elaine, 144-147; from Prof essor Newcomb, 151 ; from legal-tender decisions, 157, 162 ; from Presi- dent Jackson, 168, 170,174; from Secretary Woodbury, 171 ; from Thomas H. Benton, 190. RANDOLPH, EDMUND, Virginia, re- marks in Federal Convention, 15. Rates of interest (see Interest). Read, remarks in Federal Conven- tion, 16. Reasons for failure of loan bill of 1841, 50. Rebellion, war of, inaugurated, 83. Rebellious demonstrations among colonists, 6. Receipts, from sale of public lands, 171 ; from loans, 1812-1815, 39. Re-charter of Bank of U. S. op- posed by President Jackson, 174; bill for, passes both Houses, 174 ; bill for, vetoed, 174; made an issue in campaign of 1832, 174. Refusal of Whigs to vote on Treasury note bill in 1840, 96. Register of Treasury, notes first signed by, 42. Reissues of Treasury notes (see Treasury notes). Removal of deposits from Bank of U. S., 175. Report of Hamilton on a National bank, 19; of Secretary Dallas in 1814, 32 ; of Mr. Eppes, 32 ; of Secretary Dallas in 1815, 37; of Secretary Woodbury in 1839, 45 ; of Secretary Woodbury in 1840, 49 ; of Secretary Ewing in 1841, 49 ; of Committee of Ways and Means on Spencer's notes, 54 ; of Secretary Cobb in 1857, 70; of Secretary Cobb in 1860, 72; of Secretary Chase, for year 1861, 86, 95 ; of loan committee of associated banks of New York City, 94 ; of Secretary McCulloch for 1865, 98 ; of Postmaster-General in 1862, 100 ; of Deputy Comptroller of Currency in 1870, 100; of Paris silver commission, 151 ; of Secre- INDEX. 245 taries Crawford, Rush, and sue- ' cessors, 167 ; of Secretary Ingham I in 1829, 168. Reserve, National Bank (see Na- tional Bank Reserve). Resolution of Continental Con- gress recommending that States ; make paper issues legal tender, 117 ; of associated banks in New ] York City, 90 ; making Treasury notes a legal tender, 33. Resumption of specie, payments, in 1838, 43; on January 1, 1879, 141 ; act of 1875 requiring, 141 . 1864, authorizing second issue, 97 ; act of March 3, 1805, authorizing third issue, 97 ; denominations of, 98 ; last two issues fundable into bonds, 98; a popular loan, 98 ; services by Jay Cooke in negotiating, 99 ; co-operation of national banks, 99 ; form of, 100 ; reverse described, 99. Sherman, John, Secretary of Treas- ury, favors legal tender clause. 132; votes in favor, 135 ; member of Conference Com., 130 ; sells bonds to prepare for resumption, 141 ; Revenues from public lands, distri- confidence of note holders in. 143. bution of, 175; surplus (see Stir- Signers of Treasury notes, pay of , 25. plus Revenues) ; deposited with Silver certificates authorized, 152 ; State banks, 40, 182. Revenues for 1837, 41 ; expenditures exceed, from 1837 to 1841, 49. Richardson, Secretary, increase of \ legal-tender notes under adminis- tration of, 140. Rush, Richard, Secretary of Treas- ury, 167. SCOTT, GENERAL, issues circular denominations of, 152 ; coin depos- ited for, to be returned in Treasury, 152 ; amount outstanding, 153 ; not a legal-tender, 155 ; count as reserve of national banks, 155; receivable for Clearing-house bal- ances, 155, receivable tor customs, taxes, and all public dues, 152 ; dangerous substitute for money, 154. Silver coinage, acts regulating, 148, 149, 152. about demand notes to army. Secession of Southern States, 83. Secretaries of the Treasury, Hamil- I Silver commission, report of, criti- ton, 19 ; Gallatin, 22 ; Dallas, 31 ; ! cised, 151. Crawford, 31, 107 ; Rush, 167 ; ! Silver dollar, authorized by act of Ingham, 168; Duane, 175; Taney, ! April, 1792, 148; coinage discon- 175 ; Woodbury, 41, 42, 45, 49, 171, 180 ; Spencer, 52 ; Ewing, 49; Forward, 52; Bibb, 52; Cobb, - 70 75 Dix, 76, 77 ; Chase, 80, 95, amount outstanding, 122; Fessenden, 110; Walker, 63; ! continued coinage, 153. McCulloch, 98, 139; Richard- Small Treasury notes of 1815, descrip- son, 140 ; Sherman, 141 ; Folger, tion of, 34. 192. | Spaulding, E. G., New York, brings Secretary of the Treasury author- ! legal-tender bill before Committee ized to borrow money on security of Treasury notes, 25. tinned by act of 1873, 150; revived by act of 1878, 152 ; weight of, 150 ; amount coined per month, 150: mtstanding, 153 ; effect of Series of fractional currency, 103, 104 ; of seven-thirty notes, 93, 97 ; of colonial currency, 4 ; of Conti- nental currency, 9. Seven -thirty notes, first issue au- thorized by acts of July 17, and August 5, 1861, 89; suggested by Gailatin, 88; interest on first is- of Ways and Means, 120 ; intro- duces bill in House, 124 ; letter of Secretary Chase to, 124; extract from speech of, on legal-tender Special session of Congress, in 1837, 183; in 1861,84. Specie, difficulty to procure. 