'Cbe Conservative , 11
the treasurer is a payment into the
treasury.
If this \voro not the COHO , then the
depository aot would bo ineffective , and
no bank would bo permitted to receive
deposits of public money.
But it is also charged that the pur
chaser of the property is to receive rent
at the rate of 4 per cent per annum on
the purchase price.
This is true , but Mr. Gage is unable
to control that.
In the aot of congress already re
ferred to , the secretary was required to
offer this rent both as an inducement
for intending purchasers and as pro
tection for the government.
This portion of the contract of sale
cannot bo repudiated neither would it
bo for the interest of the government to
have it removed.
It needs the custom house ; in fact it
cannot got along without it , and it is
not probable that it could obtain suit
able quarters at any loss rent.
It is also said that the secretary ac
cepted a part payment when the law as
stated by the World-Herald requires
the price to bo paid in cash , and by this
If means the purchasers of the property
are enabled to escape taxation.
If the editor of the World-Herald had
read the aot , instead of the mendacious
statements of some anti-Gage news
paper , ho would find that his assertion
is not correct.
It is expressly stipulated in the laws
that the purchase price may be paid in
several payments from time to time , and
this being incorporated in the advertise
ment , the secretary could not change it ,
if he had so desired. The provision is a
proper one , for if all cash payment had
been required , it could easily have been
charged that it was a scheme in the
interest of parties able to control large
cash moneys and by means of which the
government was defrauded.
The statement that the bank can
evade taxation in the manner indicated ,
has been denied in congress and I have
not seen the denial controverted , but
this is not material to the case. If the
bank can evade taxation , so could any
other purchaser of the property. That
would be a circumstance connected with
the transaction over which Mr. Gage
could have no control and for which he
can in no manner be held responsible.
In closing , it should not be forgotten
that all of the government deposits in
the National City bank are secured by a
deposit of bonds , and that the large
transactions with this bank are justified
by the exceptionally large size of the
bank.
Its assets are more than double those
of any other bank in the United States ;
its footings being over $100,000,000. In
| addition to this , all money deposited
i with it on treasury account is subject to
withdrawal at any time.
But there exists no more reason for
withdrawing the deposits with this bank
than there would bo for taking them
from any other depository.
OHIclul Correspondence.
But the most trivial of all the criti
cism made upon Mr. Gage is that re
ferring to the correspondence ho
attached to the report ho made to con
gress in response to a resolution adopted
by that body.
It is claimed in some quarters this
time "friendly" quarters that he should
have culled from this correspondence
anything which could bo made to reflect
upon his party or any of its prominent
supporters , and it is even asserted but
probably without any basis of truth
that the president himself joins in this
opinion. A politician would perhaps
have adopted this course , but a law-
abiding and law-honoring business man
like Mr. Gage would not for an instant
tolerate the suggestion.
It was his duty to supply congress
with just what it demanded.
If anything had been held back , it
would have been a virtual confession of
wrong doing.
The correspondence referred to are
the letters from President Stillman and
Vice-President Hepburn of the National
City bank , in ono of which plea is
advanced that preference in the matter
of public deposits should be given to that
institution in view of the services ren
dered the party in the campaign of 189G
by some of its directors.
And after all there is nothing so very
serious in these letters.
Bonk managers like the managers of
any other business enterprise , conceive
it their duty to pull every string that
will advance the interests of their banks.
The treasury files , during both demo
cratic and republican administrations ,
are doubtless loaded with similar epistles ,
and in the present instance , the futility
of some such demand may supply the
animus of the attacks upon Mr. Gage ,
made by men and newspapers belonging
to his own party.
The democratic press very naturally
seizes upon the Gage incident with the
view of making political capital out of it ,
but it will , I think , prove somewhat of
a Spion Kop for the party.
It would be much better policy to de
fend a faithful public servant , rather
than join in an unholy crusade against
him.
him.Of
Of course my opinion will be weighed
lightly as my democracy is not of the
present brand , but Mr. Sibley's defence
in congress of Mr. Gage should at least
be received with some consideration.
The business men of the country
whose views are most likely to be
affected by this matter , can easily dis
tinguish between right and wrong
while the man who will accept as truth
without inquiry whatever he is told to
believe , is a man whose vote is already
safe for the side he believes in and needs
no further persuasion.
HENRY W. YATES.
POLITICAL.
The bimetallic section of the senate
finance bill is denounced by the Balti
more American ( rep. ) as "a mischievous
addition. The purpose of the financial
bill is to settle the currency question , "
it says , "but the amendment is in the
other direction. "
"If congress will hit a few specific
trusts like those of paper , tin and copper
by a prompt taking from them of the
protection given them by high tariff
duty , it will teach swift instruction to
all other trusts , and you will see how
soon they will abate their preteutions , "
says the Keokuk Gate City ( rep. ) . "The
republican party will not have the
shadow of a chance to carry the presi
dential election of this year if this
republican congress leaves all the cor
morant trusts preying upon the Ameri
can people next November as they are
now. "
"Would our foreign trade under a
system of tonnage bounties increase
more rapidly than under the present
system , and would the increase possess
the elements of stability that would
enable it to survive after government
aid is withdrawn ? " questions the Chicago
cage Times-Herald ( rep. ) . "The ex
perience of France has been that the
greater the bounty given the greater
became the need of government aid , and
every attempt to withdraw the aid has
been quickly followed by increased sub
sidies in order to prevent retrogression
and ruin. "
"The attitude of these protectionists
really is that we acquired Puerto Rico ,
not for the benefit of its own people , but
that we might use it for our own selfish
ends , " criticises the Boston Herald
( ind. ) ; "and , indeed , not for the selfish
ends of our people as a whole , for these
would be found in free trade with Puerto
Rico , but for the selfish ends of a small
portion of our people who fear that the
profits of their production will be in
jured by free trade. This all proceeds
from the attempt to apply a vicious
principle , and to apply it in more than
one sense. "
"The situation in Kentucky exempli
fies anew the evils of bossism in politics , ' '
comments the Baltimore Sun ( dem. ) .
"There is an irreconcilable conflict be
tween good government and bossism ,
and until the people of Kentucky put an
end to political despots they will always
be exposed to the intrigues and the law
lessness of desperate men. But violent
measures are not necessary. Honest
election laws , enlightened public senti
ment , and independence in voting will
destroy any boss system that was ever
devised to thwart and nullify the will of
the people. "