Year: 1878


That He Has A,,y Felto,c Feeling for the


First National Bank of Ne,c York.
Washington Special (Dec. 26) to Cincinnati


Enquirer


The correspondent of the EnQulrer called
upon the secretary of the treasury this
morning aud called his attention to the fact
that the statements concerning the First
National bank of New York, and his alleged
connection Herewith, were attracting mi
versal attention, and that the Enquirer
would cheerfully publish any explanation or
statement he might have to make.


The secretary replied with good deal of
fervor, that he did not care damn for the
First National bank.


The correspondent reminded him that
that might be all so, but there was neverthe-
less good deal Of talk about it, and that
whom his reply was sent to the House in an
swer to Kelley's first resolution, a good many
people attached but little importance to it,
and thought that the mover of the resolution
had got water-haul for his pains; bnt
Judge Kelley, Mr.. Hewitt and others, after
examination, thought it significant, and of
great Importance.


The secretary replied that Kelley and
Hewitt misunderstood the whole matter, and
added that the latter had been called to ac-
count for his statements by the business men
of New York, who had exposed the fallacy
of his position. The secretary said he had
been only pursuing the course which had
been pursued by his predecessors. No ia
voritism was shown in any direction. The
| circulars issued by the department invited
all national banks to become agents of the
q T.
had responded. Hence it would not seem
that any special inducements were offered,
or special privileges granted. The First Ma
tional bank, of New York, was the most ac-
tive of the agents for the disposal of the
bonus. Itwas selected by the syndicate, and
not by the treasury, as the medium of pay
ment of subscriptions for fifty million of
bonds for refunding purposes.


With regard to the per cent. bonds, the
law was strictly complied with III leaving the
amount of subscriptions on deposit for
ninety days, and in no other way was one
dollar ever deposited by the treasury in the
First National bank, or in any other bank.
Under existing law call must run for nine
ty days, and he had called the attention of
Congress to this, and suggested shortening
of the time The bank paid their subscriP-
tlons in called bonds, and the treasury was
not loser in q single case. In the very ma
ture of things, the secretary explained, the
government could not be loser, because if
anything happened to the banks the govern
ment had its per cent, which was deposit
ed as security, and which it could dispose of
at any time.


Concerning the double interest during the
running of a call, the secretary referred your
correspondent to statement he had made
within day or two in New York, that it was
unavoidable in the operation of refunding
and the practice he had pursued had been
the practice of the department for years.
In fact, this was precisely the operation
which the law contemplated.


In conclusion, he added that he had done
nothing injurious to the interests of the
country, OF through favoritism, and repeated
with emphasis his remark that he did not
care damn for the First National bank;
that others at perfect liberty to benefit
themselves as that bank had done, but they
hesitated about becoming agents for the
government, and would not take the respon-
sibility of doing SO.