Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-06-06
GRANT AND the FINANCES.
The President StIll Rigid B,litver In
an Early Return 70 n Specie Basis
=" Coin, Not Paper.'
The Character and Extent of the Legis-
laII0n be would Suggest = Free
Banking Witheut LImlt-Ete.

WASHINGTON, June Ex-senator
Jones has obtained permission from
President Grant to publish the follow
ing memorandum, prepared by the latter,
expressing his views upon the financial
questions:
believe it is" says the President,
a high and plain duty TO return to a
specie basis at the earliest practicable
day-nOt onlyin compliance with legis-
lative and party pledges, but as step
indispensable to lasting natl NAL pros
perity. believe, further, that the time
has come when this can be done, or at
least begun, with less embarrassment TO
every brancs1 Of industry than at any fI-
ture time. After resort has been had 10
unstable and temporary expedients TO
stimulate unreal prosperity and specu-
latiOn on basis other than coin as a
recognized medium Of exchange
| throughout the commercial world, the
/ particular mode selected to bring
| about the restoration of a specie stand
ard is not Of so much consequence as
that some adequate plan be devised and
fixed, when currency shall be exchange
able for COMA plan adopted and rigid
ly adhered to. 1t is not probable that
any legislation suggested by me would
Prove acceptable to both branches of
congress, and, indeed, full discussion
might shake my own faith in the de-
tails of any plan | might propose. /
will, however, venture to state the gen
eral features of the action which seems
t. me advisable, as the financial platform
on which l woul1 stand, and any de- |
parture from which would be in a spirit /
of concession and harmony in reference |
tocOnticting opinions. First, would like !
to see the iegal-teDder clause, so-called, /
repealed, the repeal to take effect at some I
future time, say July |, 1875. This would 1
cause all contracts made after that date |
for wages, sales, etc, to be estimated in /
coin. 1t would correct our notions of ]
values. The specie dollar would be the |
only dollar known as the measure If (
equivalents. When debts afterWard con- /
tIacted we're paid in currency, instead of /
calling a paper dollar a dollar, and /
quoting gold at so much premium, we /
should think and speak of paper at so |
much discount. This alone would aid |
greatly in bringing the cuFrencies 1
nearer together, at par. Second, l /
would like to see provision that at |
fixed day, say July /, 1876, the currency /
isS ued by the United States should be re-
deemed in coin on presentation to any /
assistant treasurer, aud that all currency
so redeemed should be cancelled and /
never reissued. To effect this it would
be necessary to authorize the issue OF
bonds payable in gold bearing interest
as would command par in gold, to be
put out by the treasury only in such |
sums as should from time to time
be needed for purposes of redemp-
ton. such legislation would insure
return TO sound financial principles in
two years, and would, in my Judgment,
work less hardship to the debtors inter
est than j5 likely to come from putting
OFF the day OF final reckoning. 1t must
be borne In mind, too, that the ere ditoris
interest had its day of disadvantage
also, when our present iinaneial system
was brought in by the supreme needs of
the nation at the time. | would further
provide that from and afterthe date fixed
for the redemption that no bills, wheth-
er of national banks or of the
United States, returned to the treasury
to be exchanged fr new bills
should be replaced by bills of less de-
nomination than ten dollars, and that
in one year after the resumption all bills
of less than five dollars should be with
drawn from circulation, and in two
years all bills of less than ten dollars
should lie withdrawn. The advantage
of this would be the strength given TO
the country against the time OF depres-
sion resulting from war, failure of crops,
or any other cause, by keeping always
in the hands Of the people large sup
ply Of precious metals. With all smaller
Transactions conducted in coin, many
millions OF it would be kept In constant
use, and, of course prevented from
leaving the country. Undoubtedly
a poorer currency will always drive the
better out OF circulation. With paper a
lega' lender and at discount, gold and
silver become articles of merchandise,
as much as wheat or cotton. The sur
plus will find the best market it can.
With small bills In circulation, there is
no use for coin except to keep it in the
vaults of banks to redeem their circula-
ton. During periods of great specula-
tion and apparent prosperity, there is
little demand for coin, and then it viii
flow out TO a market where it can be
made TO earn something, which it can
not do while lying idle. Gold, like any
thing else, when not needed, becomes a
surplus, and, like every other surplus, it /
seeks a market where it eau find
one. BY giving active employment
to coin, however its presence can, it
seems to me, be secuted, and panics
ana uepreSslOns, Hnlcn have occurred |
periodically in times of nominal
specie payments, il they cannot
be wholly prevented, they can
be greatly mitigated. Indeed, 1 ques-
ton whether it would have been found I
necessary to depart from the standard Of
specie in the trying days, which gave
birth to the first legalYtender act, had the [
country taken the ground of no small
bills as early as 1850. Again l
would provide an excess of rev. !
enGe over current expenditures. I
would do this by rigid economy, and by !
taxation where taxation can test be !
borne. Increased revenue would worL ,
} constant reduction Of debt and inte-
Test, and would provide coin to meet de-
nands on the treasury for redemption of I
is notes, thereby diminishing the
lmount of bonds needed for that pur- s
Iose. All taxes, after redemption be- |
5ins, should be paid in coin, or United S
states notes. This would force redemp- /
ion on the national banks. With mea.
ures like these, or measures which
you'd work out such results, l see no Z
anger in authorizing free banking with
ut limit" !