cticable to
commence the refunding of six per cent. bonds into five per cent.
bonds. The notes rose under the stimulus of this new promise, in
one year, from seventy-six cents to eighty-nine cents in gold, but
no steps whatever were made to redeem them.

"The amount of bank notes authorized was increased fifty-four
millions. The executive department pursued the policy of redeeming
debts not due, and did, from an overflowing treasury, reduce very
largely the public debt, but no steps whatever were taken to advance
the value of our notes. The effect of the act of 1869 was exhausted
on the adjournment of Congress in March, 1870, when the United
States notes were worth eighty-nine cents in gold; and thereabouts,
up and down, with many fluctuations, they have remained to this
day. The bondholder, secure in the promise to him, is happy in
receiving his interest in gold, with his bond above par in gold.
The note holder, the farmer, the artisan, the laborer, whose labor
and production is measured in greenbacks, still receives your
depreciated notes, worth ten per cent. less than gold you promised
him 'at the earliest day practicable.' The one has a promise
performed and the other a promise postponed.

"Thus we stood when the panic of 1873 came upon us; with more paper
money afloat than ever circulated before in any country of the
world. Even then, had we stood firmly, the hoarding tendency of
the panic would have advanced our notes toward the gold standard,
and, in fact, did so during the months of September and October,
until the premium on gold had fallen to eight per cent. But, sir,
at this critical moment, the Secretary of the Treasury, acting, no
doubt, in good faith, but I think without authority of law, issued
twenty-six millions more United States notes--part of the notes
retired and canceled under previous acts. And now, notwithstanding
all the talk about the contraction of the currency, we have not
withdrawn one-half of this illegal issue. On the 1st of September,
1873, we had three hundred and fifty-six million notes outstanding.
Three months afterward, we had three hundred and eighty-two million;
and now we have three hundred and seventy-one million.

"Sir, it was under the light of these events, after the fullest
discussion ever given in Congress, of any question--after debate
before the people during the recess of Congress, and full deliberation
last winter--this act was passed. There was and is now