New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-26
shame enough for the American people for
WY NOT DO BUSINESS on 4 FIRM BASIS
At ONCEf


At ONCEf
1t is said that no action by the banks OF
New-York can be of value in respect 10 the
Silver Bill and the danger thereby threatened.
We have different opinion. Ii these banks
agree so far that the manager OF their Clearing
House is instructed to receive and pass no
paper. drawn after certain date, which does
not specify sum in gold, or its then market
equivalent, the effect upon the business OF the
country, we maintain, will be very great. Grant
that it will not necessarily increase or lessen by
one dollar the sum to be paid by any lnstltu-
ton, solvent or otherwise. No debt now due
to any bank Will be affected because drawn
prior TO the date supposed to be named. No
claim now existing against the bank will be
affected The bank will merely he compelled,
after a certain date, to put all its business on
gold basis, and to forego the possible
gain, while it escapes the possible loss,
which might result from a transaction OF
business on present methods, ana chahge
in the premium on gold If no change occurs,
nothing can be made or lost. III the premium
falls, the bank.will get fewer grcenbacks Tor
It's loans made after the date named, and VIII
be required to pay out fewer grcenbacks on Its
Indebtedness after that date. If the premium
rises, the reverse will happen; the bank Will
gain rs TO g1eenbacks receivable, and save IA
to grecnbacks payable. The change Will DE
this that its business will be done on safe
basis
So much as to the bank. But the banks OF
Boston, Philadelphia, Baltimore. and other
Eastern cities, will be disposed, as their recent
action shows, to unite in the same course. IL
not disposed, they would find 1t ex-
ceedingly difficult to do business on
basis not recognized by the New-I0rk
hanks. The banks OF New-Orleans and
Charleston have shown, by their action, how
readily the Southern cities would adopt the
same plan. Thirteen out of eighteen banks
Of Chicago. by their memorial forwarded to
Congress, show that they are also ready for
the same change. St. Louis VIII not
be tardy Cincinnati is ready. Inc
banks of the Pacific coast have been dong
business on a gold basis constantly. As for
the country banks of the East and West, how
many of them will care TO touch bills drafts,
checks, or notes, which are not of character
to be received and passed in exchanges by
banks of any Eastern cities
The effect will be to compel all commercial
business to be done on the gold basis after
the date named. Nobody will be Obliged to
buy any more gold; paper can he received at
its market value. The man who obtains a
loan or makes a draft, takes the chances,
instead of the bank, rs to possible
rise or fall of the premium. What
good will it do ! 1t will simply put everybody
who does business with Ncw-YOrls under bonds
to assist the equalization of gold and currency.
1t will make it losing game, for any banker
or merchant who has paper payable here or in
any bank which settles its accounts here, to aid
the depreciation of the currency. This is an
exceedingly desirable thing of itself, but it is
net less desirable that the banks of the East
crn States should be protected, with as many
banks of Western and Southern States rs
please to unite with them. against any posi-
ble change in the currency.
Already it has been made apparent that no
less sweeping measure will answer. Some
bankers of this city already have shown
a disposition to secure favor with
the regulators by fayoring a continuance
of currency loans, payable, if Congress
so decides, in silver. Tho number
of banks which may take this course may not
be large. But it will be quite large enough,
without doubt, to impair the success
of any efforts for self-prOtection which
the banks Of the East may make. I'M
less those efforts extend TO change III
the basis on which clcarngs are made. II
that is done. every bank will be compelled to
get into line. Otherwise some will seek tenn
porary profit by acting for themselves in har-
mony with the prejudiccs or interests OF re-
pudilting communities.