ds known as the 5-20 bonds
could be paid in lawful money after the period of five years, when,
by their terms, they were redeemable. These bonds promised to pay
so many dollars. Other bonds were specifically payable in coin,
and still other bonds were payable in lawful money; that is, in
United States notes. These notes were then at a discount, being
worth in the market about 88 cents in coin. But the notes were
obligations of the United States, and it was the duty, and then
within the power of the United States, to advance these notes to
par in coin.

The majority of the committee, I among them, believed that the
United States should not take advantage of its own wrong, in not
redeeming its notes in coin, but should either advance these notes
to par in coin, or pay its bonds in coin. The committee, therefore,
recommended that both the notes and bonds should be received in
exchange for the funding bonds, and that the notes should be reissued
and maintained at par with coin, and be supported by a reserve of
coin ample to maintain the notes at par with coin. In other words,
the United States would resume specie payments. The committee
expressed the opinion that, with the system of taxation then in
existence, this policy of refunding and resumption could be
maintained, and that the rate of interest then paid could be reduced
to four or five per cent., and the money then in circulation would
be kept at par with coin at the cost only of the interest on the
bullion and coin held to meet any notes presented for redemption.
The committee also recommended that the internal and tariff taxes
be revised to correct irregularities or defects, and to repeal such
as were oppressive.

While the committee opposed any contraction of the currency it also
opposed any increase of it. The general theory of the report was
to advance both bonds and notes to par in coin, and to issue bonds
in such form and terms that the government could redeem them, or
renew them at lower rates of interest.

The report states:

"Your committee are therefore of opinion that no legal tender notes,
beyond the amount now limited by law, should be issued under any
pressure of financial or political necessity until they are
convertible into gold and silver. Our duty is to elevate the
'greenback,' the standard of national credit, to the standard of
gold, the money of the world. Until then we are not on a substantial
foundation. Let us make the dollar