Читать книгу: «The Continental Monthly, Vol. 4, No. 4, October, 1863», страница 13
CHAPTER X
The Rev. Augustus Myrtle, rector of St. Jude's, was one of those circumstances of nature which are only to be encountered in metropolitan life. This seems a paradox. I will explain. All his qualities were born with him, not acquired, and those qualities could only shine in the aristocratic and fashionable circles of a large city. As animals by instinct avoid whatever is noxious and hurtful, so Augustus Myrtle from his infancy by instinct avoided all poor people and all persons not in the 'very first society.'
Children are naturally democrats; school is a great leveller. Augustus Myrtle recognized no such propositions. While a boy at the academy, while a youth in college, he sought the intimacy of boys and youths of rich persons of ton. It was not enough that a young fellow was well bred and had a good social position—he must be rich. It was not enough that he was rich—he must have position.
I do not think that Augustus Myrtle sat down carefully to calculate all this. So I say it was instinctive—born with him. A person who frequents only the society of the well bred and the wealthy must, to a degree at least, possess refined and elegant and expensive tastes, and it was so in the case of Myrtle. His tastes were refined and elegant and expensive.
His parents were themselves people of respectability, but very poor. His mother used to say that her son's decided predilections were in consequence of her unfortunate state of mind the season Augustus was born, when poverty pinched the family sharply. Mr. Myrtle was a man of collegiate education, with an excellent mind, but totally unfitted for active life. The result was, after marrying a poor girl, who was, however, of the 'aristocracy,' he became, through the influence of her friends, the librarian of the principal library in a neighboring city, with a fair salary, on which, with occasional sums received for literary productions, he managed to bring up and support his small family. At times, when some unexpected expenses had to be incurred, as I have hinted, poverty seemed to poor Mrs. Myrtle a very great hardship, and such was their situation the year Augustus was born.
He was the only son, and the hope of the parents centred on him. It was settled that he should be sent to the best schools and to a first-class college. He had, perhaps, rather more than ordinary ability, the power to display to the best advantage the talents and acquirements he did possess, together with attractive manners, which, though reserved, were pleasing. He was slight, gracefully formed, and a little above the ordinary height. He had a dark complexion, a face thin and colorless, with fine, large, black eyes.
When I say Augustus Myrtle sought only the intimacy of the rich and well bred, you must not suppose he was a toady, or practised obsequiously. Not at all. He mingled with his associates, assuming to be one of them—their equal. True, his want of money led to desperate economical contrivances behind the scenes, but on the stage he betrayed by no sign that affairs did not flow as smoothly with him as with his companions. In all this, he had in his mother great support and encouragement. Her relations were precisely of the stamp Augustus desired to cultivate, and this gave him many advantages. As usually happens, he found what he sought. By the aid of the associations he had formed with so much assiduity, to say nothing of his own personal recommendations, he married a nice girl, the only child of a widowed lady in the right 'set' and with sixty thousand dollars, besides a considerable expectancy on the mother's decease. Shortly after, he became rector of St. Jude's, the most exclusive 'aristocratic' religious establishment in New York.
At this present period, the Rev. Augustus Myrtle was but thirty-five, and, from his standing and influence, he considered it no presumption to look forward to the time when he should become bishop of the diocese.
His health was excellent, if we may except some very slight indications of weakness of the larynx, which had been the cause of his making two excursions to Europe, each of six months' duration, which were coupled with an appropriation of twenty-five hundred dollars by his indulgent congregation to pay expenses.
While Mr. Myrtle and his family were still absent, Hiram had made very sensible progress in mastering the mysteries of the Episcopal form of worship, and became fully versed in certain doctrinal points, embracing all questions of what constitutes a 'church' and a proper 'succession.' His investigations were carried on under the direction of the Rev. Mr. Strang, a man of feeble mind (Mr. Myrtle was careful to have no one near him unless the contrast was to his advantage), but a worthy and conscientious person, who believed he was doing Heaven service in bringing Hiram into the fold of the true church. Hiram was again in his element as an object of religious interest. Before the rector had returned, he became very impatient to see him. It was a long while since he had been at communion, and he began to fear his hold on heaven would be weakened by so long an absence from that sacrament. Besides, he felt quite prepared and ready to be confirmed.
