American citizen. [volume] (Canton, Miss.) 1864-1890, 1879-09-27
Some Mistakes Of Sherman.

The facts that have been brought to
light in regard to Secretary Sherman's
fayoritism to one of the New York
banks cannot be denied or explained
away. They are damaging alike to him
and his party.
The First National Bank of New
York, with capital of only $500, 900,
subscribed for S37, 900, 600 in four-per-
cent. bonds, expecting to be able to
work them off at profit. These bonds
were to be delivered the first of July,
at which time the money for them was
to be paid. The first of July came and
the money was not paid for them. The
first of August also came and over $780,
100000 was still unpaid of the sum due.
After this time it became known that
Secretary Sherman had extended the
time for payment until the first of Oc-
tober.
1t further transpires that Mr.. Gil
fillan, the Treasurer of the United
States, at one time drew on the First
National Bank of New York for S4,-
000, 200, ON account of this money
due the Government, and the Secretary
of the Treasury interposed and had
payment of it, or its presentation for
payment rather, stopped, before it had
passed through the Clearing house.
In the first place he favored this
bank by extending the time of pay
ment, and next he protected it when
the presentation of draft due the
Government would have seriously en-
barrassed it.
But this is not all. This first Ma
tional Bank of New York has been
specially favored at other times. 1t is
Gil hn
made known that an average deposit
of $40, 100000 belonging to the Gov
eminent had been allowed to lay in
the vaults of this bank for months
without interest. In Wall street,
where interest is counted by the day
and often by the hour on large sums,
the magnitude of such favoritism is APP
parent.
When John Sherman went up into
Maine, few weeks ago, to preach the
doctrines of resumption he proclaimed
that the funding operations were
closed; that the bonded bebt of the
Government had been refunded at a
low rate of interest, and everything
was cleared up. When he was here in
Cincinnati last week he was compelled
to admit that the funding operations
were not closed, because he had not
pushed the New York banks for the
money in payment for the four-per-
cent. bonds.
He didn't tell the business men on
'Change here that he had allowed that
New York bank to cut off the coupons
and draw the interest on those bonds
for which it had not yet paid. But
such was the fact. Is this what would
be called fair business principles be-
tween men doing business on an equali-
ty? Is it customary for debtor to pay
interest on money before he receives
itP Would Mr.. Sherman do such a
thing, he himself being the borrower?
For, after all, these financial transac-
lions between the Government and the
banks should be measured by the same
rules as though they were the transac-
lions of private individuals. If man
OF a bank loans money to the Govern
ment, it should be under the same re-
strictions as though it were to another
man. An officer should show no favors
because he represents the Government,
nor should he ask any. Let it be bust
ness and that alone.
Last of all, the fullest publicity should
be given to all transactions between
the Government and its financial agents.
The enforcing of such an order of
secrecy as Mr.. Sherman promulgated
yesterday will only add to his embar-
rassments. The press of the country
will not be kept in ignorance of the
doings of the Treasury thereby, but
there will always be suspicion that
something is being kept back. There
is no crisis impending to require the
suppression of the facts as they occur.
Mr.. Sherman had far better take the
people of the country into his conf
dence if he wants to enjoy theirs
Cincinnati Enquirer.