The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1879-10-10

Washington dispatches report that
tho First National Bank of New York
is still S23,00O,000 behind in It's con.
tract with Secretary Sherman for four
per cent. bonds. The contract was
that these bonds should be paid for by
the first Of July. Fifty days have
elapsed since the time set for payment,
and yet less than one.half the money
has been paid.
Had IL been private individual or "a
business firm that was thus in default
to the government, he or they would
long before this have been pushed TO
the wall and forced into liquidation or
bankruptcy. Being national bank,
the Secretary of the Treasury steps in
and grants il an extension. AT the
same time he allows them to draw the
interest on tho bonds they have not yet
paid for.
He told tho Cincinnati merchants
that he didn't press this pet bank Of his
because, If he had done so it would
have caused a stringeney in tho money
market and perhaps a crisis. II the
Secretary of the Treasury authorized 10
tnterpose in the collection of debts in
order TO prevent stringency in the
money market by the same rule he
would have the power to empty the
treasury Of tho United States, to break
u corner in wheat, or to assist gamblers
in Harlem or Western Union TO cover
their margins. Ii the government
treasury is 70 DO used to protect Wall
street, il is time the people here in the
west, who produce the wealth Of the
country, knew Of It.
Dir. Sherman told tbe people oi
Maine when he went down there 10 de.
fend his policy that the funding opera
tions Of the government were closed.
At that very timo he knew that more
than $40,0Oo,000 Of four per cent.
bends bad not been paid for, and bis
funding operations could not be closed
until this was done. He miss.ated the
facts for political effect.
Four per cent. bonds are selling IN
this market 1t l03 fat that is, with
the Irr cent. quarterly interest nearly
due on them. After tho first Of octo
ber they will drop % lOl, AMI this viii
barely laty the contract price he made
with the syndicate. which Is y0t 70 bs
fulfilled. II the First National Bank
of New York still remains ia default
after dra~ing their ak months interest
for bonds they never paid for, be- maj
have 70 throw them on the market Anc
sneef = discount This would brins
absut the very crisis that Dir. Sherman
told the Cincinnati merchants he wa
so anxious 70 avert.
OF course Il will be q part OF hi
scheme 70 put OF that crisis until aftei
the Ohio election. A panic would b,
disastrous TO his ambitions. But still
il It came after the election he woulC
be none the less responsible.
The country has had magnificent
crops this year, and Mr.. sherman viii
claim that the Republican party, no
Providence, gave them. There Is u,
appearance Of n revival Of tradu, nns
this he viii also claim for his party
But the thing be has most to fear is
let-down in Wall Atreet-Wall street
the only place in all the country he hai
been 1t the greatest pains 70 strengthen
and support.
The treasury Of the United State
should not be permitted to be used il
stock jobbing operations for the protec
ton Of enc class Of people and 70 th,
detriment OF another. If the Secre
taIy Of the Treasury has, as he says
sold those bonds TO his favorite bank
il should DO required TO pay over tn
msney. II not, they should be sol
without delay. as tho claim that b
makes Of the funding operations bein
closed should be abandoned.
At all evonts, let US have an end pu
70 this thimble-rigging game in dealin
with tho finances Of the country.
1