Bradford opinion. [volume] (Bradford, Vt.) 1874-1881, 1874-06-13
The Financial Problem.


business circles. The position which
Gen, Grant assumes in the memo
randum is the same as taken in his
two messages to Congress. In this
last paper, however, his ideas are
q expressed IN d brief and more con-
else manner than before. AS the
auestiou"how to resume specie pay
ment," or in other words make q
paper dollar equivalent in value to
a gold dollar is the most important
one now before the country, We
print below the memorandum of tho
President After stating that he
believes it a high and plain duty to
return to u specie basis ut the earli'
est practicable day, and that the
time has come when it can be done,
or at least begun, he says: is Be- i-1
First, would like to 500 the legal tender
lause 80 called, repealed. to take effect Stf
| future time, say July ], 1875, This would
cause all contracts made after that date for
wages, sales, etc., to be estimated In coin. 1T
would correct our notions of values. The
specie dollar would be the only dollar known
as the measure of equivalents when debts af'
terward contracted were paid In currency
instead of calling the paper dollar dollar
| A., ne dtGnonnt
alone would aid greatly in bringing tho two
currencies nearer together at par. p '' a."
:, Second, wonld like see provision that at
u fixed day, say July !, 1876, the currency j.
sued by the United States should be redeemed
in ceiu on presentation to any Assistant Treas
urer, and that oil the currency so redeemed
should be CANCELLED and never rsissucd. 10
effect this it would be necessary to author
ize the issue Of bonds payable in gold, bear
ing such interest an would command par in
gold, to DO put out by the Treasury only IN
such sums us should from time to time DO
needed for the purpose Of redemption. Such
legislation would insure o return to sound H.
napcial principles in two years, and would, in
my judgement, work less hardship to tho debt
or interest than is likely to come from put
ting off the day of final reckoning. 1t must be
borne in mind too, that the creditors interest
had its day of disadvantage also, when our
present financial system was brought into DO
ing by the supreme needs Of the nation at the
time. rf.. ...I DOT .lt In t.l t.'.
would further provide that, from and af-
ter the date fixed for redemption, no bills,
whether of national banks or Of the United
States, returned to the Treasury to be ex-
changed for new bills, should be replaced by
bills of less denomination than ten dollars,
and that in ono year after redemption all bills
Of less than five dollars should be withdrawn
from circulation, and in two years all bills OF
less than ten dollars should be withdrawn.
The advantage of this would be the strength
given to the country against q time of de-
preston, resulting from war, failure of crops,
Or any other cause. BY keeping always in the
hands of the people large supply of the
precious metal, with all small transactions con-
Quoted in coin, many millions Of 1t would be
kept in constant use, and Of course prevent
cd from leaving the country. Undoubtedly a
poorer currency will always drive the better
out of circulating. With paper legal ten
der, and at discount, gold and silver become
articles of merchandise as much as wheat or
cotton. The surplus will find the best mark.
ct it can. With small bills in circulation
there is no use for coin, except to keep 1t in
tho vaults of banks to redeem circulation
During periods of great speculation and ap.
parent prosperity there is little demand 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, be c ONES
surplus, and like every other, surplus it
seeks market where it ean find one. BY
giving active employment to coin, however
| its presence can, it see mi to me, be secured
| and the panics and depre ssions which OCCUR
red periodically In times of nominal specie
payments, if they cannot be wholly prevent
ed, can at least be greatly mitigated. Indeed
question whether it would have been fount
necessary to depart from the standard o
specie in trying days which gave birth to the
first legal tender act had the country taken
the ground of small bills as early as 1850.
Again, i would provide an excess of rove
nue. over current expenditures. would do
this by rigid economy and by taxation, where
taxation can best be borne. Increased reye.
hue would work a constant reduction Of in
,terest and would provide coin to meet the de
mands on the Treasury for the redemption Of
its notes, thereby diminishing the amount o.
bonds needed for that purpose. All taxes Of
ter redemption begins should be paid in coli
| or United States notes. This would force re
demption on the National banks. With meas
| ures like these, or measures which would wOrl
out. such results, 1 sec no danger in authoriz
ing free banking without limit.
The Presidents opinion as above
expressed is generally endorsed by
leading men Of all parties, and
by the press. Even papers which
have opposed to the extent Of their
power every act Of the "Grant Cen
tralized Administration" acknow.
ledge the soundness of the Presi.
dents views. and express surprise
at his intimate financial acumen.
The n. Y. Herald regards the pub
lioation of the memorandum as ga
wise, frank, manly step on the part
of the President" The Commercial
Advertiser says: "These views OF
the President in this part of the
country are regarded but as an ex-
preston of the public sense on this