Secretary of The Treasury
Chase served as Secretary of the Treasury in President Lincoln's cabinet from 1861 to 1864, during the Civil War. In that period of crisis, there were two great changes in American financial policy, the establishment of a national banking system and the issue of paper currency. The former was Chase's own particular measure. He suggested the idea, worked out the important principles and many of the details, and induced the Congress to approve them. It not only secured an immediate market for government bonds, but also provided a permanent uniform, stable national currency. Chase ensured that the Union could sell debt to pay for the war effort. He worked with Jay Cooke & Company to successfully manage the sale of $500 million in government war bonds (known as 5/20s) in 1862.
The first U.S. federal currency, the greenback demand note, was printed in 1861–1862, during Chase's tenure as Secretary of the Treasury. These greenbacks formed the basis for today's paper currency. It was Chase's responsibility to design the notes. In an effort to further his political career, his face appeared on a variety of U.S. paper currency, starting with the $1 bill so that the people would recognize him.
On October 10, 1862, Lincoln’s Secretary of the Navy, Gideon Welles wrote that “a scheme for permits, special favors, Treasury agents, and improper management” existed and was arranged by Treasury Secretary Chase for General John A. Dix. The motive of Chase appeared to be for political influence and not for financial gain.
Perhaps Chase's chief defect was an insatiable desire for high office. Throughout his term as Treasury Secretary, Chase exploited his position to build up political support for another run at the Presidency in 1864.
He also tried to pressure Lincoln by repeatedly threatening resignation, which he knew would cause Lincoln difficulties with the Radical Republicans.
To honor Chase for introducing the modern system of banknotes, he was depicted on the $10,000 bill printed from 1928 to 1946. Chase was instrumental in placing the phrase "In God We Trust" on United States coins.
Read more about this topic: Salmon P. Chase
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