New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-22
CURRENCY RESUMPTION.

OPINIONS OF w X KITCHEN, SHEPHERD KNAi1, T.
r CALHOUN. AND NEUTRALITY-SUSPICIOUS. AP-
PREACHING BY NATURAL PROCESSES - MONEY
NEUTRALITY-SUSPICIOUS. EFFECTS OF THE P!NlC
ON THE BANKS.
The question of an early resumption OF
currency payments by banks again the snolect
OF an investigation by TRIBUNE reporters yesterday
among the bank officials W. X. Kitchen, President OF
the PARK Bank said that while be believed the pooling
Arrangement was bad one at the beginning 1t would
beinudicious break 1t up hastily. The ParR BANK
derives no benefit from IT, but on the contrary rather
loses as all the largo banks must but Its erect was 10
save distress among weaker institutions, and cOhse-
auent reflex OF distress among all Currency was com
ing in pretty freely and would doubtless continue to IN
crease in volume HIS own bank giving as
mnch accommodation 10 merchants az 10 was able
TO- but it had paid out great part OF lts ueposS anu
was not able " give much as IL "OuId WISH funor
than this there hal been no practical SUSPENSION Inc
payment OF currency according TO each banks asl'S
was the rule throughout. Bank reforms would doubt
less grow out Of trouble, and far It would prove
70 have been beneficial panic Generalization was
one OF the evils which would be remedied, and he
believed the banks that had been in the habit OF over
certifying had already learned caution. The Farh
Bank itself had never done business in that way.
sbepherd Knapp of the Mechanics Bank No 80 wall
st. said he did believe II best TO force tull resup
ton OF currency payments just now Most OF the oAhSs
!
and some Of them might be seriously depleted
IL the understanding that currency would be paid
ont freely should get abroad. 1t better to let the
currency work Its way back gradually, and, with the
great influx OF gold here from abroad, he thought specie
payments might be the result. That Of course would
be better for everybody Although We could not use 1t
for currency, yet 1t Afforded sold foundation upon
which all values and all paper could stand steadily, ana
a continued apparent suspension OF currency seemed
lac emf of a
The pooling arrangement had been entered into by the
solid banks because the weak ones were endangered,
and it would be unwise to break II up before al are
fully prepared He knew OF intention on the part OF
the large banks 10 withdraw from IT, ana
he certainly had formed 10 such intention himself.
As to the loan certificates, they were already
being retired The Mechanics Bank had purchased $780,
600 of them the beginning order 10 relieve the ne-
chants aud 10 De ready OF an emergency but
recently they had returned them and taken back their
securities There had indeed, been more than twenty
millions issued for it understood the Committee
could issue al htitttn after the last ten million was
Issued He ibid not know, therefore, just how much
there was to be redeemed when they would all he
redeemed Other banks, doubtless found the loan GER
Geates very convenient Tue Mechanics had no for
them. 1t had continued to give merchants about as
much accommodation as they demanded, and its dis
counts had increased 100000 since the days before the
panic. One reform likely TO grow out OF the crisis was
a reform in the matter OF oyer-certiiying checks. His
own bank present required iul securities before
! certified anything.
p c. Calhoun. President Of the Fourth National Bank.
said there had never been any pra suspension. The
banks have all paid National bank notes. and there is
now actual surplus OF currency in all the banks.
man there yesterday rushing about to sell 100000 OF
National bank notes, and he could not nnd buyer The
currency coming in in great quantity faster than 1t
ever Gid before and because Of the accommodation
ad nv in tha hal
| vaults II with check for 500, $780, or
$780, he paid the counter OF course If the
Is larger say $1,000 or $1,000 he paid by certified check
RepOrterAs to the loan certificates Mr.. Calhoun, are
| they likely 10 be redeemedl
Mr. Calhoun-They could all be redeemed at once II
| the holders TO do it. We have been carrying
1890 of them, merely TO relieve the needs OF Gus
toners but could return them to-day, If wished
and take back our securities. But do not think il
best to so. We consider the loan certificates very
good substitute for currency and while continue IN
the actual currency accumuates. 1t il a draw
back any OF us TO make Of them Brokers' checks
all certified and always will be certified log as
there brokers' checks The pool arrangement of
the Associated Banks does harm, and tnay do good
The banks believe could all draw out of
IL now, but 1t might strain some OF
the weak ones, and again threaten the ner-
camille interests 1t is better 20 keep up the pool
although we larger suffer little by IT, than 10
and panic again The accumulation OF currency
forms very desirable TO facilitate, when
sary the movement OF the various crops But in
that particular matters exceedingly easy gentle
man from the South here to-day, who says that
currency enough n the South 10 the cotton
crop provided we give them slight advances FIVE
and ehdy bills, due when the cotton arrives you
may say that currency payments are resumed There
Will be formal proclamation OF resumption by the
Bank Compittee. Currency will simply assert itself
and the course OF the week every bank the CITY
will be paying currency as freely
J. +. Williams of the Metropolitan National Bank lad
time only to say when asked to the prospects Of AL
early resumption OF currency payment that he thought
1t best TO let it about naturally rather than to force
it by any formal action by the banks.
TIE IRON TRADE SUFFERING FROM THE sTRISGEscY
Tribune reporter yesterday conversed with several
extensive dealers in iron, both American and imported
10 obtain their opinions the present condition OF
business and the prospects for the future. Edward
oothout ofnthe firm Of W. Oothout Co., No 8 CliG.st
said that the iron trade now almost at a stapdstin
transactions OF the past month have been little
80 per cento those OF the time last year Money
does not come forward to set in motion the products Of
the mines ana mills and to move the crops. Moreover
dealers want blh confidence and ready means
| 70 sustain them In giving orders AT thu hsoin
ming Of the panic collections came In prettv
| well, but rs the alarm and the CONSEQUENT
monetary stringency spread the country the re-
ceipts eopp ed and now there little coming in MAN.
OF the mills and employing firms are embarrassed 20 mas,
their mon ana eher deier full payment give part Of
what ia due In orders bank the case OF the
larger mills and houses this difficulty is chiefly due 70
the limitations put on currency payments by the bsnks
Mills and firms which have less resources beside tronhl
from this cause find difficulty also because they can
sell tle OF nothing, and because their debtors do not
meet their obligations promptly Merchants cannot get
! ther money ana VIII not buy more. Some buyers
usually among the most Trustworthy can nov on,v