very rebellious state, the government
had secured a foothold, and an army of half a million men, armed,
organized and disciplined, impatiently awaited the word of command
to advance the old banner of our country against every foe that
stood in its way. Where does the history of nations present an
example of greater physical weakness followed so soon by greater
physical strength? When have results more wonderful been accomplished
in eight months?

At the beginning of the year 1862 we were physically strong but
financially weak. Therefore, I repeat, the problem of this contest
was not as to whether we could muster men, but whether we could
raise money. There was great wealth in the country but how could
it be promptly utilized? To that question the diligent attention
of Congress was applied. The banks which had aided us with money
were crippled and had suspended coin payments. The Secretary of
the Treasury was begging at the doors of both Houses for means to
meet the most pressing demands. On the 15th of January, 1862, the
London "Post," the organ of Lord Palmerston, said:

"The monetary intelligence from America is of the most important
kind. National bankruptcy is not an agreeable prospect, but it is
the only one presented by the existing state of American finance.
What a strange tale does not the history of the United States for
the past twelve months unfold? What a striking moral does it not
point? Never before was the world dazzled by a career of more
reckless extravagance. Never before did a flourishing and prosperous
state make such gigantic strides towards effecting its own ruin."

The legal tender act, with its provision for coin receipts to pay
interest on bonds, whatever may be said to the contrary by theorists,
was the only measure that could have enabled the government to
carry on successfully the vast operations of the war. Our annual
expenditures at that time were four times the amount of our currency;
were three times the aggregate coin of the country; were greater
than any ever borne by any nation in ancient or in modern times.
The highest expenditure of Great Britain during her war with
Napoleon, at a time when her currency was inflated, when she made
the Bank of England notes a legal tender, was but L100,000,000.

Anticipating these enormous expenditures I introduced a bill which
became a law on the 31st of July, 1861, which provided for a
commission to examine and report as to the com