The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1879-09-20
SHERMAN'S PET BANK.
And the Peculiar Financial Operations in
Connection Therewith
New York Cor. Cincinnati EnquirerI

York is John Sherman's pet bank, wa
shown by his recent extension of tim,
on a check drawn on the bank for 81,
100000 by Acting Secretary Gilfllan
while Sherman was off junketing and
speech-making recently. Mr.. Gilfllan
who is business man, wanted $4,000,
600 for the use of the Government, and
very naturally, he drew check on the
bank that owed tho Government the
most money. If Sherman had not gone
out of his way to grant the extension
the First National 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 pet bank is
that, being the last to subscribe, that
bank should be the last to pay. AS a
matter of fact, all the banks subscribed
on the same day, within a few hours of
one another. In other words, Mr.. Sher-
man permits the First National Bank to
profit three-quarters of one per cent. on
$i0,000,000 because it was about three
hours behind other banks in subscrib-
ing to the loan. There is no reason forhis
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. 1t is freely asserted
that n member of the Ohio State Re-
publican Committee went to all the
Syndicate banks and substantially de-
manded a share of their profits to help
bolster up Hayes. At least one-half Of
the banks, however, refused to pay a
cent. The officials applied to said
promptly: GIVE got no interest in the
Ohio election. l would just as soon
see Ewing elected as Foster. I don't
care fig about either one, and won't
subscribe cent"
There is much dissatisfaction among
national-bank officers and other holders
of call bonds at Sherman's preference
of the First National Bank us pur-
chaser of 4-per-cent. bonds. After his
circular promising an opportunity to
holders of 10-40s to exchange them adj
vantageously for per cents, his sud
den 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
complaint when he gave an extra COM
mission to banks that made speculative
subscriptions. That was poor encour-
agement to banks that were acting
prudently. When the First National
Bank wanted to realize on these bonds,
they got the price down to per cent.
premium, with per cent of earned in
terest. Since they got the extension
from Sherman they put the bonds up
to and per cent, showing the value
to them of being relieved from the pay
ment 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 al
lowed them to come in and get some of
the per cents There would then
have been no need of granting an extern
sion to any bank; and when the Gov
eminent wanted its money it would
have got it. As for Mr.. Gilfillan, he
would not take any part in Sherman's
scheme to favor the First National
Bank. l guess he would rather be
kicked out of there than not. He 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 100000
check.
"There is no doubt that if Sherman
had not stepped in the First National
Bank would have been in tight place.
They would have been obliged to offer
their bonds, and must have broken down
the market. This would have been dis
astrous. One peculiar feature of it is
that if the First National Bank had
come to grief by it's speculation in
per cents. it's depositors would have lost
everything, because the Government is
a preferred creditor. That sort Of
gambling in banking should be prohib-
tied by law. 1t is singular that the
Government, having charge of our
national banks, should permit such
enormous operations 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
well known. Mr.. Sherman's explana-
ton of his reason for giving an extern
sion to the First National Bank will
not bear investigation by those who
have watched the course of events.
He has, at least, narrated the facts in
such way as to deceive the public"
"Have you any positive reason to
know that politics have been brought
to bear in the placing of this 4-per-cent.
loan by Secretary Sherman"
"Only this: just before the announce
ment was made that an extension of
time had been granted by Secretary
Sherman to subscribing banks to the
4-per-cent. loan, member of the Ohio
Republican State Central Committee
called on me, in connection with my
bank, for a 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
Gen. Hillhouse, and that he would give