The New York herald., 1875-12-27
GRANTS MESSAGE.
ENGLISH OPINION OF THE AMERICAN PREsI-
DENTS EXECUTIVE PosrrIoN-THE QUESTIONS
0p f,rtpA ANrr NAM rAau

DENTS EXECUTIVE PosITIoN-THE QUESTIONS
or CUBA AND HARD CASH.
From the London Times, Dec III
the political Importance Of President GRANTS mes
sage TO Congress will be measured perhaps too ex
cusvely Europe by the purpor Of hIs remarks upon
the Cuban difficulty but il is certain that no possible
disruption Of friendly relations between Spain and the
United States could equal in mischevous activity an
ill-considered decision Washington the financial
perpemties OF the Union The Presidents declaration
that he adheres 10 "hard money! interests many
thousands Of people IN Europe who have cared
TO inquire into the wrongs and rights OF the Spanish
squaoble in the Antilles American securities are
very largely held by all European communities among
whom accumulated capital abounds and nowhere so
largely in the United Kingdom Il is or ncalcuable
import to the persons thus Interested in tho
financial stability OF the United States be assured
that they have nothing to fear from wild dealings with
the national issues OF paper money from the dspo
ston of the majority Of the American people toward
the public creditor. The Presidents Message is a
formal and conclusive reieration OF the
surance which we felt ourselves entitled TO draw from
the results OF the elections in Ohio and Pennsyva-
MIA No matter what the inlationist majority
u lndeed, the majority DC now infatonist-of
the House Of Representatives may desire, the
policy OF the United States will hcnceforward
be steadily turned IN the direction Of cash payments
President Grant urges that the act of the last Congress
decreeng resumption OF specie payments little
more than three years hence should have It's consum
nation insurod by immediate legislation, and he re-
commends that after certain time greenbacks should
be made ne longer receivable IN liquidation OF debts
He also advises the OF long interest bearing bonds
instead OF the greenbacks 10 the probable effect OF
| which judgment must be reserved until we have seen
the particulars of the plan But whether this replace
4 ment be adopted or not resumption set forth
as the mark at which the financial policy OF the United
States ought always TO keep aiming That this should
be affirmed anew at the turning Of fresh page in Amer
lean politics is fact Of the highest moment to Euro
pean capitalists who are interested in the public securi-
4 ties OF the union
1t may be asked why European capitalists should be
so concerned 10 know whether Americans in their
mesuc dealings wish TO settle their scores in honest
dollars or 10 deprecated counters The principal and
interest OF the foreign investor in American bonds
promised TO him in coln and the holder Of the United
States securities which are commonly quoted the
European exchanges would, in theory, be no of
II the Washington government recklessly issued paper
money until aman had TO pay his railway fare, used
10 happen in the Confederate States toward end of
the civil war, with whole pockctfu Of notes But it
is obvious that the stipulation TO pay the
bonds IN specie was only morally binding and
the doctrines by which relaxation Of the currency
was Justihed went far TO justify modification
OF the arrangement with the foreign creditor The
reason why so large proportion OF the American
bonded debt was held abroad was plain enough; the
interest on hvetwenties, for instance, though very
tempting TO the small capitalists of Europe not
attract Americans. who look for eight per cent
as the normal profit upon money lent; hence as the
credit OF the Union roseand IL has steadily
the dark days OF lS63-the bonds passed more and
more out of American hands and into the hands Of
European investors This circumstance gave the hnan-
cia quack doctors second string to their bow. They
advocated schemes by which the currency should be
made and kept equal TO the wants of trade' in
erest, they said against the debtor class - but
they nveighed with almost equal yehemence against
the ''tributen that drained out Of the coun-
try to gorge the foreign bondholder The
The one demand was inseparabiy bound up with the
other; II the debtor cass' had relieved from the
share of its obligations by the duon of the currency
the creditors would have insisted in their turn the
reduction of the 'foregn tribute" No could have
contended with any force that the bargain with the
bondhoders was rigidy binding when every contract
in the country had been suddenly altered by a
mutation in the medium Of payment But the extnc
on OF imitation schemes IN the United States by the
conclusive verdict OF the autumn elections has placed
the bonds a. forriorl In 6rmer position than
The effect is already apparent the solidincation Of
American credit, and viii be more conspicuously SO
when the resumption OF specie payments has really bo-
gun The Presidents scheme is that the Treasury
should be authorized TO withdraw "greenbacksn from
circulation at the rate OF 81 600 900 month replacing
them by 500 bonds bearing day interest but
II is also recommended that gold should be accumu-
lated for the 1na redemption ''by increasing the
revenue or curtaiing the expenses, or by smultane
ously adopting both these courses" " No one can
quarrel with the latter part OF this advice though il ap
pears 10 belong to counses of perfection AS the
former part we can say very little at present. but
encouraged to hope for excellent results from
contemplation Of those which have already been
achieved since the American people has shown deter
mination 10 30 forward in the difficult path toward
which it turned its face resoutely years ago The
Presidents Message calls upon Congress step
in advance in dealing with the currency, ana tho
successful manner in which the debt has been
dealt with is sufficient encouragement No
doubt it is not easy to get rid OF nconvertbe paper
money representing some $3.50 600 900; but the gov
ernment Of the United States has prapped with greater
financial problems and solved them About slx years
ago the Treasury al Washington issued statement
giving the debt bearing interest g. 100 COO
in November last the debt bad been reduced TO
81, 100, 00O, 000 The whole financial energies
OF the government will be tasked by business OF re-
sumption. and until that be concluded Mr. Bristow or
his successors can hardly hope to dispose Of their
and half per cent bonds at par Any further dimnu-
ton Of the six per cent bonded debt must for the pres
en therefore, proceed by the simple calling in OF the
fve-twenties for cash payment but of course every
operation of that Sort however limited tends forty
American credit and to bring the American Treasury
nearer TO the point at which the policy Of the Act Of
1870 can be carried a step further