The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-19
THE NEW YORK BANKS HOLD THE
KEY TO THE SI1UATlDN

KEY TO THE Sfl UAU0N.
The New York Journal Of Commerce
has. for several months, been hammer
ing away at the proposition that the
| New York banks are really responsible
for the continuous drains upon the
Treasury for gold. for the reason that.
before the panic of 1898 set In. they sup
piled exporters of gold with all the gold
they required. and they also furnished
gold with which to pay import duties,
whereas, since 1893 they, like the rest OF
the country, have become infected with
the panic and have boarded their gold,
thus compelling exporters of that metal
to draw it from the Treasury. which got
no new supplies from imports.
The argument OF the journal OF Com
merce is undoubtedly sound. If the New
York banks had continued steadily TO
supply gold to exporters all through the
panic and since, the Governments gold
reserve would probably have never been
seriously impaired, and with all iegisla-
ton looking to further coinage of silver
repealed, matters woull probably have
stead!ed themselves long ago, and the
country might nov be far advanced to-
wards leaving the silver fanatic behind
and going forward TO another period or
prosperity and development. The chief
proposition which MIR. Walter Bagshot
wrote his splendid work on . Lombard
street to elucidate was that in times OF
i.t nj
~ consists in banks paying out money as
fast as IT is called for. instead OF taking
any step whatever that would indicate
the slightest nervousness in the premises
After the panic of 1851 the directors OF
the Bank Of England were examined by
committee of Parliament, and they
testified that that was the policy they
pursued in the recent and in all emer-
gencles. The banks of New York would
have done far better TO pursue this line
of policy, than to have pursued the policy
which they have actually followed. OF
shutting up their own vaults and sending
exporters of gold to the United States
Treasury. They adopted the opposite
drain on the Treasury, and that kept alive
the party of silver cranks. and these
kept up their attack on the standard of
value and the country is verse OF to-
day than IL was in the worst days OF the
panic There is one feature in the situa-
ton however, that contains an element
of great hope, and if the New YORK
banks, recognizing its potency and i'm
portance, will change their course II
may yet end all our troubles in a short
time.
Heaven be praised. the country Is
about to be relieved Of this Congress, one
Of the worst bodies of legislators that
ever cursed any country. It's power OF
evil is, in the Lords mercy, nearly ended.
The country has now before it good
long breathing spell, during which the
pesiferous politician will be spancelled,
tonCue-tied and committed to that oh
security which should forever envelop
them all. This gives the country plenty
OF sea-room. and If the New York banks
will only do their part in aiding the Adj
ministration. we believe that all viii be
well. The Washington Post says it Is
generally understood about the depart
ments in Washington that the explana-
ton of the Administration allowing the
ACKNOWLEDGEMENTS syndicate to take the
four per cent. thirty-year bonds at the |
low figure of 1914, is that an unwritten |
agreement was come TO between the .Ad-
ministration and the syndicate, by which |
the syndicate has promised to protect the !
Treasury against any more gold raids !
during the balance of Mr.. C1eveland's |
administration, and the New York jour |
nal OF Commerce. right in Wall street !
and familiar with ITS secrets, says:
There is much more than mere rumor |
for believing that the syndicate VIII, in
such ways as seem feasible. back the
United states Treasury throughout Mr..
cfeyeiand's administration.
II Mr.. Cleveland has really made this
agreement with this powerful body of +
ii is the crowning act of all the
great deeds that he has done for his coun-
try. IL he has this agreement with them.
il only rests with the New York banks to
abandon their selfish and cowardly fears,
and to add their all-powerful influence 10
the efforts Of the syndicate for the
United States Treasury 10 be made per-
fectly secure. and 10 be placed beyond
the possibility OF another dollar of gold
being drawn from IL. With silver. iegis-
alton ended. with al Grains on The