additional
powers to the Secretary." He added, that "the apprehension which
exists, that if power is given to the Secretary to retire legal-tender
notes the circulation will be ruinously contracted, is without any
special foundation." The effect of the discussion was to strengthen
the bill in the House where it was passed by _ayes_ 83; _noes_ 53.

The bill was favorably reported to the Senate from the Finance
Committee, and came up for consideration on the 9th of April, under
the charge of Mr. Fessenden.

--Mr. Sherman re-affirmed the objections made in the House, that the
power conferred was greater than had ever been granted to any Secretary
of the Treasury since the foundation of the Government. "The power,"
said he, "is absolute. The Secretary may sell securities of any form
at any time and fund the whole debt. No present necessity exists for
such grant of authority. The _proviso_ for restricting contraction
is not adequate for that purpose. By retaining a large balance in the
Treasury, the Secretary can contract the currency without violating the
_proviso_." He deemed it unwise "to place in the hands of any mortal
man this absolute and extreme control over the currency."

--Mr. Fessenden said the true principle of this bill was, "that as
soon as it can be done with safety, Congress means that we shall get
back to the old system of specie payments. That is about all there
is of it. The effect of rejecting the measure will be to say to
everybody that the Government intends to keep depreciated paper in the
financial market."

--Mr. Chandler of Michigan believed the measure "to be evil, and evil
only; containing dangerous powers which should not be conferred, and
which no man should be willing to accept." Mr. Howe of Wisconsin
agreed with him.

--Mr. Guthrie of Kentucky (Secretary of the Treasury under President
Pierce) pronounced it "necessary and proper to give this power to the
Secretary." And Mr. Morgan of New York, agreeing with him, declared
that he desired the bill "just as it is."

--An amendment to strike out the words authorizing the sale of the
bonds elsewhere than in the United States was overwhelmingly defeated,
_ayes_ 7, _noes_ 35. The bill was then passed by _ayes_ 32, _noes_ 7,
and by the President's signature became a law on the 12th of April,
1866.

The discussion of this important financial measure illustrates the
various phases of opinion prevailing both in Congress and in the