The Helena independent., 1893-08-19
WRITER VERSUS BANKERS

A writer on finance, IN tho New York
Sun, who is presumably neither a banker
nor the creditor OF bank, declares dog
matically that "a more serious cause fol
anxiety is the absence as yet Of the
manifestation Of anything like COM
manding financial ability either ut the
capital of the nation or in this metropo-
lis. Here in New York we have many
excellent bankers and bank officers, but
not one OF them ls a recognized author
ity on any financial subjects but those
which directly concern the details of
the banking business. During the pres
ent crisis most OF them have shown
great tact and skill In conducting the
affairs of their institutions and unques-
tionably their good management has
mitigated tho severest features of the
monetary stringency. They were wise
enough to stand by one another in the
issue of clearing house certificates, but
not wise enough to give the same united
support to the rest OF the country.
Worst of all, by obstirately clinging to
their reserves, they have ocoasioned a
scarcity OF currency most injurious to
every one engaged in business"
From the point Of view Of man in
the top story OF tall newspaper office,
there may be no able fnanciers either
at the national capital or in the great
banking houses Of New York city. But
we incline to the opinion that the men
who have business relations with the
Gotham banks, and the people who
judge Of ability by results already
achieved, will disagree with Matthew
Marshall the Suns writer.
But tho bankers are abundantly able
to take care Of themselves. 1t is to the
last sentence in the Suns article that
we take particular exception. There
exist already temptations enough to
reckless banking, and that great news
paper should publicly encourage that
sort Of business is reprehensible in the
extreme, and had the New York banks
acted on the line suggested by the Sun
not one of them would be doing busi-
ness to-day. Only by virtue of the fact
that the New York banks clung tenaci-
ously to their reserves, and when the
stringency set in augmented them by
every legitimate means in their power
have they been enabled to keep their
doors open and prevent panic that
would have wrecked majority Of the
legitimate business concerns of the
United States. Their service to the
public has boon inestmable, and they
have been enabled to render that SER
vice by the exercise of the most con
servative methods Of banking. And
what is true of New York banks is true
country.
The fact that London banks do a
larger business on smaller reserve
than those of New York is no argument
that their methods could be employed
on this side Of the ocean with safety |
London is much more distinctly finan-
cial center than New York, and in addi-
tion is but few hours journey removed |
from several other great financial CEN
tors to whom it can confidently appeal
for aid in time OF need The money Of
this continent is widely distributed and
its concentration at any one place on
short notice is matter of impossbility.
The New York banks deal with con-
litions; the writer in the Sun deals
With theory. The solvency of the
banks is sufficient reply to the writer's
'spersions upon the tinancers of the
metropolis.