New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-10
MAY BE A DANGER TO SOUND MONEY
TILE ACTION OF TIL; BANKS ILL-ADvIsED.
THE ACTION OF THE

THE ACTION OF bh.>no 'hH
To the Editor Of The Tribune
Sir: Regarding the new rules OF the Cieal,hs
House as affecting country business we think that
there Is much to say for and against the action OF
the combined New-York banks. with the weight Oh
argument vastly against the innovation
There are three prominent features that occur 10
us The relation Of merchants, country banks et a.
with the New-York banks. that OF Ne" ~,
banks each with the other; and. by no means .he
least mportant the effect on popular sentiment
The merchant or country banker who keeps an
account with New-York bank. both for the oa"A
ing facilities offered and for an investmeh'T'
ceive interest daily balance-shouio no' ~
plain n he is required TO pay for ouroensohe
lections; but the conscientious depositor VINO 1''
an account for the legitimate purposes vi oo'
nerc,al banking and who endeavors TO MAINTAIN
an average balance that will insure the depos"o,S
a return for the expense Of collections anu III.
care OF current business with fair ma'en VI
profit certainly has greynnce tbs very business
that he becomes the customer or oaIlh ~ 100,
Effected depositor OF the sa', sare rate as the
Understanding customer and as the pntsia hal
ance with his bank possible. and who pT d,s
himself not having his money Lyme t,o ru' Se
Certainly there should be some nissses
Commercial banks should confne their business me
to legitimate banking hey 70
The seeking deposition should find his place
Esn lne SrTs "S man should be de-
MED the privilege OF keeping bank account unu
he Is willing 10 give value for benefits received
Would our New-York agents ma conectohs
burden IL these conditions could be brought aoouI
We think not. Is II not in their power 10 erect
the change? ~. ,i,,,,
II seems 10 us that some Just cause OF company
must ensue and some friction arise between ine
New-York banks whose policy is not TO pay III
ferest and those who do We understand thdt
hank that has not paid interest 10 depositor
cannot do so as an offset for collection cnerges
without violating the recently adopted rules where-
as neighboring institution with ooastlhe SIrcu-
lars Offering seductive interest rates. snameiessy
socits the business Of depositors. not only OF com
petitive New-York banks but with the seeming ne-
sire 10 possess the whole earth goes foraslhg
for clients in the country districts.
When the public is appealed to next year by me
leaders Of the cause OF Bryan and free SILVER VIII
not the exchange charge required by the New ork
the little check that perchance comes under lts
new ruling and which II has received FOR It's laDor
be a cinching argument TO the sophistries OF the
ward orator? a., ...x,o,
We have heard intelligent men voice the opinion
that this collection fee charged by the New ork
hanks s simply a scheme TO increase already large
dividends and TO swell profits now enormous w III
not the unfettered and the prejudiced belleVe tha
the greed and avarice of the gold bug and
money shark have grown apace in the last J 1our
wears and will not the animus against WAL
Street" that has been stimulated and encouraged
bv sensational journals and stump orators De I'M
measurably increased? ~, H..
Truly we think the New-York Clearing House
Association is not helping the cause OF the Danks
and OF sound money. COZ MINI DAM
April s. 1892