. He was also authorized to issue, in exchange
for coin, as a part of the loan of $250,000,000, treasury notes
payable on demand, already referred to, or treasury notes bearing
interest at the rate of three and sixty-five hundredths per cent.
per annum, and payable in one year from date and exchangeable at
any time for treasury notes of fifty dollars and upwards. These
forms of security were the most burdensome that were issued by the
government during the war. The terms of these securities were
somewhat altered by the act approved August 5, 1861.

These laws were superseded by the act of February 28, 1862, which
may be regarded as the most important loan law passed during the
war. It authorized the Secretary of the Treasury to issue, on the
credit of the United States, $150,000,000 of United States notes,
commonly called greenbacks, already described. Of these, $50,000,000
were to be in lieu of the demand treasury notes authorized to be
issued by the act of July, 1861, above referred to. It also
authorized the Secretary of the Treasury to issue $500,000,000 of
coupon, or registered, bonds, redeemable at the pleasure of the
United States after five years, and payable twenty years from date,
bearing interest at the rate of six per cent. per annum, payable
semi-annually. These are what were known as the 5-20 bonds. In
reference to these securities, Secretary Chase, in his report of
December 4, 1862, said:

"These measures have worked well. Their results more than fulfilled
the anticipations of the secretary. The rapid sale of the bonds,
aided by the issue of United States notes, furnished the means
necessary for the conduct of the war during that year."

On the 3rd of March, 1863, the Secretary of the Treasury was
authorized to borrow, from time to time, on the credit of the United
States, a sum not exceeding $300,000,000 for the current fiscal
year, and $600,000,000 for the next fiscal year, payable in coin,
at the pleasure of the government, after such periods as may be
fixed by the secretary, not less than ten, or more than forty,
years from date. These bonds, known as the 10-40's, bearing five
per cent. interest, were exempt from taxation by or under state or
municipal authority. This act also provided for the issue of a
large increase of non-interest bearing treasury notes, which were
made lawful money and a legal tender in payment of all debts, public
or private, within the United States, except for