Evening journal., 1912-06-29
NEW NEWS OF YESTERDAY
The Man Who Showed the
Country How TO Stop the
Issuing Of GreenbackS
By Holland

In 1854. when President lincoln
had appointed salnen F. Chase Chief
Justice Of the United States Supreme
Court, he began casting about for
new Secretary Of the Treasury.
william Pitt Fsssenden. then
United States Senator from Maine.
went 70 the White House to urge the
appointment OF a certain man tor the
post UAconsciously 10 himself, while
he was talking to the President Lin
eoln decided to appoint none other
than Fsssenden Secretary of Treas
ury and the first that Fessenden knew
Of this was when he heard his name
read cut in the Senate the next day
as Lincelns choice for the vacant
Cabinet seat.
In the course Of his conversation
with the President about a rev head
for the Treasury Department Senator
Fessendsn spoke very earnestly about
one feature Of Secretary Chase's ad-
ministration. He told the President
that he thought Secretary Chase had
gone much too far in issuing green
backs These were promises 10 nav
specie 70 tbs holders Of the notes. but
they had the quality OF legal tender
which forced them into circulation
They were called greenbacks because
the backs Of the notes we're printed in
green ink. Senator Fesssnden was
afraid that II there we're anv further
issue OF greenbacks the country would
be swamped-there would be Anan-
cal and business decentralization on
account OF the redundancy of uaper
money which could not be redeemed
except az the option OF the govern
ment.
President Lincclr said 70 Mr.. Fess-
snden that he had not doubt thar the
secretary OF the Treasury whom he
was about tc appoint would nnd 9
way by which the grsenback issues
could be storped Even then Senator
Fessenden did not dream that the
President had determined 10 appoint
him Secretary Of the Treasury.
shortly after Senator Fessenden
ouslihed az secretary OF the Treasury.
he called upon the President and said
MI. President, J think ! have hit
upon a way by which We can be FRO
vided with all the money We need
without any new issues Of irrredesnl-
able paper money"
Il reckoned you would do that" Mr..
Lincoln replied, What is your plan"
Il am satisfied that the people Of
The United states will gladly buy gov
eminent bonds IL the issue is Of small
denomination and il the rate Of inter-
est is attractive
u have no doubt at all about that.
the President replied The neonis
submit without complaining 10 heavy
taxation. They would be glad Of
chance to put some Of their money IN
70 government bonds"
Il am sure. went on Secretary
Fessenden. that n we issue say q
hundred millions OF bonds bearing
seven per cent. interest and Of the
denomination Of Atty dolors each.
they will be easily sold AZ par or
better"
The President vac greatly interest
ed, although saving that he knew little
or nothing about practical nnance
but he assured Secretary Fessenden
that he gave cordial approval to his
plan.
At Cabinet meeting a day or two
later, Secretary Fessenden laid the
plan officially before the President
After some discussion one member Of
the Cabinet said
"Fesssnden. n We should sell these
bonds readily. you have solved the
problem how 70 wind up these peril
Gus issues OF greenhaeks"
"If can accomplish this enc thing %
Mr.. Fessenden said. - think I shall
have served the country sufficiently
as Secretary OF the Treasury
With teh approval OF the Fresi-
dents Cabinet, Secretary Fesserden
announced the issue by the govern
rnsnt Of bonds bearing 7.3o per cent.
interest and in denomination Of hfty
dollars or multirles thereof The
bonds we're almost instantly marketed
and the government was again n
needed funds
As soon as the success Of ths issue
had bssn demonstrated, Mr.. Fessen-
den prerared 70 retire from the Treas
urv Department He was elected
Senator from Maine and returned 20
his seat In the Senate His ssrvice
as Secretary Of the Treasury was one
OF the shortest of any occupant Of
that ofnce. But he had passed into
history as man who showed his
ccutnrv how 70 stop the issuing %
sreenhaeks And II was known "a
only few Of the secretarys most
intimate frierds that IL was for this
purposA alone that he consented "a
! serve for brief time.
Copyright. 1919 by p, J Edwards