The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-22

LATEST LONDON ororArroys.
SATURDAY. March /.

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As the greater part of the S4.577.OOO paid
into the Sub-Treasury this week by the special
depositary banks In response to the call
of the Treasury Department for 20 y
cent. of the portion Of proceeds OF the bond
aale left with those banks. was not made until
toward the end OF the week, the withdrawal OF
that amount does not appear to the full
amount in the weekly statement of averages
OF the Associated Banks; in other words, that
statement is made up on falling daily aver
ages. and the transaction will therefore have
some effect upon next weeks figures. Up to the
present time the financing Of the Treasury.
which has been accomplished chiefly through
the New York banks. has caused no seri-
Gus disturbance at this centre. though IL
has resulted in spasms OF stringency ut
Boston, Chicago. and Philadelphia. This cir
cumstance. together with the fact that the
three principal provincial towns have sought for
and obtained relief from this centre. is cumula-
tive evidence. II indeed any were needed.
that the bankers of this city as q whole
are always prepared for any emergency that
may arise. The history of the placing OF the
last Government loan demonstrates afresh that
the entire country. including the Treasury De-
partment, is dependent upon the intelligence and
resources OF Wall street. In the sense that Wall
street is the financial centre of the United
States, for the accomplishment of any under
taking requiring large amounts of money.
1t remains to be seen whether this reiterated
evidence Of the value of the brains and m ateria
resources Of Wall Street to the financial and
commercial interests Of the country will continue
to be ignored by politicians and their ignorant
and prejudiced constituents. 1t is quite possible
that the wedding out of weak. speculative, and
dishonest commercial concerns which Is taking
place may in time he attributed to the banks,
because in every community they are the prin-
cipal source of mercantile accommodations.
Such criticisms have been made before. but
they ignore the fact that the first duty OF
a bank is to its depositors. and in the present
case neither the banks nor other lenders of
money are responsible for the laundering man
ner in which the last Government loan was
fioated. nor for the widespread uneasiness caused
by political movements and discussions at Wash
ington.
II appears from to-day's bank statement that
a serious and delicate duty devolves upon
the Treasury Department, although the
amounts due the Treasury. both from the
special depositary banks and from sue
cessful bidders for the bonds, are com
paratively small. The Clearing House banks
report a total surplus reserve at the end Of the
week OF sla.DOO.OOO. but 1t is important to
note that the greater part OF 1t is held by
a few banks. and that two of them hold about
q third Of II. Sixteen banks, OF which
nine are national, are slightly below the reserve
required by law. The Treasury Department Is
powerless to improve this situation, so far as
direct payments on account of tho Govern
ment loan are concerned, but it might aggra-
vate the situation by calling in needlessly
any part of the remainder OF its balances In tho
special depositary banks, II the purpose of
those deposits is to prevent u stringent
EnnnAy EnaFkaf and nf fhrir UI0hlra ,uaI
to stiffen that market for effect upon
tho rates for foreign exchange, tho Treas
ury has apparently taken n wise step in
calling In 20 Y cent. of its deposits; hut II
seems plain that "A second call In the immediate
future would be harmful rather than beneficial.
The event OF the week has been the launching
of the Northern Pacific plan Of reorganization,
which took place last Monday morning.
The plan has not yet encountered Sc
rious criticism, nevertheless indications
OF dissatisfaction have come to the sur
face here and there. IL Is interesting to E0te
that the only attempts to ~construe the plan
unfavorabiy have been made In medi-
ums OF publicity that enjoyed the con.
fdence Of the President OF tho COM
pany while he was making his campaign
against tho Reorganization Committee aud
against the security holders generally. This Is
most unfortunate, for IL is calculated to create
tho impression that the official referred To may
be allowing his inherent resIiyeness to get the
better Of his commercial instincts. Besides It
suggests the spectacle of a captive warrior.
always a pitiAhls sight, even though he is bound
with golden chains.
The week on the Stock Exchange has been
unsventful. The market is plainly a waiting
one, and that being the case the net huctuA-
lions, which rs a rule are In the direction
OF lower prices, are natural. None Of
them is important. There has been 'ome
liquidation Of a speculative character. which has
been most pronounced In Tennessee Coal and
Iron, Louisville and Nashville, and a number OF
the lees active Stoke The requirements Of re-