New-York tribune., 1878-11-13
RESUMPTION IN EARNEST.

The meeting of the New-York Clearing
House Yesterday, to prepare for resumption,
WAS one of the largest ever held by that
organization, fifty banks being represented
The plan of action adopted for January l.
provides for resumption on a gold basis. j. b.
Colgate objected to the restrictions placed on the
free circulation of the silver dollars, and charged
the New-York banks with attempting to de-
monetize silver. The banks were unanimous
in their approval of the plan suggested by Mr.
Coe to promote resumption, Mr.. Colgate re-
framing from voting. The United States Sub
Treasury in this city is to become pracu-
cally member of the Clearinghouse AsSo-
citation.
THE RESOLUTIONS AND THE DISCUSSION
Fifty out of the sixtyt three banks in the Clearing
House were represented at the meeting yesterday
to prepare for resumption. William Dowd, OF the
Bank of North America, presided, and George Mon
tague of the Seventh Ward Bank, acted as Secre-
tary.
Henry F. Vail, president of the Bank OF Com
merce, read the report of the special committee
which held the conference with Secretary Sherman,
the argument on that occasion being as follows:
In view OF the proposed resumption OF specie pay
ents on of January next it necessary to re
the truth that successful and permanent attain
ent OF that great object cannot be secured without Inc
cordial cooperation OF Government and the Commercial
Banks.
The Government cannot preserve coin for the pay
ent OF its issues unless the current standard OF COM
merce whose exchanges all made through the
agency of banks is maintained at the same high level
II this be not dOne is sefeydent that the superior
yaue OF the coin provided by Government for resump
ton will cause it to be rapidly drawn away into
commercial channels. and exhaust the Treasury
supply. 1t is not necessary to assume any an-
tagonism on the part OF banks, for there
can be uone TO produce this result II
would from the natural operation OF the laws OF
trade only responds TO the requirements
of commerce and to the highest instincts OF the people
In aiming restore the universal standard OF COM ana
the same forces pressing directly upon the banks
demand OF them the same effort. There is no in
huenco iinpelng the Government to renstate itself in
line with the most advanced nations OF the world that
does in greater degree appeal to the interest OF
banks to work in the same direction.
Accepting these evident truths, the only question
among intelligent bankers is this: How this
operation be best secured and by what practical meas
uresS When the Government freely offers to meet its
currency issues coin upon presentation the banks
viii have to provide means not only 10 redeem their cur
cuatng notes. but also 10 protect their larger obhga
tons Of deposits and their exchanges with each other
and with the people, at tho coin standard Stand
ing as they do in immediate contact and relation with
win mainly the labor of maintaining the coin meas
all commercial transactions. ,.
There diverse views honestly entertained respect
ing the relative merits and powers of circulating notes,
Of banks OF Government, as TO winch viii best pro-
the people Avoiding all discussion of ti~ subjcct as
not pertinent TO the immediate occasion, let us accept
the situation it exists, and as II Will continue
unt after the day of resumption and remit all sch
questions to tue test of fusure experience.
AT prcsent there marked distinction made in the
daily transactions OF banks bel wcen their deposits OF
gold and tuelr deposits OF cnsTeHcy 10y 'Te"ng the
evident that II tins discrimination continues to be made
after resumption t viii prOOUg the idea of the inferior
Iy circulating notes after they have been declared
70 be restored 10 an equality WIZ goa Dy oecOr-
proclamation OF the Government L Will not only be
practical denial by the banks OF the sincere purpose OF
the Government to maintain It's resolution, but by
afordng protection and facility to those who draw
coin from the Treasury. will place the moral force and
power Of the banks IN direct opposition TO tue effort of
Government.
pshed untl all distinctions IN the use Of gold coin and
currency. as money, are ODnteaed IN o unaIy COM
To make resumption effective the banks must cor
daily cooperate by practically treating lawful currency
fhe war declining to receive all deposits of gold sub
ject special hitherto, aud acceptingt Oy
arrangements In which gold coin is preferred by giving
notice that they Will expire on the lst January next the
changes at the CledrluG- House
II the Government, also forbearng ali further legs
lation upon subject, will discontinue the OF
gold certificates at the treasury and regard gold com
practically the equivalent of lawful money in all ITS
disbursements, the distinction which has so long ex-
listed between coin and currency VIII rapidly fade away
and natural law will reassert its benefrent dominion
over financial affairs. Resumption OF the coin
standard being assured, II is entirely safe to leave the
stitutionai merits and the demands Of trade and the
public interest may naturally determine.
fully reached only by the fearless disbursement Of gold
both by banks and Government and by such uureseIyed
and cOnhdeBt action as Will manifest 10 the pubic that
they are working harmonio1sly tosether and feel the
utmost assurance Of it's praetleaOy aud permanence
THE SILVER OBSTACLE.
There is however most obstacle standing
rectly the path to coin resumption IN the coinage
and forcbe issue OF silver dollars not worth their
nal value, which demands the first consideration. The
treatment Of these they enter into the current OF cir
culaon be wisely determined before the question
OF the restoration Of the commercial standard be
garded as substantially settled The Government, by
law now demands the entry OF its silver coins into The
currency upon equal terms with gOd when out OF every
five dollars worth Of silver bullion IL creates more than
six legal dollars, and sppropriaes Of them to its
own
AT the present value Of silver bullion these inferior
dollars can be made a cost of s3iIoo cents. The Gov
ernment is therefore drawing into its Treasury profit
upon every dollars worth OF silver bullion which pur
chases 20 per ceut An indirect tax Of this mag
niiude unequal in operation imposed upon the people
thereof and OF foreign cOius is cer&niya most extra
ordinary and untmey exercise OF pOwCrmder COnsii-
tuition formed ~ establish Justice and insure dOmes-
tic otraDqulny." Just at tue time when the best
ees the people enlisted in the effort TO reGstaE
sh financial order and 70 return 10 harmonious rcla
tons Of value with foreign coins and nations tins ins
perabe bsiace is encountered, which, II adopted in
practice will disturb wdomestic tranquility subvert
Justice peretuate discord IN ali business relations
with other nations
Whatever may be the local statute respecting these
coins fact is ndIsputable tndt they arc not fun
commercial equivalent that their issue. as sue, u III
conflict with laws trade aud with natural justice
and that all those who receive them at their nominal
value subjected immediate tax OF dollar In
every SIX OF the they thus transact. Upon the
banks greatly depends the introduction OF these coins
tno commercial use The question practically presented
upon deposit. money II ul value voluntarily devote
their powers to the establishment of Tiusiice the
custom Of The cOnniry and the eslabished measure OF