Year: 1874

The Boston Journal of last FRIDAY contains
tn" following:


'A gentleman from Boston called upon Pres
ideut Graut Oh Monday last to thank him for
his veto message and the beneficial effect 1t had
excrted upon the finances Of the country at
home and abroad, when the report Of Mr.
William Gray of his Interview with the Presi-
dent was made the subject of conversation. The
President remarked that MIR. Gray had given a
yery correct impression of the interview, al
though it was not expected that 1t could have
been reported in the precise language. He
said as to the original legal tender acts, they
were not now open for consideration, nor even
criticism; that when they were adopted they
were adopted by loyal men Tor the salvation OF
the country, and with them the war had been
successfully carried through, and it was ouly
with that success, aud the results growing out
of it, that We had any country, or currency
either, to regulate. This, the President said
was the point that he himself had uppermost
10 his mud, and which he Intended to inn
press upon MIR. Gray aud those be represented.


On the question of using the reserve for the
purchase of long bonds, he said that what he
wished particularly to present was the fact
that as taxattou was then producing revenue
iu excess OK expenditure, and still the national
crcdi, abroad aud at home was not directly
strengthened by that fact, be had fixed upon
the policy of buying, or, IN other words, pay
ing the loug bonds, for the reason that this
improved the credit of the uatlOn wherever
these bonds were held, which extended through
out the iuaucal world; and the bonds, more
over, themselves were then overdue iu one.
sense, as they had then become payable at the
option Of the goveroment aud the government
having surplus OF revenue this option TO pay
btcaue legal obligation.


The President further said that he was iu favor
Of going further than Mr.. Gray or his commit
tee had suggested, and it Was merely following
out the same, line ofpolicy. He said the legal
tender acts themselves should now be repealed;
they had worked out their whole office; they
had carried the country through the war, and
were no louger necessary, aud he hoped that
Congress, during Its present session, would re-
peal all the legal tender acts, such repeal to
take effect Jauaury |. 1875, and that thereut-
ter all contracts should be made on a gold basis.
He said ii would seem that this could be done
without any disturbance of commercial or
fnauclal interests Of the country, aud once
accomplished, ali temptation to Initiation was
endcd.


As 10 the taking away from New England
the excess of bank circulation, he said that 1t
really amounted to nothing. The banks from
the East were now returning their clrcu 'atl"n
and withdrawing their bonds much more rap
idly than there was any demand from the West
aud the South for the circulation. He thought
that the figures would show within the past
few mouths that more than double the crcula-
ton had been returned from the East than was
asked for by the South and West. He said
that he did not thiuk the Currency bill, if he
had signed il, would have produced imitation III
the preseut condition of the country, as there
was no demand for additional currency, aud no
use for large proportion of what we now had;
but the danger was in the future, aud it was
step 10 the wrong direction, that any Increase
oil lrredeelnable paper would it lure vltally the
national credit, while on the other hand an uu-
limited issue of redeemable currency could do
no harm. He was 10 favor of free banking, but
with it, and as an nsepcrable accompaniment,
he insisted that we should have redemption,
and he was willing to give to the West aud
South free banking based on redemption, and
this he wished and had taken pains that his
friends in those sections should understand


The President said he was in constant re-
ccipt of communications from business men,
BANKERS aud public men at the West and South,
expressing on the part of the writer's their
original anxiety for the passage OF this bill, Or
some similar measure as a means or relief at
the present time, but nearly all of them assur-
ed him that the effect of the message had been
to restore confidence and give permanence to
the future course of the Government, that was
fully as great relief and more satisfactory to
business interests .s


He further SAID that while his commuuca-
tions from New York and the East were almost
all in approval OF his course, the action OF the
South and West was nearly as unanimous, and
from all this ho hoped the very best results to
the country, and very likely the benefits would
far exceed the expectations Of any one. The
President seemed as decided in reference to his
future action as ho had been 10 the past. lie
expressed the greatest kindness to all parties,
especially those who might have felt dlsap-
pointed at the course which duty had com-
PEELED him to take.