31 ; de- mand notes payable in, 53 ; legal- tenders payable in, after January 1, 1879, 141 ; first instalment of sue paid in sold, 93 ; ftmdable 1, 1879, 141 ; first insta into bonds 93 ; negotiation of , surplus paid to States in, 1 first loan 'on, with New York Specie bank, Hutchison's 3. banks, 93, 96 ; act of June 30, Specie payments suspended in 1814, 246 INDEX. 31 ; suspended in 1837, 40 ; resmnp- , tion of, in 1838, 43 ; suspension of, j in 1857, 70 ; suspension of, in 1861, 84 ; resumption of, by United , States on January 1, 1879, 141 ; ] all but six deposit banks suspend, I 183. Spencer, JohnC., Secretary of Treas- ury. 52 ; issues Treasury notes at j nominal interest payable on de- ' mand, 52 ; his notes investigated , by Committee of Ways and Means, j 63. State banks, public funds deposited with, 40 ; act regulating deposit of lawful money with, 40, 178 ; de- ! prived of deposits by distribution of surplus, 181 ; forms of drafts on, 182. States recommended to make Con- tinental money legal-tender, 119; ; paper money issued by, during llevolution, 10 ; deprived of au- thority to issue paper money, 13 ; right to charter banks to issue ! notes, 11 ; lack of authority to coin money, 11 ; deposit of surplus [ with, 181 ; table showing appor- i tionment among, 180 ; to give au- thority to Treasurers to receive de- posit of surplus, 180 ; laws of, rela- tive to deposit of surplus. 181 ; | use of depo_sits by, 190 ; amounts deposited with, carriad on Treas- i ury books as unavailable funds, j 190 ; public works undertaken by, 186 ; power to borrow money, 59. States, Southern, secession of, 83. Stevens, Thaddeus, Pennsylvania, i close debate on legal-tender bill, j 126 ; extract from speech on legal- tender bill, 126. Story, Mr. Justice, comments on power of States to charter banks , to issue notes, 11. Sumter, Fort, effect of attack on, 83. Supreme Court decisions in legal-ten- der cases (see Decisions and Dis- senting Opinions). Surplus revenues, estimates from 1816 to 1829, 167, 168 ; proposition to distribute among the States, 169; Mr. Dickerson ? s proposition in 1827, 167 ; estimate of amount on January 1, 1636, 171 ; views of President Jackson as to disposi- tion of, 171-176 ; report of select committee on, 175 ; bill to deposit with States, 178; apportionment among States, 180 Xsee Deposit of Surplus with States). Swayne. Mr. Justice, concurs in dissenting opinion in first legal- tender case, 160. TALMADGE, NATHANIEL P., New York, in favor of Treasury notes, 45. Taney, Roger P., Secretary of Treasury, 175 ; issues orders for removal of deposits, 175. Tar iff of 1842, 63. Taxation, reduction of remedy for surplus, 173. Tender (see Legal Tender). Three per cent, certificates (see Certificates). Three-sixty-five notes proposed, 88. Treasuries of colonies, issue of paper money by, 1, 2. Treasury rotes of 1812-1815 author- ized, 25, 29, 30, 33 ; signed by per- sons designated by President, 25 ; countersigned by" Commissioners of Loans, 25 ; money borrowed upon security of, 26 ; receivable for dues, duties, etc., 26 ; Niles' register upon, 26 ; small notes of 1815, 34; denominations of, 26, 30, 38 ; interest on, 39 ; penalties for counterfeiting, 26. Treasury notes of period of 1837 au- thorized, 42, 45, 46, 51 ; signed by Treasurer, 42 ; countersigned by Register, 42; receivable for all debts due Government, 42 ; inter- est on, 42, 45, 52 ; denominations of, 41, 52 ; payable one and two years after date, 51 ; outstanding, 52. Treasury notes issued by John C. Spencer, 52, 54, 60. Treasury notes of Mexican War, authorized, 63, 64 ; signed by Treasurer and Register, 64 ; other features of, 64; amounts issued, 64, 69 ; denominations of, 64, 69. Treasury notes of Buchanan Admin- istration, recommended by Sec- retary Cobb, 70; authorized, 70; features of law authorizing, 71 ; INDEX. 247 offered to lowest interest bidder, 71 ; amount issued, 71 ; denomina- tions of, 71 ; act of December, 1860, 75 ; operations of Secretary Dix, 76. Treasury notes of Civil War (see Seven-thirty notes, Compound in- terest notes. One- and two-year notes, and Notes). Treasury notes, outstanding in 1884, 71, 118; forms of, 35, 36, 47, 65, 67, 73, 81, 91, 100, 105-108, 111- 112, 137, end of text ; no legal- tender until 1861, 117; depreciation of, 33, 38, 44, 76, 77 ; premium on, 37, 45. Tyler, John, President, 53 ; vetoes "bill to create a National Bank, 53 ; recommends bill for Exchequer notes, 53. UNDERSTANDIXO of Treasury with banks in 1862, 95. United States, Bank of, question of recharter, 174; Jackson's attack on, 174 ; veto of recharter bill, 173 ; removal of deposits, 175 ; charter expires, 40. United States notes (see Treasury notes, and Notes). Use of postage stamps for change, 100. United States Supreme Court (see Courts). VALLANDIGHAM, C. L., Ohio, op- poses legal-tender bill, 129. Van Buren, Martin, President of the United States, 183 ; calls extra session of Congress, 183. Veto of bill rechartering Bank of United States, 174; of bill for National