The reader who goes back to the debates upon the legal-tender bills will find that most of the unfortunate consequences that followed their enactment were foretold in Congress--the decline of real wages, the injury done creditors, the uncertainty of prices that hampered legitimate business and fostered speculation. But a majority of this Congress were ready to subject the community to such ills because they believed that the relief of the treasury from its embarrassments was of more importance than the maintenance of a relatively stable monetary standard. GREENBACKS AND EXPENDITURES What effect had the greenbacks upon the amount of expenditures incurred? Few questions raised by the legal-tender acts have attracted more attention than this. Even while the first legal-tender bill was being considered its critics declared that if made a law it would increase the cost of waging the war by causing an advance in the prices of articles that the Government had to buy. As the war went on the soundness of this view became apparent. When the war was over and the divers reasons that had deterred many men from criticizing the financial policy of the government were removed, competent writers began to express similar views with freedom. For example, Mr. C. P. Williams put the increase of debt at one-third to two-fifths; S. T. Spear, at a billion dollars; L. H. Courtney, an English critic, at nearly $900,000,000. Of later discussions that of H. C. Adams has attracted the most attention. He estimated that of the gross receipts from debts created between January 1, 1862, and September 30, 1865, amounting to $2,565,000,000 the gold value was but $1,695,000,000--a difference of $870,000,000 between value received and obligations incurred. A detailed consideration of the elements that enter the problem would seem to warrant a reduction of the estimates given to $791,000,000. It is hardly necessary to insist strenuously that this is but a very rough estimate. THE GREENBACKS AND RECEIPTS The total increase of receipts was approximately $174,000,000, as shown in the following table: (In millions of dollars) _1862_ _Fiscal Year_ _1866_ _(Six Months) 1863 1864 1865 (Two Months)_ Current receipts: From customs 33.5 69.1 102.3 84.9 31.3 From sales of public lands .1 .2 .6 1.0 .1 From direct tax 1.8 1.5 .5 1.2 .0 From miscellaneous sources .5 3.0 47.5 33.0 12.3 From internal revenue ... 37.6 109.7 209.5 64.4 ---- ----- ----- ----- ----- 35.9 111.4 260.6 329.6 108.1 Estimated actual increase 0 10 39 106 19 The caution is hardly necessary that the above results are to be accepted subject also to a wide margin of error.