New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-22
FINANCES OF THE COUNTRY.

ronseqaenee but it viii relate merely to our coast
dofenges and not 10 offensive operations IN other
scar or AGAINST other countries IN other quar-.
tiers Of the gloee. NOW Then ~ 10 90 no, no,
The naval armament Of the country may be much
reduced ana especially the SIZE Of the ships dimu
ishes ON which Gag Is shown In the different
Of the globe and instead OF an expenditure OF
~iiSin 10 or ~ Sears when our expenses in that
department OF Government will he reduced at least 80
reduction ! oncr 1t as a sctoa to the expense which
propose what have further upon thus subject
not In Congress, hut before each Congress-, OF
subszug rst, lines Of steamships to various qiarIgls
Ton Of vessels % he employed in the commerce o
country aud subject 60 the authority OF ne T9ined
when IN, construction OF iron vessels was ounr~
t ,SaS roS WAS then ascertaincd
that subsidy Of SO per iron stc'asns nV irdc
ycats he employed exclusively ~ ~ nnbe% oi
veul0 lead 10 the construction OF % n,,rr. and
such vessels TOT All the commerce o. DE rn"tSe OF COZ
TO-DAY suppose, with the iycrea scd cost az
srueLug vessels ia THIS conntI AM VIZ ri a s,n
constructing them la England ana e s SpieSs
sdy 81 s. yer ton for b'e yta,s hs,,srd Nv Encland
corresponding adv antJgos were beSCHt" ~ EnSa
IL acou,re a control of the carrying trade
h. w.Icl Uuted STATES ulkht nc ouilooi III
80. a. ,hIs moi ~ "a means, perhaps, because the
'' uy - re'ie uayncnis hut az part OF great public
.,icv lr Which The financial condition OF the country
ihah changed. and Foundation ia'd OF "''h we can
.,Vuu.Is rely i0t continued prosperaH.
1uE TREASURY ACCUMUtATioNs.
Bp turning from Ills topic, which 10 you may seem
a., Oar away from the subject which ANNOUNCED,
venture 10 cali your attention. 10 passing to one or t~o
circumstances causes # YOU please 50 10 desig
nate them which have contributed to the present DO
rot tay "dlsastrous0 condition of things Most
tcrsons 1 suppose. Who sufferers, would
think "dragrcpab," too mild word Tor the present
condition Of A. have observed the opera
i've wears ans iact rs before you that during the sum
uct ths when there is Int little really necessary use
foi capital, the Treasury Dcpai nent has accumulated
{" the amount of S0,OOJ0tO, <2Go0OCO aud one year.
thius to the amount OF more than FDOloGW
Q tho. Tra "a |
responsible Tor Is dsn' 81 ,nretng each Autumn
inevitable which pressing IN proportion to tue pros
prrty oil tue country, aud therefore while 10 ne oOheu
Tor WITH some apprehension, still a. be re-
gardeG an an Incident IN operations which
M the contribute 10 tht public welfare, refer 10
she necessity Of using capital which N the summer
rronls accumulate great cities, for moving crops
The South and from the Wcst 10 the scaboard for
s>nsnrGJ for transportation abroad Tits Is
. natuih condition Of things In ordinary cream
trodIes a pressure III the money markc.ra
pressure whiou, by natural causes furnishes The
means az it, own relief, unless for example IN "a case
nc flow Of that money. taken tron Tue CIy OF
New YoIk To- DE West and South for the purchase
ard transportation OF the products 81 those regions 70
1tbcr nr.es money is worth more in the Ciy New
YORK taan to send Ia the south aud West
IoT tie purchase Of products there 80 thal'
UoustarA increasing pressure, which however, can
l.. Destructive nobody possessed OF means adequate
aud the capital Of the country would be temporarily en-
poyed for the purchase transportation of the
ucts ~ industry, and would then return 70 other chan
ses But IN four OF these hys years-lh every
one Que Sause '"'' existing calculated to produce
p,nc ana which in two Of those years, 1859 ana 1870
Yraetiee tolerated. by law which the Treasury Depart
iocnt successive tunes has condemned MT which, II
slsasters the of which he understood but
tie Of which cannot be 1ofcioid and mat u
fhe practice Of banks taxing money upon deposit aud
taking interest for II. Applause
BANKS RIG A. 4 CHECR 10 PANJcs.
