Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About The Alliance-independent. (Lincoln, Nebraska) 1892-1894 | View Entire Issue (May 18, 1893)
...3 c The Alliance-Independent he Alliance-Independent Advocates:: A I U th bet Advertising medium In the west. It Is especi ally valuable as a means of reaching 'he farmers. Its circulation Is as large In Nebraska as the cir culation of all the "farm Journals" combined. Give The Allianck Indkpkndekt a trial if you want good results. VOL. IV. A From the History of ''The Best Banking System the World Ever Knew." SHORT CHAPTER FAILURES OF A SIHGLE WEEK. Jmost a "Black Friday" in Wall Street. ' y Three Great National Banks . j , and Dozens of Lesser Ones Close Their Doors. Where We are at Financially. "The proof of the pudding is in the eating whereof." The Lational banking system has long been held up by old party demagogues as "the best banking system the world ever knew." If that claim be correct, the experi ence of the past few days proves that ' the world's acquantance with good i'bankln j systems has been very limited. VVlf One after another the great national banks of the country fall with a crash dragging down with them dozens of lesser banks, and leaving the farmers, laboring men, and merchants to mourn the loss of their savings. When the doors are closed the people are assured I by the subsidized press that " the suspen- sion is only temporary," "all depositors 1 will be paid in full" etc. But after a ! ? dreary wait of several week the truth, like murder, "will out," and the people find that their deposits , were either stolen by swindling bank officers, or squandered in doubtful speculations. ( . country is trembling on the verge of j bankruptcy. Popular confidence is all that upholds it, and that is fast giving away. A general "run on the banks would burst every bank in the United States in twenty-four hours. In order ly to bolster up public confidence and pre Y vent a general run the subsidized press, l i under the direction and control of the V bankers, spreads false roports to allay popular excitement. The following is an outline of a week's experience with the national banking system which the people of the U. S. have just enjoyed: Mav 4. Wall Street in a panic. Six commission firms forced to make assign ments. Great excitement. Wild fluctua tions in price of stocks. National cord age stock drops from 80 to G5, others were hard hit. May 5. Wall Street in a wild whirl of excitement that recalls Black Friday. Deacon S. V. White fails, and several other firms assign. National cordage drops from 65 to 42. Other stocks suffer heavy decline. A mad scramble wA among speculators, Vanderbilt, Drexel I'Utiergan & Co , and other heavy capi- ' talista rush to the rescue to prevent a general panic. ' May 8. Chemtctl natioaal bank of 1 ., Chicago clones lU door. Capital stock one million. Deposits 11,600,000. Bank eiaainer takoa charge. This bank had j I a branch on the World's Fair grounds, which the fair managers had strongly recommended to visitors and exhibitors. The bank had thus secured many de r polU from this class. The fair mana V , gen will try to raise money to prevent VklM to those who depot ud at the f winch on the ground. May 11. II U. Hoblntoa Company, bankers and brokers, of Washington, Delaware, forced to the wall. Llahlll Ufsir0,0i0; nominal att tioo.oou. May U.-The Capital National lUak ' . t . I II . ... I I.Llll.l . w iuuiiB'ii ufwijucvi. i.m out lies probably UH),000, , The Imtredlate cause was th failure ttf the l'hm!cl Natla4 of Chicago ta which taay had ?0UO ditlUHl. Ma? 1 t.