Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-06-12
, THE NATIONAL CAPITAL.
SUB. TREASURES TO BANKS.
A New r,sn Of secretary masaiss which
Is Absss 20 be Carried 0st-Pn,stns Msaes
An fgresiaticp.

secretary Manning has under consid-
Grafton plan for recognizing the sys-
iem upon which the different sub-trea-
suries are now conducted. There has
been good deal OF dissatisfaction with
that system in the past, not only on ae-
count Of the defalcations which have
from time to time occurred. but also be-
cause II results in Withdrawing from
circulation and keeping locked up vast
sums OF money which the commercial
channels Of the country might util-
iEe. The scheme which has been
proposed by Treasurer Jordan is TO
abolish the sub-treasury so far as con-
Germs its functions as strong box, and
TO distribute the Government money
among the first-class banks Of the cities
in which the sub-treasuries are re-
spectively located. Security will be
exacted Of the banks in the form Of
United States bonds, in the same way
As the national banks guarantee their
circulation, and upon scale that will
give the Government a hundred or a
thousand times the protection il now
enjoys. The sub-treasurer will then
become mere accountant or book
keeper as between the banks and the
Government.
The advantages Of Mr.. JOrdan's
scheme are obvious. The chances Of
defalcation arc reduced TO minimum.
The Government is relieved of all the
enormous expense and risk of keeping
charge Of the money. The public bust
ness is provided with a skilled and
systematic management impracticable
under the existing system. In addi-
ton. the operation Of the plan will be
10 confer conspicuous advantages upon
all the cities involved by adding many
millions TO their active capital.
This idea has been specially suggested
by the recent defalcation at New Or
leans. and the first experiment under
il will be made there. Secretary Man
ming was greatly struck by Mr.. Jordan's
suggestion. and these two have been
for several days past in consultation
with prominent bankers and financial
men from different parts Of the country,
from all of whom they have received
the most pronounced encouragement.
Proceedings have gone so far as
10 include the counsel of the Solicitor
of the Treasury, who has shown
thst there is abundance Of law for the
projected departure. Nothing now re-
mains. in fact, but to secure the SER
vices Of some experienced banker in
New Orleans to organize the system
and set ii in complete working order.
OF course the idea is to include all first
class banks at the different points
where sub-treasurieS now exist, so that
the benefits may be fairly distributed
and the utmost protection secured for
the Government.
But what will strike the intelligent
and patriotic masses, of whstever polit-
ical denomination, is the fact that this
measure is one Of genuine reform in the
interests of the whole country. 1t not
only eliminates large number Of places
which have heretofore been used to re-
ward partisan service. but it provides
5he Government with much more ef-
iicient service and the peoples money
with practically absolute protec-
ton. Furthermore, it communicates
30 commerce and industry a pow
cIful impetus in this infusion
Of commercial and industrial life
blOod-money-and thus stimulates
every useful and beneficent enterprise.
At New Orleans, for instance, Sl7, 000,-
600 are now rusting idle in the Govern
ment vaults, and battalion Of clerks
and employees are drawing salaries,
with nothing to do except to devise
schemes for appropriating the funds,
which. recent developments show,
one. if not more, has succeeded
in doing. Mr.. Jordan's plan would
release this vast sum and send il
thrilling through the nations veins
and when it is considered that the
general adoption Of the plan will repeat
this operation in various other cities,
one can estimate the prodigious bene-
fits TO the country at large. The Adj
ministration could not more eloquently
testify its respect for the public veal or
moro generously fulfil its promise of
useful and patriotic reform in govern
mental methods. Besides a benelac-
ton so large. so universal, and so last
ing, the petty chickering's over official
plumber will be relegated by all self
respecting men TO the limbo Of con-
temptuOus oblivion.
WHAT LEADING DEMOCRATS THINK.
lBy Associated Press
WASHINGTON, June ll.-Reierrng
to Treasurer Jordan's plan to prevent
defalcations, one evening paper says
that arrangements have already pro-
crossed iaI toward carrying it into ef
feet. The EreRiag Star publishes a
number of interviews upon the subject,
which indicate a division Of opinion
among Democrats. Some Of them
were not willing to be quoted at
present, but expressed the opinion
that the plan is in direct violation Of
established principles and involves
substantially the principle maintained
by President Jackson against banks.
Others were open in expressions upon
either side of the question. Delegate
Maginnis, Of Montana, and Representa-
tive wilkins, of Ohio, thought the
scheme good and feasible. Governor
Plaisted, Of Maine, thought it would
work mischief with the banks by
encouraging speculative banking.
Frank Hurd said he was under
the impression that the Demo-
cratic party had always taken
grounds in direct antagonism to such
plan. Representative George d. Wise.
of Virginia, said he was not prepared
TO accept such plan. II was too
great revolution Of all old Democratic
ideas and doctrines. II was thing
that the party had always opposed.
II was for the benefit of the banks,
and looked like bank monopoly. It
seemed TO look TO the perpetuation
OF the national debt, for the security Of
The system depended upon the debt
only. If the debt were paid of It
lessened the amount in bonds that
could be held as security by the Gov
ernment. All this was, Of course, in
direct antagonism to Democratic princi-
pies. The sentiment Of the people, he