Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1873-10-30
Views of an Eminent Banker Oh the
Financial Situation.

New YORK, October l6.-The Tribune
publishes the views of Samuel c Thomp-
son, President of the First National Bank,
as follows: have great confidence that
this pauic will blow over more speedily
than any other panic of its magnitude.
Ny reason for this belief is based prlnc-
pally upon the fact that none OF the money
or currency Of the country has deprecated
in value. The $7500O,0 900 of greenbacks,
national bank notes and fractional curren-.
cy are all intact, beside the gold that has.
come and is coming from Europe. In all
former panics the disaster of the country
was added to the usual money stringency,
and banks were great deal more likely
to fail when run upon for the redemption
of their notes than they are now from
the demands of depo. itors tits IN this
peculiar position of our present currency
that, in my opinion, lies the eoundation for
a quick and successful resuscitation. 1t is
hardly possible that we shall not have D
superabundance of money within 60 days,
for one-half of the firms Of the country
have, for the time being, cut down their
business, very large portion of payments
are deferred, and the currency of the ma
tion. when it comes out from its hiding
places, will be more than the business of
the country will require. Still it would
be unreasonable to expect prices to as
sumo their former status. The banks,
with very few exceptions, are in a sound
condition. Their deposits are remaining
stationary, and currency is flowing into
the central cities faster than it is ordered
out. The banks in this city have in four
weeks liquidated their deposits from $2O7,-
100000 to $l460 100000; to do this they
have parted with about S30.000,0 900 of re-
serve currency, and contracted on loans
and discounts something over $50, 600, 900.
This liquidation is, believe, about ended,
although l should expect no expansion at
present, and I believe that the banks will
grow stronger.
The most direct and legal relief to the
money market, and in aid of the move
ment of the produce of the nation, would
be afforded by the Government issuing a
gold-note currency. based upon gold, which
might be deposited in the Sub-Treasury,
IN small denominations, suitable for circu-
lation in the West. It'll evident to my
mind that during the Fall and Winter
$75,0000o0 of such currency would be
taken into the interior and used in moving
the crops. The $75,0O0,000 would be re-
allied from this gold currency in my opin-
ion as follows: The imports of gold from
Europe during the Fall and Winter, l
estimate, will amount to 100000. The
gold notes Of large denomination now
outstanding would be taken in and ex-
changed for small notes to the amount of
500, 100000, and SIS, 100000 of loose gold
now held in coin would also flow into the
Sub Treasury; against all of these, small
notes could be issued and used as currency
to move the crops. You may wonder
where all the money is. | will tell you
The country banks, the city and country.
savings banks, and the trust companies
are locking up great deal of money to
their own detriment in repeated instances
When our correspondents have come to us
for assistance, we have asked them how
much currency they had locked up at
home, and we have been astonished to find
that manyshave three times the amount
of currency which they thought necessary
to keep before the panic. Invariably we
have told them to send portion Of that
currency forward, and when they really
wanted currency, telegraph to US and we
would send it to them without fail II
all the banks in the country would adopt
these measures, l believe $20,0OO.OO0
would be the fruit Of the movement. Much
has been said about savings banks locking
up currency. l can't help thinking that
savings bank. in locking up an undue
? amount of currency, commits financial
suicide, for by so doing they deprive en-
ployers of the means of meeting their pay
rolls, and if labor is not paid, those de
pendent on labor must and will have
their deposits out of savings banks.