New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-14
pREs1DENT GRANTS THEORIES.


SIGNIFICANT COMMENTS IN wALL-ST.-HIs FINANCIAL
ExPEDIENTs RIDICULED BY PROMINENT REPUB-
LICAN BANKER.
President Grants views on the recent panic
AZ impaired to an agent the Associated Press, were
the subject OF general discussion in Walst yesterday
TRIBUNE reporter sought several bank officials for the
purpose of asceTtaling their views on the Presidents
theories. One gentleman, prominently connected
with the Clearing house, Republican, and Presi-
dent OF one Of the most conservative banks
in Wal-st, said that he could scarcely believe
that President Grant had made the statements attrib-
uted 10 him. II he had given utterance to these ideas
he was certainly wild the subject OF the remedy TO ne
applied in checking correcting the EVIL he had under
consideration Referring 10 the published reports OF
President Grants statements the bank officer said that
the right In his declaration that the recent
panic was different from any that had heretofore
occurred this time prosperity being the characteristic
of the country instead Of adversely. The President
had claimed that there was moral n not real RELIEF IN
the Governments purchase of bonds. The speaker con-
sdered that there relief OF any KIND, lnasmuch
as the money disbursed in this manner by the Govern
ment into the Golfers OF the savings banks where
they we're boarded until demanded by their depostofs,
thus practically Withdrawing them from circulation.
Ii was untrue that there was an appreciation
Of the legal tenders to about par IN
silver II such the case why
did not silver find its way into crculaOn The fact is,
silver is worth from two to four cent more than
ereenbacks There was about s4O,OOOOOO worth Of
fractional currency in circulatiOn-more than ever
listed when silver was a circulating medium. and fully
enough to answer the requirements OF the community
hut when President Grant spoke Of the coun-
try's ability 70 absorb between S20O,000,0O0 and
$500 100000 he was simply wild Silver is not legal
tender for more than g. and when the finances Of the
country were specie basis, 1t was regarded de-
based coin. He concurred with the President the
desire 70 return specie basis but referring 10 the
Presidents statement, that II "he were now engaged
in writing his annual message TO Congress no would
recommend positive authority TO reissue the sH,-
600 600 reserve" the bank officer said that he could
hardly believe thatPresdent Grant had given utterance
TO such statement. II he did he had certainly
dered from the fixed purpose he had in mind on the
| memorable Sunday morning when he was in NewYork
consulting with the bank officers to the best measures
TO take checking the panic Then he positive IN his
determination TO issue the The speaker had
recommended that no additional issues be made, as
the banks HAD improvised a sort OF currency
| among themselves for their accommodation.
Whatever advantage the OF the might have
done then IL could not possibly be Of any permanent
value now In addition, 1t strangely Inconsistent
with the Presdens views the subject OF the resump
ton Of specie payments. He proposes to return TO
specie basis and the face of his proposition is
! sues an additional amount OF s440OO,OOO In ire
dee,nable paper money. This simply wild. Prices
would Immediately rise and new era Of imitation and
/
,led tbe idea repeating the clause relating 10 the
el reserve OF the banks for the protection OF deposi
,r Repeal this clause and the result would be that
! lie hanks would have no reserve, with what
dect IN The event OF crisis can readily be Imagined.
We agreed with the President respecting the prohibition
81 rsf on deposits, but surprised at the idea OF
- Post-Cniee bank allowing per cent. with
| resnect 10 the establishment OF PostOhee Dank.
m he oDerated by the Government the idea was ln-
| nracficaLle There we're already many more banks
n ms country than requisite All that was heces-
sary now wac 20 comply with the requirements OF the
National Banking law, and any person eOuid create
bank and ss ue the specified amount VI notes "IhVus
they smight do no other banking pusl-
meas In addition while the President proposed 10 pro
hbt payment by other institutions or interest," ON u
posts, the POstOfice Bank was 70 pay per cen u.
The result OF such arrangement as tnat Nouu pe "
make the minimum rate or interest -FOUR per .en, I
capitalist having any money Whlcn ne couu W. ii
10 better advantage than at four per cent WOuu
II In the "Post-Ohoe Bank" When he could OBTAIN y
per cent or more elsewhere however, ne Woulu uIdn
II out: Could the Government expect 10 W
better than corporate private bankers C0un 10 loi
, stan runs OF pancsf Again, how was the GOIeihnen
% obtain the money wheIewith 10 pay the interest,"
Did propose TO lock the deposits up In It's vaults OF &,
into regular banking business, discOuhtlh4
paper, etc III IL did latter, the
, result would be most disastrous Defslcation-
! frauds, " wildcat operations OF all kinds
would characterize the management OF its affairs. IL
addition, AZ otherwise successful. 1t Wond be grea
pOliticsl power IN tho hands 0i any ton