TEBLMOBNIgg OIffiGO?INjTHURSDAY, ' JANUARYj-11 1900.-
A" DAY OF EULOGIES
Tribute to the Memory of the
Late Vice-President
ADDRESS SY SENATOR DEPEW
Word of Praise Prom Leading 31cm-
"bers on. Both. Sides of the
Senate.
WASHINGTON. Jan. 10. Beatitiful and
Impressive tributes were paid by the sen
ate today to the memory of the late
Vice-President Hobart. His intimate per
sonal relations with many senators and;
Ills close official affiliation with all or
them rendered his death a distinct loss
to every member of the body, as well as
to the country. It was In commemora
tion of his Illustrious career and of his
tnany distinguished services and of his
private character that the senate set apart
the session today for the pronouncement
of eulogies upon him. Personal frlenca
and associates and party friends and
party opponents joined In paying such
sincere and eloquent tribute to the mem
ory of Mr. Hobart, to his character and
public services, as have seldom been paid
to any public man. Addresses were de
livered by Senators Sewell and Kean, or
IS'ew Jersey; Taniel, of Virginia; Depew,
of New York; Cockrell, of Missouri; Cui-
lom, of Illinois; Davis, of Minnesota; Mor
gan, of Alabama; Chandler, of New Hamp
shire; Lodge, of Massachusetts; Caffery,
of Louisiana, and Allen, of Nebras'ka.
Early la the session Hale of Maine In
troduced a resolution of Inquiry, ad
dressed, to the department of state, as to
the seizure of American flour by the Brit
ish authorities, which aroused more than
"usual interest, because of Its attitude
toward Great Britain. It was not acted'
upon.
The Proceedings.
Prye (rep. Me.) laid before the senate
at the opening today the report of the
secretary of the treasury as to the deposit
of internal revenue funds In national
banks. It was referred to the finance
committee and ordered printed.
Hale (rep.-Me.) offered -a-resolution call
ing on the state department for informa
tion as to what had been done regarding
the seizure by Great Britain of American
products at Delagoa bay. The resolution
declared the property was now detained
unjustly, and without warrant. To the
statement that the property was unjustly
detained, Piatt (rep. Conn.) took excep
tion, believing it ought to be modiflec
Hale said the resolution presented a mat
ter of vital importance, and believed Great
Britain ought to be informed of the senti
ment In this country. On objection by
X-odge (rep. Mass.) the resolution went
over.
Butler (pop. N. C) offered a long reso
lution on trusts and gave notice of a.
speech later.
Sewell (rep. N. J.) then called up the
resolutions he had previously offered, pro
viding that the business of the senate tie
suspended in order that the distinguished
public services and private character or
Mr. Hobart might be fittingly commemo
rated. Sewell addressed the senate in a
beautiful tribute to the dead statesman,
"With whom his personal relations covered
a period extending from early manhood.
He spoke of events In the late vice-president's
private and official career, and of
the characteristics which had endeared
him to the people with -whom he had come
tn contact.
Daniel (dom. "Va.) followed Sewell, re
fecrlng eloquently to the roll of Illus
trious men who had filled the position 01
Vice-president of the United States.
Senator Depew's Address.
Depew (rep. N. T.) paid an eloquent
tribute to the memory of Mr. Hobart, who
was a. long-time personal friend. Depew,
"Rho thus addressed the senate for the
first time, was at his best In voice, and his
oration was listened to with deepest at
tention. He said:
"In mldocean, on one of the great steam
ships, some years ago, a gentleman ex
tended his hand and said: 'I am Garret A.
Hobart, of New Jersey. I know you, ana
want you to know me. Afterwards, in
the confidences of fellow-passengers on
the sea, he said: 'The value of success
Is not so much in the things It enables
you to do, as the consideration It gives
you in the minds of others. I have heen
successful, and I want that understooa
and appreciated. In this Incident cama
out the character of the man - The fresh
ness, the frankness, the unspoiled joy ot
the boy, as happy over the things whlcn
gave pleasure and Importance to his
friends, as he felt sure they would be over
his own advancement.
"The financial distress which caused
hard times in 1891 and 1S53 produced a
Widespread spirit of pessimism and de
spair. It resurrected the question, Us
life worth the living?' wjilch.had been dis
cussed nightly .at Athenian .dinners In tne
time of Plato and Socrates. The doubt
is not American. Its most emphatic ar
firmation is evidenced in the life and ca
reer of our friend. He was an illustration
of what is possible under American con
ditions and with American opportunities,
with equal laws for all, and no class or
privilege barring the way to the highest
places in the land. At 19 he was a grad
uate, of Kutgers college, and ior six years
teaching school and studying law; and at
25 he was called to the bar, andbegan
bis battle with and in the world. "Without .
money or influence, but with brains, edu
cation, heaitht industry and character, his
was the typical beginning of most of tne
youth of our country His confidence in
himself and his future led to an early mar
riage, and an Ideal domestic life. At 55
he was among the foremost citizens of his
state in every department of Its activities.
He was a leader in his profession of the
law and of his political party; he had been
repeatedly honored by his fellow-citizens
in positions of trust and power; he haa
accumulated a fortune, and was vice
president of the United States.
