Democratic Sentinel, Volume 3, Number 31, Rensselaer, Jasper County, 12 September 1879 — Fixing Things Beforehand. [ARTICLE]

Fixing Things Beforehand.

Did Mr. John Sherman have reason, eight months ago, to expect that his friends of the First National Bank would find it impossible to pay back into the treasury the millions which he proposed to leave on deposit with them? In the circular issued by Mr. Sherman on the Ist of August, 1878, the re-

lations of the Government with banks acting as agents of the Government in the sale of 4-per-cent, bonds were clearly defined. That circular gave the banks ninety days in which to turn over the money received for 4 per cents. This was its language: A 8 soon ae the 4-per-cent bonds are paid for by certificates of deposit of such public depositories, or otherwise, a call will issue, maturing within ninety days, for the redemption of 6-per-cent bonds, and the money received for 4-per-cent bonds will remain on deposit until such call matures. On the Ist of January, of the present year, Mr. Sherman increased the commission to be allowed to the First National and other depository banks cn the bonds for which they might subscribe. This kind act of Mr. Sherman’s practically put the whole business of selling tips bonds into the hands of the favored banks, chiefly the Frst National, for - it enabled them to undersell the Government itself in disposing of the bonds in small quantities to actual purchasers. At that time, as will be remembered, the daily subscriptions increased in an enormous proportion. Simultaneously with the increase, Mr. Sherman issued another circular, suspending that of Aug. 1, 1878. This new circular said nothing about ninety days’ grace to the banks. In almost so many words it promised'the First National Bank, controlled by the old Jay Cooke, McCulloch & Co. ring, that the money derived from the sale of the bonds should remain on deposit as long as Mr. Sherman chose to let it remain. This was the language of the new circular: The money received by depositor banks on account of subscriptions will remain on deposit with said bank, but subject to the order of the Treasurer of the United States, Several interesting questions arise: Did John Sherman, in the kindness of his great heart, foresee, eight months ago, that the Jay Cooke financiers would be embarrassed to settle with the Government within the ninety days’ limit? Did the ingenuous financiers of the First National Bank, in the simplicity of their natures, misinterpret the thoughtful act of kindness, and assume that Mr. Shermau meant that they might go on owing the Government thirty or forty millions until the crack of doom ? What would become of the people’s money if the Jay Cooke, McCulloch & Co. financiers should fail, as they have been known to do before ? Is the refunding of the 6-per-cent, loan an accomplished fact, as Mr. John Sherman claims in his stump speeches in Ohio and elsewhere? If so, where is the money, or its equivalent in called bonds, that ought to be in the treasury of the United States? New York Sun.