¹ Laws of the United Stares Concerning Money, Banking, Loans, 1778–1909, National Monetary Commission, compiled by Huntington, Andrew T. and Mawhinney, Robert J., Doc. No. 480, Senate 61st Congress, 2nd Session (Washington, D.C., 1910). PP. 29–43.Google Scholar

² Gallatin, Albert, “Report of the Finances 1807,” Reports of the Secretary of the Treasury of the United States, Vol. 1 (Washington, D.C., 1837). p. 359Google Scholar, and Dallas, A. J., “Report of the Finances 1815,” Reports, 2:45.Google Scholar

³ Foreign coins officially circulated from 1793 until 1797, when a new law declared that only “Spanish milled dollars and parts thereof” were legal tender. This statute remained in effect until 1857.Google Scholar

⁴ Balinky, Alexander, Albert Gallatin, Fiscal Theories and Policies (New Brunswick, 1958), pp. 180–88Google Scholar and Gallatin, Albert, “Report of the Finances 1809,” Reports, p. 401.Google Scholar Also see “Report of the Finances 1811,” Reports, p. 449.Google Scholar

⁵ Idem., “Report of the Secretary of the Treasury, 1811,” Reports, p. 449. Also in the Niles Weekly Register, 11 22, 1811 (Washington, D.C.), 2:232.Google Scholar In a letter to the Chairman of the House Ways and Means Committee, Ezekiel Bacon, Gallatin blames the poor state of the finance on the failure of Congress to recharter the Bank of the United States, upon which he had relied heavily for the U.S. government to obtain loans, and also for the Legislature's refusal to double the tariff. Gallatin, Albert, “Letter to Ezekiel Bacon, January 10, 1812,” The Writings of Albert Gallatin, ed. Adams, Henry, Vol. I (New York, 1960), pp. 338–40.Google Scholar

⁶ Ibid., p. 448.

⁷ Gallatin, Albert, The Writings of Albert Gallatin, ed. Adams, Henry, 4 Vols. (Philadelphia, 1879), Vol. III, p. 5.Google Scholar

⁸ Bacon, Ezekiel, “Ways and Means Report of House, February 17, 1812,” American State Papers, Finance, U.S. Congress, ed. Lowrie, Walter, Vol. II (Washington, D.C., 1832), p. 539.Google Scholar

⁹ Bayley, Rafael A., National Loans of the United States from July 14, 1776 to June 30, 1880 (Washington, D.C., 1882), p. 48Google Scholar, and Adams, Henry Carter, Public Debts: An Essay in the Science of Finance (New York; Privately printed, 1887), pp. 117–18.Google Scholar

¹⁰ Gallatin, Albert, “Letter to John W. Eppes, February 25, 1810,” Writings, II:467–468.Google Scholar

¹¹ Idem., “Letter to Ezekiel Bacon, January 10, 1812,” Writing, II: 501. Also in Letter from the Chairman of the Committee of Ways and Means to the Secretary of the Treasury with the Answer of the Secretary of the Treasury (Alexandria, 1812), p. 14. Rare Book Room, National Archives, Washington, D.C.Google Scholar

¹² “Letter to Langdon Cheves, May 14, 1812,” cited by Knox, John J., United States Notes (New York, 1848), p. 22.Google Scholar

¹³ The Niles Weekly Register, June 15, 1812, 2:279.Google Scholar

¹⁴ Annals of the Congress of the United States 12th Congress, 1st Session, vol. I (Washington, D.C., 1853) p. 1495–1510.Google Scholar

¹⁵ Ibid. Also The Niles Weekly Register, June 13, 1812 3:300.

¹⁶ Ibid., pp. 1509–10.

¹⁷ Bayley, National Loans, pp. 48–49. Other major elements provided that 1) the notes were signed by persons designated by the President who were paid $1.25 for every note signed, 2) they were countersigned by the Comptroller of Loans for the state for which the notes were made payable, 3) the Secretary of the Treasury was authorized to borrow upon the security of the notes and pay them to the banks which would receive them at par, 4) interest ceased on the day of payment, and 5) strict penalties were imposed for counterfeiting.Google Scholar

¹⁸ Niles Weekly Register, 3:350. Also see Richmond inquirer, February 16, 1814, 2:2.Google Scholar The Treasury Reports, however, state that only $2.8 million were subscribed to by 1813. Dewey, Davis R., Financial History of the United States (New York, 1968), p. 137.Google Scholar

¹⁹ “Register of Treasury Notes,” Vol. 189, Record Group 53, National Archives (Washington, D.C.). Breen erroneously claims March 1813 as the final date of redemption.Google Scholar

²⁰ Gallatin, Albert, “State of Finance, December 1812,” Finance, 11:580.Google Scholar

²¹ Niles Weekly Register (July 4, 1812), 3:300.Google Scholar It should be noted that, as Walter Breen pointed Out, the Register had a bias toward Wall Street. Breen, Walter, “Promises, Promises,” Numismatic News Weekly, 01 1, 1974.Google Scholar

²² Dallas, A. J., “Letter to William Lowndes, November 27, 1814,” Reports, 1:244.Google Scholar

²³ Ibid.

