Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-10-14

Political and personal friends and Toes
were treated exactly alike. The widest
possible distribution was sought, until
almost every State and Territory had
one or more repositories and could use
come of the money which rightfully be-
longed 10 their business. Our critics
sey But You ought then TO have bought
bonds the law gave you ample power
Won could have saved the interest on the
bonds bought. In reply. say that con-
sidering the large sum OF money which
we knew that We must invest in bonds,
and which we have since invested IN
them. believe that had we attempted
10 spend SAC, 600, 900 in the purchase Of
bonds between October lBt and Deem
Der 81, 1887, the price Of bonds would
have advanced much more than 1t did
and that the net result now would be
much greater outlay IN premiums than
interest. which would have been
saved had tho bonds been bought. say
further that many good authorities doubt
cd tho lawful power to pay premiums
for any bat sinking fund purposes. The
purchase was not absolutely necessary,
and consequently We deemed it best 10
ADOPT conservative course and keep
within tho uuqusatiUned law and await
the advice Of Congress, then to meet
within two months. The question IN
volyed Was the use OF public money IN
/ the payment of high premiums on the
/ debt due. / am accused Of over caution
/ in doing this, Of anxiety TO DO sure that
It had the sanction of tho law-makiDg
power. II tins be crime IN an executive
officer, then I am guilty. The banks
chosen in this way for tins purpose are
alluded TO IN the platform Of tho Repub-
lican party as pet banks." The memo
RES Of what that party did when III power
/ alone can account for tla5 choice OF
words. The Treasurer statement OF as
eets and liabilities at the end Of last
month shows that the amount OF de-
posts at shat time was 81, 900, OOO-leSs
/ than tho maximum Of the preceding nine
months st this date the amount OF
deposit is still hess This decrease WAS
owing to the voluntary action OF the de-
poeitories. some OF which have OF their
own accord paid back all OF Their de-
uosits snd ceased TO he dopesitores.
/ The Merchants National Bank Of New
/ York was the first to do this. 1t had
81. 100. 900. which It repaid on February
! nth lat and took back liza pledged
/ bonds. Eight other b0nks have since
| followed its example, and the aggregate
Of deposits thus surrendered since that
I date is q. 533. O0O One bauk-the FL
deity Of Cincinnati failed, and its
/ deposit Of $4,000 was at once
repaid. Ten other banks have during
tho Same time withdrawn their bonds
end reduced deposits to the amount OF
| 81, 1G6. 600. Mind you, | do not defend
the deposit Of large sums of Government
money In the banks. 1t is Oblechona-
ble when it mngles private with public
/ business. 40 one can dIsapprOve Of tins
more than / do, but in our wrong con
| dition of public revenue the only choice
u the choice Of evils | maintain that
the Administration has chosen lesser
evils. / claim that on the whole this
perploXing business has been wen and
prudenty managed. Men OF business,
what say YOU? YOu know the results.
! This system OF increasing deposits CON
tiuued until shortly after The meeting OF
Congress- IN December last and then was
absolutely stopped | waited the plea
sure OF CONGRESS either to reduce the
revenues or clearly to authorize the
purchase Of bonds with the surplns
/ Cr TO express an opinion That this might
[ be done under the existing law. Con
/ gress finally did this hast April, when l
| nj once resumed the purchase OF bonds,
buying between April 18th and june
80th last with the surplus for cancella-
ton S2G6, GI9,GbD at a premium OF
/ g5,4tS.8z6. The sinking fund require
ment for tho fiscal year to the end OF
june Both next Is 1884, l5S, OF which
| ST. O2l ,S36 was provided for between
| ,lulv LIST and September 18th 10y the pur-
/ cbnse Of bonds. $50, 46f, 800 being the
principal and SG59,936 the premium.
/ During the first few days OF tins
| October the remaining has been more
| than net. 70 resume up to the lst OF
this October all of the per cent bonds
/ mt the beginning Of this administration,
J Slgl 100. 30 had been retired, and IN
addition $Sl, 9Z3. 240 OF and A per
| cent. bonds at cost in premium OF
| el4.81O. 77S.G0, or III all there had been
applied TO tho retirement and purchase
/ OF bonds $3.50, 924 5lS.6O, and the total
/ utcrest-bearing debt appearing IN tho
/ September debt ststementIsundertheon one
/ thousand million mark, the first tune in
/ thus generation that II has not taken ten
| figures 10 express it, And this General
/ Harrison calls nursing the surplus.
| If all the Republican secretaries had
/ been ~ wise as was Secretary WINDOW
all Of our bonds wouid nov be subject
10 call. and she whole national debt
could bc cxtingiShed IN about eight
wears. but they were not 30 wise, and II
| the revenues are not reduced our only
recourse will be the purchase OF bonds at
/ ever increasing premiums. l observe that
/ the Republican candidate for President
seems 10 favor this latter course. One
roason which he gives for tins IL that IT
/ the Government will hold the bonds at
/ high prices theni is well for the Govern
ment to buy them at half-prlces. but
| how il it when it is we'll for the holders
| to sell them Is it then well for the
Government to buy them? Under this
| logic no bonds would ever be bought.
Probably the same mental state induced
this and his other observation that the
study of maXims not Of markets caused
the belief that the duties added to the
cost of the dutiable articles. The Gov
eminent finances cannot be successfully
conducted if such logic and love OF nj
liberation are TO lake the place Of
sound business Judgment Thus mi
nutely and ia an elementary way l have
gone over the history and policy Of the
bond-buying and depositing In national
banks, because such persistent efforts
are made in high quarters to befog aud
mislesd the pubic mind on these sub
iects 10 the serious INJURY OF the public
itself. 1 can find fault enough with
every thing that do. II does indeed Il
miserable business, this depositing Of
money in banks 10y the Government to
prevent panics, this buying OF bonds at
exorbitant prices TO prevent panies, tins
Investment OF the peoples hard-earned
money at only or , per cent. interest,
this not buying bonds at times lest there
Zoe no means to avert panic-all, all OF
it is 10 the last degree unsatisfactory and