able at the pleasure
of the United States after two years and payable in ten years, be
issued.

The Secretary of the Treasury was authorized to issue any of these
bonds or notes for any of the bonds of the United States, as they
became redeemable, par for par. The bill further provided that
the three and a half per cents. should be the only bonds receivable
as security for national bank circulation.

Had this bill passed, as introduced, any time before the 4th of
March, 1881, it would have saved the United States enormous sums of
money and would have greatly strengthened the public credit. It
was in harmony with the recommendations made by the President and
myself in our annual reports. It was called up in the House of
Representatives for definite action on the 14th of December, 1880,
when those reports were before them. Instead of this action
amendments of the wildest character were offered, and the committee
which reported the bill acquiesced in radical changes, which made
the execution of the law, if passed, practically impossible. The
rate of interest was reduced to three per cent., and a provision
made that no bonds should be taken as security for bank circulation
except the three per cent. bonds provided for by that bill.
Discussion was continued in the House and radical amendments were
made until the 19th of January, 1881, when the bill, greatly changed,
passed the House of Representatives. It was taken up in the Senate
on the 15th of February. Mr. Bayard made a very fair statement of
the terms and objects of the bill in an elaborate speech, from
which I quote the following paragraphs:

"In little more than sixty days from this date a loan of the United
States, bearing five per cent. interest, and amounting to $469,651,050,
will, at the option of the government, become payable. On the 30th
day of June next, two other loans, each bearing six per cent.,
the first for $145,786,500, and the other $57,787,250, will also
mature at the option of the government. These facts are stated in
the last report of the Secretary of the Treasury, and will be found
on page ten of his report of last December. He has informed us
that the surplus revenue accruing prior to the 1st of July, 1881,
will amount to about fifty million dollars, and can and will be
applied in part to the extinguishment of that debt. Bonds maturing
on the 31st of December last were paid out of the accruing revenues.
So that there will remain th