The Potter journal and news item. [volume] (Coudersport, Pa.) 1872-1874, 1873-10-29

ClOnal treasury. on, anu All Ddllh
presidents, know more about the
condition of your banks than | can
possibly know. In turn |, through
the Secretary of the Treasury, know
more about the financial condition Of
the government, its ability to render
aid, etc, than any person disconnect-
ed from the administration of its af-
fairs can know. | alluded to the
fact that the forty-four million re-
serve 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 in
jury it will work general good to the
country at large. Our monetary sys-
TEN is the creation of necessity. 1t
has no elasticity, but in other re-
spects 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
adversities. The panic will call at
tention to the defects in our moneta-
ry system; and will, no doubt, lead
to legislation to relieve the want Of
elasticity.
The panic has brought greenbacks
about to a par with silver. | wonder
that silver is not already coming in
to the market to supply the deficicn-
cy in the circulating medium. When
it does comc-and | predict that it
will soOn-we will have made a rap
id stride towards specie payments.
Currency will never 90 below silver
after that.
The circulation of silver will have
other beneficial effects. Experience
has proven that it takes about forty
millions Of fractional currency to
make the small change necessary for
the transaction Of the business of the
business of the country. Silver will
gradually take the place of this cur
rency, and, further, will become the
standard Of values, which will be
boarded in a small way. | estimate
that this will consume from two to
three hundred millions, i'll time, Of
this species OF our circulating medi-
um. 1t will leave the paper currency
free to perform the legitimate func-
tiOns Of trade, and will tend to bring
us back where we must come at last,
to a specie basis. / confess to a de
sire to see a limited boarding of
money. 1t insmes q firm foundation
in time Of need. But | want to see
the boarding 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 to-
wards a higher appreciation of our
currency will be rapid.
Our mines are now producing al
most unlimited amounts of silver
and it is becoming question, ''What
shall we do with it ~ | suggest here
a solution that will answer for some
years, and suggest to you bankers
whether you may not initiate it: to
put it in circulation now; keep it
there until it is fixed and then we
will find other markets. The South
and Central American countries have
asked us to coin their silver for
them. There has never been authori-
ty of law to do so. | trust it will be
now given. When it is given it will
be more than the equivalent Of be-
coming exporters of articles of man
utactories which were previously ar
ticles Of import. Orders will come
for large amounts of coin. 1t will
be all IN silver, while payments are
not necessarily so. We become the
manufacturer Of this currency, with a
profit and will probably secure a por-
tion of our pay in the more precious
metal.
| have thought much about the re-
concentrations | should make to
Congress and have changed slightly
in regard to banking laws since |
last had the pleasure of a personal
interview with you. 1t is not neccs-
sary to state what those changes are,
because they may undergo further
modification. | shall give to the sub
ject, however, my sincerest thoughts
and will court the views of others.
| have written this hastily, but if
it calls forth any views You would
like to express | will be glad to hear
them. Yours truly. L. :. GRANT.