The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1896-09-17
THE BANKS AND THE Gov
ERNMENT in 1861.
Editor Herald:

GATOR dcralQ.
1t is being confidently and loudly
asserted, as usual. without proofs, on
all sides by the advocate of silver and
fat money, that at the opening ef the
late war of the rebellion, Mr.. Lincoln.
who was then President. went to New
York to borrow money from the banks
and bankers, but was informed that
they would not loan the government
any funds with which to carry on the
tweuty per cent. Understand that Mrs.
Lease has repeatedly made this assertion,
and so haye many of the street orators
In favor Of the cause of silver. 1t is re-
ported that DR.. Ellen jennings, at a re.
cent Bryan demonstration in New York,
makes the same assertion, but fixes the
exorbitant rate of interest demanded
at thirty six per cent. They further
more add that Mr.. Lincoln declined to
pay that rate and forthwith returned to
Washington and proceeded at once to
issue the greenbacks. DR.. Jennings says
that Mr.. Lincoln paid Wall Street SO
per cent interest for money until he
got tired of it."
1t is, perhaps, unnecessary to say that
such allegations are absolutely false.
The intent, of course, is opponent and
is tor the sole purpose OF c.eating a
prejudice against banks, capitalists,
and Wall street. History and facts are
deliberately falsefied with that end in
view.
now propose to state the facts, and
challenge any silver advocate to sue
cessfully refute them. The facts which
l shall give are all to be found in "Bolles
Financial History OF the United States
1861 to 1885, work OF high repute.
which is before me, and which can be
examined by any person taking the
trouble or time to do so.
The historian, above named, says:
Hardly had congress adjourned, when
Secretary Chase mot Mr.. Lincoln as
alleged by the "Popocrats'0 started tor
New York to borrow money! On the
evening OF the 9th of August (1S61) a
meeting was held at the house Of Mr..
John ]. Cisco, the United States Trea-
surer, (who, by the way, was a demo-
crat continued in Office by Mr.. Lincoln
bv reason of his high services and his
ability. At the meeting were assembled
beside Mr.. Chase, bankers and other
prominent men OF New York. Mr.. Coe,
tae President of the American Esexchan
Bank, suggested the practicability OF
organizing the banks into an efficient
aud inseparable body. for the purpose
OF advancing he capital OF the country
on government bonds in large amounts,
aud through their clearing business
facilities and other well known expedi-
eats to distribute them in smaller sums
among the people. This suggestion was
heartily secured. and, by reqaest of the
secretary, was presented to the repre-
sentatives of q considerable number 81
banks who assembled on the folio wing
day. On that occasion a committee OF
ten was appointed to develop
The suggestion into a plan for rendering
assistance to the government. On the
18th the committee reported. Thirty
niue ot the New York banks were repre-
sented; the Philadelphia banks wer,
represented by Messrs. Mercer and
Patterson; and Mr. Gray, Of Boston
represented those of that city. 9Th,
report was cordially accepted ane
adopted by the banks in New York
while those of Boston and Philedelpnia,
through their representatives" a,
zealously and cordially united in tn.
organization. The corporation of rh,
banks OF the West. through greatly de-
sired, it was found impract,cable to secur'
The following plan was adopted
There should be an immediate issue BY
the government Of $50. 900. 900 Of trea
sury notes, running tor three Years. ant
bearing interest from August 18th, al
7;30 per cent (not 20 CIR SO per cent.
The banks OF New York, Boston ant
Philadelphia were to unite in taking
his amount at par, with the priyileg,
u taking $50. O0o, 900 more on the Is
Of October. and similar amount tw,
months later, unless the same should b.
previously subscribed as a nationa
Dan. The Secretary was to negotiat,
40 other government stocks, bonds OF
treasury-notes; except these payable or
dimond. and the Oregon war loar
which had been recently authorized
and was less than $4,000 900. Negoti
atoms in Europe. however, were not re
stricted by this argument with tn,
banks.
An appeal was to be made by tn.
government to the people to subscrib>
for these notes and the banks were ia
subscribe in proportions to sheir capital
No bank. however, could subscribe for
more than one-fifte of the amount. The
agreement also specified that as the
es.hs~-:-tiOoc ic~ $l. 49,.