The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1862-06-27
ed States notes will probably suffice for all
demands which cannot be met from CONVEX.

ed States notes will probably suffice for all
demands which cannot be met from CONVEX.
sions and from customs. ~ ..- ~
If Congress shall see fit to authorize the
additional emission proposed, it seems high
ly expedient that such part as the public
convenience shall require be issued in de-
nominations less than So.
am aware of the general objections to
the issue OF notes under SIS, and c0ncede
their cogency. Indeed, under ordinary cir.
cumstances, they are unanswerable, but in
the existing circumstances of the country
they lose most if not all their force. The
country is involved in the expenditures of a
contest TO. national existence, and it is
highly desirable that the burdens of the
people be made as tolerable as possible.
If the restriction on the issue of small de-
nominations be removed the wants of the
country will absorb circulation of $685.
600. 900, and perhaps more. The interest
on the circulation, say $l,5O0O00 year,
will be saved to the tax payers.
Payments to public creditors, and espe>
cially to soldiers, now require large amounts
of coin to satisfy fractional demands less
than So. Great Inconvenience in payment
OF the troops are thus occasioned. With
every effort on the part of the Treasury to
provide the necessary amount OF coin it is
found impracticable always to satisfy their
demands
When the amount required is furnished,
the temptation to disbursing officers to ex p
change it for any small bank notes that the
soldiers or pGblic creditors will take is too
great to be always resisted. And even
when the coin reaches the creditors it is
seldom held, but passes, in general, imme-
diately into the hands of suffers and
Others, and disappears at once from circu
lation. The Inconvenience, therefore, to
the government and creditors, from the alb
sencc of United States notes of small de.
nominations, are not compensated by any
body.
1t may properly be further observed,
that, since the United States notes are made
legal tender and maintained nearly at the
par of gold by the provision for the CONVEX
sion into bonds bearing six per cent. inter-
est payable 10 coin, it is not easy to see
why small notes may not be issued as safely
as large ones.
The notes made legal tender circulate as
money, and the government may authenti.
cate by device and imprint small notes as
we'll as small coins. The limit is to be
found only in public convenience, which
dictates denominations in notes similar to
denominations in gold, leaving the small
circulation of silver (less valuable than gold)
as before.
Another consideration which deserves to
be taken in the account is this, that re.
sumption OF payments 10 specie can be more
certainly and easily effected, and with far
less Inconvenience and loss to the commune
ty, if the currency, small as we'll as large,
is of United States notes, than if the chan~
nelS of circulation are left to be filled up by
the emissions of non-specie paying corpora
tons, solvent and insolvent.
These considerations OF economy, of pub.
lie advantage and private convenience, seem
to me to justify fully the removal of the
restriction upon the issue of small notes.
propose, further, to make arrangements
for the necessary engraving and other work,
for the printing and preparation for the issue
of these notes in the Treasury Department
at Washington. am led to believe that a
very considerable reduction of expense can
be thus effected. The prospect, in my judg,
ment, certainly warrants the trial.
With these objects l have prepared bill
which propose to submit to the coDsidera.
ton of the committee. The condition of
the Treasury renders prompt action highly
desirable. and trust it is not necessary to
assure the committee or Congress that should
the powers asked for be granted they will be
exceeded only with the most careful reference
to the requirements of the public interest.
Whatever the authority granted may be,
no issue of notes will be made except to
replace notes withdrawn and cancelled, and
to meet the current expenditures authorized
by Congress which cannot be met from the
receipts of revenue, from the increase of
deposits, and from the proceeds of the con.
version into five tweDties.
With grea; respect,
S. p. CHASE,
Secretary of the Treasury.
Hon. Thaddeus Stevens, Chairman Commit
tee of Ways and Means.