The times. [volume] (Richmond, Va.) 1890-1903, 1893-04-28
THE ADMINISTRATIONS PROPOSE
TION TO THE NEW YORK BANKERS.

II seems now to be the general con-
sensus that In the conference between
Mr.. Jordan. representing Mr. Carlisle. ana
a body Of New York bank presidents
which took place in New YORK re"
days back. Mr.. Jordan proposed that the
New York banks should loan the Govern
ment So. 600. 900 OF gold coin and that the
Government should deposit with the SUD-
Treasury in New York sSO.ooOooo OF us
per cent. bonds at the price OF III IL
10 be held as collateral for the gold CON-
equivalent TO per cent interest anu
that the sub-Treasury should issue TO
the banks $50. 100000 OF certificates TO be
held bv them while the bonds were so
held by the sub-Treasury. IL the Govern
ment chose. IT might. within one year re-
turn the s5O,O0O.Oo0 Of gold coin with In
| terest at per cent. TO the banks ana
take in its bonds and certificates. IL II
| did not return the coin within the year.
the banks might surrender the certificates
10 the sub-Treasury and take the bonds,
which the Government would have the
right TO pay of at the end Of ten years.
1t is claimed that the proposition had Mr..
Carlisle's signature to It,
The certificates which the banks were
10 receive in place of their coin were
not. however, TO be available to them.
either as circulation or as reserve as
there was, of course no authority OF law
10 make them either. The banks de-
clined the proposition and, most natural
ly, as II seems 10 us.
The coin now In the vaults Of the banks
is there for all purposes-either for cir
culation or for reserve. They may pay
checks on them with IL or they may hold
II as that reserve fund. which the national
banking law requires. and which all SEN
sible and prudent bankers always keep
on hand. 1t is therefore large part OF
the current fund with which the banks
do their daily business. and is just as
essential to their life any other part
Of their fund. To have agreed to the
Governments proposition. therefore. would
have been for them deliberately to
agree 10 part, without consideration. with
a very large part Of that fund which is
absolutely necessary to their existence,
and. upon the Governments part, 1t would
have been 10 take this very large sum
of the currency of the country out of the
channels Of business, and lock it up. 1t
would have been for the Government TO
aid in constructing an already CONSTRUCTED
currency. The banks would, of course,
have been compelled to force their Gus
toners to pay them up this amount
If the proposition had not forbidden the
banks to use the certificates as part OF
their reserve and circulation. that is, II,
under the law, Mr.. Carlisle could have
authorized this, ii would not have been
an entirely unreasonable one. But this
| condition made. it out of the question:
But at best, it's a strange proposition TO
come from a great Government. The pro-
position, of course, comedies that the adj
ministration has the legal authority TO
issue bonds to secure gold That hereto
fore disputed point is settled by this offer
The sole question to be considered, there
| fore was whether an emergency had
arisen which justified the administration
in exercising a power which 1t had deter
mined that it possessed. The fact that 1t
made this offer proves cOnclusively that
| II thought that emergency had arisen
II then, the emergency was on the coun-
! try, 1t was not the time to be dckering
over small matters. The statesman-like
way of dealing with the situation was to
exercise the power that the administration
| had determined it possessed, and to sell
the bonds openly and above board for
| the gold which the Government wanted
Seeking first of all to sell the bonds
abroad so as TO bring back some of the
gold which has been taken from us.
The United States have been pinched by
| Russia and Austria and Italy for gold,
and those nations in order to protect and
improve their credit have absorbed all
the gold they could, and those lenders
who would otherwise have preferred to
credit the United States have been
alarmed by the uncertainty of the redemp-
| ton Of their obligations in gold and so
fearing payment in silver have with
drawn their gold and transferred the
credit to nations in no sense so worthy
| u IL materially DIS the OIlltu cldNtSs
Now that Mr.. Cleveland has declared the
policy of TIE Government in most con-
vincing manner, and 1t being apparent
that he has the support Of the vast ma
jority of the people of sense and sub
stance. there is no reason why the United
States should not sell their bonds to for
eign bankers-on the best terms-and
restore at once the gold reserve and con-
fdence at home and abroad, which by
the way is worth more for the solution
of our financial troubles than the sale OF
a thousand millions of per cent. gold
bonds Even that great sum may be ex-
hausted, but confidence well established
and continued would be never falling
stream Of prosperity to our country.
This would be true craftsmanship and
Mr. Cleveland. we believe. will accom-
| pish this result for our people.
--------------------
| THESUPREME COURT AND THE SOUTH