John Sherman

My study and experience as a lawyer in Ohio convinced me that the whole system of state banks, however carefully guarded, was both unconstitutional and inexpedient and that it ought to be overthrown.

With a narrow view of the powers of the national government, Congress had repeatedly refused to authorize a national bank, a policy I heartily approve, not from a doubt of the power of Congress to grant such a charter, but from the danger…

This protected the United States, but it did not save the people from loss, as, from necessity, they were compelled to use bank bills authorized by the several states, varying in value and security, and chiefly limited in circulation to…

The notes of a broken bank were rarely paid, the assets of such bank being generally applied to the payment of other liabilities, leaving the loss to fall on the holders of the notes, mostly innocent persons of limited means.

Inflation and apparent prosperity were often followed by the closing of one bank and distrust of all others.

The issue of circulating notes by state banks had been the fruitful cause of loss, contention and bankruptcy, not only of the banks issuing them, but of all business men depending upon them for financial aid.

Our annual expenditures at that time were four times the amount of our currency; were three times the aggregate coin of the country; were greater than any ever borne by any nation in ancient or in modern times.

The legal tender act, with its provision for coin receipts to pay interest on bonds, whatever may be said to the contrary by theorists, was the only measure that could have enabled the government to carry on successfully the vast…

Never before did a flourishing and prosperous state make such gigantic strides towards effecting its own ruin.

Never before was the world dazzled by a career of more reckless extravagance.

National bankruptcy is not an agreeable prospect, but it is the only one presented by the existing state of American finance.

Therefore, I repeat, the problem of this contest was not as to whether we could muster men, but whether we could raise money.

When have results more wonderful been accomplished in eight months?

Where does the history of nations present an example of greater physical weakness followed so soon by greater physical strength?

Maryland had, by clear and repeated votes and acts, arrayed herself on the side of the Union.

But from the passage of the legal tender act, by which means were provided for utilizing the wealth of the country in the suppression of the rebellion, the tide of war turned in our favor.

The great State of Kentucky, important as well from its central position as from the known prowess and courage of its people, hung suspended in doubt between loyalty and secession.

We had to appeal to the patriotism of bankers to accept the demand notes of the United States as money, with no prospect of being able to pay them.

Less than a year before the government was bankrupt; our bonds bearing six per cent. interest were sold at a discount; our national expenditures exceeded our receipts; loans could only be made upon the basis of coin, and this coin was…

The passage of the legal tender act was the turning point of our physical and financial history.

The legal tender clause was acquiesced in by all classes, and we had, for the first time, in circulation national paper money as the actual standard of value.

The public credit was greatly strengthened by the provision for the payment of interest in coin furnished by duties on imported goods.

Regarding this great measure as a necessary and proper one, and within our power to enact, I see plain before me the path of duty, and one that is easy to tread.

Rather than yield to revolutionary force, I would use revolutionary force.

This is not the time when I would limit these powers.