The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-12-05

clude loans OF this kind. In addition to this
aireet loan Of tney ISrnisneo m S isc1 scn,o
4s% Ssss Fl rs SSs the
5th of October the amount was l2,SOOOOO,
and these checks are made to swell the amount
of individual deposits They are credited
and ar diPed treated as s. money By the banks and by
their customers. Yet, when asoertaining the
q reserve. or upon when they must pay taxes,
the banks invariably deduct all such checks
on hand. For instance, on the first lnday
1924 10000; but deducting checks on haad,
Sll2 100000 they had actual deposits of Sill.
97O0vO. Taking the call loans aud the certified
Is developed tnat the New YORK national
6snEs furnish SoGVO OVV Oh cap1Cst anu 20 SLa1 H.
titled checks is direct imitation to that extent,
which stimulates the stock market aud
keeps the price of large class OF miscellaneous
securities much above their actual value; so
that the market Is feverish and fiuctuating,
Taking advantage of an active demand for
money to move the crops. West and South,
depTess The market by licking up" money
Withdrawing all they can control or borroI
from the common fund; money becomes scarce,
the rate of interest advances, and stocks decline.
The legitimate demand for money continues
and, fearful OF trenchipg on their reserve, the
banks are straightened for means, They dare
not call In their demand loans, for that would
compel their customers TO sell securities on
worse. Hsbilualiy lending their means to the
utmost limit of prudence and their credit much
beyond ,nat s 10 or9kers ord % ana sPeGe,et0Ts
TONER'S by the force of circumstances, become
their masters. The banks cannot hold back or
withdraw from the dilemma In which their
mode of doing business has placed them. They
must carry the load to save their margins A
panic, which should greatly reduce the price of
Securities would occasion serious IL not fatal
results to the banks most extensively engaged
of of finsecurity WHieh Would c be- very DANGEROUS to
the entire banking interest OF the country.
The fact that banking interest capital
and surplus of $l00OOO,0OO can be and
has been repeatedly placed at the mercy of q
few shrewd, though bold and unscrupuious
men, is evidence of some inherent defect in its
management, and the foregoing statement may
serve IN some degree to show where the error
and Spectators on collateral security, by which
nearly one half the active resources of the
banks are used directly to foster and promote
checks or loans of credit to the same class OF
men, whereby stocks are inflated and immense
capital third, the payment of interest on bank
balances, which, being payable On demand
must be loaned on call IN order to avoid loss.
Under the head OF specie payments the Con-
tro Ter says:-"The subject of specie payments
natu1 ally comes mp whenever the currency
question Is discussed, and much ingenuity has
been exeI csed In devisng plans for an early
resumption. Tne principal obstacle to specie
public debt OF the United States for the Ist of
Oct Der. 1865, under the head of debt bearing
tnter.st,' as foIluws:-United Statos notes $3.50.
together S3SS 9ji 6S7 IL OF Government notes,
circulating as money and designed to take the
lender for all debts, public and private. except
duties on imports and interest on the
inferior currency. inferior because irredeem-
able and inccnvert1ble except al n heavy dis
count, they will have 1t to the entire exclu.
sion of the precious metals. Whenever the
people concu ude that IL is more economical to
conduct the business of the country on a specie
basis, they can ordsin specie payments by max
ing provision through tueir represenJauv % in
Congress for the payment Or Withdrawal of
iss1ed I9 sna ep in e,renpon Se
Government; and whenever the people wish
10 restore the credit of the nation, they can
do 1T through their Representatives in C)n-
| gress by removing the only embarrassment
That stands in the way by directing that pro.
| Ing Indebtedness, amounting to 1888 900 0OO,
consisting OF promises to pay that are never
Paid, and SO establish the fact that the United
| States Is a solvent debtor, able and willing to
| pay every debt as II becomes due. Specie pay
ments and the restoration of public credit are
| within the reach and depend upon the will of
| the people of the United States.
The report closes with an allusion to free
| Congress shall inaugurate measures looking to
the appreciation OF United states notes TO q
gold standard, the effect Of such measures will
| probably be 10 diminish the volume OF such
notes In circulation. To what extent the re.
| duction would have to be carried In order to
place them permanently on q specie basis
| would at present be mere matter OF speculation.
! Doubtless largeamount might be ctrried wit n
public, as soon as the effect of such measures
| becomes apparent by the gradual appro ach of
legal tender notes to par with gold. The re-
strictions imposed upon the Issue of circulating
notes by national bank may be safely reno we'd,
provided the establishment of a central redeem.
agency In the city OF New York, at which all
national bank notes are redeemabie at par,
shall be required by law. Any iuconveuienc CO
thus be Temedied, and the remedy viii be in
| the hands of the only com petent Judge of the
necessilies Of the case' the business public OF