Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1873-10-16
GRANT ON THE FINANCES.


GRANT on THE FINANCES.
President Grant, on Saturday last, in an in
terview upon the subject of the finances, is
reported to have said that he thought the re-
cent panic generally through the country diff
fered essentially, both in cause and effect, from
any similar event of which he had knowledge.
When such events have heretofore taken
place distrust has been occasioned as to the
currency in circulation every one in posses
sion of currency would rush to the banks with
it or spend it in the most liberal manner, but
now, the currency, instead of being deprecated
is actually becoming daily more valuable.
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,
over purchases from abroad, etc. In this in
stance the panic has occurred in the midst OF
the greatest general prosperity. He believed
he was correct in saying that our exports, since
the beginning of the present fiscal year, have
exceeded our imports, and that too at time
when comparatively no cotton, the largest SIM
gle item of export, was moving. Everything
we produce is in great abundance, and the de-
mand for it abroad is beyond the supply we
have to spare. Our manufactures are pros
porous, and many articles which have been
imported are, to large extent, not only be-
ing produced at home, but we are actually
competing in the supply of foreign markets.
The effect of the purchase of an unusually
large number Of bonds was not so much real
as moral. The fact is the money corporations
of the country had become starnpeded, and in
turn startled and stampeded the whole coun-
try. Had not the treasurer seemed to aid
them in some way, the fright would have be-
come general and the consequence to the coun-
try more fatal. AS it 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 better fate,
may be severe. A return to a specie basis
can never be effected except by shrlnkage
of values; this always works hard to large
class of people who keep all they are worth in
margins. This shrinkage has now taken place,
disasters to individuals have already overta-
ken them, and he sincerely hoped the advan-
tage might be retained in order to reach Il
solid financial basis Already the currency
has appreciated to about par with silver-he
wondered that silver is not now pouring out.
When this should take place, his theory was
that the country could absorb from S200,00O,-
900 to S30O,0O0,000 of it. This would prove
a great benefit in several ways; it would sup
ply market for number of years for pro.
duct of our mines now becoming drug; it
would take the place of s40,000,000 Of frac-
tional currency, about the amount Of change
that experience has proven to be necessary
for the transaction of business and will become
the currency which will be forwarded in small
amounts. He believed that silver once more
in circulation, greenbacks would never be at
discount for silver; all fluctuations from
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 he were now engaged in
writing his annual message to Congress, he
should recommend positive authority to reis-
sue the forty-four millions of reserve; a free
banking law with the same protection to bill
holders as now; repeal of the clause requr-
ing reserve for the protection of depositors !;
percentage Of the other reserve to 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 in
stitutions to save the whole or q large percen-
tage of the gold interest paid ~ banks on their
bonds held by the treasurer tf the United
States for the protection Of bill FOLDERS. He
also favored an-absolute- -prahihstiaa -ta-tha
payment of interest on deposits. The Presi.
dent did not contend that he would be right
in these recommendations, but they embodied
the views which his unaided reflection had
brought to him. There was no question but
that much demoralizing and injurious specu-
lation and gambling was caused by the accu-
mutation of capital in large centres during a
portion ofthe year, when money is notrequired
for the movement of products by the payment
ofinterest on deposits. 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 pay
ing interest on deposits cannot afford to hold
the money idle; hence, gambling in fancy
stocks, millions of which as an investment
would not support family even in the most
economical manner the building of railroads
that are not wanted, and which cannot, for
years, pay running expenses, etc. Such gam
bling and speculation had, he trusted, received
a blow from which he hoped they never would
recover. The President said that unless his
mind should undergo change he would re-
commend postofice bank This would give
an institution in which everybody would have
great confidence. Within the reach of every
one who can approach money order postoffice
he should recommend the payment of per
cent. to depositors, and the conversion of de-
posts either in outstanding United States
bonds or into new Al per cent. bonds, and the
taking up corresponding amount of those
outstanding.
SECRETARY RICHARDSON'S VIEWS.
The Washington Star of recent date says ::
"Secretary Richardson, in speaking Of the
use of the legal tender reserves, and the pres
ent amount of circulation notes, says he would
oppose any bill for permanently increasing
the legal tender circulation above the present
standard, as well as bill permanently fixing
all the three hundred and fifty.six million.
The secretary Of the treasury must, at all
times, be able to pay the appropriations Of
Congress, or suspend payment until he can
accumulate currency for that purpose. Ifthe
limit is fixed, then the department will be
obliged to suspend payments on all warrants
when the currency balance is exhausted"
Financial ano Commercial.