People's Pilot, Volume 5, Number 23, Rensselaer, Jasper County, 5 December 1895 — OPINIONS OF NEW YORK BANKERS. [ARTICLE]

OPINIONS OF NEW YORK BANKERS.

The following expressions were had last week and clearly point to a united assault upon the greenback. The few remaining ones must go. A. B. Hepburn, president of the Third national bank and former comptroller of the currency, bad this to say: “I think that congress should also take up the retirement of the greenbacks and make some provision for dropping them from the circulation.”

W. Watts Sherman, president of the Bank of Commerce, in which J. Pierpont Morgan has large interests, had this to say: “I think that the present silver circulation is a greater menace to the credit of the country than the legal tender notes. We should retire silver dollars rather than greenbacks. Three hun- ( dred and forty-six millions of latter would not cut any figure in the financial world, even in the eyes of Europe, were it not for the silver in circulation, which threatens to land us on a silver basis every time there is an apprehension of a panic. It is the silver dollar and not the greenback that should be taken out of our circulation at once, Secretary Carlisle to the contrary notwithstanding.” Dumont Clark, president of the American Exchange national bank and a lifelong democrat, said: “I think that the first thing congress ought to do is to take some steps looking to the retirement of the greenbacks. I am not apprehensive in the least about gold shipments abroad. And I should not be surprised if some of the' banks were increasing their stock of gold in view of another issue of bonds.

“Congress ought to allow national banks to issue circulation up to par, instead of only to 90 per cent. Then they should make some provisions for the gradual retirement of the greenbacks, mouth by mouth, if you please. The greenbacks are bound to give us trouble, and something has got to be done soon. “Financial legislation is far more important than tariff-tin-kering. Indeed, nothing should be attempted just now toward readjusting the present tariff laws. The most imperative thing is to get our currency system on a sound basis.” George G. Williams, president of the Chemical national bank and also a democrat, said: “I think that congress ought to issue a lowrate interest gold bond and then begin the retirement of the legal tenders. This is the first thing that should come before them for consideration. These bonds could be made the basis of security for national bank notes, which latter would serve as a substitute for the legal tenders. There ought to be no opposition toil. “I think congress had better let the tariff alone for awhile and put a duty on beer. I know of a company manufacturing this article which clears over $l- - a year on its products. Why should not they help the government a little? They could charge it back on their customers, and these would not mind it in the least.” President Van Orden of the National Bank of Commerce, a republican, said: “I think that congress should take some action looking to the retirement of the treasury notes and possibly the greenbacks. The fact is the government ought to go out of the banking business entirely. I think that a large part of the trouble we have to contend with in the financial world is due to the shipment of gold caused by uneasiness abroad as to our financial policy. If foreigners were satisfied that we were going to continue on a gold basis and the banking of the country would be left to the bankers they would be willing to leave their money here and invest in our securities. “Relative to tariff legislation it would be nothing short of a calamity for congress to interfere with the present laws in any way. Ido not mean to say by this that they could not be improved, but what this country needs is rest from legislation and certainty as to conditions.” John T. Garland, vice-presi-

dent of the First national bank, a republican, said: “The retirement of the greenbacks, if attempted, would all end in talk. The whole session would be consumed and nothing done. No, I don’t think it would be wise to take up this question until after the matter of sufficient revenue for the government had been attended to.”

Henry Clews, the well known Wall street banker, thinks the first question for congress to pass upon is as to increasing the government’s income so that it may be in excess of the disbursements. The next matter to be considered is the betterment of the currency, that the distrust which prevails, especially in foreign countries, in reference thereto may be removed. “This all centers on the ability of the government to keep up ithe gold reserve against its demand promises to pay,” continued Mr. Clews. “A wise provision would be, it seems to me, to pass an act without delay making it imperative for the customs to be paid aj, least half in gold coin and thereby give the government a gold income which does not now exist. It may be said in reference to this that it would be making an invidious distinction in the legaltender money of the country. Well, isn’t it equally an invidious distinction against this money for the importers, who pay for their importations exclusively in gold coin or its equivalent? If they pay for these goods in full in gold, it is equally reasonable to exact from these same parties a payment of at least 50 per cent in the same money for duties before they can get possession of their goods for distribution among the American people. The effect upon the importers, at the worst, can only be to lessen their profits to the extent of a small percentage. The point I want to make is this, that the invidious distinction against the money of this country at the present time is made by the importers, as it is almost entirely on their account that Sherman notes, greenback notes, are presented at the treasury from time to time and gold demanded therefor, and the treasury by that means drained. It is for this reason that the government is put in the imperiative position to have a gold revenue from some source or other. “After this has been provided for by Congress, then I advocate a bill being passed as speedily as possible to take up, through an issue of 2i or 3 per cent bonds, the entire issue of Sherman notes and the amendment of the national bank act to provide for these bonds being accepted at their par value by thecomtroller of the currency against the issue of bank notes to take the place of the Sherman notes taken in and canceled. The act should provide also for the government to put in subsidiary coinage all the bar silver held against the Sherman notes. This bar silver will all naturally belong to the government without any pledges connected therewith after the Sherman notes have been taken up and canceled. The country will be able to absorb this amount of silver in subsidiary coinage from time to time with in the next ten years at least. If congress will do what I have suggested it is all that will be necessary at this session on the financial question.” A number of other financiers only emphasized the substance of what is stated in the aboye in interviews.