, 1888-10-25
Extract from Mr. Blaine's Speech
atNeW albany.
sECRETARY EAIRcEILD's I

SECRETARY EAIRCHILD's DEFEEEE.
I find in the papers to-day the re
port of the Democratic meeting in
New York before which Fairchild.
secretary of the treasury, Appeared
20 defend his policy of loaning $780,
O00,000 or the peoples money to Ccr~
tain pet banks without interest. His
defense consists ceietly IN proving
that 1 ove2st2tsd tho Gmeunt thesa
banks could make out az that trans
action. He says that 1 calculated
interest on the whole S60,0G9, 900,
whereas the banks are compelled to
keep % per cent. in their vaults.
Poor banks! What hardships they
have to endure! Laughter I
think Faircbild's answer Is positive
ly amusing, and it recalls 70 NE the
soliloquy OF the man who drew 4
$4,000 prize in a lottery q few years
ago, when the habit was to deduct
Is per cent. before paying the
amount. How lucky it was, he says,
that I did not draw S20,000. It
would have ruined me to pay the
premium. Laughter, Fairchild
does not frankly and manfully con
front the issue. lie does not state
to the people how the banks could
afford to buy government bonds
when the government itself could
not afford IT.. IL it was an advanta
geous proceeding for these banks to
invest $60,G00,0G0 in government
bonds, why was it not still more adj
vantageous for the government to do
1t? Cheers. I press this question
upon Mr.. Fairchild, for he has not
answered why, if the banks could
make 2 or . per cent. on the pur-
chase of United States Is, the treas
ury department could not mako as
much when by doing what the banks
do he could have wiped OUT 0,G00,-
600 of the public debt. 1 press this
question because ii is Il pertinent
question.
NURSING THE SURPLUS"
General Harrison made a we'll
grounded accusation and used hap
py phase when he accused the ma
tional administration OF nursing
the surplus" IF Fairchild had in
vested $60,000,000 in U. S. bonds it
would not have appeared in the sur
plus, but if he had loaned it to pet
banks il still appears in the surplus,
to get rid of which the people must
destroy the protective tariff. There
is very suggestive point bearing on
that, to which l beg FairchIld's at
tention. Between March, 1885, and
June 30, 1856, year and four
months from President Cleveland's
inauguration, the surplus IN the
treasury increased $95,000,000 and
the public debt was only reduced
$50,000,000. OF this S5O,6O0OOO for
ty>four and half millions was cons
pulsory purchase for the sinking
fund. The further fact is revealed
that there was at that date S50,0eO,-
600 of 3 per cent. bonds that could
have been called IN at par and they
were left in the hands of private
holders drawing interest, and in or
der that the bug-bear of the sur
plus might be raised, and as Gen.
Harrison says, carefully nursed."
IMPEAcHED BEFORE THE PEOPLE.
Mr.. Blaine then said: Il believe,
Mr.. Chairman, that there never Was
an administration of the treasury
department that showed Sc little
practical comprehension of the con-
dition of the country, one that has
been so filled with that offensive
conceit which always marks the free
trader. I said before, and I repeat
it now. that if Republican secre
tary OF the treasury had loaned $780,
000,000 to pet banks all over the
country without interest, the Demo-
cratic party, If they had controlled
the house of representatives, would
have moved to impeach him. and l
believe it. l do not say the Repub-
licans would so treat Secretary Fair
child. because the Republicans are
not fond of violent methods, but are
accustomed 10 proceeding with eau
tior. They do not wish TO impeach
him before the senate, but they i'm
peach HIM before the high court of
the people, for having done that
which was plainly against the public
interest and for having failed to re
spond to the precedents set by for
mer secretaries of the treasury, in
faithfully and constantly applying
the surplus to reduction Of the pub
lie debt" Cheers.