never will be unless it is convertible into a five dollar gold piece; and to profess that it is, is simply a delusion and a fallacy. You may say even by legislative enactment that sixty or eighty or even ninety-nine cents are a hundred, but the rigid, inexorable digits will stand fixed and immovable by your legislative legerdemain.

Mr. Chairman, we are urged by the Chairman of the Committee of Ways and Means to pass this bill, because ruin is before the Government if we do not pass it. It reminds me very forcibly of Cowper's Needless Alarm. I cannot undertake to give it in rhyme, but I will give the substance of it. You will remember that, hearing the deep braying of the hounds, and the sound of the hunter's horn, the sheep coursed round and round the field, until the frightened flock came to the brink of a precipice, and to get away from the hounds and huntsman the pater gregis advised them thus:

"I hold it, therefore, wisest and most fit

That life to save, we leap into the pit."

The matron of the flock, more discreet than the spouse, replies: "How? leap into the pit our life to save?

To save our life, leap all into the grave?"

Sir, there is no precipice, there is no chasm, there is no possible yawning, bottomless gulf before this nation so terrible, so appalling, so ruinous. as this same bill that is before us, and that it is proposed to pass under the pressure of these influences brought to bear upon it.

You issue $100,000,000 of those notes. The gentleman tells us they are already due. We have got to pay the paper out almost before we can make it. It has taken us six months to manufacture $50,000,000, and we cannot manufacture it as fast as we shall spend it at that rate; so that when we have issued $100,000,000 we must issue another $100,000,000, and then another $100,000,000. And thus we plunge from lower depth to still lower, till we are buried in an ocean of inconvertible paper. At every step your paper will depreciate more and more, until the expenses of the war will swell to such an appalling sum that redemption will be impossible, and repudiation inevitable. Facilis deocensus averni, etc., which means it is easy to slide down hill, but very hard work to draw the sled back over smooth ice. But the question is pressed: what will you do? What do you propose? I propose this:

First-Adequate taxation, if need be, to the extent of $200,000,000. Second-Adopt legislation that shall compel all banking institutions to do business on a specie basis. Every piece of paper that claimed to be money, but was not, I would chase back to the man or corporation that forged it, and visit upon them the penalties of the law. I would not allow a bank note to circulate that was not constantly, conveniently and certainly convertible into specie.

Third—I would issue interest-paying bonds of the United States, and go into the market and borrow money and pay the obligations of the Government. This would be honest, business-like, and in the end economical. This could be done. Other channels of investment are blocked up, and capital would seek the bonds of investment.

This is, in substance, what I propose. This would bring us through the war poor indeed, for half the nation has to support the other half, but with the health and vigor of the athlete, and not with the bloated flesh of the beer guzzler. Did I not know that the passage of this bill was a foregone conclusion, I would move to re-commit, with instructions to that effect."

UNIVER

SPEECH OF MR. WALTON.

Mr. WALTON, of Maine, advocated the bill.

"Necessity compels us to pay our creditors in treasury notes. Our credit is exhausted; or perhaps it will be more accurate to say that the means of those who are willing to lend to the Government have become exhausted. To lay and collect taxes will require considerable time; besides, it cannot reasonably be expected that revenue enough can ever be derived from taxation to meet all the expenses of the Government while the war lasts. Practically, therefore, our Government is reduced to the necessity of paying not only its other creditors, but our brave soldiers, in its own notes. Thus compelling our creditors (our brave soldiers included) to take their pay in treasury notes; is it not just, is it anything more than common honesty, to allow them to pay their debts in the same way. If these treasury notes are made a legal tender, they will circulate as readily as specie in the payment of debts, and will only cease thus to circulate, if ever, when they have reached the hands of those who have no debts to pay. And if, as the enemies of the legal tender clause predict, they ever fall in value below par, will not the loss fall upon those who have money, and no debts to pay? And can it fall on a class who will feel it less? And as it is this class of persons that constitute our money-lenders, it will be rather a favor than an injury to them; for these notes are convertible into United States bonds, with semi-annual interest coupons attached, and therefore accomplishes for them just what they desire-a safe loan of their money. I say a safe loan, for the issue of these notes is to be followed by vigorous taxation; and in equity the lender will have a lien on the whole property of the United States as security for every dollar of his debt, and a pledge of the public faith that this security shall be made available.

