Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1874-06-18
PRESIDENT GRANT.

UhANls
His Views on the Finance Questionable
Expresses Himself UnqualifedIy i'm
Favor of Specie Payments, and Advises
an Early Repeal of the Legal-Tender
Act.
Senator Jones, of Nevada. has procured
from President Grant a memorandum giving
his views the finances, which is printed be-
low, as telegraphed from Washington with
the Presidents consent:
believe It (says the President) high and
plan duty to return to a specie basis at the
earliest practicable day. not only in colnpli-
ance with legislative and party pledges, but
as a step indispensable to lasting national
prosperity. 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 he's been had to unstable and
temporary expedients to stimulate unreal
prosperity and speculation on basis other
than coin, the recognized medium Of OK
change throughout the commercial nd, the
particular mode selected to bring AMT the
restoration of 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 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 might
propose. / will, however, venture to state
the general features of action, which seem to
me advisable--the financial platform ON which
/ would Standard any departure from which
would be in spirit of concession and harmony
in Difference to conflicting opinions.
First-I would Like to see the legal-tender
clause. so called, repealed, the repeal to take
effect at some future time. say July 1, 1875.
This would cause all contracts made after that
date for wages, sales, etc., to be estimated in
coin. 1t would correct our notions of value
the spectacular would be the only dollar
known as the measure of equivalents when
debts afterward contracted were paid in cur
rency. Instead of calling paper-dollar
dollar, and quoting gold at so much premium,
we should think and speak of the paper as at
so much discount. This alone would aid
greatly in bringing the two currencies nearer
together at par.
Second-I would like 70 see provision that
at fixed day. say July /, 1876. the currency
issued by the United States should be re-
deemed III coin on presentation to any Assist
ant Treasurer, and that all currency re-
deemed should be cancelled and nevec reis-
sued. To effect this, it would be necessary to
authorize the issue of bonds payable in gold.
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. insure 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 final reckoning 1t
must be borne in mind. too, that the credit
interest had its day of disadvantage also.
when our present financial system was brought
in by the supreme needs of the nation 2. 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 ex-
changed for new bills, should be replaced by
bills of less denomination than SO, and
that in one year after RESUMPTION all bills of
less than 50 should be Withdrawn from cir
cnlation, and in two years all bills Of lees than
$40 should be withdrawn. The advantage Of
this would be the strength given to the coun-
try against a time of depression resulting
from war, failure of crops, or any other
cause. by keeping always III the hands of the
people a,arge supply of preci us metals. With
all the smaller transactions conducted in
coin. many millions of it would be kept in con-
slant use, and Of course prevented from leay-
ing the country. Undoubtedly, poorer cur
rency will al WAYS drive the better out of cir
culatlon. With paper a legal tender, and at
discount. gold aud silver become articles of
merchandise as much wheat or cotton.
The surplus will find the best market it can.
With small bills in circulation, there is no use
| for coin except to keep in the wants of banks
| to redeem circulation. During periods of
great speculation and apparent prosperitv
| there is little demand for coin, and then il
viii flow out TO a market where 1t can be made
to earl something, which it cannot do while
lying idle. Gold. like anything else. when
not needed becomes surplus, aud, like
every other surplus. it seeks market
where it can find one. By giving
| it active employment, however, it's
presence can, it seems to me, be secured, and
panics and depressions, which have occurred
periodically in times of nominal specie pay
ments, if they cannot be wholly prevented,
can at least be greatly mitigated. Indeed.
question whether it would have been found
necessary 10 depart from the standard of
specie in the trying days which gave birth to
the first legal-tender act, had the country
taken the ground Of no small bills as early as
1850. Again. l would provide an excess of
revenue over current expenditures. l would
do this by rigid economy, and by tax
| alton where taxation can best be borne. In
creased revenue would work a constant reduc-
ton of the debt and interest, and would pro-
vide coin to meet the demands on the Treas
ury for the redemption of its notes, thereby
diminishing the amount of bonds needed for
that purpose. All taxes, after redemption be-
| gins should be paid in coin or United States
tional Banks. With measures like these, or
measures which would work out such results
see no danger in authorizing free banking
1 49, l.~x.stu