The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-06-15
The Treasury Note In History.


The Treasury Note In History.
The impression quite generally prevails that
the issuing of promissory notes by the govern
ment and their use as currency is financial
novelty ventured upon as mn extremely danger
Gus experiment in the peril of our great civil
strife, but to be abandoned as soon as peace is
assured. The truth is the United States gov
ernment has issued its promissory notes, which
have been used for money repeatedly iu time Of
peace, as well as in time of war, and the prac-
tice has been sanctioned by all our most con-
servative statesmen.
June 3d. 1872, just upon the commencement
of the last war with Great Britain, Congress
authorized the ISSUE of $5,OOO,OOO treasury
notes to be redeemed in one year, to bear inter-
est at five and two.ffths per cent and to be
receivable for taxes and duties and in payment
for the public lands.
Feb. %, 1918, the war still continuing, ST.
100000 more treasury notes were authorized
under the same conditions, and the Secretary
oil the Treasury was directed to use them in
payment of supplies or debts due by the United
States to such public creditors or other persons
may choose to receive them in payment at
par.
March IA, 1914, S5,OOO,OO0 more treasury
notes were authorized under the conditions in
the preceding act.
Dec. &c. 1914 Congress authorized under SINH
lar conditions an issue of $lO,5OO 900 additional
treasury notes. 1t was in reference to treasury
notes of the successive issues that Daniel
Webster made the second speech he made in
Congress in supporting resolutions introduced
by himself April 26, 1876 declaring that after
the 10th of February next after nothing should
be received in payment of debts due the United
States but legal currency, or treasury notes, or
notes of the Bank of the United States, or of
banks paying their bills on demand in legal
currency of the United States
Oct. II, 1887, in a time of peace, Congress
passed an ast for the issue of $4,000, 900 in
treasury notes payable in one year with inter-
est not to exceed per cent, to be- used in pay-
ment of all public creditors, who would receive
them at par, and to bs receivable for all duties
and taxes and in payment for the public lands.
March 81, 1910 many of these notes being
still 10 circulation, Cnngre,s enacted that
$4,000. 900 mora notes might bs issued 10 lieu Of
that amount of the notes previously redeemed,
or that should be redeemed.
Feb. Is, 1871, an emission of S5,O 900 900 treas
ury notes was authorized under the provisions
set forth in the preceding acts January 81,
1912, further emission of So 00O, 900 was su.
thOrizsd; and April 10, 1872 the treasury notes
of 1887, 1871 and 1912 being still outstanding,
Congress enacted that interest on them should
cease after 60 days notice by the Secretary Of
the Treasury
Aug 81 1912, Congress authorized an amount
OF treasury notes not exceeding $6,00O,OOO to be
issued in exchange for public stock, authorized
by act of July 81, 1S4l, provided it could
not be sold at par.
March 8, 1S43, Congress authorized the Sec
retary to reissue any of the outstanding treas
ury notes that should be redeemed thereafter
ward, should the 1CdntS Of the public service re-
qulre tan unconstitutional act if the opinion
of the New York Nation has any validity.
Dec. % 1857, an issue of 100000 of treas
ury notes was authorized, to be- used in pay
ment of warrants in favor of public creditors,
and receivable for duties, taxes, sales of public
lands, and all debts to the United States: they
were to be reissued when redeemed up to Jan. l.
1859. March 3, 1859, the power to reissue was
extended to July 1, 1860.
Dec. IL, 1860, $40 600 900 treasury notes were
authorized under the same regulations as pre-
scribed in the previous acts
March 2, 1861, Congress authorized loan of
S10,000,000 to pay outstanding treasury notes,
tory, to issue treasury notes for that sum- in
sums not less than $50, with interest payable
seml-annually, and under that discretion treas
ury notes to that amount were in fact issued.
Thus it will be seen that prior to the war of
the rebellion the government had authorized
the issue of S25, 600, 900 treasury notes to be
used in payment of public debts in time of war
and of SCI, 900 900 in time of peace.
July 18th, 1861, the Secretary of the Treasu-
ry was authorized to borrow $3.50, 900, 900, and
also to issue treasury notes of less denomina-
ton than $50 not bearing interest, aud also
others bearing interest at 90 per aunum, the
whole not to exceed $50,000,000. These treas
ury notes were receivable IN sums of $50 aud
multiples of $50 as Subscriptions to the loan au-
thorized by the act, aud all under $50 were re-
issuable until Dec. 1st, 1862.
Feb. 18th, 1862, an additional issue Of S10,-
100000 was authorized.
Feb. 25th, 1862, $3.50 600 900 of treasury notes
were authorized payable to bearer, without in
terest, convertible into United States stock in
sums of $50 or mutiples of $50, and receivable
for all dues to the United States except duties
on imports, aud to be legal tender for all
debts public and pfjUdte.
July lob, 1862 an issue of $50, 200, 900 more
notes was authorized under similar conditions.
March 81, 1868, $3.50 100000 of treasury notes
were authorized to be issued IN notes OF denom-
nations not less than 81, to be legal tender for
public and private debts, and the right of ux-
changing treasury notes of previous issue for
bonds was to be terminated after July LIST,
1868
IL will thus be seen that up to Feb. 25th 1862
none of the Treasury notes issued by the gov
ernment had been made legal tender for private
debLs, but they had all been receivable for all
debts due the g0UerRnlent Including customs. and
their currency had thus baen maIutsIOed at
par. AT the time mentioned the government
adopted new policy. 1t ceased to honor its
own notes by accepting them in pay yment OF all
dues 70 itself and 1t no longer trusted tnem TO
voluntary circulation among creditors, who
would receive them, bat used the power of its
sovereignty to compel its creditors to receive
them as money, which undoubtedly was neces-
sarv in the exigency of the situation, and also to
comnel nitrate creditors OF pTjUate debtors to re-
csive them, which certainly was MT necessary
Now that the danger of national dissolution
has long since gone by, now that the credit of
the government, as indicated by the high pre-
MUM on its securities, and the general favor in
which its MISUNDERSTANDING notes IS held, is
so thoroughly established would It nOt bs ost-
ter TO return to the early good faith aud safe
practices of the earlier administrations, and
make the Treasury note receivable for customs
dues and exchangable for any bonds author
lied to be issued, but leaving both public and
private creditors to accept them or not in pay
ment of their debts as they shall choose.
G. FT.
Tho pras d4nt y~stard.y sant tnn nOmina-