The farmers' union. (Memphis, Mo.) 1891-1895, 1894-03-15

issue certificates of indebtedness for
these purposes was broad and unlimi-
ted. The certificates issued under
these two acts were in the smilitude
of bank notes fitted for circulation as
money and did circulate to a con-
siderable extent as currency until
there was such an accumulation of
interest on them as to make it an OBJ
ject for capitalists to hold them as an
investment. The Secretary CON-
menced issueiDg these certificates
simultaneously with the issue of legal
tender (greenbacks) notes, and con-
tinued to issue them in large amounts
during the progress OF the war, which
was advantageous to the government,
but at the same time was another
fruitful source or Of imitation, and
operated directly against any con-
siderable funding in the long $50
bonds. CThe amount:.of; Indebtedness
in this form ON the lst Of November,
1864, was 1898, 5000, BENG an
amount greater than the market
bear; they were consequently de-
preciated and considerably below par.
In less than month after the pas
sage of the first legal tender act an
other act was passed at the request
of Secretary Chase, approved March
II, 1862, by which the demand notes
authorized by the act passed at the
extra session in July, 1861, and
the supplementary act of February I'd.
1862, amounting to $6O, 900, 900, were
declared to be legal tender and law
full money and legal tender, in like
manner, and for the same purpose,
and to the same extent as the note
authorized by the first legal tender
act. These notes when first issued
were receivable by the government
for duties on imports, but that was
not enough TO prevent them from de-
preciatlng, and some of the banks in
the principal cities refused to receive
them from their customers as money.
The object to make them a legal
tender was to make them pass cur.
rently rs money ut the clearing house
and in all business transactions, with
out loss to the holder.
Secretary Chase sent to the COM
mittee Of Ways and Means on tie
9TH, Of June 1862, an official CON-
munication, accompanied by bill
proposed by him, asking, among
other things, for an additional issue
Of $40, 100000 of legal tender notes;
and that of this sum $35 10000
should be Of a denomination not less
than s.. This communication is pub
lished as Miscellaneous Document,
No. 81, and sets fourth at length the
reason why, in the opinion of the
Secretary, this additional issue should
be authorized by Congress.
Payments to public creditors, and
especially to soldiers, now require
large sums of coin to satisfy fractional
demands less than $5. Great incon-
veniences in payment of The troops
are thus cccasioned. With every
effort on the part of the Treasurer to
provide the necessary amount Of coin,
it is found impracticable always to
satisfy the demand. When the
amount required is furnished, the
temptation to disbursing officers to
exchange it for small bank notes that
the soldiers or the public creditors
will take, is too great to be always re.
sisted. And even when the coin
reaches the creditors it is seldom
held, but passes, in general, immedi-
ately into the hands of suffers and
others, and disappears at once from
circulation. The lnconveniences,
therefore to the government and
creditors, from the absence Of the
United States notes of small denomi-
nations, are not compensated by
benefits to an ytOdy.
Hin1n was asked once if there