The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1879-02-21

February, 1868, when it was 60.b per
cent. 1t then declined steadily till in
August, 1868, il was 25.S per cent.
The premium then roso rapidly and
without interruption till it reached its
highest point in July, 1864. 1t aver
aged for this month 1881 per cent,
and its highest point was lS5, at which
! time the greenbacks were worth about
35 cents on the dollar, and bonds bear
ing gold interest stood, averaged for the
month, at only ~ in gold. but trifle
higher than the MISUNDERSTANDING
notes They were not salable in Ea-
rope at any figure, though Turkish,
Spanish aud South American bonds
were quoted in Lombard street and ON
tho Paris Bourse.
The gold premium fell to 1912 per
cent in October but rose to 1885 per
cant. in November, and then fell CON
tinuously to $50 per cent, in May,
1865, when the war was over The
gold premium advanced from May,
1865, to Dec. Of that year, when it
stood ut 46.2 per cent. 1t fell to 81 8
per cent. in May, 1866, and then rose
to 5l.6 per cent. two months later,
when it fell again to Sl.6 per cent in
January, 1867. In September and
October it stood above ~ per cent, bu
ended the year mt almost tho same iigter,
at which it began it.
What is known as the mine hun
dred nillion-loan act" became la "
March 5, 1868. IL authorized third
issue of $l5O,000,0OO, two thirds Of
which had already been issued under
resolution. II authorized the issue Of
$400, 100000 treasury notes. These
notes were not to be Of any dcnomina-
ton less than $40, were payable at the
option of the government at any time
within three years bore interest not To
exceed 6 per cent. (they were issued at
8 per cent. }, and were legal tender for
their face value, excluding interest
At the close of the fiscal year of 1861
there were outstanding of these notes
sl53.47l,450. 4 year later there
were only si2. 2.33s,7l0 out, and the
amount has since been trivial.
The act also authorized the issue Of
fractional currency to an amount not
exceeding 100000, aud the nego-
tiAtion of l0-4Q bonds at All interest
not To exceed 6 per cent, most of which
was in lieu of securities already issued.
The act increased the bonded debt only
$75, 100000. Further sales of bonds
under this act were stopped by an act
passed year later.
In this Grst report to Congress after
the close Of the war (ls65), Hugh Mc-
Culloch, Secretary of the Treasury,
recommended policy Of contraction 10
facilitate the preparation for resumption.
Congress authorized him TO withdraw
sl0,000,000 within Aiy months, and 70
continue contraction thereafter at the
rate Of not more than S4,000,000 n
month. The greenbacks had been re-
duced in amount s44,OOO,0OO, there
was something tilse stringency in the
money market, and on Feb. 1, 1868,
the contraction of the currency waa
stopped by act OF Congress.
In the spring of 1869 Congress
passed the well-known ''act to strength.
en- the public credit" which became Il
law OH the 18th of March of that year.
Il reads as follows:
"That III order TO remove any doubt
as TO the purpose OF the government to
discharge all just obligations to the
public creditors, and to settle conflict
ing questions and interpretations of the.
laws by virtue of which such obliga-
tions have been contracted, it is hereb y
provided and declared that the faith Of
the United States is solemnly pledged
to the payment in coin or its equiv
alent, OF all the obligations Of tho
United States not bearing interest,
known as the United States notes, and
of the interest-bearing obligations of
the United States, except in cases where
the law authorizing the issue of such
obligations has expressly provided
that the same may be paid in lawful
money, or in other currency than gold
and silver. But none of said interest
bearing obligations, not already due,
shall be redeemed or paid before ma
turity, unless at such time United
States notes shall be convertible into
coin, at the option of the holder, or un-
less at such time bonds of the United
Staes bearing a lower rate of interest
than the bonds to be redeemed can be
sold at par in coin. And the United
States solemnly pledge its faith to make
provisions at the earliest possible period
for the redemption of the United States
notes in coin"
The panic of September, 1878, found
the volume of legal tenders $356,000,-
900. President Grant and Secretary
Richardson reissued $lS,000,000 of the
greenbacks that had been withdrawn
In the following session Congress le
galized this action, making the volume
$3s2,000,00O.
In the spring OF 1874 measure tc
increase the currency to the amount oi
100000, 600 was passed by Congress
but was vetoed by President Grant. A
bill fixing $685., 100000 as the maxi
mum was then passed, received the
signature of the President and became
law.
In 1869 the Supreme Court Of the
United States, in the case of Hepburn
vs. Griswold, decided that the Legal
Tender act was unconstitutionaI The
opinion of the Court was given by
Chief Justices Chase, who, as Secretary
of the Treasury. had regarded thu
Legal-Tender act as essential to thu
salvatioA of the government. The de
clsion. was entered on the minutes Feb