-Tbe Columbia National Unh of Chicago supaded IteptelWatnouot ..Aka.uk.fe.t Ik U ill i . .. a. 3t sot all. The ridet Zlmrl Uwlg. Jln U al preeldsat 44 a lot ( oaU CVonatry baaks ta Uilaolt aid Lvltaaa r : Q$ i)'J" . " l3 all of which are so connected with thA Columbia that they are likely to be ruined. Samta Clara, Cal., May 11. The failure of the Bank of Santa Clara Is now belisved to be complete, all the assets having been wiped out. There are well-grounded reports of fraud, In volving men of reputed wealth and much prominence in the eouoty and throughout the state. The liabilities will doubtless exceed 1300,000 of which $170,000 was lost by loans on personal security. Fraud is charged in connec tion wi'h these personal loans. The failure vlll probably ruin several merchants and a number of farmers, who, having full confidence in the bank deposited in it all their funds. May 12. The Chicago Times says: In its fall the Columbia has brought dowa nearly a dozen so-called "branch" banks throughout Illinois, Indiana, and Ohio, of which Zlmrl Dwiggins, presi dent of the Columbia, was also presi dent The wires were kept hot yester day afternoon with announcements of the failures of these country institu tions that bad been organized by presi dent DwigginB and Director Starbuck. Among the country banks which top pled over yesterday were: The Dunkirk bank of Portland, Ind., Z. Dwigglns, president, failed for $70, 000.' The Commercial S tate bank of Russia ville, Ind., and the Farmers' bank of Greentown, Ind., Z. Dwiggins, president failed for $60,000. The Geneva bank of Geneva, Ind., Z. Dwiggin,A president,-' liabilities un known. The Brookston bank of Brookston, Ind., controlled by the Columbia Na tional; liabilities unknown. The Bank of Morriston, Ind , under the control of the Columbia National; liabilities. $75,000. The Bankof Greenwood, Ind., under the Bame control; liabilities unknown. The Ottawa County bank at Elmore, Ind., a branch of the Columbia, closed its doors; the bank officials not to be found. The private banking firm of Dwiggins Starbuck & Co., of Williamsburg, O, assigned. Laurence P. Good, expert accountant, arrested for embezzlement. Citizens' Bank of Hebron, Ind., offi cers claim the suspension is only tern porary. Citizen's Bsnk of Edwardsburg, Mich. People of the town involved to the tune of $25,000. Farmers' and Merchants of Casey, 111. liabilities $25,000. Bank of Brookville, Ohio., farmers and merchants the principal losers. Broker A. Kline of Chicago was forc ed , to suspend operations, owing to money matters affected by the closing of the Columbia bank. Beside? these banks which failed yesterday are several under the Colum bia National management scattorcd throughout Indiana and Illinois whose suspension is looked for at any hour. The collapse of the Columbia National has wrought ruin to depositors and stock-holders in three states. Other country bank failures not con nected with the Columbia National are reported as follows: Charlevoix, (Mich ) bank; liabilities 10,000. Bnk of Itockford, Mich. nank of Orlean. Ind. May 13 -The I'lanklatoa lUak of Milwaukee saved from wreck only by bringing a large sum of money from Chicago on a special traiin. hm the Ztfhruog Glaat and I'alat Co for paint, gla and glued a. H. K corser of llb and M, trett, Lincoln Nebr. I'm North weetorn line to t'hlcio. U raws. I at trains. Omc .LI Our mUs ar UaWd carefully bafm "iiuf mi irv. uriiimti, tin ratlin Klettaia strwl, IWhvr A 1'uwWr tav a stock of gva era inervtiaadl la lawa, au rua King aad Uulag big taalk hualam44 UImI iHHtatry. 1'arty wiahee la move to Uhwla a4 will take a vrl clear profwrty and Nilaac roh. He or wrtta, liAMttER A low tin, lloon 10, toil O ni. LINCOLN, NEB., THURSDAY. MAY 18, 1893. THE GRAND LD MAN Condemns the Single Gold Standard, and Declares tor Bimetalism TEE WORLDS FOREMOST 8TATE8MA.N Hon. W. B. Gladstone, Demands That Money bs Made Cheaper and More Plentiful. Remarkable Utterance. London, May 2 The Currency Re former reprint the following editorial from a recent Issue of the Scotsman. The whole matter is so fully set forth in the Scotsman's editorial that no further comment is necessary. It is as follows: MR. GLADSTONE ON BIMETALLISM. Yesterday afternoon Mr. Gladstone addressed a meeting of his constituents in the Free Assembly Hall, Edinburg. At an earlier hour a deputation from the Edinburg Chamber of Commerce had an interview with the right honorable gentleman, and represented to him that there bad been during the past lew months a remarkable growth of public opinion in favor of currency reform; that the miners and other workingmen in