New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-12
MORE GOLD FOR CUSTOMS.
\ PLAN OF THE BANKS TO SWELL THE
TREASJRY'S BALANCE.

PLAN OF THE BANKS TO SWELL THE
TREASURY'S BALANCE.
OUTCOME OF SECRETARY CAELIsLE's VISIT AND
TWO SOCIAL" DINNEEs-No BOND ISSUE
Or TEMPORARY LoAN-HELPLEssNEss
OF THE TREASURY UNTIL CON
GREss ACTs-uoPEs FROM THE
PROPOSED MAKEsHIFr.
The recent conference between the Secretary
of the Treasury and number of prominent
bank presidents yelled under the guse or
dinner at Dclmonico's has brought out distinctly
! the important fact that the Administration VIII
not resort to an issue Of Government bonds. or
even a temporary loan. pending the meeting OF
Congress in regular session. But the treasury
will probably receive from the banks OF TINS
city enough assistance through the ordinary
channels OF business to build it's gold reserve ur
somewhat. and it will thereby be helped oy
moral sentiment in managing its alairS uh'''
the National Legislature can furnish the re-
| lief impcratvely needed. The Vlsit OF MI
Carlisle to New-York has brought nome 10
the bankers of this city the full force Of the
/ anxiety felt by the Secretary in managing 'he
Treasury's finances and every effort Will bc
| !ntue 10 pTONluc any h''hf''"''
which may possibly be needed. The co-opera-
ton Of the leading banks. it Is understood mas
been assured as a result of the dinner given
Friday night by J. Edward Simmons PreSi-
dent Of the Fourth National Bank. to number
Of his associates.
MEN WHO WERE At Mr.. SIMNoNNS piNNHi'
MIR. simmons gave this dinner at his home and
the prctext was "A celebration Of the successlui
| work Of the Clearing House Loan Committee III
! av"rtlng the wors. disaster threatened pE N'c
! summer panic. The Loan Committee was rep
| resented among the guests by Freuel'A -
| Tappcn. president Of the Galla'ln Na'ioh"'
/ Rank. Henry W. Cannon, Of the Chase Ma
! tional: Edward II. Perkins. jr.. of the Importer"
and Traders: William A. Nash. of the Corn tx
/ change and George G. Williams. president oi
the Chemical National Bank. There also were
prescn; George +. Baker. president OF the FIRST
| National Bank. and William W. sherman, presi-
dent Of the National Bank Of Commerce. ne"
members of the Clearing House Committee ana
Richard Hamilton vice-presdent Of the Bowery
/ Bank But there were present three men whose
! names were not made pubic at the time
| Thomas l.. James. president OF the Lincoln Ma
! tional Bank; y Il. Hepburn. president "t u'
! Third National Bank. and Colonel John Nc
/ Anerney president Of the Seventh National
/ Bank The cooperation Of these representative
! bankers assures a large measure oi success III
any policy that may be attempted. II Is known
/ that the nnancia! and Treasury situation was
thoroughly discussed n the lines developed AT
tho Delmonlco dinner given last Tuesday TO
Secretary Carlisle. and the conclusions reached
were practically unGnim, us
AGAIN TO SOUND IINNNcE.
Il is believed that one imporan. gain 10
sound finance has followed the visit oi MI
Carlisle It ia understood that he has given
iup all Idea OF attempting 20 increase the coinage
! ~ standard silver dollars in order to secure
some profits on seigniorage. Whatever VIE"
the Secretary may have taken of his legal
authority in the circumstances. the impolicy of
/ ofteup,lng to force silver dollars into circula-
ton has been recognized by him. Competent
| men showed him that for every silver dollar
( issued from the Treasury there would probably
bc two dollars returned as "A result of such
action As the Secretary vas Indicating the
welcome reception which would be given to
assistance. from the Ncw-York banks at this
iuncturc he could not afford to repel bankers
/ by a suggestion of silver imitation. II may be
said authoritativcy that there is now no danger
~ the enforcement Of a dangerous silver policy
by th,. Administration Nor will Mir Carlisle
r...or, TO an issue If bonds or a temporary loan
fran, IN. banks These propositions have been
/ ., Thoroughly discussed and So much criticism
has been directed against them by a portion
! of the Democratic majority in Congress- that
/ ,he Secretary refuses 10 take any RISK IN thc
matter lie feels that he is bound hand ana
foot with regard L. any extraordinary measure
To prevent the Treasury expenditures from
4wanpimg the receipts. and lie VIII awai' ACTON
/ lv congress t. relieve his embarrassment
/ Owing to the depletion of th" total treasury
/ .,.h hoianca he Is unable even 10 secure gold
Ia. Ia. ss,iI
Treasury notes or legal tenders fpr the metal
held hy the banks. Yet II is his desire to
+ lr,.r.as. the gold balance for the sake ot us
+ moral effect IN rcviying confidence. with the
, .ncX influence on business activity
LITTLE POWER TO HELP THE rErNSrEY.
The situation. however leaves the NcwYork
hants with little power to assist the Treasury.
II has been suggested that they might with
hold the mutllatcd currency sent in for rcdemp-
,ion novmcnts for which have recently heavily
taxed the Treasury y resources. But the banks
u,us, have clean notes for the transaction of
thcir business. and they ar" unable therefore to
/ restrict tn any important extent the demand
for note redemption upon the TREASURY Ine
! ,r,uneiiiou to utilize the fractional coin In the
rr. as,lry for tho requirement of fresh gold re-
! serves Is impratticab!e also. as the banks could
use this coin only i'm small way. AS the lack
Of notes on hand prevents the Government from
! nx,hanpin. paper for gold. the problem Is Nirtu-
D
| the Trcasury's gold supply through customs dues
Th.sc dues are payable In cash. and the opera
ton is conducted outside OF The transactions De-
tNcrn the NcW- York Sub Treasury ana the
Clearing House. The banks doing business Tor
inrortcrs maintain special deposit ut the sub
Treasury. which IS checked against at The custom
, House by the importer whom lc pays his duties
These special deposits are made by the banks
in any form Of currency except National bank
notes which do not possess the legal tender
duaIitv The proportion of gold paid in on
special deposit. and therefore aCcruinS To the
, Trca sury through customs dues. has bc"n rang
ing lately from 30 to 40 per cent, the remainder
being covered b. Treasury notes. United states
| notes silver and silver certificates II Is I'm the
power of the banks to Increase or diminish the
percentage II gold they pay In. ana 1t Is now
proposed. by voluntary but concerted action To
raise the proportion as high as practicable. By
this method the gold used by the Sub-Trcasury
I'm settling its usual debit balances at the Clear
ing House would be thrown back 10 Government
hands by the banks through the special customs
payments. and thereby the net gold balance
/ in he Treasury I'M h. maint air cd in