The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-18
GoVERNMENr BANK NEEDED.


held by people who have run In debt to pay for
them makes tho stock market very sensitive TO
the contraction and expansion Of bank loans Con.
sequontly, tho selling movement and tho fall in |
prices which began week before last, at the nrst
symptoms Of approaching curtailment Of &C |
commodAtions TO borrowers, became still more
pronounced, early last week, the curtailment
proceeded II was followed by a brief favorable
reaction, however upon the announcement that
the Secretary OF the Treasury would begin to-day
to anticipate the payment Of the interest on the
public debt amounting TO S5. 600 Co., duo Oc-
tober /; though the smallness Of this disburso-
ment, compared with the shrinkage in bank re-
serves and tho certainty that most Of the money
.!:n oct find Its way TO the banks for weeks 10
come, prove that tho relief expected from II was
more imaginary than real Tho slight effect on
the market produced by the death Of Mr. Come
Illus Vanderbilt compared with that which followed
the death Of Mr.. Roswell p Flower. also demon
strates the power which the imagination exer-
cises over tho minds OF operators, and tho un-
substantially Of tho reasons which govern their
action. Why Mr.. Flowers death should have
produced a panic among tho holders OF the stocks
he was supposed to own largely, while Mr. Van
berblt's passed unnoticed. is explainable only
upon the theory that the sellers at the time Mr..
Flower died. acted upon the groundless assump-
ton, that his holdings would at once be pressed for
sale. while no such fear was entertained with
regard TO Mr.. Vanderbilt's Now Brooklyn
Rapid Transit and Metropolitan Street r all
way selling for one-third less than they
did a few months ago, entirely because the holders
Of them have changed their views Of their future,
ST. Paul, too has had a fall of seven points upon
nothing but disappointment at its not paying
the ono point extra dividend which was expected.
II is fortunate for the holders Of stocks who
owe money upon them that the present Secre-
II . ia tnta ali ruho
sympathizos with them, and is both aware Of
their danger and willing to do all in his power
to avert H. II he were merely indifferent to their
distress and did more than let things take
their natural course, they would lose considerably.
II he were an ignorant blunderer, he might, from
sheer stupidity, create panic Secretary Foster,
by announcing his purpose TO suspend gold pay
ments as soon as the gold reserve In the Treasury
fell below 500 600 600, did in 1893; again, ho
might be dishonest and create o panic purposely,
after first selling stocks ahead, by calling on the
national banks for payment in lawful money Of
a considerable portion OF the $50. 600, 900 Of tho
Government deposits held by them. That the
market has escaped those perils ia duo to accident
alone and not TO any inherent virtue Of our
Government financial system.
1t would be ludicrous, were 1t not at the same
time humlatng, to observe how the banking
talent Of the country, assembled at Cleveland
week before last completely overlooked the dan
gerous discretion now vested by law In the Sec
rotary OF the Treasury TO concentrate its atten-
ton upon the possible and remote contingency
that a successor 70 him might at some future
time use silver dollars in payment Of the obli-
cations Of the Government Tho dollars are now
as good as gold and will continue 70 DO 80 until
an act ia n.ssed Increasing their volume indea.
r,.l,, ~, th.;, fr.. and unlimited conaqa a. tba
,.tio ~ IA Ia The Congress which would
n,ss such AN act and IN. President who would
sign t. could. together, repeal any act intended
40 dsfe.t the use If the existing dollar so that
no,hing sGactusl can bo dono Ia prevent tho an
prehended mischief except TO prevent the election
~ .uob =. Cono,..a and such a President
Nothing on tho other hand can. under pros
an. conditions ,.st,.ir a Sscretsrv ~ The 'rreas
urv vb.tb,r h. h, A s,,verite n, an antis;lyerite
g.. hr,n,;,a ,,non ,h. .orrtrv f.r e,a.t.r
calamity than the MARI Offering of silver dollars
10 III. o,.dit,,s NJ IN, nation II nnv meosure
~ er,rcoI r.forr deae,ves tho advocacy NJ
h,nk.ra Il Ia not ono merely reaftirmin9 the ex-
istine Iaw st.hlishinp IN, pold atandard hut ono
,.Lins t,om . nol,t,caI ofsoer tho control Of tho
national funds and v,stine IL in a financial in
stitution INDEPENDENT of politics. with sufi-
liant ..n;t.l and dnected NV men of sufficient
,,toort, and .b;I;ty an 10 ake Il command thu
MISUNDERSTANDING conedenoe If the community
Such an institution Great Britain has had
tor too centuries France for one Germany for
mora than one Austria for about the same period
puss;. for torty yeons and the other nations
~ Euron. Tor ya,iou. lenptbs of time not less
In ,nv Gao. than tbi,tv vear. To these insti-
$50" - oor,r,Ittod th. r.c,int custody and dis
h,,.an,an, ~ ~. - otion.I r.v.nues and from them
q, h--aroa hor n.coss.ry tho n,one1 which
d, ,s,no.,i,,, ,oo,,,,nd tor Cover,p,ent nurnos..
g.. - thon, .s tor inetsrce the RAM, NJ Enr.
,anJ Nv 49, .nru.I Cur, tor tbeir nriv Nspes.
ntho,s ~. the R,nl ~ France the Rank ~
,ns,s;. um,o,rr ond III. ponl ~ Ce,m,pv
- ;th a.. co-.rrn,ert their nroeta Viii.
than.nI, ~ pnss. ia owned entirely nv the Gov.
.rnmsrt and ia conducted for its sole benefit
49,. o-,os;,;a,, - 81. .mn,o ~ N. nation.
,Eu-n,o ~ Trni,ad St.,.s for naar,v Wv ve,ra
,hsI Co1,ornnan, 6n,ncisl sys,er, ,,h.,ehy
49, I'll. ,,o,o,-s ,rst.od ~ h.inr donosted IN
.h.pI, ,,bor. tbey would he av.il,b,. for the us,
=, .a..aor. nv. ,ocLs al I'm in the Governm.nt.
,,,,. 80, ,rhon.. IT, oor h. dr.,n ~,