Mid-Lothian were now convinced that bimetalism was the only remedy for low wages, and the farmers that noth ing else could save their industry from ruin, and that similar views were now prevalent all over the country, and would undoubtedly exercise a strong In fluence on votes during the approacaing general election. Such an authoritative expression of the state of public opinion is never lost on the responsive sympathies of the prime minister, and in the course of his afternoon's speech he referred to the subject in the following terms: MEANS BIMETALISM. "Now, I am sure we all have a most profound veneration for the currency, and there are at least three aspects in which the subject might be regarded, but as time Is at present of great value you are familiar with the popular and highly expressive .faying that time is money, and it has a currency of its own which we canuot, and at the time of life at which I have now arrived.I especially must cot disregard I shall content my self with saying in a single word that currency reform means bimetalism. ( Loud and prolonged cheering. ) 1 might refer you to my former utterances on this question, but though I am not aware that any of the principles which I have on previous occasions enunciated are obsolete or inapplicable to existing conditions, I am now in a position to say that I regard bimetalism as a question which is fully ripe for discussion, and that we are rapidly approaching the time when it must become ripe tor set tlement on a broad and final basis-. Gentlemen, we are bound to take Into our consideration not only the limited class of creditors for whom an appreci ating standard of value has naturally a strong and irresistlDle attraction; out we must acknowledge it as tne duty of a democratic legislature to supply the muuh larger clas of people who re- 3uire money for the payment of their ebts with a currency to which they may have access on easier terms. (Loud applause.) COLD APPRECIATED . It 1' essential, at the aauie time, to provide a standard of value which shall Leas little fluctuating as the variable conditions regulating the supply and the demand far the peolous metals will permit. Now, it has been demonstrated by Mr. Giffen and other high authori ties that within the lat few years gold has varied from to 25 per cent, and from HO to 40 per cent, in relation to othrr eoraniodltlea. The poople, whoa judgment on alt such questions must be final, guided by that divine Intui tion which distinguishes thona whom I may ca l thw d)1m from the more artificially hwhiUIcI cotnpontnts of society dealgoatod the clanat'e, have arrived at the conclusion that to cor rect the variable tendency of gold. It must, as a standard of value and as a legal medium for the Interchange of CHimiiHHltltrs, b link! indtulubly tt!t silver. It ha btn said that It Pmi1 the wit of man to tlsli a chm by which a tartalilo standard oi value shall bo made If m fluctuating by Unking it with another metal which Is much mom varUhio, M Alt v w tVi to AttuMrumi IT, "Hut 1 aay there ar at least twenty way ia which the ifoairw 1 end may t avaleed, or at !atapprteb4 in sut'h a degrv as ntay apprvdably allevlah the trvwat uufavotWe e jadttkiua and U will to the duty of any government which you way rho Hi adwinUter the affairs of this country to 0n4 a s.'a and to provide far the debtors aod the wsge earners of the country that plentiful supply of current coin which they most reasonably demand as an elementary right, and at the same time secure for farmers and other producers tnose nigner prices lor their commoui tes which they have an equal right to insist upon. (Loud and prolonged ap plause.) , WING 8HOT8, Truly we have the best banking sys tem in the world for robbing deposi tors of their bard earned savings. Ingersoll says: ''Happiness is the in terest which a good action draws." That is a species of Interest which old Shylock never heard of. Nebraska has certainly been a boodlers' paradise, but It is so no longer. The exposed thieves should engage Poet Lariat Griggsby to write a new Epio under the old title "Paradlw Lost" with Mosher for