The Washington herald., 1909-02-07
FISCAL MEASURES OF THE
LINCOLN ADMINISTRATION
By hon. ALIEN DEL MAR.


Copyright 1879. By The Chicago rrio'Tue-f
Salmon P. Chase. Mr.. Lincoln's Seere-
.sry Of the Treasury, was the author Of
some Of the boidest measures Of finance
ever undertaken By a national adminis-
trstion in a time Of war. The principal
ones we're four in number; the establish
uent Of an inconvertible currency which
would not ruinously depreciate; the sue
cessful floating of nearly $2.oS0.0oo.000 OF
loans; the creation Of new and untried
national banking system in place OF
long established State banking system,
and the maintenance during four years Of
The greatest armies and the most desper-
ate war which the world had ever Wit
messed
These measures we're described 10 me
by the author himself It was as finan-
cisl editor that first came TO know Mr-
Chase; it was as financial officer Of the
government that I again met him. when
he lived in T street, and It was as a
financial author that after he had been
appointed 70 the Chief Justiceship,
discussed with him at his new residence
in II street. Washington. the fiscal
ues sures Of the Lincoln administration
These conversations. therefore. nearly
always turned upon the finances. They
took place Of evenings. IN his study. when
the strain Of the days work had given
place 20 postprandiaI relaxation.
recall them with the pleasure afforded
BY personal contact with this HlustriOus
statesman; cannot revert 10 them with
..rs-
situdes Of fortune and the ingTatitude or
neglect Of his country in not ameliorat-
ing them. Mr.. Chase, after handling bill
lions Of the public money and securities.
died poor and in debt He frequently
complained in private that his salary
scarcely suficed to pay his household ex-
penses.
His UnaIIOycd Patriotism.
The society Of Mr. Chase had long be
fore changed my original attitude OF
criticism toward him into one Of respect,
veneration. and affection. Notwithstand-
ing his III timed yearnings for the Presi-
dency, IL was impossible not 10 be i'm
pressed with his greatness Of soul, his
unaIloyed patriotism and his supreme
confidence, which had manifested itself
from the beginning Of the civil war to
the end Of me reconstruction period. that
the Union would emerge from al its
trials stronger and more glorious than
ever
Within month or six weeks after the
election OF Mr. Lincoln. Howell Cobb.
then Secretary of the Treasury. resigned
his high Office and cast his lot with tie
South. vhereupon President Buchanan
appointed Gen. John A. DIX, Of New
York. 10 I'll the vacant post After M.
Lincoln was inaugurated as President
he sent the names OF his proposed Cabi-
net 10 the Senate. who confirmed them
ali. including that OF Salmon P Chase
for Secretary Of the Treasury. Mr- Chase
had served the country in many ways.
lstterly as United States Senator and
as governor OF Ohio. He was q csndi-
date for the Presidency in the Republi-
can National Convention Of 1852 and
when LincOin's nomination became i'm
minent he threw his half hundred votes
to the winner.
The condition Of the Treasury al the
outset Of the civil war was most depl0r-
able have heard Mr.. Hartley and Mr.
West. both Of whom had been leading Off
GERS OF the Treasury for some twenty
i've or thirty years, describe il with tears
The receipts from customs duties. al
most the only source OF revenue AT that
period, had fallen 10 S3e, ,O0e0O9 a year.
This was less than il had been ten years
previously. The entire receipts. independ-
ent OF loans, were sil.500.00e. Just one
fourth Of the present annual expenditures
Of New York City alone. Neither Mr.
Cobb. nor Gen. Dix. nor Gov. Chase
could float q few millions OF United
States s per cent bonds at par. the bank
ers demanding Q, 10 and even y per cent.
with the privilege at their own option 10
terminate the loans at any time by pay
ing the bonds into the Treasury as cash
for customs duties.
Bankers Exported Gold.
They were not ike the Doge Mocenigo.
Eho. when Venice was threatened with
war. placed his entire fortune at the ser
fell his wealth would be Of more worth
TO him. On the contrary, the moment
trouble commenced. the metropolitan
bankers made haste 10 export their gold,
so that when Gov. Chase screwed so.
000000 out Of them they all with one hon
orabis exception went bankrupt, and
their suspension" was followed BY that
Of nearly every bank in the United
States. They had openly exported s120.-
oG0,o00, and as there was no penalty for
emitting TO report exports OF specie
they had covertly exported almost as
much again. tt is q fair estimate to as
sumo that their apprehension had de-
pleted the country Of nearly 500. 100000 Of
coin and bullion. Mr. Lincoln and his
faithful minister battled with these con
ditions until the situation came 10 mean
either defeat or gTeenbacks. As We shall
presently see. gTeenbaCks won the day
Il IS evident, both from his speeches
In the Senate, the fiscal measures con-
certed with Mr. Lincoln, and his own
earliest public consideration OF the hnan-
cial situation. that Mr. Chase went into
the Treasury with the determination TO
pct an end 10 the monetary issues OF
private banks incorporated by the fndi-
vidual States So early as midsummer.
1851. IN a letter TO Vice-President HamIin. /
he proposed a tax on State bank notes.
At a later date in the same year he pro
posed the organization OF banking assO-
ciaJions whose circulation should consist
only OF notes uniform IN character fur
nished by the government and secured. I
as 70 convertibility into coin. bv United
States bonds deposited IN the Treasury. I
This plain intimstion OF the coming
national bank system was issued before
the New York banks suspended What
occurred after suspension is best related
n MT Chsse's own words:
Bankers Refused Bonds.
The government even at that early
time in the war was liable for over a nil /
lion and a quarter day, while the rev
enues did not amount 10 tithe OF that
sum. The bankers would not accept the
5 per cent bonds Of the United States at
less than 20 per cent discount: in other
words. the hest offer I could get was at
the rate Of S40099069 in coins for $5e.00e- !
no in bonds. To accept the notes OF the