But the fact can not be concealed that theoretically the bill increases the paper circulation $100,000,000, less only the amount of reserves restrained from circulation by the provision of the second section.  The measure has been supported on the theory that it would give increased circulation.  It is a fair inference, therefore, that if in practice the measure should fail to create the abundance of circulation expected of it the friends of the measure, particularly those out of Congress, would clamor for such inflation as would give the expected relief.

The theory, in my belief, is a departure from true principles of finance, national interest, national obligations to creditors, Congressional promises, party pledges (on the part of both political parties), and of personal views and promises made by me in every annual message sent to Congress and in each inaugural address.

In my annual message to Congress in December, 1869, the following passages appear: 

Among the evils growing out of the rebellion, and not yet referred to, is that of an irredeemable currency.  It is an evil which I hope will receive your most earnest attention.  It is a duty, and one of the highest duties, of Government to secure to the citizen a medium of exchange of fixed, unvarying value.  This implies a return to a specie basis, and no substitute for it can be devised.  It should be commenced now and reached at the earliest practicable moment consistent with a fair regard to the interests of the debtor class.  Immediate resumption, if practicable, would not be desirable.  It would compel the debtor class to pay, beyond their contracts, the premium on gold at the date of their purchase, and would bring bankruptcy and ruin to thousands.  Fluctuation, however, in the paper value of the measure of all values (gold) is detrimental to the interests of trade.  It makes the man of business an involuntary gambler, for in all sales where future payment is to be made both parties speculate as to what will be the value of the currency to be paid and received.  I earnestly recommend to you, then, such legislation as will insure a gradual return to specie payments and put an immediate stop to fluctuations in the value of currency.

I still adhere to the views then expressed.

As early as December 4, 1865, the House of Representatives passed a resolution, by a vote of 144 yeas to 6 nays, concurring “in the views of the Secretary of the Treasury in relation to the necessity of a contraction of the currency, with a view to as early a resumption of specie payments as the business interests of the country will permit,” and pledging “cooperative action to this end as speedily as possible.”

The first act passed by the Forty-first Congress, [approved] on the 18th day of March, 1869, was as follows: 

  AN ACT to strengthen the public credit.