The Republican journal., 1874-06-11
The President and the Finances.


/ President Grants consent to publish the
views recently expressed by the latter in
conversation with the Senator on the sub
/ iect OF finance. The following is MEM
orandum thereof made at the time by the
| President -
Il believe" said the President lit Il
! high and plain duty to return to Il specie
basis at the earliest practicable day, not
only in compliance with legislative and
! party pledges, but rs a step indispensable
10 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 indus
try than at any future time, after resort
| has been made to unstable and temporary
cNpcdients to stimulate unreal prosperity
! and speculation on basis other than coin
as the recognized medium of exchange
| throughout the commercial world. The
particular mode selected to bring about
restoration Of the specie standard is not Of
so much consequence as that some ade-
quate plan be devised, the time fixed when
currency 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.
a tull discussion might shake my own faith
in the details of any plan might propose.
| Will however, venture to state the gen
eral features of action which seems to me
advisable. The financial platform on which
| would stand, and any departure from
which would he in spirit of concession
and harmony in Difference to conflicting
opinions. is
First | would like to see the legal ten
der clause. so-callcd, repealed so rs to take
effect at a future time. say July LIST, 1875.
This would cause all contracts made after
that date for wages sales. etc. to be esti-
mated in coin
1t would correct our notions of values
The coin dollar would be the only dollar
known a. the measure OF equivalents.
when debts afterwards contracted will be
paid in currency instead of calling the
paper dollar dollar and quoting gold at
SO much premium, we should think and
speak OF paper as at SO much discount
This alone would aid greatly in bringing
the two commercial values together at par.
ID would like to see provision that
nj 4 fixed day say July LIST, 1876, currency
issued by the nitcd States should be re-
deemed in coin on presentation to any as
Sistant treasurer, and that all the currency
50 redeemed should be cancelled and never
reissued To effect this it would be neces-
sary to authorize the issue of bonds, pay
able in god, bearing such interest as
would command par, the gold to be put
ont by the Treasury only in such sums as
should from time to time be needed for
the purpose of redemption.
Such Legislation would ensure return
to sound financial principles in two years.
and would, in my judgment, work less
hardship to the debtor interest than is ike,
~ to come from putting off the day oe
reckoning. 1t must be borne in mind
that the creditor interest had its dav of
disadvantage also when our present tinan-
cial system WAS brought into being by the
supreme needs of the nation at the time
| would further provide that after the date
fixed for redemption, no bills. whether of
banks nr the United States, returned to
the Treasury to be exchanged for new
bills, should be replaced by bills of less
denominations than SO, and that in one
year after resumption all bills of less than
3 should be withdrawn from circulation,
and in two Years all bills of less than $40
should be withdrawn. The advantage of
this would be the strength given to the
country against 4 time of depression re-
sulting from war, failure Of crops, or any
other cause, by keeping always in the
hands OF the people large supply Of the
precious metals
With all small transactions conducted
i'll coin, many millions of it would be kept
i'll constant use and of course prevented
from leaving the country. Undoubtedly
4 poorer currency will always drive the
better out Of circulation. With paper and
legal tender at a discount, gold and sill.
yer become articles of merchandise as
much as wheat and cotton, and 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 circulation During
periods OF great specnlafiR4. hand fHfrerffn.
and then ii viii flow out to market where
it can be made to earn somcthing-which
it cannot do while lying idle
Gold like anything else when not need.
ed becomes a surplus, and like every other
surplus it seeks 4 market when it can find
one by giving active employment to coin
However, It's presence can. it seems, be
secured and The panics and depressons
which have occurred periodically in times
Of specie payments if they cannot be
wholly prevented, can at least be greatly
mltigated. Indeed, question whether it
wonld have been found necessary to depart
from the standard Of specie in the irving
day which gave birth to the present legal
tender act had the country taken the
ground Of no small bills Again, would
provide an excess OF revenue over current
Expenditures. | would do this by rigid
economy and by taxation where taxation
can be best borne. Increased revenue
would work a constant reduction of inter-
est and would provide coin to meet the
demands IN the treasury for the redemp-
ton of its notes, thereby diminishing the |
amount Of bonds needed for that purpose.
All taxes after redemption begins should
be paid in coin on L. S. notes. This would
force redemption on the national banks. |
With measures like these, or measures
which would work out such results, | see
no danger in authorizing free banking