Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-10-13
TWO CENTS.
NationAl FINANCES

TABLIsHNEsT OF A POST OFFICE RANK.
President Grant has been interviewed on the
financial situation by the Washington agent OF
the Associated Press and said the late panic
differed essentially, both in cause and effect
frOm any other similar event OF which he had
knowledge Heretofore distrust has been occa-
stoned by the currency in circulation, and every
one in possession OF cure ncy would rush 90 the
banks with IL or spend IL in the most liberal
manner. But now, currency, instead OF being
deprecated. is actually becoming daily morc
valuable. The President thinks be sees In pass
ing events
THE FIRST STEPS TOWARDS RESUMPTION,
for the reason that panics generally occur when
the country lacks prosperity. such as from tn
failure OF crOIS,Over- purchases from abroad. g.
In TINS instance the panic has occurred i'm ths
midst OF the greatest general prosperity. our
exports since the beginning of the present fiscal
year have exceeded our imports, that, too, at y
time when comparatively no cotton, the largest
single item Of exports, was not moving. Every
thing we produce Is I'm great abundance. ami
the demand for IL abroad L. beyond the supplv
We have to spare. Our manufactures are pros
porous, and many articles which have been i'm
ported are, 10 great extent, not only being
produced at home. but We are actually com
le,,ing IN me supply OF foreign markets. The
unusually large number of bonds was not so
much real As moral. 1.-THE fact is" said the
President, "the money corporations of the
country had become stampeded, and in turn
startled and stampeded the whole country. Had
not the Treasury seemed 10 aid them in some
way the fright would have become more gen
eral. ard the consequences TO the country more
FATAL As IL was he really believed
THE EFFECT WAS GOING TO BE BENEFICIAL
in many ways TO the country at large, though
the cost TO some individuals, deserving of bet
ter fate, may be severe. Recurring TO the sub
jeet of specie payments the President said: a
return TO specie basis can never be effected
except by shTinkage of values. This always
works hard to a large class of people who keen
all they are worth in margins. This shrinkage
has now taken place. Disasters 20 individuals
a VA al roo d. gwrn rNanrsa
sincerely hoped the advantage may be retained
in order to reach a solid financial basis.
ALREADY THE CURRENCY HAs APPRECIATED
TO about par with silver. The wonder Is that
silver is not now pouring out"
When this shall take place" continued the
PRESIDENT, 'my theory is that the cOustry will
absorb from two 10 three hundred millions OF il.
This would prove a great benefit in several
ways. 1t would supply a market for a number
OF years for product OF our mines now becOm-
ing drug IL would take the place OF forty
millions Of fractional curroncv-about the
amount Of change that is proven to be neces-
saTy Tor the transaction of business-and will
become the currency, which will be boarded in
small amounts. With silver once more in cir
culation, greenbacks would never be at a dis
count for silver. All fluctuations from that
point would be in appreciation Of value Of our
As to legislation, the President said: Il have
thought much upon this subject, and If 1 were
now engaged in writing an annual message 20
Congress | should recommend positive authority
TO reissue
THB FoRTY-FoUR MILLIONS OF LEGAL TENDER
RESERVE;
free banking law, with the same protection 70
bill-holdeTs as now; a repeal Of the clause re-
quiring reserve for the protection of depOsi-
tors; percentage of the other reserve 20 be in
gold, and that increased IN regular ratio until
the whole reserve would be in gold. This could
be solely effected by requiring such institutions
to save the whole or large percentage Of the
gold interest paid to banks on their bonds held
by the Treasurer of the United States for the
protection of bill holders
The President further said that he favored an
absolute prohibition to the payment OF interest
on deposits. He did not contend that he would
he right in these recommendatiOns,b but thew
embodied the views which his unsded redsc-
tons had brought TO him. There was no q Ies-
ton but that much decentralization aud
INJURIOUS SPECULATION AND GAMBLING
was caused by the accumulation of capital in
large centers during portion OF the year when
money is not required for the moving of pro
ducts by the payment of Interest on deposits.
This leads country bankers, merchants and
others to deposit in city banks, principally IN
New York, 20 make this money earn something
during the period when they DO not wish TO use
Il: Banks paying interest on deposits cannot
AFFORD TO bold the money idle; hence gambling
in fancy stocks, millions of which, as an invest
ment, would not support family even in the
most economical manner; the building Of rail
roads that are not wanted. and which cannot foT
years pay running expenses, etc. "Such gam
bling and speculation continued the Presi-
dent. al trust has received a blow from which
1t Will never recover"
In conclusion the President said that unless
his mind should undergo a change he would rec
ommend
A POST OFFICE BANK.
This would give an institution in which
everybody would have great confidence, within
the reach of every one who can approach a
mOney-order post office. He should recOmmsnd
the payment of four per cent. to depositOrs and
the conversion of deposits either into Outstand-
ing United States bonds or into new four and a
half per cent bonds, and the taking up of q
corresponding amount OF those outstanding.
THE TRIAL OF Miss MINK FOR MURDER
Line Of De- eEse-AHeged Seduction Of Accused b.
The Tictim.-At the trial of Miss Mink for the
murder of DIR. Baker, at Rockland, Me, last
Friday the defence commenced. L. NJ. STAPLES
made the opening argument. He detailed the
circumstances of the prisoners connection with
DR.. Baker, Claiming that she had been seduced
by him seven years ago under promise Of mar
rage, at time her reputation was untsrnished