San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1888-05-03
SAN MARCOS HAYS COUTY TEXAS. THURSDAY. MAY g. 1885,

whereupon no issued his order TO tn
banks outside OF New York TO trans
nit their balances directly 10 th'
Western National Bank-not TO th,
Secretary of tho Treasury-but di-
rectly to that bank, and to telegraph
the amount OF their remittances Il
the Secretary OF the Treasury.
And then Mt this session OF Con
gress the Secretary Of the Treasur,
has sont in an item showing o def
cheney in the telegraphic expendi
lures, and he states in his letter thu
the deficiency is solely owing to th'
large amounts OF deposits placed il
the national banks, that is to say th,
cost of this telegraphing, both Il
and from the banks that are using
this government money for nothing il
paid out of tho treasury of the Uni
ted States and in order to meet this
expense an item has been allowed in
the urgent deficiency bill which
passed this House. What excuse il
there for this
Then we haye also the Third Ma
tional Bank Of Buffalo, n Y. Whose
bank is that? 1t is bank controlled
by gentlemen prominent in the Stand
ard Oil Trust. Yes, the Standard
Oil Company has it's hands in the
treasury also, through this and Other
banks. Think of tho burning shame
and disgrace of this transaction! No
wonder the people are losing conf
dence in the government. This
Standard Oil bank-the Third Ma
tional Bank of Buffalo-has $685.
900 of the government money and
the Seaboard National Bank OF New
York, in which Daniel O'Day, the gen.
eral manager OF the Standard Oil
Pipe Line, and j. j. Vandergrift, the
President of the Standard Oil Pipe
Line, are prominent stockholders, has
$515,O0 of government money.
The President and Treasurer of the
American Bankers Association are
presiding over national banks which
have been designated as repositories,
and twelve out of the twenty-one
members of the executive council OF
that " trust are also connected with
banks that are repositories, and are
using government money.
Mr.. Chairman, it is true that one
and all of these "trusts " that are to-
day choking the very life out Of the
people of this country are, through
their national banks, using to u
greater or less extent the government
money, and are usingit it to oppress
the people. / say this is public out
rage and villainous shame. Here
Congress has been sitting for nearly
three months and not half-dozen
voices have been raised against it,
not move has been made to remedy
the evil or to rebuke the crime. On
the contrary, efforts have been made
to extend the privileges OF the banks.
I denounce it, and trust / shall be
pardoned by my Democratic breth-
rem for my Jeffersonian and Jackso-
nian eccentricities on this subject.
think we have reached time when
the Democratic party can afford to be
Democratic.
Now, MIR. Chairman, / have already
Indicated that this money is not in
the treasury, but in the banks. The
banks are simply the lenses through
which, like radiation this money
reaches the people. 1t is now in cir
culation, and the business OF the
country has adjusted itself to it.
Now, I repeat the question: why
was this money placed in the banks
in the first place?" I know the an
swer, and the only answer which can
be given. 1t was done to avoid a
panic which was then impending.
Let us grant that to be true. l as
sert here and nowthat if you recall
this money as this bill is intended to
do, you will inevitably precipitate q
panic, and nothing can preveDtit. You
cannot take it from circulation again
through the banks without serious
This bill will not have the effect
whichis desired, nor will the Secre-
tary of the Treasury undertake to car
y it out, He dare not. He may un-
lertake to buy few bonds with tue
surplus actually in treasury and not
n the banks, or which may hereafter
He will not take the
of calling tho money
nto the treasury in the present stnn-
yency in the money market. The
1anks, sir, are the masters Of the sit
lation, and not the secretary. But " u
vii answer we can demand the mon
" Of the banks or compel them TO
iell their bonds held for deposits
You can do nothing OF the kind.
They will say to you: Our bonds are
and we do not want to sell.
4 you want your money we will call
n our loans and pay you, but you,
'Ir. Secretary, must take the respor-
iibility Of a panic, which is likely TO
ollow. That is what they will say.
Another fact, Mr.. Chairman: The
has increased the premium
N these bonds by this enormous 4
Iystem Of deposits, and this bill pro-
IOses 10 authorize him 10 buy these
,onds at the premium 10 which bis
sretcbed policy has bOOmed them
This i something worse than folly.
By this policy be boomed the pnce
4 the bonds in the ia3ds Ct he bo3d-