New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-08-05
RdNKING on SMALL CHANGE.

BLINKING on SMALL CUANGE.
Ten cent resumption meets with some OBJ
staclcs. One of the banks OF this city. the
Broadway, declines to lend the gold of its de-
positors on sham security which, in the judg-
ment of the directors, National bank is not
allowed by the law to take. 1t is not surprising
that one bank refuses. The only wonder Is
that Others have not taken the same view OF
the law. and have not been equally firm to pro
tee, the interests of those who have confidcd In
them As it stands, the banks OF this city nave
put out over So, 900. 900 in good gold, and have
received. as a so called seclrity for the loan,
stuif which is not a legal tender and which II
actually worth less by about 800, 900 than the
amount loaned This is an operation that no
banker would have thought consistent with his
duty to his customers. unless he had.first been
infatuated with the idea that it was his mission
to take the United States up in his arms, so to
speak, and to carry it through the mud, a.
Broadway policemen do pretty girls on lou
DAYS. But it is not the business OF tie National
banks to manage the Treasury OF the United
States. Their business is to perform faithfully
their duty to those who ntrust money to them.
and who rely upon their fidelity.
A growing sense that their course needs de-
fence appears in the recent comments OF bank
officers At the outset. some were inclined tn
plume themselves on what they had done, as II
they had hcroicaly saved the Government
from ruin by their devotion. But The TRiB-
uNr pricked that bubble. by showing that the
Government had abundant power under exist
ing laws to avoid both silver payments aud ten
cent resumption also, and that the Treasury
begged aid from the banks only because the
Administration wanted 10 cvadc the silver ques
ton. and to escape controversy with the ma
iority of it's own party. 1t was clearly not the
duty of the New-York bankers To help the Adj
ministration out of q political snarl, at the cost
of a disregard of their obligations to those who
have trusted them. Now the prevailing excuse
ia. We couldn't help it, One banker says
I'VE were threatened with flood of silver, and
the Treasury was able in that way to ruin u.s.
aand we had no choice but TO avert this
@calamity for time, ii possible
This excuse is Is unsound rs the other. The
banks of New-York we're not threatened. and
unless they also had refused to do their duty
could not have been drawn into any difficulty.
They were absolutely safe. through their power
TO hold gold for such persons as had present
deposits or claims and to pass To silver account
all future receipts in silver. True, this would
have involved the keeping of two accounts.
But the expense would have been insignificant.
Bankers knew that it could be done, and that
there were no serious obstacles and some of
them expressly admitted. at the very time
when they consented 10 Mr. Jordan's PROPOSE
ton. that they had the power To protect them
selves and their customers by keeping separate
accounts for silver and gold. But that would
have caused a premium on gold True II the
Administration had then dared any longer To
refuse to take the measures, winch under the
law it had power to take in order to insure the
continuance of gold payments. The RESPONSE
bility belonged with the Administration and
not with the banks. In taking it upon them
selves, the bankers have greatly weak encd their
position, if indeed they have pot deprived
themselves of the power to make effective re-
sistance hereafter Ii was in the power OF the
bankers to place beyond the reach OF danger
their institutions and all who depended on
them. They had wisely accumulated gold for
that purpose They chose instead to march
straight into peril, because-pcrhaps it IL more
courteous to leave the bankers to find reasons if
they can for the course they have taken.
One thing is already clear; the effect of this
step on the SILVER issue ~ gOiHR 10 Dr just WHdt
the bankers did not want. With some strange
perversity Of mental vision, they imagined that
sham gold payments by the Treasury would
somehow help the suspension Of silver coinage
next winter But the remarks of the Governor
of Colorado in THE TRIBUNE on Tuesday
show that their course has precisely the con-
trary effect upon public opinion Governor
Eaton says: @The banks Of New York. in ex-
| changing gold for silver, have shown that
silver can be put into circulation. The silver
men in Congress will be strong enough to see
that the hint is improved upon" Clearly the
| course Of the banks does show what the Cover
nor suppOses, if they are to disregard the in
terests of those who depend upon them. An
instant perception of the fact that the New
York banks have weakened in their opposition
| to currency debascment fires the advocates OF
silver payments with zeal. As the Governor
declares the silver men have the power to re-
quire that silver shall be paid out. The Secre-
tary of the Treasury shows no intention TO re-
| sist The bankers of Ncw-York could, and
with abundant power. II they do not, are they
| faithful to the interests of this community and
of the countryf