able as the productions of the farmer and mechanic, for it is not as indispensable as are food and raiment. Our army and navy must have what is far more valuable to them than gold and silver. They must have food, clothing, and the material of war. Treasury notes issued by the Government, on the faith of the whole people, will purchase these indispensable articles, and the war can be prosecnted until we can enforce obedience to the Constitution and laws, and an honorable peace be thereby secured. This being accomplished, I will be among the first to advocate a speedy return to specie payments, and all measures that are calculated to preserve the honor and dignity of the Government in time of peace, and which I regret are not practicable in the prosecution of this war.

I do not despair; on the contrary, I have an abiding faith in the patriotism, firmness, and resources of the people to maintain this Government. I feel that we are in great peril; but when the people and our rulers become sufficiently aroused to fully appreciate the magnitude and probable duration of the rebellion-a rebellion that has grown into most gigantic proportions—then shall we be able to put forth the energy and the means necessary to crush it.

An early and successful advance of our armies is of the utmost importance. We need such an advance to sustain the financial credit of the Government. We need it to prevent foreign intervention; we need it to rouse the flagging energies of the people; and above all, we need it to vindicate the courage and invincibility of our brave soldiers, who are so anxious to be led on to victory.

.

APPENDIX.

TABLE A.

True Value of Real and Personal Estate, according to the seventh Census, 1850, aud the eighth Census, 1860, respectively.

* Only 13 counties in California have been returned.

† In New Jersey, as the real estate was only returned, the above is partly estimated.

TABLE B.

Table showing the Federal Population, and the Assessed Value of Real and Personal Property of the Several States of the Union.-Census 1860.

At the conclusion of Mr. Spaulding's speech, Mr. VALLANDIGHAM obtained the floor and offered a substitute for the bill, which was read. (Congressional Globe, p. p. 526.)

MR. STEVENS said :-"I will follow an example set me, and give notice of an amendment which I shall offer to the bill. It is to make the semiannual interest payable in coin. I shall make it when we reach the proper time and place."

MR. VALLANDIGHAM.-"That is included in the amendment I propose. Mr. Stevens-"Yes! but my amendment is to the original bill.” Mr. Vallandigham-“I do not desire to speak upon the bill at this stage of the debate, and therefore I will cheerfully yield to my colleague (Mr. Pendleton), who proposes to discuss the constitutional question of legal tender." Mr. Pendleton obtained the floor.

MR. PENDLETON'S SPEECH.

MR. PENDLETON, on the 29th inst. made an elaborate speech in opposition to the constitutionality as well as the expediency of the legal tender clause. He commenced by saying,

66

"MR. CHAIRMAN, I was glad to hear the announcement made by the gentleman from Vermont, (Mr. Morrill), a member of the Committee of Ways and Means, by my colleague (Mr. Vallandigham), by the gentleman from New York, (Mr. Roscoe Conkling), and by the gentleman from Pennsylvania, (Mr. Stevens), that they each intended to propose to the House to make changes in this bill, either by way of amendment or substitute."

MR. PENDLETON-"These notes are to be made lawful money and a legal tender in discharge of all pecuniary obligations, either by the Government or individuals, a character which has never been given to any note of the United States, or any note of the Bank of the United States by any law ever passed. Not only, sir, was such a law never passed, but such a law was never voted on, never proposed, never introduced, never recommended by any department of the Government; the measure was never seriously entertained in debate in either branch of Congress." MR. CONKLING interrupting, enquired "whether the present Secretary is in favor of making paper a legal tender?" MR. SPAULDING—"In reply to the question of my colleague, I will say that the Secretary of the Treasury has been called upon for his opinion in regard to this bill. We were assured that his reply would be sent to us yesterday, but we did not receive it. We expect his answer every hour." MR. CONKLING "I am not certain that I understand what my colleague said. Does he expect a letter from the Secretary of the Treasury which will contain his views on the financial question, and also on the legal question?" Mr. Spaulding"Upon the bill specifically." Mr. Conkling-"Containing the legal tender clause ?" Mr. Spaulding-"Yes, sir." MR. PENDLETON-"I cannot answer the question so far as the opinions of the present Secretary of the Treasury are concerned. I affirm again the statement I have made, that a proposition of this kind has never been recommended to either House of Congress by any Department of the Government from its organization The report of the Secretary of the Treasury, made at the opening of the Session, contains no such recommendation.”

Mr. Pendleton contended that the bill, if passed, would impair the obligation of past as well as of future contracts, and that it would make it illegal to make a contract for dealing in gold or silver coin, for the reason that these legal tender notes might be tendered in payment of coin contracts. He insisted that there

was no express power granted in the Constitution to make United States notes lawful money and a legal tender in payment of debts, and that the power "to regulate commerce" gave no such power. He then said:

"The gentleman from New York (Mr. Spaulding), in his argument yesterday, deduced this power from the general powers of the Government. He told us that Congress had power to lay and collect taxes; to raise and support armies, to provide and maintain a navy, and that all power necessary to effectuate these purposes was expressly given by the general grant of the Constitution. If I should admit his statement in the very language in which he has made it, am I not entitled to ask whether he has shown us any legitimate connection between making these notes a legal tender and the power to raise an army? Might I not ask whether the repudiation of the obligations of the Government to pay its interest is a legitimate means for providing and sustaining a navy? Whether impairing the obligations of contracts between private individuals throughout the country, will in any degree assist the Government in its great duty in laying and collecting taxes? We had no demonstration of the necessity or propriety of these means to accomplish those ends.

The gentleman spoke quite at large in reference to the sovereign power of the Government. He told us that this power was not prohibited in the Constitution.' He told us that in times of great emergency every thing may be done except that which is prohibited; and he read an argument from the Attorney General which concludes as it began, with the proposition that such a power is not prohibited to Congress. Sir, I repudiate this whole idea. I think it has no solid foundation in the Constitution. When I come to examine the powers of Congress according to the principles of interpretation to which I adhere, I look to the grants of the Constitution. I find no grant of this power in direct terms, or, as I think, by fair implication. It is not an accidental omission: it is not an omission through inadvertency. It was intentionally left out of the Constitution, because it was designed that the power should not reside in the Federal Government."

MR. PENDLETON continued his argument at great length against the Constitutional power of the government to issue legal tender notes to circulate as money. He quoted from Story, Madison, Hamilton, Calhoun, and made long extracts from Mr. Webster's speeches which were made while the government was on a peace footing, denying the power of the Government to issue currency and make it a legal tender. He insisted that no State, and that even Congress itself could not make anything but gold and silver coin a legal tender in payment of debts. That the language of