On the 31st of January, 1867, he had issued anew $4,000,000, May 31 $2,500,000, and during December, 1867, $1,842,400.

In answer to remonstrance against this practice the Secretary maintained that the authority to contract and to cancel the legal-tender notes did not require him to do it, but left it within his discretion.

This was unquestionably the law of the case.
Mr.McCulloch in his official report insisted on the funding or payment of the balance of interest-bearing notes, and upon a continued contraction of the currency, as the first measure for promoting the National prosperity; and he presented a strong argument in favor of permanent specie payment.

He reported that he had not always retired notes in each month to the extent permitted, but he declared that the effect of the policy as carried out had been salutary and that its continuation would be obviously wise.

Yet he feared that financial views were inculcated, which if not corrected might lead to its abandonment.