The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-06-18

G3&2G on
Senator Jones has obtained permission
from President Grant to publish the fol-
lowing memorandum, prepared by the lat
ter, expressing his views upon financial
! questions:
"f believe it a high and plain duty to
return to specie basis at the earliest prae-
ticable day, not only in compliance with
legislative and party pledges, but as q
step indispensable to lasting national
| prosperity. 1 believe further, that the
time has come when this can be done, or
! at least begun, with less embarrassment
TO every branch of industry than at any
| future time, after resort has been had to
unstable and temporary experiments TO
| stimulate unreal prosperity and specula-
ton, on o basis other than coin, the rec
| ogniZed medium Of exchange throughout
the commercial world. The particular
mode selected to bring about restoration
of the specie standard is of so much con-
sequence as that some adequate plan be
devised, a time fixed when currency shall
be e~xchangeable for coin at par, and the
plan adopted rigidly adhered to. 1t is not
probable that any legislation suggested
by me would prove acceptable to both
branches of congress, and, indeed, a full
discussion might shake my own faith in
the details Of any plan / might propose.
/ wall, however, venture to state the gen.
eral features of action which seems to me
advisable.
'The financial platform on which l
would stand, and any departure from
which would be in q spirit Of concession
and harmony in Difference to conflicting
4 l,-s-. T---1 \ ILL., A. 80 4ka 1a1o1-
tender clause, so-called, repealed; the re-
peal to take effect at some future time
say July l, 1865. This would cause all
contracts made after that date for wages,
sales, ETC., to be estimated in coin. Ii
would correct our notions of values; the
specie dollar would be the only dollar
known as q measure ofequivalents. When
debts afterward contracted were paid in
currency, instead Of calling the paper dol
lar q dollar, and quoting gold at so much
premium, we should think and speak Of
paper "a at so much discount. This alone
would aid greatly in bringing the two cur
rencies nearer to either at par.
al would like to see a provision that al
a fixed day-say July l, lST6-the cur
rency issued by the United States should
be rendeemed in coin on presentation to
any assistant treasurer, and that all nj
rency so redeemed should be cancelled and
never reiseued. To effect this, it would
be necessary 10 authorize the issue Ct
bonds payable in gold, bearing such inter.
est as would command par in gold, to be
put out by the treasury only in such sums
as should from time to time he needed fol
the purpose of redemption.
"Such legislation would insure q return
to sound financial principles in two years
and would in my judgement. work less
hardship to the debtor interest than is
likely TO come from putting off the day o.
final reckoning. 1t must be borne in mind.
too, that the creditor" interest had its dag
of disadvantage also, when our present
financial system was brought in by the
supreme needs Of the nation at the time
1 would further provide that from and
after the date fixed for redemption, nc
bills, whether of national banks or of the
United States, returned to the treasury tC
be exchanged for new bills, should be re-
placed with bills of less denomination than
S. should be withdrawn from circulation
and in two years all bills of less than SIC
should be withdrawn. The advantages o
this would be the strength given to the
country against a time of depression result
ting from war, failure of crops, or any 9th
er cause, by keeping always in the hands
of the people a large supply of the prec-
ious metals With all the smaller trans
actions 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 circu'
lation. With paper a legal tender, and a
a discount, gold and silver become articles
of merchandise, as much as wheat or cot
ten. The surplus will find the best mar
ket 1t can.
With small bills in circulation Their,
is 40 use for coin, except to keep it IL
circulation, During periods of grea
speculation and apparent prosperity there
is little demand for coin, and then it vii
flow out to a market where it can b.
made to earn something, which it canno,
do while lying idle. Gold, like anything
else, when not needed, becomes a surplus
and like every other surplus it seeks
market where it can find one. By giving
it active employment, however, its pres
ence can, it seems TO me, be secured, ant
the panics and depressions which havl
occurred periodically in times of nomina
specie payments, if they cannot be wholly
prevented, can at least be greatly mitiga
ted. Indeed, l question whether it would
have been found necessary to depart iron
the standard Of specie in the trying day
which gave birth to the first legal-tendel
act, had the country taken the ground o
no small bills as early as 1850.
Again, l would provide an excess o
revenue over current expenditures.
would do this by rigid economy, and by
taxation where tsxRtlon can best be borne
Increased revenue would would work
constant reduction of the debt and interes
and would provide coin to meet demand
on the treasury for redemption Of its note
thereby diminishing the amount of bond
needed for that purpose. All taxes, afte
redemption begins, should be paid IN coil
or United States notes. This would fore
redemption on the national banks. Will
measures like these or measures whicl
would out such results, l see no DANCE
in authorizing free banking without lin
IT."