wed the various financial measures since the commencement
of the war. We were then in the peculiar condition of a nation
involved in a war without any currency whatever which by law could
be used in the ordinary transactions of public business. Gold was
withdrawn by the suspension of specie payments. The money of the
banks could not be used because the laws of the United States
forbade it, and we were without any currency whatever. Under these
circumstances, Congress had authorized the issue of $400,000,000
of United States notes. That this measure was wise but few would
controvert. We were compelled, by a necessity as urgent as could
be imposed upon any legislature, to issue these notes. To the
extent to which they were issued they were useful; they were a loan
by the public and without interest; they were eagerly sought by
our people; they were taken by our enemies in the south, by our
friends in the north; they were taken in the east and the west.
They furnished the best substitute for gold and silver that could
then be devised, and if we could limit United States notes to the
amount then authorized by law they would form a suitable and valuable
currency.

We had but four expedients from which to choose. First, to repeal
the sub-treasury act and use the paper of local banks as a currency;
second, to increase largely the issue of United States notes; third,
to organize a system of national banking, and fourth, to sell the
bonds of the United States in the open market. I discussed each
of these expedients in considerable detail. The practical objection
to the further issue of United States notes was that there was no
mode of redemption; they were safe; they were of uniform value,
but there was no mode pointed out by which they were to be redeemed.
No one was bound to redeem them. They were receivable but not
convertible. They were debts of the United States but could not
be presented anywhere for redemption. No man could present them
except for the purpose fo funding them into the bonds of the United
States. They were not convertible into coin. They lacked that
essential element in currency.

Another objection was that they were made the basis of state bank
issues. Under the operation of the act declaring United States
notes to be a legal tender, the state bank circulation had increased
from $120,000,000 to $167,000,000. The banks sold their gold at
a large premium, and placed in their vaults United