The Hawaiian gazette., 1874-07-22
The Finances.
Views OF President Graut--TIc wants 20 Return
to specie Basis as speedily rs Possible.

to specie Basis as speedily Possible.
WASHINGTON. June 5lh.-Seuator Jones has
obtained permission from President Grant to
publish the following memorandum, prepared by
the latter. expressing his views on financial ques-
tons:
Il believe It to be Says the President) our
high aud plain duty to return to a specie basis at
the earliest practicable day not only in com
piance with legislation aud party pledges, but as
step Indispensable to our lasting national pros
perity. believe further. that the time has come
when this can be done, or at least begun. with
less disarrangement to every branch Of industry
than at any future time. Aller resort has been
had to unstable and temporary expcdienis to
stimulate unreal prosperity and speculation on a
basis other than coiu-lhe recognized medium Of
exchange throughout the commercial world-the
particular mode selected TO bring about a restora-
ton Of the desired standard is not Of so much
consequence as that some adequate plan be de-
vised, and time fixed when the currency shall
be exchangeable for coin at par and the plan
adopted rigidly adhered 10. 1t is not probable
that any legislation suggested by me would provo
acceptable to both branches Of Congress, and in
deed full discussion might shake my own faith in
the details Of any plan might propose.
l will however, venture to state the Leading
features Of the action which seems TO me to be
advisable, and the financial platform on which
would stand, and any departure from which would
be in spirit of concession and harmony, in de-
ference to conflicting opinion.
To effect this, 1t would be necessary to au.
thOrize au Issue Of bonds, payable in gold, bear
ing such interest as would command par in gold,
to be put out by the Treasury only in such sums
as should, IRON time 10 time, be needed for the
purpose Of redemption Such legislation would
insure 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 OF the day Of fnal reckon
ing. 1t must be borne in mind, too, that the
creditor interest had its day of disadvantage,
when our present financial system was brought in
by the supreme needs Of the nation. 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 to be exchanged for new bills should
be replaced by bills Of less denomination than
ten dollars; and that in one year after resump-
ton all bills less than Eve dollars should be with
drawn 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 time OF depression
resulting from war, iailure of crops or any other
cause, by keeping always in the hands Of the peo-
pie a large supply Of the precious metals. With
all the smaller transactions conducted in coin,
many millions OF it would be kept in constant
use and Of course prevented from leaving the
country.
BY giving gold active employment, its presence
can, it seems to me, be secured, aud panics and
depressions which have occurred periodically in
times Of nominal specie payments, if they can
not be wholly prevented, can at least be greatly
nitigated. Indeed, question whether it would
have been found necessary to depart from the
standard Of specie 10 the trying day which gave
birth to the first legal tender Act, had the eouu-
try taken the ground OF no small bills as early as
IS5O.u