The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1874-06-19
THE CURRENCY QUESTION.
An Elaborate Ex pres~ion Of the View
OF the President On our National
Finances A speedy Return 10 SPe-
rte Payments Recon- nended.

Of the President ON our National
Finances speedy Return 10 SPe-
rse Payments Recon- mended.
ITO the Associated Press.
WASHINGTON, June Ex-senator Jones has
obtained permission Of President Grant 10
publish the following memorandum, pre-
pared by the latter, expressing his views
upon financial questions:
i believe IL (says the Presidency high and
plain duty TO return 10 specie basis ut the
earliest practicable day, not only in c0mpli-
ance with legislative and party pledges, but
as IA step Indispensable 10 lasting national pros
perity. | believe further that the time has
come when this can be d0le, or at least be-
gun, with less embarrassment 10 every
branch of industry than at any future time,
after a resort has been had to unstable and
temporary expenditures 10 stimulate unreal
prosperity and speculation on any basis
other than coin as the recognized medium OF
exchange throughout the commercial world.
The particular mode selected TO bring about
a restoration Of the specie standard il not OF
80 much consequence ~ that some adeg uate
plan be devised "a time fixed when the cur
rency shall be exchangeable for coin At par,
and the plan adopted sad riRdy adhered TO.
II H. not probable that any legislation sug-
gested by me would prove acceptable 20 both
branches of Congress. and indeed fail dis
cussion might shake my own faith in the de-
tails of any plan | might propose. | will,
of the action which seems 10 me advisable,
the financial platform on which | would
stand, and any departure from which would
be In spirit OF concession and harmony in
reference TO conflicting opinions:
/. | would like to see the legal-tender
clause, so called, repealed, the repeal to take
effect AT future time. say July !, 1873. This
would cause all contracts made after that date
| for wages, sales, ETC.. tG be estimated in coin.
/ Ii would correct our notions of values. The
| specie dollar would be the only dollar knewn
n the measure OF equivalents. When debts
afterward contracted were paid in currency,
\ instead of calling paper dollar "A dollar.
and quoting gold at 80 much premium, we
should think and speak Of paper rs at 70
much discount. This alone would aid greatly
in bringing the currenciee nearer together at
pr.
2. / would like 10 see provision that. at
a fixed day, say July 1. zo16. the currency
issued by the United States should be ne
deemed in coin or on presentation to any as-
-istant treasurer, and that all currency so re-
deemed should be Cancelled and never reie-
sued. To effect this il woult be necessary TO
authorize the issue of bonds payable in gold,
bearing such interest would command
par IN gold, TO be put out by the Treasury
only in such sums as should from time 10
time be needed fer the purpose of redemp-
/ ton.
Such legislation would insure a return TO
sound financial principles in two years, and
would. in my judgment, work less hardship TO
the debtor inter 4 than il likcyto come from
putting off the day OF final reckoning. Unjust
be borne in mind, too, that the creditors in
tere-t had it, day Of disadvantage also when
our present financial system was brought in
| by the supreme needs Of the narion AT that
time. would further provide that from and
after the date fixed for redemption. no bills.
whether of national banks or of the United
StafA rain nnI IN 70 ho ~
changed for new bills, should be replaced by
bills of less denomination than ten dollars,
\ and that in one year after resumption all
I bills of less than five dollars should be with
drawn from circulation. and In two wears all
bills of less than ten dollars should be with
drawn. The advantage Of this would he a
strength given To the country against
the time of depression resulting from war,
failure of crops or any other cause, by keep
ing always in the hands Of the people a large
supply Of precious metals. With all small
er transactions conducted in coin, many
millions of II would be- kept in constant use
and ofcourse prevented from leaving the coun-
try. Undoubtedly a poorer currency will al
ways drive a better out Of circulation. With
paper legal tender an id at discount. gold
and silver become articles Of merchandise as
much rs wheat or cotton. The surplus will
find .he best market IL can. With small bills
in circulation there j. use Cor coiu except to
keep in vaults of banks to resieem circulation.
During periods OF great speculation and APP
parent prosperity there is little demand for
coin. and then IL will flow out to a market
where II can be made to earn something. which
il cannot do while lying idle. Gold, like any.
thing else, when not needed becomes a sur
plus, aud. like every other surplus, IL seeks "A
market where II can find use. BY giving
active employment TO coin. however, its pres
ence. il seems 10 me, will be secured, and
panics and depressions, which have occurred
periodically In times Of nominal specie
payments, If they cannot be wholly pre-
vented, can. at least. be greatly mitigated.
Indeed. question whether IL would have
been found necessary TO depart from the
standard Of specie in the trying DAYS which
gave birth to the first legal tender act had
the country taken the ground of no small
bills rs early a. 1850. Again, would pro-
vide an excess of revenue over current ex-
penditures. | would do this by rigid econo-
my and by taxation where taxation can best
be borne. Increased revenue would work
constant reduction of the debt and interest.
and would provide coin to meet the demands
Of the Treasury for redemption Of its new
and thereby diminishing amount of bonds
needed for that purpose. All taxes after re-
demption begins should be paid i'm coin or
United States notes. This would force re-
demption on national banks. With meas
ures like these, or measures which would
work out such results, | see no danger in
authorizing free banking without limit.
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