Bank by President Tyler, 53; of act for coinage of silver dollar by President Hayes, 150. Vote of States in Federal Conven- tion, 16; on first Treasury note bill in House, 25; in House and Senate on second Treasury note bill, 29 ; on Treasury note bill of 1837 in House and Senate, 41, 42 ; on Treasury note bill of 1838 in House and Senate, 45 ; on Treas- ury note bill of 1840 in House, 46 ; on legal-tender bill, 135 ; on coinage act of 1873, 150; on de- posits of surplus with the States, 178 ; on postponement of fourth instalment, 187 WAR declared with England, 22; declared with Mexico, 63; Jack- son's, with Bank of United States, 174 ; Civil, inaugurated, 83. War measure, issue of Treasury and legal-tender notes a, 22, 64, i24. Ways and Means Committee (see Committee of Ways and Means). Webster, Daniel, views on right of State to charter bank to issue notes; 11 ; on legal-tender under Constitution, 18. Webster, Petaliah, views as to evils of paper money in Colonies, 4. Whig party, opposition to Treas- ury notes, 44, 49; support a loan bill, 50. Whigs refused to vote in House in 1840, 46. Wilson James, Pennsylvania, op- posed to paper money in Federal Convention, 15. Wise, Henry A., Virginia, favors paying fourth instalment, 187. Withdrawal of deposits from Bank of the United States, 175 ; from de- posit banks, 181 ; from States. 190. Woodbury, Levi, Secretary of Treas- ury, 41 ; recommends Treasury notes, 41 ; reports amount of Treasury notes outstanding, 46; disapproves of distribution of surplus among the States, 171 ; method of distribution of surplus, 181. Wright, Silas, Massachusetts, Chair- man Senate Finance Committee, 184 ; reports bill for postponement of fourth instalment, 148, CATALOGUE NEW AND RECENT BOOKS PUBLISHED BY MR. T. FISHIER UN.WIN. Xondon : 26, PATERNOSTER SQUARE. New Work by the iate Editor of " THE EXPOSITOR." "EXPOSITIONS; REV. SAMUEL COX, D.D., Author of "Balaam, an Exposition and a Study," " A Commentary on the Book of Job," 1 ' " Salvator Mundi," &c. Contents. 1. The Purchase of Opportunities. ] 2. The Sanitary Order of the Moral j World. 3. The Divine Root of the Human Pedigree. 4. The Children of Wrath. 5. Abraham. 6. Religion and Reward. 7. The City of the Soul. 8. Nor any other Creation. 9. The Law of Retribution. I0 ' 1 The Prayer of the Remnant. 12. Forgiveness not Impunity. 13. Dives and Lazarus. 14. The Transfiguration. 15. Faith, a Condition of Miracles. 1 6. Faith and Unfaith, the Two Marvels which astonished Christ. 17. The Righteousness .which is by Faith. 18. Faith, a Condition of Pleasing God. 19. The Scope of Prayer. 20. The Sin unto Death. 21. Child of the Devil or Child of God. 22. The Mission of Christ. 23. Destruction from the Face of the Lord. 24. The Son of Man the Saviour of the Lost. 25. The Sin of Iscariot. 26. The Repentance of Iscariot. 27. Fear cast out by Love. 28. Spiritual Husbandry. 29. The Sterner Parables. 30. The Moral of the Barren Fig Tree. Demy 8vo., Cloth, about 500 pages, 7/6. This Volume of original Expository Discourses is IKKV being rapidly passed through the Press. It is expected to le ready the first week in April, and will provide a valuable addition to the Biblical Student's March 31, 1885. CATALOGUE OF MR. T. FISHER UNWIN'S PUBLICATIONS, FRANCE AND TONGKING : A Narrative * '. of the Occupation and Campaign in Further India, 1884. By JAMES GEORGE SCOTT (SHWAY YOE), Author of "The Burman : His Life and Notions." With Map and Two Plans. Demy 8vo., cloth [Ready 0160 "Mr. James George Scott, who has acted as special corres- pondent for several journals in the far East, has written a work on the French campaign in Tonquin, which will be published very soon. Mr. Scott is still with the French army in that country." At/ienesum, Jan. 13, 1885. THE TRUE STORY OF THE FRENCH DISPUTE IN MADAGASCAR. By Captain S. PASFIELD OLIVER, F.S.A., F.R.G.S., &c., late Royal Artillery, Author of " Madagascar and the Malagasy," c. With a Chapter by F.W. CHESSON, Hon. Secretary of the Malagasy Committee. With a Map. Demy 8vo. ... ... ... ...[Ready 090 " It will contain a review of the most interesting events in the early relations of France with the great African island, and an account drawn from official documents of the quarrel which has led to the present hostilities. It will be illustrated by a map which will show the principal places occupied or bombarded by the French. Captain Oliver, who has twice visited the island, was presented with the Star of Madagascar by Radama II., but this Order is no longer given to Foreigners." Daily News, Jan. 16, 1885. TO CANADA WITH THE EMI- GRANTS. By J. EWING RITCHIE (CHRISTOPHER CRAYON), Author of " East Anglia," " British Senators," &c. Eight Illustrations. Cr. 8vo. [Ready 076 THE ART OF WAR IN THE MIDDLE AGES, A.D. 378-1515. Being the Lothian Prize Essay for 1884. By C. W. C. OMAN, B.A., Fellow