1862, suggested the power by Congress to the
treasury to issue $150,000,000 in treasury notes, in addition to this
sum, authorized by the act of February 25th, 1862; also, authority to
receive fifty millions of dollars on deposit, in addition to fifty
millions previously authorized by Congress. These suggestions were
favorably considered in both Houses, and the recommendations of the
Secretary were adopted fully, leading to the adoption of a national
system of finance, which will eventually reestablish and preserve
national credit. Fears have been expressed in some quarters that this
increased volume of paper money would be a public evil, and serve to
disturb the value of property and the price of labor. This might be
reasonably anticipated if the country were at peace, and the Government
expenditures were upon a peace footing.

But a state of things exists now in this country hitherto unknown. The
contracts of the Government involve the expenditure of larger sums than
were ever paid before in the same space of time by this or any other
Government. In the disbursements of these large sums it is an obvious
duty of Congress to provide a national circulation of uniform value
throughout the whole country--a circulation of a perfectly reliable
character, not subject in the least to the ordinary vicissitudes of
trade or to the revulsions which have frequently marked our history.
These revulsions have been witnessed, and their results seen by the
leading public men of the century. Mr. Madison saw at an early day the
importance of creating and sustaining a government circulation. His
language was: 'It is essential to every modification of the finances
that the benefits of an uniform national currency should be restored to
the community.'

Mr. Calhoun, in 1816, said: 'By a sort of undercurrent, the power of
Congress to regulate the money of the country has caved in, and upon its
ruin have sprung up those institutions which now exercise the right of
making money in and for the United States.'

'It is the duty of government,' says a well known writer, 'to interfere
to regulate every business or pursuit that might otherwise become
publicly injurious. On this principle it interferes to prevent the
circulation of spurious coin.' Counterfeit coin is more readily detected
than a fictitious paper currency, yet no sane man would advocate the
repeal of the laws which prohibit it. Why, then, permit the unlimited
manufacture of paper mon