Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1874-06-10
GRANTS FINANCIAL VIEWS.

President Grant writes letter to
Senator Jones, of Nevada, in which
he gives very fully his views on the
the financial questions now occupying
the attention of the country at large.
By this openI expression from theiPresi-
dent both the inAationists and con-
tractionist know positively what is de-
sired by the Executive and the kind of
fnanc measure that will meet his
approval in this emergency. The
President starts out with the idea that
is high and plain duty to return to
specie basis at the earliest practicable
day not on y in compliance with legis-
latlve and party pledges, but as step
indispensable to lasting national pros
perity, and he believes the time has
come when this can be done, or at
least begun, with less embarrassment
to every branch of industry than at
any future time:
The legal tender claim he would
Ike to see repealed the repeal take
effect as soon as July LIST, 1875. This
would cause all contracts made after
that date for wages sc. to be estimated
In coin it would correct our notions
of values; the specie dollar would be
the only dollar noxn as the measure
of equivalents Paper would then be
spoken of as at so much discount in
stead of quoting gold as at SO much pre-
MUM. This would aid greatly in
bringing the two currencies nearer to-
gether at par. The President favors a
provision that at fixed date say July
LIST, 1875, the currency issued by the
United States should be redeemed in
coin, and that all currency so redeem
ed should be cancelled and never re-
Issued. To effect this the President ad-
B ~ises 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 it is claimed would insure
a return to sound financial prin pies
in two years and would work less hard
ships to the debtor interest than is
likely to come from putting off the
day of final reckoning. The creditor
class had their day Of adversely at the
commencement and during the war,
and it is right now to take their case
into account and protect them as we'll
as the debtor class.
That from the date fixed for the re
demption no bills returned to the
Treasury to be exchanged for new
bills should be replaced by bills of less
denomination than the ten dollars, and
that in one year after the resumption
all bills of less denomination than five
dollars should be withdrawn and in two
years all bills of less than ten dollars
should be with drawn from circulation.
This system would give strength to
the country against time of depres
sion resulting from failure of the crops,
or any other case, by keeping in the
hands Of the people large supply Of
precious metals. With all the small Ter
transactions conducted In coin, many
millions Of it would be kept in constant
use, and, of course, prevented from
leaving the country. Undoubtedly a
poorer currency will always drive the
batter out of circulation. With pa
per lega! tender and at discount
gold and silver become articles Of mer.
chandise as much as wheat or cotton
the surplus will fnd the best market i
can. With small bills in circulation
there is no use for coin except to keel
it in the vaults of banks to redeem
circulation
With measures such as the Pres
dent advocates in his letter, or meas
ures which would work out such re
suits, be es no danger in authorizing
free banking without limit.