The sun., 1878-12-28
John sherman, Pet Bank.

The First National Bank Of this city has
long been pet Of the Treasury, and was
intimately associated with all the financial
operations of the Washington Ring when
Henry d. COOKE, Boss SHEPHERD and their
associates were absolute masters of the
District Of Columbia and cxtortcd nearly
fifty millions Of dollars from that small popu-
lation in little mora than three years. This
bank hada special advantage over all others
i'm dealing with the Ring. because the then
cashier and present President, GEORGE +.
BAKER was the son OF GEORGE l.. BAKER,
then Comptroller OF the District OF Columbia
under the rfgimc of Boss SHEPHERD. II was
very easy t. make large sums Of money
with this combination Of interests, and the
profits were enormous rs long a. the Dis
trict could be plundcred through the firm
uf Addition. Division Il Silence.
When JOIN THOMSON sold ont his large
family htcrcst in the First National and
gave up its Presidency to establish the
Chase National, IL was generally under
stood that the price paid for the stock was
$500 per share. The sale was made nom
inally to Mr. BAKER, but, according 10 re-
port at the time members Of the old firm Of
JAY COOKE n Go. were the real purchasers
under the rose, who, it would appear, II the
belief be well founded, notwithstanding
their failure and their inability to satisfy
clamorous creditors, were still rich enough
10 buy bank at double the par value Of
its stock. And herein lies the point OF the
present inquiry.
The former relations between JoHN SHER-
MAN and JAY CoORE's concern are well
known to the public. SHERMAN was Chair
man Of the Finance Committee in the SEN
ate, while COOKE was the agent Of the
Treasury for putting out the loans during
the war They had been intimate long be-
fore these financial operations grew into
such immense proportions. They under
stood each other perfectly and prohtably.
Between them. it may be said, the whole
legislation in regard to loans, notes, and
the like, covering a bulk Of more than three
thousand millions. was shaped and directed.
They had their own way throughout, and
with what effect Is now known and felt in
every household in the land.
resolution passed. the House Of Repre-
Eentatyes recently, calling upon the Treas
ury for a statement OF any balances ON loan
account in cover standing to the credit Of
the Treasurer of the United States in any
national banks on the lst day Of March,
1876, and Oh the first day Of each succeeding
month 10 and including the lst Of January,
1879. This resolution included the 1st Of
January next, with the expectation that the
answer would be made according to its
terms, viz. " at the earliest day practca-
ole after the close Of the coming Congress
Eional recess that is 10 say, after the 7th
Of January, 1879. join SHERMAN pretended
10 read the resolution differently from its
plain expression, in order 10 mislcad the
public, and answered: There were no
balances on loan account standing to the
credit Of the Treasurer OF the United States
In any national bank from March, 1876, to
January, 1878" After this Intentional quib-
bic he gives u statement Of the balances on
loan account in coin, standing 10 the credit
Of the Treasurer Of the United States. IN
national banks on the lst day Of February,
1878, and on the first of each succeeding
month to and including December l, 1873
being a month short Of the time specifically
named in the resolution. In this list the
First National Bank here figures as holding
two hundred and forty per cent. more than
all the other banks in the United States col
iectively, as will DC seen by this comparison