Evening star. [volume] (Washington, D.C.) 1854-1972, 1885-06-11
TO ABOLISH THE SUB-TREASURIES
Treasurer JOrdan.s Financial Plnn
WHAT PROMINENT DEMOCRATS SAY A

WHAT PROMINENT DEMOCRATS SAY ABOUT 1T.
In connection with the recent defalcation i'm
the New Orleans sub-treasury, several plans for
protection of the government from such risks
have been considered by the Secretary of the
Treasury, but none yet have been adopted. A
plan submitted by Treasurer Jordan is Ia
abolish the sub-treasuries and to distribute the
government money among the first-class banks
| in the cities where sub-treasuries are located,
the deposit to be secured by UnitedStates bonds
as the national banks secure their circulation
The idea of this IL to relieve the government oi
all the enormous expense and risk of keeping
Its own money. The additional operation by
the plan would be to confer conspicuous advan-
tages upon all the cities favored
by adding many millions TO their active
capital. The idea is to include ali first-class
banks at the different points where sub-treas-
uries now exist. SO that the benefit may be
fairly distributed. The proposition is to make
The first trial of the system at New Orleans.
division of opinion as to its merits among
democrats with whom THE STAR reporter spoke
upon the subject. Most OF them expressed a
desire not to be quoted until they could look
into the matter further, but expressed the
opinion that the plan is in direct violation of
well established principles and involves sub
s,tantiaily the principle maintained by Presi-
dent jackson against banks.
Hon. Frank Hurd said he was under the i'm
preston that the democratic party had always
taken grounds in direct antagonism to such a
plan.
Representative Geo. D. Wise of Virginia an
other democrat well grounded IN democratic
doctrines according to the old school as well as
in progressive politics, said he was not prepared
TO accept such plan. Ii was too great revo-
luton of all the old democratic ideas and doe
trlnes. Ii was thing that the party had al
ways opposed. 1t was for the benefit of banks
and looked like bank monopoly. 1t seemed
TO look to the perpetuation of the National
debt, for the security OF the system depended
upon the debt only. Ii the debt were paid of it
iessened the amount in bonds that could be
held security nv the
was, OF course, in direct aDtagonism to demo-
cratic principles. The sentiment of the people.
he thought, would be against it, as il would
have the appearance of a bank monopoly sup
ported by the government at the peoples ex-
pense.
Gov. Pasted, of Maine said that it would
play hobs with the banks. They would put on
all their steam and go a humming. They
would burn all their fat and oil, until they drive
their engines to destruction. They would bank
their deposits, and things would go to pieces
under such plan.
Representative Milliken of Maine, thought
it a wilder scheme for imitation than even the
greenbackers ever thought Of 1t would tie u ID
the government money, il being i'm circulation
through the banks, SO that IL could not be had
when wanted. "What will the banks do" he
said, .if the government calls for its money
and the bank has it all out? IL presupposes a
surplus. and if there is surplus, am in favor
of paving the public debt. want To live to see
all the debts paid Hethought the scheme a
very wild one.
Representative wilkins, of Ohio, thinks that
the scheme Is worthy of mature consideration.
He says ii Is sound business proposition, but
it would take little time to satisfy the country
of its merits. He thinks ii would at first be re-
garded by many as a scheme i'm the interest of
the banks, but that this idea would yield to in
telligent discussion.
EX-Delegate Maginnis, of Montana, thinks
the plan an excellent one. As the banks would
be required to deposit United States bonds as
security the government would be protected,
and instead of being locked up and idle the
government surplus would be doing service i'm
circulation.