New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-03

SeYors Pcdss Exchange received The subject matte
The resolutions are az follows.
e, li hf 'Se s 81 d. ~ av of lie boes IN nego
tstins foreign exchange therefore belt q, ~.
oued That respectfully sBgSe.t TO the seeAry o me
Treasury the following plans for relief in this eIsoTn-
upon ,a.cio evidence that cold has BEEN pse upon O.
credit q the GATED States, to be used solely IN purchasing
coad That the President Of he United aud the Secretary
81 Tressury respectfully requested 70 order e ns
prepayment Of ouanu Of the Uaed states due Jan J.
While GOVERNMENT dong al in is power 20 si s,
the present unsettled condition Of bushes afrs' sIs as'
announced BY The Presea eousEAne IN az "a act 70 Assp
1S Co.., h. s,-sS upos ttsm Your srst resolution prs.
desire to exchange coin ENGLAND Tor United ssie, noie. m
England Pi United Tie euTen naiks
rate n Nes ioIE h would inoiye he ssT.a. a. ne e M com
beyobd rs ordinary receipts aad would he Obliged = ss NE CON ~ q
ndoc he Tes Department 10 loan nted states hanks in
ne .s. %2" s ne s Treas su yG e n "a hosy Of S Ue
collateral security or which here no Ht6oV u Jaw ~ ies
Secretary Of the Treasury loan notes upon pes Of CON he can
loan 9sP upon peise 81 alsf 9rSps' I,oNuarS power
well most dangerous business to engHse n and whsa ny u
Mert would deter NE from Undertaking a me 9e.leii9 o. G
absolutely prohibited By lay TIE S9 asS bel1.1s
si unnesssaTT for me refer to N, 9Hy lSa s
Which "oae aI an sismp, seo3h o ma ~ one. 81 he
lean Of 1888 or the ooues commonly called rye o. ~ @
s 1 b ~, nsIr nd IN ,bs SpiBies The lev odeers
rsTnnsrt or.p Under these unstanes rou vii perceive
While crest respect gentleman compag the Ne ors
Produce gielsnee compelled bg ,iews Of hs sE ara o. 70
dur respectfully decline to adopt the measure which your rs'0aon
pTOTO have ih a1n0I to BE- very r.,Pssie q, III, ,,.,r
The Chamber OF Commerce 81 Charleston, :; G. pc ,
the purchase with H. at that point OF exchange on New
York. 20 aid those engaged IN forwarding the COTTON
crop tOlthe market The following letter was sent IN
ans va ~ '''' TssAsrnr DzpAnTxryr oc 1873
SAMUEL = TrPFsA prelHf claab'r Of co~1t c"ar''
1vs the honor 10 aenoved, q The memorial Of the
O. af To
The United referred Department Which, aer ens
nv raesi5 hst tbe . Of $500 600 be- placed ard main
tsni deposit With he Assistant Treasurer Al Cha esioa 70 Dc USED
comply nth the would be neessry for the Treasury
Depsr-lt send currency b Charleston from tine 70
time and 20 buy viii i exchange % NeSl0A ia competition VIII
should @ fsqaest be granted hundred other places The county
might with equal propu,t a. or e same raiei AL Al slA q.
gaeed In an extensive business ding sni r,gng the rate
money raised BY TAXATION ONLY io the purpose % eafus on ne
eeui Tou be eupl3ei 60 YER irse amount ~ a naas,s n,
Win regard the proper management o. he Treasury Depart.
cline al sr propositions nom othes places anu Toa request ul'
''fIe .ys f honor 10 he sl yr vopr
WE. a. RiCHARDsos seeretarv Of tbe Treasury
ACTION OF TIE TREASURY TO RELIEVE TIE srRSGENcT.
