perseded.
In acceding now, as in December, 1861, to the Secretary's plan of a bank
circulation, I must be understood as having changed my views in no
respect as to banks, but that I yield to the great emergency, which
renders the support of the war and of the Union paramount to any
question of coin or currency.

The national disbursements for the present and succeeding fiscal year,
as stated by the Secretary, together with his remarks on that subject,
supersede the necessity of any further argument in proof of the absolute
impossibility of specie payments now by the Government. We are compelled
to resort to paper, and the only question is as to the character and
extent of the issue. It is my opinion that we should limit this paper
currency, as far as practicable, that it may be as little depreciated
now as possible; so that when the rebellion is crushed, the banks and
the Government may resume specie payments at the earliest moment. I
favor the plan of the Secretary mainly because, by arresting
depreciation, it would furnish a currency approaching specie now more
nearly than can be accomplished in any other way, and because, when the
war is over, it provides the best means for a return, in the shortest
possible period, to specie payments. An irredeemable paper currency
dissolves contracts, violates good faith, and its history here and in
Europe is a record of financial ruin, bankruptcy, and repudiation, of
frauds, crimes, and demoralization, which no friend of his country or
race can desire to witness. The issue of treasury notes as a legal
tender was favored by me as a _necessity_ super-induced by the
rebellion, and as a substitute for the present bank issues. Such notes
would be depreciated much less when made a legal tender, and, to that
extent, our expenditures would be diminished, and specie payments could,
therefore, be resumed eventually at a much earlier period. Why, then, it
is asked, not continue and extend that system, rather than adopt the
plan recommended by the Secretary? Because, Congress refusing to
prohibit a bank circulation, such increased issues of treasury notes
would cause a further great depreciation of such notes, to that extent
augment our expenditures, and postpone, perhaps indefinitely, the
resumption of specie payments. Gold now commands a premium of thirty-two
per cent., payable in treasury notes; but, if such issues be increased
one half, they would fall to fifty per cent., and, if doubled,