The Myrtles returned at last. In due time, Mrs. Bennett talked the whole matter over with Mrs. Myrtle. Hiram was represented as 'a very rich young merchant, destined to be a leading man in the city—of an ancient and honorable New England family—very desirable in the church—a cousin'—[here several sentences were uttered in a whisper, accompanied by nods and signs significant, which I shall never be able to translate]—'must secure him—ripe for it now.'
I think I forgot to say that Mrs. Myrtle and Mrs. Bennett were in the same 'set' as young ladies, and were very intimate.
The nest day Mrs. Bennett opened the subject to Mr. Myrtle, his wife having duly prepared him. The object was to introduce Hiram into the church in the most effective manner. This could only be done through the instrumentality of the reverend gentleman himself. Everything went smoothly. Mr. Myrtle was not insensible to the value of infusing new and fresh elements into his congregation.
'Of course,' he observed, 'this wealthy young man will take an entire pew.' (The annual auction of rented pews was soon to come off, and Mr. Myrtle liked marvellously to see strong competition. It spoke well for the church.)
'He will purchase a pew, if a desirable one can be had,' answered Mrs. Bennett.
'Oh, that is well. How fortunate! The Winslows are going to Europe to reside, and I think will sell theirs. One of the best in the church. Pray ask Mr. Bennett to look after it.'
'Thank you. How very considerate, how very thoughtful! We will see to it at once.'
The interview ended, after some further conversation, in a manner most satisfactory.
It was a magnificent autumnal afternoon, the second week of October, when Hiram Meeker, by previous appointment, called at the residence of the Rev. Augustus Myrtle. The house was built on to the church, so as to correspond in architecture, and exhibited great taste in exterior as well as interior arrangement. Hiram walked up the steps and boldly rang the bell. He had improved a good deal in some respects since his passage at arms with Dr. Chellis, and while under the auspices of Mr. Bennett. He had laid aside the creamy air he used so frequently to assume, and had hardened himself, so to speak, against contingencies. I was saying he marched boldly up and rang the bell.
A footman in unexceptionable livery opened the door. Mr. Myrtle was engaged, but on Hiram's sending in his name, he was ushered into the front parlor, and requested to sit, and informed that Mr. Myrtle would see him in a few minutes. This gave Hiram time to look about him.
It so happened that it was the occasion of a preliminary gathering for the season (there had been no meeting since June) of those who belonged to the 'Society for the Relief of Reduced Ladies of former Wealth and Refinement.' This 'relief' consisted in furnishing work to the recipients of the bounty at prices about one quarter less than they could procure elsewhere, and without experiencing a sense of obligation which these charitable ladies managed to call forth.
There was already in the back parlor a bevy of six or eight, principally young, fine-looking, and admirably dressed women.
Arrayed in the most expensive silks, of rich colors, admirably corresponding with the season, fitted in a mode the most faultless to the exquisite forms of these fair creatures, or made dexterously to conceal any natural defect, they rose, they sat, they walked up and down the room, greeting from time to time the new comers as they arrived.
The conversation turned meanwhile on the way the summer had been spent, and much delicate gossip was broached or hinted at, but not entered into. Next the talk was about dress. The names of the several fashionable dressmakers were quoted as authority for this, and denunciatory of that. Congratulations were exchanged: 'How charmingly you look—how sweet that is—what a lovely bonnet!'
All this Hiram Meeker drank in with open ears and eyes, for from where he was sitting, he could see everything that was going on, as well as hear every word.
One thing particularly impressed him. He felt that never before had he been in such society. The ladies of Dr. Chellis's church were intelligent, refined, and well bred, but here was TON—that unmistakable, unquestionable ton which arrogates everything unto itself, claims everything, and with a certain class is everything.
