Year: 1874

/


our exchanges, representing the views Of Pres


ident Grant, is worthy the attention Of our


readers. 1t is dated Washington the end


inst.


No one in public life or out of it has
watched with more interest the long financial
debates than the President, and be has not
hesitated freely to express his opposition to
all schemes of imitation. He has carefully
examined each of the various plans that.have
been presented in either house, and looks up


on the question IS one which imposes upon


him very great responsibilities. He believes


that when he is called to act upon this ques-
| ton it will be his duty to carefully consider,
not only the interest Of our citizens, but also
! that of those subjects of the nations of the
Old World who. in their faith in the pcrma-
pency of our government and the rapid de-
yelopment Of our country in wealth and pop


ulation, have largely invested their means 10


our government and private securities In
| conversation respecting the pending financial
| discussion and the prospect of an imitation OF
the currency, as indicated by the recent votes
in Congress, the President remarked to-day
that any finance bill which may be passed
and sent to him for approval will be most
closely scrutinized with particular reference
to its effect on the amount of currency, as lie
is more firmly convinced than ever that ex-
pansion, except as dictated by the actual and
pressing wants of the people, would not only
be preiudicial but suicidal to their best in
terests. lie observed that the interests Of
the different sections Of a country SO extern
sve, ranging through every degree Of the
| son,i-tropieal and north temperate zones,
must in many respects differ. They vary as
the productions of the soil and as the pursuits
in which the inhabitants are engaged, as
whether they be agricultural, manufacturing,
mining, commerce, or fisheries, each const-
tuting a specific source ofwealth. There may,
again, be difference, he said, within any
one of these general sections, as cotton forms
the staple of the South grain of the West;
the mining and manufacturing employs the
people of Pennsylvania and Maryland; com.
merce and agriculture, New York; and gen
eral manufacturing, New England. But, be
remarked, there is one thing necessary to all,
and that is a we'll l-balanced and wise Fl nancial
policy. In the absence of this every industry
is paralyzed, and the people, unable to apply
their skill and enterprise, are soon impover
ished. He said that anything but move
| toward specie payments, be its accomplish
ment near or remote, would be unwise, and
no matter what might be the embarrassment
of the moment it would not be long before
the country would be relieved of the present





off if no unwise step is now taken. Initiation,
he thought, would be a step backwards, and
there were no attendant circumstances, such
as war or famine, which would seem to JUS
tify such measure now. Initiation, he said,
would be to increase the responsibility of the
government, and he could not lend his aid to
that when there appeared to him no reason
| for such step. The President said that
any increase of the volume of the legal ten
ders would be imitation and could not be
calmly contemplated He does not think


that free banking, if properly guarded, es-
pecially in the matter Of redemption, would


be initiation. He admitted that at present
the currency might be unequally distributed,


taking into consideration the population and


wealth of the different sections ofthe country,
but it was evident that the true remedy was
not to be found exclusively in legislation.
The actual necessities of any locality could
not be determined or regulated by a mere
theory which could only approximate the
probable quantity wanted. The per capita
circulation varies from about thirty-one and
one half dollars for the eastern, and about
thirteen dollars for the middle States, down
to about three dollars in the southern and
southw esteru, and two and one-haf in the
western States. In proportion to the increase
of industry must be the circulation of money,
but it should be only money based on compe-
tent security to warrant its stability in the
matter of value. The President is of the
opinion that an nsuficiency in the volume of
the currency should not be met by an initiation
of the circulation of government paper. He
thinks that the whole question could be best
solved by the authorization of free banking
with an assurance of redemption. The es-
tablishment of banks under the system, he
thinks, would be only as needed, and the cir
culation would also be localized and would
better answer the demands of any particular
section. The present system of free banking
would increase the facilities of trade, and the
people, instead of boarding their money,
would avail themselves of the new banks for
the safe keeping of their ready means. Ex-
change would also be greatly facilitated.
That banks keep pace with the necessity of
trade is shown, he said, in the fact that at
the time of signing the treaty of peace be-
tween the United States and Great Britain,
there was but one bank in the country.
Fifty years after there were about 800, and
at present there are nearly 200O. The Pres
ident remarked that, so far from free bank
ing, rightly guarded, resulting in an excess
of circulation, it would be limited by the ex-
acting law of supply and demand as applied
to currency, and by the tax on circulation
which would prevent the issue of more notes
than could be proftably employed In fact,
he said, six national banks have drawn in
their circulation and redeemed their bonds,
and are now banking without circulation,
finding that more profitable. The President
believes that general law, defining a policy
and laying dowing the proper limitations,
would be sufficient. The people then within
the bounds of the law could fix their circuia-
tion to meet their own necessities. 1t is not
improbable that the President may yet see
proper to send message to Congress, en-
bodying his views on the subject of the
finances.