Strong union sentiments prevailing, disloyalty to the federal government in any form was out of fashion. None but the loyal could draw money from the state treasury. But the most stringent test was the passage of an act compelling the acceptance of United States notes in payment of debts and taxes, as well as an act providing for the payment of the direct tax levied by act of congress in August 1861,[1] amounting to over $35,000, seven eighths of the annual revenue of the state.[2]
The legal-tender question was one that occasioned
much discussion, some important suits at law, and considerable disturbance of the business of the Pacific
coast. The first impulse of a loyal man was to declare
his willingness to take the notes of the government at
par, and in Oregon many so declared themselves. The
citizens of The Dalles held a meeting and pledged
themselves to trade only with persons "patriotic
enough to take the faith of the government at par." The treasurer of Marion county refused to receive
legal-tenders at all for taxes; while Linn received them
for county but rejected them for state tax; Clackamas
received them for both state and county tax; and Columbia at first received and then rejected them.[3] The
state treasurer refused to receipt for legal-tenders,
which subjected the counties to a forfeiture of twenty
per cent if the coin was not paid within a certain time.
In 1863, when greenbacks were worth forty cents on
a dollar, Jackson, Josephine, Douglas, Lane, Benton,
- ↑ The internal revenue law took effect in August 1862. Lawrence W. Coe of The Dalles was appointed collector, and Thomas Frazier assessor. W. S. Matlock was appointed U. S. depositary for Oregon to procure U. S. revenue stamps. Or. Statesman, Aug. 11 and Nov. 3, 1862.
- ↑ According to the message of Gov. Whiteaker, there were $40,314.66 in the treasury on the 7th of Sept., 1862. To draw the entire amount due the U. S. on the levy would leave a sum insufficient to carry on the state govt, therefore $10,000 was ordered to be paid at any time when called for, and the remaining $25,000 any time after the 1st of March, 1863; and the treasurer should pay the whole amount appropriated in coin. Or. Statesman, Oct. 27, 1862.
- ↑ S. F. Bulletin, Dec. 18, 1862; S. F. Alta, Nov. 18, 1862; Or. Argus, Dec, 6, 1862; Or. Statesman, Dec. 22, 1862; Or. Gen. Laws, 92.