I need not say, to a person of Hiram's keen and appreciative sense, the picture before him was most attractive. How perfect was every point in it! What minute and fastidious attention had been devoted to every article of dress! How every article had been specially designed to set off and adorn! The hat, how charming; the hair, how exquisitely coiffed; the shawl, how magnificent; the dress how rich! The gloves, of what admirable tint, and how neatly fitted; and how wonderfully were the walking boots adapted to display foot and ankle! And these did not distinguish one, but every one present.
I do not wonder Hiram was carried away by the spectacle. There is something very overpowering in such a scene. Who is sufficient to resist its seductive influences?
In the midst of what might be called a trance, when Hiram's senses were wrapt in a sort of charmed Elysium, the Rev. Augustus Myrtle entered the room. He did not look toward Hiram, but passed directly into the back parlor. He walked along, not as if he were stepping on eggs, but very smoothly and noiselessly, as if treading (as he was doing) on the finest of velvet carpets.
Instantly what a flutter! How they ran up to him, ambitious to get the first salute, and to proffer the first congratulation! How gracefully the Rev. Augustus Myrtle received each! Two or three there were (there were reasons, doubtless) whose cheeks he kissed decorously, yet possibly with some degree of relish. The rest had to content themselves with shaking hands. Many and various were the compliments he received. Their 'delight to see him, how well he was looking,' and so forth.
Presently he started to leave them.
'Oh, you must not run off so soon, we shall follow you to your sanctum.'
'An engagement,' replied Mr. Myrtle, glancing into the other room.
A score of handsome eyes were turned in the direction where Hiram was seated, listening with attention, and watching everything. Discomfited by such an array, he colored, coughed, and nervously shifted his position. Some laughed. The rest looked politely indifferent.
'A connection of the Bennetts,' whispered Mrs. Myrtle, 'a fine young man, immensely rich. He is to come in future to our church.'
'Ah,' 'Yes,' 'Indeed,' 'Excellent.' Such were the responses.
Meanwhile Mr. Myrtle had greeted Hiram courteously, and invited him to his library. This was across the hall, in a room which formed a part of the church edifice.
As Hiram followed Mr. Myrtle out of the parlor, several of the ladies took another look at him. They could not but remark that he was finely formed, fashionably dressed, and, thanks to Signor Alberto, of a very graceful carriage.
The interview between Mr. Myrtle and Hiram was brief. The latter, thoroughly tutored by his cousin, was careful to say nothing about his previous conviction and wonderful conversion, but left Mr. Myrtle, as was very proper, to lead in the conversation. He had previously talked with Mr. Strang, which, with the recommendation of Mrs. Bennett, left no doubt in his mind as to Hiram's fitness to receive confirmation.
It was very hard for him to be informed that his early baptism must go for nothing—what time his father and mother, in their ignorance and simplicity, brought their child to present before God, and receive the beautiful rite of the sprinkling of water.
A dreadful mistake they made, since no properly consecrated hands administered on that occasion. But nevertheless, Hiram is safe. Lucky fellow, he has discovered the mistake, and repaired it in season.
'I think, Mr. Meeker, your conversations with Mr. Strang have proved very instructive to you. Here is a work I have written, which embraces the whole of my controversy with Mr. Howland on the true church (and there is not salvation in any other) and the apostolic succession. Having read and approved this,' he added with a pleasant smile, 'I will vouch for you as a good churchman.'
Hiram was delighted. He took the volume, and was about to express his thanks, when Mrs. Myrtle appeared at the door, which had been left open.
'My dear, I regret to disturb you, but'—
'I will join you at once,' said Mr. Myrtle, rising. This is Mr. Meeker, a cousin of your friend Mrs. Bennett'—as if she did not know it.
