The New York herald., 1873-09-29
A Liberal Bank Policy and Generous System
Of Discounts Suggested.
Prepayment of the November
Interest Ordered.
Banks of the Capital Organized as
An Association.
THE WEST AWAKE
Chicago Feeling Strong and Hope
full of the Future.

Chicago Feeling Strong and Hope
full of the Future.
The following letter was written to-day
EXECUTIVE MANSION,
WASHINGTON, ID. c. Sept. 28, 1873.
Messrs. Il. B. CLAFLM and CnAs. L. ANTHONY.
GENTLEMEN
In response to the Views you have communL
Gated to me touching the present stringency In
the money market OF the country, and the neces-
sary steps to restore confidence and legitimate
trade and commerce, have the honor to commu-
nicate the following:-
The government Is desirous OF doing all In its
power to relieve the present unsettled condition OF
business anars, which is holding back the immense
resources of the country now awaiting transport
alton to the seaboard and 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 dis
asters to all classes OF the people To re-
establish this feeling, the Government is
WILLING TO TAKE ALL LEGAL MEASURES
at Its command, but it is evident that no govern
ment effort will avail without the active co.opera
ton Of the banks and moneyed corporations OF the
country. With the fourteen millions already paid
out in the purchase of the government Indebted
ness and the withdrawal OF their large deposits
from the Treasury the banks are now strong
enough to adopt q liberal policy on their part
hv ~ loo tn
tain the business interests Of the country. Should
such course be pursued
THE FoRrY-FoUR MILLIONS 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 necessary to restore trade
to Its proper channels and conditions. With
view OF strengthening the hands of those who
have already been issued for the prepayment Of
the interest accruing In November.
U. s. GRANT.
A Bank Association In Washington.
WASHINGTON, Sept. %, 1873.
At q meeting OF the bank directors, officers and
bankers OF the city OF Washington, held the 2s
inst, the following preamble and resolutions were
adopted, to 60 into effect on the Goth inst:-
Resolved That in view Of the present uncaed for and
for an
1sf to a and II OF Ss
fact That without exception the large cities Of
sns
Of the District Of Columbia, having full conf
have united tor mutusi support and pledge themselves
R%S s Re sT is
themselves associaton which shall elect
sT ). ssHsS By ssd COMMITTEES s1e 1elS~ sltSl VS.
ss Snas at at % Of
bS the aDf against gain the said
in the hands Of said committee may issue certificates
na s by sS s h @
By all banks and bankers 1 the association for their
the 18th Of september and continue until November j,
Signed sAggSH4k AggsS HFgs2f0HSAs s4Ek BANK
i,REEoS rRREEEEpNSANw,sy wyB4H1 BANk p.vv
SzXis SzTISSAf jdassSH ssSisSss 8 sSls 51Sk S.yK
The banks which did not sign the above agree
ment are the Bank OF Washington Riggs & Co.,
National Bank OF the Republic, Farmers ana Mech
The rules and regulations OF the associated
banks OF this city, adopted by the meeting, are
follOws:-
The banks and bankers Of the association may certify
ali .T hfs e 81 e in 10 eI tho Of but w %
the csIsa cheek. VIII the
payment Of notes due them which certed cheeks shall
issued By the Controlling COMMITTEE upon deposits Of
As agreed upon daily meetings each bank will
regulate its own exchanges with other cities.
III. sss pesoss os%p.ny daily eeocs sHs R%?F M
securities deposited By me associated banks:
S0nro,ling committee was appointed by the meeting,
for 9s s"f s:ss%a .s
William stckney, for the National savings Bank J.
American Savings Bank.
The action OF the banks meets, partly, the ap-
proval OF the Treasury oficials.
An impression prevails tonight that those banks
which did not sign the agreement Will do so in less
Financial Affairs in Chicago.
CHICAGO, Sept. Is, 1873.
The Clearing House Association OF TINS city held
an adjourned meeting last night, which was at
tended by representatives OF all the banks be-
longing to the association, including those which
suspended on Friday and yesterday. The CON-
mittee appointed on Friday night to consider and
report plan similar to that adopted in New York
and other cities providing for the issue Of loan
certificates, and the payment Of checks through
the Clearing House only, submitted two reports
which we're essentially the same, the only differ
ence being that one recommended the adoption Of
the New York plan in all its details, while the
other recommended the adoption OF the
New York plan or something similar to
u. Alter prolonged and somewhat
irregular discussion, in which the representatives
OF some Of the strongest banks opposed the adop-
tion OF either Of the reports, both reports were
tabled by majority vote. The situation here s
therefore, essentially unchanged. A considerable
amount OF currency arrived here yesterday a large
nortion Of which went iuIO the hanko ond