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The President wrote and forwarded the following letter yesterday:
EXECUTIVE MANSION, WASHINGTON, D. C., September 28, 1873.
Messrs. H. B. Claflin and Charles L. Anthony:
GENTLEMEN: In response to the views you have communicated to me touching the present stringency in the money market of the country, and the necessary steps to restore confidence and legitimate trade and commerce, I have the honor to communicate the following:
The government is desirous of doing all in its power to relieve the present unsettled condition of business affairs, which is holding back the immense resources of the country now awaiting transportation to the seaboard and a market.
Confidence on the part of the people is the first thing needed to relieve this condition and to avert the threatened destruction of business, with its accompanying disasters to all classes of the people. To reestablish this feeling the government is willing to take all legal measures at its command; but it is evident that no government efforts will avail without the active cooperation of the banks and moneyed corporations of the country.
With the fourteen millions already paid out in the purchase of the government indebtedness and the withdrawal of their large deposits from the Treasury the banks are now strong enough to adopt a liberal policy on their part, and by a generous system of discounts to sustain the business interests of the country. Should such a course be pursued the forty-four millions of reserve will be considered as money in the Treasury to meet the demands of the public necessity as the circumstances of the country may require. Close attention will be given to the course pursued by those who have the means at their command of rendering all the aid necessary to restore trade to its proper channels and condition, with a view of strengthening the hands of those who carry out the measures above indicated. Orders have already been issued for the prepayment of the interest accruing in November.
U. S. GRANT.
The Condition of the Treasury.
The following was the financial exhibit of the Treasury department at the close of business on Saturday:—Currency, (less amount paid for bonds purchased in New York and not reported,) $14,751,988 53; special deposit of legal tenders for redemption of certificates of deposit, $11,330,000; coin, $84,026,280.15; including coin certificates, $34,225,300; outstanding legal tenders, $355,000,000. The above exhibits a decrease from Friday's statement in the special deposit of legal tenders for redemption of certificates of deposit of $2,395,000, which amount was drawn from the sub-treasury in New York by holders of these certificates. The above amount added to the $13,600,000 legal tenders paid out by the sub-treasurer in the purchase of bonds makes a total of $35,995,000 legal tenders put in circulation in New York during the past five or six days, which, if allowed to flow in proper channels, it is claimed, would have in a great measure relieved the present financial embarrassment.
ANTICIPATING THE INTEREST.
The Secretary of the Treasury will not for the present issue a programme for the sale of gold and the purchase of bonds. United States coupons maturing November 1 will be paid on and after to-day upon a rebate of interest at the rate of six per cent. per annum. The amount of interest thus anticipated is $14,000,000 in coin.
A NEW YORK VIEW OF THE MATTER.
A dispatch from New York says this action of the Secretary will bring $10,000,000 into the market; but as most of these bonds are held in Europe, the relief from them will not be felt for some time. The amount which will result from the payment of interest on registered bonds will be about $4,000,000. The registered bonds are nearly all held in this country.
Action of the Washington Bankers.
AN ASSOCIATION ORGANIZED.
At an adjourned meeting of the bank directors and bankers of the city of Washington, held yesterday at the National Metropolitan bank, the following resolutions were adopted, and the rules appended prescribed:
Resolved, That in view of the present uncalled for and unnecessary demands upon the banks and bankers of this District for currency for other than business purposes and for shipment to other cities, a very large amount having already been drawn, and in view of the fact that, without exception, all the large cities of the United States have adopted similar precautionary measures, the representatives of the banks and business men of the District of Columbia, having full confidence in the sound condition of their financial institutions, have united for individual support, and pledge themselves to the following line of policy, believing it to be for the best interest of the community and of the interest which they represent.
Resolved, That the banks and bankers of the District form themselves into an association, which shall elect a controlling committee of six, into whose hands any bank or bankers of the association shall have the right to deposit securities, (collateral,) the value whereof is to be affixed by said committee, as follows, viz.: Bonds at par; promissory notes at 50 per cent. of their value; other securities at a value to be determined by the committee; and against the said affixed value each bank or banker placing such collateral in the hands of said committee may issue certificates and certify checks which, upon being presented and stamped accepted by said committee, shall be received by all banks and bankers of the association for their full value in payment of all maturing notes or other claims.
Resolved, That this arrangement shall go into effect on the 29th of September, and continue until November 1, 1873.
REGULATIONS ADOPTED.
The controling committee have adopted the following rules and regulations for the associated banks of the city of Washington, D. C.:
The banks and bankers of the association may certify checks for their customers in lieu of paying currency for all deposits held by them to this date, but will open special accounts of currency, payable in currency. The certified checks will be received by the different banks and bankers of the association on deposit and in payment of notes due them.
Which certified checks shall be redeemed by the parties certifying in loan certificates issued by the controling committee upon deposits of collateral security, as agreed upon at their daily meetings.
Each bank will regulate its own exchanges with other cities.
The controling committee will meet at the office of the Safe Deposit company daily at one o'clock p. m. for settlement with banks of the association. The treasurer, William Stickney, will have custody of all securities deposited by the associated banks.
J. W. Thompson, for National Metropolitan Bank; J. C. McKelden, for Second National Bank; William Stickney, for National Savings Bank; L. J. Davis, for L. Johnson & Co.; Geo. W. Stickney, for Freedman's Savings Bank; Jno. Hitz, for German-American Savings Bank, Controling Committee.
HOW THIS ACTION IS RECEIVED TO-DAY.
The issuing of certified checks by the banks of the city, who formed a clearing house association yesterday, is generally received by those transacting business as a wise precautionary measure. Mr. Stickney was at his office during the day receiving collateral securities from the banks who have entered the association. There is a pretty lively demand for currency upon the banks and banking-houses outside of the association to-day, as the demand is necessarily concentrated upon them.
A Better Feeling in Washington To-Day.
A much better feeling prevails in Washington than on Saturday last, and the general opinion among bankers and business men is that the excitement is virtually over, and that in a few days business will be transacted as usual. The action of the "associated banks of the city of Washington," relative to the suspension of currency payments and the substitution of certified checks, has had no perceptible effect on the business of the banks. Several of the banks in
