Year: 1878




In considering the action looking to reslmp-
ton taken by the New York banks last Tues
day, and ratified by the Boston banks yester-
day, the connection of the Treasury with the
New YORK clearing house association should not
be confused with what the banks intend to do
The only points in the plan adopted by the
banks with which the Treasury Is at all con-
nected, and which it is bound by are the fol-
lowing


PROPOSITIONS SENT FROM THE TREASURY
ana referred to the clearing house association
Tor their consideration, and adopted by them:
F1rst-Hereafter drafts drawn upon any bank
represented in the clearinghouse association
In the city OF New York, received by the assist
such bank at the clearing house for payment
Second-Hereafter drafts drawn on the assist
ant treasurer at New York may be adjusted by
him at the clearing house, and the balance due
1rom the tn1ted States may be paid at his Office
In United States notes or clearinghouse certif-
icateS.


Third-After the 1st of January next nav
ment OF checks presented to the assistant treas
uer by any bank connected with the clearing
house may be made by him in United States
notes. On the acceptance of these propositions
by resolution of the association entered on its
records, or in any other form that will convey
its sanction. l am authorized to conform to
them SO, SO soon as the necessary details can be
The Treasury is not at all connected with the
principal point In the plan adopted, that which
refers to


THE SILVER DOLLAR.


The banks have decided to receive on and after
January 1st next the remOnetized dollar only as
special l, ,depost. just as they would receive sill
yer or gold plate for safe-keeping. They expect
tnat their action will be endorsed by similar in
St1tut10nS throughout the country and drive
the silver dollar out of circulation. This de-
monetlzation by banks of legal tender OF the
tnlted states finds no favor with the Treasury
department The banks pursue this plan be-
cause they hold that the standard dollar will
drop to its bullion value, because the silver bin
provides that not less than two million OF them
shall be coined monthly. Silver dollars viii be-
come so plentiful, they hold.that they VIII with
Gl the Dill TelnonetHing them. They have
been premature, at least, in taking tie
whole matter into their own hands
for any action the President, the Secretary of
the Treasury or Congress may take Before
taking the matter into their own hands, and
SAYING mat a legal-tender Shall not be legal
tender, because ii might, if the amount OF silver
coined each month"; is not limited, in time become
only CT value as so much bullion, they should
nave considered that steps may be taken by the
government to avoid such an evil They take
no consideration whatever of the probability
that the Secretary OF the Treasury and the
PRESIDENT may recommend to Congress that the
coinage OF the silver dollar be limited to an
extent which would leave no danger of its
depreclating, or that its weight be increased SO
lhat us bullion value will be a dollar instead of
as now, only about So cents. 1t is not SllpDOsing
an mprObability that with a clear exposition of
the danger OF the new dollar as at present
coined. will be laid before 1t that Congress will
take action to obviate the danger of its virtual
demonetization by the necessary legislation.
Whlle there is no doubt that there is a back
WaIdneSS throughout the whole country in
taking silver, and that the bill remonetizIng it,
has not In its workings been complete success,
SUN IL Will be Of material aid in RESUMPTION.
And the banks in deciding to be oblivious OF sill
yer on and after the day fixed for resllnption.
though using ii in the meanwhile to pay Gus
toms duties, not only put themselves at War
WIN me silver element OF the country, but in
conflict with the Treasury department..