of All Souls College, Oxford. \Vith Maps and Plans. Crown 8 vo., cloth [Just Out o 3 6 " An interesting book." Saturday Review. " All soldiers should read it, and no student of history but will find it useful." United Service Gazette. Mr. T. Fisher Unwin, 26, Paternoster Square. CHARLES DICKENS AS I KNEW HIM : The Story of the Reading Tours in Great Britain and America (1866-1870). By GEORGE DOLBY. Third Thousand. Crown 8vo o 6 " Is pleasant and unpretentious . . . His account of his experiences is interesting in a very high degree. It will be wel- come to all lovers of Dickens for Dickens' sake." At/iena'itm. " Will certainly be read with interest by all who admiie the great writer . . . The book will be welcomed by all who are eager to learn everything relating to one who has left behind so deep an impression on the heirts of mankind." Daily Telegraph. " He has told his story in the most effective manner, accom- panying a plain and clear narrative with abundant touches of the peculiar humour which no friend of Dickens should be without." Daily News. " George Dolby knew the ' Chief full well, And as he knew him drew him ; So read the tale he has to tell ' Charles Dickens as I Knew Him.' " Punch. " The book is one which will well repay reading. ... A book which gives us so many pleasant pictures of one of the most interesting figures in modern literature." Saturday Revieiu. UNITED STATES NOTES : A History of the various Issues of Paper Money by the Government of the United States, and of the dis- tribution of the Surplus in 1837. With Appendix on the Legal Tender Question. By JOHN JAY KNOX, late Comptroller of the Currency. With Photo- Lithographic Specimens, and Forms of the various Notes. Crown 8vo., cloth {Nearly Ready o 12 ' ' A very minute historical sketch of the treasury and other notes issued by the Government. . . . The book should be carefully studied by those who would understand the subject." New York Herald. "The book has solid merits, and will be found highly service- able by students of our financial history. It would be difficult to name any other work in which the currency operations of the Treasury and the proceedings of Congress in relation thereto are so minutely and impartially described." The Nation (New York). THE AMBASSADORS OF COMMERCE. By A. P. ALLEN, An Old Traveller. With Six Illustrations. Crown 8vo., cloth ^Nearly Ready 036 New and Recent Books. AN ARTISTIC GIFT-BOOK. ON TUSCAN HILLS AND VENE- TIAN WATERS. By LlNDA VlLLARl, Author of " Camilla's Girlhood," " In Change Unchanged," " In the Golden Shell," &c. With Ten Illustrations by Mrs. ARTHUR LEMON. Square Imp. i6mo. ... o 7 6 ' ' Her style is easy and pleasant, and ever and again her remarks are happy. . . . Very delightful is the account of the Abetone. " Literary World. " Next to the privilege of visiting these localities, this book is the best thing, and no expense has been spared in making the volume an artistic success." Bookseller. FAIRY TALES FROM BRENTANO. Told in English by KATE FREILIGRATH KROEKER. Pictured by F. CARRUTHERS GOULD. Twenty-two Illustrations. Square Imp. i6mo. ... ... ... o 5 o "The extravagance of invention displayed in his tales will render them welcome in the nursery. The translation, not an ensy task, has been very cleverly accomplished. " The Academy. "The illustrations are delicately executed, and "the binding is one no-child, who is a child, could look upon without delight." Whitehall Keview. " An admirable translator in Madame Kroeker, and an inimi- table illustrator in Mr. Carruthers Gould. . . . The stories deserve both the German and the English poet's encomium, and the illus- trations are simply irresistible." Truth. THE POISON TREE : A Tale of Hindu Life in Bengal. By BANKIM CHANDRA CHATTER- JEE. Translated by M. S. KNIGHT. Introduction by EDWIN ARNOLD, M. A., C.S.I. Crown 8vo. ... o 6 o " I am glad to recommend this translation to English readers as a work which, apart from its charm in incident and narrative, will certainly give them just, if not complete, ideas of the ways of life of their fellow-subjects in Berfgal. '--Extract from Preface. " The healthiness and purity of tone throughout the book. . . . In reviewing novels, it is seldom that we regret very seriously the limitations of our space ; but we are genuinely sorry that we cannot speak at greater length of a book which presents so many points of interest." Academy. "Admirably translated into English by Mrs. Knight." ScofSman. THE WRECKERS OF LAVERNOCK. By ANNIE JENKYNS. Crown 8vo o 5 o " In delineation of character the authoress is extremely clever. "Schoolmaster. Mr. T. Fisher Unwin, 26, Paternoster Square. A SMALLER BIBLIA PAUPERUM, conteynynge Thyrtie and Eyghte Wodecuttes Illvstratynge the Lyfe, Parablis, and Miraclis off Oure Blessid Lorde and Savioure Jhesus Crist, with the Propre