The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1880-10-30
Republican Financial MiSmanagemsnt
Millions squandsred on FaYOrite Banks.
John sherman a Participation in the
Profits.

Col. Frederick A. ConkIiag, Of New York,
Democratic candidate for Congress, and
brother of Hon. Roscoe Conkling, made a
powerful speech in New York last Saturday
night, from which the following Is an extract:
Next 10 order on the roll Of Financial Min
listers came John Sherman. The secret his.
tory OF his funding operations deserves, and
IL is 20 be hoped viii one day receive careful
scrutiny. When be took Office IN 1917, the
nterest-bearing debt was 81 ,697, 1888 ,562.
On the LIST Of September, 1880, it was 81 $751;
1856, 266. Il had not been so high since 1871.
This showing leaves It hard 10 divine when
our present masters contemplate the liquida-
ton Of the public debt.
Mr.. Sherman's syndieates require some
lookinginto. Remarkable facilities have been
afforded TO an institution, which appear 80
significant as to involve the grayest suspicious.
] will briefly review the matter. On the 9th
day Of June, 1877, Mr.. Sherman made a CON
tract with the Syndicate consisting Of the
First National Bank of New York, as the
principal partner, and other bankers, for the
sale OF four per cent. bonds at par. Under
this agreement $40, 1876, 800 were disposed of
In April, 1873, ten months later, he sold to
the same syndicate $50, zoo, 900 more bonds,
bearing interest at the rate Of ] per cent. per
anuuul. There was no just reason for placing
these bonds at higher rate Of interest The
very day they were issued they brought l03
per cent in the open market, aud the four
per cent. bonds were selling at premium.
Mr.. Sherman unwarrantably raised tho inter
est Of his own accord, and for no revealed
reason. He sold these bonds to the syndicate
at one and one-half per cent. premium, less a
commission OF one-hale Of one per cent, 80
that the syndicate made two per cent, or one
million dollars on the fifty millions. Mean
while, there was difference created agains
the Government and people Of the Unites
: States Of $3.50, zoos year. It's pertinent her
! to observe that every dollar Of the million
= which went to enrich the syndieates nigh
. have been saved by the government. Tn
s one hundred and five thousand officials in tn
: employ and pay Of the United States eoull
and under n different kind Of Minister, would
4 have been employed to plare the loans di
( rectly with the investors. But let me 60 back
This First National Bank was the principa
partner to Sherman's syndicate. II was a
institution Of little account when he too
\ Office; ard the three men who now own II OF
I tanned possession Of its franchises for an ia
considerable sum. In less than three year
= II became a Government bondholder TO a
enormous extent. Il owned Sl29 600, 900 {
\ bonds at one time. Il has sold over S400
= 0OO,0 out of S737 ,00O, 900 Of four per cen
bondsi and a year or more ago i reporte
having hahuleu over 500 Vuu3VVU IN the pr
ceding nine months.
o. Thus this institution, with but half millio
NJ dollars Of capital, arose from obsenrily al
h. insignihcance into n mammoth bondholdit
- corporation surprising the Rothschilds az
the Bank OF England ia tho extent and ma
niheence Of its operations. It is the regulat
of Government credit in New York. No bal
b. could have attained such power, nor ha'
~ undertaken such transactions, except il pc
IL sessed unusual aud peculiar opportunitis
or The most natural conclusion is that while Il
MS the creature tits also large extent the pro
It's erty Of John Sherman himself How el
shall we account for his sudden and bloat
wealth.