contained
this provision: "Such treasury notes may be reissued from time to
time as the exigencies of the public service may require," the
first authority ever given for the reissue of treasury notes after
redemption.

On the 7th of January, 1862, Mr. Spaulding reported the bill to
the House with some important changes, and it soon became the
subject of a long and interesting debate. On the 22nd of January,
Secretary Chase returned Mr. Spaulding's bill to him and suggested
some modifications, referring to the legal tender clause as follows,
being his first reference to that clause:

"Regretting exceedingly that it is found necessary to resort to
the measure of making fundable notes of the United States a legal
tender, but heartily desiring to co-operate with the committee in
all measures to meet existing necessities in the most useful and
least hurtful to the general interest, I remain," etc.

In a letter to the committee of ways and means, on the 29th of
January, the secretary said:

"The condition of the treasury certainly needs immediate action on
the subject of affording provision for the expenditures of the
government, both expedient and necessary. The general provisions
of the bill submitted to me seem to me well adapted to the end
proposed. There are, however, some points which may, perhaps, be
usefully amended.

"The provision making United States notes a legal tender has
doubtless been well considered by the committee, and their conclusion
needs no support from any observation of mine. I think it my duty,
however, to say, that in respect to this provision my reflections
have conducted me to the same conclusion they have reached. It is
not unknown to them that I have felt, nor do I wish to conceal that
I now feel, a great aversion to making anything but coin a legal
tender in payment of debts. I has been my anxious wish to avoid
the necessity of such legislation. It is, however, at present
impossible, in consequence of the large expenditures entailed by
the war, and the suspension of the banks, to procure sufficient
coin for disbursements; and it has, therefore, become indispensably
necessary that we should resort to the issue of United States notes.
. . . Such discrimination should, if possible, be prevented; and
the provision making the notes legal tender, in a great measure at
least, prevents it, by putting all citizens, in this respect, on
the same level, both of rights and duties."

On the