Rensselaer Republican, Volume 18, Number 2, Rensselaer, Jasper County, 17 September 1885 — DEMOCRATIC FINANCIERING. [ARTICLE]

DEMOCRATIC FINANCIERING.

Seasons Why the People Will Certainly Repudiate the Cleveland Administration. Secretary Manning and Treasurer Jordan Playing a Game that En- . . riches Monopolists. ;—j[Washington special to Indianapolis Journal.] “Sooner or later this administration ▼ill be repudiated by the great masses of the people on account of its financial policy,” said a well known writer on financial topics, addressing your correspondent this morning. “I am a Democrat of twenty years’ standing,” continued he, “but the acts of those people over there,” pointing toward the Treasury Department, ‘ ‘are more than I can stand. Here the Democratic party* has been denouncing the national banking system and howling against bond-holders and coupon-clippers for upward of twenty-four years, crying down monopoly and all that sort of rot, and in less than six months it has done more for this class than the Republican party did during its entire reign. This demagogy would have beep, shown up by the Eepublican and honest press generally if it had been understood.” I wanted to know what he meant, and the gentleman, who is one of the bestposted on finance in the country, said: “Why, you observed that Treasurer Jordan recently decided that there was really only about $25,000,000 surplus in the Treasury, did you not? Well, there is hirer $140,000,000, and he very well knew it. He threw out in his statement $100,000,000, which he desig- __ nated a sacred fund for the redemption 'of the legal tenders? He claimed the Government had no right to use that money. That act was in the direct interest of the national banks. It has been a rule, if not a law, in the department for many years that when the. reserve or surplus runs over $140,000,000 a bond call shall be made for $10,000,000 or over. You see by this decision of Jordan, which is approved by the Secretary, that it will be impossible to make a bond call for two or three years. This creates a stability and a rise in the bond market. Seven-tenths of the threes are “held by national bankers to secure circulation, or rather they own them and have deposited them as security. Well, this decision has given them a rise of three and one-half per cent. This decision is a guarantee to national bankers, also, that they will not be disturbed by having their security bonds called during this administration. What better do they want?” “Do you think this was done at the instance of the national banks?” was asked. “Undoubtedly it was. Treasurer Jordan paid a visit to New York soon after rendering the decision, and he received the plaudits of the national bankers, and millionaires, and monopolists, and was given a great banquet at Delmonico’s.” * “Does this impair the interest of common people?” “It does; and in this way: The one hundred millions set aside by this decision will now lie idle for an indefinite time. It might just as well be used in calling in bonds, which would save, at the lowest calculation, three millions a year to the people. Certainly, as the public debt is decreased the taxes are reduced and the masses are relieved of their load of taxation. There has been a decrease of the public debt every month under this administration, and not a single bond call has been made. The work of reducing the debt—and surely the work of relieving the country—is not fully carried out and cannot be felt until bonds are redeemed. This single act, in other words, simply gives the national banks at least two of the three millions every year, besides the incidental and direct advantages.” This very correct and comprehensive statement will not carry much consolation to the good people who supported Mr. Cleveland under the belief that their burdens were to be decreased. The government already pays an annual interest of upwards of $50,000,000 on her debt. She has outstanding 6,5, 4 and 3 per cent, bonds, aggregating about $1,200,000,000, and this truckling to the national banks does not give a hopeful outlook. It is said that Comptroller of the Currency Cannon is retained in his position, and is to be retained, simply because he is the national bankers’ friend and servant.