New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-15
THE PRESIDENTS VIEWS ON FINANCE.

LETTER TO A BANK PREsIDENT-siLvER TO suPpLf
A DEFICIENCY IN THE CIRCULATING MEDIUM.
President Grants theories OF finance during
the past few days the subject of very general
comment. The following letter, addressed TO NJ A.
Cowdrey President Of the Continental National BANK III
Nassau-st, and bearing the signature OF President
Grant will he read with interest, as it is an ocial eA
preston Of nearly the same views which he recently
defined TO Associated Press agent at Washington;
EXECUTIVE MANSION, WASHINGTON, d. C., Oct. 6, 1873,
NY DEAR Mr. CowDREY Your letter OF the 10th UT
duly received aud read. as was your previous letter
did not answer them at that time. Your last letter
however contains sentence that 1t seems proper
National banks contained in my letter to Messrs. An
thony and Clain. Nothing was further FROM my mind
than a threat. NY whole object 10 restore cont
dcnce 10 the pubic mind aud to give assurances that
The Government would give all the aid In its power
keeping in view at the same time the solyency OF the
National Treasury You, and all bank Presidents know
about thecondiiion Of your banks than can pos
Treasury, know about the financial condition Of
the Government, its ability TO render aid, &c. Than
any person disconnected with the administration oil lis
affairs know. alluded 10 the fact that the 000)OD
notes in the Treasury would be regarded as
showing that the hand to give the relief
we promise do pot believe the present panic WI
COED TO the country at large Our monetary system is
the creation Of necessity II has elasticity but IN
No one dstruss the value OF his paper dollar; on
the contrary is seized and boarded with the same
adveres The panic will call attention TO the defects
In our monetary system. and will no DOUBT lead TO
legislation to relieve the want OF elasticity ...
tbs panic has brought greenbacks about 70 par
with silver. wonder that silver Is not already coming
into the market 10 supply the deficiency In the crcula
ing medium. When 10 does come-snd predict that u
will soon-we will have made = rapid stride
toward specie payments Currency will never below
oliver after that. The circulation OF silver will have
other beneficial effects. Experience has proven that II
takes about 600 OF fractional currency make the
small change necessary for the transaction OF the busi
ness OF the country Silver win gradually take the
place Of this currency, and, further VIII become the
Standard OF values, which will be boarded In small
way estimate that this will consume from 800 100000
to S3o0Ooo0oo time of this species Of circulating
free to perform the legitimate functions Of trade.
and will tend to bring back where We
must at iaet, TO specie basis. I confess TO
desire to see limited boarding OF money. IL nsures
firm foundation 10 time Of need But want to see the
boarding Of something that has standard Of value the
world over Silver has this and If once get baez "
that our strides towards higher appreciation OF our
currency viii be rapid Our mines now producing
almost unlimited amounts Of silver and II 10 becoming
question "What shall we do with TIE suKeest here
solution that will for years and suggest
10 you bankers whether you not initiate II 70
put IL In circulation keep there until u IL nion
and then will ma other marietta The south
and Central American countries have asked W
10 coin their silver for them. There has never
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