The truth was that the Secretary's policy was counter to the popular wish, and evidence was accumulating that Congress would not sustain him in its continued enforcement.

The Secretary had confidently relied upon the bankers and commercial men of the country; but the serious fact was now developed, that many of the most prudent financiers had concluded that the changes in the volume of the currency were causing mischief, and that the process of contraction had been carried as far as was desirable.
The Secretary argued bravely and wisely in his report, in favor of paying the principal and interest of the Government bonds in coin.
His argument was designed to meet heresies which had found favor in unexpected quarters.

The plea was urged by the new and short-lived school of finance that the notes of the National banks should be withdrawn and greenbacks substituted for them, that all payments by the Government on the principal of the bonds should be in its own paper.
It was admitted by these novel theorists that the bonds on their face promised coin for interest; but they maintained that the bonds had been issued in large part when gold was at a heavy premium for paper, and could rightfully be liquidated in paper at its advanced value.
Propositions were frequently presented to stop the issue of bonds and to pay out notes for any obligations of the Government offered at the Treasury on becoming due in any form.

The pressure of rapid contraction secured a hearing for every extravagant proposition.
Prejudice against speculators in gold, who during the war had grown rich on the disasters of the Union, was added to the discussion, especially while the premium was maintained and the National credit charged with odium on its account.
At the opening of the second session of the Fortieth Congress (December, 1867) numerous resolutions and bills demanding the stoppage of contraction were referred to the Committee on Ways and Means.
Five days afterwards Mr.Schenck reported a bill of four lines, by which the "further reduction of the currency by retiring and cancelling United-States notes is prohibited." It had the unanimous approval of the Committee on Ways and Means, and was passed by the House,--_ayes_ 127, _noes_ 32.

The minority included a goodly number of leading Republicans.