f limitations; and if this right was
injurious to the people of the United States, and prevented the
conversion of these notes into bonds, we might require the holder
of these notes to convert them within a given time; that we could
give them a reasonable time within which they could convert them
into six per cent. bonds, and after that take away the right.

"The act of March 3, 1863, was amended by inserting this clause:

'And the holders of United States notes, issued under or by virtue
of said acts, shall present the same for the purpose of exchanging
the same for bonds, as therein provided, on or before the 1st day
of July, 1863; and thereafter the right so to exchange the same
shall cease and determine.'

* * * * *

"Now, Mr. president, I have shown you that the greenbacks were
based upon coin bonds; that they had the right to be converted into
coin bonds; that that right was taken away as to the 5-20 bonds;
but that, in practice and in effect, the greenback was convertible
into an interest-bearing bond of the United States up to 1866, and
until the passage of the law to which I will now refer.

* * * * *

"If this act had contained a simple provision restoring to the
holder of the greenback the right to convert his note into bonds
there would have been no trouble. Why should it not have been
done? Simply because the then Secretary of the Treasury believed
that the only way to advance the greenbacks was by reducing the
amount of them; that the only way to get back to specie payments
was by the system of contraction. If the legal tender notes could
have been wedded to any form of gold bond by being made convertible
into it, they would have been lifted, by the gradual advance of
our public credit, to par in gold, leaving the question of contraction
to depend upon the amount of notes needed for currency. Sir, it
was the separation of our greenbacks from the funding system that
created the difficulty we have upon our hands to-day; and I say
now that, in my judgment, the only true way to approach specie
payments is to restore this principle, and give to the holder of
the greenback, who is your creditor, the same right that you give
to any other creditor. If he has a note which you promised to pay
and cannot, and he desires interest on that note by surrendering
it, why should you not give it to him? No man can answer that.
It is just as much a debt as any other portion of the debt of the
United States."