The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1884-02-29
THE "SlLYER SCARE
NEW YoRx FINANCIAL CIRCLES
semtwsat Exsre'sed 8rts tho STEADY DIssp.
p'assncs Of 0old Colu-Dsh,te On ths La..
kr Observation-Disclosures socfcty
IH1 N.na Notes = Capital Chan. .

| lHe lmWeulhte Cause Ol alarm IL the sup
posed intention OF sub.trcasurer Acton tt
pay out silver certificates to adjust balances
at the CLEARING house, thereby precipitatine
upon the country flood OF silver paper
which the banks and busineas houses dc
not want But It 10 admitted that some
such crisis as the one now feared Is the
only way IN which Congress eau be IT.
duced to look at the situation in its proper
light and to prepare for tho danger OF a De.
preciated silver currency by stopping the
senpeless coinage Of the vast quantities oi
silver dollars that are now being ground
out each month st Philadelphia, New Or.
lears and the other minta. .NFi9ihSs5,.7
The general reader may perhaps better
understand the situation as it now Is by a
briti ex exclamation Of tho relations between
the banks, the clearing hause In New York
and the sub..reasury. During Secretary
Bou!wEll's administration 1t was customa.
ry In Now York city ior the sub-treasury
10 receive drafts over the coun.er aud to
send out a messenger to,collect them from
the various banks. This plan created end.
lecs confusion and wss attended by great
risk from loss. In fact the sum OF $1,000
once disappeared in this way and has new
or since been accounted for. n 4 (, a.
TIE iNFRovsp PLAN. s{5 Z;
To guard against any possibility Of lcss
Secretary Boutwell, issued an order forbiid.
ing tho acceptance Of drafts and checks
at the sub.treesuries, and this order re.
manned in force until Secretary Sherman,
as part Of his resumption scheme, applied
Tor admission to the Nav York clearing
house. Since that time drafts have been
accepted, the clearances made, and bust
ness greatly facilitated It was formerly 4
rule OF the clearing house to accept no
silver certificates in settlement OF balances
between banks, but by the act OF the
Forty.seveDth Congress National Banks
were forbidden to become members Of any
clearing house which refused to accept
silver certificates. In order TO avoid this
law the Nna York clearing house revoked
is rule, but III the samn time tacit agree
ment was entered into among the banks
ccmersing the clearing house that they
should no. bc used iu the settlement OF
balances. Owing TO the fact that
the rreater portion Of the dis.
bursemen.s Of the Government are
made in New York when settlements are
made each night it is the almo,. invariable
rule that the United S,ateais deotur to
the clearing hoa. ., and ID the payments are
made ia gold coin ot UaUtd o.a;es notes
usually IN iha ior.uer--ihe dfain is come
times very great; especially hns this been
true for the pis. moa;h. Ii WIS found be-
fore the gold cers:i:atraS authorized
tha. banks holding accounts against the
Government did not care TO accept such
large quantities Of bulky coin, but prefer
rcd silver certificates, and tl,ev were issued
instead. : The rcpatt OF tile United States
Tr asurer shows that before the g9!d Ger.
tiGca!es came out Il ysry larss percentage ol
tho balances were Eettled in silver certiti-
Gates bscauss the banks preferred them to
coin. ..s. l.
TIE DRAIN ON GOLD.
Just as soon y, the gold certificates made
their appearance, however, the demand
lor the silver Immediately ceased and last
year not dollar wes paid through The
clearing houBo from the sub.treasury il
silver ctr.i6ca;es. This heavy Graf. upon
the gold reserve would have been noticed
before but for the iAct that during the fall
and early part Of the winter the planters
Of tho South and southwest have beer
large users Of silver, and in order to sup
ply the demand at little expense to tht
banks the Government has sold exchange
on New Orleans aud thereby prevented
any great falling of in the gold reserve
But the demand has now ceased, and The
New York Gnanciers s9tm 70 DO aoardinl
gold in anticipation Of a short supply. G
the meantime the banks lear thai
the sub treasury will avail itself O.
the statutes and compel all national
banking ,institutihu7 to accept silver certi'
| fcalcs in settlement cl balances. The AS
sistant Treasurer in New York certainly
has the legal right to do so, but should ht
tako such y step it is likely TIM! great
deal OF trouble would ensue. The treasury
officials here claim that they have nu
kno sledge Of any such intention on the
port ofthe Assistant Treasurer, but 1t is ad'
mi,ted that the Withdrawals OF gold have
created some alarm for the reserve, though
OH the other hand it is thought that the
f''siiver ecare" could not come at & better
time, as Congress may have IN opportuui.
ty to see the results before the adjourn
ment. ,'5N.S