On these important subjects, which engaged public attention during the first half-century of our national history, there may be found many valuable speeches.  These, however, are largely of a Constitutional character.  It has been since the opening of our civil war that our financial discussions have assumed their greatest interest and importance.  We can attempt here only a meagre outline of the financial history of the last thirty years,—­a history which suggests an almost continuous financial struggle and debate.

Leaving on one side the questions of taxation and banking, the financial discussion has presented itself under two aspects,—­the issue and redemption of Government paper currency, and the Government policy toward silver coinage.  The issue, the funding, and the payment of Government bonds have been incidentally connected with these questions.

The first “legal-tender” Act was approved February 25, 1862.  Mr. Blaine says of this Act that it was “the most momentous financial step ever taken by Congress,” and it was a step concerning which there has ever since been the most pronounced difference of opinion.  The Act provided for the issue of $150,000,000 non-interest-bearing notes, payable to bearer, in denominations of not less than $5, and legal tender in payment of all debts, public and private, except duties on imports and interest on the public debt.  These notes were made exchangeable for 6 per cent. bonds and receivable for loans that might thereafter be made by the Government.  Supplementary acts of July 11, 1862, and January 17, 1863, authorized additional issues of $150,000,000 each, in denominations of not less than one dollar, and the time in which to exchange the notes for bonds was limited to July 1, 1863.  It was under these Acts that the legal-tender notes known as “greenbacks,” now outstanding, were issued.

The retirement of the greenbacks was begun soon after the war.  On April 12, 1866, an Act authorized the Secretary of the Treasury to retire and cancel not more than $10,000,000 of these notes within six months of the passage of the Act, and $4,000,000 per month thereafter.  This policy of contraction was carried out by Secretary McCulloch, who urged still more rapid contraction; but the policy was resisted by a large influence in the country, and on February 4, 1868, an Act of Congress suspending the authority of the Secretary of the Treasury to retire and cancel United States notes, became a law without the signature of the President.

On March 18, 1869, an “Act to strengthen the public credit” was passed, which declared that the “greenbacks” were redeemable in coin.  This Act concluded as follows:  “And the United States also solemnly pledges its faith to make provision at the earliest practicable period for the redemption of the United States notes in coin.”