The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1874-06-12
RESUMPTION.
An Authoritative Expression on the SUBJ
jeet from President Grant.


An Authoritative Expression on the SUBJ
jeet from President Grant.
The president has authorized the pub
location of the following memorandum,
expressing his views upon financial
questions
I believe it high and plain duty to
return to q specie basis at the earliest
practicable day, not only in compliance
with Legislative and party pledges, but
as step indispensable to lasting nation
al prosperity. I believe further that
the time has come when this can be
done, or at least begun, with less en-
barrassment to every branch of indus
try than at any future time, after resort
has been had to unstable and temporary
expedients to stimulate an unreal pros
perity and speculation on basis other
than coin as the recognized medium of
exchange throughout the commercial
world. The particular mode selected
to bling about the restoration of the
specie standard is not of so much con-
sequence as that some adequate plan
be devised, time fixed when the cur
rency shall be exchangeable for coin at
par, and the plan adopted rigidly adj
hered to. It is not probable that any
legislation suggested by me would prove
acceptable to both branches of congress,
and indeed, a 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 seems to me advisable,
the financial platform on which I would
stand, and any departure from which
would be in q spirit of concession and
of harmony, and In reference to conflict
ing opinions.
1. I would like to see the legal tender
clause, so-called, repealed, the repeal to
| take effect at future time, say July 1,
1876. This would cause all contracts
made after that date for wages, sales,
etc, to be estimated in coin. The specie
dollar would be the only dollar known
as a measure of equivalents. When
debts afterwards contracted were paid
| IN currency, instead of calling a paper
| dollar dollar and quoting gold so much
premium, we should think and speak of
| paper as at SO much discount. This
| alone would aid greatly In bringing the
| currencles nearer together at par.
| 2. would like to see provision that,
at fixed day, say July 1, 1876, the
| currency issued by the United States
| should be redeemed in coin on presen-
! tation to any assistant treasurer, and
| that all currency so redeemed should
! be cancelled and never be reissued. 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 -onlyin such sums as should
! from time to time be needed for the
| purpose of redemption. Such legisla-
| ton would insure a return to sound
| financial principles in two years, and
would, in my Judgment, work less
| hardship to the debtor interest than is
like to come from putting off the day
| of final reckoning. It must be borne
| in mind, too, that the creditor interest
! had its day of disadvantage also, when
Ourpresent financial system was ushered
in by the supreme needs of the nation
at the time.
I 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
| of denomination less than ten dollars,
and that in one year after resumption
all bills of less than five dollars should
! be withdrawn from circulation, and in
| two years all bills of less than ten dol
! lars should be withdrawn. The ad7an-
| tage of this would be the strength given
to the country against a time of de-
| preston resulting from war, failure of
| crops, or by keeping always In the
hands of the people a large supply of
tho precious metals. With all smaller
transactions conducted in coin, many
millions of it would be kept in constant
use, and of course prevented from Ieav-
| ing the country.
Undoubtedly a poorer currency will
| always drive the better out of circula-
| tion. With paper legal tender at a
| discount, gold and silver become arti-
| cles of merchandise as much as 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 it in the vaults of banks
| to redeem the circulation. During pc
RODS of great speculation and apparent
! prosperity, there is little demand for
| coin, and then it flows out to the mar
! ket where it can be made TO earn some
thing, which it cannot do while lying
| idle. Gold, like anything else, when
not needed becomes a surplus and seeks
a market where it can find one. By
giving active employment to coin, its
| presence, it seems to me, Will be Sc
cured, and the panics and depressions
which have occurred periodically in
11LACS "a uOLu4udI , OSCAc pdyuu0AJSJ II
they cannot be wholly prevented, can
at least be greatly mitigated. Indeed,
! I question whether it would have been
found necessary to 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, I would provide an excess of
revenue over current expenditures. I
would do this by rigid economy and by
taxation where taxation can best be
borne. Increased revenue would work
a constant reduction of the debt and in
terest, and would provide coin to meet
the demands on the treasury for the re-
demption of its notes, thereby dimin-
ishing the amount of bonds needed.
For that purpose all taxes after redemp-
ton begins should be paid in coin or
United States notes. This would force
redemption on the national banks.
With measures like these, or meas
ures which would work out such results,
see no danger in authorizing free
banking without limit.
Wheat in the Cotton Belt.