The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1873-10-16
rHE PREsIDEEf OK FINANCE.


expressed in recent conversation.
He thought the panic generally
through the country differed essen
TALLY both Ia cause and effect from
any similar event Of which he had
knownas 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 ther banks
withiit, orlspend It In the 1ostliber-
al manner, but now the currency,
instead OF being depreciated, is actu-
ally becoming daily more valuable.
In response to inquiry he said, he
thought he saw in passing events the
first steps toward resumption, for the
reason that panics generally occur
when the country lacks prosperity,
such as from the failure of crops, ov-
er purchases from abroad, &c. In this
instance the panic has occurred in
the midst of the greatest general
prosperity. The aid recently render
ed in the purchase of an unusually
large number of bonds was not SO
much real as moral. The fact is, the
President said, the money corpora-
tions Of the country had, become
stampeded, 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 coiise-
quences to the country more fatal.
As it was, he really believed the eff
feet was going to be be beneficial in
many ways to the country at large,
though the cost to some individuals
deserving of a better fate may be Sc
rious. A return to specie basis can
never be effected except by a shrink
ing of yallles. This shriaksge has
now taken place. Disasters to indi-
viduals have already overtaken them,
and he sincerely hoped the advantage
might be retained, in order to reach
the solid financial basis nTS
Already currency has appreciated
to about par with silver. He wonder
ed that silver is not now -pouringout.
When this should take place, his the
ory was that the country could absorb
from two to three hundred million of
it. This would prove great benefit
in several ways. 1t would supply
market for number of years for the
product of our mines, now becoming
a drug. 1t would take{ the place of
forty millions Of fractional currency, |
about the amount that experience has
proven to be necessary for the trans
action CT business, and Will become
the currency which wilt be 1ioarded
in small amounts. He believed that
silver, once more in circulation,
greenbaeks. would never be at a dis
count foFsiIver. All fluctuations nom |
that point would be in appreciation
Of the value of our paper money.
AS to legislation, the President
said he had thought much upon the
subject and If ne were now engaged in |
writing his annual message. TO Con-
gress, he should recommend the posi-
tive authority to reissue the forty-four
millions reserve; free banking law,
with the same protection to biII-hoIC-
ers as now; a repeal of the clause re-
outings reserve for the proteetioh |
Of depositors; a. percentage Of other
reserve to be kept 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 gold interest
paid to banks on their bonds held by
the Treasurer ofsthe United States for
the protection Of bill holders. He
also favored an absolute prohibition
to the payment ofinterest on deposits.
The President did not contend that /,
he would be right in these recommen-
dations but theyembodied theoviews (.
Of which careful defaIeatioa had
brought him. There was no question
but that much demoralizing and in
MISREPRESENTATION and gambling were
caused by the sccumulatioH Of capital
in large ceniers by the payment or
interest on deposits, during a portion
of the year, when money is not re-
quired for moving produce. This
leads the country bankers, merchants,
and others to deposit in city banks,
principally in New York, to make
this money earn something during
the period when they do not wish to
use it Banks paying interest on de- !
posts can not afford TO hold money I
idle; hence gambling in fancy stocks,
millions Of which SIS an Investment
would not support family even in
the most economical manner, the
building Of railroads that are not
wanted, and which can not for years
to come psy the running expenses,
etc. Sach gambling and speculation
had, he trusted, received a blow from
which they never wonld recover.
The President said that unless his
mind should undergo change he
world recommend a Post-ofice Bank.
This would give an Institution in
which everybody would have great
confdence, within the reach Of every
one who can approach a money order
postofice. Heshould recommend the
payment Of 4 per cent, TO depositcrs
and the conversion Of deposits either
into outstanding United States bonds
or into new A per cent. bonds, aud
the taking up Of a corresponding
amount of those outstanding. j