Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-03-08
BONDS AND BANKS.
A Pittsburg Financier Tells What
He Would Do if He We're
IN SECRETARY WINDOWS SHOES.
Schemes for Preserving and Strengthen
ing the National Banking System.
MOVEMENTS IN PETROLEUM AND STOCKS

"What would you do if you were in Sec
retary WINDOWS placer" was the question
pumped at one of our oldest bank cashiers
in the city yesterday.
After scratching his head few minutes,
he looked up over his spectacles and re-
piled:
'That's hard question to answer. It is
big thing to direct the finances of nation
like this, where there are SO many conflict
ing interests. 1 think the first thing l
would do, would be to sit down and put on
my thinking cap, and inform myself as to
the condition of the country. Mr.. Window
is an able fnancier, but conditions have so
changed since he had the Office be-
fore that he will be compelled to
work on new lines The Treasury
policy of eight or ten years ago would not meet
the present requirements of the country. He
regar led national debt as a national evil, and
endeavored to wipe it out as fast as possible.
There was nothing wrong about that, but we
have reached a period when the debt is no
longer burdensome; in fact, it is more OF
convenience than otherwise, since the out
standing bonds afford safe investment for
certain descriptions of funds which would
otherwise be difficult to dispose of without con-
siderable risk"
what course would you pursue with the
bonds?'
II would stop calling them in and let them
expire by Limitation of law. The longest of them
have only about 19 years to run; the others
will mature in 1892. Of course, the short
lived bonds are of no special benefit to in
vestors, but the others are. As they are help
| to business, see no reason why the Govern
meRt should rush into the market and pay a
large premium FOR the privilege of redeeming
| them before maturity. This, it strikes me, is
an unnecessary waste of the public money, and
| it is not demanded by the exigencies of busi-
ness nor by the public 1t would cost less to
let them die a natural death. Some hold that
their redemption is rendered necessary by
| scarcity of money in circulation and to reduce
the Treasury surplus. Neither of these argu-
ments are conclusive. There is no scarcity of
money and the surplus could be cut down in
some other way that would benefit the people
instead of the bondholders-in building up the
navy for instance"
what would you substitute for the bonds
about to expiref'
THAT is very important question, and it
has been discussed by the ablest financiers in
the country. OF course, if the basis upon which
the National banks do business be taken away
something else must be substituted or they will
be compelled to wind up State banks might
do in an emergency, but as it is possible for the
States to repudiate their obllgations-as some
of them have done-this form of security would
lack the element of safety that makes Govern
ment issues so desirable. Railroad bonds and
stocks are out of the question. There is too
much water in them to build a great banking
system upon. If were Mr.. Window 1 would
recommend the issuing by Congress OF spe-
| cial bond to meet the emergency. This would
be satisfactory to the bankers, and think it
would be to the people. 1t would preserve tho
best banking system the world has ever known
very little change would be required to meet
the new conditions and wildcatting would be
| killed forever. We all know the inconvenience
and losses that grew out of the old system of
State and individual banks which fourished
before the war. I don't think the country
would willingly undergo another such inflic-
| ton"
"Do you know what Mr. windom's views are
| on this subiectf'
mot particularly. He has always been known
as an advocate of the National banking system,
| and am of the opinion that he will formulate
plan during his term of office by which it will
be preserved and strengthened