imported
goods shall be paid in coin; and that this money shall be set aside
as a special fund to pay the interest on the bonded debt in coin.
Then, in order to secure the greenbacks, it authorized any holder
of greenbacks to pay any government debt with them; it authorized
the holder of greenbacks to pay any debt, public or private, with
them; and every citizen of the United States was bound to take
them. Then it authorized them to be converted into six per cent.
bonds of the United States--those bonds payable, principal and
interest, in gold. If the policy provided for by this act had been
maintained, we would long since have been at specie payments,
without any serious disturbance of our monetary affairs.

* * * * *

"Now, Mr. president, I come to show the Senate how this provision,
the convertible clause of the act of February 25, 1862, was repealed.
On the 3rd of March, 1863, Congress passed 'An act to provide ways
and means for the support of the government.' This act was passed
during the dark hours of the war. The currency of the country did
not flow into the treasury rapidly enough to pay our army. I
remember that at about the time this act was passed there were very
large unpaid requisitions. The Secretary of the Treasury, instead
of issuing any more six per cent. bonds, desired to float a 10-40
five per cent. bond; in other words, to reduce the burden of interest
upon the public debt. At this time there were three hundred millions
of circulation outstanding, and with all the rights, and all the
privileges, conferred upon the greenbacks, they did not flow into
the treasury fast enough to furnish means to carry on the operations
of the war.

* * * * *

"In other words, the suspension of this convertibility clause was
passed with a view to promote conversion; to encourage conversion;
to induce conversion; and, if possible, to induce a conversion into
a five per cent. gold bond instead of into a six per cent. bond.
When the Secretary of the Treasury presented this view to Congress
he was at once met with the pledge of the public faith; with the
promise printed upon the back of the greenbacks that they could be
converted into six per cent. bonds at the pleasure of the holder;
and that we could not take away that right. This difficulty was
met by the ingenuity of the then Senator from Vermont (Mr. Collamer).
He said that no man ever exercised a right which could not properly
be barred by a statute o