|1.||A 281-ton sidewheel steamer from New York purchased by the U.S. government later in the year and renamed the U.S. revenue cutter Nemaha in 1864. Lytle, Merchant Vessels, 65, 135; U.S. Department of Transportation, , 418.|
|2.||A 178-ton sidewheeler constructed in Providence in 1849. Lytle, Merchant Vessels, 124.|
Letter in clerk's hand, signed by. Chase. Chase Manhattan Archives (micro 19:0396).
My dear Sir.
A word or more in addition to what I have said. Think of the enormous interest we are piling up. Great Britain, in a century, has made a debt of $[4.]000.000.000; but the interest is only 3%, which however, makes the startling sum of $120.000.000, a year. We, in two years, unless we retrench, are making a debt of $1200.000.000, on which the interest if in Bonds, as usual, will be at least 6%, or $72.000.000. Thus, in two years, you impose on the people, practically, six-tenths of the load which British Statesmen have educated that nation to bear, in the course of near a hundred years.
We must resort to every means of lightening the load. For the present, the most available means is in supplying the circulation. Circulation is a loan from the user without interest. This circulation should embrace all the forms and denominations usually employed for that purpose. I, therefore, advise the striking out the limitation to Five Dollars,1 until resumption of specie payment.
It is not to be disguised, however, that the furnishing of Circulation by the Government is full of danger. This expedient, therefore, should be temporary, and as temporary as possible.
But the substitute for it to be permanently adopted should be one which will still aid in keeping down the rate of interest. This will be found, if at all, I think, in a Banking System organized on the basis of specie payments, secured by deposits of Government Bonds and suitable legislative provisions. In this arrangement, a small per centage might be charged for the circulation furnished the Banks, thus indirectly lightening interest; while, by the market thus opened for Bonds, the Government would be protected against extravagant rates for its Loans. In my judgment, a five per cent Bond, capable of being used as a basis of circulation, would be worth more in the market than a six per cent Bond, without that capacity.
Don't forget the change I suggested of "This", for "The within", in the legal-tender words to be printed on the backs of the bills.
S P CHASE
Hon. Wm. P. Fessenden.