New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-05

,a 20 nor cent bonds OF 1891 purchased March ,,
1855 with a net premium Of 1."1 they "e'c "'e'e"
| and accented October 81 at 105 "a the net picDu"
being 49, a decrease in actual premium Of nearly
pe- cent During the same period. or from NPr'l W
October 81 1880, the price Of per cent BONDS was
| reduced from 100 10 1917 and the net premium from
% o3 TO 90 60 reduction In actual premium o o'c
| . Ia per cent.
The financial benefit which accrued to the Govern
n.r. largely on account OF the prompt reversal OF
Secretary Fairchd's mistaken "un]ustlnapic pohoS
in regard to deposits of surplus revenue IN Ha'ionai
,nks will be still more clearly apparent when tHe
fact is taken into consideration that as soon as nc
appeared in the market bidder Tor a per GENTS
| which will mature in 1907 the premium adVahocu
more than 5 per cent in twelvcmonth. and he was
| unable to redeem, in period OF eighteen "on'''''
more than so 3s0,o50 OF those bonds although IN the
sa, nerod he succeeded IN buying nearly S2000o,000
| ~ 41.o per cents which will mature In 1881. In
| round figures the amount Of IL per cents bought
by the Treasury between August s. 1881 anu MARY"
| 1ssq-a period OF nineteen months-exceeded by
ga 600 900 the amount Of per cents IN the iass
twelve months the amount Of per cents purchased
las exceeded By SCI 10000 the amount OF IL per
cents purchased
DEPOSITS WITH FAVORED BANKS.
As early as January. 1887 Secretary Fairchild with
the approval Of President Cleveland. adopted policy
undcr which I'm a few months tho Treasurer OF the
| United states began 10 surrender the custody ana
control Of many millions Of the surplus revenue ana
deposit the same in National banks throughout u'
country The deposits soon greatly IN excess OF
the amount necessary to the legitimate TRANSACTIONS
Of the Government on January !. 1887. the deposits
,monntcd to about 600 900 900. which was considcra
bly I'm excess Of the average for number OF years
prio- 70 that date The deposits steadily increased
! IN October 1897 the amount S3l ,767.47o In the
next two months II had Jumped to S32'loooi' AN
increase of nearly s2 900 900 In sixty days-and III
Aprll 1883 the enormous sum OF SOL o2l'-Vi Wa
Tins dcpo,itcd-an Increase Of nearly S42O0o,ooo IN
the short space Of sixteen months The deposits
were secured By deposits In the Treasury OF 'hiteh
states bonds, upon which the banks were receiving
Interest At the rate OF and Il per cent per annun
from the Government For each SlOoo'ooo pai) Oh
hond, so deposited the banks received loan OF
81 100 600 in lawful money. For the use OF te puuHo
money thus deposited the same banks were receiving
rom merchants manufacturers farmers and other Gus
! TONERS i to per cent per annum. IN o'her "ous'
for the use of money by Themselves paid INTO '''
nrh,r treasury the taxpayers Of the country were
v,n N favored National banks 10 to II per cent
Th. policy of the last Administration pfoVohcn m"'"
deserved and severe public criticism ana alV"usn
the plan va no, and in the nature OF tmng> coal"
NOT he suddenly abandoned without serious deranSe
mat, ~ hu.inc.s and loss 20 borrowers the toAl
amonn, Il deposits gradually diminished. anu o'
october 81 l--9 had SHRINK to 81 '4"''i''
IN Nj, annual report dated December :, l7o'' rec
rotary Window I'm referring to the FairtlH p"i'S d
nu, IF tire elavc-t inherited cmh"iI' -"'''' ~ '''-
,rr Admin. iration and one for "h'h IL - III ~
cr.o rc-ponsilc.r stated with great force the ooIo'
tions 10 such policy which he Dec i'ien - w "'"'
n,i,fail.- and contrary 10 the spilit OF the act OIL
H. which contemplate, sub treasury ina pendent
| of the banks Among other thnss he san
;, n.co..arilv Involves temptation to fNoriti'n OF
! the most Objectionable character. .l,o.. ,,ro,,
n fs'.- il, Treasury moro oi les d'l,i"' "i''
nc bami om account OF the difficult and d'h'a'c a,H
OF wtldIavius ihc deposits "hti ",i''''a '''''
n ,,t ,l,Ds the exercise of most chneeIou' 20"
hr the ~c,fctar, eff the Treasury "it.rDN u. n
/ -, ped. g. pant OF contract ihc 'nr,roy 81 MILL
..t ~ the Interest o.. certain hvOi.t's whom h' 'e
N T. rro.-iv unjust the Government to grant ile
free u-c of IT, money. While 1t paw i' t'' very i",
tina. favored and , per cent nle,1t -, ~, ~, ,.
