Diary of Gideon Welles: Thursday, February 25, 1864

I called at the Treasury Department this morning relative to funds to pay the hands in the Navy Yard at Broooklyn. Chase appeared very well and calm. We talked of many difficulties. He wants the bank circulation suppressed. I told him we could not have two currencies, for the baser would always expel the better. He said the banks and individuals were hoarding the government paper and there must be some legislation to prevent the banks from circulating their paper, and it was desirable there should be a public sentiment in that direction. I do not think he has any sound, well-matured, comprehensive plan of finance, or correct ideas of money and currency, but he is quick of apprehension and has mental resources, and is fertile in expedients not always sound but which have been thus far made available.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 530