Year: 1862

regarded this war measure and In the course OF MS
remarks he saidwe must have no more surfenders OF
rebel prisoners cheerfuly made though Russia FRANCO


England Spain and the combined Powers OF the world ds
mand it. We must stand by our integrity and py the
honor OF the nation and worthy OF the name OF
people shall be sustained The exigencies OF the
times would never compel him Kellogg 10 vote for bill
which in violation Of the constitution for when Con-
gross violates the constitution it but mockery to say
"we are carrying on war under that instrument to
maintain the constitution" He Keogg) argued that it
clearly within the power Of Congress, under the con
stution make the notes proposed legal tender, and
give them value by pedging the entire property OF the
country for their redemption.


Mr. THOMAS, (Union) Of Mass gave the reasons which
would induce him to vote against the bill as il now
stands andm tho Of his constitutional argument
said that the making OF these Treasury notes legal
tender for all past public and private debts would be
breach Of good faith 1t would change substantially the
condition and impair the obligation of contracss


Mr.. EDWARDS, (rep.) of N. H., opposed Mr. Morris
substitute and gave among other for doing so
that it exempted the government from receiving the
notes in payment Of foreign imports This being tho
who would take the paper at par? With regard to
the bill reported from the Committee on Ways
and Means it was based on the faith OF the
country to meet tho indebtedness incurred. II
would furnish the directly without looking to in
terediae negotiation for furnishing hem and therefore
it should receive his Cir Edward's) support.


Mir. SrpawcK, (rep) OF N. ", said they all agreed
upon taxation in form, by which hundred and
fifty millions annually be raised. They all agreed
that hereafter the war should be carried ON vigorously on
the credit he government They all agreed that the
and bonds to be issued must be equal
the demands Of the government. The amount Of the
nOtpe tn he can he imi
difference between the amendments and this bill was,
that the latter had the advantage Of giving the notes cir
cu,aon money while the former would them to
depreciate.


The CHAIRMAN announced that by previous agreements
debate now closed, with the exception OF the reply.
(Crics OF "Thats rightly


Mr.. SpAUlDMG (rep) Of N. Y.-Leaving to the honora
Bile gentleman from the duty Of closing the
debate, 1 desire merely to say few words


Mr.. LovEJoY, (rcp OF ILL.,, to question Of order
II the debate had Closed the gentemans remarks
not in order.


Leave was given to Mr.. Spauldng TO proceed.


Mr.. SrAUIDNc sad-First, We all agree that taxation
the various forms be imposed the amount Of
at least hundred and fifty millions Of dollars on
which the credit Of these and bonds-a
sufficient pay the ordinary expenses Of on


peace footing, the interest all the debt, and
sinking fund to qudate annually portion Of the prn-
cpa--


Mr. LovEJoy (interruptng)-I understood the gentle
say yesterday that we already had an account
about equal the proposed ISSUE want to ask him how
he proposes to get the balance OF what need ime"
diately9


MIR. SrAuIDlNa-I propose TO show how intend to
pay that off, In the second place, agree that here
after the war must be carried principally upon the
credit Of the government and that paper in the form Of
notes and bonds, must be issued TO equally large
amount, which plan is adopted. After deducting
the raised from revenue by taxation and duties ON
imports the Of paper to be issued only be
limited by the actual expenses OF the government The
respective plans Of Msssrs. valandigham Conkling
and Morrill, require tho same amount Of paper TO
be issued legal tender bill proposed by tho Com
mittee Of Ways and Means and supported by the Score


ary of the Treasury third the main difference between


the several plans is that the legal tender bill stamps the
demand notes money with the highest sanction Of the
government to circulate as national currency the same
bank notes. in all the channels OF trade and business
among all the people OF the United States, whilst all the
other plans proposed contemplate the issue Of inferior
currency that will not in my opinion circulate money
either among the banks the people, but will on tho
contrary, be deprecated and sold at large
discount by all officers. soldiers and others, that
are compelled to receive IL from the government
in payment for services, supplies and materials
furnished. For myself prefer to issue the demand
notes. based adequate taxation, and with the highest


legal sanction that be given to them by the govern
mcnt.


Mr. STEVENS, (rep) of Pa. in closing the debate said
This bill is a measure Of necessity not choice No one
would willingly paper currency redoemable
ON demand and make it O legal tender II is de-
srabe 10 depart the circulating medium which, by


the common consent Of civilized nations forms the stand
ard of value. But IL s not fearful measure and when
rendered necessary by exgences ought to produce no
alarm Is the measure necessary The late admnistra
ton left debt OF about 500 600 ,00O and bequeathed
u.s. also an expensive and formidable rebellion.
This compelled Congress- in extra session. 10 authorize
Joan Of two hundred and fifty millions. hundred mil


lions we're seventhrty per cent; dity millions
four per cent 6y millions used in demand notes
payable in coin; leaving afty millions undisposed Of
Before the banks had paid much Of the last loan they
broke down under it, and suspended specie payment
They contrvcd 10 pay this loan not in coin but in
demand notes Of the government which kept them at
par. But the last of that loan paid yesterday and
on the day the banks have refused to receive them
They must sink deprecated currency. The remaining
fifty millions the Secretary Of the Treasury has been
able to negotiate. A small portion Of it-about ten
milons-has been issued at seven-thiry nrpayment Of
debts; and all this has been used, and there
floating debt audited and unauded Of at least hun
daed and thirty millions The Secretary intended to
the balance of the authorized loan by paying out to
creditors in notes of seven thirty. This becoming
known, they Immediately sunk to four per cent and IL
the secretary had perscvcred IL Ia believed they would
have down to ten per cent discount But even IL
these could he used there would due about ninety
Millions the payment OF which is urgently demanded
The daily expenses of the government about
millions. To carry till the meeting
OF Congress would take six hundred millions more,
making. before legislation could be had, about
hundred millions be provided for The grand question
is how this large amount be rascdS The Secretary
Of the Treasury has used his best efforts to negotiate
loan of about fifty millions, and has failed. Several
modes Of relief have been suggested The most obvious
TO borrow government bonds bearing interest OF
six per cent which only be effected BY put
ting the bonds into the market to the highest bidder G
but a small sum were wanted II might probably be had
at small discount, but IL sufficient TO meet wants
up 10 next December, seven hundred millions ware