Year: 1874

an lmHoEkunk DOCUMENT from IIeb


ident Grant.


His Views on the Financial Ques'
tlons


WASHINGTON, June Ex-senator Jonel


has obtained permission from President
Grant to publish the following memorsp-
dunn prepared by the latter expressing
his views on the financial question:


Ibetieve 1t, says the President, a high
and plain duty to return to q specie basis
at the earliest practicable day, not only
in compliance with legislative and party
pledges but as q step indispensable to last
ing national prosperity. Ibelieve further
that the time has come when this can be
done, or at least begun, with less embar'
rassment to every branch Of industry than
at any future time after resorthas been
had tounstable and temporary expedlenta
to stimulate unreal prosperity and specu-
lation on a basis other than coin as re.
cognizsd medium Of exchange through
out the commercial world. Tho partlcu.
lar mode selected to bring about the res.
toration Of specie standard is
not OF SO much consequence as that
some adequate plan be devised,
the time fixed when currency shall be
exchangablc for coin at par, and the plan
adopted rigidly adhered TO. 1t is not
probable that any legislation suggested
by me would prove acceptable to both
branches Of Congress; and indeed q full
discussion might shake my own faith in
the details OF any plan might propose.
l will, however, venture to state tho gen.
ersl features Of the action which seems
to me advisable-the financial platform
on which l would stand, and any de-
psrture from which would be in a spirit
of concession and harmony in reference
to conflicting opinions.


First-I would like 10 SEQ the legal
tender clause, socalled, repealed, the re.
peal to take effect at future time, say
July /, '75. This would cause all contracts
made after that date for wages, sales, 60,
to be estimated in coin. Itwould correct
our notions Of values. Tho specie dollar
would be the only dollar known as
measure of equivalents. When debts
contracted were paid in cur.
rency, instead Of calling paper dollar
dollar, and quoting gold at so much pre-.
MUM, we should think and speak Of
paper as at so much discount. This alone
would aid greatly in bringing the curren.
cies nearer together at par.


Second-I would like 10 see provision
that at an affixed day, say July 1st, 1876.
the currency issued by the United States
should be redeemed in coin on presents.
tion to any Assistant Treasurer, and that
all the currency SO redeemed should be
cancelled and never re.issued. To effect
this II would bc necessary to authorize
heissue Of bonds payable in gold, bearing
such interest 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 re-
demption. Such legislation would insure
a return 10 sound financial principles in
two years, and would, in my jud gment,
work less hardship to the debtor interest
than is likely to come from putting of 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 al the
time. l would further provide that from
and after the date fixed for redemption no
bills, whether Of national banks or OF the
United Estates, returned TO the Treas
ury to be exchanged for new bills
should be replaced by bills Of q
less denomination than ten dollars,
and that in ono year after resump-
ton all bills Of less than five dollars
should be withdrawn from circulation,
and in two years all bills of less than ten
dollars should be withdrawn. The ad.
vantage Of this would be the strength
given to the country against time of
depression resulting from war, failure Of
the crops, or any other cause, by keeping
always in the hands Of the people large
supply Of the precious metals. With all
smaller transactions conducted in coin,
many millions Of 1t would be kept in
constant use and Of course be prevented
from leaving tho country. Undoubtedly
q poorer currency always drives
tho better out Of circulation. With
paper legal tenders at discount
gold and silver become articles oi
merchandise, as much as wheat or cotton,
The surplus will find the best market 1t
can. With small bills in circulation


there is no use for coin, except to keep II
in the vaults of the banks to redeem cir
culatiOp. During periods Of great spec.
ulatlon and apparent prosperity there is
little demand for coin, and then 1t will
flow out to the market, where it can be
made to earn something, which it cannot
do while lying idle. Gold, like any