New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-21
LEGAL TENDER PAYMENTS.

AN EARLY RESUMPTION ~ THE BANKS AND TuE
DISSOLUTION OF THE "GREENBACK POOLING y
SYSTEM PROBABLE.
Outside of stock jobbing clQuos' the main fea-
iure of interest financial circles il the early re-
sumption Of legal tender payments by the banks.
Ii IL maintained by certain fnanciers that as long
~ there is doubt about the payment of legal ten
ders the counters of the banks, there will be
feeling of insecurity throughout the community,
and a consequent boarding of greenbaeKs, the free
circulation of which is essential to the proper trans
action of business When the banks went into
their pooling arrangements at the outbreak Of the
panic II generally known that II was for the
puTpose Of protecting the weak banks. which could
lOt otherwise have withstoOd the pressure The
SreeDbacks of the respective banks were also
pooled and each hank wac supplied from the
common fund. The pooling arrangement has
always been Objectionable 10 some Of the stronger
banks, which were able TO stand alone and when
the combination was first suggested it was not
lied out without opposition. Indeed il gener-
ally known IN banking circles that one prominent
institution obstnately refused 70 take part III the
pool" until il threatened with expulsion from
the Clearinghouse when II reluctantly submit
I'D. The pooling" Of greenbacks has been
particularly obnoxious TO those banks which
have an abundance Of that form Of currency, and
measures have been suggested for the speedy disso
luton of at least that portion Of the pooling AZ
fangeinont which relates TO greenhaeis One Of the
reasons given is that some of the banks evade the
obligations imposed 10y the Clearing hOnse in the
"pool7 For example such Of the banks as are dis
Iosod to comply with the terms of the compact
placed at a disadvantage by other banks not
pulously honorable, which receive PTeenbacks in
the ordinary cOurse of business and instead of
placing them in the pool" enter them IN
their respective books IS special deposits
sacred 10 the exclusive draft Of the deposition when
in reality they are used the banks deem most con
vonient Again, these latter banks secure green
backs which should 90 into the pool and exchange
them for national bank notes, and pay these over
the counter Altogether there is desire on the part
o. the banks with strong currency reserves 10 re-
new the free aud unlimited payment Of
greenbacks Up to the present time checks for the
pay-rolls OF manufacturers have been Che only
large sums cased by a certain class Of
hanks but il is expected that the
banks viii take action this
week 10 effect a formal resumption of payments. II
il expected that by this course the premium on
legal tenders, which has ranged As high az one per
cent and is now reported at one-Guarter OF one per
cent viii disappear and that the ceTti6caton OF the
banks will be regarded with as much confidence as
formerly. Some feeling exists on the subject OF
these payments, inasmuch number of the
banks ia Western cities have resumed While Now
York has not formally done vet.
With the view of asoertaining how the banks ana
bankers stood in relation 80 the question OF the TO
rumptiOn of currency payments TRIBUNE reporters
called yesterday, at a number corporate and private
banks- The results Of their inquiries are repro
Slueed below.