"The idle and the Incompetent will find
no comfort here for their favorite theory
that life is luck. He had the good for
tune to be descended from that mlxea
Dutch-English ancestry, which ha& the in
spiration of glorious traditions of civil ana
religious liberty, of literature and adven
ture, of art and arms, of Indomitable en
durance, of conquest over all obstacles and
of strenuous endeavor, which no difficulties
can discourage. It was his happy lot to
liave his career to work out In this repub
lic, and in the latter half of this marvel
ous 19th century. With these advantages,
common to millions, fortune withdrew her
assistance, and the bnlllant example wo
contemplate was the result of the
energy and anility of this fine
specimen of a seir-made man. At
the threshold of his career, by pro
fession and membership, he proclaimed
himself a Christian, and as he began, so
he continued until his death a consistent
child of the church. His was not the re
ligion which in Jonathan Edwards' perioa
filled the churches with terror and emptied
their pews, but the religion of the Evan
gelist Moody, which rests upon the golden
rule. Preferring always his own way,
he recognized, with a broad charity, that
the paths pursued by others led to the
same heaven, and could be more easily
trod by them. He had no aggressive faith
which fought on dogma other creeds and
sects, but he was at all times active :n
the good works which are common to an
creeds and all sects.
"The scholar in politics Is the familiar
theme for academic discussion. His duty
to participate all admit, his usefulness is
often doubted. He too frequently lacks
that touch with affairs and knowledge of
men which are necessary, to gjve him the
weight in party councfts. "due. tp his char
acter and culture," -
The -business man hV polities is the hope
bt the present and future". The measures
we carry here aro reflected m the markets
of the world, ahd react upon the farm, the
factor', the furnace and the mine. Their
Influence for good or evil Is felt in every
nome. They tie government and its poli
cies so closely to the manufacturer, mer
chant, farmer and mechanic that business
ls politics and .politics Is business. Men
of fortune or of large affairs often affect
contempt for those In public life and de-nounco-wlth
unbridled license the conduct
of national, state and municipal matters.
ihey complain bitterly of taxes and the
burden of government. They are entitled
to no sympathy. They are suffering. If
a,t all, from their own want of apprecia
tion of their duties as citizens and of pat
riotism. "
"Mr. Hobart was, during his whole ca
reer, the lawyer and man of business, who
Jkpenly understood , and laboriously lived
up" to "a "high ideal' of citizenship. His
party .found him at .the , caucus and at
lie?pbTis. "He had "tlmVfor conventions
and public meetings. He could promote
the best interests of his state by service
In Its legislature, or remain in retire
ment while working diligently for the nom
ination and election of those best fitted
for the offices to be Tilled. Charles James
Fox- said Iff EdmundBurke, that 'he was
right, but Tight tod soort.' His speeches
emptied the house of commons in his time,
but In our day are text-book and manual
for British statesmen. -Statesmen and re
formers of this prophetic order sow the
seed, but they do not govern. Wendell
Philips, Lloyd Garrison,1 Lovejoy and John
Brown created conditions which made It
possible for Lincoln to act. Successful
leaders grapple with the work-a-day el6
ments about them, and combining the con
science and Intelligence of the hour, solve
the problems which more immediately con
cern their constituents and their country.
The vice-president was of this class. Ho
was not troubled with Illusions, nor bound
by theories. He pitied the man who per
petually longs for the good old times and
mourns the decadence of the present, and
sympathized with the 'far "more Useful one
who is providing for the unborn millions
of the coming century. His lot was with
neither. Acute questions, financial, indus
trial, international or moral, are always
knocking at the door. Their settlement is
vital to the position of the country among
nations, or to the comfort and happiness
of Its people. Mr. Hobart was not a state
builder nor a prophet, but he was among
the master workmen who, as the years
go by, slowly perfect the structure of gov
ernment hy providing for its present needs,
and are digging trenches or leading the as
sault against those who would destroy It.
"The Joint Traffic Association was a
conference of the 37 railroads which carry
the traffic of the country between the in
terior and the Atlantic coast Their quar
rels and rate-cutting Injured their invest
ors, demoralized business and promoted
trusts. The members were not capitalists
nor speculators, but the hard-headed and
able managers of these corporations who
had come up from the ranks and adopted
the operation of railways as both a career
and a profession. Their efforts to cure the
evils of the situation were doomed, to fail
ure from the jealousies of large companies
and the fear of small ones and the lack
of any power to enforce their agree
ments. By unanimous -vote they selected
G. A. Hobart as arbitrator. The questions
submitted to him involved the revenue of
the disputants and the movement by one
route or another of a vast volume of
freight No judge ever held office by so
precarious a tenure or had to decide more
important matters. The defeated litigant
could refuse to submit, or, by carrying
a charge of injustice, unfairness or In
capacity Into the governing body, compel
a resignation. AS chairman of the asso-olntlon-
T was brought- in frpnnent contact
Ith him, his work and Its dlfflcultfes. He
administered that judicial responsibility
for three years, resigning during the first
years of his vice-presidency. There could
be no more significant tribute to his un
failing judgment, tact and character than
the remarkable fact that there was never
an appeal from his decisions, nor com
plaint of their fairness and justice. 'In this
demonstration Is ifound the secret of his
success,
"yery many In our country rise, by their
own exertions, from nothing to affluence.