bond. nhi,n arc pledged ~ security Tor th' money
Tcrc seem, to he no excuse for th pole when the
rr',-..,, ,.uli r. t'e -ane money 800 the rnr' pace
Of bonds. and 'aefH return 4" ci'ul"'loN anu '"''
"',, n..tit..t, a.,ar to the people 10 e.,c the
t.'t ,. tt.. 81 tIctr money for fDthlu-. willie 'l'f
Ar. icqi red D., TIE bank, 70 pay from TO Per
I,G a. ,r.r 'c,'ercs Of such polio. arc more
,'iinf- ''.c' Doa j. i' in ne ,;''. y.'' ' yc H..
! t..U. Nof,, f'l. f,u.-if'd s'c- Il once ~" IN"
/ taff.'- - 90 and in.incs' aiin-''d 10 'he lh
.aco II. alaeloo, nl,hfra~a woud 10 , icl'
rover. t... hv 'he bank. Tie "i'r AZ money
/ lerlrr. ,tt 10y ma, '.'. .i o,,'rSr i,av
] I..ft 4 o. g.
',. Dr.. = rl.i- 'r .rcss venture. upon ~. accom-
r.l.f of. ar,rct o., thr banh- nay De uit'fF rn"H
uA.i .nOa a,,oa.n..i ton- are suif .nh N''D''"""'
IN. distinction ~ deposits on - and i-r-. WITH
r,f.-.n ., - ir-. ard 100 many ca-c- even with i'i'F
cnc. in t.r.i, r'll districts and e. certain hnNS
YEA. such 81. 10 iu.til .tong suspicion that There
had lceg an actual Welding - What secretary WEI
dom called temptation, To- fayof.tl.m Of the most
Objectionable cinrister'. even n tn dangerous
mower " icr, tle secretary ~ the Treasury If so dis
posed ma, c>iand or contract the currency AT WILL
and n the interest ~ certain i'' 'il"- whom no may
select Lad not beer actually ",crri-cd.
Mr. wlNroN 1T THE HELM.
although ~thorouelly di,approvlns- the policy and
finding himself confronted b. the inherited dim
Gully which IL had created. Secretary Window VA,
,u,pollcd /, move with great caution, lest the ap
picAtlon Of the remedy might prove moro detrimen
n. To- The public interests than the evil to be cured
lie expressed the opinion that the deposits ought to
Ne reduced by at least $50 ,oooo 900 at the earliest
dav practicable. since that date e period of three
| mouth-- the deposit, have been reduced 10 about
s:,3 900 900. total reduction Of moro than $4,000
ooO This has beer effected without any sensible d'-
turbance of business, and the surplu, revenue re
covered has been applied to the purcias" oil lntcc'
bearing bond, thus restoring The money to circula
tion and at the same time reducing the annual
Interest account Of the Government. continuance OF
the ncy policy during the next three months viii
,educe the dcpo-its OF public money In the National
hanks 4, the amount actually necessary for I'll, uu'i
ncs, transactions OF the Government The "unlu'th'
allie policy adopted by secretary Fairchd In rcla
,on IN depo,it, IN the National banks will have cost
the taxpa,crs by the end Of the current fiscal
year in interest on the public deb more than
four million, % dollar and II the money deposited
had been applied t. the purchase of bonds. the ptii-
opal of the Interest bearing dent won" nave p'el
,cfucrd hv some S5OOOOOOO. and thc annual In
forest charge also reduced at least 2O0oooo. That
uocv fortunately fog the country Ia, been abandoned
lLv tie present Administrations, and n, rapidly a,
practicable with due regard TO financial safety, It,
evil effects are being removed.
REDUCING THE PUBLIC DEBT
7, thc first four months Of the current lsfal year
tho rcoulrcmcnis Of the SINKING Fund had ZEN met