Descrypciouns theroff extracted fro the Originall Texte off lOHN WICLIF, somtyme Rector of Luttenvorth. With Preface by the late VerieRev. ARTHUR PENRHYN STANLEY, D.D., Dean of Westminster. Square 8vo. Bound in Parchment, old style ; brass clasps ... ... o 10 A very interesting volume, elegantly bound in a cover copied from an old book in the British Museum." Bibliographer. ' ' The illustrations are grotesque and quaint specimens of early art, and the whole book with its mysterious history, and its evident function as an instructor of the illiterate, is extremely suggestive and interesting. "Literary World. THE ART GIFT-BOOK OF THE SEASON. THE S'EVEN AGES OF MAN. From Shakespeare's "As You Like It." ARTISTS' EDI- TION. Illustrated with Seven Photogravures from Original Paintings by the most eminent American Artists. List of Illustrations : The Infant, by F. S. CHURCH ; The Schoolboy, by WILLIAM ST. JOHN HARPER ; The Lover, by THOS. HOVENDEN ; The Soldier, by GILBERT GAUL ; The Justice, by A. B. FROST ; The Lean and Slippered Pantaloon, by W. F. SMEDLEY ; Second Childishness, by WALTER SHIRLAW. Large 410., elegantly bound, bevelled boards, gilt edges ... ... ... ...oro 6 POPULAR EDITION of the above, Illustrated with Woodcuts by the following eminent Engra- vers : E. HEINEMANN, HENRY WOLF. C. H. REED, FRANK FRENCH, GEO. P. WILLIAMS and FRED. JUENGLING. Square pott i6mo., cloth elegant, bevelled boards, gilt edges o 5 o " The comparison is interesting and instructive throughout, and justifies this lengthened notice of two very pretty books." Satur- day Review. "It is simple justice to say that as a gift -book the volume will be prized for its beauty as a production of somewhat ambitious designs. " Scotsman. ' ' Strongly contrast the old and new style of engraving. . , The various artists have all been well-chosen." Graphic. New and Recent Books. LIFE AND WORK IN BENARES and KUMAON, 1839-77. By JAMES KENNEDY, M.A., Author of " Christianity and the Religions of India." Introduction by Sir WILLIAM MuiR, K.C.S.L, LL.D., D.C.L., Late Lieut-Governor, N.W.P. Eleven Illustrations. Crown 8vo., cloth 060 "Of what he saw and did he writes agreeebly, without obtruding the autobiographical form. . . . The volume is better worth reading than others of much higher literary pretensions." Academy. THE UNKNOWN GOD, and other Sermons. Preached in St. Peter's, Vere Street, by the Rev. ALEXANDER H. CRAUFURD, M.A., formerly Exhibitioner of Oriel College, Oxford, Author of " Seeking for Light.'' Crown 8vo., cloth [Ready 060 THE REALITY OF FAITH. By the Rev. NEWMAN SMYTH, D.D., Author of " Old Faiths in New Light," " The Religious Feeling," " The Orthodox Theology of To-day." Thirdand cheaper Edition. Crown 8 vo., cloth... ... ... ... o 4 6 "They are fresh and beautiful expositions of those deep things, those foundation truths, which underlie Christian faith and spiritual life in all their varied manifestations. . . . We thank the publisher for bringing out these singularly suggestive and instructive discourses in so good a iorm."C/iristian Age. THE QUESTION OF QUESTIONS: Is Christ indeed the Saviour of the World? By THOS. ALLIN. Crown 8vo o 5 " We cannot but accord it a hearty welcome. . . . Care- fully and vigorously worked out. . . . We commend Mr. Allin's careful and eloquent statement." Church Reformer. " Mr. Allin's book will have a welcome from those who desire \\ise and simple guidance in their study of this important ques- tion." Literary World. PAYING THE PASTOR, Unscriptural and Traditional. By JAMES BEATY, D.C.L., O.C., Member of the Canadian Legislature. Crown 8vo. o 6 "Is well got,ijp,. and in every respect calculated to repay careful perusal. . . . We recommend it as greatly helpful in mastering New Testament doctrine on this important and practical question. ' 'Ecclesiastical Observer. " Skilfully put." Presbyterian. Mr. T. Fisher Unwin, 26, Paternoster Square. EUPHORION : Studies of the Antique and the Mediaeval in the Renaissance. By VERNON LEE, Author of " Ottilie," &c. In 2 vols. Demy 8 vo., cloth extra i i " The book is bold, extensive in scope, and replete with well- defined and unhackneyed ideas, clear impressions, and vigorous and persuasive modes of writing. . . . Large questions have been scrutinized in a comprehensive spirit, and are treated with both breadth and minuteness, according to the scale of the work. This will be apparent from a list of articles in the two volumes. After an introduction comes 'The Sacrifice,' 'The Italy of the Elizabethan Dramatists,' ' The Outdoor Poetry,' and ' Symmetria Prisca.' . . . 