The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-20


In the address delivered by General Grant
upon his first Inauguration 10 the Presidency
he made use OF these words, ITO protect
the national honor every dollar 81 the gov
eminent Indebtedness should he paid In gold
unless otherwise expressly stipulated in the
contract Let IL be understood that no re-
pudiator OF one farthing Of our public debt
viii be trusted in public places. and Il ~ili 90
far towards strengthening . credit which
ought 20 he the best in the world" Thsre
was . ring in these words which made the
country feel that IL had the right man in the
the public mind because the Pre>iieni ~ho
had just then gone out had encouraged views
that all felt 10 be dishonest and dsmorlizing.
and because. also. specsous arguments bad
been heard in Congress which lei directly
toward reputation. II wa felt that an
honest man in the Presidency was our great
guanntee. as shortly before a capable soldier
in the field had been our salvation
Congress was in sympathy with the Presi-
dents thought, and passed. under TINT inspirs-
tion, the act 10 strengthen the public
credit" which concluded with these words: =
sAnd the United States also solemnly pledges
Its faith to make provision at the earliest
practicable period for the redemption Of the
United States notes in coin" This was sigacd
by the President on the 18th of March, and WAS
the first act OF public nature that received
his approval Repeatedly since, also. in his
annual messages has the President urged
other steps in the same direction, aud IN his
second inaugural he said: My efforts in the
future will be directed TO the restoration u
our currency to fixed value as compared
with the worlds standard of values, gold;
and, if possible, TO q par with IL"
Neither Congress nor the country, there
fore, can have been in any doubt n
to the Presidents views. And what has
been the response Of Congress in the laws
passed? There has not been much legislation
on the currency. All the bills tending to put
our bonds on better footing the President
has readily signed, and he has also approved
q law increasing the issue of national bank
notes; but the first consideration that Con-
gress has given to the national currency
proper has been to pass law that is IN direct
opposition to and in conflict with the views so
wisely urged by the President. For the bill
now before the President, and awaiting only
his signature to become law, is in such fla
grant contradiction to all the recommends
tions he has made to Congress that 1t will
amount to an absolute repeal of that famous
act Ito strengthen the public credit which
he signed within fourteen days Of his first in
auguration.
But this bill which the President is now
asked to sign opposes and ignores his fnan-
cial policy in another very important point
1t not only makes no provision whatever for
keeping 'the solemn pledge" but it abolishes
the currency reserve. BY this act it is pro-
vided that the maximum limit of United
States notes for circulation is hereby fixed at
$40O, 600, 900, at which sum it shall remain"
This adds to the circulation, therefore, the
portion Of the reserve now in hand and
makes no provision for any sum to meet such
q contingency as compelled the issue of the
$26, 00O,000 of the reserve that is now out.
Should the President sign the bill the Secre-
tary Of the Treasury will not have the power
to withdraw as he may be able
the legal tender issued under pressure.
Instead of being able to reduce the
outstanding legal tender as he now can to
1856, 900, 900 he must add to the outstanding
amount the $1s, 900, 600 still in hand and add
the sum to his currency balance. He will,
therefore, be absolutely deprived Of the re-
source the reserve has proved on difficult
occasions. Last year, just before the panic,
the Secretary had accumulated $14, 600, 600 of
currency, but his accounts showed 1856, 900, 900
as outstanding and the $l4 100000 as a cur
rency balance. So under the present law the
outstanding legal tender will appear as
$500, 100000, though the currency balance
may be $50. 100000 or s4O,0O0,OOO. Contrac-
ton or imitation will still be in the Secretary
hands, but the money will be out OF his reach
for purposes for which he might properly
employ reserve.
II has been said in Congress that the Presi-
dent, if he should veto the bill, would stultify
the acts of the administration, as the bill
"covers his course in the issue Of the
$4,000, 600 of the reserve" and that the veto
would thus be condemnation of his own
acts. But from what appears to be the Presi-
dents policy he must take different view.
All the acts on which the legal tender issues
stand are acts passed before his incumbency,
and while they contemplate on ordinary circu-
lation of 1856, 900, 900 they give the power to
increase it from the reserve they furnish
Different views are taken as to whether this
administration holds with those who believe
it still remains. The Treasury and Law
departments are in accord on this point
General Grant, therefore, in the issue
of the $26, 600, 900, does not believe he needs
the defence Of Law authorizing that issue;