The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-10-14


always was kept within the limits of absolute
safety La fact the money thus deposited was
and is far more amply secured than the money
in the sub-treasury. There is no possibility OF
the loss of dollar of these deposits Inc
banks, particularly in this city, at first were re-
luctant to take the deposits, and for tme L
feared that this resource might fail. but gradu-
ally more and more banks applied, until ABOUT
$4,000 900 alive what would have been nominal
placed and made available for the country g
business.
NO FAvoRITEIsN
I need not Eadd that there was absolutely
NO favoritism in this matter The banks were
designated and made in the order OF their appli-
cations Political and personal friends and foes
were treated alike, The widest possible dis
fributioi! was sought. until almost every state
And territory had one or more repositories and
could use some of the money which rightfuliy
belonged 10 their business. Our critics say;
But YOU ought then to have bought bonds; the
law gave YOU ample power You could have
saved the interest on the bonds bought. In re-
ply / say that. considering the large
sums of money which we knew that
we must invest in bonds, and which We
have since invested in them. believe that had
we attempted to spend S4O00O0yO IN the pur-
chase of bonds between Oct. and Dec. 81,
1es7 the price Of bonds would have advanced
much more than it did, and that the result now
would be a much greater outlay in premiums
talau the interest which would have been saved
had the bonds been bought.
CHOSE THE CONSERVATIVE COURSE
I say further that many good authorities
doubted the lawful power 10 pay premiums Tor
any but sinking fund purposes. Their purchase
was not absolutely necessary, and consequently
we deemed il best 10 adopt a conservative course
and keep within the unquesuoned law and
await the advice OF congress, then 10 meet
within two months The question involved was
he use of public money in the payment of high
preuiunS on debt not yet due. am accused
OF over caution IN doing this Of anxiety 70 be
euro that it had the sanction Of the law making
he
Isxecutive officer, then I guilty.
Memories of what that party did when IN
bower alone can account for this choice OF
words The treasurer statement OF assets
and liabilities ST the end of last month shows
Ghat the amount Of the deposits was S4OO0OOo
less than than the maximum OF the preceding
mine months. At this date the amount or the
deposits is still less.
VOLUNTARY PAYMENTS.
This decrease was owing 70 the voluntary &C
zion of the repositories, some of whom have of
their own accord paid back all OF their deposits
and ceased TO be repositories The Merchants
National bank of New York was the first to do
this II had 81 100000 which it repaid on Feb
II last and took back its pledged bonds. Eight
other banks have since followed its example,
and the aggregate of deposits thus surrendered
since that date is 81 $3.50, 900. One bank, the
Fidelity of Cincinnati, failed and its deposit
of S440, 600 was at once repaid. Ten other banks
have during the same time withdrawn6onds
and reduced deposits to the amount of g, 1885,
900 Mind you, do not defend the de-
tanks. 1t obiectionably minges private with
spublic business. No one can disapprove of this
more than do, but in our wrong condition of
public revenue, the only choice is a choice in
owls.
CHOSE TIE LESSER EVIL
maintain that the administration has chosen
fhe lesser evil. / claim that on the whole this
perplexing business has been well and pru-
6ently managed. Men of business, what say
soul You know the results This system Of
Increasing deposits continued until shortly
after the meeting of congress in Decem-
Der last, and then was absolutely stopped.
n waited the pleasure of the congress
either to reduce the revenues or clearly
10 authorize the purchase of bonds with the
surplus. or to express an opinion that this might
be done under the existing law Congress
finally did this last in print, when at once re-
sumed the purchase OF bonds buying between
April II and June 80 last, with the surplus for
cancellation, S2o GIG, $50 at premium OF s. 4lS,
$40. The sinking fund requirement for the fiscal
year 10 the end of June 90 next, is SAT S44, 1853,
Of which SO? OF 1886 was provided for between
July and Sept. %, by the purchase OF bonds.
$40, 4S4, 800 being principal, and S6,539, $50
premium. During the first few days of this
October the remainder has been more than net.
REsUMISG THE STORY
To resume: Up to the first of this October all
of the per cent. bonds at the beginning of this
Administration-sl9 1884, 100. 50O-had been retired,
and in addition Ssl S2o.240 of and AZ per cent.
bonds at a cost IN premium OF Sl4.elO,17o 60; or,
in al there had been applied to the retirement
and purchase of bonds S29O, 924, SIS so. and the
total interest bearing debt appearing in the
September debt statement - unter
81 600 coo 000 the first time ia generation that
II has not taken 10 figures to express it, and this
Gen. Harrison calls nursing the surplus. If
all republican secretaries had been as wise
was Secretary Window, all OF our bonds
would now be subject to call and the
who.e national debt could be eXtinguished
in about eight years, but they were not SO WISE
and if the revenues are not reduced our only
recourse will be the purchase of bonds at the
increasing premiums. / observe that the
publican candidate for President seems TO favor
this latter course. one reason which he gives
for this is that il il is well for men TO hold bonds
a. high prices, then it is well Tor the govern
ment not TO buy them. Under this logic no
bonds would be bought.
ANOTHER BAD BREAK.
Probably the same mental state induced this
and hs other observation that a study of the
maxim and not of the market caused belief
that duties added nothing to the cost of dutiable
articles. the governments advance cannot be
successfully conducted If such logic and love of
ALTERATION are to take the place OF sound bust
ness Judgment.
Thus infinitely and in an elementary way |
have gone over the history and policy of bond
buying aud depos.ting in national banks because
sucn persistent efforts are made in high Quar-
Ter 10 befuddle and mislead the public mimi on
these subjects as to be an injury OF the public
itsel. ! can find fault enough with
everything that do. it Is indeed a miserable
business. this depoSitIng OF money i'll banks by
TIE government TO prevent panics, this buying
O. bonds al eXOrolIant prices 70 prevent panics,
Tins investment Of the y lOple's hard earned
money at or per cent. interest this not buy
ing bonds at times lest there be no means 10
avert panic--all all of il is to the last de gree
unsatisfactory anil dispeasing, aud when con.
template il / am the hardest of them all TO
please.
BLAISr's rRIcKERY.
Since preparing the foregoing have seen in
newspapers that Mr.. Blaine has thought fit
10 try his weli-Snown skin in deceiving the pub
lie on tais question of deposits lie says that
with money at . per cent. deposit Of $40 600
D00 would he gratUity 10 the national banks
holding thc Inouey OF S3,0OJ,G00 year. This is
not rue. The profit to the banks could not ex-
coed Si00,000 on SEQ 00O000 OF government de-
posts with money a. per cent lie says that
he reads that Col. Brice has Si.00QOu
of the surplus in his bank Until within a week
did not know whether this was true or not,
for until then did not know whether or not
Col. Brice Lad bank, or was interested In
bans / had never before heard Of him in CON
nection with q bank, but it was possible that
this was true, for any bank which applied at the
proper time aud offered the security, would
have got a deposit of that amount One million
one hundred thousand dollars was the maxi
mum allowed any one bank. II il had been true
1t was well. for the money as safe as is the
future and honor Of the Democratic party in
Col. Brice's hands
MET COL. BRiCE.
&a,a -