²⁴ Niles Weekly Register (July 4, 1812), 3:300.Google Scholar

²⁵ Timberlake, Richard H., Origins of Central Banking in the United States (Cambridge, Massachusetts, 1978).Google Scholar Drawing upon statistical information compiled from Van Fenstermaker, J., A Statistical Summary of the Commercial Banks Incorporated in the United States Prior to 1819 (Kent, Ohio, 1965), Timberlake concluded that “as banks increased their holdings of treasury notes, their own note issues could increase by multiples of the treasury notes obtained. Bank notes were thus used as hand-to-hand currency, and the treasury notes were used mainly as bank reserves in lieu of specie.”Google Scholar

²⁶ “Receipts and Expenditures, from March 4, 1789 to December 15, 1815,” Finance, II:920.Google Scholar

²⁷ Madison, James, “Fourth Annual Message, November 4, 1812.” Compilation of Messages and Papers of the President's 1789–1897, Vol. I.Google Scholar

²⁸ Bayley, National Loans, p. 50.Google Scholar

²⁹ Gallatin, Writings, p. 196.Google Scholar

³⁰ Jones, William, “State of Finance, June 1813,” Finances, II: 1622–23.Google Scholar

³¹ Bayley, National Loans, p. 50.Google Scholar

³² Gallatin, Albert, “Report of the Secretary of the Treasury December 1812,” Reports, p.469.Google Scholar

³³ Bayley, National Loans, p. 50.Google Scholar

³⁴ DeKnight, W. F., History of the Currency of the Country and the Loans of the United States (Washington, D.C., 1897), p. 47.Google Scholar

³⁵ Messages and Papers of the Presidents, pp. 528–30. The direct tax amounted to $3 million and was assessed in 1814. For a useful table on these taxes, see Dewey, Financial History, p. 140.Google Scholar

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³⁷ Estimated expenditures at $43,350,000 and revenue at $16,000,000. Jones, Willliam, “State of Finance”, Finance, 2:651.Google Scholar

³⁸ Bayley, National Loans, p. 52.Google Scholar

³⁹ The Richmond Inquirer (May 7, 1814), 3:2, reported that by May 7, $10 million at 88 percent had been subscribed. In his report on Finances in December 1814, Dallas mentioned that proposals were invited on August 22, 1814 for $6 million at 6 percent; of this only $2,823,300 was subscribed; $100,000 at less than 80 percent; $2,213,000 at 80 percent; $510,300 at 80–88 percent. All but the $100,000 were accepted because there was no prospect of better terms and the money was indispensable. $410,000 of these contracts were reneged on by the banks. Special contracts for loans with the banks were unsuccessful. “Report on Finances December 1814,” Reports, p. 528.Google Scholar

⁴⁰ Jones, William, “Report of Finance, December, 1813,” Reports, p. 502. There is no corroborating evidence that an annual issuance of $5,000,000 was ever authorized.Google Scholar

⁴¹ Bayley, National Loans, p. 52.Google Scholar

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⁴⁵ Ibid., p. 236 and p. 266; also in Niles Weekly Register (December. 24, 1814).

⁴⁶ Niles Weekly Register (December. 24, 1814).Google Scholar

⁴⁷ Idem., “Report of the Secretary of the Treasury, November, 1815,” Reports, 11:13.

⁴⁸ Bayley, National Leans, p. 56.Google Scholar

⁴⁹ Ibid., p. 57.

⁵⁰ Gallatin, Albert, “Letter to Monroe, October 26, 1814,” Writings, 1:642.Google Scholar

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⁵⁴ Annals, 13:3 (November. 12. 1814), p. 557.Google Scholar

⁵⁵ Ibid., p. 559.

⁵⁶ Annals, 13:3 (January. 7, 1815), p. 1045. Also in the Richmond Inquirer (January. 11, 1815), 2:3.Google Scholar

⁵⁷ Annals, 13:3 (December. 13, 1814), p. 884.Google Scholar

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⁶⁰ Dallas, A. J., “Letter to John Eppes, February 20, 1815,” Reports, pp. 273–75.Google Scholar

⁶¹ Crawford, William H., “Report of the Treasurer,” Reports, p. 125.Google Scholar The first known transaction in small Treasury notes was $150,000 ordered by Smith, Johanthan, Cashier of the Bank of Pennsylvania on 06 28, 1815. “Domestic Letters 1814–1816,” Vol. I, Record Group 53, Archives (Washington, D.C.), p. 108.Google Scholar

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⁶⁵ Richmond, Examiner (12. 31, 1814), 3:2 & 3.Google Scholar

⁶⁶ Report in the Niles Weekly Register, 7:3361.Google Scholar

⁶⁷ Breen, in Numismatic News Weekly, January 15, 1974, p. 34; and Knox, United Slates Notes, p. 38. Knox makes the additional statement that “after deducting discounts and depreciation,” the notes were rapidly funded alter December 1814.Google Scholar

⁶⁸ Report in the Niles Weekly Register (May 20, 1815), 8:203.Google Scholar

⁶⁹ Ibid., p. 214.

⁷⁰ Ibid., p. 215.

⁷¹ Richmond, Examiner (06 7, 1815), 3:4.Google Scholar

⁷² WashingtonNational Intelligencer (08 15, 1815), 1:3.Google Scholar

⁷³ Niles Weekly Register (December. 4, 1815), 3:2.Google Scholar

⁷⁴ Ibid.

⁷⁵ Ibid. (August. 26, 1815), p. 439.

⁷⁶ Report in the National Intelligencer (January. 5, 1815), 3:2.Google Scholar

⁷⁷ Dallas, A. J., “Report on the Finances, 12, 1815,” Reports, p. 26.Google Scholar

⁷⁸ Ibid., p. 52.

⁷⁹ Ibid. p. 75.

⁸⁰ Breen, in Numismatic News Weekly (January 15, 1974), p. 34.Google Scholar