Secretary of the Treasury for the register; and all the provisions of the act entitled "An act to authorize the issue of treasury notes," approved the twenty-third day of December, one thousand eight hundred and fifty-seven, so far as the same can be applied to the provisions of this act, and not inconsistent therewith, are hereby revived and re-enacted. As soon as the bill was printed, it was taken up in the Committee of Ways and Means, and duly considered. Mr. Hooper took active ground in favor of the bill. Mr. Stevens at first had some doubts about its constitutionality, but very soon decided to support the measure. Mr. Morrill, Mr. Horton, and Mr. Corning actively opposed the bill in the Committee and in the House. Mr. Maynard and Mr. Stratton took no active part in the discussions while the bill was under consideration in the Committee. It is believed, however, that Mr. Maynard was favorable to the bill from the start, while Mr. Stratton was very much in doubt what course he would take in relation to it, either in Committee, or in giving his vote in the House. Mr. Phelps was absent, and took no part while the bill was under discussion in the Committee. Mr. Spaulding finding that the Committee were about equally divided, and that some members of the Committee had doubts as to the constitutional power of Congress to make treasury notes a legal tender, called upon the Attorney General, Hon. Edward Bates, for his opinion. He declined to give an official opinion, but consented to write an un-official note in favor of its constitutionality. The following is a copy of the opinion thus obtained: Hon. E. G. Spaulding, M. C., MONDAY EVENING, Jan. 6, 1862. At the National Hotel: DEAR SIR-Since you did me the honor of a call this afternoon, and propounded to me a question arising out of the pending bill "To authorize the issue of treasury notes payable on demand," I have given to the subject such attention as the very brief interval afforded, and proceed at once to answer. In the first place, permit me to say, that my views of the place I hold forbid me to give your question a formal and official answer, but in proof of the high respect which I entertain for you and your honorable Committee, I, as a private man, and a professed constitutional legist, in all frankness will give you my opinion upon the point proposed, and this, with all brevity and without argument, for the time does not allow elaborate consideration. The bill, after providing for the issue of treasury notes, contains i. e. this clause, "and which treasury notes shall be a legal tender in payment of all debts, public and private, within the United States," and you desire my opinion whether this clause is, or is not, constitutional. Certainly the Constitution contains no direct verbal prohibition, and I think it contains no inferential or argumentative prohibition that can be fairly drawn from its expressed terms. The first article of the Constitution, section eight, grants to Congress specifically a great mass of powers. Section nine contains divers limitations upon Congress, upon the United States, and upon individuals; and section ten contains restrictions upon the several States. This last section is the only one that treats on tender. "No State shall make anything but gold and silver coin a tender in payment of debts." This applies to a State only, and not to the nation; and thus it has always been understood with regard to the next preceding clause in the same section-no State shall "emit bills of credit." The prohibition to emit bills of credit is quite as strong as the prohibition to make anything but gold and silver coin a legal tender; yet nobody doubts-Congress does not doubt its power to issue bills of credit. Treasury notes are bills of credit, and I think the one is just as much prohibited as the other-neither is forbidden to Congress. The time is too short for argument, and so I remain, with all respect, Your obedient servant, EDWARD BATES. Mr. Spaulding read this letter to the Committee of Ways and Means. The discussion on the bill had continued for several days, and when the vote was finally taken, it appeared that the Committee were at first equally divided-Mr. Spaulding, Mr. Hooper, Mr. Stevens, and Mr. Maynard voting in the affirmative, and Mr. Morrill, Mr. Horton, Mr. Corning, and Mr. Stratton in the negative. Mr. Stratton finally consented to vote for the bill, so as to allow it to be reported to the House. The bill was thus passed through the Committee of Ways and Means. On the 7th of January, 1862, Mr. Spaulding reported the bill from the Committte to the House. It was read twice, committed to the Committee of the whole House on the state of the Union, and ordered to be printed. (House Bill No. 187.) Mr. Spaulding, from the Committee of Ways and Means, reported the following bill: A BILL To authorize the issue of demand Treasury notes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, for temporary purposes, the Secretary of the Treasury be, and he is hereby authorized to issue, on the credit of the United States, one hundred millions of dollars of Treasury notes, not bearing interest, payable generally, without specifying any place or time of payment, and of such denominations as he may deem expedient, not less than five dollars each; and such notes, and all other Treasury notes payable on demand, not bearing interest, that have been heretofore authorized to be issued, shall be receivable for all debts and demands due to the United States, and for all salaries, dues, debts, and demands owing by the United States to individuals, corporations, and associations within the United States; and shall also be lawful money, and a legal tender in payment of all debts, public and private, within the United States, and shall be exchangeable in sums not less than one hundred dollars, at any time, at their par value, at the Treasury of the United States, and at the offices of the Assistant Treasurers in New York, Philadelphia, St. Louis, and at the depository in Cincinnati, for any of the six per centum twenty years coupon bonds or registered bonds which the Secretary of the Treasury is now, or may hereafter be authorized to issue; and such Treasury notes shall be received the same as coin, at their par value, in payment for any bonds that may be hereafter negotiated by the Secretary of the Treasury; and such Treasury notes may be re-issued from time to