Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-17
WASHINGTON, d. c., Oct. 6, 1878.
EXECUTIVE MANSION.


WASHINGTON, ID. c., Oct G., 1878. !
My DEAR Mr.. CowDREY: Your letter OF
the 29th ult. was duly received and read, as
was your previous letter. Neither required
an answer particularly, and hence Ibid not
answer them at that time. Your last letter,
however, contains one sentence that it seems
proper should reply to, that is as to an i'm
piled threat to the National banks contained
in my letter to Messrs. Anthony and Claflin.
Nothing was further from my mind than a
threat. My whole object was to restore con-
| fidence to the public mind, and to give assur-
ances that the Government would give all the
aid in its power, keeping in view at the same
time the solvency of the National Treasury.
You, and all bank Presidents, know more
about the condition of your banks than l can
possibly know. In turn. l, through the Sec
rotary of the Treasury, know more about the
financial condition of the Government, its
ability to render aid, &C., than any person
disconnected with the administration of its
affairs can know. l allude to the fact that
the $40 1000, 900 reserve notes in the Treasury
would be regarded as money in the Treasury
subject to use, for the purpose of showing
that the means are at hand to give the relief
we promise. do not believe the present
panic will work to individuals half the injury
it will work general good to the country at
large. Our monetary system is the creation
of necessity. 1t has no elasticity, but in
other respects it is the best that has ever been
devised. No one now distrusts the value of
his paper dollar; on the contrary, it is seized
and boarded with the same avidity now that
the gold dollar has been in former like adver-
sites. The panic will call attention to the
defects in our monetary system, and will, no
doubt, lead to legislation to relieve the want
of elasticity.
This panic has brought greenbacks about to
par with silver. l wonder that silver is not
already coming into the market to supply the
deficiency in the circulating medium. When
it does come-and l predict that it will soon
we will have made a rapid stride toward
| specie payments. Currency will never 20 be-
low silver after that. The circulation of sill
yer will have other beneficial effects. Ex-
perience has proved that it takes about Si0-
100000 of fractional currency to make the
small change necessary for the transaction of
the business of the country. Silver will grad
ualy take the standard of values, which will
| bel boarded in a small way. estimate that
this will consume from $500, 000, 900 to $780,
900, 900, in time, of this species of our circu-
lating medium. 1t will leave the paper cur
rency free to perform the legitimate functions
of trade, and will tend to bring us back where
we must come at last, to specie basis. l
confess to a desire to see limited boarding
of money. 1t insures firm foundation in
time ofneed. But want to see the hoasding
of something that has a standard of value the
world over. Silver has this and if we once
get back to that our strides towards higher
appreciation of our currency will be rapid.
Our mines are now producing almost unlim-
| tied amounts of silver, and it is becoming a
question, "What shall we do with it?" | sug-
gest here solution that will answer for some
years, and suggest to you bankers whether
you may not initiate it; to put it in circula-
now Keep 1t tuere until it is fixed, and then
we VIII md other markets. The South and
Nehtfai american countries have asked us to
COIN sheir silver for them There has never
been authority of law to do So i trust it will
now be given. When it is given il will he
more than the equivalent of becoming ex
porters OF articles of manufactures which
were previously articles of import. Orders
will come for large amounts of coin. twill
be all in silver, while payments are not nee.
essarily so. We become the manufacturer of
this currency, with profit, and will p1 obab
ly secure portion Of our pay in the more
precious metal. Ihave thought much about the
recommendations | should make to Congress
and have changed my mind slightly in regard
to banking laws siIce last had the pleasure
of personal interview.with you. 1t is not
necessary to state what those changes are,
because they may undergo further modfca-
ton. l shall give to the subject, however my
sincerest thoughts, and will court the views of
others.
l have written this hastily, but if it calls
forth any views you would like to express, l
would be glad to hear them. Yours truly,
IT, s. GRANT.