New national era. [volume] (Washington, D.C.) 1870-1874, 1873-10-23

/ to y. A. Cowdrey, of the Continental Ma
tional Bank, New York city, was published
| In the New York Post of Monday:
EXECUTIVE MANSION, I
WASHINGTON, D. c., Oct. 6, 1873.
Ny DEAR Mr.. CowDREy: Your letter OF
the 10Th ultimo was duly received and reld.
a. was your previous letter. Neither required
al answer particularly. and hence | did not
answer at that time. Your last letter, how
ever, contains one sentence that il seems
proper that I should reply t.. that j. a To- an
implied threat To the national banks con-
tanned in my letter tn Me-sr~. Anthony n
Clafiin. Nothing wa. further from Eiy mind
than a threat. NV whole object was To- re-
store confidence to the public mind. and to
give assurance that the Government would
give all the all in its power, keepin. in view
at the same time, the solSency of the Ma
tonal Treasury.
You and all bank presidents know more
about the condition of your banks than | can
possibly know. In turn. /, through the See
rotary of the Treasury, know more about the
| financial condition of the Government, its
ability to render aid. &c. than auy person
disconnected from the administration of its
affairs can know. | alluded tn the fact that
the forty million reserve notes in the Treas
ury would be regarded a money in the Treas
ury subject to use, for the purpose Of showing
that the means are AT hand L. give the reliet
we promise.
| do not believe the present panic will
work to individuals half the injury it will
work general good to the country at large.
Our monetary system is the creation of ne
cessity. IL has no elasticity. but in other re
spects it is the best that la, ever been de
vised. no one now distrusts the value oi
his paper dollar !; on the contrary, it is seized
and boarded with the same ayitiity now that
the gold dollar has been in former like adyer.
sites. The panic will call attention to the
| defects in our monetary system, and will 10
doubt lead to legislation to relieve the want
| Of elasticity.
The panic has brought greenback- about t.
par with silver. wonder that silver is not
already coming into the market to supply the
deficiency in the circulating medium. When
it does come-and predict that it will soon
we will have made rapid stride toward
specie payments. Currency will never 90
below silver after that.
The circulation of silver will have other
beneficial effects. Experience has proved
| that it takes about forty millions of fractional
currency to make the small change necessary
for the transaction Of the business of the
country. Silver will gradually take the place
of this currency, and, further, will become
the standard OF values, which will be boarded
in a small way.
/ estimate that this will consume from two
to three hundred millions, in time, of this
species of our circulating medium. Itswill
leave the paper currency free to perform the
legitimate functions of trade, and will tend
to bring US back where We must come at last
to specie basis. | confess to desire o.
sea limited boarding OF money. 1t insure,
daft in of
want to see the boarding of something that
has a standard of value the world over. sill
yer has this, and if we once get back to that
our strides toward higher appreciation OF
our currency will he rapid.
Our mines are now producing almost I'M
limited amounts of silver, and it is becoming
a question, "What shall we do with it >"
suggest here a solution that will answer for
some years, and suggest to you bankers
whether you may not initiate it: To put it in
circulation now; keep it there until it is
fixed, and then we will find other markets
The South and Central American countries
have asked us to coin their silver for them
There has never been authority of law to do
80. l trust it will now be given. When il
is given, it will be more than the equivalent
of becoming exporters of articles of manu-
factories which We're previously articles of
import. Orders will come for large amounts
of coin. 1t will be all in silver, while pay
ments are not necessarily so. We become
the manufacturer OF this currency, with Il
profit, aud will probably secure a portion of
our pay in the more precious metals.
| have thought much about the recommen-
dations | should make to Congress, and have
changed slightly in regard to banking laws
since last had the pleasure Of personal
interview with you. IT is not necessary to
state what those changes are, because they
may undergo further modification. | shall
give to the subject, however, my sincerest
thoughts, and will court the views of others
1 have written this hastily, but if it calls
forth any views you would like to express /
will be glad to hear them. Yours, truly,
Us GRANT.