Year: 1873

Views on the Financial Question Of


President Grant and Of Secretary


Richardson.


The views of the President on the financial
question, which are given among our Wash
ington dispatches this morning, will, in our
judgment, not only satisfy the reader that he
has been carefully studying this important
subject, but will contribute to strengthen the
confidence of the country in the general sound
, ness and strong vitality of our financial and
business affairs. His idea that the late panic
differed essentially in cause and effect from
any other event of the kind, particularly in
enhancing the value Ct the paper currency Of
the country, while in all our preceding hnan-
cial disturbances holders of bank notes
rushed to the banks and were anxious to
get rid of their depreciating paper on any
terms is the statement Of simple fact which,
since the late Wall street scare, has indelibly
impressed upon the public mind the inval-
liable advantages Of uniform national cur
rency, resting upon the solid basis of the ma
tional credit over the pre-existing system of
hundreds of State and other local banks, good,
bad and Indifferent, subject to breakages,
counterfeits and deprecations from day to
day. Nevertheless while in this late test the
invaluable security and advantages OF our
present national paper money has been es-
tablished, there are yet some imperfections in
our present national banking and financial
system to which the attention of Congress
cannot be too earnestly directed


The Presidents opinion that in passing
events we have the first steps towards re-
sumption of specie payments on the first fair
opening is very widely entertained But in
this matter, it may be wise not to permit zeal
to outrun discretion, in view Of the seri-
GUS disturbance of the existing relations
between the debtor and creditor sections Of
the country that would follow too rapid re-
turn to the specie standard, Notwithstanding
the unprecedented conditions of substantial
prosperity in which the country now stands
before the world. In regard to the aid given
the banks by the government in the late
stampede, as the President aptly defines it,
we have the admission that it was moral and
not a material aid that, in fact, it was neat
bit of strategy for arresting the stampede, and
that it served its purpose, though our financiers
were sorely puzzled to discover where
the actual financial relief came in. In
regard to the substitution of specie for our
fractional currency, as an approximation to
specie payment in full Of all demands, the
Presidents opinions, from the reasons upon
which they rest, are entitled to great weight,
though, from the ightness and convenience
in handling of our fractional stamps, they are
generally regarded as possessing for small
change decided advantages over pocketful Of
silver, nickel and copper coins.


But the most important of these outgivings
from the President are in the recommenda-
tons of legislation which he would now make
to the two houses of Congress were they in
| session. He would recommend positive au-
thority to reissue the forty-four millions of the
| Treasury reserve Of greenbacks, which does
not look like deliberate approach to
| specie payments free banking law, with
the same protection to bill-holders as now
which would be, with the other changes sug-
gested, an important reconstruction of our
national banking system. On the uses and
abuses Of money in stock gambling, and on
the consequences during the slack water sea-
sons of legitimate business, President Grant
speaks as one having authority. Next, from
that convenient institution, the money order
system, the proposition of Post Office bank
will meet with many advocates but such an
establishment will require the most careful
safeguards to restrain it from vicious excesses,
in interfering, for instance with the freedom
| Of elections


In connection with the foregoing views Of
the President on the money question the
views of his Secretary of the Treasury on the
same all-important subject, which, from a
special correspondent, we give our readers this
morning, will be found very interesting The
reader will perceive that to Secretary Richard
son the expedients required of him to meet
unexpected contingencies Of the time pnd to
prepare the way iotr a resumption Of specie
payments do not appear in the rosy light in
which the President paints his picture
Taking together, however, the President 8
opinions and propositions and his Secretary s
stubborn facts and necessities, we have the
| elements which lead to the conclusion that the
government is drifting along ns well as our
banks, and the country may be thankful that,
In the chapter of accidents, 1t has not drifted
| into the breakers.


THE CuBAx PATnIoTs ACTIVE ~ THE
FKLD-The news from Havana, which Is al.
ways made to look as unfavorable as possible
to the Cuban patriots, shows that the Cubans
ale fighting well and are assuming the often
sive in several directions. In fact the
Spaniards begin to squeal terribly Deputa-
tions from the corporations Of Holguin and