FROM A CARTOON BY THOMAS NAST IN “HARPER’S WEEKLY,” DECEMBER 27, 1879
GENERAL GRANT’S SERVICE TO SOUND MONEY
THUS matters stood up to the inauguration of President Grant. Early in his term was passed the “act to strengthen the public credit,” with its courageous declarations that “the faith of the United States is solemnly pledged to the payment in coin, or its equivalent, of all obligations of the United States not bearing interest, known as United States notes, and of all interest-bearing obligations of the United States.” The final clause was subject to a few proper exceptions; but coin was then held to mean gold, and the Government thus stood committed to establish its monetary system, as well as to discharge its debts, upon the basis of other advanced nations. General Grant as President brought to the solution of financial problems much of that grim, hard sense which served him so well in the field. In his annual message of 1869 he urged resumption of gold payments, but added:
BY INFLATION YOU WILL BURST
UNCLE SAM: “You stupid Money-Bag there is just so much Money in you; and you can not make it any more by blowing yourself up!”
LET WELL ENOUGH ALONE, AND DON’T MAKE IT WORSE
Money is tight, but let it recover itself naturally, and then it will stand on a Sounder Basis.