Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-06-11
President Grants Views ON the Cur
reney Question.
WASHINGTON. June 5

freslueht Grants Views on the our
reney Question.
WASHINGTON, June 3.
Senator Jones has obtained permission
from President Grant to publish the fol-
lowing memorandum prepared by the lat
ter. expressing his views upon the IMAM
clal question. The President says:
believe it a high and plain duty to return
10 a specie basis at the earliest practlcabIe
| day, not onl y in compliance with legislative
and party pledges, bat as a step indispensable
TO lasting national prosperity. belleVe, fur
/ tner, That the time has come when TINS can be
! zone, or at least be begun, with less emoaT-
| rassnnent 10 every branch OF industry tilan at
| any future time, after resort has been mad
! 70 unstable and temporary eXpedlents 10 stlinu-
iate unreal prosperity and speculation on
/ OASIS olher than coin, the recognized lle0Iun
OF exchange throughout the commercial world
! Inc particular mode selected to bring about
| restoration Of the specie standard Is not OF so
ulucn consequence as that some adequate plan
! be devised, time fixed when the currency
snail be exchangeable for coin at par, and
! plan adopted and rgidly 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 details OF any plan
! | might propose.
! "AAl3 AAONtN6r, " StSlGC Liz CAIClelA
| features Of action which seem to me advlsa-
! bic, the financial platform on which | would
| stand, and any departure from which would
be IN a spirit of concession and harmony IN
Difference to conflicting opinions:
| l. L would like to see the legal-tender
| clause, so-called, repealed the repeal to take
| effect at some future time, say July l, 1875.
| This would cause ali contracts made after that
date for wages, sales, etc., to be estimated IN
coin it would correct our notions of values :;
the specie dollar would be the only dollar
known as the measure OF equivalents. W hen
debts afterward contracted were paid in cur
| rency, instead of calling a paper dollar
dollar and quoting gold at so much premium,
we should think and speak of paper as at so
| much discount. This alone would aid greatly
| IN bringing the two currencIes nearer to-
gether at par
2. | would like to see a provision that at a
| fixed day, say July l, 1876, the currency issued
| by the United States should be redeemed in
coin on presentation to any asslstant-treasurer,
| and that all currency so redeemed should be
Cancelled and never reissued. 10 effect this it
| would be necessary to authorize the issue of
bonds payable in gold, bearing such 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 the purpose
| of redemption.
Such legislation would insure return to
sound financial principles in two years, and
| would, in my Judgment, work less hardship to
the debtor interest than is likely to come from
putting off the day Of final reckoning. 1t
must be borne in mind, too, thai the creditor
| interest had its day of disadvantage also when
our present financial system was brought in
by the supreme needs of the nation at the
time.
would further provide that, from and after
the date fixed for redemption, no bills,
whether of national banks or of the United
States, returned to the Treasury to be ex-
/ changed for new bills, should be replaced by
bills Of less denomination than ten dollars,
| and that in one year after resumption all bills
| of less than five dollars should be withdrawn
from circulation, and IN two years all bills of
| less than ten dollars should be withdrawn.
| The advantage of this would be the strength
| given to the country against time of depres-
! sion resulting from war, failure of the crops,
or any other cause, by keeping always in the
hands of the people large supply Of precious
tions conducted in coin, many mill
ions of it would be kept in con-
slant use, and, of course, prevented from
leaving the country. Undoubtedly poorer
| currency will always drive the better out of
| circulation. With paper legal tender and at
| a discount gold and silver become articles of
merchandise as much as wheat or cotton.
The surplus 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 circulation. During periods
of great speculation and apparent prosperity
there is little demand for coin, and then it
will flow out to a market where it
can be made to earn something, which it
| cannot do while lying idle. Gold, like any
! thing else, when not needed becomes q sur
plus, and like every other surplus it seeks
market where it can find one. By giving it
| active employment, however, its presence can,
it seems to me, be secured, and panics and de-
pressions which have occurred periodically in
times of nominal specie payments, if they
cannot be wholly prevented, can at least be
| greatly mitigated Indeed, question whether
| it would have been found necessary to depart
| from the standard of specie in the trying days
which gave birth to the first Legal-Tender act
| had the country taken the ground Of no small
| bills as early as 1850.
| Again, would provide an excess of reve-
nue. over current expenditures. l would do
this by rigid economy and by taxation where
! taxation can best be borne. Increased reve-
! nue would work a constant reduction of the
| debt and interest and would provide coin to
| meet the demands on the Treasury for re-
| demption of its notes, thereby diminishing the
| amount of bonds needed for that purpose.
All taxes after redemption begins should be
| paid in coin or United States notes. This
would force redemption on the national
| banks.
With measures like these, or measures
| which would work out such results, see no
danger in authorizing free banking without
| limit.