Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-09-29
The President wrote and forwarded the TO
lowing letter yesterday:

WASHINGTON, ID. C., September %, 1873.
MessrS. II. b. Claim and Charles L. AhthOaV.
GENTLEMEN: In response to the views you
have communicated to me touching the present
stringency in the money market of the country,
and the necessary steps 20 restore confidence
and legitimate trade and commerce, have the
honor to communicate the following:
The government is deslrous of doing all in its
power TO relieve the present unsettled condition
of business affairs, which is holding back the
immense resources Of the country now awaiting
transportation TO the seaboard and a market.
Confidence on the part of the people Is the
first thing needed to relieve this condition and
TO avert the threatened destruction of business,
with its accompanying disasters to all classes OF
ernment is willing to take all legal measures at
its command, but it is evident that no govern
ment efforts will avail without the active coope.
ration of the banks and moneyed corporations
Of the country,
With the fourteen millions already paid out
in the purchase of the gOvernm ant indebtedness
and the withdrawal OF their large deposits from
the Treasury the banks now strong enough
to adopt liberal policy on their part, aud by
generous system of discounts TO sustain the
business interests of the country. Should such
a course be pursued the forty-four millions of
reserve will be considered as money in the
Treasury to meet the demands of the public
necessity as the circumstances of the country
may require. Close attention will be given to
the course pursued by those who have the means
at their command of rendering all the aid ne
cessary to restore trade to its proper channels
and condition, with view of Strengthening the
hands OF those who carry out the. measures
sued for the prepayment of the interest accru-
ing in November. L. S. GRANT.
The Condition of the Treasury.
The following was the financial exhibit of the
Treasury department at the close of business on
aturday:-Currency, Qess amount paid for
bonds purchased in New York and not report
ed) Sl4, 9ss 81; special deposit of legal ten
ders for redemption of certificates of deposit,
S11 $50 900; coin, S., 02G 2s0I5; including coin
certificates So 225, 800; outstanding legal ten
ders, S355,00O 900. The above exhibits a de-
crease from Fridays statement in the special
deposit of legal tenders for redemption OF GER
thcates OF deposit Of SD 1876 900, which amount
was drawn from the sub-treasury in New York
by holders of these certificates. The above
amount added to the 81, 900 600 legal tenders
paid out by the sub treasurer in the purchase OF
bonds makes total OF S}5, 995 600 legal tenders
put in circulation in New York during the past
i've or six days, which, if allowed to fiow in
proper channels, it is claimed, would have in a
embarrassment.
ANTICIPATING THE INTEREST.
The Secretary Of the Treasury WILL not for
\ gold and the purchase of bonds. United States
coupons maturing November will be paid on
and after to-day upon rebate of interest at
the rate OF six per cent. per annum. The
amount of interest thus anticipated is H. 800 900
in coin.
NEW YORK VIEW OF THE MATTER.
dispatch from New York says this action of
the Secretary will bring sl0,000,0OJ into the
market; but as most of these bonds are held in
Europe, the relief from them will not be felt for
some time. The amount which will result from
the payment of interest registered bonds
will be about 81 900 900. The registered bonds
are nearly all held in this country.
Action Of the Washington Bankers.
AN ASSOCIATION ORGANIZED.
At an adjourned meeting of the bank direc.
tors and bankers OF the city of Washington,
held yesterday at the National Metropolitan
bank, the following resolutions were adopted,
and the rules appended prescribed:
Resolved, That in view of the present uucalled
for and unnecessary demands upon the banks
and bankers OF this District for currency for
other than business purposes and for shipment
to other cities, a very large amount having al
ready been drawn, and in view OF the fact that,
without exception, all the large cities OF the
United States have adopted similar precautOn-
airy measures, the representatives Of the banks
and business men of the District of Columbia,
having full confidence in the sound condition OF
their financial Institutions have united for ndi-
vidual support, and pledge themse yes 10 the
following line OF policy believing it to be for the
best interest OF the community and of the inter
est which they represent.
l Resorced, That the banks and bankers of the
District form themselves into an association,
which shall elect a controlling committee OF six
into whose hands any bank or bankers OF the
association shall have the right to deposit So
curites, collateral the value whereof is to be
anxed by said committee, as follows, viz:
Bonds at par; promissory notes at 20 per cent
Of their value; other securities at value to be
determined by the committee; and against the
said affixed value each bank or banker placing
such collateral in the hands of said committee
may issue certificates and certify checks which,
upon being presented and stamped accepted by
said committee, shall be received by ali banks
and bankers of the ASSOCIATION for their full
value In payment OF all maturing notes other
claims.
Resotoed, That this arrangement shall 20 into
effect on the Goth of September, and continue
until November 1, 1873.
REGULATIONS ADOPTED.
The controlling committee have adopted the
following rules and regulations for the associ-
ates banks of the city of Washington, ID. c.:
The banks and bankers of the association may
certify checks for their customers in lieu of pay
ing currency for all deposits held by them to
this date, but will open special accounts of cur
rency, payable in currency. The certified checks
VIII be received by the different banks and
bankers of the association on deposit and in
payment of notes due them.
Which certified checks shall be redeemed by
the parties certifying in loan certificates issued
by the controlling committee upon deposits Of
collateral security, as agreed upon at their daily
meetings.
Each bank will regulate its own exchanges
with other cities.
The controlling committee will meet at the
office OF the Safe Deposit company daily at one
O'CLOCK p m Tor settlement with banks of the
association. The treasurer William Stickney
will have custody OF all securities deposited BY
the associated banks.
j. W. Thompson, for National Metropolitan
Bank; j. q. Mckelden, for Second National
Bank William Stickney, for National Savings
Bank; L. .. Davis, for l. johnson & Co.; Geo
Jno. Hitz, for German American Savings Bank
Controlling Committee.
HOW THIS ACTION rs RECEIVED TODAY.
The issuing Of certified checks by the banks
of the city, who formed a clearing house associ-
alton yesterday, is generally received by those
transactng business as q wise precautionary
measure. Mr.: Stickney was at his Office during
the day receiving collateral securities from the
banks who have entered the association. There
is pretty lively demand for currency upon the
banks and banking houses outside Of the asso-
citation to-day, as the demand is necessarily con-
centrated upon them.
A Better Feeling I'm Washington To.
Day.
much better feeling prevails in Washington
than on Saturday last, and the general opinion
among bankers and business men is that the ex-
citement is virtually over, and that in few
days business will be transacted as usual. The
acton OF the associated banks of the city OF
Washington" relative to the suspension of cur
rency payments and the substitution of certified
checks, has had no perceptible effect on the
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