The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-01-09
SO per cent. The premium then


1864. It averaged for this month 1881
per cent, and its highest point was 1876,
at which time the greenbacks were
worth about 35 cents on the dollar, and
bonds bearing gold interest stood, aver
aged for the month, at only 40 in gold,
but triae higher than the non-inter
est-bearing notes. They were not sala-
BILE in Europe at any figure, though
Turkish, Spanish and South American
bonds were quoted in Lombard street
and on the Paris Bourse.
The gold premium fell to 1912 per
cent. in October, but rose to 1885 per
cent. in November, and then fell con-
tinuously to 1916 per cent. in May,
1865, when the war was over. The gold
premium advanced from May, 1885, to
December of that year, when it stood o.
1862 per cent. It fell to 31.8 per cent.
in May, 1866, and then rose to SIG per
cent. two months later, when it fell
again to 34.6 per cent. in January,
1867. In September and October it
stood above AZ per cent, but ended the
year at almost the same figure at which
it began it.
What is known as the "Nine-hundred-
million-loan act became law March 3,
1868. It authorized third issue Of
$3.50, 100000, two-thirds of which had al
ready been issued under resolution. It
authorized the issue of $4O0,O000O0
treasury notes. These notes were not
to be of any denomination 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 5 per cent?
and were legal tender for their face
value, excluding interest. At the close
of the fiscal year of 1864 there were
outstanding of these notes $153, All ,450.
A year later there were only So, $780,
10 out, and the amount has since been
trivial.
The act also authorized the issue of
fractional currency to an amount not
exceeding $5O, 100000, and the negotia-
ton of 1910 bonds at an interest not to
exceed 6 per cent, most of which was
in lieu of securities already issued.
The act increased the bonded debt only
R'c,OOO;OOOs u1ullcI Sttloo VI JULIUS
under this act were stopped by an act
passed year later.
In his first report to Congress after
the close of the war G865), Hugh Nc
Culloch, Secretary of the Treasury,
recommended policy of contraction to
facilitate the preparation for resump-
ton. Congress authorized him to with
draw $l0,000,000 within six months, and
to continue contraction thereafter at
the rate of not more than $4,O00,0O0
month. The greenbacks had been re-
duced in amount 81, 100000, there was
something like stringency in the
money market, and ON Feb. 4, 1868, the
contraction of the currency was stopped
by act of Congress.
In the spring of 1869 Congress
passed the well-known "act to strengthen
the public credit" which became law
On the 18th of March of that year. It
reads as follows:
That in order to remove any doubt as to the
purpose of the Government to discharge all
just obligations to the public creditors, and to
settle conflicting questions and interpretations
of the laws BY virtue Of which such obligations
declared that the faith of the United States is SOL
EMMY pledged to the payrnentin coin or it's equiv
alent, of all the obligations of the 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 maturity unless at
such time United States notes shall be converti-
bic into coin, at the option of the holder, or un-
less at such time bonds of the United States
bearing lower rate of interest than the bonds
to be redeemed can be sold at par in coin.
And the United States also soemnly pledges it's
faith to make provisions at the earliest possible
pc iod for the redemption of the United States
notes in coin.
The panic of September. 1873, found
the volume of legal tenders $356,OOO 900.
President Grant and Secretary Richard
son reissued $19,O00,000 of the green
backs that had been withdrawn. In the
following session Congress Iegalized
this action, making the volume $780,
100000 a sg~s s~. 50
In the spring of 1874 measureto in
crease the currency to the amount of
$4OO,O0O,0O0 was passed by Congress,
but was vetoed by President Grant. A
bill fixing $382,000,o0O as the maximum
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 unconstitutional. The
opinion of the Court was given by Chief
Justice Chase, who, as Secretary of the
Treasury, had regarded the Legal-Ten-
der act as essential to the salvation of
the Government. This decision was en-
tered on the minutes Feb 7, 1870, a few
days after the resignation Of Justice
Grier had taken effect. The majority
of the court consisted of Chief Justice
Chase, and Associate Justices Nelson,
| Clifford, and Field. The dissenting
Justices were Associate Justices Swayne,
Miller and Davis. On the 10th of April
/ Of the previous year QS69 Congress
hcJ x 4. u Il