﻿THE PAST

15

ing to take them at the lowest rate of interest, not
exceeding 6 per cent.” The entire sum authorized
was issued, and the amount of issues and reissues
in all was $52,778,900 at rates of interest from three
to six per cent., emitted in denominations of not less
than $ioo.15

(E)	To discharge the treasury notes, issued in
1857 and still outstanding, Congress on June 22,
i860, authorized a loan of $21,000,000 in ten-
twenty years bonds.16 A third of the issue had
barely been placed before the rumbling of the com-
ing storm convulsed the money market and the re-
mainder of the offering was withdrawn. In lieu
Congress in December, i860, authorized an issue of
one-year treasury notes in denominations of not less
than $50, to an aggregate amount not exceeding
$10,000,000. The notes were to bear six per cent,
interest; but the Secretary of the Treasury was em-
powered if necessary to issue them after advertise-
ment at such rates of interest as might be offered
by the lowest responsible bidders. Only some
$70,000 were actually issued at six per cent., the re-
mainder commanding from seven to twelve per cent.
Nearly one-half of the $10,000,000 emitted bore
twelve per cent., and bids were actually received but
declined at rates ranging from fifteen to thirty-six
per cent. In the congressional debate which pre-
ceded the passage of the enabling act an unsuccess-
ful attempt was made to pledge the proceeds of the
public land sales for the specific redemption of the
notes, and an endeavor to reduce the minimum de-
15 Knox, p. 71.	16 Knox, chap. viii.