The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-02
The First National Bank,


Richardson for q IDOL made great mis-
take, for he knew the Secretary like q
DOOR, He believed in him, for he was o smart,
shrewd fellow. and in matters OF finance thus far
ne had not committed any serious bunders, con-
sldering the circumstances by which he was
surrounded. The idea OF the Four Hundred
Million bill becoming law did not righten him in
the least. Nor ought 1t to frighten any sensible
man VINO understands anything about finance. He
did not look upon 1t as expansion. It was, in re-
ality, nothing Of the kind. 1t was a necessity. In
his opinion 1t was all nonsense talk about Its in
terfering in any way with the prosperity OF the
country. He conceded that In time there might
arise necessity for another extra issue OF legal
tender notes, out he did not think 1t would create
any
DISTURBANCE IN THE MONEY MARKET.
1t was true that the Four Hundred Million bill
was step away from resumption OF specie pay
ments, but his idea was that people talked the
most about resumption who knew the least about
1t. 1t was sheer folly to think that we could re-
sumo now and he believed that solid financial men
would say openly that the -Four Hundred Million
Dill was not thing to be scared at II they only
spoke the truth
In alluding to the petition sent to Congress some
time ago by certain persons, asking for resunp-
uOn and contraction Of the currency Mr.. Thomp-
son said that one had only to glance some or
the names appended to it to see that many OF the
signers really wanted expansion. In explanation
OF this view OF the matter he referred to the fact
that 1T was blazoned first in the petition that the
This TACT had Just the effect on the West ana South
that was intended by some OF the signers, IN his
opinion n ana the cry went up What are these
There were among the bank officers In this city, ne
said, many who were expansionists and others
who were hard money men. Those who were In
natOnists as well as the others, in most cases,
argued on the financial question simply from
THE CONDITION OF THEIR OWN RESOURCES,
each one Tor himself and his interests and those
Of his bank In asserting that he did not consider
issue OF the extra slSOoo,ooo. an actual
expansion expansion MT MT. thompson said that he was
he had already made use Of before he would be
called upon 70 use any OF the ooOO In other
present outlook, to 81 OF the $4,000 900. it
nary emergencies wnich he believed quite proper.
..Only look" said Mr.. thompson, ..at the nix the
pano he had Stopped p issue sae tina.
come OF the government, and, IN addition
army the ana se na W &c. ssd the ss
meet pension rolls TO the amount Of $4,000, 900.
What could he dos He did what he ought to have
DONE and the CRISIS passed over. l think he Will
s2e,ooo,ooo, II compelled to use any II. He was
what he was going to do with the s4i ooo, CO., He
replied, 4 win make use Of it II must, and will
not touch 1t II can do without It, That, think,
would ask him what ne
INTENDED TO DO WITH THE EIGHTEEN MILLION
DOLLARS"
In relation to the proposition now before Con-
gress 10 increase the national bank note clrcula-
ton, Mr.. thompson said that 1t was folly to sup
pose that the $46,000.00O which it proposed to
issue should be given to the South ana West alone
SAID he :-"HOw can IL be DONE There is CAPT.
tai there to establish additional banks Look at it,
! A man who wants to set up bank has to purchase
the government bonds. He pays Sl20 for a 500
bond, and he gets 500 only on the strength OF this
! from the government IN notes. It's clear loss or
$50 on the 500. How can he establish a bank IN
/ III
$1,000 to start with, all very well. But it doesn't
look probable that any man would enter into such
a profitable business as that.o
The American Exchange Bank.
Mr.. John S. Coe, the President OF the American
Exchange Bank, took quite different view
of the Four hundred Million bill and the
action of Congress from that taken by
Mr.. Thompson He believed that 1t was
wrong to give the Secretary OF the Treasury
the power to issue any part of the sls,o0O,o0O at
his pleasure. The power was altogether too great
to be placed in the hands OF any one man In the
country. BY using 1t he could at will disturb the
finances OF the country. He believed that the bill
was wrong in principle, and that the finances OF
the country would be much better to-day II Con-
gress had let them alone this session. They would
have, in fact regulated themselves. The only
way the finances OF any country could be made
solid, SO to speak, was to
PLACE THEN ON FIRM BASIS
He had no doubt bur that the Four Hundred
Million bill would for time stimulate
~ would be-" said he, hike the whisEey
pretty comfortable; but by and by he wants
another and another, and as he goes on drinking
drinks become necessarily shorter. That's the
way 1t Will be with this imitation business One
9Se9e w a BY
man who has taken so many periodical drinks OF
whiskey, after time 1t viii become question
/ and dtA n dbl t~o
mems or lie down, send ior the doctor and give up
his drinking altogether" Mr.. Coe remarked, In
bank note circulation, that 1t was absurd to talk
about Congress apportioning notes to any partic-
bit said he, .'if every dollar OF the national
bank circulation were deposited IN one interior
town OF some one Of the States. It would have to
come out and 60 where capital was.n
The possibility or a neD issue or fnconw,yfole
paper Iregard aoith anadzement and dnrietu and,
IN my Judgment, such an issue ,co,id be a detri-
ment ana Snanse-CHARLEs SUMNER.
The Metropolitan National Bank.
The President of the Metropolitan Bank was I'M.
willing to talk freely on the subject OF the
Four Hundred Million bill. but IN brief
conversation the reporter had with him
he declared that the issue OF the $1s,00o,ooo
was q good thing for the country. He
said 1t would be folly not to increase the vol
ume OF the circulating medium now. The needs
OF the country demand 1t. He had nothing but
feeling OF PITY for those men who talked about the
changers OF the future" that would be brought
about by the increase. They did not seem to take
into consideration, he said, the TACT that since
twelve years ago our population has increased by
millions. And yet, when 1t was proposed to issue
en- ugh currency to go around howl was set up
about the ruin that was TO be the result. In his
opinion II IN two or three years from now another
issue would be found necessary and we we're
In the same position we are now, he would regard
the fact as an evidence that
THE COUNTRY WAS PROSPEROUS.
Talk about the legal tender being only so many
promises TO pay,n said he, "why, they are guar.
anteed by everything that can be called the prop
erty OF the United States. They are guaranteed
by the same authority as the seven.thirty sondE
1Nr az instance n AND man L EllIpg 70 take !.