The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1877-09-14

evs~tary ~hwtMans stat~sssnts ~ Mans.
A~sa talt~a IN ssu~stAss tarts ttasi.a ai

1HE WANA WkSkHNESs
vvv~tary ~hvvs.an.s statements as Mans.
N~sa talt~a N sau~slksa ta~s ttatt.a al
tttm.
J. w ssisnek.fs. The friend aai liysarlt,f
y sisrf Ia#liss rha~s, nriles sie following 10
The New iasL HrHtit
In hir sl~srl, "A ManMfisal. Mr. Jsitn sltet
man nsa.iu rvtfala statements. tlr lui.ta IL
which was te create tssiisf In lii. l,ai4,e nuid
that there " vast accumulation, " unl,a.asl
and nhl"Anal.ie paper nloIsc, ~ this iimo lYitg
i'llu and unemployed IN The sAnlts. and II iiia
cnsnms,rl ~ thr national hank. nTlnts atu
new deposited with The treasury. swss Mf. .t,ln
sherman. "hy private corporations. hank. and
individuals. s57,oninp, III ~hei, ti,er. ~,fu
Deposited is thu national tants nj ilu dat. ~
their art ~ias.innt. nss.lr June 12 4ii tpu. .t~U.
Ad The. III, national hanks = have. lii tleea.h
reserves held ~ thcn,, VA. tan. .uU n,nrn than
tho anonns required By Law, thus CLEARLY .,,ew-
Ink. aid Mr. John sherman. "tl,ai tic,. i~no
wAns ~ currency when demanded Tor tho ~
qnireinents ~ hnSilM~s.
There II no installing Mr.. sllcrmAna de<isns
In making there statements. ilc Intended IN
create lslicf that The national hank. have iii
their vaults and 1t tinir command srT.HD.,HU
" surplns unemployed money, which tlay arr
reaty IN loan uis,n adequate nrssriicr. hut fur
which there IL no demand ~. .5u. .Vt0 lying
illn and unemployed In tho curtmis oft Icsl-
rrAl trcAr.iry, and tl9. tD0,ND iytlg illu and
unemployed In their own vaults.
Now what Aso tho actual facts2
Al examination vi tho condition III thu nR~
tionai banks un THO 2Al III june last. NJ ml,.
I,cArS from thu COmtarulles's statement. si,oa.
that they licl nj tiin close III bsi~illrrs i Tint
day certificates of deposit with tho Federal
Treasury amounting ~ Sit.4t0uu. if theau
certificates u dcIn@st represented Idle, un.nl-
ployca. aud surplus funds, they nssufeaIy
would n.t appear among tho ia~ful.n,nl,oy
reserves" VI the hanks. Int they d. NJ Als
trAr, and without their AptpArAfcc there ii,u
returns made by the banks on tho 21si IT june
laHt would show them 70 b. short " tho ro-
gating nearly 42s. .0OO,O 900. II happens, n,oru-
over. TINT thcsu certificates VI dcjnrit form, ~
w Mcu, mot only MI integral part Uf ile lawful.
money ruserseH 0f Tie national baiiks. bni aru
used TOR clearing -huase purposes alan. and ia
this respect perform = most important eIlirc.
II IL Very doubtful, indeed. whether tIiu
flt, ,SD0. .0O0 II United t.atcs notes. ~ repre-
scnt1i by the.e certificates Mr. john
sherman HNcks ~ make w believe Ar Idle AMI
surplus funds do not perform functions moro
04tCnsisG and important than tliusu performed
istunce of lhc.a certificates does nut warrant
thu bclIef Mr.. John khcrman seeks 70 uriab-
llsh.
Mr. John sherman alleged. Alsn, In LI~ speech
It Mansfield, that tho national tal,ka l,elL III
THUR 'cAsh reserve. on thu 29d of June Last.
~. 2.600.000 moro than thu amount required
BY law Il would bo interesting 10 have Air.
john kliermAn point out whore this tl2. Jri i.vuu
excess of .cAsh reserve il found. Tho rasl
reserve y made np q fo',r items specie l.ral-
tender nut0s, United stAtcs certificates III DO
porit AMI the pcr cent. redonption fund.
On tho 29d u juno last the national hanks
held, according III the statement VI thu Comp.
troler, u specie, t1t ,1t0 Ill, u legal t.iplers
t7H. ,3A6 0f United htAtes certificates u
deposit, ~, tlD, ,D0Ot and ~ lAr cani. rutismj
of tho national hanks, sibs jtju nS0. The state.
n,eni u the t'oniptrpilur doon ilot ~how The
amount III cash reserves the banks ought u
have held on tho 22l VI June last but A.s,,n,-
Ing silOUUO, IND ~ In correct estimate ttLa
amount =. tho date = shc lat preceding state
tiit, Ton 1)V) and W. fnh tlu amount " .rasii
reserve im oAsrss VI Tim amount required Nv
law to lu slightly over 4tH.NO. ON, ~ Mule of
Mr. HheItnHna rvpun nearly t10. .UOO, ,UOO Tear.
