Evening journal., 1914-09-30
New News Of Yesterday
Why Gen. Dix Was Made
Secretary of the Treasury
By Holland.

The late lie Grand B. Cannon was
one of the wealthy citizens Of New
York who became prominently idenu-
fed with the organization of volun-
teer regiments at the outbreak Of the
civil war. He was associated with
Gen. John Z. Wool, who, early in
1861. was placed in command of the
military district of which New York
City was the center. After Gen.
Wool was transferred TO Fortress
Monroe, Col. Cannon, as a member OF
his stan, served with him at that
point.
In his later years Col. Cannon was
fond of narrating some of his ex-
periences in civil war days and In the
period just prior to the outbreak of
hostilities. He was one Of the
founders of the Union League Club
in New York, and he frequently
gathered around him members Of the
club, to whom he narrated, with
charming simplicity and yet dignity
Of manner and with a singulaTly ap-
propriate narrative style, some Of the
anecdotes associated with his earlier
experiences.
Upon the walls OF the Union League
Club Col. Cannon had caused to be
placed certain memorials OF Gen.
John A. Dix, and one day while chat
ting with his friends his eye hap
pened to fall upon one of these
quaint emblazonries, and he said:
Il suppose there are very few per-
sons who know how and why Gen.
Dix became Secretary of the Treas
ury near the close Of the administra-
tion Of President Buchanan. At the
time Gen. Dix became Secretary Of
the Treasury the general presuption
was that It was because OF his fine
record as a soldier and mis- vigorous
declaration in favor of maintaining
the Union at any cost
But the real reason for his seIec-
ton was different from that ascribed
by the public. In the early part
OF the last year of President Buchan-
ans administration Philip + Thomas,
who was Secretary Of the Treasury,
went from Washington to New York
to see II he could secure from the
New York bankers a loan OF S3,O00,-
600 for the Federal government.
Thomas was ready to make any
terms. He said to the bankers when
they met in conference that the
Treasury Department was peIilously
near bankruptcy and that S3,0OO,OOO
was imperatively needed
"At first the bankers declined to
make the loan, but a committee OF
citizens, Of whom ! was one, visited
the bankers and said that, as mat
ter Of self-interest they ought to
make the loan, because if the credit
Of the government should become
greatly impaired, private credit also
would soon be injured.
After much hesitation the banks
agreed to loan the government $3,-
100000, but upon the express condi-
ton that all Of this money should be
used in payment of the current ex-
penses of the government.
mot long after the Treasury De-
partment received the money the
greater part Of II was transferred to
/ New Orleans. New York bankers
were very indignant They protest
ed to President Buchanan that this
was a violation Of the agreement and
declared that the New York banks
would decline again to lend money
to the government
buchanan asked whether II there
were a change in the Treasury De-
partment the bankers would be more
favorably disposed, and intimated that
he might appoint Gen. Dix Secretary
of the Treasury. II was clear to
him that the appointment of Dix as
Secretary of the Treasury would be
so satisfactory to the New York
bankers that they would be ready to
make another loan to the govern
ment.
in few days Thomas resigned as
Secretary Of the Treasury. Gen. Dix
was appointed, and he had no diff
Guilty in securing a considerable loan
from the New York bankers on much
more favorable terms for the govern
ment than Thomas was compelled to
assent before he secured his loan OF
$3.O0O,000.
That is the real reason why John
A. Dix became Secretary Of the
Treasury late in the administration of
President Buchanan"
copyright, 1914, by E. J. Edwards.
All rights reservod.)
Tomorrow Mr. Edwards will tell