222 History op the greenbacks

but late in the mouth was repulsed at Paducah with a loss

of 1,500 men. More important in its effect upon the gold

market was the slowness of Congress in passing the finance

bills. Even the New York Tribune became impatient. "A

Congress fit to exist," it said, " would have matured and per-

fected some sort of finance system before the close of its

fourth month." 1

In April Congress still passed no revenue laws, and the

war news was unfavorable. The massacre of Fort Pillow, the

failure of the Red River expedition, Steel's forced evacuation

of his position in Arkansas, the Confederate capture of Fort

Williams, and later of Plymouth, in North Carolina, all

combined to make a gloomy commencement of the spring

campaign. 2 Slight successes in Texas, Grant's preparations

for a vigorous advance, and Union gains in the elections in

Connecticut, Rhode Island, Missouri, and New Jersey could

not counterbalance these disasters and the inactivity of

Congress. Consequently the currency fell $3.50 below the

average of March.

In the first half of May there was a rise. Sherman set-

ting out from Chattanooga succeeded by skilful maneuvers

In forcing Johnson back from Dalton, then from Resaca and

then from Allatoona Pass. At the same time Grant crossed

the Rapidan and fought the desperate battles of the Wilder-

ness and Spottsylvania Court House. Every rumor from the

field caused a rise or fall of the currency, 3 but despite

Grant's enormous losses, he was believed to have the advan-

tage, so that the general trend of the fluctuations was upward

until near the middle of the month. But on the 10th Ave-

1 Editorial article, March 29, 1864.

2 The feeling of depression is shown by the New York Tribune's remark : "With

perhaps a single exception, the important military events which we have been called

upon to record since the early opening of the campaign have been disasters to the

national cause " (April 29, 1864).

a E. g., see New York Times, money article, May 12, 1864.

SPECIE VALUE OF THE PAPER CURRENCY 223

rill's cavalry was defeated by Stuart, on the 15th Siegel

was routed at Newmarket, and on the 16th Beauregard

forced Butler back upon Bermuda Hundred and intrenched

along his front so strongly as to prevent his co-operating

with Grant. Meantime Lee forestalled Grant in his move-

ment to the North Anna, and Congress still failed to pass

the tax bills. Consequently after the 10th currency fell

again; by the 17th it was back to the opening value of the

month, and as the depreciation continued the average value

was $1.20 less than in April.

During these first five months of 1864 there had been a

depreciation of less than $2 a month, due to lack of prog-

ress in subduing the rebellion and the dilatoriness of Con-

gress in voting taxes. In the next two months this rate of

depreciation was greatly accelerated, in part at least because

of the appearance of a new factor in the market the

"gold bill." This measure, however, was only the last of a

series of governmental attempts to control the price of gold.

As was shown in the preceding section, the treasury officials

believed that the premium was in very large measure due

to a rise in the value of gold effected by the nefarious

arts of speculators. Could this speculation be broken up,

they thought that the premium would fall back to a moderate

figure and the credit of the government be greatly enhanced.

Acting on this principle, Congress, on March 3, 1863, laid a

stamp tax upon time sales of gold, amounting to one-half of

1 per cent, of the amount plus interest at 6 per cent, per

annum, and at the same time forbade loans on the pledge of

coin in excess of its par value. 1 News of the passing of this

law was followed by an advance of the currency from $58.22

1 12 Statutes at Large, sees. 4, 5, p. 719. At the same time a bill was pending in the

New York legislature to prohibit banks from selling specie above par and from loan-

ing upon specie so long as specie payments were suspended. It had some effect upon

the market, although it finally failed of becoming law. See money articles of New

York Tribune, February 6, 7, and March 5, 1863; Times, March 4, and April 17, 1863.

224 HlSTOBY OP THE GREENBACKS

on the 3d of March to $66.67 on the 6th ; but the gold market

quickly rallied, and by the 10th the currency had fallen

again to $61.35.'

Though this measure produced but little effect, for other

reasons, the average gold value of the currency advanced

slowly from March to June, 1863, and much more rapidly

in July and August. During this period, therefore, the

public concerned itself little with the iniquity of gold specu-

lation. But when the current turned and the premium

began to advance again, denunciation of the speculators

recommenced. As a specimen of the way in which they

and their works were regarded by a large section of the

most earnest northern people, one of the numerous edi-

torial articles on the subject may be quoted from the New

York Tribune:

For years past, the partisans of the Rebellion quartered in our

city have systematically and by concert striven and employed their

means to increase the premium on gold. Their intercepted letters

prove that they did this in behalf of their master, Jeff. Davis, and