The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-13
SATURDAY. JANUARY 1s, 1900.
The whi,cy..shing of MIR. Gage.

The whitcwashing of Mr.. Gage.
In the New York Evening Pest" OF
Thursday, the Hon. Horace White-wha
has become sole editor of that journal
through the retirement Of Mr.. E. L. God
kin-rushes to the defence of his friend,
Secretary Gage, with all the yisor OF earlier
DAYS. when the formers financial ability
and exalted journalistic instincts were so
much in evidence.
On the present occasion, Mr.. Whites ef-
fort may be called laborious one. and We
are unable to congratulate Mr.. Gage upon
its probable results in influencing public
opinion. On the contrary, if it was our de-
sire to save the Secretary from the I'M
happy consequences Of his errors and ad-
missions. we should hasten to advise him
that almost any consideration would be
reasonable one to part with in return for a
surcease Of such championship.
MIR. White begins his argument with the
statement that the Gage answer 10 the en-
auiries of Congress lis so clear and COM
plete that little needs TO be said in addi-
ton" Continuing. he observes that the
yellow press, which started the cry for an
investigation. viii. Of course. continue IL
till some new sensation is discovered.
ANY exposure OF public irregularity which
happened to hit in directions interesting
10 the Evening Post" writer would, of
course. appear yellow in his eyes. but
lie viii hardly succeed in convincing the
country that even II the original allega-
tons and proofs in the Standard Oil Bank
and custom house case did happen to he
first printed in the New York journal
and the New York World" that they
arc. therefore, unworthy OF attention.
Neither Mr.. Gage nor his apologists have
answered them. and the particular one IN
der discussion. least Of ALL
In order net to waste time and patience
over the attempts of the Hon. Horace
White to meet the charges against his
client by lodging completely around them.
II is only necessary to summarize his ar
gument in few words. l. is that the
Secretary was compelled 10 descend TO the
Level of Congressional intelligence. and to
make his response kind of kindergarten
lecture. II had been assumed that he did
wrong in allowing the free use of Govern
ment funds TO banks for their convenience
and profit, and SO on. We quote:
1T was therefore. proper and necessary for
INN 70 explain that law Of Congress was
passed IN 1894 and is still in force which author
lzes MN 10 designate certain national hanks .
ueposi tories OF public Inon.y. This il not the
same thing declaring an national hanks de-
pcsit0tiss. A. some banks are better fitted Tor
tins purpose than Others. by virtue Of their situ.
aiich, their capital. the reputation Of their Of
hcels. and - forth. discretion was reposed in
ne Secretary 10 choose ont Of the whole number
81 banls, snch as be deemed best qualified and
aa2pifd To- carry out the purpu-e- which Congress
Lad IN view. such discretion must l.. lodged
s0fneWherf. and there IS no better mace Tor II
than IN tic oiice II the Se,retarr II hsppens
~ Ills lunctufe that the SecfetaTv j. hifn-eIf
one OF Tie best qualified persons IN the United
State- 20 cNcrrise that discretion. bg reason of
ms cApei1eHce and responsibility banker
The Hon. Horace White seems to forget
that this act Of 1864 was cited by Mr.. Gage
not only authority for his free money
counter practices. but as actually appli-
cable to the yet unexplained juge1erv Of
the custom house transaction Relatively
TO its proper object and incoming. there
has never been the slightest doubt OK
pressed or implied. In or outside Of Con-
gress. The Secretary OF the Treasury IN
quesuonably has the right TO designate
certain banks, as repositories Of public
money. There is no doubt that this right
has been construed TO mean that he may
at his discretion, lend millions. without
interest. to institutions with which he n az
be in sentimental or other connection. for
the purpose of their loaning the same
money to the public at high interest and
that, hence. it is right to give them as
a gratuify such valuable use and usufruct
Of public funds. Thus. in the case Of the /
Standard Oil Bank, II is admitted that on
June 3. 1897, the vice president Of that
institution, wrote to Mr.. Gage asking for
Government favors on the ground of past
campaign services. and said: IF you will /
take pains to look at our list Of directors 1
you viii see that we also have very great 4
political claims In view OF what was done /
during the canvass last year" Less than /
a month before this letter was written. 1
the Government deposits in the Standard 4
on Bank aggregated only 5000 000 Later. I
in the same year, they amounted TO
S24.o0O.O00. On July IL. 1888. the Govern
ment cash balance In the concern, without
interest. was Sl9.579. 900. II also received
as a deposit-in June 1s9s-s1i. 0O0, 600 Of
the 5000 600 600 war loan. On January Z.
1899 the Standard Oh Bank had the free
use of S20.565. 900 of Government money,
and on September 20. 1899, the balance
had increased to So, 600 900 In other
words, calculating the changes, this
favored depository had the use, with
out interest, OF an average balance of
$4,000. 000 for six months, or the equivalent
OF cash gift Of at least $500 600 This
suggestive fact illustrates to US the strong
reasons Wall Street financiers have for de-
claring that the Government should for
ever keep out of the banking business
and leave it to private enterprise-onIy
furnishing capital without charge to the
private enterprisers.
II the act IF 1864, or any other law. con-
fers the power upon Seeretary OF the
Treasury to assist business associates or
political friends in such ways. ii ought to