The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-04-03

Of Interest on bonds. When Il became
clear that the money can't be had for 4
per cent Il is time to pay43. The silver
bill has crippled my power to cell 4per
cent bonds, but . wise savings bill, that
will enable me 10 deal with the people,
would go far To repair this. Upon the
second point, Il may as well be under
stood that National banks cannot throw
upon the Government the burden OF re-
deeming their notes. The attempt would
be suicide. They are ..bound 70 redeem
their notes on demand at the Treasury
with United States notes or coin, and to
maintain In their vaults very large re.
serves Of United States notes. Any eff
fort OF them TO force redemption Of their
reserves OF United States notes in coin
would at once cause the Government TO
Withdraw all Go deposits from
them, TO present all bank notes held or
received by tile Government for re-
demption, and II need be, TO exchange
United States notes for bank notes.
Such struggle 70 these gentlemen
contemplate would end in their losipg
their powert to issue circulating notes a tall
Their talk about forming a line TO break
the Government isnot discreet and Is not
dangerous. am more concerned about
what you will do than about what they
will do. The United States Government
already holds o larger cash reserve for
the redemption Of It's notes in proportion
to the demand liabilities than any bank
represented by these gentlemen, and il
has power 10 Increase Il. Our eertifcal
deposit, me moot dangerous form Of de-
mand notes, are secured by coin or United
States notes actually in hand, while the
banks owe over $500, 000, 900 t%odepodtors,
the great body OF which il represented
by notes and bills discounted. The only
demand liabilities We owe not covered by
actual cash on hand are United States
notes. OF these S70,000,000 are in our
hands and S%7o,o00,000 more the banks
are bound to maintain in their reserves.
WIT. 9 coin reserve OIL SlVV,VVU,VoV
to Sl50OOo,0C0, the redemption OF
S3OooOoIOoO In United States notes
would be easy. we q rely on Inc IN.
teiiigent ~seif.interest Of banks 10 prevent
such q struggle. Nothing could provoke
It more quickly b q threats oy BANK ON.
cers, and II such q struggle Gomez,
government win us reserves, WIN am.
pie revenue n power TO sell ponds LOT
resumption, Is without lear OF the line oil
banks anxious to break the treasury
or to iorce high rates otinterest: Valne
last point the power to reserve 10 plainly,
given by section SIo19 Of the Revised
Statutes, and !. not cut oil any more oy
notes coming into Tue treasury IN \.
change Tor coin than IN ~ payment OF .
tax. Even II the supreme Conrt hold
them as no longer a tull legal tender,
they are as much so as q oank note. Ira
choice must be made between the TWO,
the common interest would decide In
favor OF United states notes. l oeiieye
they both ought TO circuiate anu ON De
ut par with coin. But nothing Il 80 dis
eouraging to the
PROGRESS OF RESUMPTION
as for National banks TO shrink from
their share OF resumption; or to make
threats, such as are stated by come OF the
gentlemen, and nothing so injurious to
the banking system, or will precipitate its
overthrow more certainly than q popu-
lar conviction that the banks are endeav-
oring to embarrass the Government in
maintaining resumption.
Mr.. C~hittenden defended the bankers
who participated in the New York cons
troyersy from any suggestion Of holding
out threats against The Treasury, and he
appealed TO Mr.. Ewing for confirmation
ofthat disayowal, which Ewing promptly
gave.
Secretary Sherman went on 10 show
that all that the Government had TO do
In the matter OF resumption was 10 take
care OF some three hundred million legal
tender notes, while the National banks,
on their side, were to take care Of the
National bank currency, and he UNDER
took 10 demonstrate that both the Gov
ernment and banks were both abundantly
abe 10 do this.
MI. E~Ring-pressed him closely on this
point AZ 10 the effect OF the presentation
Of fitty million legal tender notes for re-
dempiion. but the Secretary took the
ground that under the circumstances, and
IN view OF the fact that the last weekly
report Of The New York Associated
Ranks showed only an amount OF som
twelve million legal tenders on hand,
such asupposition was not 10 be regarded
a. a possibility, particularly as the banks
themselves had to retain a reserve OF legal
tenders in order to redeem their own out.
standing notes.
Mr.. Ewing suggested the question
whether the existing paper circulation
" ,h no. leslie aes.,.v'e en e1V ~sa, i" .I ,bsrs Wss
any likelihood Of any considerable dimi.