The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-13
WHAT TIE BANKS DEMAND.
,urfR .icTTON IN NEW FORK as IT
- EtGfRDED Nv FLASHING TON.

ro,, The, Cav Make Redemption Easy Or
t,,,.,e..i, Tmbnrrns- the Treasury One
Hundred millions OF Greembacks In their
v,ut,s The Condition OF the Treasury.
v,err,aroy. Nov. r. 1t Is easy to cxag-
v,r.te o.. IMPORTANCE Of any ono stcr toward
r,.uiut 'ou along path which the Treasury
r.r,rti..nt lae boon following for two years
l.,thrrr can to little question that the meeting
cfih. CLEARING House managers held to-day in
H., York cV..t.s the liyrlio-t interest in the
Treasury Department. and is watched with
s,,t.p4 -o,ieitudc iy MIR. sherman him
t,N the banks are masters OF the situation
Thcv e.n make resumption casy and certain or
,tcv can lorolos-ly cmhnrrass the &C
r,n of the Treasury Department They de-
,e,.d a- the price of their assistance
,u.b a toiiDy ma shall keep in the
Treasury vaults. and not transfer ~ tho vaults
hanks. tho standard silver dollars which
Tho Treasury Department has boon for eight
rn.ntts coming i'm Obedience tO the law making
hem a legal tender So far Mr. sherman
has not in terms promised so do this, but 1t is
nm opcn secret 40 Tire Treasury Department
Ma, he is ready to do an Tho law permits to
carry ont the Wishes ~ the hanks The meet
Ing Of the New York Clearing House to-day
upon the strength Of th'sGssuranceis anNiously
expected g. dccidc 90 support resumption but
upon q gold basis.
Tho conference hold on Saturday between
Mr. sherman anil the Executive Commit
bee of the Now York Clearing House has
been represented i'm some quarters n held
a, the instance Of the bankers. This is
not strictly accurate 4 HIGH officer Of tho
Treasury Department was in New York fort
night ago. and. coming In contact with bankers
anxious 10 know Mr.. Sherlnaus position. he
suggested that steps hc taken for n conference.
AlpUar wns addressed 20 Mr.. sherman and the
committee whose report will DO heard to-day.
came here. Practically they came to demand
resumption ON q gold basis as the price OF CO.
ouera'ion in resumption first by the banks Of
New York and next by the hanks Of tho coun-
try. Their position was strong one. Tho
Committee represented slN hun red millions Of
capital holding one hundred millions of green
backs. which. II the banks act in concert. can
suck NJ the Treasury gold rs "A siphon OK
hausis cistern. This reserve is the largest
mud il substantially the only block Of green
backs held 10y common interests. Forty
bankers alonc-a large enough sum to serious
~ cripple the resources OF the Treasury in re-
suming specie payments. The banks have lit
tie TO gain and much to lose by obstructing re-
sumption, but there is this important thing to
be gained by debating the terms upon which
substantial adoption OF a silver standard. They
have succeeded. whether by the law or over the
4.
banks are ready. and the Treasury is not They
have been preparing for gold resumption by
securing gold. and only, gold. By presenting
called bonds. single bank in New York is
known 10 have secured within a recent period
1000. Through the operations OF the Silver
bill the Treasury has been forced TO make n
part Of It's preparation for resumption consist
IN tho accumulation OF $4,000 900 Of standard
tllyer dollars; Add e this the fact that under
hundred millions Of greenbacks. really hold n
Sall loan upon the government to that amount
Of their POSITION is plain. It's effect In the
Tor Tie. second time MIR. sherman has
began. II will be remembered. rs its uncom-
promising opponent After its passage he an
executed. For a while silver coinage was con-
Quoted on this basis. The Treasury Depart
msnt made strenuous efforts 90 circulate the
Interested that Mr. sherman has lost his
OF The silver dollar He has directed the
two millions as Il can be co9sisteR,ly
yer bill In good fnith. No haste e 60 be shown
in opening the New Orleans Mint, a branch
Mint which was 10 he devoted exclusively to the
coinage Of tho standard silver dollar All these
cence in the demands OF the banks 10 d" Sec.
rotary Sherman Justice 1t Is probable that he
has made no formal promises He said him
10 entertain any proposition for tho exclusion
a silver from the work Of resumption. He
stood upon tho law which made silver a legal
lender. ana WIS ready after Jan. to meet all
Government obligations in lawful money.
Current opinion among the higher officers Of
the Treasury Department inclines 10 the belief
tla the presenter OF n Gov 'rnment obligation
will be given b is option after Jan. rs between
currency and metal or metal and metal
Practically, this would be resumption in gold.
No cue W ask Tor the base metal when gold
can De obtained. Some demand there may he
themselves against the presentation OF their
notes This Will use part 81 the amount Of
will Doe found In the fact that after Jan. / 1879.
the national banks will no longer have the priv
iiese q issuing notes OF q smaller denomina-
under i've dollars be withdrawn from circua-
ION room would be Afforded for silver cireu-
latlon9 MY millions. But IN an interview to-
day Mr.. sherman denies all intention OF at
eMplne anything OF this kind.
W.ih TING assistance Of the banks resumption
II believed by the Treasury Department 70 be-
easy There Is reason for this belief II is
customary In current discussion 70 compare
The amount OF greenbacks outstanding 1916
$4,000 viii the coin in the Treasury, placed
by Secretary sherman in n. recent letter at
sl3tz3l SIS. aud by tho last debt statement at
S32uOOop; hut with the banks. as body
Wding resumption. the amount which can be
lrrseni"d + mere fraction Of the amount out
standing. Nearly haf the greenbacks in the
country are other IN the Treasury itself or in
ihe bank vaults. The statement Of the labil.
llies and assets Of The Treasury Of the United
al United states notes on hand in special funds:
iTursn. officers accounts ....... eli 507OD
t4nI fclculuuu ~ failed hank notes ... eGuHUu
I've Iff cent redemption tuna ....... ... iu.S5ulJ
~ Al inui Cor redemption fractional cur
iOuppOup |
NINahtief tuecas, .... .... 4O3lu'O
Total 5000
Ihe7e figures are Tor Oct 81. The return to-
day iablaiei from the national hanks down 10 |
~ shows that they have in their reserve |
tDii2s $50 Ia legal tender notes. Added 10 the |
amount substantially locked up in the Treasury |
We aggregate is 500 s64 900. or nearly a third |
o. we lesu. tender notes outstanding OF the |
aa7.g.5'J0i1 n outstanding LEGAL tgplers left |
WET nHHin- 'lls reduction no small share is |
hell no ejaculation hy the needs Of the country. |
'HNug lle amount which can be presented for |
lliDu under the active cooperation u tho |
n"illAa +" " figure small IN comparison with the |
I'm lstrN" In N.eW oi these facts It is not |
fIauSf that an official high in the Treasury |
department pronounced tho amount likely 10 |
N5 OWNuu
:, Ia his onnecton the following statement Of !
ne I'Adlilnn ~ the national banks. 2O53 in |
nnHii' g. az tho close Of business oct. l. 1873 |