Los Angeles daily herald., 1888-10-14
The Political Pot Boiling
Over.
FROM THE STUMP.
Fairchild and Carlisle in New York.
Hill and Blaine in
Indiana.
Associated Press Dispatches to the HERALD.

the meeting before the Sub-Treasury in
Wall street and the subsequent process
sion up town were fully equal to the
hopes of the managers.
Secretary of the Treasury Fairchild
was the first speaker. After asserting
that what was good in business way for
New York was good for all parts of the
Union, and what was bad for New York
was bad for all, Secretary Fairchild said
By the force of untoward circumstances
the Office which I happen to fill is one Of
the most important factors in the coun-
try's business. 1t is not right this should
be the case, and 1 believe another term
of Democratic administration, with Con-
gress pledged to support it in W Use meas.
ures, would result in such reforms as
substantially to eliminate the Treasury
Department from your affairs, thus end
ing the abnormal condition which has
within it possibility of great injury to
legitimate business, and great wrongs
whenever the head of that department
may be unwise or unfaithful.
THE GOVERNMENTS FINANCES.
Discussing the conditions of the Gov.
ernment's finances, Fairchild said: In
some quarters fear has been expressed
lest trouble should be caused when the
Government might suddenly withdraw
its deposits. can imagine no state of
affairs under which it will be necessary
to do this suddenly. The amount thus
deposited is about $57, 900, 900. Look at
| thn Ia of ctotnponnt af o,,I 49,
ties and see if the Secretary of the Treas
ury ever need suddenly call for this
money, or call for it in way to cause
embarrassment to general business. The
Posteffice Department account of the dis
bursting officers balances the Treasurer's
transfer checks. Drafts, outstanding in
terest due and unpaid matured debts.
accrued interest and like liabilities
amount to about $54,0O0,OOO. This
sum always remains nearly constant.
Hence about that amount must always
be kept on deposit for daily liabilities,
and then after money has been set apart
for all these liabilities and for every
other liability of whatever name or
nature, against which the most forced
construction of the law could require
cash to be provided, there remains a
balance Of 500, 444 1926, and in addition to
that $24,345, 800 of subsidiary silver, or
in all $121 200, $3.50. Mind you, l do not
defend the deposit of large sums of Gov
eminent money in the banks. 1t objec-
tionably mingles private with public
business. No one can disapprove of this
more than do, but the wrong condition
OF public revenues makes a choice of
evils necessary. l maintain that the
Administration has chosen the lesser
evil. claim on the whole this perplex-
ing business has been we'll and prudently
managed.
"NURsING THE SURPLUS"
The Secretary then explained his
course in buying bonds and said: Up to
the LIST of October all of the 3 per cent
bonds outstanding at the beginning of
this administration, $194, 100, 500, had
been retired, and in addition $81 ,293, 24O
OF the 4 and AZ per cent bonds, or in all
there has been applied to the purchase
OF bonds, with premiums, 1926, 924,518;
and the total interest bearing debt APP
pearing in the September debt statement
is under the one thousand million mark,
the first time in generation that it has
not taken ten figures to express it, and
this General Harrison calls nursing the
surplus" If all the Republican Secreta-
ries had been as wise az Secretary Win
dom, all our bonds would now be subject
to call, and the whole national debt
could be extinguished in about eight
years.
Secretary Fairchild explained his the
DRY as to the conditions of supply and
demand in buying bonds.
NATIONAL pANU rrpocrro
He then quoted from his last report to
Congress in regard to the purchase of
bonds, in which he said: 1.-THE deposits
in the National bank repositories, as
means OF keeping the circulating medium
available for business purposes. is a re-
source at best very limited under the
present laws, and ought not be used ex-
cept in exceptional circumstances, such
as have existed Of late, and because there
is no better thing to do" In reference
to this he said: Since preparing the
foregoing l have seen in the ne wspapers
that Blaine has thought fit to try his
well-known skill in deceiving the public
regarding the question OF deposits in the
National banks. He says that with
money at per cent. deposit of $50 ,OOO,-
600 is gratuity to the National banks
holding the money Of So, 900, 900 a year.
That is not true. The profit to the banks
could not exceed $4,000 of the
SOC, 1000 Government deposits, with !
money at 5 per cent. He says he |
read that Colonel Brice has million of
the surplus in his bank. Until within a
week did not know whether this was
true or not, for until then did not know
whether or not Colonel Brice had a bank
or that he was interested in a bank. I
had never before heard of his connection
with bank. But it was possible this |
was true, for any bank which applied at |
the proper time and offered proper secu.
rity would have got deposit of that
One million was the maximum |
allowed any one bank. If it had been
true it was we'll, for the money was safe, |
as is the future and honor of the Demo-
cratic party, in Colonel Brice's hands. |
After the postponement of this meeting |
last Saturday, l met Colonel Brice for
the first time, and asked him about this |
of Blaine's. Colonel Brice told |
me he owned the majority of the
stock of bank in Ohio, but
that bank never had Government dol |
lar; that he also had some stock in the
Chase National Bank of New York, of
which, if politics are to be considered, it
is proper to say Cannon, the last Repub-
lican Comptroller of Currency, is Presi-
dent, and that majority of its creditors
, ~, y a ~, bi;copo The hank ala L.ua