New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-11
THE BANK DEPOSITS.
CAN THE PRESIDENTS WORDS AMI
ACTS BE HARMONIzED?-AC CORE
sPONDENT WHO ovERLOoKs
SOMETHING.

Sir. 7 heartily sympathIze with the views vas,
EXPRESS on the inconsistency OF statesmen IN
YOUR article to-day maintaining the Presidents
right to change his mind about the wisdom OF
deposfting internal revenue receipts in bankA
T should be the last person &C think IN Of a
public officer for learning things and having
the courage 70 act up to his lights But
cannot see how your explanation that he may
have learned by experience. and may find il
wise to take course in office which he regarded
as dangerous under different conditions quits
accounts for this particular inconsistency. Ths
Presidents ch1nge is not adaptation %
policy TO new circumstances. but total reversal
Of principles an absolute denial Of facts which
twelve years ago he held to be indisputably
true. 1 grant you mems opinions may change
and ought to change with the years, but matters
Of fact. matters Of law. cannot change so thai
something is true one minute and false another.
TO suit statesman's necessities
When. in 1888 Mr.. Mckinley opposed a BIZ
authorizing the Secretary OF the Treasury 70
buv bonds with the surplus. on the ground that
he possessed ample authority by specific war-
rant of already existing law, he blamed Presi-
dent Cleveland, as you admit, for dePositing the
surplus In banks instead OF buying bonds. He
then made statements which am unable 70 rec
oncile with his recent action on any theory ot
larger wisdom In his speech OF February %.
1888 he quoted approvfngly Secretary Folgers
renort Of December 3. 1888. which IN discussing
the question Of using the surplus said
The only authority possessed by the Treasury.
whereby II can restore 70 i Tat zivs1 ~ Us ,
Gcreiary, nv the acr OF March 1881. BY which ne
may at any o te 2PEy IS to the pu
chase or redemption OF United States bonds
Mr.. Mckinley also called TO his support secrs-
tarv Fairchild's report OF December. 1887, de-
claring:
Now there is way under existing law 70 put
which comes into the Treasury. except u De that
OF a clause in appropriation act o. lssl autnor-
izing the Secretary Of the treasury 10 pu'cn@SS
bonds.
Thus II appears that in 1888 Mr.. Mckinley
not only questioned the wisdom OF bank depos-
it's. but was certain that the Secretary had no
legal power 10 come TO the rescue OF the money
market except by buying bonds That IS a ques-
ton OF absolute fact. independent OF changed
point of view on the Presidents part
Having shown to his own satisfaction Presi-
dent CIeveland's power to buy bonds and to do
nothing else, Mr.. Mckinley said;
When we adjourned left him fun power %
pay it Ghe surplus) out and wish some -rlf4o o.
do it i'm the only straightforward, logical and ouS
Government and saving the interest charge. which
rests so heavily The people 1tsl5tu ~ u'li-s
PretelS 70 use I - - savs 70 tbe banks IF YOU
will get bonds enough and bring them 70 ne
Treasury viii issue 10 you on lhe per per cer t
on every dollar Az per cents you deposit and thus
put the money in circulation. And Lne% diG II
Nearly s5s.0Oo000, as understand OF Ihe surplus
money that ought TO be in the Treasury TO-DAY
the SeSfetsFy f hayng nous out ~ among the banks
held by them, they giving TO the eove e
getting il without interest. They have the surplus
money in the Treasury in their own han S ana
When. if the Administration had used the So
OJJGO0 and bought corresponding amount OF bonds
with that sum these bonds Wolld nave oS5l -.
| been stopped.
That was not the talk Of man ignorant OF
the subject, speaking hastily. and so fairly en-
titled to be inconsistent. 1t was the careful ex-
position of the evils Of a practice which the
. President now INDUCES in. and the most hostile
Bryanite among his critics cannot describe his
present course more severely to its discredir
/ than Mr.. Mckinley described it in the sentences
1 have quoted. Indeed the Democratic papers
are using almost his words to-day
After making this speech Mr. Mckinley went
to the National Convention OF 1888 and was
chairman of the committee that drafted the
pIatform which denounced the ''loaning OF the
Governments money without interest to pet
/ banks" He must be familiar with Secretary
Windows convincing exposition OF the dangers
of the loaning policy. which you reprinted q
few DAYS ago Yet now he does what he not
only blamed President Cleveland for doing but
what he helped commit the Republican party
against with all the assurance Of leader who
knew his ground and was standing on eternal
and immOVable principle This seems 70 me a
Complete sornersauIt. prompted by con-
vanience and not justified by the least appear
enre Of new conviction. 1t goes back Squarely
on Republican doctrine and Republican policy.
7 wish with Mr.. Mckinley, that some friend
Of the Administration would explain why he is
not disposing of the surplus in the only straight
forward logical and businesslike way
Washington, D. C, Jan. - 1SOO b X
lin this same speech OF Mr.. McKinley's our
correspondent would have found II he had read
a little further. this sentence: His way might
have been justified If there had been no other
means Of putting the surplus money in circula-
ton" Does not that furnish a key TO the Presi-
dents present course? In 1888 everybody was
agreed that the surplus was far beyond the Gov
ernment's needs and should be reduced. and Mr..
Mckinley said that when the Secretary could
buy bonds he should do At present, with
the problems of expansion before US. IS it not
wise for the President to keep the surplus as
resource in emergency? II he does not think IL
best to part with the money beyond recall. then
his choice is narrowed TO keeping 1t in the Treas
ury withdrawn from circulation, depOsiting II
in banks. Mr. McKinley's criticism was not 50
much that current receipts were put in bank
when required by commerce. but that with
better method at his command for keeping IN
circulation sums which could not possibly be
needed for expenses Mr.. Cleveland did not