Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-10-16
READY REPLIES
Made by Mr.. Blaine to Mills and
FairChild'S Statements.
Why Can Banks Afford to Buy
Government Bonds,
When, Democrats Claim, the Government
Cannot?
Bonds that were Not Purchased at Par
I'm Order to Nurse" the Surplus.
NEW ALBANY, Ind.

NEW ALBANY, Ind, Oct. 10.
| Inelement weather interfered somewh ha,
with the Blaine demonstration today, but
/ thousands of visitors poured into town. A a
reception this forenoon at Windsor Hotel,
| Blaine was kept busy over an hour shaking
( hands. This afternoon there was an i'm
posing parade which was reviewed by Blaine,
Gen. Hovey and corporal Tanner. At the
mass meeting in the evening at the intersec-
ton of llth and Market streets, about 10 900
people were present In the course of his
speech Blaine said; II didn't know what
Mills meant by this denial unless that Ha-
vemeyer never appeared before the full COM
mittee at a regular session. If he meant
that Havemeyer didn't appear before the
members of the committee in the committee
room then he is contradicted by the Con-
gressional Record. On page 6503 of the
Record for current session issued
July 10, debate is reported in which
Brecke nridge of Arkansas, member of the
ways and means committee, admitted that he
invited Havemeyer 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 Breckenridge of Kentucky, an
other member of the ways and means COM
mittee, admitted to have met Havemeyer and
his attorney at another time" Regarding
Seer tary Fairchild's answer to his (Blaine's)
denunciation of the policy of loaning $780,
000, 900 of the public money to a certain pet
bank without interest, Blaine said that Fair
child didn't frankly and manfully confront
the issue. He doesn't explain how the banks
could afford to buy government bonds when
the government itself couldn't afford to buy
them. If it was an advantageous proceeding
for these banks to invest $50, 600, 900 in gov
ernment bonds why was it not still more ad-
vantageous for the government to do it!
Blaine continued:
If the banks could make and 3 l2 per
cent upon the purchase of L. s. fours, the
treasury could make as much by doing
what the banks do The Secretary could
wipe out $50, 900, 900 of the public debt
When a surplus was in the treasury during
the administration of President Pierce, Sec
retary Guthrie applied it TO the payment of
the Mexican war debt not yet due, aud this
was repeated in the first six months of Pres
i1ent Buchanan's administration by Secretary
Howell Cobb when the premium was as high
as per cent for the bonds they anticipated.
Secretary Guthrie was criticized for paying
premiums for these bonds and he asked
the very question | now PROFOUND to Mr..
Farchild, viz. Why those government
bonds were not worth as much to the treas
ury department as to any purchaser in Wall
street? Applause.
sBlaine accused the administration of
nursing the surplus" lie said Between
March 4, 1856. and June 30, 1886, year
and four months from Cleveland's Inaugural
ton, the surplus in the treasury increased
S95, 10000 and the public debt was only
reduced $50, 900 900. OF this $50 900 900
S44,500,000 was a compulsory purchase for
the sinking fund. There was at that very
date $4,000, 900 of 3 per cent. bonds that
could have been called at par and they were
left in the hands of private holders, drawing
interest, in order that the bug
bear Of the surplus might be
piled up as an argument for
destroying the protective tariff"
In the evening there was torchlight
parade. Gen. iIovey and Corporal Tanner
addressed large audience at Mascot Hall.
Blaine and party leave for Lafayette at
O'Clock tomorrow, He speaks at Tippecanoe
battle ground Wednesday afternoon.