Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-08-23

SHERMAN'S CRIME.

The fact that the New York syndicate owes
the government balance of forty five mil
lions of dollars on the purchase money of
tho last installment of four per cent. bonds
subscribed for by that combination will
sartle the country. It will be remembered
that on the 31st of March last the syndicate
subscribed for the entire block of four per
cents remaining unsold, amounting to one
hundred and fifty millions of dollars. It
was presumed by people generally that the
bonds were paid for on the spot, either in
cash or in bonds bearing five or six per cent.
interest, at the current market rates. Such
does not appear to be the fact. Only a.
small sum was paid on account, Mr.. Sher-
man giving until the 21st of July to COM
plete the payment. That date arrived, and
neither cash nor bonds were Forthcoming.
MIR. Sherman was applied to, and very read.
lily extended the time to the LIST of October,
at which time he will be ready to extend it
still further.
The enormity of the otfense of which Mr..
John Sherman has been guilty is hardly ap-
parent at first sight. It should be remem-
bered that the law authorizing the issue of
these bonds provided that they should be
exchanged for previous issues bearing a
higher rate of interest or sold to bona fide
subscribers for cash. The credit system was
not thought of or expressed by those who
made the law, and if it had been supposed
that credit would be given, the law would
not have passed. MIR. Sherman, it seems,
not only transcribed the discretionary
power that is vested by implication in his
office, but deliberately violated the
letter and spirit of the law
that he might favor combination of capi-
talists to whom he seems to have been under
obligations, or with whom he is directly in
terested, and at the same time rob the treas
ury of over one million dollars of interest
and subjected the national banks that need
ed the bonds to great Inconvenience
and expense in the replacement of their
bonds on deposit for security of circulation.
The transaction amounts to crime of the
first magnitude. 1t is breach of q most
sacred trust. Sherman was bound by law to
issue the bonds only to bona fide subscribers
who had the bonds or the money with which
to pay for them. Instead of doing so, he
gave to a favored few the privilege of pur-
CHASING on nearly four months time. and
has subsequently extended the credit SEVENTY
days. Thus the syndicate has been enabled
to draw more than six months Interest
on the bonds they have not paid for, besides
extorting from purchasers national banks
and others-from two to three per cent. pre-
MUM. If the syndicate should utterly refuse
to pay the balance due, the government
would be absolutely without recourse for the
recovery of the money.
Tho conduct of Mr.. Sherman is without
excuse. 1t admits of no palliation, and de-
serves the severest censure. Not only that,
but it should subject him to impeachment
and immediate removal from Office, in addi-
ton to which term in the penitentiary for
the remainder of his natural life would not
be undeserved. In the TRANSACTIONS are i'm
plications of bribery and corruption which,
If the truth were known, we have no doubt,
would be fully sustained. Mr.. Sherman's
Partially for the syndicate, and the
numerous favors he has, from time to time.
extended to its members, have long been
the subject of invidious criticism. II ia
about time that the matter was fully ex-
planned, for man holding the position that
Sherman does should not rest under suspi-
cion of any character. This last transaction
has not only an ugly look, but is almost con-
clusively eliminating. Unless Mr.. Sherman
can give good reason for his proceedings,
he must be subject to the imputation of !
betrayal of public trust.