The midland journal. (Rising Sun, Md.) 1885-1947, 1894-01-19
QUESTIONS OF THE DAY.
A FINANCIAL HISTORY
Course and Effect of Legislation
Since 1851,

A FINANCIAL HISTORY.
Course and Effect of Legislation
Since 1851.
BY N. A. DUNNING.
From The National Waterman.
No. x.
The speech of Mr.. Spaulding has
been given nearly complete because it
opened up new system Of finance
His speech was subject for much
comment and wide discussion. Imme-
diately the bankers and money owners
attacked it upon all sides. Mr.. Pendle-
ton, OF Ohio, led off with an elaborate
speech against the legal tender portion
of the bill. Among others he made the
following statement:
These notes are to be made lawful
money and legal tender in discharge
of all pecuniary obligations, either by
the Government or individuals, a
character which has never been given
to any note of the United States, or
any note of the Bank of the United
States by any law eyer passed. Not
only, sir, was such law never passed,
but such law was never voted on,
never proposed, never introduced,
never recommended by any department
Of the Government; the measure was
never seriously entertained in debate in
either branch of Congress.
Mr.. Pendleton contended that the
bill, if passed, would impair the obli-
cation of past as we'll as of future con-
tracts, and that it would make it illegal
to make contract for dealing in gold
or silver coin, for the reason that these
legal tender note might be rendered in
payment of coin contracts. He insisted
that there was no express power granted
in the Constitution to make United
States notes lawful money and legal
tender in payment of debts, and that
the power "to regulate commerce gave
no such power.
In this manner the debate continued,
growing more and more earnest as the
matter was considered.
The letter of Secretary Chase Of the
22d inst. was regarded by majority Of
the Committee of Ways and Means and
many Members of the House, as non
committal on the legal tender clause Of
the bill, and many believed that when
pressed to decision, he would declare
against its constitutionality. In order
to obtain the opinion of the Secretary
more fully, Mr.. Corning offered reso-
luton in the Committee of Ways and
Means, which was adopted, referring
the bill mo. 240) to the Secretary, and
requesting him to communicate to the
Committee at as early day as possible
his opinion as to the propriety and
necessity of its immediate passage by
Congress. After considerable dely the
Secretary sent to the Committee of
Ways and Means the following reply :
EXTRACT FROM A LETTER OF THE SEC.
RETARY OF THE TREASURY TO THE
COMMITTEE OF WAYS AND MEANS.
Treasury DEPARTMENT, Jan. 20, 1862.
SIR 81 have the honor to acknowl-
edge the receipt of resolution of Com.
mittee Of Ways and Means, referring to
me House bill No. 240, and requesting
my opinion as to the propriety and
necessity of its immediate passage by
Congress.
The condition Of the Treasury GER
tainly needs immediate action on the
subject of affordiDg provision for the
expenditures of the Government, both
expedient and necessary. The general
provisions of the bill submitted to me,
seems to me we'll adapted to the end
proposed. There are. however, some
points which may, perhaps, be usefully
amended.
The provision making United States
notes legal tender has doubtless been
we'll considered by the committee, and
their conclusion needs no support from
any observation OF mine. l think it my
duty, however, to say, that in respect
to this provision my reflections have
conducted me to the same conclusions
they have reached. 1t is not known to
them that have felt, nor do l wish to
conceal that l now feel, great aver
sion to making anything but coin a
legal tender in payment of debts. II
has been my anxious wish to avoid the
necessity of such legislation. 1t is,
however, at present impossible, in con-
sequence of the large expenditures
entailed by the war, and the suspension
of the banks. to procure sufficient coin
for disbursements; and it has, therefore,
become indispensably necessary that we
should resort to the issue of United
States notes. The making them legal
tender might, however, still be avoided,
If the willingness manifested by the
people generally, by railroad companies,
and by many of the banking institutes,
to receive and pay them as money in all
transactions. were absolutely or practi-