Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1874-06-10
Senslblc SnggasiIons.

The President has taken the somewhat
extraordinary step Of communicating bis
views to the country on financial questions
in the shape Of memorandum addressed TO
Senator Jones' Of Nevada. The cousiitu.
ton provides that all expressions Of opinion
Of this character on the part Of the Execu.
tive shall be communicated to Congress 10
the form Of message We presume there
will be some temper shown by the inha.
tionists 10 reference to what may be re.
garded as an infringement Of the rights Of
Congress. The country, however, will not
be over.critical, especially as the President
has as much right to express his views as
any other citizen, aud the country may take
them for what they are worth 1t has been
a subject Of complaint, too, that the admin.
islra'ion has never bad policy on financial
questions aud that Congress has been com.
PEELED to legslate in the dark SO, on the
whole, this is a wise, frank, manly step on
the part Of the President. His views arc
sound and if adopted will serve the best
interests Of the country. They should be
read with attention and profit by all who
believe that the way to resume specie pay.
ments is to buy few printing presses aud
issue roams Of new "cdrrcncy" The fol.
lowing is the memorandum:
believe il isa high and plain duty to return
to a specie basis at the earliest practicable cay
not only in compliance with legislative and
party pledges, but as step indispensable %
lasting national prosperity. believe further
that the time has come when this can DO done
or at least begun, with less embarrassment to
every branch Of industry than at any future
time, after resort has been had 10 Temporary
expedients to stimulate unreal prosperity and
speculation on basis other than coin, az
the recognized medium OF exchange through.
out the commercial world The particular
mode selected to bring about a restoration Of
the specie standard is not Of so much conse.
quence as that some adequate plan be devised,
the time fixed when tho currency shall be CO
changed for coin at par, and the plan adopted
rigilly adhered to-
| IL is not probable that any legislation sug-
gcsted by me would prove acceptable to bah
branches of Congress, and, indeed a full Is
| cussiOn might shake my own faith in the &C.
tails Of any plan | might propose ! vii,
however, venture to state the general features
Of action which seem to be advisable, the
financial platform on which | would stand
and any departure from which would be in a
spirit Of concession and harmony in Difference
to conflicting opinions. First. would like 10
see the legal tender clause so-called, repealed,
to take effect at future time, say July |, lo7j
This would cause all contracts made after that
| date for wages sales, etc, ~ be estimated ia
coin. IL would correct our notions Of values.
The specie dollar would hc the only dllar
known as the measure of equivalents, when
debts afterwards contracted are paid in cur
rency. Instead Of calling the paper dollar
dollar, and quoting gold at so much premium,
We should think aud speak Of paper AS at 50
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, shy July /, 1876, the currency
issued by the United States should be redeemed
in coin on presentation to any assistant treas
urer, and that all the currency 80 redeemed
should be Cancelled and never reissued To
effect this, il would be necessary to authorize
the issue Of bonds payable in gold bearing
such interest as would command par in gold
10 be put out by the treasury only in such sums
rs should from time TO time be needed for
the purpose of redemption. Such legislation
would ensure a return to sound financial prin-
cples in two years, and would, in my ildg
ment, work less hardship TO the debtor inter
est than is likely TO come from putting oil the
day Of final reckoning. 1t must be borne in
mind, too, that the creditors interest had it,
day of disadvantage also when our present
financial system was brought in by the supreme
need of the nation at the time
would further provide that from and after
the dato liked for redemption, no bills whether
OF national banks or Of the United States re-
turned TO the treasury to be exchanged for new
bills, should be replaced by bills oil less donom-
inatlon than ten dollars, and that in one year
after redemption, all bills less than five dollars
should be withdrawn from circulation, and in
two years all bills Of less than ten dollars should
also be withdrawn. The advantage of this
would be strength given to the country against
a time of depression resulting from war, fail
ure of crops or any other cause by keeping al
ways in the hands OF the people large supply
Of the precious metals. With all smaller trans
actions conducted in coin, many millions of il
would be kept in constant use and Of course
prevented from leaving the country. Undoubt-
eddy a poorer currency will always drive the
better out of circulation. With paper a legal
tender and at discount, gold and silver be-
come articles Of merchandise IS much as wheat
or cotton. The surplus will find the best market
it can. With small bills in circulation, asa rule,
there is no use for coin, except to keep it in
the vaults Of the banks to redeem the circua-
ton. During periods of great speculation and
apparent prosperity, there is little de-
mand for coin and then it will flow out to
a market where it can be made to earn some
thing which it cannot do while lying idle.
Cold like anything else when not needed, be-
comes surplus it seeks a market where it can
find one. BY giving active employment to coin,
however, its presence can, it seems TO me, be
, secured, and the panics and depressions which
have occurred periodically in time Of nominal
specie payments, if they cannot be wholly pre-
vented can at least be greatly mitigated |
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 in 1850
Again would provide an excess OF revenue
f over current expenditures. | would do this by
rigid economy and by taxation, where taxation
can be done. An increased income would work
. a constant reduction Of debt and interest, and
would provide coin 10 meet the demands on the
treasury for the redemption of its notes, thereby
diminishing the amount Of bonds needed for
that purpose. All taxes after redemption be-
gins should be paid in coin or United States
notes. This would force redemption on the
national banks. With measures like these, or
measures which would work out such results, /
see no danger in authorizing free banking with
out limit.