Holmes County Republican. [volume] (Millersburg, Holmes Co., O. [Ohio]) 1870-1895, 1874-06-11
THE PRESIDENT ON THE FINANCIAL
QUESTION.

QuES iUN.
Senator Jones has obtained per-
mission from President Grant to
publish the following memorandum
prepared by the latter, expressing
his views upon the financial ques-
tions:
II believe it," says the President,
"a high and plain duty to return to
a specie basis at the earliest practi
cable day, not only in compliance
with Legislative and party pledges
but as a step indispensable to last
ing national prosperity. l 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 at any fu-
ture time. After resort has been
had to unstable and temporary ex-
pedients to stimulate 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 a specie standard is
not of so much consequence as that
some adequate plan be devised, a
time fixed when currency shall be
exchangeable for coin at par and
the plan adopted and rigidly adher-
ed to. 1t is not probable that any
Legislation suggested by me would
prove acceptable to both branches
of Congress, and indeed full dis
cussion might shake my own faith
in the details of any plan l might
propose. 1 will, however, venture
to state the general features of the
action which seems to me advisable:
the financial platform on which l
would stand and any department
from which would be in spirit of
concession and harmony in defer
ence to conflicting opinions:
First. would like to see the legal
tender clause so called repealed, the
repeal to take effect at some future
time, say July1. 1875. This would
cause all contracts made after that
date for wages, sales, ETC., to be es-
timated in coin, and would correct
our notions of values. 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 dollar, and
quoting gold at SO 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 pro-
vision that at a fixed day, say July |
1st. 1876 the currency issued by the |
United States should be redeemed
in coin on presentation to any Assis- |
tant Treasurer, and that all curren-
cy so redeemed should be cancelled |
and never reissued. To effect this
it would be necessary to authorize
the issue of bonds payable in gold
bearing such interest as would COM
mand par in 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 ensure re-
turn to sound financial principles in
two years, and would in my Judge
ment work less hardship to the debt
or interest than is likely to come
from putting off the--daysof final rec
oning. 1t must be borne in mind,
too, that the creditor interest had
its day of advantage also, when our
present financial system was brought
in by the supreme needs of the ma
tion at the time. / would further
provide that from and after the date
fixed for redemption, no bills, ,wheth-
er of national banks or of the Unit
ed States, returned to the Treasury
to be exchanged for new, should be
of less denomination than ten dol
lars, and that in one year after re-
all bills of less than five
dollars should be withdrawn from
circulation, and in two years all bills
of less than two dollars: should be
The advantage of this
would be strength given to the coun-
try against time of depression re-
sulting from war, failure of crops or
any other cause, by keeping always !
in the hands of the people large +,
supply of precious metals; withal, !
the smaller transactions conducted
In coin, many millions of it would
be kept in constant use and ofcourse
prevented from leaving the country.
Undoubtedly poorer currency will
always drive the better out of cir c
,ulation. With paper legal tender +
md at discount, gold and silver
become articles of merchandise as
much as wheat or cotton. The sur a
,lus will find the best market it can. {
With small bills in circulation, there a
s no use for coin, except TO keep it a
n the vaults of banks to redeem "
circulation. During periods of great 9
and apparent prosperity, d
here is little demand for coin, and e.
hen it will flow out to a market ri
there it can be made to earn some
hing, which it cannot do while ly-
ng idle. Gold, like anything else, W
hen not needed becomes surplus; ct
nd, like every other suplus seeks a I'll
larket where it can find one. By a,
living active employment to coin, :,
owever,it presence can,it seems to IL
le, be secured, and the depresslons Oil
hich have occurred periodically in is
mes of nominal specie payments, lii
they cannot be wholly prevented, ar
IN at least be greatly mitigated. ~
ldeed, 1 question whether it would al
ave been found necessary to de- Sc
art from the standard of specie in nc
lie trying days which gave birth to ia
le first legal tender act, had the tb
'untry taken the ground of no -
nall bills as early as 1860.
Again l would provide an excess tn