Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-08-20
THE BANKS AND BUSINESS.

The New York Financier of August
14,h tries TO keep Il stiff upper lip and
n cheerful countenance, for it would be
demoralizing indeed If the chief herald
of prosperity, that has been whooping
up sort of millennium in business as
sured by immense European and other
| foreign balances of trade in our favor.
by vast infows of gold from Alaska.
Australia, Africa and all quarters of
| the globe, should now weaken and join
the calamity howlers. 1t is forced to
tell some things, nevertheless, or he
left: and so we learn from it that "thc
reserves OF the New York Clearing
banks show an intentionally small
margin of excess. Chicago, Cincinnati,
Pittsburg and other cities have been
loanirg ut this centre. Bankers
are not looking for two per cent. call
money. but two per cent. call money
is not one of the blessings of finance
that it is sometimes imagined. This
country, with its great volume OF
money, is doing business that keeps
spared, and if the demand IAN be
maintained. nc better augury of the
future should be required"
But it is evident from this that money
in New York City is growing uncom-
fortably tight and scarce, and the
Financier has to hear:en its clients and
readers by hopeful references TO foreign
balances and our unscld and future
chops. Yet. says the Financier. speak
ing of commercial D1per:
"The supply seems to be increasing.
but tho ABSORPTION is equal to all new
offerings. Rates are from Az to Az per
cent. for best endorsed bills, sixty to
ninety days, and from Az to and up
to per cent. for double names to six
months, according to grade"
Abiding to the recent Treasury issue
of slo.oOO.oOo gold certificates. the
Financier says:
"The resumption of the issue of gold
certificates does not Of itself add one
dollar to the circulating medium of the
coUnsr.-. n fact which Il cOnSiderab Bile
portion OF the American press finds it
difficult to understand. The gold ccrti-
iicate has been a9tly termed ware
house receipt for specie. That is eX-
actly what ii is, and While it increases
the huiGity OF the currency. IL cannot
of necessity add to the volume of it,.
for the simple reason tina; behind each
dollar as represented in the certificate,
there is II dOllsr in gold withdrawn
from active circulation. The only
effect which the REISSUE of this form
of money can have is to relieve the eX-
:sting demand for = larger percentage
Of small notes in circulation. 1t will
also increase the facilities Of transfer
cnce OF money from one section Of the
country To the other n matter which
i this time and in view of the prevail
irG conditions. is of considerable i'm
portance to commerce in general"
The Vlrginlan-Pnot some time age
called attention to the fact that this
gold certificate issue added nothing 10
our money or currency, and as the
smallest OF the denominations is 500. II
cannot be any great relief to The people
or current business that need small
notes.
The Flnancler confesses or claim;
that banks, rs n rule. attended to their
own business. and with success, until
1895. whom they identified themselves
with the Republican party and the
money monopoly. or trust; but the fact
| is tina. he banks We're active In pro-
curing silver decentralization in 1873, as
they had previously fastened ten per
cent. Federal tex on the issues of all
state Banks. Nor have they since re-
tired from politics. which is regarded
Is permanent part of their bust
ness Says the Fmanclcr:
"rnll 1896 The banks had rcfraincd
from participating in elective contests,
but that year witnessed the spectacle
or strong and conservative institutions
arraNcu sc.idly against an assault on
the integrity OF the nations credit. and
espons!ng openly and unscltishly a
political platform that declared for GER
tain theories and facts which these in
| solutions held TO be for the benefit of
the country az II whole. and not for
their particular benefit alone"
That is part Of an editorial urging all
the New York banks to join the Flnan-
cier and the Anthracite Coal Trust
against the use of soft coal in and
about the city for any purpose. What
fall is this: from defending the in
tcgrity OF the nations credit" to help
Ing a city coal-deal. Fic Financicr.
your big talk cannot conceal the small
motive any more than the selfish
yenality OF 1896 was covered by pre-
tended anxiety for the nation's credit
when the banks heartily joined in 49,.
in the dea! which sold the nation and
people 10 the financial ana commercial,
interests in 1873.
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