ple, without decreasing the revenues of the
Government; if I had the power, I would order every bank in the
country, State and national, and the Government also, to resume specie
payment."

"Suppose McCulloch could do that," said Mr. Wentworth, "and give all
our boys their money at par."

"If he could do it, I would give him great credit," said Mr. Stevens.

"I believe he can," said Mr. Wentworth.

"My friend is large," said Mr. Stevens, "and has faith like two grains
of mustard-seed."

Plans were devised, and ultimately carried through Congress, by which
the great volume of paper currency should be gradually reduced at a
certain fixed rate, so that the people might know how to calculate the
future, and be enabled to provide against a commercial crash.

The first measure designed to accomplish this result was popularly
called the Loan Bill, which was amendatory of an act "to provide ways
and means to support the Government." When first considered, in March,
1866, it was defeated in the House. It was soon after brought up again
in a modified form, and passed both the House and Senate by large
majorities. The act provided that the Secretary of the Treasury might
receive treasury notes, or "other obligations issued under any act of
Congress," in exchange for bonds. The contraction of the currency was
restricted and limited by the provision that not more than ten
millions of dollars might be retired and canceled within six months
from the passage of the act, and thereafter not more than four
millions of dollars in any one month.

A financial problem of great importance presented itself for solution
in the second session of the Thirty-ninth Congress. A large amount of
compound-interest notes, weighed down with accrued interest, had
ceased to float as currency, and lay in the vaults of the banks and
the coffers of capitalists, awaiting redemption. The question arose as
to how they should be redeemed, and the nation saved the payment of
the immense amounts of interest which must accumulate in course of
time. The House of Representatives proposed to pass an act authorizing
and directing the Secretary of the Treasury to issue legal-tender
notes, without interest, not exceeding $100,000,000, in place of the
compound-interest bearing notes.

To this proposition the Senate would not accede, and passed a
substitute which the House would not accept. A Committee of Conference
reported a modification of the Senate's substitut