been negotiated on any reasonable terms without a firm adherence to this
policy.

That part of Mr. Chase's financial system which is most questionable,
and which affords his assailants a fulcrum for their attacks, is its
interference with the State banks and with the currency which they have
been supplying to the country. The issuance of Treasury notes in the
form of a circulating medium, and with the qualities of a legal tender,
has revolutionized the whole currency and exchanges of the country, and
has given universal satisfaction to the people. But this popular
judgment is by no means an unerring test of the wisdom or safety of such
a measure. Its necessity, however, and its eminent success will forever
stamp it as an expedient of great usefulness and value, especially as
the Secretary has most judiciously arrested the system at that point
where its unquestionable advantages still outweigh its acknowledged
dangers and inconveniences. He informs us that these issues 'were wanted
to fill the vacuum caused by the disappearance of coin, and to supply
the additional demands created by the increased number and variety of
payments;' and he adds: 'Congress believed that four hundred millions
would suffice for these purposes, and therefore limited issues to that
sum. The Secretary proposes no change of this limitation and places no
reliance therefore on any increase of resources from increase of
circulation. Additional loans in this mode would indeed almost certainly
prove illusory; for diminished value could hardly fail to neutralize
increased amount.'

In consequence of these issues, the average rate of interest on the
whole public debt on the 1st of July last, was only 3.77 per centum, and
on the 1st of October, 3.95 per centum.