Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-09-26
Gen. Harrison ON the surplus.
HIS TALK 10 TWELVE HUNDRED INDIANA CALEB

Gen. Harrison ON me surplus.
HIS TALK 10 TWELVE HUNDRED INDIANA CALLERS
YESTERDAY.
Gen. Harrison entered upon his thirteenth week
Of public receptions yesterday. The visiting dele
cations came nom wabash and Park Counties,
and numbered about 1000 The reception took
place In University Park. Gen. Harrison In hts
speech touched upon the surplus question and the
expediency Of purchasing bonds. He said:
There Is one word on one subject that want to
say. Our democratic friends tell US that there are
about a hundred milllons-their arthmettcian ms do
not agree on me exact fgures-in the public
They nave found only this method OF using it:
Deposftng 1t In the national banks OF the country,
10 De loaned out by them TO our citizens at In
terest the Government getting no interest what
ever from the banks / suggested and IL was not
an am original suggestion with me-Senator sherman
mas advocated the same policy with great ability
ID the Senate-that this money had better be used
In buying Government bonds, because the Gov
that way, and there was no other way IN which
f Bus IL cG ~ get any intsress on it a, all
But IL is only the same premium that
tne oohds are bringing in the market In
VINO can use their money as they please-put 1t out
on mortgage at interest or In any other way-think
lne government bond at the present rate OF pre-
MUM Is good investment Now, the Govern.
ment can buy these bonds at that premium and
save great deal OF interest. One issue OF these
Donds natures in 1907, and bears per cent an
were 10 remain all that time in the banks without
bringing any interest 10 the Government, Is there
man here so dunno that he cannot see the great
loss tnat would result to the people? have an
other objection to this polcy-the favoriJism that
Is involved in It. We have heard and from such
nigh authority that think that we must accept It
as true, that the great patronage apperta1ning to
the ONCE OF President OF the United states involved
a public peril Now suppose we add TO that
danger a hundred millions Of dollars that the Sec
rotary OF tue Treasury can put in this community
or that In this bank or that at his pleasure is not
the power OF the Executive perilOusly increased?
Is II right that the use OF this vast sum
could be matter OF mere favOritism; that
the Secretary should be allowed to put ten
million dollars OF this surplus In Indianapolis and
none OF II In Kansas City, or seventyf1ve millions
In New York and none In Indianapolis? III the
money Is used In buying bonds, 1t finds It's natural
place-goes where 1t belongs. This Is a most seri-
Gus objection to the present method OF dealing
with the surplus. But II you still object to pay
ing the market premium when we buy these bonds
see how IL works the other way. The banks de-
poSit their bonds in the Treasury to secure these
deposits, get the Governments money without In
tereSt and still draw interest on their bonds. II
any one OF you had note for 81, 900 due in Ave
years, bearing interest, and your credit was SO
goOu that the note was worth premium, and you
had 81 200 that you could not put out at interest
SO as 10 Offset the interest on your
note, would you not make money by using
this surplus 70 take up the note at fair premium!
Would you think it wise finance to give The s., 900
that you had on hand TO your creditor without in
terest and allow HIM to deposit your note with you
as security, you paying interest on the note until
IL was que, and getting no interest on your de-
pOSit?"