xacted coin for customs duties and paid coin for interest on its
bonds. If there was an excess of coin received from customs to
pay interest then the excess was sold at a premium. If the receipts
from customs were insufficient to pay the interest on bonds, the
government had to buy the coin and pay the premium. The people
who were demanding more money to relieve the stringency did not
see that the best way to get more money into circulation was to
adopt measures that would make United States notes and bank notes
equal to coin, when all three forms of money would enter into
circulation and thus give them more money and all kinds of equal
value.

While our paper money was depreciated the gold and silver bullion
from our mines went abroad and was converted into foreign coin,
while a large portion and perhaps a majority of our people demanded
more paper money, which declined in value in exact proportion to
its increase. During the war vast expenditures compelled us to
use paper money; the return of peace and the excess of revenue over
expenditures should have been promptly followed by coin payments
or notes payable in coin. We delayed this process so long that
the popular mind rested content with depreciated money, but the
panic of 1873, and the feverish speculation which preceded it,
convinced the great body of our business men that there was no
remedy for existing evils but a return to specie payments.

Another bill concerning currency and free banking was reported by
Horace Maynard, of Tennessee, on the 29th of January, 1874, from
the committee on banking and currency of the House of Representatives,
which provided for free banking and a gradual reduction and
cancellation of United States notes by the issue of notes payable
in gold in two years from the passage of the bill. This was fully
debated in the House of Representatives and amended and passed.
In the Senate it was reported by me from the committee on finance,
with a substitute which provided for free banking and that on and
after the 1st of January, 1877, and holder of United States notes
might present them for payment either in coin or five per cent.
bonds of the United States, at the suggestion of the Secretary of
the Treasury. This substitute was amended in the Senate by striking
out all provisions for the redemption of United States notes,
leaving the measure one for free banking alone. The House disagreed
to the amendments and a committee of confe