The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-06
NATIONAL FINANCES.
The President Publishes an Ex-
position of His Views.
INFLATIONISTS INDIGNANT.
The Plain Road to Specie
Resumption.

Resumption.
PROBABLE FAILURE OF A COMPROMISE.
/ WASHINGTON June S. 1874.
An Interesting Memora ndum of Finan-
cial Views Written by the President
The Proper Means OF Attaining Specie
Payments.
The following correspondence on the financial
question between the President and senator
Jones, OF Nevada, has been obtained for pubnca-
tom
UNITED STATES SENATE CHAMBER,)
WASHINGTON, June 4, 1874 !
| was so deeply impressed by the clearness and
wisdom OF the financial views. some or which you
v yoa 70 Se S e
the honor. with lew Others, to be a participant,
snas dismiss M them from my mind The
upon this subject and the fact That public opinion
concerning the same Is stiIi IN process Of lorna
these views would be productive OF great good. l
| venture therefore, to request OF you that may
| nave copy OF the written memorandum to which
have alluded. with your permission that it may
be made public. have the honor to be, very re-
~ JOHN P. JONES.
The President replies as follows:-
EXECUTIVE MANSION
WASHINGTON. d. c., June 4, 1874.
DEAR SIR-Your note OF this date requesting
copy of memorandum which had prepared ex-
pressive OF my views upon the financial question
and which you, with Others have heard read, is
received, but at too late an hour to comply to-
night will, however. take great pleasure in
furnishing you copy in the morning as soon as 1
can have 1t copied.
1t is proper that should state that these views
were reduced 10 writing, because 1 had been con-
suited on this question. not only by some OF the
members OF the Conference Committee but by
many other members of Congress- To avoid any
and all possibility OF misunderstanding deemed
this course both justifable and proper.
With this explanation enclose you herewith the
memorandum referred to. Very respectfully,
q. 8. GRANT.
To Hon. J. P. JONES' United States Senate.
The memorandum enclosed is as follows:-
MEMORANDUM OF VIEWS ENTERTAINED ON THE
SUBJECT OF DESIRABLE LEGISLATION ON THE
FINANCES.
~ believe It high and plain duty to return to
specie basis at the earliest practicable day, not
only IN compliance with legislative and party
pledges, but as step indispensable to lasting
national prosperity. 1 believe, further, that the
time has come when this can be done, or at least
Of industry than at any future time after resort
has been had to unstable and temporary expe.
dents to stimulate unreal prosperity and specula-
ton on basis other than coin as the recognized
medium Of exchange throughout the commercial
world.
1.-THE particular mode selected to bring about
restoration OF the specie standard is not OF SO
much consequence as that some adequate plan be
devised. the time fixed when currency shall be ex-
changeable for coin at par and the plan adopted
rigidly adhered 10. 1t Is not probable that any
legislation suggested by me would prove accept.
able to both branches of Congress; and, indeed, q
full discussion might shake my own faith In the
details OF any plan might propose. l WILL how
ever venture to state the general features OF the
action which seems to me advisable, the financial
platform on which would stand and any de-
parture from which would be in a spirit OF conces
sion and harmony in Difference to conflicting
opinions.
'First-Iwo like to see the legal tender clause,
so.called repealed the repeal to take effect &C
future time, say July l, 1875. This wou ld cause oil
contracts made after that date, for wages. sales,
&c, to be estimated in coin. 1t would correct
our notions OF values. The specie dollar would be
the only dollar known as the measure or equiva-
Tents. When debts afterwards contracted were
paid in currency, instead OF calling the paper
dollar dollar and quoting gold at SO much pre-
MUM, we should think and speak Of paper as at
so much discount; this alone would aid greatly in
bringing the two currencies near together at par.
''Second-I would like to see provision that alta
fixed day, say July l, 1875, the currency issued by
the United States should be redeemed in coin ON
presentation to any Assistant Treasurer, and that
all the currency so redeemed should be cancelled
and never reissued. To effect this 1t would
be necessary to authorize the issue Or
bonds payable in gold, bearing such in
terest as would command 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 re.
dempti0n. Such legislation would insure 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
on the day Of final reckoning. 1t must be borne in
mind too that the creditor 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.
~ would further provide that, from and after the
date nxed for redemption, no bills, whether OF
national banks or Of the Cnited States, returned
to the Treasury to be exchanged for new bills
should be replaced BY bills of less denomination
than so. and that in one year after resumption
all bills OF less than s. should be withdrawn
from circnlafion and In Two xnars all hills