The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1874-06-18


WAsHEGroN, June 5.-Senator Jones has
obtained permission from President Grant
to publish the following memorandum, pre-
pared BY the latter, expressing his views
upon financial questions:
II believe II high and plain dutv Ia re-
turn 70 specie basis at the earliest practi-
cable day, not only In compliance with leg
islatlYe and party pledges, but as a step in
dispensable to lasting national prosperity.
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 future time, after re-
sort has been had to unstable and Temporary
expedients to stimulate unreal prosperity
and speculation, on 9 basis other than coin,
recognized medium Of exchange through
cut the Commercial world. The particular
mode selected 70 bring about restoration Of
the specie standard Is not Of so much con-
sequence as that some adequate plan be de-
vised, a time fixed when, currency shall be
exchangeable for coin ct par, and the plan
adopted ngidIy adhered to.
'Itis 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 action which seems to me
advisable. The financial platform on which
would stand, and any departure from
which would be in a spirit Of concession
and harmony in Difference to conflicting
opinions, would like to sec the legal-ten-
der clause, so-called, repealed; the repeal
to take effect at some future time, say July
/, 1874. This would cause all contracts
made after that date for wages, sales, etc.,
to be estimated in coin. Il would correct
our notions of values the specie dollar
would be the only dollar known as a meas.
ure Of equivalents When debts afterwards
contracted were paid in currency instead of
calling the paper dollar dollar, and quo
ting 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 curreneies nearer together
at par. ~, s. -
81 would Ike to see a provision that at a
fixed day-say July, 1, 1S76--the currency
issued by the United State should be re-.
deemed in coin on presentation to any as
sistant treasurer, and that all currency SO
redeemed should be cancelled and never re-
issued. To effect this, it would be neces-
sary to authorize the issue of bonds payable
IN guild, bearing such interest 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
redemption.
"Such Legislation would insure a 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 off the day of final
reckoning, It must be borne in mind,
too, that the creditor interest had its day of
disadvantage also, when our present tnan-
cial system was brought in by the supreme
heads Of the nation at the time. would
further provide that from and after the
date fixed for redemption, no bills, whether
OF national banks or of the United States,
returned to the treasury 70 be exchanged
for new bills, should be replaced WITH bills
Of less denomination than $40. and that In
one year after resumption all bills of less
than IS should be withdrawn from circula-
tioa; aud In two years all bills of less than
$40 should be withdrawn.
The advantage Of this would be the
strength given TO the country against time
of depression resulting from the war, failure
of cops, or any other cause, by keeping
always in the hands of the people LARGE
supply of the precious metals. With all
the smaller transactions conducted in coin,
many millions of it would be kept in. con-
slant use, and, of course, prevented from
leaving the country. Undoubtedly poorer
currency Will always drive the better out of
circulation. With paper a legal tender, and
at discount, gold and silver become ar
ticles of merchandise as much as wheat or
cotton. The surplus will find the best
market it can. With small bills in circula-
tion there is no use for coin, except to keep
1t in the vaults Of banks to redeem circula-
ton. During periods of great speculation
and apparent prosperity, there is little de-
mand for coin, and then it will flow 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 surplus, and, like every
other surplus, it seeks market where it
can find one.
.tBy giving it active employment. how
ever, its presence can, it seems to me, be
secured, and the panics and depressions
which have occurred periodically in times
Of nominal specie payments, If they cannot
be wholly prevented, can at least be greatly
mitigated. Indeed, question whether it
would have been found necessary to depart
from the standard of specie in the irving
days which gave birth to the first legal
tender act, had the country taken the
ground of no small bills as early as 1850.
'sAgain, would provide an excess of
revenue over current expenditures. I would
do this by rigid economy, and by taxation
where taxation can best be borne. In
creased revenue would work constant re-
duction of the debt and interest, and would
provide coin to meet demands on the trea-
sury for redemption of its notes, thereby
diminishing the amount of bonds needed
for that purpose. All taxes, after redemp-
ton begins, should 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, see no dan
ger in authorizing free banking Without