Litchfield enquirer., 1874-06-18
President Grant on Finance. :

cd:
 UNITED STATES SENATE CHAMBER, }
 WASHINGTON, June 4, 1874.
 To use President: l was so deepl impressed by the clearness and wisdom of the financial views--some of which vo, have, fortunately, reduced to writing-re cently expressed by you in conversation Tn which had the honor, with few oth CTS, to be participant, that cannot dis miss them from my mind. The great di versailles of ideas throughout the county upon this subject, and the fact that pub hc opinion concerning the same is still il process of formation, lead me to believe that the publication of these views would be productive ofss great good. venture, therefore, to request of you that I nav have a copy of the written memorandum to which I have alluded, with your per. mission that it may be made public.
 have the honor to be, very respect fully, your obedient servant,
 JOHN P. JONES.
 EXECUTIVE MANSION.
 WASHINGTON, D. C., June 4, 1874.
 DEAR SIR: Your note of this date, re- questing copy of a memorandum which had prepared expressive of my views upon the financial question, and which you with others have heard read, is re- ceived, but at too late an hour to comply to night. I will. however, take great pleasure in furnishing you a copy in the morning as soon as can have 1t copied. it is proper that should state that these views were reduced to writing because I had been consulted on this question not only by some members of the Conference Committee but by many other members of Congress. To avoid all possibiIi- ty of misunderstanding, I deemed this course both iustiiable and proper. With this explanation 1 enclose you herewith the memorandum referred to. Very re- spectfully, U. s. GRANT.
 To the Hon. J. P. Jones, U. s. Senate MEMORANDUM ot v,evs entertained on the
 subject cf desirable Legislation on the
 finances.
 1 believe it high and plain duty to return to specie basis at the earliest prac- ticable day, not only in compliance with legislative and party pledges, but as a step indispensable to lasting national pros perity. 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-
 
 unstable and temporary expedients to stimulate unreal prosperity and specula- tion on bases other than coin as the rec Ognized medium of exchange throughout the commercial world, 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 exchangeable for coin at par, and the plan adopted rigidly adhered to. It IS not probable that any legislation sug- gested by me would prove acceptable to both branches of Congress, and indeed a full discussion might shake my own faith in the details of any plan might propose. | will, however, venture to state the gen. eral features of the action which seems to me advisable-the financial platform on which I would stand, and any departure from which would be in spirit of conces- sion and harmony in deference to con- hicting opinions.
 First: I would like to see the legal tender clause, so-called, repealed; the re- peal to take effect at some future time. say July 1st, 1875; this would cause ali contracts made after that date, for wages. sales, etc, to be estimated in coin. It would correct our notions of values. The specie dollar would be the only dollar known as the measure of equivalents When debts afterwards contracted were paid in currency, instead of calling the paper dollar dollar and quoting gold at so much premium, We should think and speak of paper as at so much discount: this alone would aid greatly in bringing the two currencies nearer together at par.
 SccORd: would like to see a proyis: ion that at fixed day, say July 1, 1876, the currency issued by the United States should be redeemed ill coin on presenta- ton to any assistant treasurer. and that all the currency so redeemed should be cancelled and never reissued. To effect this. it would be necessary to authorize the issue of bonds payable in gold, bear ing such interest as would command par m 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- demption.
 Such legislation would insure return to sound financial principles in two years, and would in my judgement work less hardship to the debtor interest, than is likely to come from putting of the day of final reckoning. It must be borne in mind too, that the creditor interest had its day of disadvantages also when our present financial system was brought in by the supreme meeds of tho nation at the time. would further provide that from and af- ter the date fixed for redemption, no bills. whether of National banks or of the Unit, ed States, returned to the Treasury to be exchanged for new bills, should be re- placed by bills of less denomination than $lO, and that in one year after resump- tiOn all bills of less than $5 should be with drawn from circulation and in two years all bills of less than $l0 should be with drawn. The advantage of this would be the strength given to the country against time of depression resulting from war. failure of crops, or any other cause, by keeping always in the hands of the people a large supply of the precious metals. With all smaller transactions conducted in coin, many millions of it would be kept In constant use and of course prevented from leaving the country. Undoubtedlv poorer currency will always drive tbe better out of circulation. With naner o legal tender, and at 6 discount. gold and silver become articles of merchandise os much Gs wheat or cotton. The surnlns will find the best market it can. With small bills in circulation, there is no nse for coin, except to keep it in the vaults of banks to redeem circulation. During pc riods of great speculation and apparent prosperity, there is little demand for coin and then it will flow out to a market where 1t can be made to earn something which 1t cannot do while lying idle. Gold. like anything else, when not needed become. surplus, and like every other surplus. ii seeks market where it can find one. B, giving active employment to coin. how ever, it's presence can, it seems to me. b, secured, and tine panics and depression, which have occurred periodically in time of nominal specie payments, if they can not be wholly prevented: can at least b, greatly mitigated. Indeed, I question whether it would have been found necessa " to depart from the standard of specie m the trying days which gave birth to tn, first legal tender act had the country taker the ground of no small bills as early a. 1860. '''
 Again. would provide an excess of rev enae over current expenditures. would do this by rigid economy, and by taxa ton where taxation ran laaot bo" N