IT, the first place matter Of principle, bank is es-
t,hshod upon the idea thai the people organized
,suttalist and have money lend not that they
borrowers of money The banks institutions cstab
lisbed 10 a panic When Spectators are DIS
dressed. aud when merchants are fearing for conse
ouences it is then that the banks Individually, and
thc banking system as a whole, should he a.
Inn aud as stable the treasury OF the
Iinited States tApplause And, without much per
,onal Xperience banking know this perfectly well.
that merchant dealer IN goods giving ms paper on
Sime will find by the doctrine Of chances that II ma
fures on different and he has the by the
examination of ms books, 60 know what he to be
S9l n upon measure Pay of the maturity
OF paper, but paper gwen ON can can natures, moi
~ men appausel and there is business that re
s ought to resist the effect OF pracices oi mat
sbe business OF the country, West and Last. from this
prscuee' Imagine farmer ~ souny ioTn w New
he may want at some future uIne' but does NOT KNOW
when II ne can a national bank aud deposit that
money. receive Interest Tor the nnr II is tit ana eau
for II when he chooses he very likely 10 dispose OF ~
90 usr when he has occasion 10 1t.
oy Ioaning II 10 somebody upon time, and
What Is the condition Of the bauk that pays interest
NJ does not dare lend That money 10 business men
IN The community upon time. because the hank does not
know when 10 he called upon "a respond 10 Tue &c
uoslt IL II sent 10 NeWNOrk or Philadelphia. or some
oiler clt, aud deposited III national BANK thefe,
rrd AZ "a matter of fact Of to this city.
What il the condition Of the bank IN IRIS city II docs
moi dare t. lend this money by regular Discount
,n commercial paper, hut lends money upon stocks
upon merchanos-e--you Know Tue process peter
of the way II is done: bnt the consequences. In
lsC9 ia September. had some means o KNOWING the
facts Ia regard o! the banks OF tins city that
lad small loans upon call, and did not dare
=" Az the men L. whom they had nude the
o"hs ,bey conId not respond Now consider boT
nuinst tins alt the substantial business INTERESTS OF
a. abundant the whole country East West Is de
pTVed of it. Surplus money when cannot he "hl"hec
forUard Ia the city Of New-YOrk. What
~ the effect herei II must he used
chants whogiVe COCO lal"t 10, ~ w" ~, i .TS ~
al paying II when natures nut u j. ioaheo 10 persons
who expect To gain wealth 10y speculation; aud the
Iresent consequences were TO nS 49, 49,, ~
y the law az trade, th"t whenever money
make large fortunes suddenly younc men persons IN
naneiary capacities tempted l" use iuhs tha q"
sency N 10 speculation stocks. So that this practice
Do an evil 10 the agrcuiuiaiiO Tue cohhtfS INSTITUTE
and II n AL evu To the cltN'
TIE IFTECTS THE PRESENT FANkING sfsrls.
Nov then venture the opinion that, this year, with
snoh aid 40 The Treasury Of the UEited STATES would
have furnished you would have met the demand for
money for the produce OF the West and the South with
ont difficulty IL there had been snperadded 70 this
natural and necessary condition OF things the demand
a., nancy nv tens o. millions, under the
sys,e,n at which 81 have been disconrsing Banks
Su the West East. every where desired 90 get pos
session OF Their finds especially when ,ney were up
enough 10 meet The legitimate demands OF trade and
Won meet the accumulated demands growing out
OF this practice of the banks OF borrowing money anc
having Interest for II
me answer. l suppose. VIII Re- that II Congress by
sBalY flF ueuf ~ bN Ma