Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-04-16

Correspondence of the Baltimore Sun.

Correspondence of the Baltimore Sun.
WASHINGTON, April l5.-Tbe Senate cur
rency bill will not reach the President before
tomorrow, if so early The President is, how
ever, fully cogDzant OF all the provis: ons of the
bill aud Of its effect if made a law. lie has al
30 made himself acquainted with the various
features OF the House currency bill yet to be
acted on by the Senate. The views of the
President 10 the matter Of the iuaatiou OF the
currency have been heretofore presented in
these dispatches and the public are therefore
we'll intormad Of his position in opposition to
Initiation and in favor of free banking.
la conversation to-day upon the merits Of
the Senate and the House currency bills the
President made the remark that the former
was not such measure as he had desired, but
it could scarcely be considered as imitation,
while the latter was good enough as far as it
went, but entirely Ignored the most important
feature which should be Incorporated 10 any
new finance measure, provision for response
bic redemption. The President observed IN
regard to the clause of the Senate bill kDowu
as the Scott amendment, that 1t Was equivalent
to contraction 1t might not be 81 acceptable
to the banks as the present provision OF law 10
regard to their reserves, but it was certainly
better for the general interests Of the people,
as it would strengthen the home banks aud
make them more ready to meet sudden de-
mands upon them especially in times OF panics.
He thought that very large share of the dig.
tress to which interior banks were at times
subjected was on account Of the unexpected
pressure for cash to meet their obligations at
home, and this in turn effected u correspond
ing embarrassment 10 New York, as the banks
there were unable to realize with sufficient
promptness to respond To these urgent appeals,
and so the difficulties spread. He considered
that any provision which strengthened bauk
in time of trial is desirable, as it teuds to up
hold confidence aud improve credit. He con
sidered that the banks were for the business
Interests of the country, and being so cosey
identified with those interests, he favored
everything which sustained them as warmly as
he deprecated Imitation, which must eutall ruin
upon every section OF the country. ln its prac
ticaI working he considers the Scott amend
ment as a fair offset Tor the furty-sx millions
additional bank circulation authorized by the
bill.
In resp ,ct to the increase Of the legal tender
circulation to 81 1000, 900, the other leading
provision of the bill, the President looks upon
the S44 0OO 900 as part Of the already existing
lcgal-tender circulation, but that the amount
should be held in reserve to meet just such an
emergency as it has already assisted to combat.
The use of money previously sanctioned by law
can hardly be considered as imitation, provided
the Secretary Of the Treasury has the power to
withdraw and again mold the amount 10 reserve
for crisis; but to make it part of the legal ten
der circulation he considers lDtatiOn.
The President appreciates the fact that the
whole country awaits some definite action 10
the financial policy necessary to be adopted 10
view of the change OF previously existing views
on the same SUBJECT. But be likewise recog-
nizes the fact that what actlDn Is now taken
has double importance, as the former policy,
which was the reduction OF The liabilities OF The
government and thereby decreasing the value OF
its paper as compared with specie is now at
tempted to be confronted with u proposition to
enlarge the responsibilities Of the government
By increasing the circulation OF It's paper, thus
raising the price OF gold, and with 1t values
generally, aud dcprecatlng the government Sc
curitcs and the purchasing power OF paper.
He thinks that slugle step backwards at this
iuucture will undo all that has been accomplish
ed 10 the five years OF his administration IN RI
gidly applying every available dollar to the re-
duction of the national debt, and that gold, TO-
stead OF being at a premium of twelve per cent.
as compared to legal tenders, would soon hud
its way back to the figure at which It stood
when be entered Office. ..
The President does not desire to act hastllp
in this matter, but will carefully consider each
feature of the bill and its bearing before making
bis 6ual decision. The President favors the re-
dcmption of the natiopal bank notes at the
treasury 10 legal tenders, but says that add.
tional arrangements should be made Tor final
redemption in specie. '-
As a means of reaching specie payments the
President believes 10 requiring the banks to
surrender fifty per ct. Ut the interest on their
bonds, that amount to be kept in the treasury
and certificates of deposit issued therefor. The
interest paid by the government on the bonds
deposited by the banks amounts to about So
OOU, 900 annually Fifty per cent. Of this would
be SlO,OO0,O00 This amount, therefore, he
regards, should be retained in the treasury and
kept there until ii approxlmates the total OF
the resources. T"'
lie thinks also that the government should
contribute it's proportion to the same specie re-
sumption fund, WHICH wond be about fifteen
millions annually. The two would aggregate
twenty-five millions annually, 10, three years
this would be seventy-hve millions. With this
and the specie on hand 10 the treasury, which
ranges from seventy7fve to one hundred mil
Gous, both the government and the banks
would be 10 condition to resume specie pay
mcuts. The President is not inscnsible to the
fact that as things now are it is not for the 10
terest of the banks to resume, and for this rea-
son he favors specific legislation defining spc-
Gle resumption as the fixed aim Of the financial
policy of the government. Without this be
thinks it possible that the banks never would
resume, nor allow the government to do so if
they can help it, He believes that to compel
them to leave the coin interest in the treasury
as part of the reserve which they are now re-
ouircd to leave there in legal tenders, would
materially aid matters, and would be no spe-