New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-10-14
The Views OF President Grant on the ri,
nnnciol Situation.


The following report of an interview Wit
the President was telegraphed on Sunda-
to our city contemporaries. The ideas ad
| vsnced are SO radical, and ac the same tim
so suggestive. that we reproduce the articl,
for the peru.al and reflection Of our readers
President Gran: yesterday, in an inter
view, said he thought that the panic gener
ally throughout the country differed essen
TALLY 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 DOS
session of currency would rush to the banks
with it, or spend it in the most liberal man
ner; but now currency, instead of being de-
preciated, is actually becoming daily more
valuable. He thought he saw in passing
events the first step 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 instance the panic
has occurred in the midst of the great.
est general prosperity. He believed
he was correct in saying that our exports
since the beginning of the present fisca!
year have exceeded our imports; that, too,
at time when comparatively cotton, the
largest single item Of export, was not NOV
ing. Everything We produce ls in great
abundance, and the demand for it abroad
is beyond the supply we have TO spare.
Our manufacturers are prosperous, and
many articles which have been imported
duced at home, but we are actually cou,-
peting in the supply of foreign markets
The aid recently rendered in 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 be.
come stampeded, and in turn startled and
stanpeded the whole country. Had not
the treasury seemed to aid them in some
way. the fright would have become more
general, and the consequences TO the
country more fatal as it was, he really be-
lieved the effect was going to be beneficial
in many ways to the country at large,
though the cost to some individuals deserv-
ing OF better fate may be severe. A re-
turn to specie basis can never be effected
except by ashrinkage Of values; this ALWAYS
works hard to q large class of people, who
keep all they are worth in margins. This
shrinkage has now taken place. disasters to
individuals have already overtaken them,
and he sincerely hoped that the advantages
might be retained. 10 order TO reach q
solid flancial basis. Already the eur
with silver-he wondered that silver is not
now pouring ont; when this should TAX.
place, his theory was, that the country
could absorb from two TO three hundred
millions of it. This would prove great
benefi. in several ways. lt would supply a
market for number Of years for q pro-
duct Of our mines. now becoming a drug.
l: would take the place Of $4,000, 900 OF
fractional currency. about the amOun: of
change that experience has proven to be
necessary for the transaction Of business.
and will become the currency. which will
be boarded in small amounts He believed
that silver once more in circulation. green.
backs would never be at discoun: for sill.
ver; all fluctuations FROM that point
would be III appreciation OF value of
our paper money. The President said
he thought much upon the subject, and if
he were now engaged in writing his annual
message TO Congress. he should recommend
positive authority TO reissue the 81. 100000
Of reserve: free banking law with the
same protection to bill holders as now a
repeal OF the clause requiring a reserve for
the protection OF depOsitors: a percentage
OF IN. other reserve to be in gold, and tha.
Increased IN regular ratio until the whole
reserve would be IN gold. This could be
solely effected by requiring such institutions
30 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 protsc'isn of bill holders
He also favored an absolute prohibition to
the payment OF interest ON deposits.
The President did not contend that he
would be right in these recommendations,
but they embodied the views which his an
aided reflections had brought to him. There
was Il o question but that much demoralizing
and injurious speculation and gambling was
caused by the accumulation or capital in a
large centre. and during a portion of the
year, when money is not required for the |
novin. Of products. by the payment of in. |
5eTest on deposits. This leads country !
Danks, merchants and others to deposit in !
,ity banks. principally in New York. to |
make this money earn something during |
he period when they do not wish to use it. |
Banks paying interest on deposits can |
lot afford to hold the money idle: hence |
gambling in fancy stocks. million. of |
Fhlch was an investment that would !
lot support family even in the most econ. /
,mical manner: the building of railroads |
nat are not wanted, and whic!! can not for |
ears pay running expenses. etc. Sueh |,
ana speculation had, he trusted.
eceiVed blow from which he hoped they |
ever would recover. The President said !.
ha, unless his mind should undergo
hanSe he would recommend a postotiice
anh; this would give an institution in which
verybody would have grea. confidence.
7ishin the reach Of every one who can ap.
roach money order postoflice: should re.
oInmend the payment of four per cent to lie.
ositors. and tho conversion of deposits
isher in outstanding United States bonds
into new four and half per cent bonds,
nd the taking up of corresponding
mount OF those outstanding.