The legal tender clause of the bill, therefore, while it secures to our soldiers and the poorer class of our citizens, who have debts to pay, great advantages, does no real injury to capitalists, and ought to be retained. The constitutional objections have not been overlooked. I think the Federal Government has the same power to make these notes a legal tender that it has to make anything else a legal tender. It can make nothing a legal tender by virtue of any express power. It has but an implied power in any case. And if it is admitted, as it always has been, that the Government possesses the power to declare what shall be a legal tender in any case, it has it without limitation. It can make one thing a legal tender as well as another; and whether these notes shall have that character or not, is a question of expediency only, and not one of power.

It is objected by some that to make these notes a legal tender will impair the obligation of contracts, and is therefore unconstitutional. But this is not true. In every contract payable in money, and no particular kind of money is named, it is implied, and is a part of the contract, that it may be discharged in what shall be the legal currency at the time of payment. A change or enlargement of the legal currency of the country, and a payment in such new currency, is no violation of the new contract, but is in pursuance of one of its implied conditions.

Having the power, and believing, on the whole, that the legal tender clause is a beneficial one, I am in favor of retaining it in the bill."

The question recurred on Mr. Crisfield's amendment, to strike

out the legal tender clause in the original bill. The vote was taken in Committee of the Whole by tellers.

On taking the vote the tellers reported-ayes 53, noes 93, so the amendment was rejected.

Several other amendments were made in Committee of the Whole, but inasmuch as they were all cut off, modified or adopted by subsequent proceedings, after the bill was reported to the House, it is not necessary to report them here. The bill, as adopted, is copied at the end of this day's proceedings.

Having gone through the bill in Committee of the Whole, there was a good deal of preliminary skirmishing on the part of different members, who had proposed substitutes and amendments as to the order of taking the vote. Some members feared that

they would not be able to get a square vote in the House on their respective propositions. Several members were on the floor at the same time. Motions, objections and counter-motions were made in quick succession, and in various forms, which continued for some time, causing confusion and preventing any action of a practical character, and preventing any vote being taken on either proposition. It finally resulted in an arrangement being made that the bill should be reported to the House, and a square vote be had on the two main propositions pending before the Committee. Mr. Vallandigham and Mr. Conkling withdrew their substitutes, so that all of the opponents of the legal tender clause could concentrate on the substitute agreed to by Mr. Morrill, Mr. Horton, Mr. Corning and Mr. Stratton, one-half of the Committee of Ways and Means; and that the vote should be first taken on that substitute, which was modified to meet the conflicting views of the various gentlemen on that side, in order to make it as acceptable as possible to all the opponents of the original bill. This substitute finally offered by Mr. Horton, will be found (Cong. Globe, p.,) and is as follows:

The substitute which was read was, to strike out of the bill all after the word "that," in the first section, and insert the following:

"For temporary purposes, the Secretary of the Treasury be, and he is hereby, authorized to issue on the credit of the United States $100,000,000 of Treasury notes, bearing interest at the rate of three and sixty-five hundredths per cent. per annum, payable in two years after date, to bearer, at the Treasury of the United States, or at the office of the Assistant Treasurer, in the city of New York, or at the office of the designated depository in the city of Cincinnati, and of such denominations as he may deem

expedient, not less than five dollars each; and such notes shall be receivable for all public dues, except duties on imports, and for all salaries, debts and demands owing by the United States to individuals, corporations and associations, within the United States, at the option of such individuals, corporations and associations; and any holder of said United States notes, depositing any sum not less than fifty dollars, or some multiple of fifty, with the Treasurer of the United States, or either of the Assistant Treasurers, or either of the designated depositories at Cincinnati or Baltimore, shall receive in exchange therefor duplicate certificates of deposit for the amount, with any accumulated interest thereon, one of which may be transmitted to the Secretary of the Treasury, who shall thereupon issue to the holder an equal amount in bonds of the United States, coupon or registered, as may be desired, bearing interest at the rate of seven and three-tenths per cent. per annum, payable semi-annually in coin, and redeemable at the pleasure of the Government after ten years from date; and such Treasury notes shall be received the same as coin, at their par value, with accumulated interest, in payment for any bonds that may be hereafter negotiated by the Secretary of the Treasury; and the Secretary of the Treasury may, from time to time, as the exigencies of the public service may require, issue any amount of such Treasury notes equal to the amount redeemed. 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 receivable in payment of all public dues, except duties on imports, and is exchangeable for bonds of the United States, bearing seven and three-tenths per cent. per annum, payable in coin, semi-annually.

