The Washington herald., 1909-02-07
HIS sheet Anchor.

all along opposed 10 any further issues
Of legal tenders than what were abso-
luteiy necessary.
His sheet Anchor.
That principle was my sheet anchor
and everybody knew that I held by il
and intended TO hold by It so long as the
cable would bear the strain When an
issue OF bonds became imperative. 1 con-
suited the bankers II they refused me,
l issued such an additional amount Of
currency as tended to make money
cheap and lower the current rates Of in
terest 10 the poiEt where the seven-thir-
ties, skies. or hves Of the government
commanded premium. This device usual
~ 1Osted the loan. On one occasion.
/ / told them that unless they accepted
my terms I would 20 back 10 Washing
ton and issue such a food Of greenbacks
;hat II would soon cost them 81 l,0o0 TO
buy a breakfast Then I got the money"
Are you OF opinion, Judge. that the
rate Of interest is affected by the supplies
or new money!"
Yes: but only until the new currency
has entered the circulation and raised
prices. Permanently. the rate Of interest
I depends upon the profits Of trade
What agencies we're employed 20 Sc
cure diffusion OF ioans?" I asked.
My first plan was 10 employ a vast
number Of agents in innumerabie places,
chiefly revenue officers and postmasters.
10 distribute the sevsn-thirties. Al the
outset it worked fairly well: but for rea-
sons which need not be enlarged upon,
the plan had TO be abandoned. After be-
ing satisfied that the capitalists were not
/ rich enough 10 take al that necessity
obliged US 70 offer. We turned again 10
the people, that exhaustless and unfail-
I ing source OF every kind OF satisfaction.
CloG are, OF course. aware that 1 was
/ formerly a Democrat. and that Demos
mean the people)
Employs Jay Cooke.
i employed Mr.. Jay Cooke, an Ohio
banker OF Integrity and experience. as
the person. who, as far as / knew. sp-
peared 10 be best qualified for the task
He was placed under adequate bonds
and directed 20 20 ahead. OF course. the
Treasury lent its powerful assistance IN
every way that could be suggested The
successful placing Of -four hundred mil
lions Of 5.20s in 1853 distributed through
out the whole country not in possession
or the Confederstes. amply justified both
the plan and the choice Of an agent !
know Of no parallel 10 this financial
/ achievement. Meanwhile the national
bank system was absorbing the loans IN
another direction. II began by prscti-
c9liy sweeping away the entire State
banks circulation. converting an equal
amount of capital ;nto United States
bonds and locking up the bonds In the
/ Treasury as security for the new circu-
lation notes; thus taking them out OF the
market As the process continued, IL
passed beyond the boundaries % the
State banks circulation, until il alb
sorbed several hundred millions OF bonds.
These various means enabled me to raise
during my term OF Office upward Of
seventeen hundred millions Of dollars.
and this. too. while q tremendous civil
war was being Waged and without injur-
ing the business or prosperity OF the
country. indeed. trade. inventions, and
general progress we're never before and
have never been since 50 active and ben
eficial
Judge. how DO you account for the
fact that the ineOnvertible greenback
currency never fell into the ruinous con-
6ition Of the continental currency. the
notes of the Bsndue Royale John Laws
bank, or the French revolutionary as
signats and msndatsgT
Assured Note Payments.
Said Judge Chase: The attitude OF
Congress. Of the President, Of the secre-
tary Of the Treasury, in short. Of the en-
tire government, afforded the fullest as
surance that the notes would be paid at
their face value In coin; they were made
receivable at par for bonds. the interest
OF which was payable IN coin; coin
sinking fund was maintained; and the
customs duties were always required to
be paid IN coin"
But did not the high premium on gold
prove that these assurances were but
lightly esteemedg"
No" replied the judge. Tt is a mis-
take TO assume that the premium on gold
correctly represented the depreciation OF
the greenbacks OF the popular estima-
ton Of the probability OF their redemp-
ton in coin. The market supply Of coin
was not free, but largely controlled by
enemies OF the country abroad and by
spectators at nome. could supply IN
questionable evidences Of the correctness
Of this view. Meanwhile concluded he.
with a smile. you may accept my en-
phatic declaration that such was the
case.
I end these few memoirs Of Chief jus
tice Chase with q quotation from one OF
his communications to Congress in 1862
II seems almost prophetic:
No early day viii probably witness
the reduction Of the public debt to the
amount required as a basis for secured
circulation. Should no future wars ar
rest reduction and again demand expen-
ditures beyond revenue. that day will,
however. come at last. When il shall ar
rive the debt may be retained on low
interest at that amount. or some other
security for circulation may be devised.
or, possibly, the vast supplies OF our
rich mines may render ali circulation un-
advisable except gold and the absolute
representatives and equivalents. dollar
for dollar. Of gold in the Treasury. OF on
safe deposit elsewhere. But these con-
siderati0ns may be for another genera
ton.
Yet TO this day the honorable remains
CT this great statesman and stanch pa
triot lie buried in a Cincinnati grave
yard. without so much as a tombstone
over them. ingratior Roma,
Colleagues of Lincoln.
BY SENATOR CULLOM.
rer-,... Al -rl,aa1o-,s cso.-.