Year: 1873

and will Recommend Post Once


Bank-Thc Chief Justiceship.


The views OF President Grant on the financial
question were expressed, in substance yesterday,
during conversation between him and corre-
spondent.


In the first place, he thought that the panic gen.
orally through the country differed essentially.
both in cause and effect from any similar event OF
which he had knowledge. When such events have
heretofore taken place. distrust has been occasoned
as to the currency in circulation. Every one in
possession OF currency would rush to the bank
with 1t or spend 1t in the most liberal manner.
But now currency, instead of being depreciated,' :
is actually becoming daily more valuable.
In response to question, he said he
thought he saw in passing events the
first steps toward resumption; for the reason
panics generally occur when the country lacks
prosperity, such from the failure OF crops, over
purchases IRON abroad &c. In this instance the
panic has occurred in the midst OF the greatest
general prosperity. He believed he was correct In
saying that our exports, since the beginning OF the
present fiscal year, have exceeded our imports;
that too, at time when comparatively no cot
ton, the largest single item OF exports was
moving. Everything we produce is in great abun-
dance, and the demand for it abroad is beyond the
supply we have to spare. Our manufactures
are prosperous, and many articles which
have been imported are. to large
extent, not only being produced at home, but we
are actually competing in the supply of foreign
markets. The aid recently rendered in the pur-
chase of an unusually large number Of ponds was
not SO much real as moral. The fact is, the Pre-
sident said, the money corporations OF the country
had become stampeded, and IN turn startled and
stampeded the whole country. Had not the Trea-
sury seemed to aid them in some way, the fright
would have become more fatal. AS lJ was, he
really believed the effect was going to be
beneficial in many ways to the coun-
try at large, though the cost to
some individuals deserving Of better
fate may be severe. return to q specie basis
can never be effected except by shrinkage Of
values. This always works hard to large class
of people who keep all they are worth in margins.
This snrinkage has now taken place. Disasters to
individuals have already overtaken them and he
sincerely hoped the advantage might be retained
In order to reach q solid financial basis Already
the currency has appreciated to about par with
silver. He wondered that silver was not now
pouring out When this should take place. his
theory was that the country could absorb from
5000 900 to $780, 900 900 oft. This would prove
great benefit in several ways. 1t would supply
market for number OF years for product of
our mines now becoming drug. 1t would take
the place OF s40,000,0O0 OF fractional currency,
about the amount Of change that experience has
proven be necessary for the transaction OF busi
ness, and will become the currency which will be
boarded in small amounts. He believed that silver
once more in circulation, greenbacks would never
be at discount for silver. All fluctuations from
that point would be in appreciation of the value of
our paper money.


As to legislation, the President said he had
thought much upon the subject and If he were now
engaged in writing his annual message to Congress
he shonld recommend positive authority to reissue
the 900 OF reserve, free banking law with
the same protection to bill holders as now,
repeal of the clause requiring reserve for the
protection OF depositors, percentage OF the other
reserve to be In gold, and that increased in regu-


lar ratio until the whole reserve would be in gold.
This could be solely effected by requiring such in
stitutions to save the whole a large percentage
OF the gold interest paid to banks on their bonds
held by the Treasurer OF the United States for the
protection OF billhoders. He also favored an ab-
soute prohibition to the payment OF interest on
deposits. The President did not contend that he
would be right in these recommendations;
but they embodied the views which his
unaded reflections had brought to him. There
was no question but that much demoraizing and
injurious speculation and gambling were caused by
the accumulation of capital In large centres during
a portion OF the year when money is not required
for the moving OF products, by the payment OF in
terest on deposits. This leads country bankers
merchants and others TO deposit in city banks
principally in New York, to make this money earn
something during the period when they do not
wish to use it. Banks paying interest on deposits
cannot afford to hold the money Idle. Hence gam
bling in fancy stocks, millions OF which as an in
Afa1I
even In the most economical manner; the building
OF railroads which are not wanted, and which can
not for years pay running expenses, &c. Such
gambling and speculation had he trusted, received
blow from which, he hoped, they never would
recover. The President said that unless his mind
should undergo change he would recommend
post office bank. This would give institution
in which everybody would have great confidence
within the reach OF everyone who can approach
money order post ONCE. He should recommend
the payment Of four per cent to depostors and the
conversion OF deposits either into outstanding
United States bonds or into new four and a half
per cent bonds, and the taking up OF 0 correspond
ing amount OF those outstanding


The President having been asked . question in
relation to the Chief Justiceship, replied he had
consulted with no one as to the selections and he
repeated what he heretofore said-namely, that in
making choice he would look TO the interests OF
the country at large. and therefore endeavor to
make choice which would be generally accepta-
bic; and further, on the meeting OF Congress he
would nominate to the Senate a successor TO the
late Chief Justice who would not take his seat until
after confirmation. The mention OF first one name
and then another by the newspapers was mere
speculation.


Secretary Richardson Explains tho


Financial Policy of the Govern


ment.


The decline in the price OF gold and the necessity
for drawing upon tho legal tender reserve form
a serious question In the administration OF the
finances Of the Treasury Department Secretary
Richardson daring the summer adopted the plan
of selling 1--WE and SIX millions OF gold each month";
and purchasing not more than million Of bonds,
for the purpose Of eccumulatipg large currency