Year: 1874

WASHINGTON, June ..


SENATOR JONES has obtained permis-
sion from President Grant to publish the
following memorandum prepared by the
latter, expressing his views upon the
financial question. The President says !:


I believe it high and plain duty to return
to a 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
ther, that the time has come when this can be
done, or at least be begun, with less embar-
rassment to every branch of industry than at
any future time, afer resort has been had
to unstable and temporary eXpedients to slim
ulate unreal prosperity and speculation on
basis other than coin, the recognized medium
of exchange throughout the commercial world.
The particular mode selected to bring about
restoration of the specie standard is not OF so
much consequence as that some adequate plan
be devised, a time fixed when the currency
shall be exchangeable for coin at par, and
plan adopted and rigidly adhered to. it's not
probable that any legislation suggested by me
would prove acceptable to both branches of
Congress, and, indeed, full discussion might
shake my own faith in the details of any plan
might propose.


I will, however, venture to state the general
features of action which seem to me advisa-
BILE, the financial platform on which would
stand, and any departure from which would
be In spirit or concession anu uaTluOHy Ill
Difference to conflicting opinions:


1. would like to see the legal tender
clause, so-called, repealed the repeal to take
effect at some future time, say July l, 1879.
This would cause ali contracts made after
that date for wages, sales, ETC., to be estl-
mated in coin it would correct our notions OF
values the specie dollar would be the only
dollar known as the measure of equivalents.
When debts afterward contracted were paid In
currency, instead of calling paper dollar
dollar and quoting gold at SO mnch premium,
we should think and speak OF paper as at SO
much discount. This alone would aid greatly
in bringing the two currencies nearer together
at par.


fixed dav, say July 1, 1876, the currency issued
by the United States should be redeemed in
coin on presentation to any yassistant-treasurer,
and that all currency so redeemed should be
cancelled and never reissued. To effect this it
would be necessary to authorize the issue 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 redemption.


Such legislation would insure a return to
sound financial principles in two years, ana
would, in my judgment, work less hardship 10
the debtor interest than is likely to come
from putting off the day OF final reckoning.
Tt must be borne in mind, too, that the cred
itor interest had its day of disadvantage also
when our resent financial system was brought
in by the supreme needs OF the nation at tne
time.


would further provide that, from and after
the date fixed for redemption, no bills,
whether of national banks or of the United
States, returned to the Treasury TO be ex-
changed for new bills, should be replaced by
bills of less denomination than ten dollars,
and that in one year after resumption 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 advantage of this would be the strength
given to the country against time OF depres-
sion resulting from war, failure of the crops,
or any other cause, by keeping always in the
hands of the people large supply OF pre-
cious metals With all the smallar trans
actions conducted in coin, many mill
ions of it would be kept in con-
slant use, and, of course, prevented from
leaving the country Undoubtedly poorer
currency will always drive the better out OF
circulation. With paper legal tender and at
discount, gold and silver become articles OF
merchandise as much as wheat or cotton.
The surplus will find the best market IL can.
With small bills in circulation there Is no use
for coin except to keep it in the vaults OF
banks to redeem circulation. During PERIODS
of great speculation and apparent prosperity
there is little demand for coin, and tnen u Il
will flow out to a market where II
can be made to earn something. which y