Mrs. Myrtle bowed graciously, and said, with charming condescension:
'Then it is you I have heard such a good report of. You are coming to our church away from–'
'Never mind from where, my dear,' said Mr, Myrtle pleasantly, and he bowed Hiram out in a manner which positively charmed our hero.
That evening Mr. Bennett told Hiram he had purchased a pew for him—price sixteen hundred and fifty dollars.
'Sixteen hundred and fifty dollars,' exclaimed the other, in amazement.
'Yes.'
'Why, I can't stand that. The dearest pews in Dr. Chellis's church were not over six hundred. You are joking.'
'You are an idiot,' retorted Mr. Bennett, half pettishly, half playfully. 'Have you not placed yourself in my hands? Shall I not manage your interests as I please? I say I want sixteen hundred and fifty dollars. I know you can draw the money without the least inconvenience. If I thought you could not, I would advance it myself. Are you content?'
Hiram nodded a doubtful assent.
How fortunate,' continued Mr. Bennett, that the Winslows are going to Europe, and how lucky I got there the minute I did! Young Bishop came in just as I closed the purchase. I know what he wanted it for, and I know what I wanted it for. Hiram, a word in your ear—your pew is immediately in front of our heiress! Bravo, old fellow! Now, will you pay up?'
Hiram nodded this time with satisfaction.
The second Sunday thereafter one might observe that the Winslows' pew had been newly cushioned and carpeted, and otherwise put in order. Several prayer books and a Bible, elegantly bound, and lettered 'H. Meeker,' were placed in it. This could not escape the notice of the very elegant and fashionably dressed young lady in the next slip. Strange to say, the pew contained no occupant. But just before the service was about to commence, Hiram, purposely a little late, walked quietly in, and took possession of his property. His pose was capital. His ease and nonchalance were perfectly unexceptionable, evidencing haut ton. He had been practising for weeks.
'Who can he be?' asked the elegant and fashionably dressed young lady of herself. She was left to wonder. When he walked homeward, Hiram was informed by Mr. Bennett that the elegant and fashionably dressed young lady was Miss Arabella Thorne, without father, without mother, of age, and possessed of a clear sum of two hundred thousand dollars in her own right!
AMERICAN FINANCES AND RESOURCES
LETTER NO. I, FROM HON. ROBERT J. WALKER
London, 10 Half Moon Street, Piccadilly,}August 5, 1863.}
The question has been often asked me, here and on the continent, how has your Secretary of the Treasury (Mr. Chase) so marvellously sustained American credit during this rebellion, and when will your finances collapse? This question I have frequently answered in conversations with European statesmen and bankers, and the discussion has closed generally in decided approval of Mr. Chase's financial policy, and great confidence in the wonderful resources of the United States.
Thus encouraged, I have concluded to discuss the question in a series of letters, explaining Mr. Chase's system and stating the reasons of its remarkable success. The interest in such a topic is not confined to the United States, nor to the present period, but extends to all times and nations. Indeed, finance, as a science, belongs to the world. It is a principal branch of the doctrine of 'the wealth of nations,' discussed, during the last century, with so much ability by Adam Smith. Although many great principles were then settled, yet political economy is emphatically progressive, especially the important branches of credit, currency, taxation, and revenue.
