The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-10-16

rats in Wall street-a charge or corruption, a
charge that should damn the administrators for
all time. IL true. Mr.. Fairchild had completely
swered il in his speech 10 New York last Sat-
there had been of favoriti.m toward pet banks
in the country. He wanted to show q pet bank
that was the pet OF pets. He gave figures to
show the enormous profits which the First Ma
tional Bank OF New York made In 1873. in con-
nectiou with the exchange OF the 4 per cent.
bonds. This pet of the Republican administra-
ton. he said. from 1864 to 1887, made SIC. OOO, 600
OF clear profit on q capital OF $500, 600 Its
profits for 1878 had been II per cent, but In
1879, when 1t was the fiscal agent Of the Treas
ury in the exchange of 4 per cent bonds, It's
profits were 10 per cent. He did not under
take to say that this profit was made out or the
treasury of the United States directly.
Mr.. Tel.sr-Was il made out OF the treasury
indirectlya
Mr.. Vest-It was made by reason OF the fact
that this bank was the fiscal agent OF the treas
ury; .
that bank privileges which were not extended
to other banksl
MI. Vest-As a matter Of course, because the
treasury made this bank its fiscal agent and
gave il the privilege Of buying these 4 per cent.
bonds and exchanging 6 per cent bonds for
them. The First National Bank OF New York
owed the government on April 10, 1879, as
shown by the books Of the treasury, sls5,27O.-
1877. and on June /, 1879. s151, 016. 95l; on July
/. 1879. slO3.2 9l, sI7; on Aug. /, 1879, $57,9 1868, 0S6,
and on Sept /, same year. 500, 065, GA. These
amounts were not for sums deposited, but for
bonds of the United States sold and handled by
the bank. He presented tables prepared by the
treasury showing that the Senate substitute
for the Mills bill increases the rate or duty over
the present tariff. on clothes, g. 40 per cent: on
dress goods, a23; on knit goods, Il. 80; on shawls,
Isl; on yarns, GAL; on cotton thread, 10. %; on
cotton cloths. 9 So; ON brown and black linens,
IA. 20, and on steel, 80 AZ. In these increased
duties can be seen, he said, the ever-present
hand Of New England, whilst the only reduction
of significance 10 upon sugar, and that is made
the stalking horse for increased profits to the
WOODEN and cotton manufactures.
Mr.. Allison said that as to the favoritism
shown to the First National Bank Of New York,
Mr.. Sherman, then Secretary OF the Treasury,
had explained that matter over and over again.
1t had risen out Of the exchange OF 4 per
cent bonds for 6 per cent. bonds. but
that was not like the present case. The criticism
made on the present administration was that in
stead Of using this So, 200. 900 for purchasing
bonds, thus saving 2 per cent interest, it had
been put into the national banks without inter
est. What would be the condition Of things on
Oct. i. 1891. when the At per cent bonds be-
some duel The Secretary could not paw them,
because the calliog in of that So ZOO. 900 from
tho ~nationsl banks would create a pauic. That
was the objection which he had to that loan or
deposit. In addition to this s57. 600. 900 there
was a further Amount Of S38, 900. 600 on deposit
in the national banks, to the credit of disburs-
ing officers, and the Senator from Missouri MIR.
Vest could not GET away from that criticism by
abiding to the treasury operations in 1879,
which were necessary and proper.
Mr.. Teller obtained the floor, the tariff bill
went over till to morrow, and the Senate ad.
iourned,