﻿THE PAST

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issue of notes payable on demand, out of funds then
on hand, and in the treasury, is totally different in
principle from the issue of notes promising to pay
one year after date, intended to supply a present
deficit in the treasury, and to be reimbursed there-
after out of accruing revenue,” and that “ To issue
notes for circulation, payable on demand, under
cover of the authority to borrow money in the form
of treasury notes, is deemed an abuse of authority
which ought to be corrected.” 11

(C)	The declaration of war against Mexico on
May 13, 1846, followed close upon the tariff reduc-
tion of that year.12 To provide for the anticipated
deficit, Congress authorized an issue of treasury
notes and, alternately as to any part, an issue of six
per cent, stock — the amount of both issues not to
exceed $10,000,000. The notes were identical with
the 1837-42 issues, the same plates even being used
in printing them. They were emitted in denomi-
nations of not less than $50, reissuable within the
term of maturity. The notes might be tendered in
direct payment of such public creditors as would re-
ceive them, or might be used by the Treasury in
borrowing money to be so applied.

The Treasury’s needs continuing, the amount of
notes originally authorized was increased six
months later by $5,000,000, and a second issue of
$23,000,000 of one or two year notes was au-
thorized, subject to reissue and receivable in pay-
ment of all public dues. The notes might be called
upon sixty days notice and were fundable into six
11 Knox, pp. 54-61.	12 Knox, chap. vii.