New-York tribune., 1886-08-15
NEV-YORK BAAhS AAD SILVER


The ANNA! convention of bankers has adj
jc,uncd without day, having done and said less
.han usual of public interest," but It's discussio!
| OF the silver problem had one interesting icat'
me. a particularly noteworthy observation
c;ano from a banker OF Indiana who distinctly
placed the responsibility for uncertainty as t,
the maintenance of gold payments with tn,
New York banks. If there is any uncertainty
about the matter, il exists only because these
b:,uks have not adopted plan which WAS sug-
ccsed to them as soon as the silver act wa
uassed, namely, that they should at once opel
and keep separate accounts III gold. Had this
h9cn done, the few persons who wanted u
handle silver at all could have done so. but the
great majority of dealers would have had all
their accounts in gold without the danger oi
Il change i'll the standard. Funds current at
New York, where all the exchanges OF the
whole country arc settled, would of couiSc
have been required in the dealings of all othci
banks with those of this city, and thus II
would have been left to each of these banks
throughout the county to receive much or lit
Tie silver on deposit, aS they might please, Ill
view of the fact that gold wouli have been re-
auicd in all Ncw-Yoik settlements.
III VIII Dc Il SWClcu, vi COtN>t, 'h'tO 'u'~'hH
tially tie same end was reached by the Clear
ing House resolution that all balances between
.he banks here should b. paid i'll gold OF it,
cu,livalcnt. But the obvious fact that the
banks Of this city have been in much anxiety.
since the silver act passed, about their ability
To maintain this resolution in certain contin-
gcncics, is the conclusive tcply to this reason
irg. 1t is not Necessary hcic to ask how ia'th-
lul!y the banks have observed the implied OBJ
;ica,ion TO each other which this resolution IN
volvcd, or how far it ha, been strictly enforced
IL is sufficient that the banks know and the
county knows that tho position Is very dlher
cnt legally ard practically, from that which
would have resulted il the accounts with every
dcpositor and every borrower had for ycais
pa>t been made and kept Is special gold ac-
counts.
The New-York banks enjoy large privileges
and large revenues, because they perform a
service of vital necessity to the commercial
interests OF the whole country. The obligation
to perform that service with stlict fidelity will
not be questioned. Upon them rests the ie-
,ponsblity of preventing any dcba,cmcnt OF
the standard in commercial transactions, and
they have unGucstoncd and am, lc power undci
INC laws OI new lOlh W no IL tonlDicN1g
But the wcll-known truth, at least to New
York bankers. is that they were never quite
agreed among thonsclvc, in regard to this
responsibility on the methods necessary TO meet
It fully Some of the banks wanted to bc free
70 receive deposits of silver, and TO Use that
kind of money as if 1t were in all respects
equal to the money received by other bank.
Some thought it bad policy to seem antagonistlo
10 the Treasury or to the policy of the Gov
cIrmcn'. Differences of opinion have pre-
vented decisive and united action Yet the
fact remains that the duty rests upon the New
York banks to prevent any dcba>cmcnt OF the
commercial standard. and they can do that
thing as surely now u. at any time in the past
The matter is one of arrangement between
;h,m and their customers, who want the bc,l
protection against emergencies With the banks
Lave the power to give. If the c0ursc suggested
at the Bankers Convention should be adopted
by the Ncw-Yo.k banks, it would make a great
difference with the commercial and industrial