Mr. Chase's success has been complete under the most appalling difficulties. The preceding administration, by their treasonable course, and anti-coercion heresies, had almost paralyzed the Government. They had increased the rate of interest of Federal loans from six to nearly twelve per cent. per annum. Their Vice-president (Mr. Breckenridge), their Finance Minister (Mr. Cobb), their Secretary of War (Mr. Floyd), their Secretary of the Interior (Mr. Thompson), are now in the traitor army. Even the President (Mr. Buchanan), with an evident purpose of aiding the South to dissolve the Union, had announced in his messages the absurd political paradox, that a State has no right to secede, but that the Government has no right to prevent its secession. It was a conspiracy of traitors, at the head of which stood the President, secretly pledged, at Ostend and Cininnati, to the South (as the price of their support), to aid them to control or destroy the republic. Thus was it that, in time of profound peace, when our United States six per cents. commanded a few weeks before a large premium, and our debt was less than $65,000,000, that Mr. Buchanan's Secretary of the Treasury (Mr. Cobb) was borrowing money at an interest of nearly twelve per cent. per annum. Most fortunately that accursed administration was drawing to a close, or the temporary overthrow of the Government would have been effected. Never did any minister of finance undertake a task apparently so hopeless as that so fully accomplished by Mr. Chase in reviving the public credit. A single fact will illustrate the extraordinary result. At the close of the fiscal year ending 1st July, 1860, our public debt was only $64,769,703, and Secretary Cobb was borrowing money at twelve per cent. per annum. On the first of July 1863, in the midst of a stupendous rebellion, our debt was $1,097,274,000, and Mr. Chase had reduced the average rate of interest to 3.89 per cent. per annum, whilst the highest rate was 7.30 for a comparatively small sum to be paid off next year. This is a financial achievement without a parallel in the history of the world. If I speak on this subject with some enthusiasm, it is in no egotistical spirit, for Mr. Chase's system differs in many respects widely from that adopted by me as Minister of Finance during the Mexican war, and which raised United States five per cents. to a premium. But my system was based on specie, or its real and convertible equivalent, and would not have answered the present emergency, which, by our enormous expenditure, necessarily forced a partial and temporary suspension of specie payments upon our banks and Government. Mr. Chase's system is exclusively his own, and, in many of its aspects, is without a precedent in history. When first proposed by him it had very few friends, and was forced upon a reluctant Congress by the great emergency, presenting the alternative of its adoption or financial ruin. Indeed, upon a test vote in Congress in February last, it had failed, when the premium on gold rose immediately over twenty per cent. This caused a reconsideration, when the bills were passed and the premium on gold was immediately reduced more than the previous rise, exhibiting the extraordinary difference in a few days of twenty-three per cent., in the absence of any intermediate Federal victories in the field.
Such are the facts. Let me now proceed to detail the causes of these remarkable results. The first element in the success of any Minister of Finance is the just confidence of the country in his ability, integrity, candor, courage, and patriotism. He may find it necessary, in some great emergency, like our rebellion, to diverge somewhat from the via trita of the past, and enter upon paths not lighted by the lamp of experience. He must never, however, abandon great principles, which are as unchangeable as the laws developed by the physical sciences. When Mr. Chase, in his first annual Treasury Report of the 9th of December, 1861, recommended his system of United States banks, organized by Congress throughout the country, furnishing a circulation based upon private means and credit, but secured also by an adequate amount of Federal stock, held by the Government as security for its redemption, it was very unpopular, and encountered most violent opposition. The State banks, and all the great interests connected with them, were arrayed against the proposed system. When we reflect that many of these banks (especially in the great State of New York) were based on State stocks, and in many States that the banks yielded large revenues to the local Government;—when we see, by our Census Tables of 1860 (p. 193), that these banks numbered 1642, with a capital paid up of $421,890,095, loans $691,495,580, and a circulation and deposits, including specie, of $544,469,134,—we may realize in part the tremendous power arrayed against the Secretary. This opposition was so formidable, that neither in the public press nor in Congress did this recommendation of Mr. Chase receive any considerable support. Speaking of the currency issued by the State banks, and of the substitute proposed by Mr. Chase, he presented the following views in his first annual Report before referred to, of December, 1861:—
'The whole of this circulation constitutes a loan without interest from the people to the banks, costing them nothing except the expense of issue and redemption and the interest on the specie kept on hand for the latter purpose; and it deserves consideration whether sound policy does not require that the advantages of this loan be transferred in part at least, from the banks, representing only the interests of the stockholders, to the Government, representing the aggregate interests of the whole people.
