The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-06-09
THE PRESIDENTS PLAN.

THE PRESIDENTS PLAN.
GRANTS VIEWS on THE FINANCIAL QUEs-
IIoN-THE TIME COME FOR RESUMPTION
HOW HE WOULD Do THIS BEsr DocU-
MENT.
WASHINGTON, May 5.-Senator Jones has
obtained permission of President Grant to
publish the following memorandum pre-
scented by the latter, expressing his views on
the financial question: al believe it," says
the president "a high and plain duty
TO return to specie basis at the
earliest practicable day, not only In
compliance with legislative and party
pledges, but as a step Indispensable to
lasting national prosperity. l believe fur
Their that the time has come when this can
be done or at least begun with less embar-
rasment to every branch of industry than
at any future time, after resort has
been had to unstable and tenn
pOrary expedients TO stimulate un-
real prosperity and speculation on basis
other than coin as the recognized
medium of exchange throughout the COM
mercial world. The particular mode Sc,
lected to bring about the restoration OF
specie standard is not of so much conse-
quence as that some adequate plan be de-
vised and a time fixed when currency shall
be exchangeable for coin at par, and the
plan be adopted and rigidly ad-
anv legislation suggested by me
would prove acceptable 10 both branches OF
congress, md indesd full discussion might
shake my own faith in the details OF any
plan L might propose. L will, however,
venture to state the great features of an
action which seems to me advisable and
the financial platform on which would
stand, and any departure from which would
be in a spirit OF concession and harmo-
opinion. FIRST, would like to see the legal
tender clause, so-called, repealed, the repeal
to take effect at future time, say July LIST,
1870 This would cause all contracts made
after that date for wages, sales, etc., to be
estimated in coin, 1t woGld correc- our no
tions of values. The specie dollars would
he the only dollar known as measure OF
equivalents. When debts afterwards
contracted were paid in currency:
instead of calling paper dollar dollar and
quoting gold at so much premium, we would
think and speak of paper as at
! so MUCH DISCOUNT.
This alone would aid greatly in bringing the
eurrancies nearer together at par. Second,
| would like to see a provision that at a
fixed day, say July 1, 1876, the
currency issued by the United
States should be redeemed in coin bv
7
| that all currency so redeemed should be
cancelled and never re-issued. To OBJECT this
/ it would be necessary TO authorize the issue
| ST bonds payable in gold, bearing such in
terest 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 would
| in nv Judgment, work less
| hardship to the debtor interest.
than is likely to come from putting off the
| day of final reckoning. 1t must be borne in
| mind too that the creditor interest had its
day of disadvantage also when our present
| financial system was brought in by the
supreme needs of the nation. L would further
/ provide that from and after the date fixed
| for redemption, no bills whether of the ma
tional banks or of the United States, returned
! to the treasury to he exchanged for new bills
should be replaced by bills of less demon
inatiOn than ten dollars, and that in ont
year after resumption all bills of less thar
| Ave dollars should be Withdrawn from circu
LATHAM and in two years all bills of less thar
ten dollars should be withdra wn
The advantage of this would be thestrengtl
gi zen to the the country against a line of de
preston resulting from war; a failure of tn,
crops, or any other cause, by keeping alwav
in the haads of the people large suppl,
OF the precious metals with all smaller
transactions conducted in coin. Many mil
lions of it would DO kept ..
IN CONSTANT USE,
and of course prevented from leaving th
country. Undoubtedly poorer currenc,
will always drive the better out of circula
ton. With paper legal tender and at
discount, gold and silver become articles O
! merchandise as much as wheat or cotton
The overplus will find the best mar
ket that it can. With small bills il
circulation, there is use fo
fol
TO redeem the circulation. During perio,
of great speculation and apparent prosperit,
. there is little demand for coin and then
will flow out to market where it can bg
made to earn something, which it canno
do while lying idle. Gold, like everythin,
else, when not needed, became surplus
and like every surplus seeks market wher
it can find one. By giving activ
employment to coin, however, its presenc
seems to be secured and panics and. depres
. SONS, which have occurred periodically Il
times of nominal specie payments, ii the
! greatly mitigated. Indeed, / question
, whether il could have been foun
! necessary to depart from stand
ard of specie in the tryin
! days which gave birth to the first legal ten
der act, had the country taken the GROUND
of no small bills as early as 1850. Again
would provide an excess of revenue owe
, the current expenditures. i would do thi
by rigid economy and taxation where taxa
: ton can be best borne. Increased revenu
. would work a constant reduction of tn
: debt and interest, and would promot
4 coin TO meet the demands O
the treasury for the redemption of il
notes, thereby diminishing the amount
banks needed for that purpose. ALI taxe
alter redemption begins, should be paid i
Q coin or United States notes. This woul
force redemption on the national bank
: With measures like these, or measure
? which would work out such results, i see n
: danger in authorizing free banking withol
: limit.
a The London Times keeps ten correspond
: ents in Paris, and has concluded ali arrang
ment with the International Telegraph
; Company, in virtue OF which it will