, 1873-10-17
PRESIDENT GRANT.

xN1& LGttCE OH E1NilNClNA U1NEtGF&s
From the Nesp Tork Eptn;no I'osl, 0c!. IA.
Tho following lottor from President Grant to
Mr.. N. 4. Cowdroy, of tho Continental Bank,
was handed to us for publication. It will, Of
course, In road with groat tutorost by oyoly-
body, whatever may be thought OF Its thoorios
and Of It's asaurnoa facts. Some portions Of it
woro repeated essentially ia tho dispatch, yes-
tufday published, giving the opinions OF tho
President on the prosont aspect Of financial nf-
fairs. This document, however, authenticated
by tho elgnat uro Of tho President, will necossa-
rily bo accepted us authoritative: ::
EXECUTIVE MAas1oN, |
WAsn1NoToN, d. G., Oct, 0, 1881
MY DEAR Mn: cowpREy: Your letter Of tho
3oth ult. WAS duly received and read, as was
your previous lettor. Neither required an an
swer particularly, and henco did not anEwer
thom ut that time. Your last letter. however,
eonans .a7 ono sentence that It seems proper
to the National Banks contained in my letter
to Messrs. Anthony and Clatlin. Nothing vaa
further from my mind than threat. My
whole object was to restore confidence to
tbat tl.o Government would eive i've all aii tho aid IL
ita power, keeping in view ut tho sanlo time
the Bolvenoy of tic National Treasury. You,
and all bank Presidents, know moro about
hae.i1 tho Gondison 5.lnn Of your hanks than Gnu
financial condition Of tho Goyernmont, ito
ability to rendor MD, &C.. than any person dis
connected from, the administration Of ltB airaira
Gun know. alluded to tho fact that the S44, 600
goo roserve notoB in Tho Treasury would bo re-
gardad as money in tho Treasury subject to use,
tor tho purpose Of showing TINT tho means aro
ut hand to give the relief wo promise. =,
o DSHH n hs S i I'll Ho we wenera IL
good TO the country at largo. Our monetary
aysto1h is the creation OF necessity. 1t has no
elasticity but In other respects it is tho host that
evor has been devised. No ono now distruHts
ia seized md boarded with tile eamn atidity now
that tho gold dollnr has becn in former lilo nd
yersitics. The panic will call attention to tho
defeots IN our monetary system and will, no
doubt lend to legislation to ro]iavo the want Of
elasticity.
The PANIC has brought greonbuoks about to
par with Bilyor. wonder TINT Bllvor lB not al
ready coming into the market to supply the
does conlo-and predict tllat It will aoon-wo
will hayo mado q rapid stride towards specie
payments. Currency will mover go bo1ow
silver after that.
Tho circulation Of silver will havo other bene-
floia effects. Experience has proven that it
takes about $40 006 600 Of fractional curroucy to
mnko tho small chango necessary for tho trans
action OF the business OF tho country. Silver
will gradually tako the place Of the elrroncy,
Saes Sh toFt1sSE Nss will n p''is' Ss {s s,rs1 sioa1 % ii
i
small way. l estimate that this will con-
sume from $500, 100000 to s30o000,010, in time,
Of this species OF our circulating medium. It
will loayo the paper currency free to perform
tho legitimate functions Of trade, and will tend
to bring ua back where We must como nt last, to
specie basia. confess to - dosiro to SEQ
limited boarding OF money. It inBnros firm
foundation in tine Of need. But I want to
see tho boarding OF aomothing that has stand
nrd Of yaluo tho world over. Silver las this;
and If wo ouco get back to that our strides to-
wards higher appreciation Of our currency will
bo rapid.
Our mtnes arc now producing almost unli1nit-
cd amounts Of silver, aud it IL becoming D
question, "What shall wo do with it z" I aug
gest horo n solution that will answer for somo
you may not initiate it.: to put IT in ciroula-
fion now keep it thoro until it ia fxcd and
thon we will find othor markets. The South
and Central American countries have asked us
to coin their silver for them. There has never
been authority Of law 70 do so., trust it will
now be given: Whom It a giron It will be moro
than the equivalent Of becoming exporters Of
articles Of manufactores which wore previously
articles Of import. Orlers will como for largo
amounts Of coin., 1t will bo all in silver, while
tho manufacturer Of this currency, with profit,
and will probably secure portion Of our pay iu
tho moro precions metal.
have thought mllul about tho recommends
tions I should mako to CongroBs, aud have
changed slightly in regard to banking laws since
with you. It Ia not noocHBary to state what
those changes are, because they may undergo
further modification. 1 shall give TO tho sub
tcot, howeyer, my aincerast thoughts. aud will
court tho yiewa OF others.
hayo written thia haatiy. but il it calls forth
my yiowH you would like to oxproas I will DO
s'A4 ~ 4S"N '+'A'' 4''''' ''''{j &. s. GRANT.