Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-03-27
The National Finances---VieWS Of
President Grant.


terest at this time, especially in connection
with the action which the two Houses have
now taken in regard to the issue of the four
hundred millions Of grenbacks. In converse
ton Yesterday the President observed that
nothing vas more essential to the welfare OF
the people at this time than the declaration OF
wise financial policy, one which 10 addition
to its comprehensive charter would embrace 10
its range the whole scope of the wants OF every
section of the country, and also have the as
surance of some degree Of permanency and GER
tainty.
He thought that no single Influence was
more productive of evil consequences ID every
departmeut of trade than that Of uncertainty
1t bewidered 6nauciers of the greatest fore
sight, and TO business men and manufacturers
it was matter of chance whether the end
would be success or ruin. 1t derangcd val ues,
and gave even the daily operations of trade
degree of fuctuation which rendered it both
impracticable aud impossible to know what the
changes OF duy might bring forth. The
President has repeatedly expressed his desire
for greater permanency III the huancial pollcy
as euunciatcd by Congress IN the various laws
passed during the past five years. These ire
oucnt changes have greatly embarrassed the
operations of the Treasury, and have rendered
il impossible for the President or the Secretary
to nursue direct line They have been COM
PEELED to make diversions to shape the hnanccs
to the divers turns Of legislation.
The President said that he thought that
something would have been done before this to
allav the soIictude OF merchants and manutac-
turers as to the views of Congress on the all
imuortant question Of finances. He thought
that prompt movement 10 hcright direction,
as soon as practicable alter the meeting OF Con
gross, would have gone far towards thorough
restoration of order and confidence. The pane,
he thought. was one of those Ieactlonary move
ments which are inevitable after season OF
extraordinary activity, and applied only to rail-
road spccuatOns. lie did not think that the
business and manufacturing Interests OF the
country were involved IN the crash except Dy
indirection 1t was a lack CT confidence rather
than lack Of ability that led 10 such general
suspension of activity of all kinds. l he evlden-
ccs Of Remuneration were apparent the moment
the smoke of the first explosion lifted, aud many
manufacturing establishments which had sus
, nrndcd. after a brict respite, resumed opera
TONS The stagnation in trade which naturally
resulted from the lack OF confidence accustomed
, bv the panic was further protracted ny the de-
sire of the larger merchants and manufacture
to DELAY little longer and see what Congress
intended to do about the matter.
While not critici5ng the acts OF Congress the
President observed that he had hoped some
thing would have been done before this. The
) rival views of the East, West and South 90
the currency question be thought multiplied
the difficulties Of the fuaucial situation, and
. with the opening Of the spring trade there was
no definite indication of the intentions OF Con,
, gress The effect of this, he thought, could
, not be but Injurious, as 1t was evident that
what the country now wanted was action by
Congress- as it was conceded on all sides that
Congress proposed to do something on the sub
icct, the quicker done the better.
The President said he was opposed to lnHa-
ton, as it did not briug the means Of relief
There might be temporary cessation of the
stringeucy of the money markets, out with IN
Aation he thought the people would suffer
more severely in the end. That all legislation
should have one main purpose 10 view, and
that should be a resumption OF specie payment
} at the earliest practicable moment lie favor
ed free banking, with provisions for the re-
demption of all issues in coin. 10 further the
movement in the direction Of resumption he
stated that he was in favor Of Increasing the
specie producing revenues OF the country and
of boarding the gold. He was also III favor OF
requiring the national banks to hoard the gold
received from interest on bonds and allow them
to issue their currency. tie did not believe III
compelling the government to do cverythng
but that the banks should be required to help.
The President remarked that 1t would be ne
cessary to consider another fact, that the cir
cumstances of the late panic had not strength
ened American securities IN the eyes OF the
capitalists of the Old World; that this applied
particularly to railroad securities. Several i'm
portant roads, be said, are now in arrears tor
payment Of interest, and the suspension OF ope-
ratiops on new enterprises of this kind all tend
to increase the distrust. With this source of
supply cut off he thought those directly or in
directly interested in foreign capital would be
cramped at first, but would be better Oft 10 the
end as it would confne operations more within
the bounds of means at home
The President gave very hopeful view OF
the manufacturing and commercial prospects
of the country as compared with those OF the
Old World. In the latter IN the production of
iron and its manufactures the tendency OF quail
ity is downward, and cost of production up.
wards. He thou ght that the day Of successful
competition with the iron manufactures OF Eng
land was at hand, and while we will import less
we will begin to export, all of which will act
correspondingly in favor of the United States
bv bringing the balance of trade nearer to US.
The President believes in the skill, enterprise
and industry of the American people, and
thinks that financial policy in accord with
their interests, not in their local sense, but in
the broader spirit Of competition with the world
at large would produce wonderful results:
In speaking about the action of the House
of Representatives last Monday on the $500
900, 900 bill, the President remarked that the
des gnatiou of a specific amount as the limit
of currency circulation would effect nothing,
and that it was impossible to decide ID advance
Of practical test what amount was required
to accommodate the business necessities Of the
country. He thought that this could only be
attained by free banking under proper reguIa-
tious especially in the matter Of redemption IN
coin. The President believes that free bank
ing as proposed would regulate the amount of
currency 10 circulation so as to meet the neces-
sites of business, whatever that might be, and no
more, for the reason that banking ventures