Speech in the Senate, on the Clause making Treasury Notes A Legal Tender, February 13, 1862.
February 13th, the Senate having under consideration a bill from the House of Representatives to authorize the issue of United States notes, and for the redemption or funding thereof, and for funding the floating debt of the United States, Mr. Collamer, of Vermont, moved to strike out the following words:—
“And such notes herein authorized, and the notes authorized by the Act of July 17, 1861, shall be receivable in payment of all public dues and demands of every description, and of all claims and demands against the United States of every kind whatsoever, except for interest upon bonds and notes, which shall be paid in coin, and shall also be lawful money and a legal tender in payment of all debts, public and private, within the United States, except interest as aforesaid.”
Mr. Collamer stated that some desired him to try the sense of the Senate on the question of private debts, but he preferred the above amendment, “that these notes shall not be tenderable upon any debts due by the Government or by individuals.” On this proposition he had already made an elaborate speech.
Mr. Fessenden also spoke elaborately upon the whole bill; but he characterized the legal tender clause as “the main question.” Here he said:—
“The question, then, is, Does the necessity exist?… If the necessity exists, I have no hesitation upon the subject, and shall have none. If there is nothing left for us to do but that, and that will effect the object, I am perfectly willing to do that.”
Mr. Sumner spoke last in the debate, and at least one Senator acknowledged that on the question of constitutional power he had been changed by this speech. The vote was then taken on the amendment, and resulted, yeas 17, nays 22.
So the motion to strike out the legal tender clause was rejected.