The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-04-28

A day or two since the lNTELLIGEEcER
quoted Henry Clewa as holding the
New York banks largely responsible for
the financial crisis through which the
United States treasury is passing, The
Commercial Bulletin, OF New York, evil
IDENTIFY agrees with Mr.. Clews, and in
its issue OF yesterday declares that it is
impossible to emphasize too strongly
the fact that the real immediate cause
OF the existing arrangement in the gold
movement centers with the New York
banks.
The Bulletin proceeds in q very
lengthy article to back up its assertion
by showing how, ever since the active
outflow OF gold set in. the banks have
sought to protect their own stocks Of
gold, first by using greenbacks or sher-
man notes rather than gold in payments
to depositors for the settlement of Gus
toms duties; and, second, by observing
like discrimination towards their GUS
toners who wanted gold for export.
Tho effect on the treasury has been to
largely restrict its gold income and to
compel the government to meet the
commercial or export demand for, gold
from its own resources provided by law
for other and purely public purposes.
This policy has, according to the gov
eminent reports, been enforced TO a
very great extent, and the Bulletin
quotes the figures to sustain the state
ment, concluding that the New York
banks stand unqualidedly responsible
for having created a run on the treasury
gold, which has produced the present
financial humiliation OF the government
and created general financial confusion.
The only excuse the banks eau offer
for thus draining the treasury is that,
in view OF the serious problems grow
ing out Of our reckless silver legisla-
ton, they deem it prudent to hold on
to their gold. This reason, the Bulletin
comedies, is entitled to measure OF re-
spect, but it inquiries if it is prudent
way OF escaping the bad effects OF silver
legislation to incapocitate the govern
ment for maintaining its guarantee
against the legal tender money legally
payable in gold. Here again the Bttlie.
tins views coincide with those OF Mr..
Clews. quoted by uu heretofore, when
it says, "The position taken by the
banks is utterly irreconcileable with
sound public policy and places them in
a most unenvisble position before pub.
lie opinion"
Tho proposition Of tho banks that tho
treasury shall issue bonds-in other
words, to repair its reserve and enable
them to continue the draining process.
is not only monstrous, but partakes OF
the nature Of dishonest dealing Com.
menting on this proposition, financial
authority says:
No such treatment Is Desdiul In order TO rem.
edy the situation. The banks are responsible
for the existing trouble, and they should be eX-
pectGd to apply the remedy. Remedy Is within
certain roach, II the banks will cease their In
direct drain upon the treasury and pay out their
gold or gold certificates 10 whoever wants gold,
either for payment Of customs duties or for eX.
port. Under tuch conditions the treasury in.
come will speedily restore the deficiency In It's
stock OF gold, and the trouble In that quarter
ana tho distruS which " creates Will cease.
After this situation is cleared the bank
problem which would remain would adj
just itself in due course OF time, though
perhaps not after q severe strain.