The rapid evolutions caused by steam,
electricity and invention, give numberless
opportunities for the far-sighted and cour
ageous to seize the hand of fortune be
fore their fellows know of her presence.
These capable men of affairs are of two
classes the class who make what otheis
lose and the class who benefit their asso
ciates or the community or the whole
country by the developments they promote
and the enterprises they create. The first
are the pirates of society and of businsss.
They are the fathers of communism and
the foster-fathers of anarchy. The others
are among the benefactors of their time.
It was the characteristic of our friend tha t,
possessing the far-sighted faculty, and
having the sense and training to keep the
curbof caution upon the promptings of
acquisitiveness and Imagination, he drew a
large circle Into his plans and ail -shared
in the profits of his undertakings.
"The founders of the republic meant to
provide for a successor to the president
who should be equally worthy of the chief
magistracy. But the machinery they de
vised gave the vice-presjdent no voice in
the government, and created an inevitable
antagonism between him and the presi
dent It revived in a form the old historic
struggle of the able and ambitious heir
for recdgnltlon and Influence In affairs of
state. The contest began during our first
administration. Confidence and cordiality
were impossible between the self-centered
Washington and the Imperious Adams.
With Adams and Jefferson was the mu
tual repulsion of the Puritan and the Cav
alier. In Jefferson and Aaron Burr the
revolutionist was seeking to destroy the
patrlpt. The practical -Ja'ckson and the
Philosophic Calhoun were soon at war.
The man of action threatened to hang the
theorist If he carried his Ideas to their
logical conclusions. With the growth of
the country, the strength of parties and
thelr internal dissensions, the vice-presidency
was thrown to the friends -of dis
appointed candidates and at disaffected
states to select the nominee and be ap
peased. Fillmore and Arthur discarded
the friends of the dead president, and
Tyler and Johnson reversed their politics
and policies. The power in control at the
White House and In congress sought to
minimize the vice-president and make him
obscure and Innocuous.
"Happily for Mr. Hobart there was no
conflict over candidates in the convention
which nominated William McKinley. The
partisans of defined policies had selected
him as their best exponent In advance.
There were no disappointed and vengeful
Interests tc be reconciled. The choice set
tled upon Hobart as the most fit and avail
able running mate for the Ohio statesman.
Coming thus Jinto this high office, his
talent of common sense, and his charm of.
personality made him, from the begin
ning, the friend and chosen counsellor of.
the president He lifted the office out of
the rut of conventionality and possibility
to a position of dignity, usefulness and
trust He won the warm, affection of his
party associates and the esteem and re
spect of his party antagonists. He had
the, fadulty pf the "wisely busy man of 'al
ways having plenty of time, and that he
shared with his friends in that hearty and
healthy companionship which has made
his name a hospitable memory at the capl- I
ioi. unougn ne aiea in nis prime, with
apparently years of usefulness before him.
yet his was a full and rich life and a nobly
rounded career. It is fitting that such a
man should fall in battle with his aimor
on. The conspicuousness of hfs departure
gives luster to his example. Statesman,
citizen, husband, father, friend, the sum
Of hie worth among us Is that he per
formed, with faithfulness andfidelity, with
conscientious care and magnetic ardor, ail
the duties of public and private life."
Demonstrations of approval by the oc.
cupants of the galleries greeted Depew's
speech.
Other Tributes.
Cockrell (dem. Mo.) was the fourth
senator to eulogize the dead vice-president
His busy. Industrious, honorable
and successful career, said he, can, well
be held up to Inspire the. youth of -our
country. It is not detracting from any
of his predecessors to say that he had
few superiors in his office.
Cullom (rep. III.) Said: "Mr. Hobatfs
life was stainless and his whole career
contained nothing which, dying, he could
wish to blot out. His loyalty to his
friends reached In Its intensity the point
of genuine chivalry. He built up a repu
tation for simple, honest performance of
duty, which all of us may well emulate."
Scholarly ahd eloquent was the tribute
paid to -Mr. Hobart's memory by Javia,
(rep. Minn.). He regarded Mr. Hobart
as a man of very simple character, but
that character was beautiful, strong and
consistent As the presiding officer or
the senate, his work was marked by great
alertness of perception and thorough
knowledge of Situations and of men.
Morgan (dem. Ala.) pronounced Mr. Ho
bart's a perfectly rounded American char
acter. Mr. Hobart's death he regarded as
a public calamity, because the government
lost-thereby, .the great balancing power or
his ability and genius -in the office of vfce-,
president.
Chandler (rep. N, H.) said Mr. Hobart
was never weak nor undecided, and in
strength of character "he 'was, one of tne
greatest of men, yet his perfect geniality
renqerea mm tne choicest Qf comrades, and
one of the sweetest and dearest of friends.
Lodge (rep. Mass.) spoke strongly and
effectively of his relations with Mr. Ho
bart. Caffery (dem. La.) regarded Mr. Hobart
as an Ideal presiding officer, absolutely Im
partial and animated only by the highest
motives. No more kindly or courteous
man ever presided over a deliberative as
sembly in the United States.
Allen (pop. Neb.) said It afforded him a
mournful pleasure, notwithstanding po
litical differences, to testify to his regard
for Mr. Hobart He regarded him as
honest, faithful and of eminent character.
