Jasper County Democrat, Volume 2, Number 42, Rensselaer, Jasper County, 20 January 1900 — POLITICS OF THE DAY [ARTICLE+ILLUSTRATION]

POLITICS OF THE DAY

GAGE AND STANDARD OIL BANK. On July 2 last the government sold to .the Standard Oil National City Bank the old Custom-House property at Wall and William streets for $3,265,000. The sale was made under provisions of a special act of Congress providing that the purchaser of the old Custom-House should permit the government to continue to occupy it until the new Cus-tom-House was ready for occupancy, the government to pay as tenant of the old building 4 per cent upon the purchase price, or about $130,000 a year. The day after the sale James Stillman, President of the National City Bank, went to Washington, thklng with him a certified check, drawn on his own bank, for $3,225,350-all but $40,000 of the lull price agreed upon. This Check Mr. Stillman personally handed to Secretary Gage, who immediately handed it back to President Stillman to be deposited without Interest in the National City Bank. In other words, none of the three and a quarter millions of dollars which the National City Standard Oil Bank paid the government for the United States Custom-House six months ago has ever for one hour passed out of the bank’s control. The bank has had not only the use of the money every day since to loan out at interest for its own profit, but it has at the same time been receiving rent from the government for the Custom-House. The old proverb that one cannot eat a cake and keep it is thus set at defiance, for the National City Bank owns the Custom-House and yet retains the money it paid for the Custom-House. Secretary Gage has never turned the proceedings into the Treasury, as required by section 4 of chapter 337, under the terms of which the sale was made. The $40,000 “held back” was for another purpose. The deeds of the Cus-tom-House are still in the Treasury Department at Washington. The title to’ the property has not therefore passed to the National City Bank, and the city of New York can collect no taxes upon the land, as it is nominally government property, although the National City Bank owns and receives rent for it. 'rhe $40,000 held back was therefore merely a legal excuse for not proving the title, and for evading taxation. The law authorizing the sale of this property was as follows: Chapter No. 337, Section No. 4—That the Secretary of the Treasury is hereby authorized and directed to sell at public or private sale, to the highest bidder, after due advertisement, but for not less than $3,000,000, the present Custom-House property in the city of New York, bounded by Wall, William and Hanover streets and Exchange place, and to deposit the proceeds of Jhe sale, after the payment of the usual incidental expenses, in the United States Treasury as miscellaneous receipts derived from the sale of government property. Section 3,617, Revised Statutes—The gross amount of all moneys received from whatever source for the use of the United States, except as otherwise provided for in the next section, shall be paid by the officer or agent receiving the same into the Treasury at as early a date as possible. 3,618, Revised Statutes—All proceeds of . sales of old material, condemned stores, supplies or other property of any kind shall be deposited and covered into the Treasury as miscellaneous receipts on account of “proceeds of government property,’’ and shall not be withdrawn or applied except in consequence of a subsequent appropriation made by law. These facts are admitted by Secretary Gage's subordinates as to the deposit of the check in the National City Bank. The only defense is (first by Supervising Architect Taylor of the Treasury) that the money was “covered into the Treasury,” in the language of the law, when it was placed In the government depository, the Standard Oil Bank. Chief Daskan, of the public money division, said vouchers showing the money had been received by the government were in bis possession. “The money,” said he, “very likely ws* never covered into the Treasury, but deposited in some one of the government depository banks.” He did not know why the property was still being recorded as in the government’s possession and thus kept off the city tax books. “That,” he said, “was not the government’s business. It was for the New York Tax Department” Four transactions of the government with the National City Bank have netted the favored institution these profits: PROFITS. Profit on Union Pacific—Payments of *33,000,000 In part distributed among the United States depos- ’ Itorles by National City Bank, but the greater part retained by the National City Bank on deposit** 350,000 Profit on "financing” the payment of the *20,000,000 indemnity to Spain-estimated *OO,OOO Profit on Custom House Deal—lnterest on *8,265,000 for 180 days, at 6 per cent., *98,8*7; rent from United States Treasury Department for 180 days at 4 per cent., *64,224; city taxes saved for 180 days, *36,000 196,581 Annual Interest on Internal Rev- ' enue receipts and other Government deposits in the City Bank, now *17,000,000, an Increase of *4,000,000 since Dec, 2, wh«ta the met report of the bank was published 1,020,000 Total estimated profit to the National City Bank from Government favors shown since Secre- -

