The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-03-01
TlElLEGRAPE1HIC.
A BANKERS OPINION
On the Effort OF the Treasury to Cir.
cuiate Silver.
What ekc Thinks VIII Occur IL the
GeVernffHent Pays Clearing
HcuSe Balances in the
White Metal

| CHICAGO, March IA prominent banker
| OF this city, being asked to give his opinion
OF the silver question: said:
III the treasury department insists upon
| the payment of balances at Ney York in
silver certificates the banks will be compelled
to refuse to receive them, because their basi-
ness relations with importers and exporters
are such that they cannot handle volume of
silver. An importer, for instance, buys a
cargo Of tea in China, and offers to pay for it
IN silver. The Chinaman refuses the silver be-
cause 1t will not avail him at par value in
negotiations he desires to make through
London bank for European purchases for
shipment to China If he should accept the
silver at the American valuation, and should
offer it in a foreign country, or should take
bill of exchange for silver and offer that,
he would be met at once with the proposition
that silver was not equal in value TO gold
toutslde OF the United States, and would
be compelled to suffer discount Of not less
than 10 per cent, which would make his
American silver dollar worth to him
but 80 cents. This fact is known to
ali exporters III foreign countries, and while
they are willing to recognize the fact that q
silver dollar in the United States is legally
worth 81 in gold for the purchase of mer-
charitable commodities, they do not regard it
as having the intrinsic worth Of gold, which is
tic standard Of value of currency in all coun-
tries, and is not questioned by the merchants
of any nation. They also know that bill of
exchange on London means one universal
Gold-and while they are willing
to accept exchange on London be
recognize any bills of exchange on
New York, because they know that
the United States has decided silver to be
legal tender in payment of all debts and are
fearful their demands may be met in a cur
rency which will necessitate to them loss
if they accept it in payment of their lust
dues. The present attitude of the treasury
department in undertaking to force the set
tlGin2nt OF balances III silver certificates will
only tend TO further embaraSs large dealers
In articles that are imported on large scale,
AID viii necessarily force the banks to re-
fuse the terms offered by the treasury
department. This action NAV cause
the treasury to Withdraw fIoln the
clearing house at New York, when the bank
e!s will be placed in q similar situation to
the banks at Chicago, and will simply have
to accept checks for their balances and take
from the treasury silver certificates in pay
ment of the balances due them, or hold the
checks
Just now the banks are in a condition to
hold the gold they have on hand, and will use
THEIR best efforts to secure all they can. They
Will not even be satisfied with gold certifi-
Gates, but IN many instances will cash
what gold certificates they have on
hand, and pile up the gold in their
vaults, well knowing the time must come,
II the present policy Of the government is
pursued, when The gold win be worth To
them handsome premium. In addition to
tins, many OF the banks have i'll their posses
SION, rs part Of their reserve fund gold
checks, which they have held for several
years, IN sums varying from few thousand
to nearly 100000 These checks are AGAINST
the reserve gold in the treasurv-which only
amounts to about S125 900. .00O-and if the
present policy of the treasury department is
to be pursued there iSno reason to expect any
thing else than that the holders of these checks
VIII present them and draw from the treasury
the greater part of this sum If this
should be done, it is easy to see what the re-
suit might be in the appreciation of gold; as.
when the reserve fund of the government il
reduced in such an amount as it would be b-
such demand, it is reasonable to Suppose
the effect would be to produce a holding of
gold in the vaults of the banks and in the
pockets OF the people, and consequent ap-
preciation Of the value of gold, because it
would ut once become marketable coumod- |
ity. The more scarce it became the higher
the price would be placed upon it. 1t would |
hot
Gle OF merchandise occupies, and its scarcity
and demand would regulate its value
'The present policy of the government. if
pursued, can have no other result than to |
force gold to premium, and when such a
result ensues the country can expect nothing
less than financial calamity, the ramifica- |
tons OF which must necessarily reach every |
household in the land This is but logical |
conclusion, and must be the outcome of the |
silver policy Of the country, and the sooner I!
the authorities at Washington are made to |
understand it the better it will be for tha |
interests of the general public, and the |
more certain we will be to avert a crisis, |
The apparent effort Of the government to sill |
verize the country is an unjust discrimina- |
ton against the interests of the people, and |
Is equivalent to all Acknowledgement that |
the treasury department is at the mercy of |
the silver miners of the country, and regards |
their interests of greater magnitude than |
those OF the remainder of the people Per-
haps the government will learn lesson too |
late on the silver question, and will then re- |
gret that the coinage of $1,000. 900 in silver. |
per month was not long since stopped.
"a silver dollar is not equal in value to a |
gold dollar, and, no matter how much legis- |
Iation there may be in regard to it, the fact |
that it will only buy s. cents worth Of gold |
is SO patent to every one that it will not be |
accepted for any greater sum. So long as
this fact is apparent, and the government |
continues the coinage of silver
dollars in such quantities, nothing
less can be expected than a want of
confidence in the ability of a silver dollar to
purchase dollars worth of any commodity.
whether it be of foreign or American pro
duction.
"The forcing of gold to premium means a
return to the high prices of all commodities
that prevailed at close of the late war. and
the present policy of the government can
have but one result if it is carried into effect
as it has been PROPOSED by the treasury
department"
esoTe with the Fast Young Men.
DECATUR, Ind, March Maggie Dillery
and Eta Neibers, two Of our most prominent
F...hs