The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-06-08
tarant TeilS Congress Wflnt Sort Of a
Finance Law to Make.

Graut IefsN COnRTeS9 "unI DOEL VI %
Finance Law to Make.
MrMoRANDUa OF VIEWS ENTERTAINED ON THE
SUBJECT OF DESIRABLE LEGISLATION on
FINANCE.
| believe Il high and plain duty TO re-
turn to specie basis at the earliest practica-
BILE day, not only In compliance with legisa-
tive and party pledges, but rs step indis.
pensabie 10 national LISTING prosperity. J
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 Mt any future time, after resort has Deen
had to unstable and temporary expedlents 10
stimulate unreal prosperity and speculation
on bases other than coin, the recognized me
dunn of exchange throughout the COM,
mcrcal world. The particular mode selected
to bring about restoration OF the specie
standard is not of so much consequence rs
that some adequate plan he devised, tue time
fixed when currency shall be changed lof
coin at par, and the plan adopted ri9ldly ad-
hered to.
Il is not probable that any legislation slg'
| oested by me would prove acceptable to both
branches of Congress, and indeed full dis
l'cussion might shake my own faith in the de-
tails of any plan | might propose. l will,
however. venture to state the general fea-
lures of the action which seems to me advi-
81 bile on the financial platform on which l
would stand, any departure from which
would be in o spirit of concession and bar
mony in Difference to conflicting opinions.
FIRST. | would like to see the "le9al-ten-
der clause 50 called, repealed, the repeal to
take effect at a future time, say July l, 1879.
This would cause all contracts made after
that date for wages, sale, &C., to be estimated
in coin. 1t would correct our notions of
values. The specie dollar would be the only
dollar known as the measure of equivalents.
When debts afterward contracted were paid
in currency, instead of calling the paper dol
lar a dollar, and quoting gold at so much
premium, we should think and speak of pa
Der as at so much discount. This alone
would aid greatly in bringing the two cur.
rencies nearer together at par.
Second. would like to see a provision
that at fixed day, say July l, 1876, the cur
rcucy issued by the United States
SHOULD BE REDEEMED
in coin on presentation TO any ASSISTANT tTca-
surer, and that all currency so redeemed
should be cancelled and never be rel>sucd.
To effect this it would be necessary to AL.
thoriZe 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 De
needed for the purpose Of redemption. Such
legislation would insure return 10 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 off the day of final reckoning. 1t
must be borne in mind, too, that the credi-
tor interest bad its disadvantage also when
our present financial system was brought in
by the supreme needs Of the nation ut the
time.
| would further provide that, from and
after the date fixed for redemption, no bill,
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 ten dollars,
and that. in one year after redemption, all
bills Of less than five dollars
SHOULD BE WITHDRAWN
from circulation, and in two years all bills of
less than ten dollars should be Withdrawn.
The advantage of this would be strength
given to the country against time Of depres-
sion, resulting from war, failure of crops, or
any other cause, by keeping always in the
han ds of the people large supply OF the
precious metals. With all smaller tranSac-
lions conducted in coin many millions of it
would be kept in constant Use, and of course,
prevented from leaving the country. I'm
doubtedly poorer currency Will always
drive the better out Of circulation. With
paper Il legal tender, and at discount, gold
aud silver become articles of merchandise as
much Us wheat or cotton. The surplus will
iiud the best market it can.
With small bulls in circulation there is no
use for coin except TO keep it in the vaults
OF banks 10 redeem circulation. During Pc
RODS of great speculation and apparent pros
tra,ion there is little demand Tor coin, and
then it will flow out to i market where it
can be made to earn something, which it
cannot do while lying idle.
Gold. like anything else. when rot needed
becomes a surplus, and like every other sur
plus. it seeks market where it can find onE-
By giving active employment to coin, how
ever, its presence can, it seems to me, be Sc
cured, and the panics and depression which
have occurred periodically in times of nomi-
nal specie payments, if they cannot be
wholly prevented, can at least be greatly
miligated. Indeed, l question whether it
would have been found necessary to depart
from the standard Of specie III the trying
day which gave birth to the first legal-tender
act had the country taken the ground of"no
small bills" is early as 1850.
Again, would provide an excess of reve-
nue. over current expenditures; l would do
this by rigid economy, and by taxation
where taxation can best be borne. Increased
revenue would work constant reduction OF
debt and interest, and would provide coin to
meet demands on the Treasury for tue re-
sumption Of its notes, thereby diminishing
the amount of bonds needed for that pur-
pose. All taxes, after resumption begins,
should he paid in coin or United States
notes. This would force redemption Oh the
national banks.
With measures like these, or measures
which would work out such results, see no
danger in authorizing free banking without
limit, u. S. GRANT.
WAsHISGToN, June 5, 1874.
L