r in payment for all
debts, public and private, except for duties on imported goods and
interest on the public debt. As long as these notes were at a
discount for coin they could circulate only in the United States,
and until they were at par with coin, coin would not circulate as
money in the United States, except to pay coin liabilities. The
notes were a dishonored, depreciated promise, the purchasing power
of which varied day by day, the football of "bulls and bears." In
many respects these notes were better than any other form of
depreciated paper money, for the people of the United States had
full confidence in their ultimate redemption. They were much better
and in higher favor with the people than the state bank notes which
they replaced and which were not only depreciated like United States
notes but had been often proven worthless in the hands of innocent
holders. They were as good as national bank notes, however well
secured, for these notes were not payable in coin, but could be
redeemed by United States notes. Still, with all their defects
the United States notes were the favorite money of the people, and
any attempt to contract their volume was met by a strong popular
opposition.

As already stated, the gradual reduction of the volume of United
States notes, urged so strongly by Secretary McCulloch, and provided
for by the resumption act, met with popular opposition and was
repealed by Congress. Under these conditions it became necessary
to approach the specie standard of value without a contraction of
the currency. The act to strengthen the public credit, already
referred to, was the beginning of this struggle. The government
was, by this act, committed to the payment of the United States
notes in coin or its equivalent. But when and how was not stated
or even considered. The extent to which Congress would then go,
and to which popular opinion would then consent, was the declaration
that the "United States solemnly pledges its faith to make provision
at the earliest practicable period for the redemption of United
States notes, in coin." Many events must occur before the fulfillment
of this promise could be attempted.

CHAPTER XXII.
OUR COINAGE BEFORE AND AFTER THE WAR.
But Little Coin in Circulation in 1869--General Use of Spanish
Pieces--No Mention of the Dollar Piece in the Act of 1853--Free
Circulation of Gold After the 1853 Act--No Truth in the "Demonetization"
Charge--Account of the