St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1896-10-09
THE MONEY OF THE UNITED
STATES,
History Of the Currency Of This County by
Elisha May, Esq.,, Of st. Johnsbury, Nation-
al Bank Examiner for Vermont. Third
Dnnar
Written for the cALEDoNIAN.l

The "Greenback had its origin from
necessity and grew out of the war o
1861. 1t was stated that it was not in
tended as a permanent measure. Sena
tors Colamer and Foote and representa-
tive Justin S. Morrill, opposed the later
act Of February, 1862, upon constitu
tional and other grounds.
Under the act OF July, 1861, the secre
tary OF treasury was empowered to issue
$50, 600, 900 of notes in exchange for
coin or public dues, not smaller than SOC
in denomination, without interest, paya
bic on demand at the public treasures
These notes were to be received in pay.
ment OF, all public dues.
In February, 1862, further issue OF
$40, 900 was authorized, and the en-
tire amount was issued and put into cir
culation.
All these notes but about sos, 900 had
been redeemed in June, 1893, and $56,-
900, 900 had been retired and destroyed
prior to June, 1863.
These were called Omitted States notes. "
In February, 1862, the law known as
the Legal Tender" act was passed.
1t provided for the issue OF $150,000,-
600 OF United States notes, bearing no
interest, in denominations of not less
than So, payable on demand to bearer,
not receivable by the United States for
duties on imports not payable tor inter
est on public debt, but legal tender for
all debts public or private. Look in
your wallet and read the contract on the
grecnback. Senator Collamcr made a
speech against the measure that now
reads like prophecy. In view of the
present condition let me quote little.
ut is proposed to try the old expert
ment again. We know that OF old
there was a set Of men called alchemists,
one of whose projects was to discover
what they called the philosophers stone
which would transmute everything into
gold, but believe they never went so far
as to suppose they could make money
out of anything but the baser metals.
Wepropose to make it out of paper .
"Nol this is aiding and assisting men
who happen to owe debts, to pay those
debts at par, with deprecated paper at
the cost and expense OF the creditor. If
you make thing worse than absolute
direct robbery, l think you have got it
about bad enough in this tender clause"
Mr.. Morrill,, then a representative in
the house, on February 4, go, uttered
words of wisdom, which will be we'll
spoken to the silver men of today.
"The subject of issuing $3.50, 900
OF paper currency and making it legal
tender, by the government, at a single
bound, the precursor, as fear, of a pro-
life brood OF promises, no one of which
is to be redeemed in the constitutional
standard of the country, could not but
arrest my attention, and having strong
conviction of the impoicy of the meas
ure, should feel that | utterly failed to
discharge my duty if did not attempt
to find a stronger prop for our country
TO lean upon than this bill-a measure
not blessed by one sound precedent, and
damned by all.
What is it we most need? Clearly we
lack money and wish to inspire our own
people with that confidence that will in.
duce them to lend the requisite amount
But the very first step we propose is one
70 destroy whatever of confidence yet
remains among those who have a dollar
to lend"
The demand notes were paid in the
greeubacks, and in June, 1862, further
issue of grcenback notes to the amount
OF $3.50, 900 was authorized,
Money grew scarce and in March, 1868
$3.50, 900, 000more OF same kind of notes
were authorized making in all $3.50,
100000, In fact, all but $600,0 600 were
The silver and gold disappeared from
circulation and in 1864 one dollar in
coin would purchase three in greenbacks
What was predicted had taken place
In June, 1864, congress authorized the
treasury to retire $50,000,000 of these
notes. A small amount OF these were
retired under the act of June, 1864, he
fore the passage of the act of April, 1866,
by which the treasury could for six
months retire $10,000.000 per month,
and after that $4,00O,00O per month.
These notes were to be paid in interest
bearing bonds.
This retirement o: the greenbacks could
not have. been made unless the national
banking system had been adopted prior
to 1866.
In December, 1867, there were $685.
100000 i'll greenbacks in circulation, and
in February, 1868, congress decided
that the cancellation of these notes be
suspended. Since that date only about
$40, 100000 have been retired, and to-
day we find in circulation $346, 900, 900.
BY the terms of the greeuback con-
tract they are not payable in coin. But
by the act of March IS, 1869, the gov
eminent soIemnly declared that all these
notes were redeemabe in coin or its
equivalent.
After our nation resumed specie pay
ment in 1879 the greenback has been
paid in gold at the treasury. But here
is a queer situation. The notes them.
selves, by their terms are not payable in
gold or silver, and there is no coin kept
in the treasury for their payment. 1t is