Mr. MORRILL, of Vermont. Mr. SPAULDING, of New York. Mr. STRATTON, of New Jersey. Mr. MAYNARD, of Tennessee. Some of the members of the above Committees of the Senate and House were not present, but there was a very full representation from each Committee. There were some other gentlemen present from Boards of Trade of different cities. Mr. James Gallatin, of New York, made the principal speech against legal tender, and on behalf of himself and the Bank Committees from New York, Boston, and Philadelphia, and members from Boards of Trade associated with them, submitted the following plan for raising money to carry on the war, viz: 1. A tax bill to raise, in the different modes of taxation, $125,000,000, over and above duties on imports. 2. Not to issue any demand Treasury notes, except those authorized at the extra session in July last. 3. Issue $100,000,000 Treasury notes at two years, in sums of five dollars and upwards, to be receivable for public dues to the Government, except duties on imports. 4. A suspension of the sub-Treasury act, so as to allow the banks to become depositories of the Government of all loans, and to check on the banks from time to time as the Government may want money. 5. Issue six per cent. twenty year bonds, to be negotiated by the Secretary of the Treasury, and without any limitation as to the price he may obtain for them in the market. 6. That the Secretary of the Treasury be empowered to make temporary loans to the extent of any portion of the funded stock authorized by Congress, with power to hypothecate such stock, and if such loans are not paid at maturity, to sell the stock hypothecated for the best price that can be obtained. These propositions having been read, the Secretary and Finance Committees of the Senate and House expressed themselves favorable to the first proposition to raise by taxation $125,000,000 a year, over and above duties on imports. It will be observed that this plan did not include the national currency bank bill, recommended by the Secretary of the Treasury in his Annual Report, and was not, therefore, in this respect, satisfactory to him. The meeting was somewhat conversational in character, but there appeared to be a general dissent by the Secretary and Com mittees from all the other propositions. Mr. Hooper expressed very decidedly his dissent to them, and was in favor of the legal tender act as the best mode of providing the means. The only remarks I can find reported as being made by any member of the Committees of the Senate and House are in the New York Tribune, January 13, 1862, in substance as follows: "The Sub-committee of Ways and Means, through Mr. Spaulding, objected to any and every form of 'shinning' by Government through Wall or State streets to begin with; objected to the knocking down of Government stocks to seventy-five or sixty cents on the dollar, the inevitable result of throwing a new and large loan on the market, without limitation as to price; claimed for Treasury notes as much virtue of par value as the notes of banks which have suspended specie payments, but which yet circulate in the trade of the North; and finished with firmly refusing to assent to any scheme which should permit a speculation by brokers, bankers, and others, in the Government securities, and particularly any scheme which should double the public debt of the country, and double the expenses of the war, by damaging the credit of the Government to the extent of sending it to 'shin' through the shaving shops of New York, Boston, and Philadelphia. He affirmed his conviction as a banker and legislator, that it was the lawful policy, as well as the manifest duty of the Government in the present exigency, to legalize as tender its fifty million issue of demand Treasury notes, authorized at the extra session in July last, and to add to this stock of legal tender, immediately, one hundred millions more. He thought that this financial measure would carry the country through the war, and save its credit and its dignity; at the same time we should insist upon taxation abundantly ample to pay the expenses of the Government on a peace footing, and interest of every dollar of the public obligation, and to give this generation a clear show of a speedy liquidation of the public debt." This Conference did not result in devising any plan or arrangement which received the assent of either the Finance Committee of the Senate or the Committee of Ways and Means of the House, and the Conference adjourned. The bank delegates and others had further consultations with Secretary Chase, continuing through two or three days, and which finally resulted in an arrangement with the Secretary alone, which was furnished to the agent of the Associated Press and published on the 15th of January, 1862, as follows: "The results of the various conferences held in Washington by representatives from Boards of Trade, Chambers of Commerce, and Banking institutions, among themselves, and with the Secretary of the Treasury, may be summed up as follows: 1. The general views of the Secretary of the Treasury are assented to. 2. The banks will receive and pay out the United States notes (authorized by act of July last) freely, and sustain in all proper ways the credit of the Government. 3. The Secretary of the Treasury will, within the next two weeks, in addition to the current daily payments of $1,500,000 in United States notes, pay the further sum of at least $20,000,000 in 7-30 bonds to such public creditors as desire to receive them, and thus relieve the existing pressure upon the community. 4. The issue of United States demand notes not to be increased beyond the $50,000,000 authorized by the act of last July, but it is desired that Congress should extend the provisions of the existing loan acts, passed at the extra session in July, so as to enable the Secretary to issue in exchange for United States demand notes, or in payment to creditors, notes payable in one year, bearing 3.65 per cent. interest, and convertible into 7-30 three years bonds, or to borrow under the existing provisions to the amount of $250,000,000 or $300,000,000. 5. It is thought desirable that Congress should enact the national currency bank bill, embracing the general provisions recommended by the Secretary in his Annual Report. 