", Mr.. hllu.rnnns "eAal, reserve In csses@ III
tho amount r.lairca BY law eAist4 somewhere
Onc " tlls n.ushnls by which The Inila,io,li#is
Ara confronted With large aecnnlulaiiolH ~
" nirpns PAPER ulo.ey'' Ia tho national halks
II N follows; Tho banks ara divided nl1
banks. and New fufk city banks. tiid,f
tho National Hank arts the : eoiintf, bnlL-
may dpl1,a.t curtair IUr ceit " their reserves
with thu "cliy hanks ilosatad III Albany,
Baltimore. lioriun. Charleston Chicago. ~.
einnali, Cleveland. nutrai, 1.Aialssilla. Nil.
l'tttslutgli. lisal,nond. ~. Louis. Aan f'a,
eis'u and wA~hlliEtuto, and it inr1 llu elis
banks may drtprii safinin lsr ,slit. " Ihuif
reM,rses with tho Nov fuik ells hanLs.
lint Mhiiu II II quite trio that lasu ,isrsils ~
Tho country banks With the "slty hanks,
and With III. NeM fnfk banks. a.i.sitl,leall,
'lAwiul.nunes reserves. Il II perfectly nell
ki,uwn that The "riss bankH al.l ih. 4 New
York ba,.ks inan tlIssu IelA,silsl jisi - thy
loan the aris.rlta VI their rtlyat. el,nten.ts.
lint Il Il o,,ly liy counting tlivAe purely i.i.
neal reserves ~ !usl potential ..s.is.s timt
money Tor wLsel, they can iiM 10 employ
nlriit.
An example will illustrates On tlu ittli VI
Aluit iAsl l, MD ncunlltry haiiks llad .Hi de-
ls,st will, ir0 "city banks TO, ,V. INN. berisi.r
sls.MU,NW In theif oMn ,Auits and i-5
.eity' banks had ~ dcroHlt Will, N New
york" banks ~. nm besi.lrs yl3,atN, ,nVn IN
thor own vaults tho nsersus of ilia New
Yosk" bank. hcnK ri .ha sAfsa n.t'tneih sit.-
lnu.Ottl. Putting these several s,iIHs Together
afsl tho AtrDArsait reserve would bu r2ju.-
iOO, ,OsO. Iiii tllp real re.ervu laeld by tho
banks otl to iIthpf Alsil lat n ulre available
for the redemption of their liabilities MAS ~
follows
i.Nkp country lAstks ks.,,tt..st.tA..t.te ts,neHA,
IN rsst sAnh..t.. .s.,tatttttttttttsf.8t* s.auhn
II New faFh baHkH HkHs.stt.ts8ts+tttst..s ht,pli Mtt
NAH Francisco tsanks. s.........44..s...4 Vi5Rn
0s lu~s than una million Mlid halt IN sAeuNs ~
titr actual cash ru~rrsu required III Law. Nhirli
NAs On ti.u itih ~ Atrti Isal 4tll. .i'N,.t NM.
NJ. sherman eas,t,ot take rutngn bsiiiul tech.
nirAi tueursu~, tAea,tAc tlls'fU |. np uil.slIinn
atnnt snch re.tses. Thc issila il. ~i,0llrr ~
ila, iu Msking 10 create public t#iief that
there |. large surplus ri HHsnpy lying ite aud
iissrnluyud Iii thu baiik~ M II their siinl.sais,
BE- IL bstiir out BY tho facts. Ti.. foregoing
analysis lsoves iHyuiM dolit that lr II mi
ixrtsr INT ly thu fArtt Int that i,a ila@ #tailtd
llimsutf VI his RrcAl unh'e tu t,sssad Iii. lHs,
l.e. 1he truth II that lhu national bauka have
lp msru "ca.l, Reserves, III Any uthEr kilHl VI
reserves. than arc lpsHKsAFy ~ thu xaeu Aslnlii.
irlrAttOn NJ Thur current b,riiuss. TtoFU II
ilo plethora III money Olthsf IN IN ont III tho
l1allk. certainly not IN Nav York, ~ ANY rate.
II II III lF,iu y. contemporary of tho Hrala
stated On thu morning vi thu sth Inst. that
tho national hanks VI THAT city wuru employing
slnck-etrhaisR1 brukurs u bsFr0w muil0y fuf
them. Tho credit u the national LsnLs i
strained IL this very hour and thsir cnisiliiu.
iip le~r than that IT tlIa co'lntfy n larHe. vii.