The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-05
GAGE,s BAD BLUNDER.
fChleago Trlhnns Rem

Inc secretary OF the treasury mas SIdLeu
| at length his reasons for selecting the
| National City, bank of New York as the
place OF first deposit Of the internal reve-
nue. receipts of the government which are
| to be deposited in banks up to the amount
Of s30,o000o0 Undoubtedly Mr.. Gage has
stated reasons which he believes justify
him fully in taking the action he has. No
doubt he is convinced that the insernal
revenue receipts. amounting 10 nearly
81 600. 600 a Gay-only one-third Of which
are collected east Of the Alleghanies and
north of the PotOmac-should be sent first
to one bank in the city of New york and
then distributed by 1t in the coarse Of
time among the various banks scattered
throughout the United States which may
desire to deposit bones and become enti-
tied TO share in the distribution.
But reasons which sem valid to the
secretary OF the treasury may not seem
50 either to the public at large or to the
banks which are not intimately connected
with that one which is becoming known
as the secretary's bank. namely, the Ma
tional City bank of New York.
The Tribune does not indulge in rash or
hasty criticism of the secretary's action,
nor does it mean in any way to imDugn
ion that both the prOpriety and the ex-
pedieney Of his order viii be so sharply
challenged throughout the country that it
viii be found necessary to undo promptly
what has been done foolishly. lest the
enemies of the administration may have
that issue which they have been indus
triously seeking for.
It will be difficult to convince the public
=
one bank, for purposes of distribution
the daily internal revenue collections Of
this great country 1t will be impossible
to convince the people. and especially the
people of the west, that it viii not be
fairer to divide the United States into
several districts-tO have the Pacific coast
receipts put in San Francisco banks.
those Of the middle west in Chicago. Gin
cinnat and St Louis banks, those of the
southwest in New Orleans banks, and
those of New England and New York in
Boston and New York institutions. There
are no difficulties in the way unless in
some one Of these districts no bank can
be found which is willing to give the re-
quired security for deposits.
If one bank must be selected as the
place of first deposit, public sentiment
will be adverse to the choice of any New
York bank. for that will look as If the
intention is to draw from all parts of the
United States public money. which can be
loaned at per cent or more by the insti-
tuition holding it to those Wall street
operators who are complaining Of the
''stringency of the money market" A
policy of governmental interference in
financial affairs for the benefit of stock
market spectators is not viewed with
favor by The public. 1t does not wish to
see the general government playing The
part of the god in the machine to re-
lieve distressed brokers. 1t prefers that
the government should remain neutral
This preference is shared by the Tribune
1t believes it neither right nor expedient
for the government to attempt to bolster
up a sagging stock market by exhibiting
gross favoritism to a particular bank. 1t
is too big a contract. The government
may be harmed more than the stock mar
ket is helped.
II it were necessary, as it is not. to
select some New York bank as the place
Of first deDosit- the National City bank
is the one of all others which cautious
secretary Of the treasury who had his
hand on the public pulse would not have
chosen. 1t is not a popular bank even
among bankers 1t is the Standard Oil
bank, and Americans have no burning
love for the Standard Oil company or the
men at the head Of it. Had the secretary
of the treasury consulted any outsiders
before he acted they would have told him
than not all things which are lawful unto
him are exoedient and that one Of the
most inexpedient things ne could do was
to favor the Rockefeller bank. The treas
ury should have no Dets-least Of all a
pet bank Such an institution is a stencil
in the nostrils Of the people.
1t is unfortunate that Mr.. Gage never
consults the public. He is by long odds
too much pleased with himself and too
confident that he is a superior person.
He makes up his mind as to what ought
to be done and then proceeds with the
best Of motives to pursue the most mex
pedient course. He finds out too late, as
he viii find out in this case, that someone
has Numbered am the someone" is often
himself. The charge Of the light brigade
was due to the important fact, previously
overlooked. that someone had blum
dered." In this case someone has blum
dere1 and Mr. Gage will soon know who
II IS. The Tribune is confident that the
error Of judgment will not escape the
notice of Mr.. Cages immediate superior
in the government. The mistake he has
made win be promptly corrected or we
have imperfectly understood the character
and disposition Of President Mckinley.
What has happened has settled one
point. That is that it viii not do to give
up the sub-treasury. system. The minute
that IS done there will be "fav0rite"
banks or, If not, it will be impossible to
convince the public that there are not
favorte banks. Behold what a disturb
ance this partial, momentary departure
from the sub-treasury plan is occasioning;
and with what justice, too! If Mr.. Gage
imagines that his new departure for the
benefit of one favored bank will be
viewed with favor by bankers generally,
either east or west, he may obtain whole
some correction of his opinions by adj
dressing a circular letter on the subject
in confidence to number of his friends
in the bankers association.
A Vigorous Threat.
There was serious trouble among a set