'The Portrait Art,' 'The School of Boiardo.' . . . lastly comes the longest essay of all, ' Mediaeval Love,' filling nearly one hundred pages. This is certainly a masterly per- formance, going over a wide field, and showing at every stage Abundant discrimination." Athenceum. " It is a distinct advance on Vernon Lee's previous work. The impressions it records are as vividly individual as ever, the know- ledge which informs it is fuller and riper. It deals with a period incomparably more interesting than the ' teacup times of hood and hoop, ' through whose mazes her first work led us so plea- santly ; and it has more unity and continuity than ' Belcaro.' Its title is most happily chosen, since the studies all converge upon that mystic union of the mediaeval Faust with the Helen of antiquity from which the Renaissance sprang." Pall Mall Gazette. " Every page of ' Euphorion ' give evidence of immense read- ing in Renaissance and in mediaeval literature, and the author possesses the sure instinct so needful in a student of old books, which leads her to the passages where intellectual 'booty is to be found. . . . Deserves a most cordial welcome as a fresh and original contribution to the history of civilization and art; written in graceful and often eloquent English." Spectator. THE AMAZON : An Art Novel.. By CARL VOSMAER. With Preface by Professor GEORGE EBERS, and Frontispiece drawn specially by L. ALMA TADEMA, R. A. Crown 8vo., cloth o 6 o " It is a delineation of inner life by the hand of a master. It belongs to the school of Corinne, but is healthier and nobler, and in its thought and style fully equal to Madame de Stael's famous work. We do not wonder at the European recognition of its great merits." British. Quarterly Review. " Throughout the book there is a fine air of taste, reminding one a little of Longfellow's ' Hyperion.' " The World. " It is a work full of deep, suggestive thought. M. Vosmacr, in writing it. has added another testimony to his artistic greatness ind depth."- Tile Academy. New and Recent Books. ARMINIUS VAMBERY; His Life and Adventures. Written by himself. With Portrait and 14 Illustrations. Fourth and Popular Edition. Square Imperial i6mo., cloth extra o 6 o "A most fascinating work, full of interesting and curious experiences. " Contemporary Review. " It is partly an autobiographic sjcetch of character, partly an account of a singularly daring and successful adventure in the exploration of a practically unknown country. In both aspects it deserves to be spoken of as a work of great interest and of considerable merit." Saturday Review. " This remarkable book is partly an autobiographical sketch of character, partly a record of a singularly bold and successful attempt to explore a country which at the time when Professor Vambery undertook his journey was practically terra incognita. . . . Professor Vambery's Autobiography is omnium conscnsu a work of very great interest and merit." Life. " We can follow M. Vambery's footsteps in Asia with pride and pleasure; we welcome every word he has to tell us about the ethnography and the languages of the East." Academy. "Professor Vambery, of Pest, has just published a book in England that tells the story of his life ; a book that forms, under every aspect, most agreeable reading. It is not only a deeply interesting account of his adventurous career, but it is also written in a light and attractive manner, so that the reader's attention does not flag for a moment." Die Gegenioart. " The character and temperament of the writer come out well in his quaint and vigorous style. . . . The expressions, too, in English, of modes of thought and reflections cast in a different mould from our own gives additional piquancy to the composi- tion, and, indeed, almost seems to bring out unexpected capacities in the language." Athenaum. "There is something in his travels which reminds us of the wanderings of Oliver Goldsmith. . . . The English public will rind their interest in him increased rather than diminished by this graphic account of his life and adventures." British Quarterly Review. "Has all the fascination of a lively romance. It is the con- fession of an uncommon man ; an intensely clever, extraordinarily energetic egotist, well-informed, persuaded that he is in the right and impatient of contradiction." Daily Telegraph. " The work is written in a most captivating manner, and illus- trates the qualities that should be possessed by the explorer.'' Novoe Vremya, Moscow. " We are glad to see a popular edition of a book, which, how- ever it be regarded, must be pronounced unique. The writer, the adventures, and the style are all extraordinary the last not the least of the three. It is flowing and natural a far better style than is written by the majority of English travellers." St. James's Gazette. ** Over Eighty other English and Foreign periodicals have reviewed this work. Mr. T. Fisher Unwin, 26, Paternoster Square. THE EPIC OF KINGS. Stories retold from the Persian Poet Firdusi. By HELEN ZIMMERN, Author of " Stories in Precious Stones/' "Life of Lessing, 1 ' &c. With Etchings