New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-25
A NEW THEORY OF RELIEF.

THE PURCHASE OF FOREIGN EXCHANGE FAVORED.
A number of foreign exchange bankers in
this city, have recently suggested to the Government at
Washington, the purchase of foreign exchange as a
of relief for the srDgency of the currency mar
ket The suggestion said to be under considers
ton by the Treasury officials at Washington The bank
ers meantime, have made similar proposition to the
banks claiming that in addition TO relieving TO some ex
tent the slringency in currency, it will directly urge
forward the produce expectations which now stand
blocked for want OF money. W. NJ. Clark, foreign ex
change broker In Broads rendered yesterday, the fol-
lowing explanation Of the terms of the suggestion to
reporter OF THE TRIBUNE:
1.-The foreign bankers Of NewYOrk offer these terms to
the Loan Committee of the Clearinghouse Associations
We will sell you GO day bills London and take In
payment the loan certificates. We purpose to take
these certificates to bank and place them TO our
credit We will then buy the bills on Europe drawn
against the shipment Of produce and draw our checks
therefor your banks, payable through the Gearing
house We thus obviate the necessity OF having green
backs in forwarding the gram and produce now hhng
our market II relief does not come soon there may be
a deadlock in all the departments OF business We
produce people cannot forward the grain unless this
relief is gwen and it be given in this way without
increasing the demand for greenbacks."
Mr.. Clark said that the most prominent foreign ex-
change bankers were advocating the pan and that the
banks generally favor it,
Mr.. Robinson junior partner OF Drexel, Morgan q Co..
was found in their banking house. and spoke very read
lily on the same subject He thought the Government
ought buy foreign exchange in large quantities. for
needed It almost continually, and every purchase
of course throws its worth in greenbaeBs on the street
All the departments foreign exchange, and every
branch of business need of it at times. The produce
men and the importers almost at dead stop, and
the much needed grain delayed its route to Europe
because people the greenbacks TO buy foreign
exchange
The quiet atmosphere OF the cOuntnghouse indicated
such repose and confidence It's ability to weather the
Storm that the reporter asked If DreXe Morgan Co.
apprehended no trouble. "Oh, no." responded Mr..
Robinson ave are Of the furry here. We have no
sma depostors 10 bother u.s. and losing their heads TO
get ND run on u.s. Our business is mostly done win
our own money and consequently out OF the way
OF runs"
"Are you sending much money TO the country T. NO.
DO not find that money is going to the country very
rapidly We send some and them mainly 20 ADJUST
balances Our house in Philadelphia drew 100000 yes
terday but only that purpose 1t by no means an
indication Of a stringency in the currency there"
Have you any other theory Of relief beyond the pnr
chase Of foreign exchanged "NO. But l think the
President might have stretched point and loaned the
banks portion Of the slOOOOOOO 1t would have done
much good and 1t is always better TO oyerdo those
matters a little than to fan short at ALL"