The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1879-09-09
Astounding Financial Facts for
The Ear0est Consideration OF
Honest People Of All POii.
I, tlCal Parties.

L ust NdttOudi Dauh vi I<tW L Orh ts
John Sherman's pet bsuk, was shown
by his recent extension OF time on a
check drawn on the bank for 81 4,000, 900,
by Acting Secretary Gilfllsn, while
Sherman was off junketiog and speech
Masking recently. Mr.. GilflIan, who is
a business man, wanted 100000 for
the use OF the Government, and, very
naturally. be drew check on the bank
that owed the Government the most
money II Sherman had not gone out
Of his way to grant the extension, the
First National Bank would have had to
pay up promptly, ju.t as the other MEM
bers 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
hank should he the las, to pay. As 8
matter Of fact, all the banks subscribed
on the same day, within few hours of
one another In other words, MIR. Sher-
man permits The First National Bank
to profit three-qaarters OF one per cent
on 0,000, 900 because it was about three
hours behind other banks in subscri-
hing to tile loan. There is no reason
for his extending the time for tie First
National Bank to pay up that would not
justly apply to other members or the
Syndicate; and the opinion is freely
expressed in Wall street that the First
National Bank has been maae TO share
its profits with Mr.. SSerman's friends.
n big slice of the profits ,oent to dsfrdy
Republican, expenses of the pending can
pass in Ohio. Uistreely asserted that a
member of the Ohio State Republican
Committee went to all the Syndicate
banks and substantially demanded a
share OF their profits to help bolster up
Hayes. At least one-haf OF the banks,
however, refused to pay cent. The
official applied to said promptly: "I've
got no interest in the Ohio election. l
would just as soon see Ewing elected as
Foster. don't care fig about either
one, and won't subscribe cent" i
There is much dissatisfaction among
National Bank officers and other holders
Of call bonds at Sherman's preference OF
the First National Bank as a purchaser
Of four per cent. bonds. After his
circular, promising an opportunity to
holders Of ten-forties TO exchange them
advantsgeously for four per cents, his
sudden dick with the Syndicate and his
preference of the First National Bank
to the detriment of more than Two thoas-
and other banks is considered az inauen.
ced by motives somewhat peculiar. An
officer OF one of oar banks said this evc-
ming:
fisherman gave all OF US cause for
complaint when he gave an extra com
mission 10 banks that made speculative
subscriptions. That was poor encour-
agement to banks that were acting pru-
dently. When the First National Bank
wanted to realize on these bonds, they
got the price down to per cent. pre-
MUM, with 4 per cent. of earned in
teress. Since they got the extension from
Sherman they put the bonds up to three
quarters and seven-eighths per cent,
showing the value to them Of being re-
lieved from the payment 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 allowed them to come IN and
get come Of tbe four per cents. There
would then have no been need OF granting
an extension to any bank; and when the
Government wsntd its money it would
have got it. As for Er Gilfllan, be
would not take any part IN Sherman .
scheme 70 favor the First National Bank.
I guess be would rather be kicked out
OF there than not. He is not afraid OF
Sherman, end evidently did not under
stand Shcrmsn's plan to favor the First
National Bsnk, or he would not have
drawn that S4. 900, 600 check. 2sa
"Thsre 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 disastrous. One peculiar feature
Of it is that if the First National Bank
had come to grief by its speculation in
four per ceats. its depositors would have
Host every thing, because the Govern.
ment is preferred creditor. That sort
Of gambling in banking should he pro.
bibited by law. 1t is singular that the
Government. having charge o. out
National Banks, should permit such
enormous operations by small banks like
the First National Bank, -Ilnowisg that
| if the speculation failed the result would
be so disastrous. Shermsn has been SC
partial to the First National Bank in -she
matter that it is common, talk in the
street. The attempt 10 make capital TO,
the Ohio campaign fund out Of the syn,
dicate banks Is also soel kaown Mr.
Sherman's explanation Of his reason fol
giving an extension to the First Natioua
Bank will not bear investigation by those
who have watched the course of event.
He has, at least, narrated the facts il
suoh a way as to deceive the public
t'Have you any positive reason te
know that>politics have been brought tc
bear in the placing of this four per cent
loan by Secretary. Sherman2"
"Only this just before the announce
ment was made that an extensicn Of tim,
had been granted by Secretary Sherman
to subscribing banks to the four pei
cent loan q rnamher Of the Ohio Re