New-York tribune., 1878-03-29

|
ing by Mr. j. w. Schuckcrs:
| WHAT THE BANKERS SAID
! NEw-YoRK, March 90. 1873.
The Hon THOMAS EWING. Chairman Of the Sub Commit
| tee Of the Committee on Banking and Currency Of
The House Of Representatives.
| SIR: According TO direction, have prepared and
| herewith submit brief report, showing the sub
stance OF what said at the informal conference
| between the members OF the subcommittee and
| Messrs. j. ID. Vermilye. Joseph Seigman, John
| A. Stewart, James NJ. Brown. b. b. Sherman
George Bliss and s. d. BabcOck held at the Office Of the
AssstantTreasure in this city this morning, at which
was present and at the interview in the afternoon be-
| tween General Ewing and Messrs. L. ID. Tappen and
| George s. Coe, at which was also present.
General Ewing, at the conference In the morning,
stated the object of the visit made by Mr. Chttenden
and himself to this city at this time under the direction
OF resolution OF the House OF Representatives, which
was to ascertain in the first place. tho condition OF the
Sub-Treasury IN New-York with respect to the gold
owned by the and others held therein and,
In the second place, to confer with weknown financial
gentlemen Of the city touching the practcabllity OF
sumption OF specie payments on the 1st OF January
next and whether. IL practicable, in their judgment re-
sumption at that time would be consistent with the pub
| lie welfare
The gentlemen present were clearly OF opinion that
resumption at the earliest practical moment was not
only consistent with the public welfare but of the
greatest importance to the best prosperity OF the coun
try They of opinion also that resumption on the
lat OF January. 1879, might be made practicable and
II adequate should be adopted but all who
expressed themselves the subject agreed that
the plans the OF the Treasury made
Qunte and that il lie should make an attempt to resume
the 1s OF January under the circumstances as they
were likely to exist at that time the attempt would
most probably fail They Of opinion. also. that the
reconciliation of silver had seriously interfered with
the probabilities OF resumption at the time fixed.
GOLD EXPORTS.
Mr.. George Bliss said that in his Judgment there
must he a considerable export OF gold during the next
months which just to the extent that 1t depleted the
stock the country would OF reduce the proba
btes OF a safe resumption next January. Under the
banking system, It formerly existed, 1t in the
power OF the banks to check the expectation Of gold
when they chose to do but the legal-tender note
system system which restricted their power In this
respect; that there now no effective means at
the command OF the banks TO prevent the
gold from going Besides this the effect OF the aglta
tion for reconciliation OF silver had been to cause
large return Of Government bonds held by foreigners in
the place gold. which. but for that agitation, would
have come into the country III the place of bonds. The
total OF bonds returned since the agitation began he
tmated 900 o00 and more imporatlons are to he
expected stl further interfering with importations OF
gold and indeed promoting its export
In proof Of this no called attention 10
the fact that gold had already reached
the shipping point. much earlier than was usual and
shipments might he expected to begin very soon. 1t
was not usually reached I'll later In the year. commonly
the latter part April and generally continued through
May June and July Havng been reached so early this
year implied unusually large expectation and this lac
attributed to the rcmonetzaton OF silver in causing
OF bonds tn be partly paid for In gold III remone-
tizaton bad not taken place sufficient supply OF gold
might have been provided, but under existing cireum-
stances he did that such resumption would be
likely TO be established by the rst OF tho coming Janu
ary
All the gentlemen agreed that large export OF gold
probably thirty forty millions, must take place during
the Spring and summer; ana Mr. Brown said the ship
ncnts likely TO begin almost immediately.
Mr. Yermllye said hc did not think the measures
adopted by the Secretary Of the Treasury of kind
calculated Ito establish faith In his ability TO maintain
resumption lie said that II Government should begin
paving specie on the ast OF January next now
proposed, aud under the circumstances likely 10
exist at that time. there would no doubt Dc de
mand for gold immediate and extensive that
the fund IN the Treasury Noad probably be Mt
once exhausted lie could best Illustrate the want OF
confidence by repeating the remark OF friend who said
he would give good deal Of money 10 he NJ the head OF
the line certain formed the doors OF the sub
Treasury that day. 10 demand gold for United states
notes Mr. vcrmye also said that the gold in the Gus
tody Of the Treasury. belonging 10 the banks would he
converted by them into special deposit, as would
probably that Of private depOsitors there were any,
and the gold represented by certificates would
be unavailable 10 the secretary part OF his gold re-
soryes should he attempt 10 resume as he now pro-
posed
Mr.. II. -. sherman said that nincteentweneths OF
the gold belonging To the banks In other cities as well as
In NcwYork state and National In the form Of GER
tlfcatrs and that there considerable amount Of
gold the except in the Pacific stacs, outside
OF Ncw-York There none Of any consequence in
the savings banks or In private banks. He said that
Of the banks both here and in Philadelphia, were
now buying gold speculation in anticipation OF rise
In its price. He thought the reconciliation OF silver
had seriously nterfcrcd with the prospects Of resin
ton, as had been explained by r Bss ana sas.eS,sd
the probability OF the disappearance OF gold from the
country und silver 1T premium relatively TO the legal
tender notes
None of the gentlemen dsscnted from the views ex-
pressed By Mr. Bliss Mr.. Vermilyo. and Mr. sherman,
that resumption according to the plans OF the secretary
would probably fail when attempted To be put into
operation They had doubt Of the practcabiliiy Of
moneination Of silver il tie Secretary were to
sufficiently energetic measures. and seemed 10 nk hat
very extraordinary amount of gold would he required
~ faith In the stability Of resumption could DO once Is
tablished.
was suggested that formal conference might be
had at future time with useful results to thc puoc 10
which there assent on the part OF all present
HAS SHERMAN OVERLOOKED THIS POINri
Later in the day Mr. +. ID. Tappcn and Mr. George =.
Coe called upon General Ewing. Mr. Chittenden being
absent because OF sickness. ar. Tappen said among
other things, that after resumption. should Mr. sherman
attempt IT, lie might do, the banks. until perfectly
assured OF Its successful maintenance. would no DOUBT
exercise their right to pay depositors and note holders
in the cheapest legaender; IN other words, would not
pay In gold lie said. also, that the banks not only IN
NewYork but elsewhere throughout the country would
seek, Immediately possible after Mr. sherman re-
sumes to convert their legalcnders into gold,
as far rs IL was In their power to do 80,
aud would make their gold In tho custody
OF the Treasury special deposit, and there
fore OF avail to tho Secretary rs help 10 re-
sumption. with respect to notes In tho hands OF he
general public. he did not think tho banks would be
willing that their gold should be subjected to the drain
certain to take place resumption unless the prepara-
hn amnlo Croate