The Andrew County Republican. [volume] (Savannah, Mo.) 1871-1876, 1874-06-19
PRESIDENT GRANTS VIEWS ON TIE
I,Yh.i A.IEc

on James Russell Lowell, OF Boston.
PRESIDENT GRANTS views ON TIE
FINANCES.
Senator Jones. of Nevada (says a Washing.
ton dispatch). has obtained permission from
President Grant to publish the foil wing
memorandum. prepared by the latter, express
ing his views upon financial questions:
l believe it is a high and plain duty to return tC
a specie basis at the earliest practicable day, moi
only in compliance with legislative and part!
pledges, bu, as u step Indispensable to lasting ma.
tional prosperity. ! believe, further, that the time
has come when this can be done, or ut least begun,
with less embarrassment to every branch OF iu-
dustry than at any future time, after resort has
been had to unstable and temporary exredients to
stimulate unreal prosperity and speculation, on a
basis other than coin, the recognized medium Of
exchange throughout, the commercial world. The
particular mode selected TO bring about rrstorn-
ton Of the specie standard is not Of so
much consequence as that some adequate plan
be devised, a time fixed when currency shall
be exc!iangesble for coin AZ par. and the
plan adopted rigidly adhered to. II is not
probable that any legislation suggested by me
would prove acceptable to both branches 81 Con-
gress and, indeed, a full discussion might shake
my OWL faith in the details of any plan | NIGH;
propose. 1 will, however, venture 20 state the gen
eral features Of action which seem to me advisable.
The financial platform on which | would stand
and any departure from which would be in a
spirit of concession and harmony i'll Difference to
conflicting opinions. ! would like to Sc. the legal
tender clause, SO called, repealed the repeal to
take effect ut some future timc-say July ], 1875.
This would cause all contracts made after that
date for wages. sales. ETC., to be estimated in coin.
II would correct our notions OF values; the specie
dollar would be the only dollar known as u measure
Of equivalents. When debts afterwarl contracted
were paid in currency, instead If calling the PAPER
dollar a dollar, and quoting gold At 80 much pre-
MUM, We should think and sIeal Of paper A. at so
much discount. THIS alone would aid greatly In
bringing the two currencies hcarcr together at par.
/ would ike 10 sc a provision that at i nXed
dAy-say July l, is76-the currency issued by the
United States should lac redeemed in coin on pre-
scn,ation 10 any Assistant Treasurer, and tina. all
currency so redeemed should be cancelled and never
rci-surd. To effect this, IT would be- necessary to
authorize the issue of bonds payable in gold, bear
ing such interest a. would command par in gold, 10
be put out by the Treasury only III such sums as
should from time to tim. Ice needed for the purpose
Of redemption.
Such legislation world insure I return TO sound
financial principles in two y-arz. and would, in
my ndgimeu work less hardship to the debtor
interest than is Likely TO come from putting of the
day of final reckoning. II mus; be borne in mind.
too, that the creditor intcres; hat its day II dis
advantage also. when our present financial
system WAS brought In hy the supreme needs
of tho untiuu Af the time wtuil fnrfl.r
provide that from and after the date fixed FOR re-
demptIon, no bills whether of national banks or q:
the United States, returned to the treasury to be
exchanged for new bills, should be replace. with
bills Of .es- denomination than $40, and that in one
year after resumption. all bills Of less than s.
should be withdrawn from circulation and IN
two years all bills Of less than 30 = ould be with
drawn. The advantage of this would be the
strength given to the country against u time If de-
preston resulting from war, failure Of crops, or
any other cause, by keeping always in the hands
If the people II large supply Of the precious metals.
With all the smaller fractions 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 better out Of circula-
ton. With paper a legal tender, and d. n discount,
gold and silver becomes articles of merchandise, as
much as wheat or cotton. The surplus will find the
best market it can With small bills in circulation
there is no use for coin, except TO keep it in the
vaults of banks, to redeem circulation. During
periods of great speculation and apparent prosperi-
ty, there is little demand for coin, aud then it will
fow out to a market where it can be made to earn
something, which it cannot do while lying idle.
Gold, like anything else, when not needed. becomes
a surplus. and like every other surplus it seeks II
market where it can fad one. BY giving II active
employment, however, its presence can, IL seems
to me, be secured, and the panics and depre-sions
which have occurred periodically in times Of
wholly prevented, can at least be greatly mi,igated.
Indeed, l 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 early as 1850.
Again, l would provide an excess Of revenue
over current expenditures. / would do this by
rigid economy, and by taxation where taxation can
best be borne. Increased revenue would work a
constant reduction of the debt and interest, and
would provide coin to meet demands on the Treasury
for redemption of its notes, thereby diminishing
the amount of bonds needed for that purpose. All
taxes, after redemption begins, would be paid in
coin or United States notes. This would force re-
demption on the national banks. With measures
like these, or measures which would work out such
results, l see no danger in authorizing free bank
ing without limit.
MARTINsvILLE, Ind, claims to have
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