The concluding address of the day was
delivered by Kean (rep. N. J.), who sala
Mr. Hobart had not only the desire to De
useful, but he knew how to be so by the
shortest course. Loyalty was one of his
strongest characteristics, and to his coun
try and to his friends he gave his timt
and best abilities. No question was ever
raised as to his honesty and deflnltenesrf
of purpose. He made friends easily, ana
as easily kept them.
At the conclusion of Tfonn's nnlnirv of
4:35 P. M., as a token of additional re- J
spect, tne senate adjourned.
IN THE 'HOUSE.
Eulogies on the Life and Services
of the Late Representative Greene.
WASHINGTON, Jon. 10. Miscellaneous
business of minor Importance occupied
the attention of the house today until
10 o'clock, after which an hour was de
voted to eulogies upon the life and public
services of the late Representative Greene,
of Nebraska. The house then adjourned
until Friday.
When the house met, the order for eulo
gies upon the life, character and public
services of the late Representative Dan-
ford, of Ohio, set for tomorrow, was va
cated, owing to the inability of his suc
cessor, Mr. Gill, to be present.
A resolution by Tawney -(rep. Minn.)
calling upon the.secretary of the treasury
for information as to the states in which
oleomargarine Is shipped and distributed,
the amount in pounds, and the number of
licenses for its manufacture, was adopted.
The remainder of the session, after that
hour, was devoted to eulogies upon the
life and public services- of the late Repre
sentative Greene. At 2:10 P. M., as a fur
ther mark of respect the house adjourned
until Friday. - .
EXTENT OF THE CUSTOMS LAWS." '
House Committee to Ascertain the
Meaning of Term "United States."
WASHINGTON, Jan. 10. The ways and
means committee of the house held a
meeting today at which an important res
olution was adopted on motion of New- (
loauo vri. iicvuuo, aa i.iruirw&. J -t
"Resolved, That a committee of five be
appointed by the chair to report the au
thorities and the law as to the meaning
of the term 'United States' In that provis
ion of the constitution which declares
that 'all duties on imports and excises
shall be uniform throughout the United
States'; that is, whether it Includes sim
ply the area Included within the bounda
ries of the states, or whether it covers
also the territories belonging to the
United States.'
Chairman Payne appointed Dalzell (rep.
Pa.), Grosvenor (rep. O.) and Hopkins
(rep. 111.), and Richardson (dem. Tenn.)
and Newlands (sii. Nev.).
This resolution was the outcome of con
siderable discussion in the ways and
means committee, covering several meet
ings, as .to whether the customs laws of
the-United States were not "extended td
our possessions when they became United
States territory. The Immediate cause of
its adoption was a resolution to extend
the customs and internal revenue laws
of the United States to Hawaii, which it
has under consideration.
THE FLOUR SEIZURES.
Hnle's Resolution Calling on the Sec
retary of State for Information.
WASHINGTON, Jan. 10. Senator Hale,
of Maine, today offered the following res
olution regarding the alleged seizure of
American flour by the British govern
ment: "Whereas, The property of eitlznna nf
the United States not contraband of war '
nas Deen lately seized by the military au
thorities of Great Britain near Delagoa
bay, South Africa, -without goqd reason
for the same, and contrary to the accept
ed principles of International law; and,
"Whereas, Said property 13 now uhjust
ly detained by the military authority of
Great Britain in disregard of the rights
of owners-6f the same; therefore, be It
"Resolved, By the senate of the United
States, that the secretary of state Is here
by requested to send to the senate all in
formation in possession of the state de
partment relating to said seizure and de
tention, and also to inform tha senate
what steps have been taken in requesting
the restoration of property taken and de
tained as aforesaid, and whether or not
the department has Informed the proper
British authorities that if said detention
is persisted in such act will be considered
as without warrant, and offensive to the
government and- people of the United
States."
Explained Alaska's Needs.
WASHINGTON, Jan. 10. Governor
Brady, of Alaska, and a delegation from
Cape Nome appeared before the house
committee on public lands today. The
governor spoke on general conditions in
Alaska, and in particular urged the ex
tension of the general land laws to the
territory. The members of the Cape
Nome delegation pointed out the present
land conditions in the gold country, in
some cases pipes are run down half a
mile out frQm the shore and the rich sand
brought up, making it likely that the
land laws will have to' be made to apply
to water privileged.
The committee took no action, except on
private bills, but the discussion indicated
that Chairman Lacey's bill extending the
land laws to Alaska would be favorably
reported later.
To Destroy the Trusts.
WASHINGTON, Jan. 10,-Senator But
ler today Introduced a. resolution declar
ing" the "duty, power and purpose of "the
government to destroy trusts by remov
ing the causes that produce them." The
plan proposed is to control the issuance
of money and to control the railroads and
telegraph and telephone lines by the gov
ernment when the resolution sets forth
"the three greatest trusts for evil known
to civilization will have been destroyed
and at the same time the causes which
have- logically -and inevitably produced, the
aggregation of great -industrial trusts "will
be forever-removed and the-reign of mo
nopoly will -be at an end.''-
J
GAGE GIVES HIS REASON
WHY GOYEnNaiktf'T FUNDS were
DEPOSITED IN NEW YORK BANKS.
