The sun., 1893-06-15
BANKS TO ACT In UNISON.
IMP oRTANT MEETING OF TIE CLEAR-
ING HOUSE COMMITTEE

1t ts Suggested that Each Clearing House
Centre Fool Its IssueS-By Equnliz!nr
burdens, Greater Accommodations Can
he Granted and Conhienc May ne Re-
-torsd-Lnx Methods OF the Irving Saw
ings Institution Failures In the West.
Secretary Cariso's forcible presentation Of
the operations OF the Sherman Silver law and
his lucid demonstration OF the fact that for .
year past the purchases OF silver. In accord-
ance with that law, havo actually been made
with gold, met with more natterng reception
in Wall street than the Secrctary's first Official
utterance. which, it will be emembered. sent
a chill through the country. The general
comment by bankers and other business men
was that tho statement should he OF great
value In opening tho eyes OF the business
community to tho actual work kngs OF Senator
Shcrmnn's iniquitous campaign legislation.
The banking fraternity. however. had little
time to dwell upon and discuss Secretary Carr
Isles interview. >nll day long every bank
official was busy in replying to demands from
the interior for accommodations.
Tho belief. entertained in many quarters,
that tho efliuN OF currency would cease as
soon as the troubles ut Chicago subsidized.
appears to have been dclusive for as a mat.
ter OF fact the request for funds yesterday
was fully rs great and apparently as urgent
as when the runs on tho Chicago banks were
ut their height Tho demands. however. did
not come from that centre alone. but from all
over tho country No bank escaped them:
and, SO far as can he learned. wherever the
account and collateral of the country bank
making the request were satisfactory the ao-
commodation was given. The banks, how
ever. are beginning to feel the prolonged and
unusual drain which the interior is making
upon them. and meeting Of tho Clearing
House committee was held yesterday after
noon to discuss the situation.
The object OF the meeting was to decide
upon a policy which would enable the New
York banks to give their country corresponds
ents all the assistance possible. or course.
tho first duty OF tho Clearing Houae banks Is
to themselves and their own customers. And
1t was virtually decided that all three interests
would derive the greatest benefit from the re-
sources In hand II the banks should act as q
unit in their efforts to restore confidence. The
New York hanks MS whole do not propose.
however. to act single-handed in their efforts
to conduct the business OF the country with
minimum OF friction. They will. 1t Is under-
stood. endeavor through the manifold chan-
nels at their command to persuade the banks
at all other important reserve centres to adopt
the same policy that they favor
The end in view can be obtained In only one
way. namely. by the issue OF Clearing House
loan certificates. That would make available
for use between the banks q vast amount OF
perfectly good assets which are now uncur-
rent. In word. it distributes the burden Of
accomm odations among the banks SO that the
entire Clearing House practically acts as q
unit in It's relation to borrowers. it is learned
from number OF trustworthy sources that
there Is no specific reason for this action
that Is. no particular bank or banks require
the support and cooperation OF the Clearing
House as a whole. The course referred to is
advocated simply on the grounds of public
policy and with the view OF anticipating any
strain that may develop.
The Clearing House banks have on moro
than one occasion resorted to this method Of
meeting an undesirable situation. but as Q.
rule they have not taken tho step until the
emergency actually occurred. The last time
Clearing House loan certificates were taken
out was during the Barring trouble. and then
action was not taken promptly enough by at
least two days and the business community
suffered In consequence. At that time the ex-
ample OF the New York banks was promptly
followed by Boston and Philadelphia. but
Chicago. which is Just now particularly under
pressure. did not pool its resources and has
been Dragging of the fact ever since.
In the opinion Of the most sagacious and con-
scrrativo bank officers of this city long step
toward the restoration Of confidence will be
taken if every Clearing House centre would at
once decide to issue Clearing House loan certif-
icates. even though the actual taking Of them
out should be deferred until the demands upon
them compel such action. This course would
virtually make each Clearing House group q
single bank OF discount. and would thus distrib-
ute the burden of accommodations to business
moro equally than at present and enable insti-
tutions that might be temporarily short Of cash
....I,f.
tracing attention or creating distrust.
The adoption Of this policy would. It 10
believed. result in an easier money market
throughout the country. 1t certainly would put
a stopto tho scramblng Of every institution to
secure greater supply Of cash than its neigh
bors- As n matter Of fact. bankers are unani-
nous TINT there is money enough in the country
to transact business. provided Of course. every
one does not try to do business on a cash basis.
The trouble hero is not similar to that which has
recently afflicted Europe. namely. IA scarcity OF
funds caused by tremendous losses in South
America and other quarters Of the globe. Tho
difficulty arises entirely from n curailment OF
credits. which has led b. tho withdrawal from
use of untold millions "fdoliars.
Tho remedy. by unanimous consent, Is the
repeal Of the sherman Silver Inv, and Wall
street is at loss know in view Of the appar-
entity general demand for It's repeal, which Is
the outcome uf the business disasters which
which hnyo "vcrtuk"n tho West. why Congress
is not given an opportunity to deal with the
situation II once. TIL" announcement yester-
day by senator Vest ui Missouri. II pronounced
silver udy."A1r. who is already on record as
sayiu.s tla' hr, vi, vote for the repeal OF the
law. tAat Lc ",iryr, H. repeal is certain at the
orIr., hing session of Congress was regarded
in Wall -rrrrt ns most encouraging At the
sam" tuic il '"rUyS intensified impatience at
thoar'gy in calling an extra session to dispose
ui til !I'G-Ur"
Wall street believes with THE Sun that II an
extra 81 ssiou is desirable because likely to
accomplish the work the Administration will
outline ior IT, the sooner it is convened the
lrttor. Another view OF tho case that is re-
cevnG scious consideration is that between
now and September the heavy exports OF
wheat row In progress and the foreign de-
-, nj Z, American saruritias whioh