Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1888-10-27
A Startling Abuse Of Power and Mis-
use OF the Public Funds

E6TTJSOn.
A Startling Abuse Of Power and Mis-
use OF the Public Funds
The Cleveland leaders have resorted to
desperate devices to break the force of the
charge that the National Administration
has used The money in the Treasury for
partisan purposes. 1t is in vain that they
have tried to escape from the arraignment
by Mr.. Blaine. amply sustained by facts
and official figures, to the effect that large
sums Of money have been loaned to GER
tain national banks by Cleveland's Secre-
tary Of the Treasury for the benefit Of
Cleveland's political friends. As SHOVE
ing this favoritism to special supporters
Of Cleveland's political fortunes it is suffi-
Gent to give the facts relative to the bank
organized by the late Secretary Manning
and ex-Treasurer Jordan. When these
two Democrats gave up their places in the
Treasury Department there was loaned to
their bank by Secretary Fairchild, 81, l00,-
600. For practical purposes this is so
much capital added to the financial re-
sources Of the bank. 1t ia capital which
pays no interest to its lawful owners, the.
people Of the Nation, and which is loaned
out by the bank managers to their Gus
toners at the regular rates of
discount. Clevelands administration
thus made the Treasury Of the
Government partner in the new bank
founded by its special supporters, and
transferred to its use sl.100,0OO of the
money belonging exclusively to the peo-
Pile, and this at time when the Nation
was paying large sums of interest on its
many hundreds of millions of indebted
ness. This bank of Mr.. Jordan and his
associates, as well as other banks in New
York, are today using sl3,000,0O0 of the
funds Of the Government, the common
property Of the entire American people.
Secretary Fairchild admits In substance
that this money Is improperly loaned,
clearly implying that he had done so re-
luctantly, and by whose dictation unless
Of some power above him-the Executive
himself? The Secretary, in his speech
the other day In New York, declared in
effect that he was ashamed of the whole
business. In his last annual report he
said: 81 do not mention deposits in ma
tional bank repositories as a means Of
keeping the circulating media available
for business purposes, for that resource,
at best, is very limited under present laws
and ought not to be used except in ex-
ceptional circumstances, such as have ex-
listed of late, and because there is no bet
ter thing to do" But common sense and
common honesty plainly tell him there is
something better to do. Mr.. Blaine points
out clearly how the interests Of the Gov
eminent can be better cared for
No wise financial man in his
own affairs would loan out his money for
nothing while he is paying out large
sums of interest money on his own notes
of Indebtedness. Shall not the govern
ment agent be as wise and faithful for
hut iDLtttslS VI bIt NdtlOu as lie Is III
his own individual affairs? II instead of
loaning the money to political favorites
for nothing, the Treasurer would use that
money for the purchase of the Nations
interest bearing notes, considerable sum
could be saved. Why does he not do
this under the legal authority which he
holds? Can any body point out any other
reason than his desire and the desire of
his superior in official power to assist their
political party in the present campaign
The partisan manner in which these gov
eminent loans have been distributed shows
eonclusively why the interests Of the
governmeH have been ignored. Not
only has the Jordan New York bank been
loaned the 81 100000, but four banks in
Speaker Carlisle's district have in the
same manner been furnished with $500 ,OOC
of the peoples money. OF what value
can be Mr.. Fairchild's declaration that
he does not consider the polti-
cal opinions of bank officers, against
such facts as these: How happens it that
Cleveland's official representative sends
the money of the nation to Covington
Kentucky, in order to make it useful in
the business of the country Coyington
Is not business nor comm ercial cen.
ire 1t is true it is in Cariisle's district, No
Carlisle's election is trembling in the bal
ance. Cincinnati is large commercial
centre, on the opposite side of the Ohio
river. Why was not this surplus money
sent to the banks of Cincinnati? The
reason Is obvious enough. Cincinnati is
a Republican city, and it is not in Car.
isles district, of which the friends OF
American Labor are liable to take polti,
cal possession in November. Carlisle and
his Free Trade propagandism must be sus-
tanned by the perverted funds of the
Nation.
The discriminating partiality in favor
of New York, where hangs the political
fate of Grover Cleveland, is equally no.
tieeable, equally partisan. How happens
ii that the banks of this doubtful State
have received 5000, 900, while the banks
of Illinois, Michigan, Wisconsin, Mime
sofa, Iowa, Kansas and Nebraska, con-
tanning twice as many people AS New
York, and just now engaged in the trans
action of the great business of moving the
crops, receive about s5,000,OO0.
The Western States are Republican. and
the Democratic managers see no possible
way of obtaining from them an electoral
vote. In the light of these facts, as to
which there can be no doubt, no contro-
versy, is there any possible way to
weaken the powerful arraignment of Mr..
Blaine as to Administration misuse of the
funds of the Government for partisan
purposess Or to deny the import of the
following indictment of the \. Y Mail
and Exprpss.