New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-29
HANDLING STATE FUNDS.
CRITICISMS ON ELLIOT DANFORTH.
THE ASSISTANT TREASURER CHARGED WITH
F,voRrrrsM TO SPECIAL BANKS.


FAvoRITrsM TO SPECIAL BANKS.
Albany, oct % (specia).-Elliot Danforth. tho
Deputy state Treasurer and the Democratic candi
date for State Treasurer. seems to think that
he has already assumed the latter office !;
for the ocia statement of the balances Of the STATE
Treasury In the state deposit BANS Just printed in
"The Albany Argus,n the State paper. bears his
signature, That balance is interesting In many ways
Looked at in one. 1t is seen that Mr. Danforth mas
scattered the States money among an unusually
large number Of banks, which excites the Suspicion
that he is planning TO receive contributions from
banks in aid OF his political canvass. Looked at IN
another, some persons believe they see tna' M'
Danforth. at the request of prominent Do"io. i"'o
politicians, has put the State money IN o"""S Al
which they are pecuniarlly Interested or !" ""o"
friends OF theirs are Interested $500, 49,.
There cam he no question that Mr.. Danforth mas
scattered the States money about 'ne o's'e WIN q
prodigal hand. lie has divided 'he sou
amorc two banks The State on october had Da'
49, g., ,,,.s hanks amounting 10 the large sum OF
a. 200 a., ~ That seems surprisingly large sum
., no living idle: virtually idle, because The S'ao
only obtains the nominal interest OF per cent Io
&c money certain proportion OF the deposlts also
NAYS no interest. One bank alone holds vi 24924o 81
and NAYS Interest upon only 100000 of this amount
~ a.. nlea that as the entire is subject to
be drawn out of its possession in day by chez KS OF
the state Treasurer 1t does not dare to loan u
ont Ia other banks. But every banker knows ths'
the operations of the State Treasurer are regular
and can be foreseen; and that not penny OF INC
states money is permitted 10 lie idle day III AoanH'
when there is an active demand for IL constantly Ill
the New-York money market. Such large iuhd dc
81 400 sl1 81 at this time in the States banks also
tends 10 excite the suspicion that Mr.. Daniofth Is
coddling certain banks for political erect
II Is interesting 10 contrast the amount OF money
In the state banks four years ago al ths Time WI"
the amount in the present year On OCTOBER ioo''
tho state deposits amounted 10 only So 228sso So This
rear on October they amounted TO S542ooll 81 why
this increase7 Does Mr. Danforth intend 10 Keep
this vast sum in the banks until after election ana mus
secure the favor of certain banks for himselfF IL
Is generally believed In political circles that The pres
ont State Treasurer Lawrence J. Fitzgerald. had a
large proportion of his campaign expenses pad oy THO
state banks in 1887. OF course the banks con-
,r,buteds this amount toward Mr. Fitzserad's ex-
peDses II could not possibly have oeen ioiceu
contribution paid under penalty OF the STATE Vaiu-
able deposits being withdrawn.
Does Mr. Dsnforth expect to receive a large " con
trib,itinnp from the banks toward his campaign eA-
neDsesl Certainly there can be no question ABOUT
his receiving contribution" from the f1rSt Natohd'
Rank Of Banbridge. Chenango County, OF which MS
tatborin law c. Prince is the president Thai BANK
on October had $4,000 81 of the states money,
Nor can there be much doubt that the Manufacturers
National Bank OF Troy, of which Ed
ward Murphy jr., chairman of the Demo
cratic state Committee, Is ViceIpreShen''
win contrihutcs toward Mr.. Danforth's expenses IN
view OF the fact that It holds S7935s II OF the aoS
money at present surely also state Treasurer tiz-
ccraM WI take pains to secure contributions for
Mr. Danforth from the two banks In Cortland inc
second National and the National Bank OF Cor'-
land. which possess state deposits amounting TO
s4oo55 81 Mr.. Fitzgerald lives in Cortland so II
will be easy for him about this business Then
there Is the German American Bank OF koehes'er'
which holds ssh ,ls7 80 of the States money. Fred
erick Cook the Democratic secretary of State, Is
president OF that bank Surely Mr.. Danforth can rely
upon n contribution from that quarter. Denis
n, pr'cn OF WATERFOWL the Democratic candidate FOL
Judge Of the Court of Appeals, should interest hmsel
and get contributions from the two banks IN wafer
town that hold state funds. Edward Nemple, O
FutonviIe. the Democratic candidate for Controher
may be expected persuade the Fultonvine Naloha-
rank IN contribute something toward Mr. Danforh's
cxnenSes Cannot also Charles T. IaDor' vi
proIo the Democratic candidate for Attorney
General obtain something for Mr.. Danforth rom lhc
two banks in Buffalo which have State money! smith
NJ Weed of Plat sbuTg, should bestir himself ID
Mr. Danforth's favor with the two banks III tha'
place which have the States money
II has been said above that Mr.. Danforth has IN
creased the number of banks in which the Htse
money Is deposited. In comparison with 1883 'heft
are eleven additional banks. In 1889 there were
fNypn
Under Mr. Fitzgerald ard Mr. Danforh THIS HIST mas
pc,eas c,l to fty-two banks. II is plain to the eX
nerenced eyes Of the politicians of albany that ms
increase OF the number Of such banks has been made
Al the solicitation OF political and personal friends
If the officials Of the State Treasurer's Office !,
- 70 he doubted Il this policy OF scattering
he states funds in such large number OF banks is
Mr. Danforth recently discovered at the Democratic
state Conven ion that he did not please every one
when he distributed the States funds. some OF tht
hanks complained that Mr.. Danforth hau shOwI
fsvOritism I'm dividing the money. Inc clhel con-
nlainant was the National Commercial Banh OF thlS
civ which said that az the request OF a PERSONA
friend Mr. DanfOrth had sent 100000 OF the Scn0o
Fund money 10 tho Merchants National Bank OF mi,
CITY, The directors of the National said that Tor many
years they had had charge of the school Fund' anC
tha IT'S possession was the sole recOmpenSe they had
for taking care of a good deal OF the states money
at a dead loss Mr.. Danforths nomination was OPP
posed at the Convention because OF thiS alioee,
favorsm 10 banks correspondent OF me new
York Sum obtained from Mr. Dantorth the foll0Wln'
statement regarding the National Bank ALTAR; sai
10 Mr.. Fitzgerald, the Treasurer that II he could q,
so IL would please me to have him make some small
deposit with the Merchants National Bank of albany
supposed he might. If he thought best deposit som
OF the canal funds but he transferred %l0OOOO OF th
School Fund from the mmelcial Bank 10 the Mci
chants Bank who felt themselves deprived OF VIVA
usage had established their right That Is All 'heF
is 10 It," Mr.. Danfoth nominated, Dut IN
Incident did not please many of the delegates to IN
Convention.