placement
of the demand notes $56,500,000 more, so that for immediate use
the Treasury would get only $59,500,000 of the sum asked for. Mr.
Spaulding of New York on the 17th of June presented the measure as
reported from the Ways and Means Committee. He argued that this
form of loan was "so popular with the people and so advantageous
to the government, that it should be extended so far as it could
be done safely." Objections such as were offered to the original
policy were presented to the additional notes. It was already
suggested to authorize notes for fractions of a dollar, but the
majority decided against it. The bill passed the House of
Representatives on the 24th of June. In the Senate, Mr. Sherman
of Ohio attempted to add a clause for the taxation of the circulation
of banks, but it was not received with favor. With certain amendments
the bill passed the Senate on the 2d of July. On a disagreement
which ensued, the conferees were Senators Fessenden, Sherman, and
Wright, and Representatives Stevens, Spaulding, and Phelps of
Missouri. By their action the volume of notes of denominations
less than five dollars was restricted to $35,000,000, and the
reserve for meeting deposits was fixed at $75,000,000. While
exchangeable into six per cent. bonds, the notes might also be paid
in coin under the direction of the Secretary of the Treasury. The
report was accepted by the Senate on the 7th of July, and by the
House on the 8th. It became a law by the President's approval on
the 11th of July.

SECRETARY CHASE ON THE BANKS.

On the 14th of July, Secretary Chase called the attention of Congress
to the great evils arising from the issue by non specie-paying
banks and unauthorized persons of depreciated currency, and the
consequent disappearance of small coin. As a remedy an Act was
passed, and approved July 17, for the use of postage and other
stamps in payment of fractional parts of a dollar. These stamps
were made exchangeable by assistant treasurers for United-States
notes in sums not less than five dollars. Banks and persons were
forbidden, from the first day of the ensuing August, to make or
issue any note or token for a less sum than one dollar, intended
to be used as money, under the penalty of a fine not exceeding
$500, or imprisonment not exceeding six months, or both. "Shinplasters"
had become almost like the frogs of Egypt for multitude. They were
in