Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1896-10-16
IELEGRAPHIC.
LESSON IN BANKING.
Secretary curtis -IplaIns the Busl'
ness Of Money Changers.
Attacks uroS rnEn ARg UNJUST.
they Arc Not inI'resitd In Gold TX
ports any More lhsn Other
Illus ness men.

WAsuiTaroN, Oct. l5.-Aaiisiant
s.,fe,sf, w. Il. Curtis Of tho treasury
a,p,ttmont has written letter 10 AZ.
,i,taut Secretary Dabnsy Of the agfi'
cultural Department, In which he
dsfend. the New York bankers IRON
,bs allegations often inside that they
.re interested In the Withdrawal OF
cold itcm tho treasury. HOre lie tho
leitVii
uHon. Charles w. Dabnsy Jr--
Dear sif:-IlnioTtlng TO your letter
A. our conversation Of ysstorday con.
esfning the campaign attacks upon
no bankufn Of New Ypfk % their fola-
lions with the gold reserve, | dtalfe 10
iubmit the following Tor your eonsid'
aThe ,sfm raids by bankers atiNtw
Yafs upon thu treasury 10 one frequent
iy usru by writer's and speakers who
have no sccurRie knowloigo OF the
mftned by which notes are presented
lot redemption at tue sub-lr, atufy Ia
Now Yotk ~ tho ohafau.ot or number
of psfsons mrkinr tuch presentation.
Tue term 'baugci 'iscrms 10 DO assumed
IN niost cases 10 cover u class OF men
Who aro apparently engaged In with
atAwiug the gold from the govern.
msnpa reserve ard putting u away In
thulr private vaults Tor tueir own sol.
lsh purposes aud ~ accomplish certain
alleged improper orJcclr. rhe facts In
the case sic 10 different from there
ianoiiul ttntVmvnts tnat u seems worth
Whilu 10 call at,onton 10 them.
"By operation Of certain patufal
elmmurcial laws New York has come
10 be tho settling placu TOR almost all
contracts tor the sails OF OUT pf0iucis
t1poriud OF offered iof sails abtoat. A.
the ssmc time people desiring 10 rcmit
money abrosd 10 pay obligations OF u
Guy merchandise nte 81 the SANE mar.
ksi, and In ofdtr TO pay their obliga'
uons, purchases these pills Of exchange
10 remit % their creditors AbIoHu.
Large amounts OF coffee, ola, rico,tea,
tugar aud athVr foreign products con.
iumed hero hhve 10 be purchasoa
with foreign credits and paid TOT Ia
New YoFE with foreign exchange.
The natural result IL tnat whom We
are selling more goods abroad aud
there Afe more bills OF exchange In the
market than here IL demand Tor,
which Ia the cssv nj present, tho pfios
OF exchange tails. On the other hand,
when wo arc not selling M much
abfoRd and are buying more OF ate
paying cur debts 10 n greater extent
sbfoad, the price OF exchange rises.
9Th. people ongug rd In the banking
business may be- divided into tnfee
clabseii Firht, tho officers OF tue reg.
ulAr banks OF deposil, or Issue, inelud.
Ing the national bank, second, the
dealers In securities, some OF whom
have foreign connections through
whom they market a large amount OF
securities anu upon whom they draw
corresponding amount of exchange
In payment tor securities sold abroad,
anu n whcm they romii exchange or
gold In payment Tor securities sold
here; third, agencies or bfanehra OF
foreign houses vino are, perhapr, also
dealers in securities. but whose main
business IL buyiugand selling exchange
on Europe Tor tue pfofit which oAn DO
made In tue operation itsrli.
"rho fTat Glass are especially Inter.
eated IN tue general Ireapeflty Of tho
country and IN koepiug up the value
o. stcuri,irs, oeeaute n there 10 n lall
Ia steuTllie. held by them NJ collateral,
they are compelled 10 call Ia ihvir oui.
standing loans, which reduces thuir
liuss OF credit, uiminihbos thsir Ifonlr,
prevents them from discountiug com.
inofciAl paper, restricts mufcnniile AMI
Industrial entefpfitcs, aud VA tue end
creates failure H. burlneip anu general
financial anu eommefoial distress. This
Htesnd class are directly Interested IN
keeping up the value o. securities Ia
this county, which tAoy hsyo largely
sold abroad, anu tnnit Interests are u