The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-09-05
PRESIDENT HARRIsoNs FINANCIAL POLICY.

PRESIDENT HARklS0h'S FlNAhUlAL fULlCf.
The Sentinel attempts to make point
against the financial policy of the pres
ent administration because, within six
months after President Harrison's in
auguratiOn, he has not reversed all the
bad precedents set by Mr.. Cleveland.
The special point of the attack is that
the surplus has not been wholly applied
to the purchase of bonds, and that q
large government deposit stillremains in
the national banks. The following, from
one of General HarrisOn's speeches, is
quoted:
The surplus now in the treasury should
be used In the purchase OF bonds. The law
authorizes this use of it, and. If itisnot now
needed for current or deficiency aPpropria-
lions, the people. and not the banks IN
which it has been deposited, should have
the advantage of its use by stopping inter-
est on the public debt.
The President is charged with insincer-
ity and Inconsistency because this policy
has not been carried out to the extent of
devoting the entire surplus TO the pur-
chase of bonds and reducing the gov
eminent deposits in the national banks
to minimum. The charge has this
much foundation that there is still
considerable sum remaining ON deposit
in the banks and the surplus
has not yet been entirely wiped
out by the purchase of bonds. But
good start has been made in both direc-
lions, and, as in the case of the Demo-
! cratic office-holders, we think if Presi-
dent Harrison is allowed reasonable
time he will get there. The Sentinel
| quotes an editorial on Mr.. Cleveland's
| financial policy from the Journal of Oct.
| 10, 1888, to prove that President Harri-
sons present policy is just as bad. The
| Sentineps recent practice of using Jour-
| nal editorials with the change of only
few words is furnishing its patrons with
some mighty good reading, but it should
exercise better judgment as to the time
of printing them. Wait till October,
1892, and see how our Cleveland editorial
| of last October fits President Harrison
| then.
The distinctive feature of Mr.. Cleve-
lands administration, next to his free
trade pronunciamentO, was the accumu-
lation of surplus. The nursing of the
surplus was part of his free-trade pol
icy. AS leading banker of New York
said, few days ago:
The policy of Secretary Fairchild under
| the Democratic administration of Presi-
| dent Cleveland did not aim to reduce the
| surplus, or the Secretary would have pro-
| cecded differently. The scie aim seemed to
be to keep the accumulated surplus N the
| Cleveland and Mr.. Fairchild, from the
| mere political view, argued now we've got
| them" With the Treasury grooming under
the plethora, Mr.. Cleveland promulgated
| of his Secretary of the Treasury, was not
| to reduce the surplus by the purchase of
| bonds, but by the reduction of customs
| duties, the accumulation in the Treasury
being the mainstay of the argument.
In the effort to increase the surplus
| the law authorizing the Secretary of the
Treasury to purchase bonds was ignored,
| and money was purposely allowed to ac-
cumulate in the Treasury and the banks.
That was Mr.. Cleveland's policy.
| The present administration has al
| ready begun to reduce the surplus and
bank deposits, and has made good be-
| ginning in the purchase bonds. A
private individual would be accounted q
financial ninny who should pile up
money in his safe while he continued to
| pay interest on outstanding notes that
he might buy in. The government has
to pay premium for its bonds, but it
stops interest and saves money by it.
During the months of July and August
the Secretary of the Treasury paid
| $4,096,546 as premiums on bond pur-
chases, against S1,4OO,619 paid for the
same purpose in 1888. An excellent
beginning has already been made in
carrying out General Harrison's sugees-
ton regarding the disposition of the
surplus, and he has three years and a
half yet to serve. Suppose we wait a
L xpbi1a