Satan, No patriotio American citizen will ever advise any man or class of men to keep out Of po itics. It is tbe sacred duty of every citizen to go actively in to politics. He who will not go Into politics is unworthy of citizenship, For the benefit of the State Journal we move to amend the last years' cam paign cry of the prosperity shrlekers so as to read as follows: ''Stand up for Nebraska boodltn." Thus amended It will do admirably for the coming cam paign, i . Some enterprising doctor should start a gold-cure for the forgetting habit. Several witnesses in the Impeachment trial are sadly in need of treatment, Bill Dortran will require about twelve "shots" an hour lor several days to bring him around. If the Christian ministers of today would emulate the example of Christ in driving the money changers out of the temple, the people might hear them gladly as they did Christ. But as long as ministers cater to the men who rob the people, the masses will remain out side the churches, Col. Calhoun says the enemies of Col. Rose water, led on by Col. Gere have formed a plot to have President Cleve land tend Col R. as cousul to the Congo Free State. No U. S. consul has ever returned from that country alive al though twelve have been sent. The plotters are simply working for har mony. Tho worst thing the republicans can say about the democrats just now is that they haven't repealed the last great financial measure of the g. o. p, "the Sherman act". They say if the demo crats don't do it at once, the country will "go to the detonation bow-wows." What queer results politics do bring forth! If the impeached state officers really desire to be vindicated, why do they and their attorneys and friends do all in their power to suppress the truth conceal and distort the facts? Such efforts may possibly secure an acquittal in the supreme court, but assures a con via ion in the court of public opinion. If they were honest men, tney would not need to cover up anything. Editor Gere of the State Journal has shed several barrels of tfars over the sad fate of poor old ex-Governor Butler who was so cruelly and unjustly lin- pcarhed twenty years ago lie i afraid tbe same criminal blunder will bo repealed in the case of the presentstate 'Rloer. If it is, arrangements should be made to turn the lacbryma. out pouring from tho Slate Journal offlcd into ISalt creek to aaalat its slugiah current In washing out the new chaum l whhh is now being dug. Rverv time a bank fill's the noonUi are treated by tbe subsidized pres to the same nauseous done: "Depositor will be piid in full" 'Nonefd f.r eiclteUient " ' Geueral business un affected" "Other bank all right." "The wortl la Bow thought to be over" etc. A(l r several wrekt of suapenwi and "hope dferrd that makelh the heart sick" the deouotk r learn thu truth which they supretd at tbe t'mtt U; that the btuk won't pay over ku cent on the duilar. AS Im Pttr A lkloa small boy's grs" lmalhar a teaching htm a n pr the siher niijhV It wa la versa and rat lttUi Ju, n-pKn, Wid Mi Ctrendma," salj the boy, 4o yot iy that pray T' "W ell not eiaw ly, ne saer4. Why' "Vau llyoaaal t It ju J ha to let the lltl'e lamb go aad say Keep the all 0mu" tUtatoa YraasertuV STILL CRINDI NG AWAY The State's Evidence all in, and thelDe- fente new at Work. A STRONG 0A8E MADE OUT. Outragsons Methods Bmploysd to Shield the Impeached Officials Coach ing Witnesses. More About tbe Cell Hoase. Ao interesting point brought out Wed nessday was that Bill Dorgan kept no books while he superintended tbe cell houM wwi k. Hopkins his auuouisor, testifies that he opened the first set of books kept in connection with tbe job. John Latenser, one of the leading ar chitects of Omaha estimated the cost of the cell house at 124,484 allowing 500 for possible errors. On Thurday the attorneys for the Impeachment offered tbe record of tbe evidence taken before the legislative committee whica investigated the cell house affair The correctness of the record was established by the stenog raphers who took down tbe proceedings' Of course Webster objected strenuous ly but tbe court said It was all