Withdrawn of the Money From Cir.
r, culatlon Would Havo Disturbed
Business Action Authorized.
WASHINGTON. Jan. 10. Secretary
Gage today sent to congress his replies to
the resolutions recently Introduced in the
senate by -Allen and in the hoUse by Sul
zer of New York. The text of his reply,
which Is an exhaustive exposition of the
management of that brahch of the treas
ury flri.an6es under his administration re
lating to national bank depositories, con
tains about 9000 words, which js supple
mented by special reports from depart
ment officials relative to the special in
quiries in the resolutions. Including copies
of over a thousand letters on the subject
under consideration-. In -summing up his
reply to the inquiries, the secretary says:
"First That the reason for utilizing na
tional banks as depositories for public
moneys, as authorized by law, when the
recelptB of the treasury were exceeding
its expenditures, has been to avoid dis
turbance to business which the with
drawal of large sums ot mohey from ac
tive circulation to the treasury vaults
must inevitably cause. The policy thus
pursued by me has been the established
policy of the government for many years,
and departure from it under similar con
ditions would certainly cause disastrous
results.
"Second The reason for directing the
Internal revenue receipts, into depository
banks at this time Is that the revenues
are now largely exceeding disbursements
from month to month, and are likely to
do -so for an indefinite time. This condi
tion would be a menace to the business
world If thoassUrance were, not given that
this-surplus would be diverted from the
treasury vaults to public depositories,
where, while secure to the government,
1 It would remain available to the busi
ness world.
"Thlrdr-The reason for directing all In
fernal revenue receipts to one depository
was that it was more convenient to col
lect the receipts of one office in one place
and make the desired distribution from it
than to give instructions daily to 113 col
lectors. The most convenient agency to
effect such distribution is a bank which
is a hiember of the New York clearing
house. ''Fourth Tho reason for selecting the
National Glty bank ns such distributing
agent was that at the time the order
was issued it was one of but two banks
which had offered bonds sufficient to
cover the amount of the daily deposit.
Its bond deposit was $4,000,000, and: thaftof
the Hanover bank $1,950,500. The National
City bank was therefore the one most
naturallychosen. Of tne 68 banks applying
for rrshare.'HJfjthe deposits, the National
City Bank; th6Hanover National bank and
three other-applicants for over $S,WW,000
each are the only ones out of the 68 con
stituting the group which have not been
supplied the full amount for which they
had offered security.
"Fifth The custom-house property was
sold to the National City hank, as the
highest bidder, on July 3, 1829. Under the
terms of the sale It had the option Of
paying-In-cash-all-of-the purchase money
at. any .time, or. any part lt might elect
above $750,000, which sum It was absolutely
obliged to pay. -It exercised this option
by choosing to pay $3,215,000, leaving 550.000
yet due. No deed will be executed until
full payment has been made. The pay
ment leceived was turned into the treas
ury under counsel of the legal
advisers, supported by decisions of the
; supreme court, to consider moneys on de
posit to the credit of the treasurer 01 tne
United States in designated depositories
as money In the treasury. This deposit
was made in the depository bank for tho
same reason that other deposits have been
made In them, viz.: Because to
withdraw currency into tho vaults
of the treasury, where It was not
needed, and could not be utilized, would
have required a withdrawal of credit
that was being expended in commercial
circles, and to that end a disturbance to
the natural order of business would have
followed. To have required its payment
by the National City bank to another des
ignated depository would have been an
ungracious discrimination without sub
stantially changing the fact.
"Finally, under my administration of
the treasury department, no discrimina
. tlon in, favor qf one. bank against another
has been made. Generally fapeaking, when
an increase in depository banks was de
sired, all have been invited to qualify
themselves for receiving such money and
have been equally and equitably consid
ered in their respective relations to the
treasury."
Before proceeding to respond to the res
olution specifically, Secretary Gage gives a
general review of his whole course In the
branch of public finances concerned with
national bank depositories as follows:
He notes the provisions of the statutes
which make "all national banking asso
ciations designated for that purpose by the
secretary of the treasury, depositories of
public money except receipts from cus
toms, under such regulations as may be
prescribed by the secretary." Thatistatute
became a law June 3. ismi anthats jurst
marked recognition was In the refunding
operations of 1S79, when Secretary Sher
man thought It necessary to place with
national bank depositories sums of money
which reached a3 high as $279,544,G45. Sec
retary Fairchlld, In 1S87-8S, during a period
of 'abnormal receipts of revenue, Increased
the number of depository banks and al
lowed such banks to accumulate balances
reaching $61,50,000. March 1, 1897, there
were 159 national bank depositories holding
a total of $16,19S,410. With few exceptions
these Institutions received deposits from
internal revenue collectors and remitted
to the subtreasurles any surplus? over the
amount of the C per cent balance which
they were permitted to hold.
The amount of public deposits remained
about the same during the first six months
of this administration. In November be
gan those large payments which resulted
from the highly successful settlement of
the Union Pacific railroad indebtedness,
payments aggregating $58,448,223. It was
thought expedient, as a part of this enor
mous transaction, to utilize for a few days
the services of depository banks, with the
result that at the end of December, 1897,
such deposits had Increased to $49,182,717.
