Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1902-02-08
SATURDAY, FEBRUARY 8, 1902.
A NEEDED REFORM.

The first published utterance OF MI
Secretary Shaw, after his advent into
the Treasury department Is not a lit
tie significant. 1t Is in the shape OF Il
letter to Representative Sulzer, of New
York. who has n bill pending in Con
gress compelling the department TO
deposit its surplus funds, not needed
for current use, in National banks, at
interest.
The new Secretary in his letter says:
'Tf the surplus money in excess of
fifty millions working capital had
been deposited in clearinghouse cities
In proportion to the relative capital
of each bank therein, with no other
security than "a prior lien upon the
banks assets, the government would
have lost nothing and if the govern
ment had realized 2 per cent upon
the funds so deposited it would have
received $3200O,O0O. Aided in this
way, the banks referred to would have
been able to increase credit accommo
dations to the people in the sum of
$2O0O0O,000"
When we remember that the practice
has been to deposit with the Standard
Oil bank in New York, without any
interest, the meaning Of this state
ment becomes interesting indeed. The
real facts leading to this revelation
came out when another bank, which
TO get some of the deposits, began to
dun for 1t, and reminded the depart
ment of the work 1t had done In the
election of 1896.
The releasing Of Credit accommodn-
tions TO the people in the sum of $500.
100000" would have saved hundreds
of men from financial shipwreck and
their families from beggary, If 1t had
been done in the times when such adj
ditions We're much more important
than they are now, and then, as now,
IL would have been an act of simple
justice TO the people. 1t was their
money; the government was entitled
to interest on it, but never got it; the
people should have had 1t dlffused into
the channels of trade, and would thus
have come to their own again. But
no: The pet bank,-already gorged
with money, got II, used 1t, devoted
At TO its own purposes, paid nothing for
It, Such Is the way In which the in
terests of the public have been served
by Gage and his confedcrates. Every
thing for the few who do not need
help; nothing for the many who In
times OF distress are pcrishing for
want of II, and the government being
beaten and away behind the game,
every time. 1t is OF n piece with MIR.
ouEt . huit VI lllc blu SuD- treasury
building In New York to this same
fayorite bank of his The bank got
the property at substantially its own
valuation; on the preteXt that the
government was in no present need of
the money only nominal down pay
ment was required, $50, ,0OO-nnd the
rest of $30O0,00O the bank was allow
cd to kecp-wlthout interest, of
course. But the government kept ON
occupying the building, and paid the
bank an enormous rent for its use,
Notwithstanding the fact OF lts with.
holding the bulk Of the purchase price,
without paying interest on it. At the
instance of the bank, the deed of the
property was not delivered to It, and
II turned out on Congressional ln
yestigatlon that on this account, as
the title still stood in the govern
ment, the latter was all the while pay
ing taxes upon II,
The Sulzer bill ought to pass.