MONOPOLY OF EXCHANGE. 431 



April 1 2th, 1866. The vote upon this bill will be seen on 

 another page. The provisions of the law, (which may be 

 found in Laws Relating to Loans and the Currency, page 

 75), were for retiring "any treasury notes, certificates of 

 indebtedness, certificates of deposit, or other representa- 

 tives of value, which have been or which may be issued 

 under any act of Congress. ' ' 



Our circulating medium at that time amounted in the 

 aggregate to $1,996,000,000. We had also, of registered 

 bonds, which could be used as banking securities $808,- 

 000,000. There is frequently a misconception or misrep- 

 resentation with regard to the 7.30 treasury notes, which 

 are included in the above statement. As they were an 

 interest bearing note, with coupon attached, it is claimed f 

 that they formed no part of our circulating medium. 

 But the records show, without a doubt, that they were 

 issued and circulated as money. In 1873, President 

 Grant said: 



u The currency has been contracted by the withdrawal 

 of the 7. 30 notes or bonds, for they were drawing interest 

 as bonds, when the law said they could be paid in ojeen- 

 backs." 



The treasurer of the United Slates issued and paid 

 out over $830,000,000 of these 7.30 notes, and when 

 written to asking if they were put out as money to pay 

 debts, he replied as follows: 



4 * MOHAWK, N. J., August 17, 1876. 

 Dear Sirs: 



Your letter of the i5th instant has been received. In 

 answer I have to say, that the 7.30 treasury notes were 

 intended, prepared, issued and used as currency. 

 Very respectfully yours, 



F. E. SPINNER, 