The reason for this action was to avoid
the Injurious effect on trade and industry
of a too sudden withdrawal from public
uSes In the vaults of the treae3ury of so
large a sum as $58,000,090 By the end of
May, 1898, these public deposits had been
reduced to $28,239,359.
Soon after this the government was con
fronted with the necessity of raising im
mediately a large fund' for war purposes,
and, acting under the authority of the war
revenue act, the people were called upon
to subscribe to an issue ot $200,000,000 of
bonds. The day tho books were opened
the National City bank, of New York, and
Its associates, offered to take at par and
accrued interest any portion of the bonds
that might not be subscribed for by the
public, and the same day, J. P. Morgan
& Co, ahd their associates, numbering 15
of the greatest financial houses of the
country, also subscribed to the entire issue
of $2QO,000,000 or apy part that might not
be subscribed for by the general public. It
wilL be readily recognized that the ab
sorption of $200,000,000 within the space ot
a few weeks could not fall to disturb most
seriously the general business of the coun
try. The secretary of the treasury feels
some measure of just pride that the finan
cing of the war loan of 1898 was accom
plished without the slightest Interruption
to the revival of commerce and tf Inrhm-
trles- of- the country fvhich has made the
present -a perlpd of; .unexampled prosperity.
By the tend of 1898 the number ot na-
tionaj bank depositories had been increased
to'316, located 'hr 43 states and territories,
and holding $94,860,000. With a view to
securing a more suitable distribution or
the funds, the secretary early in 1899 des
ignated 40 or 50 additional depostories, and
while thus Increasing the deposltbriea out
side of New York city, he at the eamo
time drew down the balances In the New
York banks.
With the beginning of the present fiscal
year the, treasury was feeling the Influ
ence of the revival of commerce. For the
six months ending with December SI, 1899,
the excess ot receipts over expenditures
aggregated $21,026,000. This absorption or
money from an active use into the treas
ury, where It could serve no present useful
purppse, was a source of apprehension to
the public, and of anxiety to the depart
ment The situation was intensified by
the fact that the fall movement of cur
rency to the Interior for the movement
of crops operated to reduce tho cash re
serves at all commercial centers. Tlio
secretary was Indisposed to increase de
posits In public depositories, and Jn order
to avoid that he offered to anticipate in
terest on the public debt, and later offered
to buy $2o,000,000 of bonds.
The movement toward stringency in the
money market had assumed too great a
momentum to be averted by such means.
December 18 a financial panic occurred.
Prices of Investment securities fell ruin
ously. Interest rates rose to fabulous
figures, and a general constriction of tne
money market was apparent. While tnis
state of affairs found lt3 most violent ex
pression In the security market, it excitec.
a state of anxiety and alarm throughout
the industrial and commercial communi
ties. The situation was believed to be
so grave as to justify the utmost inter
ference. . The receipts of the treasury
for December, it was perceived, would
exceed the expenditures by $7,000,000 oc
$8,000,000. Under these conditions, a
peculiar responsibility was thrown upon
the treasury.
The statutes conferred authority to place
public money, except customs. In designat
ed depositories, and gave power to relievo
tho situation without possible prejudice
to the treasury's needs. It was, there
Jforet announced December 18 that the sec
retary would deposit Internal revenue col
lections with .depository banks to ihe
amouht.of $CO(000,000 , on. $40,000,000, should
s6 anuchbe applied for. " -, ,'
"From this point on the secretary makes
direct answer to the congressional Inquiry.
His- principle of action has been so to
manage the receipts and expenditures aa
to produce the least disturbance In that
part of the money supply which must be
at the service of commercial and indus
trial use.. Since" June 1, 1S9S, the receipts
of the treasury h&ye amounted to $1,100,
000,000. Bytbe aid of depositories, tho
amount in th'e treasury at the close of any
quarterly period during the time never
rose more than $29,500,000 above the aver
age for the whole period. Tables pre
sented show that substantial equilibrium
was maintained at all times between tne
relation to the supply of money in tn
treasurr and the supply in commercial
uses. . ,
Taking up tho, history of the. govern
ment's connection with the Hanover Na
tional bank and the National rtv hnmr
specifically Inquired into by the resolution
the secretary shows that the National
City bank was appojnted a'deposltory July
21, 1S94. It was used as a depository for
Interna; revomle collections until the bond
sale In 1895 when the then secretary or
liio treasury deemed it advisable to use
that bank, together with four others, as
depositories, and about $23,000,000 was de
posited with those banks. When another
Issue of bonds was made in February, 189G,
the then secretary of the treasury again
used the- National City bank and tne
Hanover bank as depositories, each for
nearly $10,000,000.
Late In 1897, more than $58,000,000 was to
be paid lnte the treasury as the result
of the Union Pacific settlement. To avoid
the transfer of so large a sum from pub
lic uses to the treasury vaults, the New
York banks were Invited to qualify as
temporary depositories. Eight banks so
qualified, the National City for $24,000,000
and others for smaller amounts Thto
f deposits were gradually withdrawn by
.luuamr io me suotreasury, until the
small balances were finally discharged
When the $200,000,000 war loan was made
it was seen that the paying into the
treasury of such a sum could not be
otherwise than a dangerous thing fpr the
public interests and a useless thing to the
government finances. The treasury an
nounced to the national banks Its de
sire to place temporarily on deposit a por
tion of this amount, and all banks', with
out regard to size or location, were in
vited to qua'Ify as temporary depositories.
