Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-04-07
NATIONAL FINANCE.
Grant Expresses His Opinion.

ing Favored.
From the New York Tribune.
WASHINGTON, April 2.-No one il
public life, or out of it, has watches
with more interest the long fnancia
debates, than the President, and he ha
not hesitated to express freely his op
position to all schemes of imitation
He has carefully examined each of tn
various plans that have been presenteC
in either House and looks upon tn
question as one which imposes upol
him very great responsibilities. H
believes that when he is called upon Il
act on this question it viii be his duty
carefully to consider, not only the In
terest of our own citizens, but also tha'
of those subjects of the nations of thu
Old World who, in faith in the perma
nency of our Government and the rapid
development of our country In wealth
and population, have largely invested
their means in our Government an6
private securities.
In conversation respecting the pend
ing financial discussion and the pros
pect of an imitation of the currency, a.
indicated by the recent votes In Con
gress, the President remarked to-day
that any finance bill which may b.
passed and sent to him for approva
will be most closely serutinized, witt
particular reference to its effect ON the
amount of currency, as he is more
firmly convinced than ever that ex.
panslon, except as dictated by the
actual and pressing wants of the peo-
pie, would not only be prejudicial, but
suicidal to their best interests. He OBJ.
serests Of the different sections of q
country so extensively ranging through
every degree of the s~emi-tropical and
north temperate zones, must In many
respects differ. They vary as the pro-
auctions of the soil, and as che pursuits
N which the inhabitants are engaged,
whether they be agricultural, manufac'
turing, mining, commerce, or fisheries,
each constituting a specific source of
wealth. There may again be differ
ence, he said, with any one of these
general sections, as cotton forms the
staple of the South; grain of the West;
mining and manufacturing employs
the people of Pennsylvania and Mary
land; commerce and agriculture, New
York, and generalmanufacturing, New
England. But, he remarked, there is
one thing that is necessary to all, and
that is a well balanced and wise fnan-
cial policy. In the absence of this ev-
cry industry is paralyzed, and the peo-
pie, unable to apply their skill and en-
tefpfise, are soon impoverished.
SPECIE PAYMENTS FAVORED.
He said that anything but a move to-
ward specie payments, be its accomp-
lishment near or remote, would be un-
wise, and no matter what might be the
embarrassment of the moment, it would
not be long before the country would
be relieved of the present pressure and
would then be infinitely better of, if
no unwise step is now taken. Imitation,
he thought, would be a step backward
and there were no attendant circum-
stances such as wal or famine, which
would seem to justify such a measure
now. Imitation, he said, would. be to
increase the responsibility of the Gov
eminent, and he would not lend his aid
to that, when there appeared to him no
reason for such a step.
The President said that any increase
of the volume of legal tenders would
be imitation, and could not be calmly
contemplated. He does not think that
free banking, unless properly guarded,
especially In the matter of redemption,
would be imitation. He admitted that
at present the currency might be IN
equally distributed, taking into consid-
Grafton the population and wealth of
the different sections of the country,
but it was evident that the true remedy
was not to be found exclusively In leg
islation. The actual necessities of any
locality could not be determined nor
regulated by a mere theory, whichcould
only approximate the probable quaint
ty wanted. The per capita circulation
varies from about $3.50 for the East
ern and about S13 for the Middle
States, down to about 80 In the South
ern and Southwestern and $3.50 in the
Western States. In proportion to the
increase of industry must be the circu-
latIon of money, but it should be only
money based On competent security to
warrant its stability in the matter of
value.
FREE BANKING.
The President is of the opinion that
an insuficiency in the volume Of the
currency should not be met by an infa-
ton of the circulation of Government
paper. He thinks that the whole gues-
ton could be best solved by the author
ization of free banking, with an assur-
ance of redemption. The establish
ment of banks under this system, he
thinks, would be only as needed, and
the circulation would also be localized,
and would better answer the demands
Of any particular section, than by the
present system. Free banking would
increase the facilities Of trade, and the
people instead Of boarding their money
would avail themselves of the new
banks for the safe keeping of their
ready means. Exchange would also
be greatly facilitated. That banks
keep pace with the necessity of trade is
shown, he said, in the fact that at the
time of signing the Treaty of Peace
between the United States and Great
Britain there was but one bank In the
country; fifty years after there were
about nine hundred, and at present
there are nearly 1000.
The President remarked that so far
from free banking, rightly guarded, re-
sulting IN an excess of circulation, it
would be limited by the exacting law of
supply and demand, as applied to cur-
rency, and by the tax on circulation,
which would prevent the issue Of more
notes than could be proftably employ
ed. In fact, he said, six National
banks have drawn in their circulation
and redeemed their bonds, and are now
banking without circulation, finding
that more profitable. With proper
checks established by the Government,
as safeguards to its own finances, and
Is well to protect the interests of the
people, the President believes that a
general law defining policy and laying
down the proper limitations would be
sufficient. The people then, within the
bounds Of the law, could fix their cir
culatiOn to meet their own necessities.
1t is not improbable that the Presi-
dent may yet see proper to send a mes
sage to Congress embodying his views
-. Al 1,l.ao& - Al, G-o-oo