The surplus will seek
a foreign market as will any other surplus. The balance of trade has
nothing to do with the question. Duties on imports being required in
coin creates a limited demand for gold. About enough to satisfy that
demand remains in the country. To increase this supply I see no way open
but by the Government hoarding through the means above given, and
possibly by requiring the national banks to aid.
It is claimed by the advocates of the measure herewith returned that
there is an unequal distribution of the banking capital of the country.
I was disposed to give great weight to this view of the question at
first, but on reflection it will be remembered that there still remains
$4,000,000 of authorized bank-note circulation assigned to States having
less than their quota not yet taken. In addition to this the States
having less than their quota of bank circulation have the option of
twenty-five millions more to be taken from those States having more than
their proportion. When this is all taken up, or when specie payments are
fully restored or are in rapid process of restoration, will be the time
to consider the question of "more currency."
U.S. GRANT.
EXECUTIVE MANSION, _Washington, May 12, 1874_.
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