The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-01-21
SCANDAL INVOLVED
I'm Dcpositing the Internal Revenues
In the Standard OIL Hanks.

I'm Dcpositing the Internal Revenues
In the Standard OIL hanks.
New York World
Through the secretary of the treasury
Mr.. Mckinley offers an explanation OF his
secret contract with the National City
bank under which that bank and It's back
ers become the farmers OF tho internal
revenue $500, 600 900 a year
Mr.. Gage begins by explaining that Mr.
McESinley's presence IN Wall street with
the United States treasury under his arm
IS due to THE stringency of the money
market" as proved By the recent panic"
But as Walker Hin the eminent prcsi-
dent of the American Bankers associa-
tion, has pointed out, and as the facts OF
the panic clearly show, there was no
real panic mo commercial panic" but
merely a SPECTATORS or gamblers pam
&C." And that distinguished authority on
finance, the George Roberts who IS di-
rector OF the mint--he must not be con-
fused with Mr.. Platts Ellis Roberts, the
United states treasurer--points out this
morning that not only Is It impossible 10
relieve stringency caused by excessive
gambing, but also II Is positively danger
Gus 20 the real commercial interests TO
try to do so Mr. Roberts--s good repub-
liean, but also a thoroughly conscientious
and well-intormed man demonstrates
that Mr. Mckinley has been acting like
a man. who, called on TO put out fire, re-
spends by emptying the kerosene can upon
it,
Mr.. Mckinley further pleads through
Mr.. Gage that II is necessary for him to
select one bank TO be the distributor OF
the governments vast free deposit among
the depository banks; that We're the treas
ury department TO try 10 make an equablo
distribution II would make havoc OF
treasury bookkeeping
But why this vast free deposit OF the
peoples money? Why gather IN millions
I from the people and lend them without
I interest to certain favored persons, who
promptly lend them ont at interest, often
getting the enormous Interest that at
/ laches TO "cali' loans? When many
banks and trust companies cheerfully pay
10 2ia and 3 per cent for deposits al times
when money Is "a drug In The market,
i why give the free use OF money raised
fby taxing the people TO gamblers ami
4 abettors of gambling and others Whose
! operations are equally detrimental TO the
I health OF trade and commerce? Is there
\ no more valid reason than that the treas
extra work2
j Mr. Mckinley further explains that the
National City bank got the appointment
Of custodian Of the internal revenues be-
cause it had made tho largest deposits Of
bonds
\ How did this bank come to be ready
and Whiting when MIR. Mckinley sudden
" decided that he wished TO favor some
worthy, deserving bank with This little
Christmas gin How did II happen that
the only bank IN q position to receive "
was the Same bank that got custom house
site "by private arrangement for $l,i0p
600 less than its value that got the hand
Isf - M . 1A a. lua -.
! Spain for his Philippine war. that NUM-
hers among it's directors and stockholders
so many OF the heaviest contributors TO
Mr.. MrKinleys campaign fund Of 1885,
f. Mr. Mckinley goes on to insist through
Mr.. Gage that the National City bank
deserves commentator rather than de-
nunciston," because Il has undertaken
a heavy and pretty thankless task"
This SURPRISES Mr. Cleyeland's COM
plsints OF those who dared to criticise
patriots who bought government bonds
al l04 ia from him by eeeret arrange
ment and sold them In the open market
for 80. Mr. McBiniey's friends under
take 10 receive all the taxes collected
under the Internal revenue laws and %
use the money until II is distributed or
turned over to the treasury. And for
this patriotism In accepting the free use
OF $500. 000. con a year for their high rate
speculative loan business MI. Mckinley
calls upon the country to applaud them,
and incidentally, OF course, TO spplaud
him for being sble to commend such un-
selfish devotion.
Mr. Mckinley did not give through
Mr.. Gage or any one else any explanation
of the secrecy which Is 70 attend the
lcarrying out OF that part Of the contract
relating 10 the distribution. Instead
there came from Washington last night
promises 70 give out facts az 10 the aliot-
lment Of these free loans at the public
expense as soon 40 the details are con-
pleted. This is quite change from
Nanderlip's curt no good would result
from publicity and Ellis Roherts's ''nri-
waite and confidential" Bur Il does moi
touch the vital point--the real secret.
That point is
WHY are all the internal revenue coll
leettons OF the United STATES 10 tiOw
through the National City bank?
The scandal IS the same. whether this
STANDARD oil bank keeps them only on'
tday, or longer. whether 1t distributes
them among the favored banks or jugglei
/, them among It's allied ana correspondent
! banks In New York ana other cities. Tn,
, Standard OH bank. the domlnaior OF ih'
speculative money markets. has beer
: made By Mr. Mckinley a toll-keeper a
the doors OF the treasury to levy upor
every dollar OF more than one-half o.
all the money collected as taxes,