the Constitution, and the weight of authority, it seemed to him, settled the question that Congress had not the power to do that which it is proposed shall be done by the provisions of this bill. He concluded as follows:

"Let gentlemen heed this lesson of wisdom. Let them, if need be, tax the energies and wealth of the country sufficiently to restore the credit of the Government. Let them borrow whatever money in addition may be necessary-borrow to the full extent that may be necessary-and let us adhere rigidly, firmly, consistently, persistently, and to the end, to the principle of refusing to surrender that currency which the Constitution has given us, and in the maintenance of which this Government, has never, as yet, for one moment wavered."

The letter of Secretary Chase of the 22d inst. was regarded by a majority of the Committee of Ways and Means and many Members of the House, as non-committal on the legal tender clause of the bill, and many believed that when pressed to a decision, he would declare against its constitutionality. In order to obtain the opinion of the Secretary more fully, MR. CORNING offered a resolution in the Committee of Ways and Means, which was adopted, referring the bill (No. 240) to the Secretary, and requesting him to communicate to the Committee at as early a day as possible, his opinion as to the propriety and necessity of its immediate passage by Congress. After considerable delay the Secretary sent to the Committee of Ways and Means the following reply:

EXTRACT FROM A LETTER OF THE SECRETARY OF THE TREASURY TO THE COMMITTEE OF WAYS AND MEANS,

TREASURY DEPARTMENT, Jan. 29, 1862. SIR: I have the honor to acknowledge the receipt of a resolution of the Committee of Ways and Means, referring to me House bill No. 240, and requesting my opinion as to the propriety and necessity of its immediate passage by Congress.

The condition of the Treasury certainly needs immediate action on the subject of affording provision for the expenditures of the Government, both expedient and necessary. The general provisions of the bill submitted to me, seems to me well adapted to the end proposed. There are, however, some points which may, perhaps, be usefully amended.

The provision making United States notes a legal tender has doubtless been well considered by the committee, and their conclusion needs no support from any observation of mine. I think it my duty, however, to say, that in respect to this provision my reflections have conducted me to the same conclusions they have reached. It is not unknown to them that I have felt, nor do I wish to conceal that I now feel, a great aversion to making anything but coin a legal tender in payment of debts. It has been my anxious wish to avoid the necessity of such legislation. It is, however, at present impossible, in consequence of the large expenditures entailed

by the war, and the suspension of the banks, to procure sufficient coin for disbursements; and it has, therefore, become indispensably necessary that we should resort to the issue of United States notes. The making them a legal tender might, however, still be avoided, if the willingness manifested by the people generally, by railroad companies, and by many of the banking institutions, to receive and pay them as money in all transactions, were absolutely or practically universal; but, unfortunately, there are some persons and some institutions which refuse to receive and pay them, and whose action tends not merely to the unnecessary depreciation of the notes, but to establish discriminations in business against those who, in this matter, give a cordial support to the Government, and in favor of those who do not. Snch discriminations should, if possible, be prevented; and the provision making the notes a legal tender, in a great measure at least, prevents it, by putting all citizens, in this respect, on the same level, both of rights and duties.

The committee, doubtless, feel the necessity of accompanying this measure by legislation necessary to secure the highest credit as well as the largest currency of these notes. This security can be found, in my judgment, by proper provisions for funding them in interest-bearing bonds; by well-guarded legislation authorizing banking associations with circulation based on the bonds in which the notes are funded; and by a judicious system of adequate taxation, which will not only create a demand for the notes, but-by securing the prompt payment of interest-raise and sustain the credit of the bonds. Such legislation, it may be hoped, will divest the legal tender clause of the bill of injurious tendencies, and secure the earliest possible return to a sound currency of coin and promptly convertible notes.

I beg leave to add, that vigorous military operations and the unsparing retrenchment of all necessary expenses, will also contribute essentially to this desirable end.

I have the honor to be, with very great respect, yours truly,

Hon. THADDEUS STEVENS, Chairman.

S. P. CHASE.

LETTER FROM HON. S. P. CHASE, SECRETARY OF THE TREASURY.
TREASURY DEPARTMENT, Jan. 30, 1862.

