Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1874-06-12
JOHN L. JONES.


your obedient servant,
JOHN Z. JONES.
EXECUTIVE MANSION, WASHINGTON,
ID. c., June 4, ,1S74.-Dear Sir Your note
Of this date requesting a copy of a memo
randum which l had prepared expressive
of my views upon the financial question
and which you with others had heard read,
is received, but az too late an hour to COM
ply tonight. viii, however, take great
pleasure in furnishing you a copy in the
as soon as can have it copied.
1t is proper that | should state that these
views were reduced to writing because L
had been consulted on this question not
only by some members of the conference
but by many other members of
Congress. TO avoid any and all misun-
| deemed this course both
justiliable and proper. With this explana-
ton l enclose you herewith the memoran-
dun referred to. Very respectfully,
L. 5. GRANT.
To hon. }. p. Jones, United States
Senate
Memoranda of views entertained on the
subject of desirable legislation on finance
l believe it high and plain duty TO return
to a specie basis at the earliest practicable
day, not only in compliance with the legis-
lative and party pledges, but as Il 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 tenn
porary eXpedients to stimulate unreal pros
perity and speculation on basis other than
coin the recognized medium of exchange
throughout the commercial world, the par
ticular mode selected to bring about n res
toration of the specie standard is not of so
much consequence as that some adequate
plan be devised, the time fixed when cur
rency shall be eXchangeable for coin at par,
and the plan adopted rigidly adhered to.
1t is not probable that any legislation sug-
gested by me would prove acceptable TO
both branches of Congress, and, indeed,
full discussion might shake my own faith
in the detail of any plan l might propose.
| will, however, venture TO state the
general features of the action which seems
to me advisable, the financial platform on
which would stand, any departure from
which would be in spirit of concession
and harmony in Difference TO conflicting
opinions First, would like To see the
legal-tcnder clause, 50 called, repealed the
repeal TO take effect at a future time, say
July /, 1870 This would cause all con-
tracts made after that date for wages, sale,
&C., to be estimated in coir. 1t would
correct our notions of values. The specie
dollar would be the only dollar known as
the measure of equivalents. When debts
afterward contracted were paid in curren-
cy, instead of calling the paper dollar n
dollar, and quoting gold at so much prem
;um, we should think and speak of paper
as at so much discount. This alone would
add greatly in bringing the two currencies
nearer together at par. Second, | would
like to see a provision that at fixed day,
say July l, 1876, the currency issued by
the United States should be redeemed in
coin on presentation to any assistant treas
urer, and that all currency SO redeemed
should be Cancelled and never reissued.
To effect this il would be necessary to
authorize the issue Of bonds payable in
gold, bearing such interest as would COM
mand par in gold, t" 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
return to sound financial principles in
two years. and would. i'll my judgment,
work less hardship to the debtor interest
than is likely To come from putting off the
day of final reckoning. 1t must be borne
in mind, too, that the creditor interest had
its day of disadvantage, also, when our
present financial system was brought in by
the supreme needs Of the nation. | 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 bills
of less than five dollars should be with
drawn from circulation, and in two years
all bills of less than ten dollars should be
withdrawn.
The advantage of this would be strength
given TO the country against time Of de-
preston resulting from war, failure of
crops, or any other cause, by keeping al
ways in the hands of the people large
supply of the precious metals. With all
smaller transactions conducted in coin
many millions of i. would be kept in con-
stant use, and of course prevent it from
leaving the country. Undoubtedly poorer
currency will always drive the better out
of circulation. With paper a legal tender
and at discount, gold and silver become
articles of merchandise as much rs wheat
or cotton. The surplus will find the best
market it can. With small bills in circula-
ton, there is no use for coin except TO keep
it in the vaults Of banks TO redeem circula-
ton.
During periods of great speculation and
apparent prosperity there is little demand
for coin, and then it will flow out to a
market where it can be made TO earn some
thing, which it cannot while lying idle.
Gold, like anything else, when not needed
becomes surplus, and, like every other
surplus, it seeks market where it can find
one. BY giving active employment to coin,
however, its presence can, it seems to me,
be secured, and the panics and depressions
which have occurred periodically in times
Of nominal specie payments, if they cannot
be wholly prevented, can at least be great
ly mitgated.
Indeed, | question whether it would
have hpen found necessary TO dPOart from