Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1874-06-13
FINANCIAL.
A Memorandum from the Pres
ident.
Early Resumption and the Per-
manent Substitution of Gold
and Silver for Small Bills.
The Conditions ON which He Fa-
vOrs Free Banking.

The Conditions ON which He Fa-
vOrs Free Banking.
WASHINGTON, June 5.-Senator Jones
has obtained the permission Of President
Grant 10 publish the following memoran--
dunn prepared by the latter, expressing his
views upon financial questions:
L believe it, says the President, a high
and plain duty to return to a specie basis at
the earliest practicable dav, not only in
compliance with legislative and party
pledges, but as a step indispensable to last
ing 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 tempo
rary expedients to stimulate an unreal
prosperity and speculation on a basis other
than coin as the recognized medium of
exchange throughout the commercial world.
The particular mode selected 10 bring
about the restoration OF the specie stand
ard is not of so much Consequence as
that some inadequate plan be de-
currency shall be e~xchangeable for
OOAl q ptA3 dlQ bnC pan d1ONLCQ Il-A4ly
adhered to. 1t is not probable that any leg
islation suggested by me would prove at
ceptable to both branches of Congress, and
indeed, a full discussion might shake my
own faith in the details of any plan l
might propose. / will, however, venture
to state the general features Of action
which seems 10 me advisable. The finan-
cial platform on which l would stand, and
any departure from which would be in a
spirit of concession and of harmony, and
in reference TO conflicting opinions.
First | would like TO see
The Legal Tender Clause SO Called
repealed, the repeal to axe effect at a flu
ture time, say July /, 1875. This would
cause all contracts made after that date for
wages, sales, etc, to be estimated in coin.
The specie dollar would be the only. dollar
known as a measure OF equivalents. When
debts afterwards contracted were paid in
currency instead of calling a:paper dollar a
dollar and quoting gold so much premium.
we should think and speak Of paFer as at so
much discount. This alone would aid
greatly in bringing the ~curreneies nearer
tOgetherIat par.
2. l would like to see a provision that, az
a fixed day, say July /, 1876, the currency
issued by tho United States should be
Redeemed I'm Coin
on presentation to any Assistant Treasurer
and that all currency so redeemed should
be cancelled and never be reissued. To
effect this, it would be necessary TO author
ize the issue of bonds payable in geld,
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 in
sure a 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 of the
day of 6nal reckoning. 1t must be borne
in mind, too, that the creditor interest had
its day Of disadvantage also, when our pres
ent financial system Was ushered in by the
supreme needs of the nation at the time.
| would further provide thai from and
after the date fixed for redemption, no
bills, whether of National Banks or of the
United States, returned to the Treasury 10
be exchanged for new bills, should be re-
placed by bills Of a denomination
Less than Ten Dollars,
and that in n 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 a time Of depression resulting from
war, failure of crops, or by keeping always
in the hands of the people a large supply
of the precious metals. With all smaller
transactions conducted in coin, many mil
lions of it would be kept in constant use,
and of course prevented frem leaving the
country.
Undoubtedly poorer currency will al
ways
Drive the Better Out
of circulation. With paper a legal tender
at a discount, gold and silver become a.
ticles of merchandise as much as wheat or
cotton. The surplus will find the best
market il can. With small bills in circu-
latiOn, there is no use for coin. except 10
keep il in the vaults of Ranks to redeem
the circulation. During periods Of great
speculation and apparent prosperity, there
is little demand for coin, and then il flows
out TO the market where it can be made to
earn something, which Il ann do while
lying idle. Gold, like anything else, VII
not needed becomes a surplus and
seeks . nar1et
where it can End one. M giving aciy.
employment 70 cor is pres4n'e y seem
- tiC, viii UE oCCu..f 81 49, unit LAAa
depressions which urrpd periedi-
cally in times Of nt-ain.i 1ecie payments,
ifthey cannot be w. Fevented, can At
least be greatly d tndeed, ]
question whether suld have been
found necessary tofdepart from She stan
dard Of society in the. tryiis days whie'
gave birth to the fist legal tender AFT, h8
the country taken the gronnd ..
no small bills as eafly as
Again, / w~oulS2naside an excess ssaa
enue over current ae arcs- /
do this by rigid ~eeonoiAs By taxation
where taxation can best Pc
Increased uE4cnuc
would work a constant reduction OF The
debt and interest, and-wcuI1 provide e0ila
to meet the demands on the Treasury for |
the redemption Of its notes, thereby d!lniD-
ishing the amount Of bond needed. For
that purpose all tax after redemption begins
should be paid in coin or United States
notes. This would force redemption on
the National banks.
With measures like these, oT measures
which would work out such results. 1 81
no danger in authorizing free hank
without limit.
Newspaper Postage
The House Post-OfIice COMMITTEES have
agreed TO report a bill providing tssat on al |
newspapers and periodical publications
mailed from the known Office Of pnblica-
ton or news agency and addressed TO reeil-
lar subscribers or news agents, the postagc
shall be CHARGED at the f~ollOwinq rates. 1