n. Some of
these Senators were new in congressional life, and some had been
transferred from the House of Representatives. This transfer of
a Member, though eagerly sought, is not for a time agreeable.
However conspicuous the Member may have been in the House, he must
take his place in the Senate at the bottom of the ladder, and,
according to Senatorial usage, must be reasonably modest in expressing
his opinions. The withdrawal of so many Senators in 1861, however,
gave the new Members better positions than usual. I was assigned
to the committee on finance and on naval affairs.

At that time the committee on finance had charge of all bills
appropriating money for the support of the government, all tax or
revenue bills, all loan and coinage bills, and, generally, all
bills relating to the treasury department, and to the finances of
the government. It was soon manifest that, in view of the war,
and the enormous sums required to conduct it, the task of the
committee would be a Herculean one, and that the labor required
would fall chiefly on Mr. Fessenden, the chairman of the committee,
and, I may with due modesty add, myself. My former position in
the House of Representatives, as chairman of the committee of ways
and means, and my personal association with Secretary Chase, with
whom I was intimate, led to my taking an active part in financial
legislation, which was considered my specialty. Congress, in
substantial conformity with the recommendations of Secretary Chase,
passed the act to authorize a loan which was approved July 17,
1861, providing for the issue of $250,000,000 of bonds running
twenty years, bearing not exceeding seven per cent. interest, or
treasury notes for not less than fifty dollars each, bearing interest
at not less than seven and three-tenths per cent. annually, and
payable in three years, and treasury notes of less denomination
than fifty dollars, not bearing interest and not exceeding $50,000,000,
payable on demand, and commonly known as demand notes. We knew
that this act was entirely inadequate for the great struggle before
us. The problem was not whether we could muster men, but whether
we could raise money. We had to create a system of finance that
would secure an enlarged revenue, unquestioned credit, absolute
certainty of payment of interest in coin, a national currency, and
such economy as is possible during war.

The first feeble attempt to create a national currency was the
is