Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1892-07-21
THE ANSWER PLAIN AND SIMPLE

THE ANSWER PLAIN AND SIMPLE
Some one IN 1'arboro, N. c., has
been writing to that able ~expounder
of political and commercial views
the New York Journal Of Commerce,
In regard to some of the trumped
up" charges against President Cleve-
land. We copy the letter in ques-
ton and the Journals reply as fol
lows =
TARBoRo, N. c., July Z, 1892.
Editor Of the Journal Of Commerce:
Alliancemer have been preju-
diced against Cleveland by the
charges of the reform press that he
is under domination of Wall street,
referring particularly to the course
of his administration in the pur-
chase of government bonds and the
depositing of money with certain
banks of New York to avert panics
or severe contraction of the currency.
| Will you please review this feature
of his administration and say
whether or not the above charge is
just? D. G.
RepEy.-Before the end of Presi-
dent Cleveland's term of office there
was a large and increasing surplus
in the treasury for which the gov
eminent had no need. This money
might have been locked up and
boarded, it might have been wasted
in e~xtravagant appropriations, used
in the purchase of bonds or de-
posted in banks for the use of the
people. The first and second of
these plans did not commend
themselves to the President, and he
used some Of the money in the pay
ment and purchase of bonds, and
some of it he placed on deposit in ma
tional banks. 1t is incumbent upon
those who object to these methods to
point out soue better or more equit-
able disposition that might have
been made of the surplus, It is no
answer to say that it neve should
have been collected, because M.
Cleveland was not responsible for
this, and he himself urged that the
collection of a larger revenue than
the government needed should be
stopped. During the last campaign
the Democratic President and Sec
rotary Of the Treasury were criticised
very sharply by some Republican
speakers for keeping public money
on deposit in national banks, but
the Republicans had made the same
disposition of public funds before
and have done it since. The de-
posts are made under authority of
section As of the National Currency
act of June 8, 1864, as fellows: Gall
associations under this act, when
designated for that purpose by the
llSecretary of the Treasury, shall be
depositaries of public money, except
lreceipts from customs, under such
Regulations rs may be prescribed by
the Secretary, and they may also be
employed as financial agents of the
government and they shall per-
Horn all such reasonable duties, as
Idepositaries Of public moneys and
Financial agents of the government,
as may be required of them" The
Secretary is further authorized and
Required to demand of the banks
!, sufficient security for the safe keep
j ling OF the money, "by the deposit of
States bonds and otherwise
.dFrom the passage of this act until
j 1835,all Presidents and Treasury Sec
retaries were Republican; there were
1~goyernment deposits in the national
banks all the time, the amount
sometimes reaching three or four
times that on deposit during CleYe-
: lands administration. In this con-
9 nection the following extract from
the first annual report of the Treas
: : urer of the United States under
President Harrison's administration
t is worth reprinting: "The amount
of public moneys held by the depos-
Iitory banks ran down during the
year from $58,712,511 to $47,259,-
VA, the result mainly of the vol
untary acts of the banks in surren-
dering the deposits and withdrawing
their bonds. This extract shows
= that the Republican administration
E with ample power to remove the
deposits entirely, had failed to do 80
9 that such reduction as was made
arose mainly from the voluntary &C,