Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-06-11
GRANT ON THE CURRENCY.
How the President Proposes to Remedy the
Currency Evil.


WASHINGTON, June 6.-Senator
Jones has obtained permission from
President Grant to publish the toll
lowing memorandum, prepared by
the latter, expressing his views on
pthe financial question
l believe it is, says the President,
the high and plain duty to return to
specie basis at an early practicable
day not only in compliance with
legislative and party pledges, but as
a step indispensable to a lasting ma
tional prosp' rity. [ 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 made 10 un-
stable and temporary expedients TO
stimulate unreal prosperity and
speculation on q basis other than
coin, the recog nized medium of ex-
change throughout the commercial
world.
LIST. | would like to see the legal
tender clause, so-called, repealed, the
repeal to take effect at some future
time, say July LIST, rs. This would
cause all the contracts made after
that date for wages, sales, etc, to be
estimated as coin. 1t would correct
our nations value the specie dol
lar would only be dollar known as
measure equivalent to debts after
wards contracted that we're paid in
currency. Instead of calling q pa
per dollar dollar and quoting gold
at so much premium, we should
think and speak of paper as SO much
discount. That alone would aid
greatly in bringing the two curren>
cies nearer together at par.
I'd, | would like to see a provision
that at fixed day, say July 1st,
1876, the currency issued by the
United States should be redeemed in
coin on presentation to any assist
ant treasurer, and that all the cur
rency so redeemed should be CANCEL
| ed and never re-issued.
| The particular mode selected to
| bring about restoration to specie
standard is not of SO much conse
quence as that some adequate plan
and time be fixed when the currency
shall be exchangablo for co at par
and that the plan adopted be rigidly
adhered to. 1t is not probable that
any Legislation suggested by me
would prove acceptable to botf
branches of Congress, and indeed :
full discussion might shake my owr
faith in the details of any plan
might propose.
| | will however venture to state
the general features of action which
seem to me advisable in a financial
platform on which | would stand
and any departure from which would
be in spirit of concession and har-
mony in deferring to conflicting
opinions.
To effect this it would be neces
sary to authorize the issuing o.
bonds payable in gold and bearing
such interest as would make them
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 ofredemption
Such legislation would insure a re-
turn to sound financial principles
in two years, and would, in my
Judgment, work less hardship to tbs
debtor interest than is likely t.
come from putting off indefinitely
the day of Gnal reckoning.
1t must be borne in mind, too
that the credits interest had its day
the disadvantage of our present Fl
nancial system was brought on by
the supreme needs Of the nation al
the time.
By giving gold active employment
however, its presence can, it seems
to me, be secured, and panics anc
depressions which have occurred
periodically IN times of nomina
specie payment, if they can't bt
wholly prevented, can at least be
greatly mitigated.
Indeed question whetherit would
have been found necessary to depart
from the standard of specie in those
trying days, which gave birth to th>
first legal tender act.
Undoubtedly the poorer currency
will drive the better out of circnla.
ton. With paper logal-tender and
at discount, gold and silver become
articles of merchandise, such as
wheat and cotton, and the surplus
will find the best market it can
With bills and the increase of circu-
lation, there is no use for coin, except
to keep it in the vaults of the banks
to redeem circulation.
During the periods of great circu,
lation and apparent prosperity, there
is little demand for coin, and then ii
will flow out to market, where il
can be made to earn something,
which it cannot do while lying idle.
/ would further provide that from
and after the date fixed for redemp-
ton, no bills, whether of national
banks or of the United States, re-
| turned to the Treasury to be ex-
changed for new bills, should be re-
placed by bills of less denomination
than $40, and that in one year after
resumption all bills less than S. be
withdrawn from circulation, and in
two years all bills of less denomina-
ton than $40 should be withdrawn.
The advantage of this would be the
strength given to the country against
time of depression resulting from
war, failure in crops, or from any
other cause, by keeping always in
the hands of the people large sup
ply of precious metals ; with all
smaller transactions conducted in
coin, many millions of it would be
ept constantly in circulation and of
course be kept from leaving the
country.
Again, l would provide an excess
of revenue over the current expendi-