Show LIVE QUESTIONS A series of articles contributed by advanced thinkers THE DEMAND NOTES OF 1861 AND 1862 the discussion of tho the money question seems to pervade tho the very a air ir in in a all 11 parts of the tha country I 1 get continually asking the lie status of tho the fust of united states tr treasury eaury notes 1 I latown blown is as demand notes issued during abo war in reply I 1 will state that the erst was authorized by the net act of july 17 1801 another issue of 0 0 0 0 0 waa T authorized 11 17 cf I 1 by tho the act of NO Tol F feb e 1 1 12 2 I 1 these 6 e two issues mado made tho of notes in question tibey did not bear interest and were not at first bezal tender abc they ac were de legally redeemable in coin oa demand m and which caused them to be called demand notes dut cut us as the coin of tho the country disappeared during the first six month of the war they could not bo be redeemed in coin so EO they began to depreciate in this emergency the secretary of the treasury ordered them to be received for duties on irai arts crts As soon as they were thus received they rose to par with coin in addition to being received in tho the revenues of the government the act of march 17 1862 made the demand nota notes legal tender to the same extent as the greenb greenback acL in order to be very plain and distinctly understood I 1 will recapitulate the demand notes amounting to were not actually redeemed in coin during thil ahn war because the coin was not on hand but they were receivable by the government the same as coin and were legal tender to everybody except bond holders the qualities of legal tender and kept them as good as gold at all tunes while the greenbacks green backs which were not receivable by the government depreciated considerably it should be noted that the greenback and the demand note dote were equally r redeemable dee mable on demand the greenbacks green backs bore no f future date of redemption hence they were due on demand in accordance with a principle of law that a noto note demanding payment v w th ith no date of it maturity atu rity is due on demand in practice and in ill law 1 iw it is ia a demand note benelie the greenbacks green backs were due and redeemable dee mable in coin the moment of issue isaae the same as the demand notes but be caust of a lack of cf coin in point of fact neither was so xe deemed during the war so in the matter of coin redemption the demand notes and th the 0 greenbacks green backs were on the same legal footing inthe in the matter of legal tender to individuals X no DW JOHN DAVIS they on oil the famo footing aate march 17 1862 tho the demand notes were however receivable in the revenues of the government and the green backs N w ere not that was the only legal difference that gave rise to the difference in the values valnes ol of the two classes of notes during the ohp war and up to october 1878 when the government began to receive the tha greenbacks green backs in t tie he revenues the late judge martin in his work on tho the money of nations cites numerous exam examples pleis of the efficacy of tha on the part of the government in maintaining money at par on page he says any paper money issued by the united states and made receivable tor for all debts due the government will always bo be preferred to coin empry step of united states history under the constitution proves this 1 the notes of the first bauk bank of the united states from 1791 until 1811 were made by the law creating the bank full legal tender for all debts due the united states whether the lank bank paid coin or not nol these notes were always preferred tobin 2 the y notes issued with and without interest in 1812 1818 1813 IS 14 and 1813 1815 N warr ere I 1 oil full legal tender for all debts due the government and gallatin aud and campbell ll of the treasury hay were equal to coin though ill he ban bails L opposed tum as they do legal kendir notes DOWS now DOW SEiO 1860 I 3 the notes of the bauk bank of the united states from 1816 until 1886 1836 were made by the law the banks fall all agal lc gal tender for all debts due the united states they were for 20 deais at home find and abroad better than and to coin aiom until 1818 18 the treasury notes of the united d states stales to the oie amount of nearly with and without int fiest were not dot only harwith par with lut but preferred to coin for the reason that the law made them receivable for all debts due the unit united d states 4 in 1867 1857 congress con greBS authorized the ho issue of treasury notes dotes which the law mado full legal tender borall for all debts due the government they were equal with and preferred to coin 6 in 1861 and 1862 before the issue of legal tender notes congress issued demand notes dotes they wire payable in but at first they were iver not made legal tender for debts due the government they went to a discount though payable in coin but when by the ou 01 der of secretary chase chaee they were made receivable for duties ou on imports they were at once not only equal with coin but preferred taki ca 0 were made ful fuh legal tender bende on page I 1 ac G I 1 judge al martin artin states that of the demand notes were still I 1 in in circulation in 1680 the rest hall had been retired jonn JOHN DAVIS DA vis |