Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-06-06
BANKERS AND THE SITUATION.

They Did Not Try to Force the Issue of
Bonds, but Foresaw Dieaster.
Henry Clews in his financial bulletin issued
yesterday says;
"Recent reports from Washington say that il
is the opinion of the Secretary Of the Treasury
that the gold reserve is being drawn upon at the
present rapid rate for the purpose Of forcing
the government to issue bonds; in other words,
that it is q conspiracy. know Of my own
knowledge that such is not the case.
can positively say that in the present condi-
tion Of financial affairs there d mot Q bank
or banker today in New York that is particu-
larly anxious to exchange gold for United States
bonds. The time has passed for it to be an
object for them to do so (even il it
ever was. which 1 doubt neither have the banks
at any time been guided by self-interest In the
matter during the past six months. A few
sagactous bank officials and other experienced
financial men have suggested at various times a
bond issue and expressed q willingness to take
bonds in exchange for gold, as they foresaw
what would happen If such a policy were not
adopted, but now that what was expected has
really happened, as the present lamentable
state OF affairs is evidence OF, it only goes to
show the sincerity which backed their proposal.
II only having for its incentive q laudable de-
sire to avert the storm.
IT WOULD HAVE PREVENTED A CRASH
"Had a bond issue been made sixty days ago,
when the banks were willing 10 part with their
gold in exchange for bonds on a per cent
basis to the extent Of $50 o00. 600. the financial
crash which has since occurred and is
now spreading all over the nation would
not have had an existence. 1t is true
the banks were extremely anxious 10 do all in their
power to prevent such a sorr, state of things
Ii rhor
in preventing the failure Of their
correspondents, which a depreciation in
securities and withdrawal of cred
II necessarily causes. They therefore favored
the best and only remedy to meet the threatened
widespread financial disturbance, not unlike
to settle case before reaching the courts as
against the usual lawyers Judgment to effect
settlement through the courts after q crimina-
ton and recrimination fight.
TRIED TO MAKE AN AMIcABLE SETTLEMENT.
"Banking and business men Of New York
tried to settle the financial troubles of the
country before they reached the present crisis.
Their suggestions. however, were not ac-
cepted, while the lawyers method was.
SO that the business affairs Of the
country have now got to 60 through
a legal process. Wall street spectators have
never wanted an issue Of bonds to provide
for the recent disturbed condition of the
finances OF the country, because had one
been made ii would have entirely upset
their Interest in the stock market Wall
street operators thrive most during periods of
distrust. when fluctuations are WIDE and frequent.
which do not occur when full confidence ex.
ists. Conservative banking institutions
and merchants, however, are always the
parties interested in preserving the re-
verse state OF things, and they have been the
principal advocates Of the bond issue from the
first That class cannot be called a lot Of Wall
street speculators.' which is the term used in
Washington in political circles as applicable to
everybody in New York city,"