Press enter after choosing selection

Resumption And The Banks

Resumption And The Banks image
Parent Issue
Public Domain
OCR Text

Tho conventiou of banks and bank ers, through tho prudenco of ita Execu tive Council, was wisely guided awa; frora proposing new plans for specie re sumptiou aud reoorded an unaniinou vote in favor of the stateineut that tha desirablo end ean be reached " by mean already provided for by law." Now w are uuwilling to look ut the resolution of these practicalbankers as mere platitudes, and therefore we assuine that thoy have a practical meaning. If the resolutiona mean anything, they meaa that tho banks reprosonted by the voto are willing to do something to forward tho rcsuraption of speoie payuients. We have already retnindod the nutional bankg of their powors with regard to circulating notes, and how those powers can be usod to forward resuinption, and we now take the liborty of pointing out anothor valuable aid which they can render. Tho national banks had on Saturday last $337,000,000 of United States bonds on doposit in Washington, as security for their circulating notes. If the banks will gradually replace tho whole of this deposit with bonds of the 1 per cent loan they will settle the question of resumption without any appeal to the public. Thoro can bo but few of the 4 por cent. bonds depoaited as security for circulation so far ; but if every bond sold in this country wero already so doposited there would be room for $70,000,000 more. The proportion of gold which tho Secretary of the Treasury could afford to hoard from this amouut of subscription, joined to the gold resources which he has already secured, would be more than suffioient tor tuo great purpose ot resuniption. ïhis is a mattor in which ovory national bank can act for itself. Those banks which inako themselves proruinont in talking about resumption are, it seoms to us, bound to take the practical step horo pointed out, and to urge the same action upon their correspondente. To doposit 4 per cont. bonds in place of the 4 1-2, 5 or 6 per cent bonds which they now have with the Treasurer of the LJnited States is tho most effective service which the national banks can ronder to the cause of national solvency, always excepting tho prime duty of )aying their own dubts according to ,he terms of them. It will be seen that no public proceedings or rosolutious are noedod for carrying out this very simple idea. All that is noeded is that each bank should dooide for itself that tho operation of juying 4 per cent bonds for deposit and ellmg out its bonds of earlior issues will bo profitable. The calculation of jrofit is to includo more than tho relaivo market price of bonds and tho relaitive return from tho money invested ; t includes the considoration of a direct addition to tho specie value of everyody's money, the currency of the wholo country. The scheme is so clear hat the banks cannot fail to see its efactivonoss if they will only address to hemsolves a portion of the persuasión which thoy recently addressod so use'ully to othor investors. We do not reara of any preconoerted action of a )auk convention in this matter, but wo ball certainly hope to seo somo ovience of individual sincerity at the ack of Thursday's " unanimous voto." No evidonco can be so good as that aown by replacing the bonds deposited n Washington with the 4 percent loan, nd wo ahall be very much surprised if ie syndioate which controls that loan lould put any obstados in tho way of lo


Old News
Michigan Argus