The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-01-07
What Can the Banks Dot

At meeting of the officers of the leading
banks OF this city. held on Saturday, COM
mittcc was appointed TO devise practical
measures for avcrting the injury TO the
money lending interest, which. II Is OK
pected. will fellow the passage OF the pend
ing Silver bill. The report OF the committee
Is TO bc made on wednesday, and the repre-
scntativcs Of the other great financial cor
porations II the city. rs we'll as those of the
banks OF Boston. Philadelphia. and Bati-
more, have been invited To come AMI hear It,
with the view of joining in any action which
may be taken on the subject. In other
words, IL is proposed that the banks and
kindred institutions II the Eastern States
shall make "A league against the silver dol
lar, aud nullify, il possible the law re-
storing II to use. Can they do this, aud, if
50, how
The measure most likely TO be proposed is
one which has already been fores hadowed
by the course Of some institutions. 1t is TO
make with borrowers Of money special con-
tracts STIMULATING that the gold dollar shall
be the sole unit Of value any law or act Of
Congress TO the contrary notwithstanding.
Every note. bond or other obligation will.
hereafter, according to this scheme. pro-
vide on its face for.the payment OF So many
dollars " in gold Of the weight and fineness
now established by law" or words 10 that
effect Other money transactions will be
guarded in the same way; and thus, while
the silver dollar will be legal tender, ac-
cording to statute, its use in practice will
be barred 10y mutual consent, and gold will
be the only standard. Can this project be
carried out 1t is undoubtedly lawful; i
it also practicable!
The answering of this question lies. not
with the banks, but with the mercantile
community. 1t is for the people who use
money aud not for those who lend il. to say
what the currency of the country shall be.
Tho men who buy aud sell merchandise.
labor and services, regulate the matter, aud
not those who merely facilitate their trans
actions by the operations of banking. A
bank can do no more than gather up with
one hand the money of its depositurs, and
with the other lend IL out to mcr-
chants and manufacturers who need il
TO pay for goods or labor. II must take
whatever Is brought to its counter. or stop
business. The private capitalist, even, must
either receive for his rents or his interest
whatever his tenants or debtors take in from
those with whom they deal, or get nothing.
Tie shopkceper cannot pay his landlord,
nor the mechanic tie shopkeeper, nor the
employer in turn the mechanic In any other
currency than that which j. paid him. The
word currency" implies something which
circulates like 20 ilud, and is current in the
body polite; and If its flow Is arrested it
ceases to be currency. Evidently, therefore,
unless the proposed scheme OF making gold
the standard Of value meets with general
support, it will fail. Only fancy all the
banks, trust companies, and great money
lenders STIMULATING that what Is money with
every one else shall not be money with them
They might rs well put up their shutters
aud - into liquidation.
We sincerely hope that the communit y
will back up the banks in their efforts t.
give Us sound currency based on gold
The one great obstacle which now prevents
the return Of commercial prosperity with
Us Is the uncertainty of the financial situa-
ton Let US only have the starting point
fixed, so that We may know what to expect,
and progress will begin at once. There is
plenty Of idle capital awaiting employment,
and plenty Of enterprise ready to employ it,
but 50 long a the currency Is as unstable a.
it now Is, and would continue To be with the
silver standard, paralysis will rest upon
! both