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<p>[QUOTE=&quot;Gam3rBlake, post: 8205310, member: 115909&quot;]But in 1861 Secretary Chase issued the following circular to the assistant treasurers to remove all doubt about the monetary status of the new notes:</p><p><br /></p><p>“<i>Under the acts of July 19th and August 5th last, Treasury Notes of the denomination of $5, $10, and $20, have been, and will continue to be issued, <b>redeemable in coin on demand</b> at the offices of the assistant treasurer at Boston, New York, Philadelphia, St. Louis, and at</i> <i>the Depository of Cincinnati. These notes are intended to furnish a current medium of payment, exchange, and remittance, <b>being at all times convertible into coin</b> at the option of holder, at the place where made payable, and everywhere receivable for public dues. <b>They must be always equivalent to gold</b>, and often and for many purposes more convenient and valuable.</i></p><p><i><br /></i></p><p><i><b>A sufficient amount of coin to redeem these notes promptly on demand will be kept with the depositaries</b>, by whom they are respectively made payable. And all depositors and collecting officers will receive them, enter them on their books, and pay them to public creditors as money. Large amounts of the notes of small denominations are rapidly being issued and distributed.”</i></p><p><i><br /></i></p><p>It says “redeemable in coin” which means there should be no discount on paper or premium on gold.</p><p><br /></p><p>Why pay a premium on a gold coin if your paper can be redeemed for gold coin?</p><p><br /></p><p>So it seems they were intentionally meant to trade at par and be used for import duties.[/QUOTE]</p><p><br /></p>

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