Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1874-05-01

of June Goth 1864, created an obligation
that the total amount of United States
notes issued or to be issued should never
exceed four hundred millions of dollars.
The amount in actual circulation was
actually reduced to three hundred and
fifty.six millions of dollars, at which
point Congress passed the act of Febru-
airy 4th, 1868, suspending further re-
demption of the currency.
THE FoRTY,FoUR MILLION RESERVE,
Forty.four millions have since been
regarded as reserve, to be used only in
case of emergency, such as has occurred
on several occasions and must occur
when from any cause the revenues sud
denly fall below the expenditures; and
such a reserve is necessary because the
fractional currency amounting TO fifty
millions, is redeemable in legal tenders
on call. 1t may be said that such re-
turn of the fractional currency for re-
demption is impossible, but let steps be
taken for return to specie basis and
il will be found that silver will take the
place of fractional currency as rapidly
as it can be supplied.
FREE BANKING.
When the premium on gold reached a
sufficiently low point, with the amount
of United States notes to be issused per-
manently within the proper limits, and
the treasury so strengthened as to be
able to redeem them in coin on demand,
il will then be safe to inaugurate a sys-
tenn of free banking, with such provis-
ions as to make compulsory the redemp-
ton of the circulating notes or bonds in
coin or United States notes, themselves
redeemabls, and made equivalent to coin
as measures preparatoryto free banking,
or for placing the government in a con-
dition to redeem its notes IL coin.
THE PREMIUM ON GOLD.
At the earliest practicable moment the
revenue of the country should be IN
creased so as to pay the current expen
SEES, provide for the sinking fund requir
ed by law, and also surplus to be re
tanned in the treasury in gold. an
not a believer in any artificial method o
making paper money equal to coin, wher
coin is not owned or held ready to re
deem the promises to pay, for pape
meney is nothing more than promises +
pay, and is valuable exactly IN proper
ton to the amount of coin that it can b
converted into. While coin is not use,
as circulating medium, or the currenc
of the country is not convertible into
at par, it becomes an
ARTICLE OF COMMERCE
as much as any other product. TIE sui
plus will seek the foreign market as we
as any other surplus. The balance c
trade has nothing to do with the que:
ton. Duties on imports being require
in coin, creates limited demand fo
gold and about enough to satisfy the d.
mand remains in the country. To il
crease this supply, ! see no way ope
but by the government boarding throug
!. the means above given, and possibly b
e requiring the national banks to aid.
UNEQUAL DISTRIBUTION OF BANKIN
CAPITAL,
; 1t is claimed by the advocates of th
measure herewith returned that there
an unequal distribution of the bankin
capital of the country. | was dispose
to give great weight to this view of Il
question at first, but on reflection it wi
be remembered that there still remain
four millions of dollars of authorize
bank note circulation assigned to stat'
having less than the quota taken.
addition to this, states having less ths
their quota of bank circulation have IL
option Of twenty We millions more to
taken from those states having more tina
> their proportion. When this is all take
} up, or when specie payments are full
restored or are in rapid progress of re
E toration, will be time to consider Il
question of more currency.
n [Signed] U. S. GRANT.
r Executive Mansion, April %, 1874.
=