Year: 1878

The proposed bank policy in aid of re-
sumption, Of which the HERALD gave the
particulars yesterday morning, was for


mally considered and unanimously adopted
yesterday by the banks which form the New
York Clearing House. This means that it


will be the policy Of all the banks in the


country, because there is no bank outside
of New York which has not such relations
to the New York banks as to have it's action


in such . matter as this determined by
their united policy. The statement which
the banks make to the public concerning
theft conclusions and policy is printed in
full elsewhere ; the six points of the policy
they have determined on are of such i'm
portance that we print them here in their
official form. They are Of interest to every
merchant and manufacturer, to every bank
depositor in the country:-


After the lst Of january. 1879. the banks Of New
York city will


!. Decline receiving gold coins as special de-
posits but accept and treat them only as 'lawf,ll
money"


.. Abolish special exchanges of gold checks at the


s. Pay and receive balances between banks at Clear
ing House either in gold currency.


4. Receive silver dollars upon deposit only under
special contract TO withdraw the same in kind


S. Prohibit payments Of balances at Clearing House
in silver certificates or in silver dollars. excepting
subsidiary coin in small sums--say under $40.


6. Discontinue gold special accounts by notice to
dealers on the 1st OF January next to terminate them


We believe we do not exagserate the i'm
portance of this programme when we repeat
what we said of it yesterday, that it will
mark one Of the most momentous events in
the history of the United States. BY adopt
ing it the banks of New York have shown
themselves capable of meeting and fulfill
ing their duty to the country in helping to
re-establish stable currency for the land.
What they have thus agreed upon is en-
tirely sufficient, with what the Treasury can
and must do to accomplish the great end
in view without disturbance to tho mer-
camille or industrial interests of the nation.
We do not see how they could do more, nor
do we just now see how they could do less,
with security to their capital and their
deposits. We can imagine that some Of the
adherents of the silver policy may find
fault with the determination Of the banks
posits, but we remark that the banks cannot
be expected to deprcciate their own capital,
and ought not to be allowed to do 80, by
receiving and becoming possessors Of de-
preciated coins; and further, an act of Con-
gress authorizing the Treasury to redeem
silver coins in sums of fifty dollars, which
the friends of the silver dollar can easily
pass if they will, will remove all obj jections
to it on the part Of the banks, who will
then take it on deposit without difficulty.
4. OF the fifteen millions of silver dollars SO
far coined only about two millions remain
in circulation. This shows sufficiently
what the country thinks of these coins, and
warrants Secretary Sherman in keeping the
coinage at the minimum limit fixed by law.
The proposition that the Treasury shall
cease to reissue one and two dollar green
backs by way of forcing out silver seems 70
us not entirely expedient, though it may do
no harm. as a further test of the real demand
for or disgust against the silver dollar We
suspect that before the small bills are
nearly all withdrawn Mr.. Sherman will be
overwhelmed with complaints and protests
from all parts of the country.


1t is not necessary to discuss in any de-
tail what must be the policy of the Treasury
after the 1st Of January. We have repeat
edly pointed out thatthe banks must neces-
sarily seek to supply themselves with gold,
at least enough for current use. They have
now on hand twenty or thirty millions.
The remainder Of what they viii need in
all parts Of the country they will draw from
the hoard in the Teasury in exchange for
greenbacks. That is the object and main
use Of this hoard: and Mr.. Sherman, who
Of course sees this, will pay out his
gold with alacrity and with entire
confidence, because in the first place
the amount he will have on hand on the 1st
Of January will be sufficient for all i'm
mediate and ordinary demands Of tho
banks and the public because, further, as
he pays olt gold, his own obligations to re-
deem will continually decrease, and finally,
because he has behind him the Resumption
act, which permits and directs him to
demption Of the entire mass of legal tender
notes by the sale Of bonds, and allows him
to sell at his discretion for gold either four,
four and half or five per cent bonds to any
amount With the authority given him by
this law he can draw gold from Europe to
any extent he or the banks may need; for
under it his power is unlimited.


The country is warranted, therefore, in
resumption on the 1st Of jan
uary as fixed fact, and in believing,
further, that it will be accomplished with
out disturbance of industry or commerce.
Congress, when it meets next month, may,
if it will, facilitate the operation by some
amendments of the silver law. Fortunately
the events Of the last session showed that
in the present Congress the infationisis are