The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1888-10-03

public treasury for which the Government has
no need. They have found only this method OF
using il deposting it in the national banks OF
the country to be loaned out by them to our
citizens at interest, the Government ge ting no
interest whatever from the banks L suggested,
and 1t was not an original suggestion with me
Senator Sherman has advocated the same policy
with great ability in the Senate-that this
money had better be used in buying Govern
ment bonds, because the Government would
make some money in applying IL that way, and
there was no other way in which they could get
any interest on 1T at all. But 1t Is said
If we use it in this manner we pay
premium to the bondholders. But 1t is
only the same premium that the bonds are
bringing in the market. I'm other words, as
said the other day, capitalists who can use their
money as they please-put IL out on mortgage,
at interest, or in any other way they wish
think the Government bond at the current rate
OF premium is n good investment for them.
Now the Government can buy these bonds at
that premium and save deal OF interest. L
Will not undertake to give you figures one issue
OF these bonds will mature in 1907, ard bears
per cent. annual interest. Now, suppose this
surplus money were TO remain all that time in
the banks without bringing any interest 70 the
Government. Is there a man here so dumb that
he cannot see the great loss that would result
to the people,
have another objection TO this policy-the
favOritism that ia involved in 1t. We have
heard-and from such high authority that 1
think that must accept il as true-that the
great patronage appertaining TO the Office of
President of the United States involves public
go 10000 that the Secretary of the Treasury
can put in this community or that, in this bank
OF that. at his pleasure. Is not the power of the
Executive perilously increased? Is il right that
the use OF this vast sum should be matter of
mere favorit SIN? That the Secretary should be
allowed 10 put Sl0,001,0O0 of this surplus in In
dianapolis and none of il in Kansas City, or
S75 100000 in New York and none in Indianapo-
lisp If the money Is used in buying bonds il
finds its natural place-goes whore it belongs
This is a most serious objection TO the present
method Of dealing with the surplus. But il you
still object TO paying the market premium when
we buy these bonds, soc how 10 works the other
way. The banks deposit their bonds i'm the
Treasury to secure these deposits, get the Gov
eminent money without interest, and still draw
interest on their bonds. IL any ono of you had n
note for 81 900 due in five years, bearing interest
and your credit was so good that the note was
wort premium and you had ~, 900 that you
could not put out at interest as to Offset the
interest your note, would you make
money by using thi surplus to take up the note
at fair Premium Would you think Il wise
finance 20 give the 81, 900 that you had on hand
to your creditor without interest and allow him
20 deposit your note with you security, you
paying interest on the note until 1t was due and
getting no interest on your deposit?
/ welcome my young friends from Parke
County. There is nothing fuller of interest than
childhood. There Is so much promise and hope
I'm il. Expectancy makes life rosy TO them and
interesting TO US who have passed beyond the
turn Of life. You are fortunate in these kind in
structors who from week 10 week instll In o
your minds the principles OF religion and NOR
atty; but do not forget that there Is ano her
vine that may be appropriately twinod with
those-the love OF your country and her institu-
lions. l thank you again for this cordial evil
denco OF your regard The skies are threaten
ing aud az there is danger that our meeting
may be interrupted by rain, / will stop here in
order that may meet each OF you personally.