James S. Pike to William H. Seward, December 17, 1862

Mr. Pike to Mr. Seward.

Sir: I have had the honor to receive your despatch of the 21st of November, No. 79. It is gratifying to be assured that Congress will return to a wise system of finance so unfortunately departed from at the last session. The act of making government paper legal tender roused a general distrust in commercial and financial circles in Europe, which a promise to continue to pay the interest on government bonds in coin failed to allay. It was argued that the temper which prompted the greater assault on capital would not stick at the less, when necessity pressed. The result is seen in the general collapse of American securities in European markets, and the yet growing distrust of our financial management, a result which sound financiers do not believe to be a necessary consequence of the war, or of any circumstances which have yet arisen in its prosecution.

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I have the honor to be, with great respect, your most obedient servant,