Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1900-02-14
M'KINLEY VS.. M'KINLEY.
he Is Now Doing That for Which He
Once Denounced President
Cleveland.

OAce denounced President
Cleveland.
The government of the United States
has at the present time about $780,
100000 on deposit with the national
banks of the country upon which it
receives no interest. This money is de-
posted in the banks without any in
terest charge, the banks furnishing
government bonds as security. The
banks collect interest upon their bonds
as usual and loan the money to specu-
lators at rates varying from five to
ten per cent. interest.
1t is amusing to note that a consid-
cradle number of republican admins
tratlon organs are criticising the con-
duct of Secretary Gage, in the mat
ter OF depositing public funds, entire
~ ignorant of the fact that their criti-
cism of him is condemnation of Presi-
dent Mckinley. In 1883 President Nc
Klnley, then a member of congress,
condemned in unmeasured terms the
policy of loaning the government
money without interest to pet banks
instead of using the surplus to reduce
the public debt. 1t will be remembered
that when President Cleveland was
elected president in 1884 there was a
large surplus in the treasury, and that
none OF the outstanding bonds of the
government were due and payable, and
that acting under the provisions of
law attached to an appropriation bill
IN 1881 the secretary of the treasury
purchased considerable portion of the
public debt at the market price as
means of relieving the treasury of its
surplus. This process, however, result
ed in the government becoming bid
der for its own bonds against the mar.
ket, thus enhancing the price. In view
OF this fact the secretary of the treas
ury asked congress for more explicit
authority to act in the premises. By
consulting the Congressional Record of
the Fiftieth congress, February 20.
1883, we find the following in a speech
made upon the floor of the house by
Congressman William Mckinley:
When we adjourned we left him full OF
power to pay it Ohe surplus) out, and
would explain why he did not do it in the
only straightforward, logical, business
like Way-that is, by paying the debts OF
the government and saving the interest
charge, which rests so heavily on the PEG.
pie. Instead of doing that, the admins
tration prefers another way. It prefers tc
use the banks as means of putting it in
circulation.
Mr.. Mckinley then proceeded to hold
this bank gift policy up to public male
diction:
Nearly $59,0O0,000, as understand, of the
surplus money that ought to be in the
treasury to-day, the secretary having re-
fused to pay it out to government credit
ors, is now out among the banks, held by
them, they giving to the government bonds
as security for the deposit; and they are
getting it without interest. They have the
surplus money Of the treasury in their own
hands, and they collect the accruing in
terest on the government bonds, which they
have deposited as security, when, if the
administration had used the $50 O00,0 coo and
bought a corresponding amount of bonds
with that sum, those bonds would have
been Cancelled, and the interest on thafsum
would have been stopped. And charge
here to-day that the president of the
United States and his administration are
solely responsible for whatever congeSted
condition we have in the treasury, and
whatever alarm prevails about the finances
of the country. Every dollar of it would
have paid a dollar of the government debts
if the secretary had wisely exercised the
discretion given him by law. What does
man 90 who has got surplus balance in
ing interest? He calls in the evidences OF
those debts and pays them off with his
surplus deposit. That is what a business
man would have done and that is what
business administration would have done:
and we would have had $5O,0G0,0O0 less OF
interest,bearing bonds in circulation to-
day if the president had followed the way
blazed for him by the republican party.
When the republican national con.
vention assembled in the year 1883,
President Mckinley, as chairman of the
committee on resolutions, prepared and
had inserted in the platform of the
party resolution denouncing "the
democratic policy of loaning the gov
; eminent money without interest to pet
; banks
: It will be noticed that President Nc
Kinley charged the responsibility for
Secretary Fairchild's conduct upon
President Cleveland. Therefore he will
not now undertake to shirk response
biTity for the action of his clerk, Sec
rotary Gage.
!. Mr.. Cleveland's secretary of the treas
ury deposited $59,oOO,Oo0 in the banks
without interest rather than buy bonds
at rising and extortionate premium,
but Mr.. McKinley's secretary of the
treasury has deposited $12o,000,0OO in
the banks without interest instead of
buying bonds, as President Mckinley
insisted should have been done by Mr..
Cleveland instead of depositing the
money of the government in "pet
banks"
Thus it will be seen that Mr.. McKin.
ley's criticism of President Cleveland
exastly fits his own case.-National
Wafchman