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  tentwenty
  years  bonds. 16  A  third  of  the  issue  had
barely  been  placed  before  the  rumbling  of  the  coming ­
  storm  convulsed  the  money  market  and  the  remainder ­
  of  the  offering  was  withdrawn.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  empowered ­
  if  necessary  to  issue  them  after  advertisement ­
  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  remainder ­
  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  preceded ­
  the  passage  of  the  enabling  act  an  unsuccessful ­
  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.