The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1873-10-13
BY TELEGRAPH
wAsHINGToN.

WARRINGTON
President Grant on the Finasscis
IL SifuatiOn -.HEis opinion of the Earl
hes"mption of Specie Payment.
WASHINGTON, October 12.-Presider
Grant yesterday, in an interview, said h
thought that the panic generally throug
the country differed essentially, both j
cause and effect, from any similar event q
which he had Knowledge. When sue
events have heretofore taken place, tn
distrust has been occasioned as to the cur
rency in circulation; every one in the pos
session Of currency would rush to th
banks with it or spend it in the most libe
raj manner, but now, currency instead O
| being deprecated is actually becomin,
daily more valuable. He thought he saw
IN passing events the first steps toward re
sumption, for the reason panics generally
occur when the country lacks prosperity
| such as from the failure of crops, on pulr.
chases from abroad, etc. In this instance
the panic has occurred in the midst of the
greatest general prosperity. He believed
| ne was correct in saying that our exports
since the beginning of the present fiscal
year have exceeded our imports
that too, at time when com.
paratiyely no cotton, the largest
single item of exports, was not moving.
Everything we produce is in great
abundance, and the demand for it abroad is
beyond the supply we have to spare. Our
manufactures are prosperous, and manv
articles which have been imported are, to
a large extent, not only being produced at
home, but we are actually competing in
the supply of foreign markets. The aid
recently rendered in the purchase of an
unusally large number of bonds was not so
much real as moral. The fact is.
the money corporations of the country had
been stampeded, and in turn stampeded
the whole country. Had not the Il easurv
seemed to aid them in some way, the fright
would have become more general and the
consequence to the country 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
deserving a better fate may be |
severe: a return to a specie basis can |
never be ELECTED except by a shrinkage of |
values. This always works bad to a large |
class OF people, who keep all they are
worth in margins. This shrinkage has
now taken place, disasters to individuals
nave already oyertaken them, and he sim
cerely hoped the advantages may be re.
famed IN order to reach solid financial
basis. Already the currency has appre-
GATED to about par value with silver.
he wondered that silver is not
low pouring out. When this should /
axe place his theory was that the
:ountry could absorb from two to three hun
ired millions of il. This would prove great
benefit in several ways. 1t would supplv
market for number of years for pro.
luct of our mines now becoming drudge.
t would take the place of forty millions
i fractional currency about the amount OIL
change that experience has proven TO be
ecessary for the transaction of business
nd will become the currency which will
% boarded up in small amounts. He
elieved that silver once more in circula-
ION, greenbacks would never be at dis ,
ount for silver. All fluctuations from
hat point would be in appreciation of
alue OF our paper money. As to lceis-
alton, the President said he thoueht
much upon the subject, and if he was now
ngaged IN writing his annual message to
ongress he should recommend positive :
minority to reissue the fourty-four ,
lllllons OF reserve; free banking law with :
le same protection to bill-holders, as now /? !
repeal OF the clause requiring reserve !
n the protection of depositors percent. !
&c OF the other reserve to be in gold, and !.
lat increased in a regular ratio until the |,
hole reserve would be in gold. This :
'uld be solely effected by requiring such ),
to save the whole or large per-
ntage of the gold interest paid to banks
their bonds held by the treasurer ofdhe
nited States for the protection of bill ;
olders. He also favored an absolute pro- =
bition to the payment of interest on de- =
'slts. The President did not contend !
at he would be right in these recommend
ions; but they embodied the views al
hich his unaided perceptions had brought
him, and there was no question, but that
UGH dcmoralizing and injurious specula- 1 I
'ns and gambling was caused by the ac. !,
Of capital in large centres N
lilng portion of the year when money is
IT required. for the moving of products
the payment of interest on deposits.
MS leads country bankers, merchants and &
hers to deposit in city banks, princi- n,
lily in New York, so as TO make this tr
oney earn something during the .,
riod when they do not wish to use it. ~ y
anks paying interest on deposits cannot .,
ford to hold the money idle, hence gam Fl
lnS in fancy stocks, millions of which, as e.
investment, would not support 4,
mily, even on the most economical ~
amer the building of railroads that are 4,
It wanted, and which cannot for years ii
y running expenses, etc. Such gambling 70
d speculation had, he trusted, received M
ow from which he hoped they never "a
,uld recover. The President said that
Hess his mind should undergo change,
would recommend postoffice bank.
lis would give an institution in which
erybody would have great confidence, til
thin the reach Of every one who can 81
proach a money-order postoffice. He
ould recommend the payment of four 81
r cent. to depositors, and the conversion al
deposits, either in outstanding United OF
ates bonds, or into new four-and-a-half pl
+ cent. bonds, and the taking up of W
amount of those outstand- m
:. m
Andy johnson ian Washington. ye
WASHINGTON, October 13.-Andy
hnson is here, looking after a $73, 900
posit in the First National bank of this
y.