New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-12-04
FINANCIAL THEORIES TRAvERsED.

| inc report OF the secretary OF the treasury
ana those parts Presidents relative to the
finances were the subject OF general discussion In Wall
81 yesterday great many bankers and commercial
men confessed that they had not read report the
message carefully but from their summary perusal they
were NOT disposed to favor the views OF the President or
the secretary on important matters Of finance.
Tue senior member OF one Of the largest banking
houses IN the city said that proposed policy of egis
atng ior the prevention Of interest payments by Ma
toha Dahks was perncious and puerie The Secretary
might well propose some legislation by which the crcu-
alon OF the banks could he protected but beyond that
he should be willing TO let business take or itself
Let people understand that The Government not
pected TO take OF the business of private
individuals Then they can choose with whom
tney VIII do business, accepting those who
40 business well, and avoiding those who
DO business badly As 70 the proposed Of taxa
on this gentleman said that the should be replaced
on tea and coffee, such ordinary necessities If II is
pe replaced al all as that tax falls everybody very
lightly Is not burden TO any and docs not protect
damage any corresponding branch OF industry Finan
cial legislation, however by the present Congress
IS not likely y AMOUNT to anything very sautary.
There were too many minds 10 satisfy. Every member
doubtless hoda scheme OF his own which he deemed the
only acceptable scheme, all Others being worthless.
With so foolish Secretary Of the Treasury, al
most impossible that the financial legislation OF such
Congress can result in permanent benefit. II there
strong mind at the head Of the financial depart
ment who could mark out line Of policy for Congress
to work up to, I'VE might secure some very excellent
legislation, but Il, seems TO be impossible now"
Another gentleman president Of a large bank which
does not pay interest said the proposed abolition Of
interest payments would be very beneficial If il could be
extended TO State banks well az TO the National
banks for the system Of paying interest Is certainly
very unhealthy system, and s great part responsible
for all the evils that beset the money circulation But
the United States Government has power to prevent
the payment OF interest by State banks private
poratons and to egisate against its by the National
banks viii greatly diminish the usefulness of the
National banks and eventually TO drive them back to the
old State system. II would have been well for the
National banks If the Clearing house Association had
agreed TO abolish the payment OF interest when the re-
port of It's Special Committee recommended such
measures legislation by the General Government on
such a matter would be unwarTanted aud disastr
The private banklnghouses and trust companies Of the
period would probably be greatly assisted il their
present difficulties by such legislation, but they have
seen about their last days, and il il advisable TO
extremes for the purpose Of boterng them up
On being questioned relative to the payment Of the
bonds OF 1885, which mature Jan. !, 1874 and not
issued payable at time after specific day at the
pleasure OF the United States, the other bonds
generally, several gentlemen OF financial prominence in
the city said that all governments find il necessary
make their bonds payable after certain date bnt 1t is
always the custom 10 pay them on demand after that
date unless toe Government means repudia-
ton. THIS country has had little expe-
rience in the payment OF bonds maturing
and for the comparatively small amounts represented
by the antewar series OF bonds, there would be little
difficulty 10 settling any day But the large
amounts represented by the series would render
impossible for the Government bay up any series
given date, unless it had a heavy sinking fund
established for the special purpose. This is with
"A
IRE" In this instance TO be equivalent to granting the
Government an indefinite time for settlement
The word pleasure" ls in fact nothing more
than fction" for the purposes stated. The bonds
OF Sc are due the LIST OF January, 1874
and though they may not be paid that day the In
rorest continues untn they paid, and II IL quite
likely that no holder who presents HE bond will be
fused his money. II would De very wise policy pay
these bonds promptly, AID, when they are not pre-
sened 10 advertise for them and stop the interest
Is in fact necessary to sustain credit abroad where
are soon 70 have good many other securities
turing and II We lack the money to buy them IL
because have disbarsed much buying other bonds
for the last six years"
II ls the opiniou OF bankers that the Presidents and
Secretary Richador's recommendations clearly mean
imitation, and that the policy 81 Congress will probably
be in that direction. Mr.. Camp manager Of the Clear
iDghouse, said yesterday that the banks were daily
growing stronger and That the certicatesiwere steadily
DtihS uS"h LuOugnl DC great lohy w
initiate the currency now, when the country had so
nearly reached "hardpan" THIS he believed TO be the
views Oh bankers generally and such was found ~ be
the oPl.ou VI all with whom the reporter talked.
e~....~ -
RAILROAD SECURITIES AND DEFAULTS.
An effort Is making to furnish facilities for
dealing IN new railroad bo.ds which the lists
of the Stock Exchange hut in which there large
traDsachone One proposition is TO establish branch
department In the stock Exchange for dealing specially
in such securities. There a meeting OF the Govern
ing Committee Of the Exchange last evening TO consider
| the matter.
committee OF stockholders Of the Toledo Peoria and
Warsaw Railroad, which has deiaued on the December
interest on s first mortgage bonds have gone out over
the line to decide to the best measures for s relief
Charles secor, who has been identified with the road
since lite origin told TRIBUNE reporter, yesterday,
that their financial EMBELLISHMENTS were caused by
the difficulty In finding al Eastern outlet
TO their business. They connect at the Illinois State
line with the Pennsylvania Central Railroad, which has
failed In lts contract 70 their freight a. rapidly al
1t has accumulated at that point They have thus been
unable TO do than thirds OF the business which
naturally belongs TO them. He uncertain when the
coupons on their bonds would be redeemed nat hoped
that some advantageous arrangement would soon he
| made.
meeting Of bondholders OF the Union Pacific Rail
road was held at No IS, Drexei Building at IL m
yesterday to eject trustee 20 I'LL the vacancy caused
by tho death Of Oakes Ames. Mr. DUFF presided. Ohver
Anes of North Easton, Mass. and l. r. Morton OF the
clearinghouse OF Morton. Bliss Co. we're put In nom
nation and the former elected by majority OF 50
bonds, the polls remaining open until after D. m to
enable come bondholders TO return home for Their
bonds, which they required TO show before voting
WALDST. NOTES.
A dispatch was received yesterday by
Thomas Denny, IT,. from OF the counsel employed
by the holders of the syeelaax bonds OF North Caro-
lima conduct their suit against the State. by which