still remained unpaid on April 30, 1878, (19, 2nd table) and the bonds are probably lost. This loan certainly never figured as "currency."

5. OLD FUNDED DEBT-$114,115.48.

This item consisted of unclaimed dividends upon bonds issued before 1800, or during the war of 1812, standing on the Treasury books to the credit of unknown parties. On April 30, 1878, it had dwindled to $57,665, (15, second table). Of course it is not "currency."

6. OLD TREASURY NOTES-$104,511.64.

This small item represents the unredeemed remainder of various issues of Treasury notes authorized prior to 1857, originally rising to several millions in amount and long before payable on demand. They bore interest at rates ranging from one mill to six per cent., and were, as a rule, receivable for public dues, although not a legal tender in private business. They were still outstanding on April 30, 1878, to the amount of $89,475.35, being covered by these items in the table: "26. Treasury Notes prior to 1846;" "27. Treasury Notes of 1846," and "28. Treasury Notes of 1847." The probabilities are that these notes have ceased to exist, and the interest bearing feature was sufficient to check their general circulation, so that they did not in fact form part of the ante-war volume of " currency" in the proper sense of that term.

7. ONE YEAR TREASURY NOTES OF 1857-$8,800.

These were interest-bearing Treasury notes, payable in one year, authorized to such sum less than $20,000,000 "as the exigencies of the public services should require," and receivable for all public dues. They were issued to the full amount, bore five and five-and-a-half per cent. interest, and on April 30, 1878, still figured in the public debt statement to the amount of $1,800. (29, second table). They bear the same relation to "currency" as the previous item.

8. LOAN OF 1858-$20,000,000.

These were five per cent. bonds, payable after December 31st, 1873, and authorized and issued to the amount of $20,000,000 for "the payment of appropriations made by law." Of course, they were not "currency," and this item had been on April 30, 1878, reduced to $268,000. (1 and 20, second table.)

9. LOAN OF 1860-$7,022,000.

These were five per cent. bonds, payable after December 31st, 1870, authorized to the extent of $21,000,000 “for the redemption of Treasury notes outstanding or received for public dues," and issued for these purposes to the amount of the item in the table. Of these bonds $10,000 appear in the debt statement for April 30, 1878. (21, second table.) No one claims that they were "currency.'

10. TREASURY NOTES OF 1860–$600.

This petty item represents the few notes (payable in one year) not presented for redemption out of $10,010,900 which were issued amid the political chaos of the winter of 1860-1, under an act which authorized their sale at such rates of interest as should be offered by the lowest bidders. They were used to meet "the exigencies of the public service,” and the interest paid ranged from six to twelve per cent. This rate of interest and the fact that the notes were issued to the order of the buyer and were not transferable except by assignment indorsed on their back make it certain that they did not circulate as "currency." Even the $600, which was unpaid in 1865, has been since paid.

11. LOAN OF 1861-818,415.000.

These are six per cent. bonds, payable after June 1, 1881, of which the issue of $25,000,000 was originally authorized "for the payment of current expenses and the redemption of treasury notes." The amount actually issued was the $18,415,000 of this item, and the same figures appear in the second public debt statement given (2). No one claims that these bonds either were "currency" in 1865 or are now.

12 TREASURY NOTES OF 1861-$5,800.

This small item represents the unredeemed balance of issues of treasury notes of denominations of not less than $50, which, bearing six per cent. interest, were paid out "to meet the exigencies of the public service" to the amount of $35,364,450. About one-third of these were payable sixty days after date and the remainder in two years, and they were receivable for the public dues but were not a legal tender. Of these notes, $3,000 were, on April 30, 1878, still unredeemed (30, 2d table). It is not very important for this purpose whether this little item is or is not treated as "currency,” but as a matter of fact none of these earlier issues of Government notes, bearing interest and not possessing the legal tender attribute, figured in

the circulating medium of the country, and they ought not to be classified as 66 currency.

13. OREGON WAR LOAN-$1,016,000.

These were bonds, bearing six per cent. interest and payable after July 1, 1881, which were authorized to the amount of $2,800,000, and issued to the amount of $1,090,850 "for the payment of expenses incurred by the Territories of Washington and Oregon in the suppression of Indian hostilities during 1855 and 1856." They figured in the debt on April 30, 1878, to the amount of $945,000, (3, 2d table) and have never been claimed as "currency."

14. TWENTY-YEAR SIXES OF 1861-$50,000,000, AND (17) TWENTY-YEAR SIXES OF 1861—$431,300.

These were six per cent. bonds, payable after June 30th, 1881, and issued for general war purposes within a limit of $250,000,000. Of course they were not "currency" and have never been claimed as such, and additional bonds of this same class were subsequently issued to retire the "seven-thirties" (15) and "demand notes' (16) authorized by the same statutes, so that the total of this item in the public debt statement had risen on April 30, 1878, to $189,321,350, (4, second table.)