'It has been well questioned by the most eminent statesmen whether a currency of bank notes, issued by local institutions under State laws, is not, in fact, prohibited by the national Constitution. Such emissions certainly fall within the spirit, if not within the letter, of the constitutional prohibition of the emission of bills of credit by the States, and of the making by them of anything except gold and silver coin a legal tender in payment of debts. 'However this may be, it is too clear to be reasonably disputed that Congress, under its constitutional powers to lay taxes, to regulate commerce, and to regulate the value of coin, possesses ample authority to control the credit circulation which enters so largely into the transactions of commerce and affects in so many ways the value of coin.
'In the judgment of the Secretary the time has arrived when Congress should exercise this authority. The value of the existing bank note circulation depends on the laws of thirty-four States and the character of some sixteen hundred private corporations. It is usually furnished in greatest proportions by institutions of least actual capital. Circulation, commonly, is in the inverse ratio of solvency. Well-founded institutions, of large and solid capital, have, in general, comparatively little circulation; while weak corporations almost invariably seek to sustain themselves by obtaining from the people the largest possible credit in this form. Under such a system, or rather lack of system, great fluctuations, and heavy losses in discounts and exchanges, are inevitable; and not unfrequently, through failures of the issuing institutions, considerable portions of the circulation become suddenly worthless in the hands of the people. The recent experience of several States in the valley of the Mississippi painfully illustrates the justice of these observations; and enforces by the most cogent practical arguments the duty of protecting commerce and industry against the recurrence of such disorders.
'The Secretary thinks it possible to combine with this protection a provision for circulation, safe to the community and convenient for the Government.
'Two plans for effecting this object are suggested. The first contemplates the gradual withdrawal from circulation of the notes of private corporations and for the issue, in their stead of United States notes, payable in coin on demand, in amounts sufficient for the useful ends of a representative currency. The second contemplates the preparation and delivery, to institutions and associations, of notes prepared for circulation under national direction, and to be secured as to prompt convertibility into coin by the pledge of United States bonds and other needful regulations.
'The first of these plans was partially adopted at the last session of Congress in the provision authorizing the Secretary to issue United States notes, payable in coin, to an amount not exceeding fifty millions of dollars. That provision may be so extended as to reach the average circulation of the country, while a moderate tax, gradually augmented, on bank notes, will relieve the national from the competition of local circulation. It has been already suggested that the substitution of a national for a State currency, upon this plan, would be equivalent to a loan to the Government without interest, except on the fund to be kept in coin, and without expense, except the cost of preparation, issue, and redemption; while the people would gain the additional advantage of a uniform currency, and relief from a considerable burden in the form of interest on debt. These advantages are, doubtless, considerable; and if a scheme can be devised by which such a circulation will be certainly and strictly confined to the real needs of the people, and kept constantly equivalent to specie by prompt and certain redemption in coin, it will hardly fail of legislative sanction.
'The plan, however, is not without serious inconveniences and hazards. The temptation, especially great in times of pressure and danger, to issue notes without adequate provision for redemption; the ever-present liability to be called on for redemption beyond means, however carefully provided and managed; the hazards of panics, precipitating demands for coin, concentrated on a few points and a single fund; the risk of a depreciated, depreciating, and finally worthless paper money; the immeasurable evils of dishonored public faith and national bankruptcy; all these are possible consequence of the adoption of a system of government circulation. It may be said, and perhaps truly, that they are less deplorable than those of an irredeemable bank circulation. Without entering into that comparison, the Secretary contents himself with observing that, in his judgment, these possible disasters so far outweigh the probable benefits of the plan that he feels himself constrained to forbear recommending its adoption.
'The second plan suggested remains for examination. Its principal features are, (1st) a circulation of notes bearing a common impression and authenticated by a common authority; (2d) the redemption of these notes by the associations and institutions to which they may be delivered for issue; and (3d) the security of that redemption by the pledge of the United States stocks, and an adequate provision of specie.
