When Secretary of the Treasury Salmon P. Chase resigned in 1864, President Lincoln promptly appointed William P. Fessenden (b.1806-1869) to succeed him. As chairman of the Senate Finance Committee (1861-1864), Fessenden had taken taken a leading part in framing measures relating to revenue and appropriations to finance the Civil War. Reluctant to take the position of Secretary due to ill health, Fessenden succumbed to Lincoln's wishes when Lincoln told him "that the crisis demanded any sacrifice, even life itself."
Upon assuming office he was immediately faced with the government's need for money. With the aid of Civil War financier Jay Cooke, Fessenden marketed several successful short-term loans bearing exceptional interest rates that were well subscribed to by the American people. During Fessenden's term, the problem created by the inflationary greenbacks, first issued in 1863, began to emerge. Debate would rage for the rest of the century over replacing them with currency backed by specie or taking advantage of the inflationary soft money during periods of expansion. After only eight months, Fessenden resigned and returned to the Senate where he became chairman of the Joint Committee on Reconstruction.
- Text Courtesy of the Office
of the Curator
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