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History of the Currency, 1848 - 1873 by Walter G. Watt, 1898

History of the Currency, 1848 - 1873 by Walter G. Watt, 1898, Page 10

8.
out the pending provision of the bill of 1847; and second, in the method of getting the notes into circulation. The reason for leaving out the funding provision of the bill of 1847 was to prevent the notes being converted into a loan by exchanging them for bonds. Under the law of 1847 the holder of the note instead of claiming what the law designed only to give him, namely, what was due on its face, first funded it into stock and then demanded a premium on the stock. As to the method of getting the notes into circulation this bill marks a departure from its predecessors. Under former bills the Secretary of the Treasury with the approval of the President could fix at his own discretion the rate of interest which the notes should draw, provided only it did not exceed six per centum. Under the present bill $6,000,000 was to be put - out in the old method, as it was important

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8. out the pending provision of the bill of 1847; and second, in the method of getting the notes into circulation. The reason for leaving out the funding provision of the bill of 1847 was to prevent the notes being converted into a loan by exchanging them for bonds. Under the law of 1847 the holder of the note instead of claiming what the law designed only to give him, namely, what was due on its face, first funded it into stock and then demanded a premium on the stock. As to the method of getting the notes into circulation this bill marks a departure from its predecessors. Under former bills the Secretary of the Treasury with the approval of the President could fix at his own discretion the rate of interest which the notes should draw, provided only it did not exceed six per centum. Under the present bill $6,000,000 was to be put - out in the old method, as it was important