Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1873-10-17
THE PRESIDENT O.y' THE FL
.V.sJyCE.sL PROSPRCT.

The views of President Grant on current
financial questions were expressed, in sub
stance last Saturday, during conversation
between him and the agent of the New
York Associated Press. In the first place,
the President thought that the panic gen.
orally through the country differed essen
TALLY, both in cause and effect. from any
similar event of which he had knowledge.
| When such events have heretofore taken
place, distrust has been occasioned as to
The currency in circulation. Every one in
possession of currency would rush TO The
banks with IL or spend it in the most liber-
al manner. But now, currency, instead of
| being deprecated, is actually becoming
| daily more valuable. He thought he saw
in passing events the first steps toward re.
sumption for the reason that panics gener-
ally occur when the country lacks prosper.
ity, as from the failure of crops or over
purchases from abroad, whereas in this in
stance the panic occurred in the midst of
the greatest general prosperity. He believ-
ed be was correct in saying that our ex-
ports, since the beginning Of the present
fiscal year, have exceeded our imports
that, too, at time when comparatively no
cotton, the largest single item of exports,
was moving. Everything we produce is
in great abundance, and the demand for it
abroad is beyond the supply we have to
spare. Our manufactures are prosperous,
and many articles which have been import
ed are, to a large extent, not only being
produced at home, but we are actually
competing in the supply OF foreign mar
kets.
The aid recently rendered in the pur-
chase of an unusually large number of
bonds was not so much real as moral. The
fact is, the President said, the money cor
porations ofthe country had become stamp
peded, and in turn startled and stampeded
the whole country. Had not the Treasury
seemed to aid them in some way the fright
would have become more general, and the
consequence to the country more fatal. As
1t was, he really believed the effect was go
ing to be Leneticial in many ways to the
country at large, though the cost to some
individuals, deserving of better fate, may
be severe. Return to a specie basis can
never be effected except by shrnkage of
us Always hOIhS nara 10 u
largo class of people who keep all they arc
worth in margins. This shrinkage has
now taken place. Disasters to individuals
have already overtaken them, and he sin
cerely hoped the advantage might be re-
tanned, in order 10 reach a solid financial
basis. Already tho currency has appfeciat-
ed TO about par with silver. He wondered
that silver is not now pouring out When
this should take place, his theory was that
the country could absorb from 5000, 600, 900
to 100000, 600 of it. This would prove
great benefit in several ways. 1t would
supply market, for number of years,
for a product of our mines, now becoming
drug. 1t would take the place of SAC, OOO.-
900 of fractional currency-about the a.
mount of change that experience has prov
en- to be necessary for the transaction of
business-and will become the currency
which will be boarded in small amounts.
He believed that with silver once more in |
circulation, greenbacks would never be at
a discount for silver. All fluctuations from
that point would he in appreciation Of the |
value of our paper money.
AS to legislation, the President said he |
had thought much upon the subject, and if |
he were now engaged in writing his annual |
message to Congress, he should recon- |
mend positive authority to reissue the for
ty-four millions of reserve, free banking
law with the same protection TO bill-holders
as now, a repeal of the clause requiring a |
reserve for the protection of depositors, q
percentage of the other reserve to be in
gold, and that increased in regular ratio |
until the whole reserve would be in gold. |
This could be safely effected by requiring
such institutions 10 save the whole or |
largo percentage OF the gold interest paid |
TO banks on their bonds held by the Treas
urer of the United States for the protection
of bill-holders. He also favored an abso-
lutte prohibition to the payment of interest
on deposits. The President did not con-
tend that he would be right in these recon-
mendations; but they embodied the views
which his unaided reflection had brought |
to him. There was no question but that
much demoralizing and injurious specula-
tion and gambling was caused by the ac-
of capital in large centers dur
ing the portion of the year when money is
not required for the moving OF products,
by the payment of interest on deposits.
This leads country bankers, merchants,
and others, to deposit in city banks, princi-
pally in New York, to make this money
earn something during the period when
they do not wish to use it. Banks paying |
interest on deposits cannot afford TO hold |
the money idle, hence gambling in fancy
stocks, millions of which as an investment |
would not support family even in the
most economical manner; and the build
ing of railroads that are not wanted and |
which cannot for years pay running expen-
SEES. Such gambling and speculation had,
he trusted, received q blow from which |
he hoped they never would recover. The |
President said that unless his mind should |
undergo change, he would recommend
post office bank. This would give an in
in which everybody would have
great confidence, within the reach of every
one who can approach money order post
Office. He should recommend the pay
ment of four per cent TO depositors, and the
conversion or deposits either into outstand-
ing United States bonds or into new four and
ahalf per cent bonds, and the taking up of a
corresponding amount of those outstand-
ing.