Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1888-12-21
DEMOCRATIC FAvORITISM WITH
OUT EXCUSE.

| lot pubic tullSulcuuohl' -
view of the facts may lead to the con-
clusiOn that the Secretary had some
reason to say as little as possible
about a performance unprecedented
in the history of the Treasury, en-
tlrely without excuse in public
needs, and apparently designed to
serve personal or partisan ends.
Deposits with National banks
have been made under previous
administrations by collecting ofi.
GERS for the transfer of money to
the Treasury, or for the needs OF
disbursing officers, or in facilitating
refundlng operations. 1t remained
for Secretary Fairchild to lend
money without interest TO banks,
to be re.lOaned at interest by them
for their own use or :he use of their
customers. The amount OF deposits
with banks was reduced in 1859,
when President Grant succeeded
President johnson, to $S,S75,O0O.
For fourteen years it ranged be-
tween S6,9OO,OOO and 100000,
except in connection with refund
ing operations in 1878 and 1916
Even as to one of thes Q
years the Official ateme n
of the Treasurer for 1873 shows
only $7,510,920 due from National
depositaries June 80, 1873, while
Treasurer Hyatt, for some unex-
planned reaso n, reports the amount
as many tim es larger at that date.
From 1882 10 1885 inclusive the
amount officially reported was be.
tween S9,6OO,OOO and S11, 100000
These facts show that no public
necessity requires larger deposits
with the banks.
When the present administration
came into power it did not for
some months materially increase
the deposits, aud they first reached
S14,OOO,OOO June 80, 1886. By the
end of the year they had risen to
S1S,10O,000 aud June 80, 1887,
we're but S19,1OO,OOO. These facts
Indicate that, prior TO Secretary
Fairchild's supposed necessity, he
had chosen to deposit with banks
several millions more than his
predecessors had so deposited, and
100000 more than had been
found needful for the operations of
the Government during nearly the
whole of seventeen years under
Republican administrations. But
from June 80, 1887, he rapidly in
creased the deposits to s61, 500 900
February 30, 1888, and SCI, 900, 900
April 80, 1888. Since that time
there has been a gradual decline Of
Sol, 100000 November 80. 1t has
appeared in evidence ELECTED by
Congress that funds we're placed
with the Western National Bank
expressly as a permanent deposit,
that being the bank which ex-
Secretary Manning and ex-Treas-
urer Jordan organized, and that
this institution was intrusted with
some underlined function or power
in arranging for deposits with
other banks. During the campaign
1t came to light that some bank
officers who had been favored by
large deposits, though formerly
ardent Republicans, allowed them
selves to be publicly quoted as
faNoring President Cleveland's re-
election. In other instances the
connection between very prominent
Democratic politicians or specu-
lators and banks which had part of
the public money was unpleasantly
Obvious.
The bare recital of these facts
suffices to show that no Republican
administration can afford to toler-
ate a continuance of this objec-
tionable policy. No suspicion of
backstairs, personal or political
connection with favored banks
should be allowed to attach the
administration. The stoppage Of
deposits not required in connection
with the operations of the Treas.
ury, aud for its interests, and the
withdrawal of funds deposited for
other than public purposes hitherto,
whenever it can be accomplished
without dlsturblD & business un-
reasonably, will undoubtedly be
the policy of the administration.
After waiting for almost four
years and until the railway mail
service had been filed with Demo