The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1874-06-18
RESUMPTION.
An authoritative Expression n On the SUI,
tset from President Grant.

| teet from President Grant.
The president has authorized the pub
| Hcation of the following memorandum.
expressing his views upon financial
| questions
I believe it a high and plain duty to
return to a specie basis at the earliest
practicable day, not only in compliance
| with legislative and party pledges, but
/ as a 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
| expedieuts to stimulate an unreal pros
| perity and speculation on a basis other
than coin as the recognized medium of
exchange throughOut the commercial
world. The particular mode selected
| to bring about the restoration of the
/ specie standard is not of so much con-
| sequence as that some adequate plan
be devised, a time fixed when the cur
| rency shalt be exchangeable for coin at
| par, and the plan adopted rigidly ad-
hered to. 1t 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 l might propose. will, however,
venture to state the general features of
action which seems to me advisable,
the financial platform on which would
stand, and any departure from which
would be In 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 so-called, repealed, the repeal to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 q paper
dollar a 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
currencies nearer together at par.
2. / would like to see a 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 ont by
the treasury onlyin such sums as should
from time to time be needed for the
purpose of redemption. Such legisla-
tion 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
our present financial system was ushered
in by the supreme needs of the nation
at the time.
1 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 a 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 advan-
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 large supply of
the precious metals. With all smaller
transactions conducted in DIN, many
millions of it would be KEEP in constant
use, and of course prevented from leav-
ing the country.
Undoubtedly a poorer currency viii
always drive the better out of circula-
tiOn. With paper a 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 |
times of nominal specie payments, if !
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 $3.50.
Again, 1 would provide an excess Of |
revenue over current expenditures. 1 |
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 AID 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, |
l see no danger in authorizing free |
banking Without limit