Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1888-11-01
FAIRCHILD'S SPEECH.

And the rest of the drones we keep.
Puck.
FAIRCHILD'S SPEECH.
An Able Answer to Criticisms Preferred
by Republican Leaders.
The Secretary of the Treasury de-
voted his speech at the business men S
meeting at New York to reviewing his
methods of handling the surplus rev.
enue, and answering the criticims pre-
ferred by Republican leaders against
that course. These attacks have been
very severe and general of late under
the guiding hands of Blaine, Harrison
and certain Senators. and it is there
fore of interest to know what Secretary
Fairchild has to say for himself.
After calling attention to the unwise
and dangerous power which such a
surplus necessarily gives the Secretary
of the Treasury over the course of
business, Mr.. Fairchild briefly re-
viewed the efforts made by Mr.. Man.
ming to ward off disaster that threat
ened the circulating medium in the
early days of the Administration; and
the final buying up of the 8 per cent.
loan, which was effected on July 1, 1887.
BY the end of that month the
surplus amounted to $45, sos, 900 and
was daily increasing, with no bonds to
be bought save as whatever terms the
holders might exact. Money soon be-
came in sharp demand, bank reserves
were low, capital was seeking safety,
h11c mo bnaorx,o al
treasury was appealed to to ward off dis
aster. The situation thus described by
Mr.. Fairchild is too well fixed in the
minds of business men to need further
statement. The result was that the
Secretary bought up bonds to meet the
sinking fund requirements for the
year; and there remaining mo I'M
disputably lawful method to avert sur
plus accumulation, the Secretary
chose to increase the Government de-
posts in National Bank repositories
''as the only certainly lawful means
left to save the country from the evils
which rapid withdrawal of the cir
culating medium from the channels of
business might cause" He says the
banks were reluctant, particularly in
New York, to receive deposits, and he
emphatically denies that any favorit-
ism was shown. This last charge has
been shown to be SO ludicrously false,
as in tho case of Blaine in Detroit, that
it hardly merited notice.
Mr.. Fairchild continued to SO dis
pose of the surplus until Congress met,
when he awaited the pleasure of that
body TO either reduce taxation or
clearly authorize him to buy bonds.
After an opinion had been expressed
by the two houses that bonds could be
purchased at premium under exist
ing law, the buying was begun in
April and has continued ever since; so
that by October 1, $S1, 923, 24O, and
Al per cents had been purchased at a
premium of S14, S1O.77S. Altogether
this Administration has applied $780,
924, 51S to the retirement of bonds, and
the debt in September for the first
time in generation could be
expressed in less than ten figures.
'.And this General Harrison calls
nursing the surplus
The Secretary devoted the rest of
his speech to an ad hominem answer
to his critics. To General Harrison
he says:
II the revenues are not reduced our only re.
course will be the purchase of bonds at ever
increasing premiums. Mr. Harrison seems to
favor this latter course. One reason which he
gives for this is, that if it is well for men to
hold the bonds at high prices, then it is we'll
for the Government to buy them at high prices.
But how is it when it is well for the holders to
sell them: Is it then well for the Government
to buy them: Under this logic no bonds would
ever be bought. Probably the same mental
state induced this and his other observation
that ssudy of maxims not of markets caused
the belief that duties added to the cost of du-
table articles. Government finance can not
be successfully conducted if such logic and the
love of ALTERATION are to take the place of
sound business judgment.
To Mr.. Blaine, he says:
have seen IN the newspapers that Mr..
Blaine has thought fit to try his well-known
skill in deceiving the public upon the question
Of deposits in National banks. He says that with
money at per cent. deposit of $50, COG, 600
would be gratuity to the National banks
holding the money of 100000 year. That
is not true. The profit to the banks could not
exceed "a 90 o on $50, 900 of Government de-
posits with money at per cent.
MIR. Fairchild shows how Mr.. Blaine
makes no account of the premium paid
BY the banks on the bonds to secure
deposits; nor of the % per cent. of the
deposit required to be held as re-
serve. To Senator Allison, who COM
planned in his speech the other day,
hat he could not see for the life of
him why the surplus was not devoted
to the purchase of Al per cent. bonds,
Mr.. Fairchild says the department has
bought finally nearly all of these bonds
that have been offered. and if Mr.. Al
lison will only tell where more II per
cents. can be bought at saving of 2
per cent, the Treasury department
will take them.
Mr.. Fairchild's critics are easily
answered. This part of the Republic
an arrangement has been perceptibly
weak and strained, and contrary to
all reasonable dictates. 1t was born
of the exigencies of political cam
vass.- Springfield (Aass.) Republican
(Ead.).
THE DEMOCRATIC RECORD.
RECON- Measures Inaugurated by the
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