New-York tribune., 1878-04-02

we cannot sell enough per cent bonds TO prepare Ior
resumption second that the National Banks can throw
upon the the burden OF resumption OF pan
notes as well as OF United States notes; hrd that
resumption requires the resumption and cancellation
without power OF reissue OF United States notes oeio"
three hundred million. TO these answer mat oeieVe
that. with such auxiliary legislation as Is penans nt
hta S0ta Houses S,oDSee %e fSr fSP Ss TesunPon but
am mistaken in this we can sch ~. ,,, 1i. IN,
9 or per cent S Sopas has We nnas ' To maintain resump
ton Some Of these gentlemen have proPoseu ~ I'M nv
viii earantee enough coin for RESUMPTION, ana nave
some better offers from other banks and bankers So'
trest on honds When il becomes clear that money
cannot he had FOR per cent it Is time enough 10 pa!
4ia The silver Bill has crippled my power to sen per
cent bons but wise savings bill that Will enable me 10
deal directly with the people would go iar 10 Iep"i
Tipon the second point It as well be understood
that The National Banks cannot throw upon rhe
Inent the burden of redecming their notes nc at'c.
would be suicide. They are hound to redeem tne %
coin. and MAINTAIN in their vaultsyery large reSe o.,
force the REDEMPTION OF their reserves OF
United States noies in coin would at rnru' ONE
cause the Government to Withdraw all Govern, ERR
cut DEPOSITS from them TO present all bank notes e1
received by the Government for redemption, nh" M
need be. to exchange United states ,asH nS.eS orD U
cmen HsH "0ts Contemplate pSa would "Aed end their losing
Their a1 abou forming line to break the Governmen,
is discreet and not dangerous am more b
about what you will do than what they VIII 90 oS
United States Government already holds larger chsi
reserve for the redemption OF its notes in proportion W
demand liabilities than any bank represented ny
gentlemen and power TO increase it, Our
OF dcpoSitthe most dangerous form Ol oeii"u % coin %
biities-are secured, dollar for dollar, Y I'LL Tii
or United States notes actually In nhhu, "ho
the banks Over six hundred millions TO, 10 ua ,nI
pOsitOrs, the great body OF which Is IePrssentoI rI
by notes and bills discounted. The only dei, dein,nuu ~
liability owe, not covered by actual cash on manu- m Is
the United states notes, and of these S10OooOVo -, ~
our vaults ANA $50 900 the banks ar puuu "
their reserves With coin reserve oi one nun ~
dred to one hundred and nifty millions the and
$3.50 900 of United States notes would he easy Anu Anu
that could not be diminished to any
without con tnuous draft upon the banks TO make II
good We rely upon the intelligent sei-inleest U
the banks TO prevent such struggle NOtIliH IN So @
provoke more quickly than threats by bank oinees
aud il such struggle comes the Governmen' w,un A.
reserve, with ample revenue ana the power 10 ser @
can easily maintain resumption, without fear OF me
of bank cashiers anxious to break the Treasury! vi "
On the last point: The power to reissue is plainly
given by section 1919 Revised Statutes, ana Is moi e
of any more by the notes coming INTO the Ire's! 40
exchange for coin than in payment OF a tax. Even II
the Supreme Court hold them no longer full iegaI-
choice must be made between the two the common
interest would decide In favor OF the United states no
| believe they both ought t. circulate, ahd Dosh
be at par with coin. But nothing Is so
discouragng i'll the progress OF RESUMPTION ,is ns
for National Banks TO shrink from their share OF the
burden of resumption or make threats such as are
stated by some of THESE gentlemen ana nothing IS 80 m
furious 10 the banking system. or VIII prcc'pate Ils
overthrow more certainly than popular conviction
that The banks are endeavorlng to einDdITdss e "o'
erllmcnt in maintaining resumption.
pated in the Now-York conference from any sugges-
tiOn of holding out threats against the Treasury.
He appealed to Mr.. Ewing for n confirmation of that
disavowal, which Mr.. Ewing promptly gave.
THE SECRETARY CONFIDENT.
Secretary Sherman went on to say: " All
that the Government has TO do IN the
matter OF resumption is to take care OF
some $500 900, 600 of egal-tender notes. while the
National Banks their side TO take care Of the
National Bank currency, and both the Government
and the banks are abundantly able to do this
Mr. Ewing pressed the Secretary closely as to
the effect of the presentation OF SJO,OOO,OOO OF
legal-tender notes for redemption.
The Secretary took the ground that, under all the
circumstances and in view of the fact that the last
weekly report Of the Ncw-York Associated Banks
showed only an amount of some $4,000, 900 of
legal-tenders on hand such supposition Is not
to he regarded as n possibility particularly as the
banks themselves have to retain reserve OF legal
tenders in order TO redeem their own outstanding
notes.
Secretary Sherman said lie thought that n paper
circulation of six hundred millions Is not too large to
meet the demands of business.
The conference of which the foregoing presents
the leading points, is 10 be resumed next thursday.