The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-08
Bucolio Ideas Of New York Banking.

Representative ]. II. WALKER of Massa.
chusetts, Chairman Of the House Commit
tee on Banking and Currency, entertains a
very simple and bucolic conception of the
way In which banking business Is trans.
acted in New York. Commenting upon
that part of President MCKINLEY's mes.
sage which relates to the locking up Of re-
deemed Government notes, he says:
1.-THE recommendation that greenbacks be not paid
out except for gold when only redeemed In gold. IL
enacted into law, would enable one man with
81. 0O0. 900 OF greenbaoks demanding gold of the
Treasury and then depositinR the gold In the bank
for greenbacks, and repeating the process $40 timss.
to retire the whole es+o. o0o. 900 OF greenbacks in the
time 1t would take him to oscillate between the Sub
Treasury in New York and his confederate foreign
broker"
Mr.. WALKER evidently thinks that q
million Of dollars in gold can be handled an
easily as a dozen of eggs or a barrel of flour.
He has never seen that amount, either of
g%reenbacks or Of gold, and does not con-
slider that, even If a million In greenbacks
could be had from any bank for the asking,
a million in gold coin consists of not less
than $4,000 pieces and weighs 25, SOC, 900
grains, which, at 1000 grains to the pound.
makes 3,714 pounds ~avoirdupois, or nearly
two tons. To count in the greenbacks
and then to count out the gold for it, is an
operation which requires much time and
labor, and the Treasury officials, II they
were SO disposed. could easily make it con-.
sumo the best part Of a day. To repeat it
$40 times might require nearly a year.
Surprising, however, the gold absorbing
operator and his confederate foreign broker
to persevere for a year in their nefarious
have to find storage somewhere for the
$346, 1000, 900 in gold which they would
amass. They would ave either to build
special vaults here to receive it, or else ship
it abroad. Either expedient would be cost
ly, and no possible profit would compensate
them for the outlay involved in it.
Then, does Mr.. WALKER fancy that any
thing like $346, 10000 in greenbacks
could be withdrawn from the New York
banks or from circulation and locked up in
the Treasury, without opposition from any
quarter2 If he does, he does not know our
New York bank Presidents. AS soon as
they found out what was going on they
would shut down on the conspirators, and
defeat their plot. Even without other
action, the locking up of only a few mil
lions of gold would produce a financial con-
vulsion which would effectually stop fur
ther movement in the same direction.
This is not the first time Mr.. WALKER
has made an exhibition of his ignorance of
practical nance. About a year ago he
wrote a letter which was published in the
Boston Herald, in which he asserted that
the circulating notes of the Bank of Eng.
land have no special lien on the gold held
in the issue department for their redemp-
ton. but stand on the same footing as the
claims of the banks depositors. Even the
Evening Post of this city. which approves
Mr.. WALKERS views in other respects, had
to contradict him in this one, his error
being so palpable that no defence could be
made for it.
Yet Mr.. WALKER is Chairman of a Com
mittee on Banking and CURRENCY