Evening journal., 1913-07-10
NEW NEWS OF YESTERDAY.
Secretary WINDOWS Bril-
liant Financial Scheme
By Holland

On several occasions have been
told by New York bankers that in
their opinion the finest exclusively
original financial inspiration was one
which has made the name of VIII
liam Window, who was secretary OF
the treasury in General Garfelds ad-
minlstration, traditional in that de-
partment
The late Frederick D Tappen. one
of the most influential Of Now York
bankers. and the late George f. Coe.
who was frequently in consultation.
with Samuel r Chase when Governor
Chase was secretary of the treasury
under Lincoln both told me that thel
manner IN which Secretary. Windoml
handled the refunding OF the goyern'
ment debt which became due July |.
1891 was probably as brilliant
piece of executive or administrative
work as was ever achieved by any
secretary of the treasury certainly
since Albert Gallatin held the Office.
I asked Mr. Tappan. one day. II he
was sure that the exclusive credit
fer this transaction belonged to Sec
retary Window
81 don't wonder you ask that ques-
ton. Mr.. Tappan replied. "It has
been asked by many others. There
was always a suspicion that Win
dom got the idea of the transaction
from Senator John Sherman. Sher-
man. however. told me that the
plan was exclusively that Of Window
himself said to Sherman that II was
Al. AIn..
Of the fact that Window. when Unitoe
States Senator from minnesota. had
not attracted any attention az 4
iDancier.
Senator Sherman told me that. al
though the public had little knowI-
edge of Senator WINDOWS abilities
as a financier. yet there vas no mem
Der of the Senate who did not fully
appreciate them. Garfield knew Of il,
Sherman said. and when Sherman
urged Garfield to appoint Window
secretary of the treasury the Presto
dent, il is alleged said that therA
were certain p0ltical reasons whA
he wanted Senator Allison. OF Iowa.
in his cabinet AS secretary OF the
treasury. bur that If Allison could
not be induced To accept the treasury
portfolio then the offer OF that port
folio would be made to Window
Sherman told me that II he knew
when he retired from the treasurH
department. on March 4. 1881. that
Window would have a great respOn-
sibility to meet. since there were
about two hundred million of per
cent government bonds which Woulc
be due lnly / Congress had made
an attempt az Legislation by which
these bonds could be retired Al
reduced rate ni Interest hui the ni-
tempt had heen u failure Therefore
Sherman hao to transfcre this prob
lem TO his successor
Windows actually worked ont the
problem withour consultation with
anybody. although after he had com
pletcd his plans he did speak OF
them TO Sherman The only advice
he sought was from Attorney Gen
eral Wayne MacVeagh 80 that he
might know-trhether the law per
mitted him 10 use discretionary
power. When he was told by Tho at
torney- general that he had such. dis
cretion Window suddenly announced
that he would pay off the entire issue
of two hundred million on or hefore
| July ]. but that if any holder Of these
bonds was willing to have The gov
ernmeut stamp upon them tho state
ment that they had been extended At
! 1-2 per cent interest then the treas
ury department would extend them
1T seemed" continued Mr.. Tan
pen, TO be dangerous experiment,
but it WAS .magniicently successful.
| OF the entire issue all hun about
twenty-four million was extended AT
! 10 per cent This was done under
the discretion OF the secretary, and II
will become tradition in the history
Of American governmental finance ~
one of tho greatest achievements ol
a secretary Of the treasury. II will
put William WINDOWS name high NJ
in the list of the worlds great fnan-
ciers.
Copyright. 1918. by E ! Edwards
all rights reserved).
Tomorrow Mr. Edwards will tel
How General Mahoney Outwittec
Senator Ben Hill"