by L. ALMA TADEMA, R.A., and Prefatory Poem by E. W. GOSSE. Popular Edition, Crown 8vo., cloth extra 076 "Charming from beginning to end. . . . Miss Zimrr.ern deserves all credit for her courage in attempting the task, and for her marvellous success in carrying it out. . . . Miss Zimmern has indeed mastered a pure simple English which fits the anti- quity of her subject, and the stories are told in a manner which must provoke the envy and admiration of all who have attempted this singularly difficult style of composition. " Saturday Revino. Also an Edition de luxe, on Dutch Hand-made Paper, Super Roy. Quarto, limited to 200 copies. Artist's Proofs on Japanese Paper, signed and numbered, bound in Parchment extra 3 3 o Later Impressions, limited to 300 copies, on English Super Roy. 4to., the Etchings on India Paper, unsigned, bound in Cloth extra ... ... 2 2 o %* A limited number of these editions may still be had. GLADYS FANE : The Story of Two Lives. By T. WEMYSS REID. Fourth and popular edition. In i vol. Crown 8vo., cloth extra o " 'Gladys Fane ' is a good and clever book, which few readers who begin it are likely to put down unfinished." Saturday Review. "The author of the delightful monograph on 'Charlotte Bronte ' has given us in these volumes a story as beautiful as life and as sad as death. . . . We could not ' wear in our heart's core 1 the man who could read aloud with unfaltering voice and tindimmed eyes the last pages of this prose story, which is almost a poem, and which 'Dallies with the innocence of love Like the old age.' " Standard. " Mr.T.Wemyss Reid, the talented editor of the Leeds Mercitn', has in ' Gladys Fane ' developed wonderful power as a writer of fiction. 'Gladys Fane ' is no ordinary tale; the conventionalities of the present-day novel writer are not observed, but Mr. Reid gives us what should be the aim of all who produce light literature, something novel." Guardian. " She is thoroughly original ; her portrait is carefully finished ; and it may safely be said that if Mr. Reid has a few more char- acters like this in reserve, his success as a novelist is assured. . . . I lisa sound piece of work, and, above all, it is very enjoyable reading." Academy. New and Recent Books. SUMMER: From the Journal of HENRY D. THOREAU. Edited by H. G. O. BLAKE. With an Index. Map. Crown 8vo., cloth, 382 pp. ... o 7 6 This volume will contain passages selected from Thoreau's Journals, comprising his observations and reflections during the .summers of many years. Some of these are descriptive, with that fine photographic accuracy which marks Thoreau's pictures of natural scenes. Other passages contain those subtle reflections on society, religion, laws, literature, which also characterize whatever Thoreau wrote, and which pique the curiosity and stimulate the minds of his readers. The book has a full index. Thoreau himself seems to have contemplated a work of this kind, for in his Journal he writes of "A book of the seasons, each page of which should be written in its own season and out- of-doors, or in its own locality, wherever it may be." HENRY IRVING : in England and America, 1838-1884. By FREDERIC DALY. With a Vig- nette Portrait, specially etched from a Private Photograph taken by S. A. WALKER, by AD. LALAUZE ; printed on hand-made paper by M. . SALMON, of Paris. Second thousand. Crown 8vo., cloth extra o 5 o "Mr. Frederic Daly has brought together an interesting mass of facts which will be acceptable to the admirers of the eminent actor. Mr. Daly writes with judicious moderation, and without excessive adulation, thoroughly appreciates the deservedly high position occupied by the subject of his biography." Athettaum. " Mr. Daly is a strong though by no means undiscriminating admirer of Mr. Irving. This ensy and well-written narrative gives a good idea of the popular actor's career." Contemporary Review. ' ' Conscientiously full, thoughtfully considered, and gracefully written '' Daily Telegraph, "It refers succinctly to Mr. Irving's literary efforts, essays, and addresses, and concludes with a survey of Mr. Irving's personal characteristics. ... An interesting and useful volume. ... A portrait of Mr. Irving, etched by M. Lalauze, is admirable in execution." Saturday Review. "Written with discriminating taste." The World. ' ' Mr. Daly sets forth his materials with a due sense of propor- tion, and writes in a pleasing vein." Daily News. SETTLING DAY : A Sketch from Life. By SOPHIE ARGENT. Crown 8vo., cloth o 3 6 ' ' A charming story of real life, and one that is as true to human nature as it is true to {^^."Cotigregationalht. "A pleasant and wholesome little novelette. . . . It is agree- ably written." Society. Mr. T. Fisher Unwin, 26, Paternoster Square. THE FUTURE WORK OF FREE TRADE IN ENGLISH LEGISLATION. I. Free Trade in Land. II. Financial Reform. III. Monopolies. ( The