ed to making the government
responsible for the ultimate redemption of the bills by the securities
deposited. He inquired in what respect the promises of the National
banks would be better than the notes of the government, and why
should they be substituted for them?

--Mr. Chandler of Michigan claimed that when the whole system was
in operation the government would borrow $300,000,000 at four per
cent. per annum, because, while the bonds deposited with the banks
would draw six per cent., the tax would bring back two per cent.
He did not know how far the bill would go, but "all that is in it
is good."

The bill came to a vote in the Senate on the 12th of February, and
narrowly escaped defeat. The yeas were twenty-three, the nays
twenty-one. The senators from Oregon, Nesmith and Harding, were
the only Democrats who voted in the affirmative. Nine Republican
senators voted against it.

The House of Representatives received the bill on the 19th. Mr.
Spaulding of New York advocated it very earnestly. He stated that
its principle was based on the free banking law of New York, which
had been in successful operation since 1838. He dwelt upon the
national character of the proposed notes, on their use in payment
of taxes, and on the advantage to accrue from the exemption of the
banking associations from State and United-States taxation.

--Mr. Fenton of New York expressed the belief that the measure
would aid in extricating the government from the financial difficulties
in which it was involved, and pronounced it "one of the most potent
means by which the representatives could strengthen the government
and the people in the struggle to put down the enemies of the
country, and give hope and courage to the hearts of those brave
men who have gone forth to battle." Considerable opposition was
offered, chiefly on details and by amendments. But the House
sustained the measure as it came from the Senate, and passed it on
the 20th of February, by the close vote of 78 to 64, on the call
of the ayes and noes. It was approved by the President on the 25th.

The Currency Bureau of the Treasury Department provided for in the
National Banking Act was organized by the appointment of Hugh
McCulloch, who was then at the head of one of the largest State
banking institutions in Indiana. He was recognized as possessing
executive capacity and large experience in financial affairs. He
had originally been opposed, as were many others