'In this plan the people, in their ordinary business, would find the advantages of uniformity in currency; of uniformity in security; of effectual safeguard, if effectual safeguard is possible, against depreciation; and of protection from losses in discount and exchanges; while in the operations of the Government the people would find the further advantage of a large demand for Government securities, of increased facilities for obtaining the loans required by the war, and of some alleviation of the burdens on industry through a diminution in the rate of interest, or a participation in the profit of circulation, without risking the perils of a great money monopoly.
'A further and important advantage to the people may be reasonably expected in the increased security of the Union, springing from the common interest in its preservation, created by the distribution of its stocks to associations throughout the country, as the basis of their circulation.
'The Secretary entertains the opinion that if a credit circulation in any form be desirable, it is most desirable in this. The notes thus issued and secured would, in his judgment, form the safest currency which this country has ever enjoyed; while their receivability for all Government dues, except customs, would make them, wherever payable, of equal value, as a currency, in every part of the Union. The large amount of specie now in the United States, reaching a total of not less than two hundred and seventy-five millions of dollars, will easily support payments of duties in coin, while these payments and ordinary demands will aid in retaining this specie in the country as a solid basis both of circulation and loans.
'The whole circulation of the country, except a limited amount of foreign coin, would, after the lapse of two or three years, bear the impress of the nation whether in coin or notes; while the amount of the latter, always easily ascertainable, and, of course, always generally known, would not be likely to be increased beyond the real wants of business.
'He expresses an opinion in favor of this plan with the greater confidence, because it has the advantage of recommendation from experience. It is not an untried theory. In the State of New York, and in one or more of the other States, it has been subjected, in its most essential parts, to the test of experiment, and has been found practicable and useful. The probabilities of success will not be diminished but increased by its adoption under national sanction and for the whole country.
'It only remains to add that the plan is recommended by one other consideration, which, in the judgment of the Secretary, is entitled to much influence. It avoids almost, if not altogether, the evils of a great and sudden change in the currency by offering inducements to solvent existing institutions to withdraw the circulation issued under State authority, and substitute that provided by the authority of the Union. Thus, through the voluntary action of the existing institutions, aided by wise legislation, the great transition from a currency heterogeneous, unequal, and unsafe, to one uniform, equal, and safe, may be speedily and almost imperceptibly accomplished.
'If the Secretary has omitted the discussion of the question of the constitutional power of Congress to put this plan into operation, it is because no argument is necessary to establish the proposition that the power to regulate commerce and the value of coin includes the power to regulate the currency of the country, or the collateral proposition that the power to effect the end includes the power to adopt the necessary and expedient means.
'The Secretary entertains the hope that the plan now submitted, if adopted with the limitations and safeguards which the experience and wisdom of senators and representatives will, doubtless, suggest, may impart such value and stability to Government securities that it will not be difficult to obtain the additional loans required for the service of the current and the succeeding year at fair and reasonable rates; especially if the public credit be supported by sufficient and certain provision for the payment of interest and ultimate redemption of the principal.'
Congress adjourned after a session of eight months, and failed to adopt Mr. Chase's recommendation. Indeed, it had then but few advocates in Congress or the country. Events rolled on, and our debt, as anticipated by Mr. Chase, became of vast dimensions. In his Report of December, 1861, the public debt on the 30th June, 1862 (the close of the fiscal year), was estimated by the Secretary at $517,372,800; and it was $514,211,371, or more than $3,000,000 less than the estimate. In his Report of December 4, 1862, our debt, on the 30th June, 1863, was estimated by Mr. Chase at $1,122,297,403, and it was $1,097,274,000, being $25,023,403 less than the estimate. The average rate of interest on this debt was 3.89, being $41,927,980, of which $30,141,080 was payable in gold, and $11,786,900 payable in Federal currency. It will thus be seen that the whole truth, as to our heavy debt, was always distinctly stated in advance by Mr. Chase, and that the debt has not now quite reached his estimate. Long before the date of the second annual Report of the Secretary, the banks had suspended specie payments, and the Secretary renewed his former recommendation on that subject in these words:—
