The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-12-01
CAN WE RESUMEs
The Comptroller of the Currency Thinks we
Can at any Date Fixed upon.

Can ut any Date Fixed upon.
WASHINGTON, Nov. 3O.-Thc Comptroller
of the Currency. in his annual report. makes
comparison from such data IA Ia now obtaina-
bic, OF the condition OF tho banks during pro-
vous periods Of suspension and resumption
with that at the present time. From this COM
parison IL is shown that during the first period
from 1885 to 1912 inclusive. the ratio Of specie
to circulation held by the State banks WINS 3l.6s.
and to circulation and deposits 1904; and dur
ing the second period. from 1850 to 1853 inclu
sive. 80. IL and 1906 respectively. The ratio OF
specie and legal tenders to circulation of the
national banks for the eight years uS70-77)
WINS fl 81 an | to circulation and deposits 1910
per cent
Tho returns OF the state banks in the Now
England Statcs and in the State of New York
were moro regular and reliable than those OF
the banks in any other portion OF the Union.
md comparison between the state banks for
the periods named with the national banks for
the last eight years is given rs follows: The
aggregate ratio OF specie TO circulation In
the New England States from 1895 to 1912 was
1914. and from 1850 to 1855 1919. and of specie TO
circulation deposits and bank balances from
1885 to 1912 I1.3 and to total liabilities. 90. In
the national banks tho aggregate ratios were
81 1 and 1913. In the New York state banks the
aggregate ratios during the first period wero
355 and 1871. and during the second period.
ACT and ~ per cent. respectively. In the ma
tonal banks 81 New York State for the last eight
years the ratios were 1854 to circulation. and
o. to circulation deposits. and bank balances.
In The New York city banks for six years, from
1855 To taGO. the ratios Of the State banks were
2Oi. and 222; and In the national banks. from
1872 TO 1877. tho aggregate ratios were 2ol.7
From the comparisons made 1t Is argued that
the average strength of the national banks Tor
ut ~ "a "a II
resumption in former times; and, II resuinp-
ton l. TO take place upon any lived date the ma
| tionnl banks will be certain, as matter OF pre-
caution. to strengthen their reserves beyond the
averages here given. 1t cannot be doubted.
| therefore that the national banks viii be
| prepared to redeem their circuaiin notes
| at any date OF rcsumption which may be
The banks may easily pay in coin their circu-
lating notes. It is said that II will be impos-
sible, for them TO pcr2vide in the same way
| proceed on the assumption that tho hanks
will be called upon to pay their deposits in
specie. This was not true during any former
| period OF specie payment, and Is less likely To
| b. true under the national banking system tran
nMSs nnter any preiiSqs -ysse nn 2 pahsing
| are derived largely from the discount OF COM
mercial paper, and are pail mainly uytranslers
upon the books. and not with either coin or cur
| rCncy. Throughout the country all large pay
mcnts are made. not with money. but with
| checks In the principal cities these payments
| are accomplished through the operations of
clearing houses. During the last twenty-iour
years tho pNf ninEt : OF inc New pIk tl'uFln-
House were four hundred and nfty-io thou
sand millions. Will, the balances paid in money
w.re less than nineteen thousand millions
The average daily exchanges during this whole
period were more than sNty-one millions.
while the average daily balances paid in money
were but two AMI one half millions. or but four
and onc-nith. cents upon the dollar.
In England. in 1921 after resumption. there
was but little demand Tor gold. nor was there in
France, after resumption by the Bank Of France
in 1850. nor in this country in lN'S or 1859. The
Bank Of France is at presen, IN state OF sus-
ht ito ltlGA ARA mr. rod a. IL
lie to specie and the bank has found II difficult
10 reduce the volume Of its CIRCULATING notes in
actual payment in specie will vanish as soon as
resumption j. assured, and those timid bankers
who fear that their dealers Will demand coin for
every dollar Of their deposits can rcassure
items elves ty an agreement with their dealers
that their deposits shal be payahi' rs at ne
thcn consist ~ logal-tnder notes ana thr notes
OF s,.ccic-ra,ing banks There l. no greater
hushear than tho oft-repcated cry that the
! Treasury and the hanks must proVid" specie
for the payment Of the two thousand millions Of
deposits before resumption can tax. place.
There il not sufficient gold or silver coin In
the country with which To- pay fur ~" cnr-twrn-
tio'h lart 81, III iroduN T. If the prrsrn NJ year
hui thn ma ,hiu. ~ NJ M bank with IT, ystani
Of checks. and BILE OF "Aehans" ana cl, airing
h9ns pay Tor it al IN do 10, az very On.
ard dollar IF twenty five and eightten,hs grains
of.goli ninc-tentis fine.
handling 81 the gold dollar in every transac'
, ton. Clin and currency are but the SINAI
b |
and bills .. eN 'haug" ar" IN" instruments en-
ploycd in all large trlnSactlons Firgl" che'l
, rays fOr wrnl' invoice 81 goods, Tor car Loads
! ui coal anl for houses and lands. II sumption
, means only that the dollar rcprosr nt-d IN III,
bank check SHAH bo equivalent 20 twenty-five
and eight -t.nths grains of gold. ~ the poGn,
J represented upon the beam q the platform
= | : .iilc shall D. equivalent 10 sixteen ounces
3 ! aynirdupois. Il means that the millions an
h | billions of business transactions 81 singh
. | year shall each e measured By a fixed and tru
: au not ty i4tuatlng and false standard o
Congress on March Is. 1863 passed mn act ii
which the United States PLEDGES Its faith I
make provie IN AT tae earliest practicabl
period for the r"len pton of United State
d. notes IN coin, AMI on january II. 1875. da
wa iiNcd Tor that purposo. The paper dolla
is now worth ~ cents in gold and repre-
:. SCENTS "a weight u about twcnlv-iivc grains q
b., that metal. Il has increased IT, it, reprcs, nta
tive value and weight forty ptr cent. durn
D the last tn years. more man IN l"r cent dur
"A ir, tie last two y,als, and nearly i've pnr cent
4 within the last sN months; and there Is no az
" parent good reason why It should not soon be
como 81 the iull standard value when both III
- paper and the gold dollar Will be an cqui
measure ot value for the rich and poor alike.
~ The Government and the banks ot the coun
% trv u-prna"d specie payment on Dec ~. 1851
l. | ana II IL believed mat the Rational banks WI
cordially unite with the Government in re-tOl
l. ngt rue standard of yuu" Whenever the act
% # Congress referred 10 shall be carried int
10 eli H.