Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-09-06
THE ST. PAUL DAILY GLOBE SATURDAY MORNING SEPT 1879
MORE LIGHT.

MOhNlN0 -
MORE LIGHT.
IAsoseA Upon John shsrssas,s OossssecsSon
WSth the First National Bonk Of NesU
York-l Ayseertows Draft for Four
AtIsSoss Of DoIlars.
Washington Special to Cincinnati Enquirer.l
That the First National bank Of New
York il John shsrmsn's pet bank, was shown
BY his recent extension of time on check
drawn on tho bank for "a, 000, 900, by Acting
Secretary GilAllan, while Sherman was of
junketing and speech making recently. Mr..
Gil6llan, Who 10 business man, wanted
u, 600 900 for the use of the government,
and, very naturally, he drew check on the
bank that owed the government the most
money. II Sherman had not gone out Of
his way to grant the extension, the First No.
tional bank would have had to pay up
promptly, just as the other members Of the
syndicate did.
The reason assigned by Sherman for
granting this favor to his pct bank is that,
being the last to subscribe, that bank should
be the last to pay. As q matter of tact, all
the banks subscribed on the same day, with
in few hours of ono another. In other
words, Mr.. Sherman permits the First Ma
tionsl bank to profit three quarters of one
per cent. on $40,OOO.OO0 because it was
about three hours behind other banks in
subscribing to the loan. There is no reason
for his extending the time for the First Ma
tional bank to pay up that would not Justly
apply to other members of the syndicate;
and the opinion is freely expressed in Wall
street that the First National bank has been
made to share its profits with Mr.. Sherman's
friends. A big slice Of the profits went to
defray Republican expenses of the pending
canvass in Ohio. It is freely asserted that
member of the Ohio State Republican com
rnittee went to all the syndicate banks and
substantially demanded Q share of their
profits to help bolster up Hayes. At least
one-half of the banks, however, refused
to pay cent. One official applied to
said promptly: give got no interest in the
Ohio election. would just as soon see Ew-
ing elected as Foster. I don't care fip
about either one, and won't subscribe
cent
There is much dissatisfaction among Ne
tional bank officers and other holders Of call
bonds ct 6herman's preference of the First
National bank as purchaser of four per
cent. bonds. After his circular, prom ising
an opportunity to holders of ter. forties to
exchange them advsntageously for four par
cents, his sudden dicker with the syndicate
and his preference of the First National
bank to the detriment of more than 1000
other banks is considered as influenced by
motives somewhat peculiar. An officer Of
one of our banks said this evening:
SHERMAN gave all of US cause for COM
plant when he gave an extra commission to
banks that made speculative subscriptions.
That was poor encouragement to banks
that were ac'ing prudently. When the
First National bank wanted to realize
on these bonds, they got the price down to a
one-half per cent. premium, with five eighths
per cent. of earned interest. Since they got
the extension from Sherman they put the
bonds up to three-quarters aud seven eighths
per cent, showing the value to them of being
relieved from the payment of their debt to
the government. Instead of permitting the
First National bank to play fast and loose
with the government, Sherman ought to have
kept faith with the other banks, and allowed
them to come in and get some of the four
per cents. There would have been no need
of granting an extension to any bank; and
when the government wanted its money it
would have gotit. As for Mr.. Gilfllan, he
would not take any part in Sherman's scheme
to favor the First National bank. guess he
would rather be kicked out of there than
not. BE is not afraid of Sherman, and
evidently did not understand Sherman's plan
to favor the First National bank, or he
would not have drawn that $4,OoOOOO
check. -.
"There is no doubt that if Sherman had
not stepped in the First National bank
would have been in a tight place. They
would have been obliged to offer their bonds,
and must have broken down the market.
This would have been disastrous. One Pc
culiar feature of it is that if the First Nation
al bank had come to grief by its speculation
in 4 per cents its depositors would have lost
everything, because the government is q pre-.
erred creditor. That sort of gambl ing in
banking should be prohibited by law. Il is
singular that the government, having charge
of our national banks, should permit such
enormous operations IS by small banks
like the First National bank, knowing
that if the speculation failed the
result would be so disastrous. Sherman has
been SO partial to the First National bank
in the matter, that it is common talk in the
street. The attempt to make capital for the
Ohio campaign fund out of the Syndicate
banks is also we'll known. Mr.. Sherman's
explanation of his reason for giving an ex-
tension to the First National bank will not
bear investigation by those who have
watched the course of events. He has, ct
least, narrated the facts in such a way as to
deceive the publio.' E
Have you any positive reason to know
that politics have been brought to bear in
the placing of this four per cent. loan by
Secretary Sherman?''
"Only this: just before the an
nounoement was made that an ex-
tension of time had been granted
by Secretary Sherman to subscribing banks
to the four per cent. loan member of the
Ohio Republican State central committee
called ON me, in connection with my bank,
for subscription to the Foster campaign
fund in Ohio. I asked Why he came to me.
He said that Secretary Sherman had directed
him to call on General Hillhouse, and that
he would give him q list Of banks to call on
him the list of those banks which subscribed
to the four per cent. loan, suggesting at the
same time that out Of their profits they could
certainly afford to contribute
sa Was he successful in soliciting contribu-
tions2'
''The story is told. You may draw your
own inference"
KATE AND ROSCOE.
Mr. Spra0Me Repeats the Statement that
He Used No TjoIence To,sards Hts WIFE
--Prospects Of a Dtvorce--Sessator Conk-
lingo Part IN tho Affair.
s A Times ST eoisl from Narraganset Pier
Gays: Regarding his wife's departure, Mr..
Sprague is credited with saying: Mrs.
Sprague certainly did not come or go in
consequence Of any threat or act Of violence
on my part. When she went to Providence,
early in August, she went without clothing
for the little girls. I thought of it but