MY DEAR SIR-It was impossible to get my answer ready before yesterday afternoon, when it was sent to the Chairman of the Committee; the messenger boy instructed to deliver it to Mr. Stevens or yourself. The House having adjourned, he left it, he says, for you at the National Hotel instead of at Mr. Steven's lodgings.

Had I been aware that the part read to you would have been acceptable as an extract, (to insert in your speech,) I would have sent it earlier in advance of completing the answer.

I read your speech carefully last night. It seems to me to need no change. You do not attach, I see, so much importance as I do to the Banking Act as a measure of relief; nor so much as I am confident you will upon reflection. I confess too, that I was a little disappointed in being merely let off without censure when I thought myself entitled to some credit. My two first loans were negotiated considerably above the market rate, and the last at a rate almost equal at the time, and below, while the market almost immediately afterwards fell.

Your friend,

Hon. E. G. SPAULDING, House of Representatives.

S. P. CHASE.

LETTER OF JOHN A. STEVENS, PRESIDENT OF BANK OF COMMERCE.

NEW YORK, Jan. 29, 1862. MY DEAR SIR-I beg to offer you my thanks for your able exposition of the financial affairs of the Government. It is clear that there are but the alternatives you state to obtain any substantial relief-the one, to flood the market with the long stocks, submit to the very great depression in the price, and abide the consequences; a great augmentation of the public debt, and ruin to many of the warmest supporters of the Government; the other, for the present to issue demand notes, making them a legal tender in order to enable you to use them. No other plans have been, or in my opinion can be devised, I have long entertained and freely expressed these views, here and in Washington. Even if an attempt, more or less successful, had been made at the first to sell the long stock, yet, with the profligate expenditure since made to such fearful amounts, "to this complexion had we come at last." It is idle to look back, but had there been economy in the great departments of expenditure from the beginning, inspiring full public confidence in their able and honest management, it may be questioned if the necessary funds could not have been provided without making irredeemable paper money. The war would have been shorter, the patriotism of the whole people fully sustained, and foreign nations shown that this Government could not be divided.

I am, dear sir, respectfully and truly yours,

JOHN A. STEVENS.

Hon. E. G. SPAULDING, Washington.

LETTER FROM HON. GEORGE OPDYKE, MAYOR OF NEW YORK.

MAYOR'S OFFICE, NEW YORK, Feb. 3, 1862,

MY DEAR SIR-Accept my kind thanks for your note of yesterday, and also my apology for not having sooner expressed the gratification I felt on reading your very able and statesmanlike speech on the national finances. That speech has received, as it deserved, the hearty approval of every one who fully appreciates the imminent danger we are in of a collapse of the public credit. If the present financial embarrassments of the Government should be aggravated by military disasters, or threatened foreign intervention, it might precipitate a panic that would so depress the public securities, that it would be difficult to obtain supplies for the army, and thus arrest the further prosecution of the war. The only safe way of avoiding this danger is to promptly pass the bill you have introduced and advocated so ably. I shall not fail to give you whatever aid I can. I have tried in several instances to bring Mr. Bryant and Mr. Greeley over to our faith, but thus far without success.

I remain, dear sir, very truly yours,

GEORGE OPDYKE.

COMMONWEALTH BANK.

PHILADELPHIA, Feb. 14, 1862.

MY DEAR SIR-I have read your speech on the finances of the nation with the liveliest interest. It is at once clear, forcible, argumentative and conclusive, worthy alike of a financier, a statesman, and a patriot. R. MORRIS.

Very truly yours,

Hon. E. G. SPAULDING.

LETTER FROM STEPHEN COLWELL, ESQ.

PHILADELPHIA, Jan. 30, 1862.

Hon. E. G. SPAULDING, House of Representatives, Washington.

DEAR SIR-I have just read your very able and statesmanlike exposition of our public finances and our financial policy during the war, with a satisfaction I cannot refrain from expressing to you by letter.

