New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-05


ENTERTAINED IN BROOKLYN.
The visit Of the Secretary of the Treasury to
this city afforded the occasion for an interesting
conference with the leading bankers of New-York
Yesterday which has given the banking community
a wholesome stimulus. II was the hrst Important
meeting between the head Of the treasury De
partment and the men who largely controi tine
financial interests of the country since Mr. roster
took up the portfolio left by Mr.. Window. Inc
conference of course informal. but the dls-
cussions were the franker in consequence ana re
suited in establishing a cordial relation between
the Secretary and the prominent bankers anu
brokers who met him. After the meeting the
current expressions of opinion in Wall Street were
attering to the breadth of views of the Secretary
ord while no definite policy could have been out
lined as the result of the comparing of notes there
WAS a feeling in financial circles that III
meeting anv question concerning monetary matters
the Administration could be relied upon to show
q Uberalitv consistent with wise conservatism.
The bankers were unanimous in presenting thelr
views on the main topic under discussion, while
the Secretary gave them in his utterances, iull
assurance as 10 the satisfactory condition OF Ihe
National Treasury and the readiness OF the De
partment to consider generously the suggestions
of financial men as respects its policy
The meeting was held at the Sul.1reasury and
lasted from ! q. m. until after p. IN. Secretary
Foster and Assistant Treasurer Roberts ana hot
have to wait long for the arrival OF the bankers
who availed themselves Of the opportunity 10
confer with the Secretary The bank presidents
present were George G.. Williams, of the Che1nl-
cal; E. II. Perkins, jr., of the Importers ana
Traders. w p. ST. John, of the Mercantile;
Henry w. Cannon. of the Chase T. d. Randolph
Of the Continental; Charles VI. Fry, of the Bank
of New-York: Logan c. Murray, of the United
States: Brayton Ives, of the Western National;
John ,Jay Knox, of the Bank of the Republic;
George S. Coe Of the American Exchange; j. 1.
Woodward of the Hanover; 7. c. Lounsbery, OF
the Merchants Exchange. and E. H. Wright, OF
the Park. Others present were Cornelius ~
Bliss and j. c. Cannon, cepresidents of the
Fourth National Bank; G. S. Nelson. vice-pres-
ident of the Seaboard II. Buckhout. vice-pres-
ident of the Third National; Charles S. Smith,
president Of the Chamber of Commerce; Charles
S. Fairchild, president of the Security Trust Com
pany F. O. French, president of the Manhattan
Trust Company; John A. Stewart. president OF
the United States Trust Company Jesse Selgman;
S. " White; George f. Crane, of Barring, Magoun
& Co., and Collector Ehrhardt
The subject discussed at the conference was the
disposition which the Government proposed 10
September in view of the circular of the Treasury
Department calling them in, but Tescrvlng the
right to extend part of the issue at or l-2 per
cent At the outset Secretary Foster showed
that the Government was amply able TO meet
these bonds when they matured- lie said that
he had nothing TO propose after the issue OF the
Treasury circular, but was glad to meet the bank
ers of New-York and receive suggestions which
they might wish TO make on the financial sltua-
ton There was no doubt Of the ability OF the
Treasury TO pay the bonds, but as a prudential
measure the Government was willing to consider
offers of extension at its own terms. MI Foster
said that the l-2s held to secure National bank
note circulation were largely owned by Western
hanks. and he had had intmations which led him
10 believe that these banks would be willing TO
keen their circulation by extending their bonds
at rates as low l or l - per cent, rs had been
mentioned in the official circular. Then Mr.. FOs
Ter pointed out that while the Treasury statement
of assets and liabilities might show an apparent
balance of only 81 100000, it had no bearing on
the public debt statement, and the Government
really had between $50, 100000 and S6O0OO,OOO
of available cash. The fractional currency and
the deposits in National banks entirely avail
able. and the exclusion of these items from avail
able assets did not affect the actual condition.
Upon this point ex-Secretary Of the Treasury Fair
after slight discussion, in the view that these
divisions of funds in the Treasury statement were
made for the convenience of the Department and
should not be taken as indication that the funds
were not all available for public debt purposes.
Mr.. Fairchid said that il the fractional currency
was all in quarterdollars or dimes there would be
little trouble in the Treasury getting them into
circulation.
There seemed 70 be a general assent to Mr. Fos-
ter's views on the Treasury assets, and then the
question of the rate of interest at which the l2s
might be extended was considered. John y.
Stewart said that l-2 per cent would be too low,
and - did not believe that the Government should
try TO borrow money at such a low rate. George
S. Coe took the same view, and urged that the
Treasury was not justified in trying TO drive
hard bargain with its creditors simply because it
had the advantage The Government should pur-
sue wider policy and make rate which would
be lust and fair 10 all interests concerned whether
directly or indirectly. President St John, of the
Mercantile National, pointed our the narrow mar.
gin Of profit on bank note circulation which after
deductng taxation and expenses left only trivial
traction of per cent. lie spoke to some extent
Oh the silver question, and confessed that on this
pojnt he was at odds with his fellow
bankers Secretary Foster entered into
no discussion of this point, but he
made few statements, calmly but with an
emphasis. which were pleasing to all the financial
men present lie declared that there was not
the slightest reason for apprehension in respect
10 the silver problem. The act Of July, 1890.
gave the Depar full authority to keep all
the money of the Government on parity with
gold, and the Government intended 10 do so.
If that authority was not sufficient ample pow
ems had been given in previous acts for the sale
Of bonds, if necessary TO maintain the gold re-
serve against the legal tender notes. =" ! have no
doubt about the authority given 10 the Treasury
department." said Mr.. Foster, 10 protect the
gold reserve and for this reason / can see no
reason 10 be disturbed at the recent export move
ment Of gold" Mr.. Fosters remarks on this
question were welcomed by many bankers who
would have been reluctant TO confess socitude