right. TBI ASYLUM FBAUD8. The introduction testimony concern ing the asylum frauds was continued until Friday afternoon when the state rested its case. The following Is the summary of the most interesting developments. John Dorgan, a member of the White breast Coal Co., was put on tho stand, but refused to testify. lie said be was under indictment by tbe Lancaster county granl jury, and could not testi fy without criminating himself , After considering his case the court excused him, The impeached officers bad hoped to profit by the disappearance of the B. & M. freight records, but in this they were sadly disappointed. Fred Race one of the experts employed by the legislature last winter had copies of all the important records. He bad se cured them from the railroad officials. A small army of railway officials were put on the stand to identify these copies and prove their correctness, all of which was done to the satisfaction of the court, and the copies wore accepted instead of the missing records to tbe great chagrin of 'John L. and his clients. '1 bus a complete and satisfac tory record of the coal actually shipped to the asylum was made out. THE COAL STEALS. Fred Race was one of the state's best witnesses. He was thoroughly famil iar with asylum coal matters, and had his evidence in excellent shape for pre sentation. The attorneys tried hard to break the force of his testimony but failed completely. From the recrods of the railroad company on the one band, and the vouchers oa file at the state house on the other, he made a state ment of the coal (in tons) actually de livered to the asylum, and of the amount charged to tbe state by the WnlteDreast t;oal (jo. The loilowlnir Is his statement in tabulated form: Month. Charged. Delivered. Over charge 374 STiH 4IS 887 871 2ffl SM 84.H m 313 801 4J4 321 at October. 1W0 547 173 November, 1WH)..., 879 Mi December, IWK).... 749 S31 January, 1HHI Vitf m February, IH91 . . . . 0A) S49 March, BJ 235 April, IKU1 40 141 June, Ihi w aw Juiy.lWI 44IS IH3 AUKUHt, IMUl 4H9 m September. IH9I 4ti7 1M October, mi 7f l November, l..,. 71 KM Urn-ember, lxl.... 704 31 February, ltw!i...., Vt m Total for 16 mo. smi Stta tn No wonder John Dorgan as a mem ber of the White-breast Coal Co. re fused to testify! The following are some of Mr. Kase's an wers to qlesi ions w h ich show some of the methods employed to defraud the staUv. "The freight book shows that the first car billed to Lincoln at 38 000 pounds and billed out to th aayluta by the Whlte-brvastCoa! company at 40,000; tha neat car received at 30.000 and billed out at 40,000, The other cars showed the same dicrpancy la weltr hU." "Now Mr. lUn said Mr, Larab rt tia "vu may show In what particular your tluUtiin wtr not correct," "The tar by llandaii, since raaklug the drat tabulation. 1 Had was n4 on the book, but to be on the safe side 1 allowed It to the asylum. 1 tlnd last car U.vVk charge! to the aay. lum a containing coal, wa loaded with brja la April 1 found that the vanl check showwl tarws rare contain leg eual, but 1 tumid not Iraoo the car the book at showing where they went, Ta b sale th 1 credited ti th ay lum, iit now 1 know ihey did not go ther.H Hr. ll- a!au tUfid that he 84 U several lasiant-et found the saute car number rtoorded twit e la one or ta wk so short a tttaa that hy could not possibly have gone to to.' mine aad be) btvjght tack. The government own ership of railrouds and telegraphs. That freight rates in Nebraska be reduced tol a level with those ia force in Iowa, The building by the national government of a great trunk line from North Dakota te the Qnlf of Mexico. NO. 49 T STEALS IN FLOVB. The impeachment committee also made out a very neat case la the mat ter of flour charged to the state but. never delivered at the asylum. 