All applications were accepted. None was
refused. The National City bank denoslt-
ed $14,000,000 of bonds, and the balahce3
paid on this account never exceeded $14,
000,000. The Hanover National bank depos
ited $11,000,000 of bonds and received a
balance never larger than $11,000,000.
The connection of the National City
bahk with the sale of the oldcustom-hoUse
property In New York is described In a
memorandum prepared by the supervising
architect's office. In that connection, how
ever, the secretary calls attention to the
allegation that ho has violated the law by
depositing the proceeds In a bank de
pository, when the act decreed that the
proceeds should be deposited "In the
United States treasury." Every United
States depository bank is, within the
meaning of section 5153, of the revised
statutes, a part of the United States
treasury. The moneys which may be de
posited in such a bank include all classes
of receipts, except customs, and when
such moneys are deposited in such a bank
to the credit of the treasurer of the
United States they are "in the treasury"
just as much as If they were physically
on deposit la the treasury at Washington.
The secretary cited decisions of the su
preme court, which establish beyond ques
tion the legality of his action. Letters
from men of 30 or 40 years' service In
the treasury are quoted showing that
money in a depository bank Is as much
deposited In the treasury of the United
States as when deposited In any sub
treasury. The customs property was sola
July 3, 1899, to the National City bank
for $3,265,000, which amount was $190,000
larger than that tendered by the next
highest bidder. August 28 certificates of
deposit were forwarded to the department
covering $3,210,000 credit as proceeds of
the custom-house property In the general
account of the treasurer with the National
City bank, a depository bank. "The treas
urer duly accepted the Tunds as a deposit
In. the treasury." It was subject to his
jurisdiction and. orders.
Subsequently, the National City bank
was ordered by the treasurer to transfer
to the sub-treasury and other national
bank depositories sums aggregating $3,
800,000. No rent has been paid to the
National City bank for tho government's
occupancy for the reason that such pay
ment awaits appropriation by congress.
The correspondence between the depart
ment and the National City bank is
quoted, showing the refusal of the depart
ment to give-tho National City bank its
full balance of $4,000,000 except concurrently
with all other banks in the first jttoud.
the balances of the National City bank
and the Hanover National bank being
built up pro rata with all other banks.
Tribute to the Philadelphia's Heroes.,
WASHINGTON, Jan. 10. By the terms
of a joint resolution Introduced In the sen
ate today by Turner of Washington, the
secretary of the navy Is authorized to
erect at the naval academy at Annapolis
a marble monument to the memory of
Lieutenant Philip V. Lansdale, Ensign
John R. Monaghan and the men who lost
their lives in battle with the Samoans In
April, 1899. The resolution appropriates
$5000 for the monument, and provides that
it shall be suitably inscribed.
Officers of the Senate.
WASHINGTON, Jan. 10. The republi
can senators held a caucus today to con
sider the subject of electing 'officers of the
senate. There was a general Interchange
Of dplnloh regarding the matter, and an
adjournment was taken until Friday, the
19thj when it is expected some action will
b takeni
remn
use your Peruna medicine in my family for colds
and it has proved to be an excellent remedy. "
Ask your druggist for a free Pe-ru-na almanac for the year 1900.
FOURTH DAY ON THE STAND
WHITESIDE STILL TESTIFYING
THE CLARK INVESTIGATION.
IN
Ex-Senntor. Faulkner Is Not Through,
With Him, and Will Try to
Impeach His Testimony.
WASHINGTON, Jan. 10. The senate
committee on privileges and elections held
only one session In its hearing In the
Clark senatorial election case today. Ex
State Senator Whiteside, of Montana, was
tho only witness. It, was the fourth day
of tho examination. 'When the committee
adjourned, at noon, Faulkner announced
that he had for the present concluded the
cross-examination of Whiteside, but that
he would ask for his recall later, In order
to propound pertain questions which he
was not yet readjjlfto put, and upon which
ho would undertake to Impeach his tes
timony. Campbell; representing the anti
Clark petitioners, also stated that he
wished to ask a few more questions on
redirect examination, and on this account
It is expected Whiteside will be on the
stand when thehearing Is resumed tomor
row. y
Ex-Senator Faulkner's effort today was
directed toward entangling Whiteside up
on dates and exact statements made as.to
the transactions in connection with
Clark's election to the senate, and he
went fully Into the deposit money" by
him. Faulkner brought oiSKthe fact that
of the men to whom the wftness knew of
his own personal knowledge that money
had been paid, only two had subsequently
voted for Clark, and that there was no
clear understanding as t& the full transac
tion with those two. Whiteside closed
with tho renewal of his declaration that
he believed himself to be serving the state
of Montana In his present course, and
with a review of the use of the money
in state affairs which had incited him
to it
Ex-Senator Faulkner began the day's
proceedings in an effort to break down the
testimony of Whiteside, concerning the
part taken by State Senator Clark, of
Madison county, In exposing the alleged
misconduct of his namesake in connection
with the senatorial election. Whiteside
repeated his statement that he had seen
Clark of Madison go alone to the room
of Wellcome, one of the managers for
Senator Clark, and -also that Clark of
Madison had asked one day to consider a
proposition to enter Into an agreement
to expose the alleged bribery proceed
ings. He asserted that the suggestion
that state senators' votes could be secured
had not originated -with him, but with
Wellcome. He said many of these points
had not been touched upon at the legis
lative Investigation before the grand jury
because both these proceedings were com
paratively brief.
