The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-19
PHILADELPHIA BANKS NEARLY READY TO
MAKE GOLD pAYMSNTs-wAY THEY WATT
FINANCIAL EDITORS VIEW.


this city to-day warrants tho conclusion that nearly
al Of ,hem ready to resume gold payments At
With gold At one-e,ghth II 10 practically par
and shero appears DO reason why It should not
be paid for green0scks In this city, except shat
40 informed NJ several oil the banks. there has
been demand for Il Nobody has asked tor gold, )"
say they, sxceps depositors who gold accounts
Tho financial insiu Of this city are very con-
SENTATIVE and will DO likely TO initate ihe move
meni, but whenever Now York bankers puy out gold
Philadelphia will follow.
The financial editor Of the Inquirer will treat this
matter - follows N to-mosrow'4 issus:---s-.ss4s
Wehavs tho opinion very freely expressed thss the
banks have the matter Of resumption IN their own
hand this tims. and that they ought Improve tho
opportunity TO establish the purity OF gold and legal
tenders by uniting together IN public announcement
declaring their aoiity ana readiness 10 accept the
There ar py o. on
course should be adopted the most important being,
according 10 our way OF thinking, that such cx-
preston the part OF the financial institutions OF
the country would inspire The people with conf.
dcnce and establish ~ their minds tho TACT that
circulating medium the rno0cy with which we trade
ana do business. is AZ good as gold.
But while there is stiil actual premium OF .
be cticabieY fh,s is the Question thai naturally
arises, and thS answer 10 that this premium
obstacle The objection 20 the proposition docs not
lie all Ia this dirocton AZ may be shown by suppos
Ing practical case:-A, being holder Of god, has
payments TO make 10 and G. Now, with gola say
his gold and pays aud g In currency whether he
"rcsumes' and pays and IN specie, the point be-
ing that u will cost one-eghth 10 market his gold
and are indifferent whether they receive gold
currency for the same reason, mey-hat although
gold Is worth fractional premium 1t costs a irac.
tional commission 10 realize. Practically, therefore,
A, ana y may at this moment gold currency
TO effect settlements on equal terms, and what A, Is
anu may do the banks may also DO
The ground 10 DO taken against the proposition that
the banks shall commit themselves to specie 10 not
the lingering premium, but the lingering unceratnty
Gold Is practically Mt par, but wiil II stay there
This - the question that must give . pause While
there 10 any chance Tor doubt this point the faith
ful conservatism which charactcrzes bank manage
mont, especially IN Philadelphia will not permit any
hasy action that may possibly DO retracted hereafter.
There Is no question now To ABILITY main
our existing currency AZ par with gola under such
ditops now prevail Practically we have got back
to specie payments aud our banks are according 10
authoritative opinion, fully competent stay there,
but Congress Is still In session the cloud still
hangs noavy over our most intimate friends IN
Europe. IL 10 possible that some unlocked action
jf Congress or some new phase OF the Eastern ques
ton may yot cause temporary advance OF the gold
premium. While this Is the case our banks will
time TO DO careful to any step to be taken which
tnsro 10 any possibility OF beng obliged 70 retrsce
Our bankers ~ Philsdslphia are probably tho most
Conservative and deliberate In tho country they
AVOID spurge and spread eagle show principle and
would especially refrain from triiing with grave
matter as resumption. Al the Same time thers arc
institutoDs IN the country better able to
time comes tor Now York ana other 0nancal centres
to move Philadcphia viii not be found hanging back
one moment