Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1911-08-16
Solved a Civil War Problem

At the time I saw Mr.. Thompson,
he was one of the most quaint, dryly
humorous and entertaining of all the
men associated with banking whom
had ever met He was about so years
of age, and little man, and though
very rich he seemed to be almost care
less about his dress. His stockings
were precisely similar to the home
spun stockings which he wore when
child. He carried in his waistcoat
pocket leaf Of tobacco from which
Re tore off from time to time little
strips, using them in place of the GUS
tomary fine cut or plug quid. He was
devoted friend Of silver as money
metal and to the day Of his death pre-
dicted that the United States would
be compelled sooner or later to ac-
cept it at a fair ratio with gold as a
money metal.
II should say that it was in April,
1861, that had a consultation with E.
G. Spaulding, the subject of which
was the best way Of providing much
needed currency for the federal gov
ernment," continued Mr.. Thompson.
MIR. Spaulding, who was named for
one of the vice presidents of the
United States, Elbridge Gerry, being
of the Elbridge Gerry family, had
been for several years and was then
a member of congress from Buffalo,
N. Y. He was brilliant lawyer early
banking. 1t seemed to me that he
was just the man, because of his legal
training and his financial and bank
ing experience, to draft the bills
which, if they became laws, would re-
lieve the government-sur entering
upon a great war with a bankrupt
treasury and Sisorganized monetary
system-of all embarrassment respect
ing currency.
"Our first talk upon this subject was
informal, but even then Mr. Spaulding
had in mind the issuing of legal-tender
notes. I, on the other hand, had in
mind the creation of national bank
ing system, because I believed that
the banks, if nationalized, would fur
nish a great market for government
bonds, and that these bonds could be
utilized as security for national bank
notes. | told Mr.. Spaulding with great
positiveness that il we had national
banking system, national bank note
issued by Maine bank would pass
current in California.
well, we had a good many talks
and I went over to Washington very
often in connection with the matter. |
saw that Mr.. Spaulding was com
mitted to the legal-tender note plan.
although he expressly told me that
currency Issue Of that kind was only
justified as d war measure But he
warmly accepted the main features of
my national banking plan, and he
drafted the original bills which pro-
vided for the issue of legal-tender
notes, and for the creation of the ma
tional banking system
Immediately after the national
bank act was passed, organized the
| first national bank, certainly In the
east, and / believe in the whole conn
try. And now you have the reason
why they sometimes call me the fNth-
er of the national bank, and for many
years Mr.. Spaulding was designated
| as the father OF the greenback.'"
'@But why greenback?" l asked.
Simply because the first legal-ten-
der notes issued under the law were
upon their reverse side printed in
green ink. That nickname was an.
Piled to them as soon as they ap-
peared, and it is name which has
stuck to them over since"
Copyright 1911, by E. J. Edwards. Al
Rights Reserved.l