8. M. Mills, manager for the flour firm of & F. Johnson & Co. testified that the fira of W. 1). Sewell (which bad the con tract for furnishing flour to the asylum) bought the flour of Johnson & Co. The amounts bought of Johnson & Co. were) compared with amounts charged to tho state, and the discrepancy was found, to be almost as great as that shown by the figures on cosL But these figures do not show the else cf the steal, for large quantities wore stolen alter leav ing Johnson & Co.'s store. C. W. Kendall, the drayman who hauled the flour to tbe aiylum testified as follow:! I usually took about one toa a load. I always get tbe flour at Johnson's store. ,r ' . ; "Who received it at tbe asylum?" "Nobody during 1891: it was not weighed just dumped Into the, flour box." "Did you always deliver all that you received?" . "Not always. I was allowed one sacs: of fifty pounds for each load." "During novemDer ana isecemoerv 1891,did you leave flour at anj other placft than at the asylum?" "Yes. sir: actlnff under instructions of Sewell. during November sad Decem ber of 1891 I would lead up for the asy lum and on the way out I would unload a part at a store on Routh Tenth street; sometimes I would leave 400 and some times 1,000 pounds." "How about January, 1892?" "On January 5 I started out with 2,600 pounds, and left two sacks st my house. The load was weighed out, bua , the wairoa was not weighed back. Oa January 11 1 took another load out to the asylum and delivered all that i had started with. Beginning on Jan uarv 5. 1892 the oeoole at the asylum commenced to count tbe sacks, but Erior to that time there was no account ept of the delivery." i After Januarvl. 1892 do you remem ber of leaving any portions of the loads at other places?" "There was several times: I should say four or Ave times at the Tenth street store. Sometimes I would leave eight sacks and sometimes twenty or even more. I always did this under in structions from Sewell," "Was there anv other time when you did not deliver the amount of flour with. which you started?" "On December 28, 1891, 1 took out a load and Sewell told me to put thirty- sacks in my barn." Did you dw this?" "Yes. sir. I out the flour in my barn and a few days later I hauled ten sacks to the store on Tenth street, ten sacks to Breckenrldfirs. a saloon man at Tenth and N street and the balance to Hill, a man living on N street." "How did you get your pay.'" "In floor; that was the agreement.' PREFERRED THE ALLIANCE INDE PENDENT. On Thursday copies of Bewick's fam ous speech delivered last September were offered in evidence. Copies of the Bee, World-Herald and Alliance-1n-DEi'ENT containing the speech were of fered. The court took them under ad visement. On Friday Judge Maxwell ruled out all the reports except that Dublished in tbe Alliancb-indxpend- ent which was accepted. THE STATE'S CASE CLOSED. On Friday the prosecution completed the introduction of testimony. Tho impeachment committee and all others who are interested in the sucsess of the prosecution are well satisfied with the work done. The cse made out is stronger than the committee anticipat ed. THE DEFENSE BEOXRS. John U. Webster of Lincoln spuko for over two hours outlining the plan of iefcne. It is the same as already Indicated by the answers of the lot peached state officers. The defense will show aa tar as tney can tnai mere was no crookedness at the penitentiary or the asylum. Then they will claim that tbe state omcers are not to niame for what crookedness there may have been. They wid luitlfy the state offi cer In using the fcO0 on that junket ing trip. They win try to snow mat it was ImiHsasiVe for the member of the board to look Into the details of every thing on account of the many duties thev have to perform etc. It la the same old story the State Joureal has been singing. IXUCHIMU WITMESSSS. The manner la which the lawyers fnf the defense "coach" their w)tnee I simply outrageous, tiofore going oa ik at&nJ th wllamfciii for Ih deftiaaa !. I nf tka f Iiiuimm fne llu tiro. cutlua too) are put through a regular reu&arsiu, , A number of witness have Vms ami nod hut nothing Impor'aat er atartUag has beea brought out. The asylum bok-kepr ami baker have bt put oa the stand to prove that l n.tur parens were eu vcrrwei trot ilt LmI!hi1h La auk. The bakera testimony rti'.ly eoatreltot his toU- vtay twittr in leg's) five t4neitie TaVtad of th trial etty be iookwl for by the la! ol ail week. I ir