eport from the Treasury Department of the
measures taken under the act of the last session authorizing the reissue
of Treasury notes in lieu of those then outstanding. The system adopted
in pursuance of existing laws seems well calculated to save the country
a large amount of interest, while it affords conveniences and obviates
dangers and expense in the transmission of funds to disbursing agents.
I refer you also to that report for the means proposed by the Secretary
to increase the revenue, and particularly to that portion of it which
relates to the subject of the warehousing system, which I earnestly
urged upon Congress at its last session and as to the importance of
which my opinion has undergone no change.

In view of the disordered condition of the currency at the time and
the high rates of exchange between different parts of the country,
I felt it to be incumbent on me to present to the consideration of
your predecessors a proposition conflicting in no degree with the
Constitution or with the rights of the States and having the sanction
(not in detail, but in principle) of some of the eminent men who have
preceded me in the Executive office. That proposition contemplated the
issuing of Treasury notes of denominations of not less than $5 nor more
than $100, to be employed in the payment of the obligations of the
Government in lieu of gold and silver at the option of the public
creditor, and to an amount not exceeding $15,000,000. It was proposed
to make them receivable everywhere and to establish at various points
depositories of gold and silver to be held in trust for the redemption
of such notes, so as to insure their convertibility into specie. No
doubt was entertained that such notes would have maintained a par value
with gold and silver, thus furnishing a paper currency of equal value
over the Union, thereby meeting the just expectations of the people and
fulfilling the duties of a parental government. Whether the depositories
should be permitted to sell or purchase bills under very limited
restrictions, together with all its other details, was submitted to
the wisdom of Congress and was regarded as of secondary importance.
I thought then and think now that such an arrangement would have been
attended with the happiest results. The whole matter of the currency
would have been placed where by the Constitution it was designed to be
placed--under the immediate supervision and control of Congress.
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