Don Piatt, a noted journalist of Washington, told the story of the first
proposition to President Lincoln to issue interest-bearing notes as
currency, as follows:
“Amasa Walker, a distinguished financier of New England, suggested that
notes issued directly from the Government to the people, as currency,
should bear interest. This for the purpose, not only of making the notes
popular, but for the purpose of preventing inflation, by inducing people
to hoard the notes as an investment when the demands of trade would fail
to call them into circulation as a currency.
“This idea struck David Taylor, of Ohio, with such force that he sought
Mr. Lincoln and urged him to put the project into immediate execution.
The President listened patiently, and at the end said, ‘That is a good
idea, Taylor, but you must go to Chase. He is running that end of the
machine, and has time to consider your proposition.’
“Taylor sought the Secretary of the Treasury, and laid before him Amasa
Walker’s plan. Secretary Chase heard him through in a cold, unpleasant
manner, and then said: ‘That is all very well, Mr. Taylor; but there is
one little obstacle in the way that makes the plan impracticable, and
that is the Constitution.’
“Saying this, he turned to his desk, as if dismissing both Mr. Taylor
and his proposition at the same moment.
“The poor enthusiast felt rebuked and humiliated. He returned to the
President, however, and reported his defeat. Mr. Lincoln looked at
the would-be financier with the expression at times so peculiar to
his homely face, that left one in doubt whether he was jesting or in
earnest. ‘Taylor!’ he exclaimed, ‘go back to Chase and tell him not
to bother himself about the Constitution. Say that I have that sacred
instrument here at the White House, and I am guarding it with great
care.’
“Taylor demurred to this, on the ground that Secretary Chase showed by
his manner that he knew all about it, and didn’t wish to be bored by any
suggestion.
“‘We’ll see about that,’ said the President, and taking a card from the
table, he wrote upon it:
“‘The Secretary of the Treasury will please consider Mr. Taylor’s
proposition. We must have money, and I think this a good way to get it.
“‘A. LINCOLN.’”