time as the exigencies of the public service may require. There shall be printed on the back of the Treasury notes, which may be issued under the provisions of this act, the following words: "The within note is a legal tender ia payment of all debts, public and private, and is exchangeable for the coupon or registered bonds of the United States bearing six per centum interest." Such Treasury note shall be signed by the Treasurer of the United States, or by some officer of the Treasury Department designated by the Secretary of the Treasury, and shall be countersigned by the Register of the Treasury, or some officer of the Treasury Department designated by the Secretary of the Treasury for the Register; and all the provisions of the act entitled "An act to authorize the issue of Treasury notes,” approved the twenty-third day of December, one thousand eight hundred and fifty-seven, so far as the same can be applied to the provisions of this act, and not inconsistent therewith, are hereby revived and re-enacted; and the sum of one hundred and fifty thousand dollars is hereby appropriated, out of any money in the Treasury not otherwise appropriated, to enable the Secretary of the Treasury to carry this act into effect. Soon after Mr. Spaulding introduced his bill proposing the issue of legal tender notes to circulate as money, he received many letters criticising the measure in rather severe terms. Among others, Mr. Isaac Sherman, of New York, an old friend, addressed a letter to him of this character, bearing date January 4th, 1862, and at the same time suggesting very heavy taxation in various forms, as the best plan for raising the money to carry on the war. To this letter Mr. Spaulding made the following reply: Isaac Sherman, Esq., New York: HOUSE OF REPRESENTATIVES, DEAR SIR-In reply to yours of the 4th inst., I would say that the Treasury note bill for $100,000,000 agreed upon in Committee yesterday is a measure of necessity and not one of choice. You criticise matters very freely, and very likely you may be right in what you say. We will be out of means to pay the daily expenses in about thirty days, and the Committee do not see any other way to get along till we can get the tax bills ready, except to issue temporarily Treasury notes. Perhaps you can suggest some other mode of carrying on the Government for the next one hundred days. You do not pretend that any considerable amount of taxes can be collected for the next three months, even under your plan. It is much easier to find fault than it is to suggest practicable means or measures. We must have at least $100,000,000 during the next three months, or the Government must stop payment. With the navy and an army of 700,000 men in the field, we cannot say that we will not pay. I will thank you to suggest a better practicable mode of getting $100,000,000 of paying means during the next three months. I would be glad to adopt it, and the Committee would be glad to adopt it. Let us have your specific plan for this purpose-one that will produce the money --and we will be very much obliged to you. In haste. Yours truly, E. G. SPAULDING. P. S.-I am as impatient as you can be for an early and successful advance of the army, so important at this time to sustain the credit of the Government. Will it be done? You are just as well informed on that subject as any of us. I say to you privately that I could find fault more loudly than you do, but I will not do that without being able to suggest a practicable remedy; and I might say many things to you, personally, that I might not put on paper. Confidentially yours, MR. ISAAC SHERMAN'S LEtter. Hon. E. G. Spaulding: E. G. S. NEW YORK, Jan. 22, 1869. I have received your letter of the 20th, and inclosed I send a letter which you addressed me January 8th, 1862, and this letter fully explains your motives in advocating the legal tender act. I will add that I became fully satisfied that the immediate wants of the Government rendered it absolutely necessary that legal tender notes should be issued. It is possible that a good tax bill, passed and enforced in 1861, might have averted the necessity of the legal tender act; but in 1862 it was impossible to pay the expenses without an issue of Government paper as currency. I was shocked at first at the idea of issuing paper, but I have always since said that you finally convinced me of the absolute necessity at the time of the paper issue. I consider your letter historical, and after copying, I wish you would return it to me. Yours truly, BANK DELEGATES IN WASHINGTON-MEETING ISAAC SHERMAN. AT THE TREASURY After the legal tender bill was reported from the Committee of Ways and Means by Mr. Spaulding, and published in the newspapers of the principal cities, opposition to it manifested itself in various ways. At first the New York city press were generally opposed to the legal tender clause. The Times and Herald early came into the support of the measure. The Tribune and Commercial Advertiser appeared to be in some doubt, but in their editorial columns opposed it. The Evening Post, World, and Journal of Commerce were decidedly hostile, and opposed the measure throughout. Delegates from some of the banks in New " York, Boston and Philadelphia, appeared in Washington to oppose the bill. The reporters of the New York press, at the time, preserved a tolerably accurate account of their doings, which may be summed up substantially as follows: They organized by appointing Mr. Singleton A. Mercer, of Philadelphia, as chairman, and invited the Finance Committee of the Senate, and the Committee of Ways and Means of the House, to meet them at the office of the Secretary of the Treasury, on Saturday afternoon, January 11th, 1862. The invitation was accepted, and the Convention assembled accordingly at the Treasury Department. Delegates from New York Banks. Mr. CoE, American Exchange Bank. Mr. GALLATIN, National Bank. Delegates from Philadelphia Banks. Mr. ROGERS, Tradesman's Bank. Mr. MERCER, Farmer's and Mechanics' Bank. Delegates from Boston Banks. Mr. HAVEN, Merchant's Bank. Mr. BATES, Bank of Commerce. Treasury Department. SALMON P. CHASE, Secretary of the Treasury. Finance Committee of the Senate. Mr. FESSENDEN, of Maine. Mr. SIMMONS, of Rhode Island. Mr. SHERMAN, of Ohio. Mr. Howe, of Wisconsin. Mr. BRIGHT, of Indiana. Mr. MCDOUGAL, of California. House Committee of Ways and Means. Mr. STEVENS, of Pennsylvania, |