Cebden Club Prize Essay for 1883.) By C.' E. TROUP, B.A , Balliol College, Oxford. Crown 8vo., cloth o 3 6 " Lucid in style, and based on a thorough comprehension of economic science, the book deserves the attention of all who are interested in the questions of which it treats questions which are likely to assume prominence in the not-distant future." Scotsman. " Leaves no doubt in the reader's mind that Mr. Troup fully earned his prize by treating the whole subject in a spirit of dis- crimination as well as with undoubted ability." Leeds Mercury. ORIENTAL CARPETS: How they are Made and Conveyed to Europe. With a Narrative of a Journey to the East in Search of Them. By HERBERT COXON. Illustrated with Plates and Map. Demy 8vo., cloth extra .. o 3 "We have many new and interesting facts, put in an extremely readable form, concerning carpets and the makers and dealers in them." Literary World. STOPS ; or, How to Punctuate. With Instruc- tions for Correcting Proofs, &c. By PAUL ALLARDYCE. Third edition. Demy i6mo., parchment antique or cloth ... " Is a clear and useful little book, which is written with more literary skill than is usually shown in such manuals. Mr. Allar- dyce will no doubt do more important work." Athenaum, "At the end Mr. Allardyce gives the useful example of how to correct a proof an art which some of those who live by the pen never master thoroughly." Saturday Review. " We have hardly any words but those of praise to give to his very thoughtful, very dainty little book." Journal of Education. "We can conceive no more desirable present to a literary aspirant. ' ' A ca demy. THE HOUSE PURCHASER'S GUIDE: Practical Hints for all Householders. By FREDERICK SNELLING. Demy i6mo., Cloth limp ... ... ... ... ... ... ... o o 9 New and Recent Books. CENTENARY SERIES. 1. JOHN WICLIF, Patriot and Reformer: his Life and Writings. By RUDOLF BUDDENSIEG, Lie. Theol., Leipsic. Parchment covers, Antique printing ... ... ... ... ... ... o 2 o Paper Covers o i o " Mr. Fisher L'mvin has printed in delicious old text, with a frontispiece and vellum binding worthy of an old Elzevir, Mr. Rudolf Buddensieg's brief extracts from Wiclif 's writings. . . . These are full of interest, and the little volume will be useful for reference. " Grapkic. ' ' The matter is equal to the manner, consisting of a summary of the career of the great Reformer, drawn up by an acknowledged master of the subject, and of a judicious selection of characteristic passages from Wiclif 's works. " Sf. James's Gazette. ' ' No better summary of the conclusions could perhaps be given than that which Dr. Buddensieg has epitomized.'' British Quarterly Review. " A charming book got up in the 'old-style,' bound in parch- ment and well printed on thick paper, containing a scholarly and appreciative account of Wiclif s life." Nonconformist. " Beautifully printed in the old-fashioned manner, and bound in imitation of vellum, this book is a thing of beauty. The specimens of Wiclif's writings are deeply interesting." Sword and Trowel. 2. THE TABLE TALK OF DR. MARTIN LUTHER. Fcap. I2mo., Antique Paper, Parch- ment boards ... ... ... ... ... ... o 2 o This is an entirely new selection and translation by Professor Gibb, from the ever- popular Tischreden oder Colloquia of " The Monk that shook the world," and forms an appropriate souvenir of the 4th Centenary now being held throughout Christendom. " His words are half-battles." Richter. " ' The Table-talk. ' The most interesting now of all the books proceeding fiom him.'' Carlyle. "Deserves the very highest praise. Great discrimination has been shown in the choice of extracts, and considerable skill in the grouping of them under appropriate heads." Congregationalist. 3. DOCTOR JOHNSON: His Life, Works and Table Talk. By Dr. MACAULAY, Editor of The Leisure Hour o 2 o Paper Covers o i o This little work will form an interesting souvenir of the great lexicographer, as described in its title. The first part will be a newly-written life by Dr. Macaulay, and the remaining part of the book will be short extracts illustrative of his writings and conversation. Mr. T. Fisher Unwin, 26, Paternoster Square. OUR MODERN PHILOSOPHERS: Darwin, Bain, and Spencer ; or, The Descent of Man, Mind, and Body. A Rhyme, with Reasons, Esssys, Notes, and Quotations. By "PSYCHOSIS." Crown 8vo., cloth extra, 236 pp o 4 6 " He is a powerful writer. . . . Many of his stanzas are happy illustrations of wit md wisdom." Literary World. "This is a clever, amusing, and instructive book." 'The Christian. "This work is highly creditable to the learning and industry of its author." Glasg - or Tw MAJOR FRANK : A Novel. By A. L. G. BOSBOOM-TOUSSAINT, Author of "The English in Rome," " Raymond the Cabinet-Maker." Trans- lated from the Dutch by JAMES AKEROYD. One vol. Crown 8vo., cloth [Ready 060 A 000018372 3