Benjamnin F. Butler, Butler's Book: Autobiography and Personal Reminiscences of Major-General Benjamin Butler

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III. That the savings banks pay to their depositors or creditors only gold, silver, or United States treasury notes, current bills of city banks, or their own bills, to an amount not exceeding one third of their deposits, and of denomination not less than one dollar, which they are authorized to issue, and for the redemption of which their assets shall be held liable.

IV. The incorporated banks are authorized to issue bills of a less denomination than five dollars, but not less than one dollar, anything in their charters to the contrary notwithstanding, and are authorized to receive Confederate notes for any of their bills until the 27th of May inst.

V. That all persons and firms having used small notes or “shinplasters,” so called, are required to redeem them on presentation at their places of business, between the hours of 9 A. M. and 3 P. M., either in gold, silver, United States treasury notes, or current bills of city banks, under penalty of confiscation of their property and sale thereof, for the purpose of redemption of the notes so issued, or imprisonment for a term of hard labor.

VI. Private bankers may issue notes of denominations not less than one nor more than ten dollars, to two thirds of the amount of specie which they show to a commissioner appointed from these headquarters, in their vaults actually kept there for the purpose of redemption of such notes.

The effect of that order upon the people was marvellous. The whole commercial and trading community was at once relieved. The reaction was visible and an air of cheerfulness and hope was noticeable everywhere. Business resumed its channels and trade was generally reopened. One gentleman, a strong secessionist, said to a member of my staff that that order was equal to a reinforcement of twenty thousand men to the army of New Orleans.

The influence of that order and my action in regard to feeding the poor and cleaning the streets of the city and other just measures of the administration, Union people said, would have caused a general manifestation of Union sentiments in New Orleans during that summer, save that the continual bad news from the army of McClellan on the peninsula made them afraid that the Union control of New Orleans would be short; and that view of the war was fostered continually by telegrams from Richmond giving the most glorious accounts of the destruction of McClellan's army. The rebels had telegraphic communication from Richmond to a point within forty miles of the city on the opposite side of Lake Pontchartrain, and