Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1879-09-12
SIMPLY INFAMOUS.
MIR, SHERMAN'S PET BANK.
Money Made Through His Favortism
Help from the Syndicate
for Foster.
New York Sun.

y check drawn on the bank for 81, 600.
oN 10y Acting Secretary Giltillan.
While Sherman was otl lunketiug and
Specch-maklng recently Mr. Ghlilhn.
who u y business man, wanted $1,000.
000 for .he use Ut the governments, and
very naturally Ne drew n check ON the
bank that owed the government the
most money, Ii sherman had not
gone out uf his way to grant the extern
sion, the FIRST National bank would
nave had IL pay up promptly, Just as
the other mCmhers at the syndicate
did, the reason assigned IVY sherman
for GrantinC this favor To has pet bank
Is that, hViug the last to subscribe, that
bank should he the last 10 pay. As Il
matter IT fact, All tho banks subscribed
IN the same day, within n few hours ut
Nug another. In other words. Mr.
sherman permits thc First National
bNuk IL profit three quarters OF per
cent, On 81 100000 because il was
about three hours behind other banks
IN subscribing to the loan. There is no
reason for hiS extending the time for
the First National bank to pay M that
would not Justly amply 10 other Nom.
herS OF the syndicate, and the opinion
is freely expressed III Wall street that
the FIRST National bank has been made
10 share Its profits with Mr., Shermau's
friends,
A big slice ct the profits went to de-
fray republican expenses Of the pending
canvass III Onio. Ii is well known that
he chairman of the Ohio state rnpuhli.
can committee went To all the syudi
cate banks and substantially demanded
! share ct their profits to help bolster
up Foster. \t least one ot the banks,
powever, refused 20 pay cent The
thcAl applied to said plnmply
I've gut no interest III the Ohio
election would Just M soon see
Ewing elected as Foster. | don't care
dg about either one, and won't sub
scribe Il cent
There is much dissatisfaction among
national bank officers and other holders
# calf bonds Mt Shermnus preference
IT the First National bank "a u pur
chaser oI 4 per cent. bonds. After his
1Wcnr promlsing mn opportunity to
holders ol l0.iN's to exchange them ad-
vanlngoously for per cents, his sud
lem decker With the syndicate, and his
preference Of the First National bank
is the detrimrnt " moro than two
thousand other banks, is considered Ms
influenced 10y motives peculiarly inter
tstlng to himself. An officer nj one o
anr banks said last night: sherman
gave I'LL Of us cause for complaint when
t.N
that made speculative subscriptions.
That was poor encouragement to
banks that were acting pruduntly
When the First National bank wanted a.
realize on these bonds, they got the price
down to J per cent, premium witt PEI
cent OF earned interest, Since they got
the extension from sherman, they pul
the bonds up 10 and / per cent. show,
ing the value Of them of being relieved
from the paymcnt OF their debt to the
government
"lnstoad Of permitting the First Ma.
tional bank IL play fast and loose with
the government, sherman ought t.
have kept faith with the other banks,
and allowed them 10 come IN and gol
some Of the per cents. There would
then have been no need of granting M
extension To any bank, and when the
government wanted its money il would
have got it. As for Mr.. Giliillan, he
would not take any part III Sherman's
scheme TO favor tho First National
bank. guess lac would rather be kick.
ell out Of there than not. He IL moi
afraid Of Sherman, and evidently did
not unGt rstand Shermans plan to IN
yor the First National bank or he would
not have drawn that $4,000 600 check
There IL no doubt il Sherman had moi
stepped IN the First National bunk
would have been in iight place. They
would have been obliged to offer their
bonds and must have broken down the
market This would have been dlsns.
trous. One peculiar feature Of II IL that
if the First National bank Ind come 10
grief by It's speculation IN !
per cents. its depositors would
have lost everything, because
the government Is II preferred
creditor That sort Of gambling in
banking should, think, be prohibited
by law. Il il singular that the govern.
ment, having charge over national
hunks, should permit such enormous
operations by small banks like the First
National bank in the matter that il il
common talk in the street. The at.
tempt 70 make capital for tho ONO
campaign fund out Of the syndicate
banks ii also well known. Mr.. Sher-
mans explanation Of his reasons for
giving extension to the First National
bank will not bear investigation by
those who have watched the course oi
events. lie has Al least narrated the
facts in such way as 10 deceive the
public"
"A connection between this iransac.
ton and another that was known 10 q
few persons only may possibly be
traced. The secret WAS tolerably well
kept, but it leaked ont To the extent
that several reputable iinanelers nj.
legged that day or two before John
sherman issued his order Of extension
the First National bank demanded
from several Of the largest stock.
dealing houses in the street call loans
aggrcgating upward Of 81 .00000O. The
stock market was at the time lluctuat.
ing more wildly than any time this year.
A majority of the stock houses called