SEC. 2. And be it further enacted, That to enable the Secretary of the Treasury to fund the Treasury notes and floating debt of the United States, he is hereby authorized to issue, on the credit of the United States, coupon bonds, or registered bonds, to an amount not exceeding $500,000,000,— $200,000,000 bearing interest at the rate of seven and three-tenths per cent. per annum, payable semi-annually in coin, and redeemable at the pleasure of the Government, after ten years from date, and $300,000,000, redeemable at the pleasure of the Government, after twenty-four years from date, and bearing interest at the rate of six per cent. per annum, payable semiannually in coin. And the bonds herein authorized shall be of such denominations, not less than fifty dollars, as may be determined upon by the Secretary of the Treasury; and the Secretary of the Treasury may also exchange, at par, such bonds at any time for lawful money of the United States, or for any of the Treasury notes that have been, or may hereafter be, issued under any former Act of Congress, or that may be issued under the provisions of this Act.

§ 3. And be it further enacted, That the Treasury notes and the coupon or registered bonds authorized by this Act, shall be in such form as the Secretary of the Treasury may direct, and shall bear the written or engraved signature of the Treasurer of the United States and the Register of the Treasury; and also, as evidence of lawful issue, the imprint of a copy of the seal of the Treasury Department, which imprint shall be made under the direction of the Secretary, after the said notes or bonds shall be received from the engravers, and before they are issued; or the said notes and bonds shall be signed by the Treasurer of the United States, or for the Treasurer, by such persons as may be specially appointed by the Secretary of the Treasury for that purpose, and shall be countersigned

by the Register of the Treasury, or for the Register, by such persons as the Secretary of the Treasury may specially appoint for that purpose; and all the provisions of the Act entitled, 'An Act to authorize the issue of Treasury notes,' approved the 23d day of December, 1857, so far as they can be applied to this act, and not inconsistent therewith, are hereby revived and re-enacted; and the sum of $300,000 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.

4. And be it further enacted, That any person or persons, or any corporation, holding Treasury notes, may, at any time, deposit them, in sums of not less than $500, with any of the Assistant Treasurers or designated depositaries of the United States, authorized by the Secretary of the Treasury to receive them, who shall issue therefor, transferable certificates of deposit, made in such form as the Secretary of the Treasury shall prescribe, and said certificates of deposit shall bear interest after thirty days, at the rate of five and two-fifths of one per cent. per annum; and any Treasury notes so deposited may be withdrawn from deposit at any time, on the return of said certificates, but no interest shall be allowed except after thirty days. And all such deposits shall cease and determine at the pleasure of the Secretary of the Treasury, and after ten days' notice shall have been given to the depositor.

§ 5. And be it further enacted, That if any person or persons, shall falsely make, forge, counterfeit or alter, or cause or procure to be falsely made, forged, counterfeited or altered, or shall willingly aid or assist in falsely making, forging, counterfeiting, or altering any note, bond or certificate, issued under the authority of this act, or heretofore issued under acts to authorize the issue of Treasury notes or bonds, or shall pass utter, publish, or sell, or attempt to pass, utter, publish, or sell, or bring into the United States, from any foreign place, with intent to pass, utter, publish or sell, as true, or shall have, or keep in possession, or conceal, with intent to utter, publish or sell, as true, any such false, forged, counterfeited or altered note, bond or certificate, with intent to defraud anybody, corporate or politic, or any other person or persons whatsoever; every person so offending, shall be deemed guilty of felony, and shall, on conviction thereof, be punished by a fine not exceeding $5,000, and by imprisonment and confinement to hard labor, not exceeding fifteen years."

Upon the bill being reported from the Committee of the Whole to the House, the vote was first taken on this substitute. The yeas and nays were ordered.

The question was taken, and it was decided in the negativeyeas 55, nays 95, as follows:

Yeas-Messrs. Ancona, Baxter, Biddle, . George H. Brown, William G. Brown, Cobb, Frederick A. Conkling, Roscoe Conkling, Conway, Corning, Cox, Cravens, Crisfield, Crittenden, Diven, Eliot, English, Goodwin, Grider, Harding, Holman, Horton, Johnson, Law, Lazear, Lovejoy, May, Menzies, Justin S. Morrill, Morris, Nixon, Noble, Norton, Nugen, Odell, Pendleton, Perry, Pomeroy, Porter, Edward H. Rollins, Sedgwick, Sheffield, Shiel, William G. Steele, Stratton, Benjamin F. Thomas, Francis.