The Montgomery advertiser., 1906-03-25

compensation. 1t was put in blank envelope and charged to expenses. Ed ward A. Donnelly, cashier of the Mar ket National (Mayor Julius Fleisch- mann, president), said that what that bank paid was put up in currency and when the parcel was ready the treas urer's office was notified and somebody came over and got It. The bank charged it to expenses And so they testified, banker after banker; they all, even Cox's own trust company. paid bribes equivalent to 1-2 per cent interest on the county deposits.
 Now if those Cincinnati bankers were willing to give up not only their good money" but their good names to get a piece of this county money graft" why wouldn't big national bankers, even in ANew York, be willing to pay something.
 whats the difference?" I asked MT. Shaw. And upon his refusal to talk for publication, an official close to the Secretary replied:
 "Ill tell you what the difference is: the banks have to put up United States bonds equal at par to the amount of the deposits they receive of United States treasury funds"
 This is a difference. It makes the transaction more of a loan than a de- pOElls d lOdn Ou Al security. put lIo ' doesn't dispose of the question:. If that banker borrowed money from an- other on United States bonds as se- curity, he would expect to pay inter- est and he wouldn't get par on his loan either He might get close to par on United States bonds but the Hon. Leslie M. Shaw is leading United States moneys on other security also "a departure which may have evil consequences under some future Sec retaFy of the Treasury. But that's an- other subject, and this Secretary of the Treasury-no, forgot the red tape "a high authority of the Treasury De- pertinent, said that the requirement. of a deposit of bonds to offset deposits of money left the poor bankers so mar row a margin of profit that some of them couldn't make anything out of public moneys. And he told of a Southern banker who actually lost money: but the Southern banker had to buy his United States bonds, whereas the bankers of New York and other large cities often borrow the United States bonds they put up.
 And the big New York bankers seek United States deposits, seek them, too, with an eagerness that suggests no doubt as to their profits. This is spread out in a certain classic Letter from secretary or the lIcdSuFE tLy- man J. Gage), relating to "the trans action of the Treasury Department with certain banks The terms of the sale of the Old Custom House in New York to the City National Bank started the inquiry, and when Congress pressed for more and more information about that sale. and finally called for all corre- spondence, Secretary Gage is said to have "got mad" and ordered every thing to be turned over. At least this Is the legend, and certainly whole lot of letters were published which did not bear on the Custom House, among them the City Banks constant appeals for money, more money, ever more money out of the United States Treasury. And inc letters of the Secretary of the Treasury in reply show how the City Bank got more money and ever more money.
 Now there was no bribery. no gratu- ities, or anything of that sort, of course. One reason why was interested in this old document was that it showed the differen-e between business done with the National Government and business" done with a city govern ment like Cincinnati which all the