St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-10-16
He Says Democracy Is in Ca
e boots With the Sugar
Trust.
What Was Once a "Ppivate
Affair" Is Now an
Evil.
The Financial Policy Of the
Administration Criticised
by the Tattooed Man.

meeting ever convened here, careful
estimates placing the number present
at from 1000 to 10000. Referring to the
cordiality with which he had been well
coined, Mr.. Blaine said: II respond to
what the chairman has said, and will
say for myself that, though 1000 miles
| from home | am still at home. | am at
home wherever the flag now above me
| floats. / am at home whenever the
popular mass comes to uphold the Re-
publican standard" He continued:
'At Goshen. Ind, last Wednesday,
stated that Mr.. Havemyer, the presi-
dent of the sugar trust, had APP
peared before the ways and means
committee when the tariff bill was
pending. and according to Senator ALI
| son, had secured an arrangement by
which 81, 900, 900 was put into the pOck-
| cts of the trust. Mr.. Mills, chairman OF
| the ways and means committee, in
special card printed this morning in the
| Louisville papers denies that Mr..
| Havemyer appeared before the commit
| tee or that any arrangement such as L
| have spoken of was made for his bene-
| fit. | do not know what Mr.. Mills
means by this denial unless it is that
| Mr.. Havemyer never appeared before
| the full committee when in regular seS-
| sion. If he means that Mr.. Havemyer
| did not appear before members of the
committee in the committee room,
THEN HE IS CONTRADICTED,
| not by me, but by the Congressional
Record. On page 6.5O3 of the Record
! for the current session, issued on July
| 10. debate is reported in which Mr..
Breckenridge, of Arkansas, a member
| of the ways and means committee. adj
mitted that he had invited Mr.. Have
| myer and his attorney to the room OF
| the committee on ways and means on
| the 18th of April to talk over the sugar
| tariff. and Mr.. Breckenridge, of Ken
! lucky, another member of the ways and
means committee, admitted having met
| Mr.. Havemyer and his attorney at an
other time. All that | stated is Substan-
tiated by what | now quote. In cOnSe-
quence, the sugar standard was
changed from No. 13, as originally
reported, and printed in the tariff
bill to No. Is. as reported by the ways
and means committee and passed by the
house. 1t is in this change that Senator
Allison finds the S6.009,000 that Mr..
Mills committee put into the pockets of
the trust. | may take Mr.. Mills denial.
if he chooses to mean that Mr.. Have
myer never appeared before him, but
here are two members of the ways and
means committee who openly acknoWl-
edged that they had heard not only Mr..
Hakemyer but his attorney. The at
tOrney was skilled as to every feature of
the sugar tariff, and not only knew what
points were Instantaneous 10 the gov
ernment, but knew still better what
points were
ADVANTAGEOUS TO THE TRUST.
The latter points seem to have been
adopted by the ways and means COM
mittee, though perhaps Mr.. Mills did
not know this. | find also in the papers
to-day report of a Democratic meeting
in New York on Saturday before which
Mr.. Fairchild, the secretary of the
treasury. appeared to defend his policy
of Ioaning S60,000,000 of the public
money to certain pet banks without III
terest his defence consisted in prov
ing that | Overstated the amount which
those banks could realize out of the
transaction. He said that calculated
the interest on the whole $50, 100000,
whereas the banks are compelled to
keep % per cent of the money in their
vaults. Poor banks! What a hardship
they were subjected to. | think that
MI. rdlICllllu > UiIoNCl 10 IOSillNCIN
amusing. 1t reminds me of the man
who drew a $4,000 prize in a lottery a
few years ago, when the custom was to
deduct u per cent before paying the
amount of the prize. "HOw lucky it
was" the man exclaimed, "that did
not draw $4,000. 1t would have ruined
me TO pay the premium" Mr.. Fair
child does not. frankly and
MANFULLY CONFRONT THE ISSUE.
He does not explain to the people
how the banks could afford to buy gov
eminent bonds when the government
itself could not afford to buy them. If
it was an advantageous proceeding for
these banks to invest $50, 000,000 in gov
eminent bonds, why was 1t not still
more advantageous for the government
to do it? | press this question upon
Mr.. Fairchild, for he has not explained
why, if the banks could make 219 per
cent upon the purchase of United States
fours, the treasury could not make as
much, and by doing what the banks do
he could have wiped out S60,000,000 OF
the public debt. | press this question
not only because it is pertinent but
because it was asked by one of
Mr.. Fairchild's most distinguished
predecessors. When surplus was in
the treasury during the administration
of President Pierce. Secretary Guthrie
applied it to the payment of the Mex
lean war debt, not yet due, and this was
repeated in the first six months of
President Buchanan'S administration
by Secretary Howell Cobb. when the
premium went as high as IA per cent
for the bonds they anticipated. Secre-
tary Guthrie was criticised for paying a
premium for these bonds; and he asked
the very question l now PROFOUND to
MIR. Fairchild, viz: Why those govern
ment bonds were not worth as much to
the treasury department as to any pur-
chaser in Wall street. That is
20 THE QUESTION NOW ASK
in the name of Secretary Guthrie: who
was one of the ablest fiaanciers in the
administration of the treasury depart
ment since Hamilton. But, while Dem
ocratc secretaries before the war
would anticipate, even with premium
of IA per cent, the payment of the ma
tional debt, Mr.. Fairchild intimates that
he will not go above 10S1a for the whole
body of AZ per cent bonds still out.
1t was suggested that he might make
per cent. He denies that. and says that
he can only make 65-100 per cent; as
If that were not worth picking up on a
s1Oo,OOO,OOO. Cen. Harrison made
used happy phrase when he
accused the national administra-
stion of nursing the surplus"
If Mr.. Fairchild had invested s60, 100000
in United States bonds it would not
have appeared in the surplus: but if he
loaned it to the pet banks it still APP
pears as part of that frigstful surplus,
to get rid of which the people must
destroy the protective thrift. There is
a very suggestive point bearing on that,
to which beg Mr.. Fairchild's attention.
Between March 4, 1885. and June 80,
1856, year and four months from Pres
ident Cleveland's Inauguration, the sur
plus in the treasury increased 800, 0OO,-
600, and the public debt was only re-