forseen and untoward
event, the notes should again depreciate in value below coin, the
obligations of the government would still require that interest on
the public debt be paid in coin; and if customs dues were payable
in legal tender notes, the department would have no source from
which to obtain the coin necessary to the payment of interest, for
of course holders of interest obligations would not accept a
depreciated currency when they were entitled by law to coin."

I reminded the committee that in my report of December, 1878, I
stated that on the 1st of January following I would receive United
States notes for customs duties. As these notes were redeemable
in coin, it was unreasonable to require the holder of notes to go
to one government officer to get coin for his notes to pay customs
duties to another government officer. I held that the United States
notes had become coin certificates by resumption, and should be
treated as such. I informed them that I issued the order with some
reluctance, and only after full examination and upon the statement
of the Attorney General, who thought technically I could treat the
note as a coin certificate. I called their attention to the fact
that I had informed Congress of my purpose to receive United States
notes for customs duties and had asked specific authority to do
so, but no action was taken, and I was assured that none was needed.
The conversation that followed showed that they all agreed that
what I did was right. It was evidently better not to provide by
specific law that the United States notes should be receivable for
customs dues, for in case of an emergency the law would be imperative,
while, if the matter was left to the discretion of the Secretary
of the Treasury, he could refuse to receive notes for customs dues
and compel their payment in coin.

This led to a long colloquy as to whether the time might come when
the United States notes could not be redeemed in coin. I entered
into a full explanation of the strength of the government, the
amount of reserve on hand, the nature of our ability, and said:
"Still we know that wars may come, pestilence may come, an adverse
balance of trade, or some contingency of a kind which we cannot
know of in advance may arise. I therefore think it is wise to save
the right of the United States to demand coin for customs duties
if it should be driven to that exigency."

The question then arose as to the propriety of confi