profit from Government favors on the capitallß6 per cent. -New York World. McKinley ism as a Luxury. That the election of William McKinley has proved an expensive-experi-ment, amounting to a luxury nor of any benefit to a free people, is demonstrated every day. If the country ha* not been plunged into the worst financial distress it ever experienced is due to the good luck of* famine, increase of demand for American productions, quality of workmanship and various other causes not connected with anything Mr. McKinley has ever advocated or brought to us any more than a comet is the cause of the measles. In fact every act of bis administration has been in direct violation of the public welfare and for the advantage of special Interests and private concerns. Our burden of taxation is now so heavy that the public treasury is overladen with the people’s money, and there is no way devised to get rid of !t other than to turn it over to the same speculators that put McKinley in office. Here is the official record, and It Is a very bad showing for any administration to give the people in justification of its retention in power. The treasury deficit In three years of McKinley is: 1897 ;*18,054,000 1898 38.048,00 c 1899 88,897,000 The Government revenues by years during McKinley's administration, have been: 1897 *847,721,000 1898 402,321,000 1899 517,216,000 Total .*1,269,258,000 The administration has spent during its term these vast sums: 1897 *365,775,000 1898 443,368,000 1899 605,093,000 Total *1,414,536/000 Deficit for three years. - 144,978,000 In the revenue received are included $383,000,000 from bonds, Pacific railroads and war revenue, which are extraordinary revenues. Lacking these, the deficit would have reached $532,978,000, a sum greater than for any three years during the life of the nation except the civil war. The total debt in 1896 was $1,769,940,323. Now it is $1,991,927,323. Our annual interest has increased by $4,409,438. In 1896 our public debt was $25 per capita. Now it is $29 per capita. There is not much comfort in this showing, and had it been a Democratic administration that brought such a financial climax upon the country the Republicans would have riven the country asunder in their denunciations. If three years of Republican misgovernment can effect such stupendous results, Its capacity for further mischief In five more years will be perceived by a generation to come in the burdens placed upon their necks.

Bryan’s Chance*. That William J. Bryan’s chances for election to the Presidency in 1900 are excellent cannot be doubted, although the Republicans are boasting that McKinley has a “sure thing.” It is a significant fact that 34,000 votes cast in the right States in 1896 for Bryan would have made him President A slight change of ballots in four Southern States would have defeated McKinley. This being the case, the present incumbent of tike White House is far from having a “sure thing.” Bryan secured one of the Kentucky electors and McKinley got the other twelve by a plurality not exceeding 281 votes. The other three States of the South were carried by McKinley by a plurality vote of 3,837 in Delaware, 11,487 in West Virginia and 32,232 in Maryland. California gave McKinley eight out of the seventeen electoral votes by a plurality of only 1,922, while Indiana gave the Republican candidate a plurality of 18,181. This makes a total of about 34,000, which changed for Bryan would have made him President. Circumstances have changed greatly in Bryan’s favor since 1896. The Republicans have made blunders, have broken faith and are on the defensive. Imperialism has become an issue; the trusts have aroused vast hostility among the people, financial panics are threatened through Republican mismanagement McKinley represent* the millionaire* and the aristocrats, Bryan represents the people; therefore his Chances for election in 1900 are bright and the McKinley “sure thing” is becoming an empty boast—Chicago Democrat

Profit on Other People’s Money. The President of the Pint National Bank of Indianapolis, on retiring after fourteen years’ service, thus congratulates his fellow magnates: “I congratulate the officer* and stockholder* of our enterprise. The bank has been in operation fourteen years under my control, with a capital stock of $500,000. In the meantime it has voluntarily returned $500,000 of capital stock back to the stockholders, besides paying them In dividends $1,496,250, part of which is tn gold, and I now turn It over to you with it* capital unimpaired and $327,000 of undivided earnings on band. To this may be added the premium of United States bonds at present.price*, amounting to $36,000, beside* quite a large amount for lost or destroyed bill*.” It does not appear that any of them shook hands with the depositors, and when this particular bank is multiplied by five thousand other banks, all con. gratulating one another, It does seem as if the depositor* deserve a word Of praise.