The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-02-12
CHIEF JUSTICE CHASE.

The Provision lIahipg United States Notes n
LeRni-ten ndcr-A Keuinisccnce OF War Tunes.
The following letter was written by Chief
Justice Chase while Secretary of the Treasury,
in 1862 to Hon. Thaddeus Stevens, chairman
of the Committee of Ways and Means
TREASURY DEPARTMENT., Jan. 90 1852 --Sir:-I
have the honor to acknowledge the receipt OF reso-
luton Of the Committee OF Ways and Means referring
me to House bill No. 240 and requesting my opinion
as TO the propriety and necessity OF its immediate
passage by Congress- The condition of the Treasure
certainly renders immediate action on the subject
Of afording provision for the expenditures OF the
Government both expedient and necessary The
general provisions of the bill.submitted seem to me
to be well adapted to the end proposed. There are
however, some points which may, perhaps, be use
The provision making United States notes a lega
tender has doubtless been well considered by the
committee, and their conclusion needs no support
from any observation OF mine. think it my duty,
however, to say that in respect to this provision my
reflections have conducted me to the same cOnclu-
sion they have reached. 1t is not unknown 10 them
that have felt, nor do wish TO conceal that now
feel, great aversion 20 making anything but coin
legal tender In payment OF debts.
IL has been my anx ious wish TO avoid the neces-
sity of such legislation. 1t is however at present.
impossible In consequence OF the large expendi.
lures entaed by the war and the suspension OF the
banks to procure sufficient coin for disbursements;
and 1t s therefore become indi5peDsably necessary
that should resort to the issue OF United States
notes. The making them legal-tender might
tested by the people generally, by railroad COM
panies, and by many OF the banking institutions
70 receive anu pay tnem as money IN all Trans
actions were absolutely or practically uni
versal, but unfortunately there are some persons
and some institutions which refuse TO receive and
pay them, and whose action tends, not merely to
the unnecessary depreciation OF the notes. but to
establish discrimination in business against those
In this matter who give cordial support TO the
Government and in favor OF those who do not.
Such discrimination should, II possible, be pre-
vented, and the provision making the notes legal
tender, in great measure at least, prevents it, by
putting all citizens in this respect on the same level
both OF rights and duties.
The committee doubtless feel the necessity OF
companying this measure by legislation necessary
TO secure the highest credit as well largest
rency for these notes. This security can be found
In my judgment, by proper provision for funding
them In interestbearing bonds, by we-guarded
legislation authorizing banking associations
with circulation based the bonds in
which the notes are funded and by judcious sys-
tenn OF adequate taxation which will not only create
q demand for the notes, but by securing the
prompt payment OF interest, raise and sustain the
credit OF the bonds. Sucn legislation, IL may be
hoped will dvest the legaltender clause OF the bill
OF Injurious tendencies and secure the earliest pos
sble return TO sound currency of coin and promptly
convertible notes. beg leave to add that vigorous
military operations and the unsparing retrenchment
OF all necessary expenses will also contribute essen
| italy to this desirable end.
/ have the honor to be, with very great respect
yours truly, s. p. CHASE