THE PAST 
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legal tender issues. Not only did the historic 
treasury note develop into new instruments but the 
actual term, treasury note, came to be associated 
with one of these newer devices instead of remaim 
ing identified with the original expedient. There 
after, when recourse was had to the use of short 
term interest bearing obligations, the title treasury 
note was associated in public usage with legal tender 
demand notes and the term certificate of indebted 
ness was used in lieu of the old phrase. 
In February, 1862, Secretary Chase, embarrassed 
by the pressure of floating indebtedness, then vari 
ously estimated at from $80,000,000 to $180,000,- 
000, sought and obtained authority from Congress 
to issue to creditors who might desire to receive 
them certificates of indebtedness bearing six per 
cent, interest and payable in one year or earlier 
at the option of the Government. Substantial 
amounts were issued during the remaining three 
years of the war in payment of contractors’ audited 
accounts and disbursing officers’ checks; $50,000,- 
000 in 1862; $157,000,000 in 1863; $169,000,000 
in 1864, and $131,000,000 in 1865. When re 
ceived they were used either as collateral for pro 
curing bank loans or directly as a form of currency. 
Although circulating at a small discount they passed 
freely from hand to hand as current funds. The 
successive issues remained outstanding for the full 
term of their maturities, being then discharged from 
out of general revenue. At the end of the fiscal 
year 1866 only $26,400,000 of such certificates were 
outstanding and these were paid off in the next 
twelve months.