The sun., 1893-08-14

imm medately proceeding to vote upon the re-
| peal OF the silver purchasing section OF the
Sherman act So many conflicting intcr-
osts have to be reconciled. so many per-
sonal ambitions eratined. and so careful pro-
vision made for future contingencies that
| much deliberation preparatory to final action
! is unavoidable Tho delay naturally irritates
us, but II. as now seoms probable. 1t should be
followed by q decisive dcfoat Of free silver
| coinage after a thorough debate OF the m easure,
| the result will be much better than an imme-
| diate and hasty suspension Of silver purchases
| alone. Confidence cannot be permanently re-
| established so long as q possibility remains OF
| the adoption Of the silver standard at any ratio
| whatever. We must convince capitalists both
| here and in Europe that when they lend gold
they will be repaid In gold and not in money
worth less than gold and this the repeal OF
tho silver purchasing provisions Of the Sher-
| man act, BIZ itself, does not guarantee. Be-
sides. just at this juncture. the mischief pro-
duced by tho act is more than neutralizcd by
the boarding Of currency. which its continued
operation tends to counteract the Treasury
notes issued under its provisions being far
less In amount than the paper money tenn
porarily withdrawn from circulation. We can
therefore afford to wait tho course OF events
with patience and without discouragement
more serious cause for anxiety is the alb
sence. as yet. Of the manifestation Of anything
like commanding financial ability either at the
capital OF the nation or In this metropolis.
Tho President is not indeed. expected to
be himself o skilled and experienced Gnan-
cier. but he can call to his aid the best
experts OF the country and profit by their
counsels. Yet his Secretary Of the Treasury
Is q cipher, and though his message to Con-
gress was presumably written after consulta-
tion with those whom he thought ompetent
to advise him. 1t Is remarkable for its lack Of
all recommendations save that OF the stoppaRe
OF silver purchases. 1t is silent in regard to
the tax on State hank circulation silent In re-
gard to the increase OF national bank circula-
tion. 1t says nothing about leGalizing the
present unauthorized gold reserve fund. and
nothing about giving explicitly to the Sec-
| retary of the Treasury the power to pro-
cure gold for that fund by the salo OF
bonds. 1t tosses tho whole subject of the
finances bodily into the lap OF Congress. to he
wrangled over at pleasure. This might be
pardonable IL either in the House Of Repre-
Bentatives or in the Senate the party which
elected President Cleveland was represented
by man competent to shape legislation on
financial matters and to conduct the debates
on them to a successful termination. but no
such man has as yet appeared. The Republi-
cans are more fortunate in having in the Sem
ate. In the person of Senator Sherman. a we'll
informed and able fnancier as well as debater.
t;:' he Is o selfish and dishonest politician.
who would rather the country should go to
ruin than that it should be helped by any
measure which would benefit his opponents
Here in New York We have many excellent
bankers aud bank officers. but not one of them
is a recognized authority on any financial SUBJ
jects but those which directly concern the de-
tails Of the banking business. During tho
creie mr. pf have ch
tact and skill in conducting the affairs OF their
institutions. and unquestionably their good
management has mitiGated the severest fea-
lures of the monetary stringency Still. after
all. the ability they have displayed has been
merely that Of prudent shopkeepera Their vi
sion has not extended beyond this city. and in
many cases not beyond their own immediate
field Of action. 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 tho rest Of
the country. Worst OF all. by obstinately
clnging to their reserves they have OCCASION
cd q scarcity Of currency most injurious to
every ono engaged in business,
Tho superstitious reverence for his reserve
which dominates the ordinary bank Presi-
dents mind is truly remarkable. The single
and only use OF a reserve to a bank is to pay
the demands Of depositors and there Is no
natural law fixing its amount Our national
bank act requires in the larger cities 25 per
cont of n bonk,s donoeIts 70 ba Rant on hand
in lawful monev and IN smaller nlaces IL ner
cent. but this IA nurelv arbitrary In Ion.
don. banks doing tan tImea as much bnsines.
as 6i,rs 90 along and command i'm nlicit CONF.
dence with reserves Of less than 10 per cent
OF their deposits. and in ordinary times that
nercontaee would suf1ca bore Our St,to
banking Iaws have no nrov,sion IN roeard 70
reserves but state hanks balancing tothe Nav
YORK Cloarinp House ASSOCIATION ara reouirad
bv tho rules ~ that association To keen tba
same reserves that national banks do namoIv
o. ner cent q, thor donosits Tho nationai
bant act f,rtbor nrovidos that vb.n n bant,s
resarva folls he,ow tba nrescrihod lir.it tb.
hank "sbaIl not increasa its lIob,Iitias hv
mating anv nav Ioana or d,soo,rts ntharvisa
thu, hy disoonntirg q or nnrobo sIna MI. -, ~
change navable at sicht nor mors INV d,vi-
dend Of ito nronts nntiJ tho reouirod n-onor-
- 1900 " S.NFD