Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1873-10-14
S.is ~ E'.;ss!'l s|ss.:


We aid the following in late Aso-
ciated Press dispatches. 1t 10 interest
Ing "a showing the views Of the Chief
Executive upon currency imitation.
specie payments, the system Of inter-
est payments on bank deposits, and
the proposed establishment OF Post
Office Banks:
President Grant yesterday (the llth
instant. In conversation with an agent
Of the American Press Association, did
not hesitate to express his mind freely
ON the financial questions OF the day,
and to relterate some opinions on this
subject which he had occasion to ex-
press to some leading fnanciers Of the
country during the prevalence OF the
financial panic, which has proved 90
disastrous to the speculative interests
Of the country. In the first place, said
the President the panic generally
throughout the country differed essen-
TALLY In causes and effects. from any
similar event Of which l have knowl-
edge. With such events as have here
tofore taken place. no distrust has been
o~ecasioned regarding the currency In
circulation. Every one In possession
OF currency would u to the banks
with Il or spend tin the most liberal
manner. bI.s 40
In regard to specie payments, the
President said q return TO specie busi-
ness can never be expected except oy
q shrinkage Of values. This always
works hard to people who keep all
they are worth In marquis. Thla
shrinkage has now taken place. Phe
disasters to individuals have already
oyertaken them. and IL Is to DO SIN
cerely hoped the advantages gained
may be retained In order TO reach a
solid financial basis. Already cur
rency has appreciated to about par
with silver. The wonder Is that silver
Is not pouring out. When this shall
take place, he said, my theory Is that
the country will absorb from 100000
to $500, QUO Of It. This would prove Of
great benefit and supply the market
for q number OF years with the product
Of our mines now becoming developed.
Instead Of $40, 000. 900 OF fractional u
rency-toEabout that amount Of change
1t Is proved Is necessary for the trans
action Of business-silver will become
the currency, which would otherwise
be boarded In small amounts. With
silver once more In circulation green
backs would never be mt n discount ;
for with silver. all fluctuations from
that point would be In appreciation Of
value to our paper money.
As to legislation, the President said A:
az have thought much upon this sub
ject. and II | were now engaged In
writing my annual message to Con-
gress, / should recommend a positive
authority to reissue the $44,00O.0 QUO
legal tender reserves, q free banking
law with the same protection to hold
ers as now, the repeal OF the clause
requiring = reserve Tor the protection
Of depositors, and n percentage OF
other reserves to be In gold, and that
increased in regular ratio until It all
should be in gold. This could be SOL
idly effected by requiring each instl-
tuition to ave n whole or large per-
centage Of gold Interest paid banks OH
their bonds held by the Treasurer Of
the United States for protection to bill
holders"
The President further said that he
favored absolute prohibition to the
payment OF interest on deposits. he
did not contend that he would be
right in these recommendations, but
they embodied the views which his re-
Elections had brought to him. There
WAS no question but that much demon
alization and injurious speculation
aud gambling WAS caused oy the ac-
emulation of capital In large cities
during the years when money 10 not
required for removing products. or by
the payment Of Interest OH deposits.
This leads country banks, merchants
aud others, to deposit in city banks,
principally New York, to make this
money earn something during the Pc
riod when they do not want to use It.
The banks, paying interests OH depos-
is. cannot afford to hold money idle,
hencs gambling In fancy stocks, mil
lions OF which, as all honest Invest
ment. would not support a family
v c In the most economical manner.
The building Of railroads, which are
now not wanted, aud which for years
cannot pay running expenses, was the
means by which such gambling and
speculation 10 continued. "These, i
trust" said the President, shave re-
ceived a blow from which they can
never recover"
In conclusion. the President said
unless his mind should undergo a great
change. he would recommend the Post
Office Banks. This would give US an
institution In which everybody would
have great confidence, and within the
reach OF every one who could reach
the money-order Of the Post Offices.
He should recommend payment Of four
per cent. Interest to depoSitors, and
the conversion Of deposits either into
outstanding United States bonds, or
into new ~ per cent. bonds, and the
taking up OF a corresponding amount
Of these outstanding.