New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-06-09
The Presidents Views of Finance.

The Washington correspondent of the 81
Louis Glo6e, writing from the capital Sat
urday evening, says that two days befor
with the President, in which the financia
situation was discussed at length. TIL,
President, during the conversation, laid be
| fore the Senator a remarkable paper, il
which, in memorandum form, he had de
fined the methods by which he deemed
specie payments may be reached within the
remaining years of his present term. Mr.
| Jones was SO struck with the original char
acter of the propositions embodied by the
| President that after his return home he
wrote the President letter asking for a
| copy Of the memorandum and permission
| to publish the same. The President &C.
coded, and Mr.. Jones gave the document to
the Associated Press.
TIE following is the memorandum re.
ferred to:
believe it a high and plain duty to re-
turn TO a specie basis at the earliest practi-
cable day, not only in compliance with leg
islative and party pledges, but as a step in
dispensable to lasting national prosperity.
l 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 expedients to stimulate I'M
real prosperity and speculation on any
basis other than coin as the recognized
medium of exchange throughout the com.
mercial world, the particular mode selected
to bring about restoration of specie stand
ard is not OF so much consequence as that
some adequate plan be devised, time fixed
when currency shall be exchangeable for
coin at par, ard 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. full discussion might shake
my own faith in the details of any plan l
might propose. l will, however, venture
to state the general features Of action which
seem to Inc advisable. The financial plat
form on which l would stand, and any
departure from which would be in spirit
of concession and harmony in reference to
conflicting opinions:
l. | would like 10 see the legal-tender
clause, so-called, repealed The repeal to
take effect at a future time, say July /,
1879. This would sause all contracts made
after that date Tor 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 a measure of
equivalents. When debts, afterwa1d con-
tracted, were paid in currency instead of
calling paper dollar and dollar, and quot
ing goid at SO much premium, We should
think and speak of paper at so much dis
count. This alone would aid greatly in
bringing the cnrrencies nearer together
at par. ?. / would like to see provision
that at fixed day. say July ], 1876, the
currency issued by the United ST.: st should
be redeemed in coin on presentation to
any assistant treasurer, and that all cur
rency SO redeemed should be Cancelled and
never re-issued. To effect this IL 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 the purpose of
redemption. Such legislation would insure
a return to sound financial principles in two
years, and would, in my jud gment, work less
hardship to the debtor interest than is likely
to come from putting eff the day of final
reckoning. 1t must be borne in mind,
too, that the creditors interest had it's day
of isadvantage also, when our present fnan-
cial 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 exchanged |
for new bills, should be replaced by bills |
of less denomination than ten dollars, |
and that in one year after resumption, all |
Of less than five dollars shall be Withdrawn |
from circulation, and in two years ali bills |
of less than ten dollars should be with |
drawn. The advantage of this would be |
strength given to the country against times |
of depression resulting from war, failure of |
crops, or any other canse, by keeping al |
ways in the hands of the people large |
supply of precious metals. With all smaller |
conducted in coin, many mil
lions 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 circula-
ton. With paper legal tender, and at
discount, gold and silver became articles |
IF merchandise as much as wheat or cotton.
The surplus will find it the best market it
san. 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
'or coin, and then it will flow out to mar
get where it can be made to earn some
hing, which it can't 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
me. By giving active employment to coin.
lowever, its presence, it seems to me, will
De secured, and panics and depressions,
which have occurred periodically in times
If nominal specie payments, if they can not
De wholly prevented, can, at least, be
greatly mitigated. Indeed, l question
whether it would have been found
necessary to depart from the standard
# specie in the trying days which gave
firth to the first legal tender act had the
country taken the ground of no small bills
IS early as 1850. Again, would provide
n excess of revenue over current expendi-
ures. would do this by rigid economy
nd by taxation where taxation can best be
'orne. Increased revenue would make a
onstant reduction of debt and interest and
would provide coin to meet the demand on
be treasury, thereby diminishing the
ID cunt of bonds needed for that purpose.
III taxes after redemption begins, should
e paid in coin or United States notes.
his would force redemption on the ma
onal banks. With measures like these. or
Measures which would work out such re-
Its. l see no danger of,au:horizing free
anking without limit.