You have grasped the subject strongly and comprehensively, as well as practically. I can not doubt that your views will prevail. I trust you will now extend the same kind of effort to accomplish some harmonious action between the Associated Banks and the Government. I believe that these, and other leading banks can, by the aid of the Treasury and by concert in emergencies, keep the United States notes or currency at par; that is at par less only the special premium on gold, which will not be greater than now if the Treasury currency is well managed. The regular circulation of paper currency will absorb in no very long period the whole $200,000,000, and keep that amount moving. But as currency in the channels of business necessarily at times gorges in particular places, and depreciates at once if the holders are not relieved, such occasions should not only be watched by the fiscal agents of the Government, but the proper remedy should be applied. It would cost the Treasury no sum worth mentioning, if the banks would enter into the plan heartily, to keep their currency in such credit that it would perform with complete success every function of a sound currency. According to my view, the banks are deeply interested in keeping up the credit of those notes. The continued demand for them created by the loans, by the payment of debts at banks, and the payment of taxes, will create a rapid circulation and an absorbing power, which will enable the Government to re-issue the whole amount several times a year. But there can be no doubt that an average of one hundred millions will remain so prominently in the channels of business as seldom to revisit the Treasury. If the banks will lend their aid effectively to support their circulation it is not likely that any further issue will be needed, if they don't, they must depreciate, and further issue will be inevitable, if the war continues. Even the banks should be willing to acknowledge, that whatever their opinion about the propriety of issuing this currency, the whole financial policy of the war and commercial interests of the country, will depend very much on its management. They should accept the necessity and make the best of it; and they can make a very good thing for themselves by making the best of it. There can be no doubt that the city banks can enlarge their discounts by the use of the United States notes beyond what they could safely do upon their own circulation. But I regard their hearty co-operation in sustaining this issue which you have so well justified, as so important, that I think it would be well worth while for the Treasury to pay them for the sort of services they can render. I contributed an editorial on this subject to the North American, which I send you. If your speech is to appear in pamphlet form please send me one. I send you also an article in the Banking Magazine for January, 1862, on the subject of banks and the Treasury. Be good enough to present my respects to Mr. Horton, of your committee, who is an old acquaintance of mine.

With great respect, very truly yours,

STEPHEN COLWELL.

EXTRACT FROM A LETTER OF M. S. HAWLEY, ESQ.

BUFFALO, Jan. 21, 1862. DEAR SIR-I suppose of course a large issue of demand notes for circulation will be authorized, receivable for all dues and made a legal tender; and sufficient taxation to sustain the credit of all such issues and of the Government bonds. I see no other method so economical and effective. Very respectfully yours,

M. S. HAWLEY.

EXTRACT FROM A LETTER OF J. H. VAN ANTWERP, ESQ., OF THE STATE BANK, ALBANY.

ALBANY, Feb, 8, 1862.

DEAR SIR-Accept my thanks for a copy of your speech on the national finances. The demand notes, in addition to the legal tender, need only to be fortified by a sinking fund yearly of $10,000,000, derived from taxation, to every $100,000,000 of notes issued, to make them pass equal to coin.

Yours truly,

J. H. VAN ANTWERP.

LETTER FROM HON. ROBERT DENNISTON, LATE COMPTROLLER OF NEW YORK.

SALISBURY MILLS, Orange Co., N. Y., Jan. 30, 1862.

HON. E. G. SPAULDING. DEAR SIR-I have read your financial speech (as reported in the Tribune) twice over with great interest. The necessity for such measures is greatly to be regretted, but I do not see with the light I have, how they are to be avoided. In our national exigency, determined boldness, both in civil and military affairs, will be worth a mint of money to us. Please send me your speech for preservation, when printed in pamphlet form.

With great respect, your obedient servant,

ROBERT DENNISTON.

LETTER OF C. H. RUSSELL, VICE PRESIDENT OF THE BANK OF COMMERCE.

NEW YORK, Jan. 29, 1862. MY DEAR SIR-I have just read your speech as published to-day in the Times, it appears to me a very fair and clear exposition of the present financial condition of the Government, its necessities, its resources, and the emergency which now demands the immediate passage of the bill reported by the Committee of Ways and Means. The exigency of the Government to which I referred recently before that Committee, to justify the legal tender of the notes, I think is now reached, and we have no choice of any other measure as good as you propose. But protect the issue of this currency by limitation of its amount, by large taxation, and be sure to require by amendment that the payment of interest by the Government shall be certainly paid in coin on all its public debts.

In haste, yours truly,

C. H. RUSSELL.

P. S.-In some quarters are suggestions not to receive these notes from customers. This is wrong. Such a proceeding, or to make any exception against them as lawful money of the United States, would affix a taint and affect the public confidence in them.