The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1874-04-24

pending the farther reduction of the
currency. The S44, ,OOO, 600 have ever
been regarded as a reserve, to be used
only in case of an emergency, such as
has occurred on several occasions, and
must occur when from any cause the
revenues suddenly fall below expendi-
tures; and such a reserve is necessary,
because the fractional currency, amount
ing to fifty millions, is redeemable in
legal-tenders on call. 1t may be said
that such a return of fractional curren-
cy for reden ption is impossible; but let
steps be taken for a return to a specie
basis, and it will be found that silver
will take the place of fractional curren-
cy as rapidly as it can be supplied.
When the premium on gold reaches
sufficiently low point, with the amount
of United States notes to be issued per-
manently within proper limits, and the
Treasury so strengthened as to be able
to redeem them in coin on demand, it
will then be safe to inaugurate system
of free banking, with such provisions as
to make compulsory the redemption of
the circulating notes of banks in coin or
United States notes themselves, redeem
able and made equivalent to coin. Asa
measure preparatory TO free banking, or
for placing the Government in condi-
ton to redeem its notes in coin at the
earliest practicable moment, the reve-
nues of the country should be increased
so as to pay the current expenses, pro-
vided for the sinking fund required by
law, and also a surplus to be retained in
the Treasury, in gold.
am not a believer in any artificial
method of making paper money equal
to coin, when coin is not owned or held
ready to redeem the promises to pay, for
paper money is nothing more than
promises to pay, and is valuable exact
ly in proportion to the amount of coin
that it can be converted into.
| While coin is not used as a circula-
ting medium, or the currency of the
country is not convertible into it at par,
it becomes an article of commerce as
much as any other product. The sur
plus will seek foreign market as well
as any other surplus. The balance OF
trade has nothing to do with the ques-
ton. The duties on imports being re-
quired in coin creates limited demand
for gold, and about enough to satisfy
that demand remains in the country. To
increase this supply, I see no way open
but by the Government boarding
through the means above given, and
possibly by requiring the National
banks to aid.
1t is claimed by the advocates of the
measure herewith returned, that there
is an unequal distribution of the bank.
ing capital of the country. l was dis
posed to give great weight to this view
of the question at first, but on reflection
it will be remembered that there still
remains four millions of dollars of au
thorized bank note circulation assigned
to States having less than their quota
not yet taken. In addition to this, th'
States having less than their quota o
bank circulation have the option o
twenty-five millions more, to be takel
from those States having more than pro
portion. When this is all taken up, o
when specie payments are fully restored
or are in rapid process of restoration, i
will be the time to consider the question
of "more currency" U.S GRANT.
EXECUTIVE MANSION, April %, "a