The San Francisco call., 1896-08-14
There Will Be No Attempt to Pay
in Silver Should That Metal
Be Remonetized.
BANKERS MUST BE HONEST.
Their Prosperity and Existence De.
pends on the Confidence of
Their Customers.

One of the unexpected results of the
present agitation of the money question is
the uneasiness that has been created in
the minds of savings bank depositors, and
for which there is no apparent reason.
This feeling has deferred some from max
ing further deposits and induced others to
withdraw some portion. and in few in
stances ALL of their money from the insti-
tutlons to which it had been intrusted.
The result of this, it is claimed, is notin
any way to weaken the banks, but to cause
a contraction in the present amount of
gold in circulation. People, instead of
putting their savings in banks, whence
they are returned to circulation through
loans, keep their money about their per-
son or secrete it in some place in or about
their dwelling, where it is kept idle and
rendered unfruitful.
This feeling of uneasiness is due to the
fear that should silver be remonetized at
the ratio OF 16 to L the banks would at
tempt to repay deposltors who had sur
rendered gold in silver coin that would
in the opinion of these fearsome people
be at discount.
How unfounded are such misgivings is
shown by the interview with President B.
A. Becker of the German Savings and
Loan Society.
ceived than this idea," said Mr.. Becker
when the subject was broached to him.
"You ask whether the savings banks will
attempt to repay depositors in silver
should free silver be declared for in the
coming election. Most decidedly not.
"The bank that would attempt to do
that could not keep its doors open for
forty-eight hours. There would be no
need to pursue such course. Let me
explain:
this City, and of the whole State for that
matter, are made payable in gold coin
both principal and interest. We receive
gold from depositors-the gold with which
to make these loans, and it is preposterous
to suppose that any bank will attempt to
pay back to depositors anything else but
gold.
I'VE handle very little silver. and fire.
quently have TO send to the Mint to get
what little silver coin We require to make
change. We would thus have to 60 out of
our way to procure silver, and the method
we would have to follow under such cir
cumstances would he nothing less than dis
honest.
THE moment you find man dishonest
you don't want to do any more business
with him, and the savings bank business
more than any other is built up on conf
dence. The moment that is lacking up
goes the bank"
When Mr.. Becker's attention was called
to the fact that question had arisen as to
whether contracts, notes, mortgages ETC.,
made payable in gold coin could not be
paid in any legal tender-silver, if that
metal was remonetiZed-he replied:
"a specific contract law exists in Cali
fornia which provides that contracts made
payable in gold must be paid in that kind
of coin. There are some States in which
there is no such law, and all debts can be
paid in any legal tender, no matter what
is specified in the contract. In such
States gold, greenbacks. gold notes, silver
certificates, National bank notes and sill
yer coin. should silver be remonetized,
would all be available for the use of the
debtor