6. It is expected that this action and legislation will render the making of the United States demand notes a legal tender or their increase beyond the $50,000,000 authorized in July last unnecessary." The Committees of the Senate and House never gave any assent to this agreement made by Secretary Chase with the delegations above mentioned, for the reason that it was not deemed by them adequate to the crisis. A majority of the Committee of Ways and Means adhered to the legal tender bill, then pending in the House, as being a more available plan, and on a much larger scale. They believed it was necessary to authorize immediately an additional issue of $100,000,000 of United States fundable notes, to circulate as money, and be made a legal tender; and that $500,000,000 six per cent. twenty years bonds should be authorized, so as to enable the holders of the notes, when issued, to fund them at any time in these bonds. As soon as the plan of the delegates from New York, Boston, and Philadelphia became fully known to the country, it was very generally disapproved. The press spoke out plainly against the Secretary being authorized to put United States bonds on the market without any limitation as to the price he might obtain for them in the market," as proposed by Mr. Gallatin. Members of Congress generally opposed it and numerous letters were received. by Mr. Spaulding from bankers, and other prominent citizens, in opposition to any such scheme, but at the same time expressing themselves in favor of the legal tender bill and urging its immediate passage. The following is a sample of the letters received about this time by Mr. Spaulding: LETTER OF HON. MOSES H. GRINELL TO MR. SPAULDING. NEW YORK, January 30, 1862. MY DEAR SIR-I thank you for your able speech, and can only say that nine out of twelve persons in this city agree with you. As for Gand a few egotistical gentiemen that act with him, they should be driven out of Washington, as they only embarrass the Government; and it seems to me that their policy, if adopted, would soon ruin the Government credit, and break down the country. Go a direct tax for one hundred and fifty or two hundred millions, and then issue one hundred and fifty millions Treasury notes legal tender, and we will go on without any trouble, and the Government credit will be saved from disgrace. There are not eight bank presidents that side with G. He is an odd fish-has very little influence here. Some action must be had soon, or our country will be in a deplorable financial condition. Yours truly, M. H. GRINELL. Hon. E. G. SPAULDING. LETTER FROM HON. LEWIS F. ALLEN. Hon. E. G. Spaulding: BLACK ROCK, January 31, 1862, MY DEAR SIR-I have just read, with great pleasure, your very able speech on the Treasury note bill you have introduced into Congress. The principle and plan are both right, and what the country demands; and I trust both Houses will put it right along through, regardless of what the New York note shavers and usurers may say, for they, and the like, in our large Atlantic cities, are the only ones who will oppose it, and that for the reason that they can not make their ten, twenty or fifty per cent., by buying in and selling out the stocks which they want passed by the Government, in place of the sound, available Constitutional currency which you propose. I see by my Tribune to-day, that there is good prospect that your bill will pass without material modification, if any. I hope so, and that speedily. Truly yours, L. F. ALLEN. LETTER FROM J. M. GANSON, BANKER, OF BUFFALO. Hon. E. G. Spaulding, Washington; NEW YORK, January 13, 1862. DEAR SIR-Your bill on Finance is received. I understand the pulse of the people. Now, then, put on a war tax of $200,000,000, issue $150,0000,000 demand notes, and ten, fifteen and twenty year bonds, seven per cent. "coupon bonds," redeemable at the pleasure of the Government within that time, and then go ahead. Put our Generals into the saddle, and all this fussing and fooling will come to an end in ninety days. One grand rush from all points of our armies will cow down the rebels. Send home the Bank Committee; their proposition is awful. Let a few leading minds, in connection with Chase, nerve up, and let the demand notes assume the place of specie in every particular. A tender for deposits in State banks, a tender for State bank notes, and receivable for all Government dues. We must have one terrible bloody battle, and must not shrink from the responsibility. Let members of Congress cease abusing our Generals. Put the right men in the right place. Have no proclamations issued by the Generals unless passed upon by Lincoln and McClellan jointly. Hard work, less pleasure-seeking, good financiering and energy, will wind up this war shortly, and nothing else will do it. I remain yours truly, J. M. GANSON. LETTER FROM JAMES W. SIMONTON, ESQ., OF N. Y. TIMES. Hon. E. G. Spaulding: WASHINGTON, January 13, 1862. DEAR SIR-I failed to make myself clearly understood in our conversation last evening, or rather I failed to tell the whole story in suggesting payment of interest on demand notes. What do you think of providing for the payment of interest on demand notes (at a less rate than that on loan bonds) from their date, the interest on such demand notes to be allowed and paid only when they are presented to be converted into bonds? Would not the tendency of such an arrangement be to keep the current of demand notes steadily moving towards the loan office, and prevent any possible depreciation of either class of paper? Of course, you could devise a means (if you desire) of preventing the payment of back interest on debts already accumulated. In haste. LETTER FROM THOMAS DENNY & CO., BANKERS AND BROKERS, NEW YORK, January 13, 1862. Hon. E. G. Spaulding, House of Representatives, Washington, D. C. : DEAR SIR-Although not personally acquainted with you, we take the liberty of giving you, in few words, our views as to the most desirable measures to be adopted for the finances of the country at the present time. It will not do at all to crowd on the market at the present time Government stock fast enough to raise the amount of money needed to meet our wants. The price would run down so fast that people would become alarmed, and afraid to take it, except at a ruinous sacrifice, if at all. The best plan is that which, we understood, you propose to adopt. Issue $100,000,000 to $150,000,000 demand notes, and pay them out as the vants of the Government require; make them a legal tender in all transactions of business in our country; make them convertible at the pleasure of the holders into a 6 per cent. stock, or even into 7-30 three year notes, unless there is some serious objection on account of the previous negotiations of the 7-30 notes; pass a tax bill which will produce $100,000,000 to $150,000,000. The above plan will furnish abundant means to the Government, and will meet the approbation of the people. It will furnish an excellent circulation to the whole country, facilitate all business transactions among the people, make the money market easy, and raise the prices of Government stocks so that loans can be negotiated on favorable terms when more money if wanted, especially if, in the meantime, the rebellion is pretty well crushed down. If the above plan is adopted, public sentiment will make it necessary for the banks to receive and pay out the demand notes, and the whole effect will be very salutary on our national affairs. The tax bill will |