Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1874-06-12
The Financial Question.


VIEWS OF THE FhEsiDtsT,
President Grant has given his views on the
financial question in a written statement to
Senator Jones, ofNevada, Of which the follow
ing is copy
First would like to see the s'lcgal-tender
clause, so-called, repealed, the repeal to take
effect al a future time, say July /, 1875. This
would cause all contracts made after that date
for wages, sale, &C., to be estimated in coin.
ltWould correct our notion of values. The
specie dollar would be the only dollar known
as the measure Of equivalents. When debts
| aiterward contracted were paid in currency,
instead Of calling the paper dollar q dollar
and quoting gold at 20 much premium, we
should think and speak Of paper at so much
| discount This alone would aid greatly in
bringing the two currencies nearer together at
| par.
Second. would like to see provision that
at a fixed day, say July L. 1876, the currency
issued by the United States should be redeem
! ed in coin on presentation to any assistant
treasurer, and that all currency so redeemed
should be Cancelled and never be ressued. 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 only in such
sums as should from time to time be needed
/
| tion would insure return to sound financial
principles in two years, and would, in my
| Judgment, work less hardship 10 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 creditor interest has its
day of disadvantage also, when our present f.
nancial system was brought in by the supreme
needs of the nation at the time.
| would further provide that from and afte-
H., fO. h han
Of national banks or of The United States, re-
turned to the Treasury 10 be exchanged for
new bills, should be replaced by bills of less
denomination than ten dollars, and that, in
one year after resumption, all Bills of1e than
five dollars should be withdrawn from circu-
lation, and in two years all bills of less than
ten dollars should be withdrawn. The advan-
tage of this would be strength given to the
country against time Of depression, resulting
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 smaller transactions conducted in COIN
many millions Of it would be kept in constant
use, and, of course, prevented from leaving
the country Undoubtedly poorer currency
will always drive the better out OF circulation.
With paper legal tender, and at discount
gold and silver become articles 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 circulation. During periods
Of great speculation and apparent prosperity
there is little demand for coin, and then it
will flow out to a market where it can be made
to earn something, which it cannot do while
lying idle.
Gold, like anything else, when not needed,
becomes surplus, and like every other sur
plus, ii seeks market where it can find one.
By giving active employment to coin, how
ever, its presence car, it seems to Ine, be secu-
red, and the panics and depression which have
occurred periodically in times Of nominal spe-
Gle payments, if they can not be wholly pre-
vented, can at least be greatly mitigated. In
deed, question whether it would have been
found necessary to depart from the standard
OF specie in the trying day which gave birth
to the first legal-tender act, had the country
taken the ground Of s'no small Bills as early
as 1850.
Again, would provide an excess Of revenue
over current expenditures / would do this by
rigid economy, and by taxation where taxa
lion can best be borne Increased revenue
would work constant reduction Of debt and
interest, and would provide coin to meet the
demands on the Treasury for the resumption
Of its notes, thereby diminishing the amount
OF bonds needed for that purpose. All taxes,
after resumption begins, should be paid in
coin or U. States notes. This would force re-
demption on the national banks.
With measures like these, or measures which
would work out such results. see no danger
in authorizing free banking without limit.