Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-06-06
The Presidents Views Oh Finance

The Presidents views OH riHahcc.
Tn response to written request from Hon.
John 2. Jones, President Grant has given his
views upon the financial question in the form
of a "mcmorandun1, as follows
IT believe it high and plain duty to return
TO specie basis at the earliest practicable day,
not only in compliance with legislative and par
~ pledgcs, but as step Indispensable to last
inc national prosperity. | believe further, that
the time has come when this can be done, or
at least begun with embarrassment to every
branch of Industry than at any future time, al
ter resort has been had TO unstable and tenn
norary expedients to stimulate unreal prosper
~ and speculation on bases other than coin,
the recoenized medium of exchange through
ont the commercial world. The particular
mode selected to bring about a restoration of
the specie standard is not Of SO much conse-
nuence as that some adequate plan be devised,
| the time fixed when currency shall be exchange
able for coin at par, and the plan adopted rigid
" adhered to- 1t is not probable that any
legislation suggested by me would prove ac'
ceptable to both branches OF Congress, and,
indeed, full discussion might shake my own
faith with details Of any plan might propose;
| [ will, however, venture to state the general
features of the action which seems to me ad-
visable, the financial platform on which would
stand, and departure from which would DC 10
a spirit of conferences and harmony III Difference
to conflicting opluians.
| First-I would like to see the legal tender
clause so-calcd, repealed, the repeal to take
effect at a future time, say July l, 1873. THIS
would cause all contracts made after that date
for wages, sales, &c, to be estimated 10 coin;
| il would correct our note and coin value; the
specie dollar would be the only dollar known as
! the measure OF equivalents. When debts at
| forwards contracted were paid in currency, in
stead of calling the paper dollar dollar, and
quoting gold as so much premium, we should
thiuk and speak Of paper as at so much
discount. This alone would aid greatly 10
bringing the two currlencles nearer together at
par. :.
that at fixed day, say July |, 1876, the cur
reucy issued by the United States should be
redeemed 10 coin on presentation to any assls
tant treasurer, aud that all currency so redeem
ed should be Cancelled and never relssued. 10
effect this it would be necessary to authorize
the issue OF bonds payable in god bearing such
interest as would command par iD gold, to be
put out by the treasury, only in such sums as
| should from time TO time be needed for the
purpose Of redemption. Such legislation would
insure q return to 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 cred
itor interest had its day of disadvantage also
when our present financial system was brought
in by the supreme needs of the nation at the
time. I would further provide that from and
after the date fixed for redemption DO bills,
whether Of rational banks or OF the UuIted
States returned to the Treasury to be exchanged
for new bills should be replaced by bills OF less
denomination than ten dollars, and that one
year after resumption all bills OF less than tVe
dollars should be Withdrawn from circulation,
and in two years all bills OF less than ten dol
lars should be Withdrawn.
1.-THE advantage Of this would be the strength
given to this country against time OF depres-
sion resulting from war, failure Of crop, or any
other cause, by keeping always in the hands of
the people alarge supply of the precious metals.
With all smaller transactions conducted 10 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 pa
per, legal tender and discount, gold and sill
yer become articles of merchandise as much as
wheat or cotton. The surplus will find the
best market it can. With small bills in circu-
lation there is no use for coin except to keep it
in the vaults of the anks to redeem circulation.
During periods of great speculation and appar-
ent prosperity there is little demand for coin,
and then it will flow out to market where 1t
can be made to earn something which it eau
not do while lying idle Gold, like anything
else, when not needed becomes surplus, and
like every other surplus it seeks market where
it can find one. By giving active employment
to CON- however, its presence can, 1t seems to
me, be secured, and the panlcs and depresslons
which have occurred in times Of nominal specie
payments, if they cannot be wholly prevented,
! can at least be greatly mitigated. Indeed, |
question whether it would have been found ne.
cessary 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 no small bills as early as 1850.
Again, I would provide no excess of revenue
over current expenditures. would do this BY
rigid economy and by taxation while taxation
can best be borne Increased revenue would
work constant reduction of the debt aud in
terest, and would provide coin to meet de-
mauds on the treasury for the redemption of
! its notes, thereby diminishing the amount of
bonds needed for that that purpose. All taxes
after redemption begins, should be paid 10 coin
or United States notes. This would force re
demption on the national banks With meas.
ures like these, or measures which would work
out such results, see no danger 10 authorizing
| free banking without limit.
Civil Rights in Tennessee.
| MEMPHIS, Tenn, June 5.-Some weeks