New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-04-03
NATIONAL FINANCE.
THE PRESIDENTS OPINIONS.

A MOVE TOWARD SPECIE fhimhNio
COURsH-FREE BANKING FAVORED
iBr TELEGRAPH TO TIE TRIBUNEl
w.suNGToN April mo one in pubic DE- or
mt NJ IL has watched with more interest the long
6nanoial debates than the President, and he mas
not bestated to express freely his opposition 10 all
schemes of imitation lie has carefully examined each
of the various plans that have been presenteo Ill
either House and looks upon the question as one
which imposes upon him very great respon-
sibilties He believes that when he I"
called upon to act on this question IL Will NC
his duty carefully TO consider. not only inc interest,"
of our own citizens but also that OF those SUBJECTS
of the nations of the Old World who IN their fai.n
y, the permanency Of our Government and the rapid
DEVELOPMENT of our country in wealth and popula-
ton have largely invested their means Ia ouI Wv
ernmeut and private securities.
In conversation respecting the pending financial
discussion and the prospect of an imitation OF the
currency as indicated by the recent votes III Con
eress the President remarked to-day that any nance
bill which may be passed and sent to INN Tor ap
prevail will be most closely scrutlnlSed with paruc
uiar reference 20 it's effect on the amount OF cur
rency az he is more firmly convinced than ever
that expansion, except as dictated pS the
actual and pressing wants OF the people
would not only be preJudicial, but sulcldai
IL their best interests He observed that the inter-
eStS OF the Inherent socuOns Oh couhhS y" SAO'H
nyely ranging through every degree of the semi
tropical and north temperate zones, must IN many
respects differ. They vary the productions of the
soil and as the pursuits in which the inhabitants
are engaged whether they be agricultural, manu-
featuring mining, commerce, or fisheries, each con-
stitutinq a specific source of wealth. There may
again be difference he said, within any one OF these
general sections AZ cotton forms the staple OF the
South; grain of the West mining and manufactur-
ing employs the people of Pennsylvania and Mary
land: commerce and agriculture, New-fork and
general manufacturing New England. But he re-
marked there Is one thing that is necessary to ALL
and that Is "a well balanced and wise financial
policy. III the absence OF this every industry is
parayzed and the people, unable to apply their skill
anu enterprise, arc soon impoverished.
SPECIE PAYMENTS FAVORED.
He sand that anything but move toward specie
payments. be its accomplishment near or remote
would be unwise, and no matter what might be the
embarrassment % tho moment it would not be long
before the country would be relieved of the present
pressure and would then be infinitely better Off If
no unwise step is now taken. Initiation, he thought
would be a step backward and there were no attend
ant circumstances such IS war or famine, winch
would seem 10 Justify such measure now. lnia-
ton he said would be to increase the responsibility
of the Government and he would not lend his aid to
that when there appeared TO him reason for such
astep.
The President eaid that any increase of the vol
uHe of legal tenders would be initiation, and could
not be calmly contemplated. He does not think
that free banking unless properly guarded, espe
sally in the matter of redemption, would be inta-
ton. He admitted that at present the currency
might be unequsy distributed taking into consid-
Grafton the population and wealth af the different
sections of the country but it was evident that
the true remedy was not to be found ex-
cusively i'll legislation The actual necessities
OF any locality could not be determined
nor regulated by a mere theory, which could only
approximate the probable quantity wanted. The
per capita circulation varies from about S3l SO for
the Eastern and about Sl3 for the Middle States
down TO about SO in the Southern and Southwestern
and g 50 III the Western States. In proportion to
the increase of industry must be the circulation Of
money but ii should be only money based on com
pecnt security to warrant its stability III the matter
OF value.
FREE BANKING.
The President is of the opinion that an Insult
feenoy III the volume Of the currency should not be
met by Initiation Of the circulation OF Government
paper lie thinks that the whole question could be
best solved by the authorization of free banking
with an assurance of redemption. The establish
ment of banks under this system, he thinks would
be only as needed and the circulation would also be
localized, and would better answer the demands
of any particular section, than by the pres
ent system. Free banking would increase the
facilities of trade, ana the people instead of hoard
ing then money would avail themselves of the new
banks for the safe keeping of their ready means
Exchange would also be greatly facilitated. That
banks keep pace with the necessity of trade is shown
be sand in the fact that at the time of signing the
Treaty OF Peace between the United States and
try SO years after there were about 900, and at
present there nearly 1000
The President remarked that SO far from free
banking rightly guarded, resulting in an excess Of
circulation it would be limited by the exactiDg law
OF supply and demand, as applied 10 currency, and
by the tax on circulation which would prevent the
Issue of more notes than could be proftably en-
ployed. IL fact he said six National banks have
drawn in their circulation and redeemed their bonds
and are now banking without circulation, find
IBg that more profitable. With proper checks
established by the Government, as safeguards to
ITS finances and well to protect the interests
of the people, the President believes that general
law defining policy and laying down the proper
limitations would he sufficient The people then,
within the bounds of the law. could fix their circu-
1ation to meet their own necessities
1t 10 not improbable that the President NAV vet
zee proper to seud message TO Congress embodying
bie views on the subject Of the finances.
THE PROGRESS OF IMITATION
IMPORTANT ACTION IN THE sKNATE-MR MERRI-
MONS S46OOOOW PROPOSITION ADoPTED-vAIN