By all manner of devices, patriotism and the
purchase of bonds were made to appear the same thing, and before
the end of the year $400,000,000 in five-twenty bonds had been
sold. This campaign to dispose of the five-twenties was the
turning-point in war finance, and later borrowings encountered no
such difficulties as those of 1862 and 1863.
Better known today than this precarious legislation is the famous
Act of 1863, which was amended in the next year and which forms
the basis of our present system of national banks. To Chase
himself the credit for this seems to be due. Even in 1861 he
advised Congress to establish a system of national banks, and he
repeated the advice before it was finally taken. The central
feature of this system which he advocated is one with which we
are still familiar: permission to the banks accepting government
supervision to deposit government bonds in the Treasury and to
acquire in return the right to issue bank-notes to the amount of
ninety per cent of the value of the bonds.
There can be no doubt that Chase himself rated very highly his
own services to his country. Nor is there any doubt that, alone
among Lincoln's close associates, he continued until the end to
believe himself a better man than the President.
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