Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1873-10-15
The Financial Situation.

The dying out of the late panic, which
threatened nore than it performed, leaves
the country once more pursuing its accustom'
ed prosperity, while ruin has fallen mainly
on those alone who built high fabrics on
basis of specnl ,tion. The country, evident
ly, longs for return to specie payments,
thinking that when they are once reached
all business will move on more solid founda-
tions. and that Wall street furries will then
be confined in their effects, more strictly to
their plice of origin.
President Grant, on Saturday, expressed
bis views upon financial matters quite fully,
to an agent of the associated press. and We
think, on the whole, they are such as the
country will be glad to see in their execu-
tive 1t is plain thai be considers return
to specie basis, as possible in the near fu-
ture, although he does not probably agree
with Mr.. Greeley's doctrine, that the ques-
ton is Of the simplest kind, and that the
way to resume is to resume"
One result of the panic is, that green
backs are worth relatively more, than at any
time in their existence before. The country
is prosperous, and its exports in excess Of
its imports, even while cotton is not moving.
Holding these views, the president thinks
that it is time to take some means which will
hasten the steps toward coin payments.
Whenever those steps are taken, there must
come a loss to a portion OF the community
by the shrinkage Of values, but this loss
will come the same, whether legislation
hastens resumption or not, for the longer
and more gradual falling of prices, woulo
but extend the result over greater time.
The president looks for the appearance oil
silver in circulation, and that while green
backs have now appreciated to nearly the
value of silver, the appearance of the latter
would be helpful toward bringing the minds
of the people to a practical realization, thai
government paper is about as "good as the
gold.''
The president said that il be were now at
work upon his message, he should recommend
positive authority to issue the forty million
greentack reserve" a free banking law,
with the same protection to bill holders as
now; the repeal of the clause requiring q
reserve for the protection of depositors, a
percentage of the other reserve to be IN gold,
and that increased gradual y, till the whole
reserve should he in gold. lie favored the
absolute prob bition of the payment OF in
terest on deposits, and We think the reasons
They were that much injurious speculation
and gambling comes from the accumulation
of large deposits during that part OF the
year when little N oney is required for NOV
ing crops, and that this accumulation is ios-
tered by the payment OF interest on deposits
for country bankers, merchants and Others,
deposit largely in city banks, those OF New
Z irk particular Y, to make their money earl
something, when they have DO immedlat''
use for it. The city banks in turn, to make
it pay, speculate in fancy stocks. The build
ing of railroads that are not wanted, and
which cannot for years pay running expen-
ses-grves rise to much gambling and spec
uI4tion which had, he trusted, received a
blow from which they never would recover.
The president thought that he would rec
ommend Post Office Bank. Ills would
give an institution in which all would have
CO. fidence, ar d would be within reach of all
who can approach money order flee. lie
would recommend such a bank to pay -four
por cent. on deposits; the latter to be con-
verified into United States bonds.
The country, we are sure, will uphold the
president in all reasonable means to bring re-
sumption nearer A determination through
out the country to resume, and full and de-
served confidence in the financial soundnes.
of the United States government, will paw,
the way for an easy return of Il gold curren
cy.