New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-04-23
The Presidents Views on Finance.

The following is from the New York
Tribune of the sixteenth instant:
The Senate currency bill, which passed
| the House yesterday and only awaits the
| signature OF the President to become law,
had not reached the Executive Mansion at
halt-past one this afternoon, and had not,
therefore, been formally considered by the
President General Grant has, however,
watched the progress of the bill through
both houses OF Congress. and in ccnversa-
ton to-day was able to speak as intelli-
gently about it as though he had the en-
crossed bill before him. The President
said the bill was not such measure as he
wished Congress to pass, but it was gath
cred from the general tone of his converse
ton that after consultation with the Cabi-
ret he would, without doubt, sign it.
The demonstration by the Controller of
the Currency that the Scott amendment
would work temporary contraction of the
currency in circulation, If strictly enforced,
seemed to be accepted by the President,
and though he presumed that its provisions
might not be very acceptable to the banks,
he thought its effect would be salutary, be-
cause it would strengthen the country
banks and those in the redemption cities,
and render them better able to meet any
sudden demands that might be made upon
them, particularly in times of financial ex-
element or panic. He will favor any wise
measure thai will make the banks more sta
bic and tend to increase public confidence
in them.
In respect to that portion of the bill that
fixes the amount Of legal tender Giro ulation
at $500, 900 the President has not very
great concern. He has heretofore consid-
cred the $44, 100000 as part of the exist
ing legal circulation. and that it was held
in reserve to meet emergencies. About
$26, 100000 of it have been used in this way,
50 that but SIS 100000 now remain to be
put out. The provision that money pre-
I-ously sanctioned by law and already con-
structively in circulation may be issued can
hardly, he thinks. be called imitation, pro-
vided the Secretary of the Treasury retains
the power again to withdraw the SO, OOO, 900
already out and hold it in reserve tor use
in another crisis.
If it is proposed to put out the remaining
$lS,O0o,000 and keep it permanently out,
that the President would consider as intia-
ton. The President repeated to-day what
he has before said, that he is opposed to any
step backward from the policy of gradually
approaching specie resumption, and still
believes in the policy of rigidly applying
every available dollar to the reduction Of
the national debt.
President Grant thinks that the House
bill lacks one very essential feature-a pro
vision for specie resumption. His plan
would be to require the national bank |
notes to be redeemed at the treasury in le
gal tenders, with further provision tor
ultimate redemption in specie. To effect |
this, he would require the banks to con-
tribute to redemption fund, one half of |
the coin received as interest on their bonds. |
deposited as security for their circulation.
This would amount to about $4,000, 900 a
year. |
He would have the government also con-
tribute its share to this fund, or about !
$4,000, 900 year. In three years this fund |
W Guild amount to $75,000,000, and this, he |
thought, with the specie in the Treasury |
which has, during his administration. aver |
aged about 800, 600, 900, would be sufficient |
coin basis on which both the government |
and the banks might venture to resume.
The President thinks that at present the |
department of the government is
too much under the control of the banks, |
which, it left to their own motion, would |
never resume. He thinks that his plan |
would work no hardship to the banks.