The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-08-26
FINANCIAL POLICY OF THE ADMINS
TRATION.
Frons the n. Y. Times.

From the n. Y. Times,
Thus far in his administration of the Gov
ernment President Grant has not set forth, in
an official form, the policy by which he is
governed when acting upon fiscal affairs
This utterance cannot reasonably be expected
prior to the meeting of Congress in December
next In his annual message, and in the re-
port of the Secretary of the Treasury, we may
expect to see clear and full development of
the policy of the President; and in the subse
Quent acts of Congress that policy will be
aided, strengthened, and, perhaps, modified.
In the meantime the acts of the administra-
ton enable us to form decided views of its
policy and intentions. First, the President
evidently intends to pay off the ''five-twen-
ties" as rapidly as he may in gold. Secondly,
in order to be able to make this payment
soon, the President is laboring to largely APP
preciate the credit of the Government; he is
struggling to lift its securities to the level of
the securities of the wealthiest European
States. When this end ismeasurably attained,
the President will be able to negotiate a loan
at par, in gold, at or 43 per cent, with the
proceeds of which to pay off twelve or fifteen
hundred millions of the public debt; thus, by
a mere saving III the rate of interest," lessen
ing our annual payments of interest, in gold,
S25.OOO, 900 or $50, 600, 900. Thirdly, to en-
able him to build up the Government credit
and lessen the interest upon the public debt,
the President has sedulously and with success
labored to collect the revenues without loss or
waste, and with less expense; also to intro
duce a rigid economy into every branch of the
public service. Great savings have been rea-
lized in the military and Treasury branches;
creditable savings in the State and Interior
Departments have been effected, and con-
siderable savings are hoped for from the
Navy and Post Office.
So far as the current movements of the
Treasury are concerned, until the crops are
moved it is not likely Treasury gold will be
sold for currency to be locked up. The en-
tire surplus of currency in the Treasury, on
the contrary, will be employed in the pur-
chase of bonds, as heretofore, that money
may be abundant and cheap at the time
crops are to be paid for and moved by trans
porters to market. And it may be that
further purchases of bonds will be made
directly with gold. At time of the year
so critical to producers, the President will
not withdraw currency from the channels of
trade and commences he will not send gold
into the market and sell it for currency
to lock up in the Treasury vaults. Such
procedure would reduce the value of our
currency now, and thus make money scarce
and dear, would distress all of the producers
of the country, and benefit nobody but
usurers and spectators. This error will not
be committed. No administration can desire
a money panic, and, as a consequence, low
prices for produce, upon the eve of the fall
| elections.
The policy of the President is, then, as re-
vealed by his acts, to appreciate the values OF
| all Government securities preparatory tC
the making of an effort to lessen the rates OF
interest on the public debt-to honestly col
lect the reVenues-to reduce expenditures
This policy, if successful, will enable the ad
ministration to place our finances upon 6
solid foundation, and to reduce the taxes.
Such is the financial policy of the Pres
dent, as developed by his acts. 1t is at one
simple and efficient. BY strengthening oul
credit we carry our bonds to par in gold 10y
becoming able to obtain money at 4 or d pei
cent. we can save l J or per cent. per yeal
upon our whole debt. Contests between
Government and bondhoiders are likely tC
lessen the value of bonds and destroy oul
hope of reducing the rate Of interest from
6 to per cent per annum. The policy o
the President is wisest and best. 1t is honest
simple, and statesmanlike. 1t will succeed i
adhered to and vigorously maintained,