15. SEVEN-THIRTIES OF 1861-$139,155,650.

As a

These were Treasury notes, payable after three years, bearing interest at the rate of 7.30 per cent., and fundable into the long term six per cent. bonds described in the previous paragraph. The total amount of these notes issued was $140,094,750, and of this sum $16,800 (31, second table) was unpaid on April 30, 1878. It is generally claimed that these notes were made a "legal tender," and they figure (usually for that assigned reason) in the tables of "currency" published by the advocates of irredeemable paper money. matter of fact this issue of "seven--thirties" were not only not made a legal tender, but they were not even receivable for public dues. The laws authorizing their issue deal with them as constituting a popular loan of short duration and high interest and provide for their being advertised and sold through local subscription agents like the longerlived bonds. This particular issue of "seven-thirties" was not intended to circulate, and there is no better reason-not even as good-for including them in a table of "currency in 1865" than for including in a table of the currency now the millions of five per cent. and six per cent. bonds which are payable at the pleasure of the Government.

2

16. DEMAND NOTES OF 1861-$472,603.

These were Treasury notes, non-interest bearing, ranging in denominations from $5 upward, receivable for public dues, and originally redeemable on demand in coin by the United States. Their history is this: Originally $50,000,000 of them were authorized. Of these $33,460,000 were issued prior to the general suspension of specie payments in December, 1861; up to that time all of them presented at the Treasury were redeemed in coin on demand. After the suspension the remainder of the $50,000,000 were issued, but as they were no longer redeemable on demand they depreciated somewhat in value. On February 12, 1862, the authority for the issue of $10,000,000 more of these notes was conferred, but a few days thereafter the first issue of "the greenbacks" made its appearance. As these were a "legal tender," while the "demand notes" were not, even the fact that the latter were receivable for customs duties, while the "greenbacks" were not, did not prevent the "demand notes" from depreciating somewhat, especially as some of the New York banks refused to accept them in clearing-house settlements. To meet this difficulty the "demand notes" were (on March 17, 1862) also given the legal tender attribute. At once they not merely rose in value to the level of "the greenbacks," but passed on to a premium, their receivability for customs duties making them speedily command a premium equal to that possessed by gold. This fact carried them out of "circulation." The annual report of the Secretary of the Treasury, dated December 4, 1862, speaks of them even then as "not available for circulation," and their position was identical at that time with that of coin, which certainly did not form part of the "currency" of 1865. While, therefore, ordinarily the "demand notes" would have been part of the circulation, the official documents clearly show that they were not, and should not be so treated, in 1865. The entire $60,000,000 authorized of these notes were issued, and on April 30, 1878, the item of $62,342.50 (39, 2d table) still appeared in the debt statement.

18. FIVE-TWENTIES, FIRST ISSUE-$514,780,500. These were six per cent. bonds, redeemable after April 30, 1867, and payable 15 years later, of which $515,000,000 were originally authorized and the amount named above actually issued. No one has ever claimed that these bonds were "currency," and they had been reduced to $436,450 on April 30, 1878, and appear for that amount in the table for that date, (22).

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These

19. UNITED STATES NOTES—$432,687,966.

were the common notes, known as "the Greenbacks," which were non-interest bearing, were made a legal tender for all purposes except the payment of customs duties, and formed in 1865 the main currency" of the country. Their earlier issues were convertible on demand into six per cent. bonds, but that feature was withdrawn by act of March 3, 1863, such withdrawal taking effect on July 1, 1863. The entire amount authorized by the four acts creating them was $450,000,000, and the largest amount of them outstanding at any one time was $447,300, 203.10, and this included $50,000,000 of reserves held in the Treasury to redeem temporary loans. The convertibility into six per cents operated to retire the original issues, and by the act of June 30, 1864, it was provided : "Nor shall the total amount of United States notes issued, or to be issued, ever exceed $400,000,000, and such additional sum, not exceeding $50,000,000, as may be temporarily required for the redemption of temporary loans." The amount still outstanding of this legal tender "currency" was on April 30, 1878, $346,681,016, (40, second table) and since that date Congress has ordered the permanent maintenance in circulation of that amount of these notes.

20. TEMPORARY LOAN CERTIFICATES $89,717,061.40.

These were certificates of deposit (of not less than $100 in denomination) which were issued by the United States to any one depositing a like amount of legal tender notes at any Government depositaries. They bore interest at rates ranging from four to six per cent., and their life was thirty days. After the expiration of that time the holder could obtain back his "greenbacks" by giving ten days' notice, or the Government could stop the interest on them and order their presentation for payment. The Treasury was required to hold a reserve of legal tenders not exceeding $50,000,000 to provide for their prompt redemption. The total amount of these certificates authorized was $150,000,000. The amount actually issued is not recorded, and of them $3,060 appear as an item (37) in the debt statement of April 30, 1878. It will be seen that they were readily exchangeable into "legal tender" notes, although they did not themselves possess the latter attribute, and this feature of exchangeability is claimed as justifying the including of this entire item in the table of "the currency of 1865." Exactly how much ground there is for this claim will be considered hereafter.