New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-23

already tended to relieve the smaller banks greatly
although comparatively few of them have az yet
been made ready for issue. Certainly matters look
much brighter just now'
| NATIONAL CURRENCY BANK.
+. F. Thompson, President of the National Curren-
cy Bank which mainly buys and sells Government
bonds, treasury notes and stamps was found at his
office and cordially undertook to enlighten the pub
| lie on the pending situation.
Mr.. Thompson-Our bank is dealer almost purely
in Government money, and we have had no compli-
cations with the railroad investments out of which
this tronble all grew. SO we apprehend necessity
for limiting operations. much less closing our
doors.
O. What is your view of the relief. afforded by the
Governments purchase of bonds A. 1t has greatly
relieved the people. Selling six millions of bonds
as they will have done since Saturday before bust
ness closes to-day, makes currency freer, of
But it would have been wiser, If the Government
had offered to buy portions of all their obligations
Five-twenty bonds not held in great bulk by the
smaller banks. They have generally exchanged
them, for the sake of the brokerage for what call
"consols," and great many are held by private
families. They want them more than they want
currency, because Of the soundness of the invest
ment and the interest 1t does not therefore, give
so much relief a more general sale might.
O. In regard to the loan certificates and the
smaller banks A. The loan certificates relieve the
pressure the smaller banks but at the expense in
great part of the larger banks The rich banks have
to carry loan certificates so long they creditor
at the Clearinghouse each bank taking its proper
ton every morning. The result is that large and
substantial banks find these certificates accumu-
lating, while their currency is decreasing. Suppose
when, in November next, we return these ceTtli-
Gates" pawn-tickets7 we call them-the banks they
h1a To hon hay m
but to take their securities-Wabash, Pacific. Min
nesota stock-securties on which we would not loan
the same amount of money to an old customer. And
the country banks are all calling for currency. TO
meet their own runs if they have any, and these
loan certificates may be treated just that way when
November comes On Nov. |, you know, the agree
ment expires.
BANK OF THE REPUBLIC.
r. II. Lowry, President of the Bank of the Repub-
lie at Wal-st, and Broadway, NestOr among
bankers having been for 40 years in the bank bust
ness of this city, was easy in mind and SO COM
pletely at leisure that he entertained the reporter
with his views and opinions very readily and in
addition cited various interesting "reminiscences of
the great crashes of days long forgotten
ave experience no pressure just now" he said,
land experienced very little during the worst of it.
Some very strong houses went down, though-the
Bank of the Commonwealth for instance. 1t was all
carelessness as to the soundness of securities"
O. Do you think, Mr.. Lowry, that the carelessness
you speak of is the main of these collapses
A. think it was the main cause for the collapse OF
the weaker houses, but there was an additional
cause for the failure of the more solid houses. The
evil all lay in the system of permitting outside banks
to clear through the Clearing house, Trust Com
panies and Security Companies and the like They
do not belong to the Clearinghouse, and ought not
to be allowed its privileges. Some OF them involve
the older and respectable companies. gen.
orally Trust Company that starts such a trouble as
this | remember that in 1857 it the Ohio Trust
Company that started it. They Enthusiastically
concerns taking business away from the old houses,
and derangng business every way by a failure in
the end. They make no reports except one an
nuay; you never any published reports of their
resources and if You do what you make of one
Q. Well, Mr.. Lowry, how does the action of the
Government impress youi A. 1t was the very best
that could be done. Issuing the 100000 might
have given relief more promptly and fully but then
doubt its legality and besides it is doubtful
thing at the best to have the Government interior
ing. It's bad precedent. With such a as
Boutwell, in the Treasury it might make no differ
ence but it's bad precedent in case some reckless
hand gets hold of the Treasury bags.
O. Do you think it likely that the relief is sufi-
Gent 10 save us from general suspensionf A. Oh,
yes It's all over | think the life Of the panic is
taken out Everything ought to move along
smoothly now
O. You spoke of the panic Of 1857. How does this
compare with that A. That iercer sharper.
Ii was soon over. II lasted only 60 days while the
banks were suspended-eyery bank in the State ex-
cept the Chemical Bank At the end of the 60 days
the banks, all thoroughly recuperated. resumed
business and cashed the same checks that they had
closed their doors on two months before.
O. You think there is now danger of repeating
the experience of that dayf A. No, not at all. But
| think if the banks find themselves going they
should all go at once, and try to resume in 30 days.
FIRST NATIONAL.
John Thompson, President of the First National
Bank, at No. 96 Broadway, reported that the bank
was not at all affected by the panic. 1t has paid
everything the counter that has been asked for
and has ample means to pay all demands A circu-
lar showing that the bank stands in good condi-
ton was issued and distributed yesterday among its
regular customers.
MIR. Thompson, who is one of the oldest bankers
in the CITY, expressed his views the situation az
follows:
Zone cause of the trouble in Wallst. has its origin
in hanks certifying checks for stock brokers' but
none of them have dealings with the First National
Bank. Brokers in an emergency have obtained GER
ti6cations and have failed at the close of business
10 make their accounts good. Most of them have
been sufficiently honorable TO take securities to the
hanks. which, in ordinary times, would cover their
overdrafts in the form of certified checks No bank
that is not known as a brokers' bank has been in
anv trouble The issue of loan certificates under
the arrangement adopted last Saturday has
been to-day about $6,0OO,000. Three-four