Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1873-10-16
The President on the Situation.

Dispatches from Washington state
that on the 18th the President eX-
pressed his views on the financial
situation substantially as follows
In the first place, he thought that the pan
&c generally through the country differed es-
scntiaily, both in cause and effect from any
similar even of which he had any knowledge.
When such events have heretofore taken place
diStruSt has been OccaSioned as to the curren-
cy in circulation. Every one in possession of
currency would rush to the banks with it, or
spend it III a most liberal manner, but now
the currency, instead Of being deprecated, is
actually becoming daily more valuable.
In response to a question, he said he thought
he saw in the passing events the first steps to
ward resumption, for the reason that panics
generally occur when the country lacks pros
pcrity, such as failure OF crops, ovcr-purchaS-
ing from abroad, etc. In this instance the
panic has occurred in the midst Of the great
est general prosperity. The aid recently rem
dcred in the purchase of an unusually large
number of bonds was not so much real as
moral. The fact is, the President said, the
money corporations of the country has be-
come stampeded and in turn startled and
stampcdcd the whole country. Had not the
Treasury seemed TO aid them in some way the
freight would have become more general and
the consequence to the country more fatal.
As it was he really believed the effect was 90
lllS 10 DC DcutICHli III liidilN ways 10 lIc Coun-
try at large, though the cost to some indiVid-
uals deserving of Il better fate may be severe.
RETURN TO 4 SPECIE BASIS
can never be effected except by shrinkage Of
values This shrinkage has now taken place
Disasters have overtakcn them, and he sin
oeroly hoped other advantages might be re-
tanned in order to reach solid financial basis
Already the currency has appreciated to about
par with silver He wondered that silver is
MOI M ont wi ~bp
take place his theory was that the country
could absorb from 500, 100000 to $500, 900, 900
of it. This would prove a great benefit in
several ways. 1t would supply a market for
a number of years for the product of our
mines. now becoming drug. II would take
the place of the So, 100000 of fractional chr
rcncy that being about the amount of change
that experience has proven to be necessary
for the transaction of business, and will be
come the currency which will be boarded in
small amounts. He believed that with silver
once more in circulation, greenbacks would
never be at discount for silver All tlunctu-
alton from that point would be in apprcca-
ton OF value OF our paper money.
He WOULD RECOMMEND FREE BANKING.
As to legislation. the President said he had
thought much upon the subject, and if he
were now engaged in writing his annual mes
sage TO Congress he should recommend the
positive authority to reissue the S44, 100000
reserve, a free banking law with the protec-
ton to bill-hoders as now, repeal of the clause
requiring a reserve for the protection of de-
poSitors, a percentage of other reserve to be
in gold, and that increased in a regular ratio
until the whole reserve would be in gold
This could be safely effected by requiring such
institutions to save the whole or Il large per
centage of the gold interest paid to banks on
Their bonds, held by the Treasurer of the
United States for the protection 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 en-
bodied the views which unaided reflection
had brought to him. There was no question
but that much dcmOralZing and injurious
speculation and gambling was caused by the
accumulation of capital in large centcrs by
the payment of interest on deposits during a
portion of the year when money Is not re
quircd for moving the products. This leads
country bankers, merchants, and others to
deposit in city banks, principally in New
! York, to make their money earn something
during & period when they do not wish to use
it. Banks paving interest on deposits cannot
afford to hold money idle. and hence gambl-
| ing in fancy stock, millions OF which, As an
investment, would not support family even
in the'most economical manner; the building
of railways that are not wanted, and which
cannot for wears pay running expenses, etc.
Such gambling and speculation had, he trust
ed. received a blow from which he hoped they
never would recover. The President said
that, unless his mind should undergo a change,
lie would recommend
A PosToFFICE BANK.
| This weud give an institution in which every
( BODY would have great confidence, and with
III the reach of every one who can reach
money order postoffice. He should recon-