New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-22


Senator MortOn-Yes, read it first and then gave
it to the President
Mr.. Johnson-What is the RESULT What will the
President dot
Senator Morton-He has decided to buy an I'M
limited amount of $40 bonds at price not exceed
ing par in gold. The President fully realizes the
situation aud is disposed to do all that he can
within the letter Of the law.
Mr.. JOhnson-Then he win not Issue the S44 600
greenbacksi
Senator Morton-No; he has decided not to do So
Mr.. Johnson-Then won't he loan the gold that is
in the banksf
Senator Morton-They have considered the stu
alton in all its aspects and think that the most they
can do IS the purchase of these bonds.
Mr.. Johnson-Ie can't get them. They are not
here; they are in Europe.
Mr.. Opdyke-Unless they create run on the
savings banks and compel them to sell TO save them
selves.
Mr.. Johnson-By the way, / have reason 10 believe
that the Sub-Treasury act has been repealed. The
Repeating act was passed. think, July 3, 1859
Senator MortOn-I would like TO see the Repeating
law. have never heard of it.
Mr.. Johnson-It seems Ito have been short act
which nobody knows anything about. l have sent
for a copy of the statutes.
has been not so much to the legality of the Issue
of S44,0OO,0O0 greenbacSs, how to get the money
into the banks and into circulation; Mr. Richardson
has been of the opinion that il was legal.
Here the interview closed. Soon afterwaTd a
TRIBUNE reporter inquired of Senator Morton the
decision which had been reached by the President
and was answered substantially as Mr.. Johnson had
been. Mr. Morton said that he had been in New
York about week and had seen the progress of the
Wall-st panic from the start. He had telegraphed
to President Grant and Secretary Richardson, urging
them to on but he not prepared TO say that
they would not have come without such urging. They
had been in consultation all day. and had had the
matter presented from every point of view. There
was possible suggestion which had not been pre-
sented and considered. The relief proposed by the
President all that he felt authorized to offer at
present. He did not think the crisis sufficient to
warrant the exercise of extraordinary or doubtful
powers. If the S44,OOOOOO Teenbacks were issued
the question was how to get them into circulation
The Government could act a purchaser of its own
bonds but could not come into the market as
lender.
Senator Morton was asked if Government might
not deposit money in the banks. He answered that
il had been done but he could not say that II
might not legally be done Certain banks were
designated as repositories for Government moneys
which were flowing toward the Treasury money
had never been taken from the Treasury and placed
in these repositories. The legality of such course
had yet to be decided. The contemplated action OF
the President would be officially announced III the
morning papers, and nothing more would be done
for the present, If the purchase of bonds afforded
no relief, and the panic went on, he was not pre-
pared to say that further action would be taken by
the President in the matter and that he might not
exercise powers which he declines to use in the pres
emf stage of affairs.