At Faulkner's Instance, Whiteside went
over the details ot the transaction with
State Senator Myers, who was onb of his
associates In the alleged exposition, and
also told again the circumstances under
which the money was given to him. Both
transactions had been conducted in the
bathroom of Wellcome's room at the Hel
ena "hotel. Whiteside also detailed some
of the particulars of a visit he made to
New York and Washington In February
last year. He said he had met here,
amortg others, Campbell, the counsel in
the case, and Durston. He had not met
them by appointment, but they had dis
cussed whether they should make their
disclosures to congress before the ad
journment last March, or wait until the
beginning of the present session. He and
Campbell had been the most active agents
in the present prosecution.
Replying to a question as to whether the
Daly faction had ever used money in pol
itics, Whiteside said he did not know that
charges of such use ot money by Daly
had been made by the newspapers friendly
to Clark, but that tha corrupt practices
had begun in 1S93, when Clark was a can
didate for senator, and had continued
throughout the stato capltol fight, when
money was poured out like water, and In
the subsequent sessions of the legislature
until last session, when the climax was
reached. He had determined to do what
ho could to put a stop to the practices,
hence his activity n this prosecution.
Faulkner then announced that for the
present he had concluded his examination
of the witness, but later, when his ques
tions were properly formulated, he wodld
ask to have him recalled, with a view of
putting questions to be used as a founda
tion of proceedings looking to the im
peachment of his testimony.
Will Vote on Roberts Case Today.
WASHINGTON, Jan. 10. The Roberts
Investigating cojnmittee met In executive
session today to determine on the general
features of the report, and. If possible,
reach a final agreement. The committee
was In executive session till 6 P. M., but
failed to reach a final conclusion, and ad
journed until 3 P. M. tomorrow for the
purpose, at that time, of taking a vote.
EXTENSION OF SHIPPING.
Hcarlner hy the House Committee on
Merchant Marine.
WASHINGTON, Jan. 10. The repre
sentatives of the shipping and shipbuild
ing interests were given a hearing today
by the house committee on merchant ma
rine and fisheries on the bill "to promote
the commerce and Increase the foreign
trade of the United States and to provide
auxiliary cruisers, transports and sea
men for government use when neces
sarv ." Ex-Senator Edmunds then sub
mitted a general argument in favor of
the measure.
Mr. Edmunds said that one of the groat
and fundamental principles of the bill
was that it gave no scope for combina
tions or syndicates of shipowners and no
field for trusts, as its operation was open
to all alike, and the advantages conferred
were as free as the ocean Itself. He urged
that if we are In earnest as to the exten
sion of American commerce, some broad
measure of this character could best aid
In bringing about that end. Mr. Ed
munds said discrimination was a remedy
open to all nations. If begun by the
United States, it would quickly be fol
lowed, by our great commercial rivals,
each discrimination being retaliated In
kind on duties, harbor charges, etc., so
that there could be no real remedy on
those lines.
Mr. Edmunds said another plan had
been put forward by some opposing in
terest, he. believed, perhaps- by some of
the railways running through Canada, to
tho effect that this hipping bill Old. not
Wm M' Lord' saysi "T
afford the real remedy, but that an expert
bounty on corn, wheats etc., sent abro?i.
would help the farmer as well as the vessel-owner.
He expressed the belief, how
ever, that such an enactment would be
unconstitutional, being contrary to tho
principles of equality.
Messrs. Clyde. Nixon and Search also
advocated the bill. Hearings will be con
tinued, next Tuesday.
For military Rule of Islands.
WASHINGTON, Jan. 10, Representative
Weeks, of Michigan, has Introduced a
joint resolution reciting thunsettled sta
tus of the peoples of the Islands ac
quired from Spain and providing that f jr
five years tho presidont. as commander-in-chief
of the army and navy, shall con
tinue military authority in said Islands,,
and that congress shall deal with tho
subject at the expiration of this period.
In the meantime, it is set forth that reci
procity reductions not exceeding 23 per
cent may bo made on tho products of tho
islands brought to this country.
Four New Renr-Admirals.
WASHINGTON, Jan. 10. The president
today sent the following nominations to
the senate:
To be rear-admirals Henry L. Howl
son, Albert Kautz, George R. Remeny,
Norman H. Farquhar.
Pension for Every Soldier and Sailor
WASHINGTON. Jan. 10.-Senator Allen
today Introduced a bill granting a .pen
sion of 10 Mf month-to- srjt-sbldler and""
sailor who served in the civil war for
three months or more.
Woman Snixrapre Amendment.
WASHINGTON, Jan. 10. Representa
tive Shafroth, of Colorado, introduced a
resolution presenting a woman suffraga
amendment to the constitution.
Dnily Treasury Statement.
WASHINGTON, Jan. lO.-tfoday's state
ment of the condition of the treasury
shows r
Available cash balance $2S5.063"Sl
Gold reserve 233144.1J3
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