New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-16
4 THIN DISCLOSE.

Ifanythipg could be more foolish than the
at,emnted secrecy in the conference between
the banks and the Treasurer it is the manner III
which the course taken is excused by some Oh the
bankers They are not going to receive silver
i'm settlement; by no means. 1T the treasurer
has not gold with which to pay them, they VIII
lend him the gold themselves and take his Sill
yer as security. Of course every banker knows
that the result is exactly the same a. II the
n ,vment had been made in silver. The sa ne
amount of silver gets into the vaults OF the
banks in place of gold. Still there are bankers
who fancy that in some curious way this sort OF
thing is going to "prevent public apprehen-
sion.- and avert the evil consequences which
thu. open abandonment of the gold basis by the
banks would coniessedly involve. 1t Is to be
noticed, too, that most OF the bankers VINO taih
at all speak with unconcealed contempt OF the
course which has been taken. Ii Is throwing
tub to the whale" one says; we are only WHIP
ming the devil round the stump" observes an
other; we don't like this silver physic, Dnt
think it will taste better ne winter than IL
does now.r says another /" there will now be no
difficulty in maintaining gold payments until
Congress meets says fourth. No. probably
not: almost any man can pay in gold, If his
creditor will let him have the gold to pay with.
and take his cats and dogs instead as security
d It the banker yho calls this gold payment y
show, that he is more anxious 10 maintain what
bankers call confidence than TO preserve his
own reputation for sound sense.
The opinions of The journals are equally
mixed. The sun thinks that silver payments
are altogether proper, and the sooner the
Treasurer begins them the better. The Herald
frankly admits that -The Secretary of tne
Treasury has continuing authority under the
sact of January 1885. whenever the reserve
for the redemption of United States notes be-
acomes impaired, to sell bonds to obtain gold"
But it thinks there are good reasons why TINS
power should not be used, and that the banks
for their own interest ought To step In and save
the Treasury from the necessity of using il,
which is frank confession that the political
emergencies of the Administration ought to
constrain the banks to take the load OIL lis
shoulders Another journal says that the
banks have a vast fund of gold" and they can
therefore afford to spare a little of 1t. But
whose money is this which the banks hold !
There is the root OF the matter. The money in
the banks is not their own. Ii belongs to Gus
toners. who have trusted the banks because
they have given solemn assurances that they
would maintain gold payments for the mselves.
whether the Government did or not. That
money belongs to individuals, and it is "A sacred
trust with which the banks have no night to
tamper. Let the suspicion go out that they
are willing TO take eats and dogs, or silver
certificates, or silver dollars, into their vaults.
in place of the gold which belongs to their de-
positors, and the gold which belongs to their
deposi'ors will be drawn out more rapidly than
they desire. The plain truth is that the banks
have not large fund of gold. Their customers
have, and they want to keep it. They have
trusted the banks. because the banks have
seemed disposed and able TO perform in good
fifth their obligation to return in gold all
money hitherto entrusted TO them. Ii the
banks do not mean to stick to that understand
ing and To do ii resoutciy. though it may cost
some inconvenience. and Involve the opening
of separate accounts for silver, then the sooner
they let the commercial community know that
fact the better. Certainly they must under
stand that nobody is deceived when they pre-
tend to be maintaining gold payments, but are
in fact lending to the Treasury the gold which
they receive. Neither the community, nor, I'M
happily, the silver fanatics in Congress, will be
for moment deluded by such a performance.