Surely, it was argued, the contraction had been severe enough to satisfy the advocates of the most stringent Procrustean policy.

The short obligations had been cut down nearly one-half since January, 1866.

If account were taken of compound-interest notes the reduction in currency ought to be reckoned at $100,000,000, and even at twice that sum, since the cash held by the Treasury had been taken from the circulation of the country.
The Secretary of the Treasury still adhered to the policy of contraction, and yet was charged with putting into circulation legal-tender notes that had been once withdrawn, in order to affect the market.

Thus in August, 1866, between the 8th and the 23d inclusive, he had withdrawn and destroyed $12,530,111, and of the 31st of that month he issued $12,500,000.

He had again in October, 1866, cancelled $500,000 on the 24th, and issued anew the same sum on the 25th.