The Executive Department OF the Government was
anxious to do everything in ITS power, under the law
and with due regard 70 the Of the Treasury
and maintenance ofipubhc credit 10 alay the panic
and 20 prevent disaster 10 the legitimate commercial
Industrial interests Of the hut was FOUND
Impossible afford the relief any OF the many forms
in which that relief was asked 10 was decided there.
fore 70 adopt the only practicable course which seemed
10 be open ~ IT, the purchase or oonds LOT lne shs
fund 10 such extent as the condition OF the treasury
would allow, and thus release considerable amount OF
currency from its vaults Purchases Of bonds we're com
meuced on the morning OF the 2Oth OF september ana
continued until the 24th, when 10 became evident
that the amount offering for purchase was increasing 70
extent beyond me power OF tue Treasury 60 accept
aud the purchasing was closed after bonds % the Inodnt
OF about $4,000 900 had been bought and without tle use
OF any part Of the S4C00OOO Of United states notes.
generally known as the reserve. IL should be stated
city of NewYork who insisted with tgeat earnesness
that It the duty OF the Executive To disregard any
ana al laws WAlch stOOd IN lle way VI aAoIahs me
relief suggested by them-l proposition which indicates
the state or feeling and the excitement under which
apphcauons were maze 20 me Secretary on lle treasury
~ the pubic money. and which, 81 scarcely ueces-
sary 20 add could nor be entertained by IN or
the Government 20 whom II was 1fdrseI IIe.e facts
rcctcd ia order 70 lay before Congress ana pace on
partment vas asked to do ana what 90 ia the late
he currency paid out Of the Treasury FOR bonds did
much q strengthen many saving nduk ana 10 prevent
a panic among their numerous QcpO.t0rs, who began
RIM 1pon those useful institutions ~ wOuld inevitably
have caused widespread disaster AID distress II also
some extent But the loss OF confidence - The value Of
a great amount OF corporate property which immcd
With largelyndebed corporations the disrust OF the
sOvency Of many other iusttuOns the doubt 20 the
posed TO be greatly extended, and the legitimate ef
feot thereof u disturbing the business " the country
might t7 added 10 the circulation already existing.
PAfMENr OF INTEREST o. DEFO-lr PEBNICIOUs
PRACTICE.
Confidence was 10 be entirely restored only by the
slow and cautious process Of gaining better knowledge
Of true values ana making investments accordingly aud
by conducting business frmer basis, With less linda
ton and more regard real -ouudness AMI intrinsic
values There can be no doubt that the practice by
banks Of allowing interest on deposits payable ON de-
rsnd il pernic oS and r8ugbt WITH "a ger aud cuha
"a ~ a
era business interests. Deposits payable on demand
should be limited 90 that surplus which individuals re-
quIre and above their Investments and no part
OF That from which they expect an income. such dep0s
!ts are comparatively stable M average amount ahi
proper limits which prudent bankers know how 20 de-
ternine But deposit accounts are employed "a tenn
VI money those cities where such interest Is paid
ana where speculation Is most active, at scl-
Secured else where With The dr5t return OF ac-
t,,ifv in iegirmate business these tempo
sudden withdrawal the Vbole business OF ne banks,
both affecting the legitimate dcp0sors on the one nald
by excitement aud dstrust aud on the other creating
condition of things IN winch the DOrrOWers on Cd are
also unable 10 respond The banks have borrowed ther
Spectators, who by It's use nave contributed 10 lLae
the prices OF the stocks or mere handse winch have
been the subject Of their Apecuiaious. The Speculation
wants IL To carry the stocks I'll be can dispose OF them
borrowers all want 10 at the time, and Of course
stngepcy is Developed which spreads distress through
the country. Tue system creates immense amount
OF debts payable demand All OF which TINS suddenly
ana tedly mature at the rst shock of ftnane
commercial embarrassment m the country and ~ the
time when most needed by debtors and when they
are least able TO respond There Is no safety for corp
TatiOns Individuals whose capital employed n
wholly mostly borrowed on call Many savings banks
were protected from ruin IN the recent nancIal excite
awaiting themselves OF provisions their rules
requiring 60 days other periods Of notice before pay
depOsItors, thus making all t1eT deposits payable
time. Every cautious and well-managed SAVINGS
institution has such rule among its bylaws.
Without attuoutng the stringency IA the money mar
kCf, which need every Autumn and
ally at other OF the solely to this practice
OF paying interest upon depOsts in the large cities II
evident that when money less needed IN legitimate
business the practice encourages OVerTaing and
ulaOn, always detrimental TO the best interests Of the
country and the bad effects OF which upon those inter
ests become more apparent and the disaster wide
spread when the necessary contraction begins to be felt
.LLAA- nLLI ~