Southern Mercury. (Dallas, Tex.), Vol. 22, No. 14, Ed. 1 Thursday, April 3, 1902 Page: 4 of 16
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SOUTHERN MERCURY
Thursday, April 3, 1902.
1
CARPET-BAGISM IN CUBA. returned to him by Rathbone. The country banks, $296,421,440 is in the re-
Havana, March 29.—The verdict in latter was acquitted on the charge of serve city banks.
the Cuban postal frauds cases, as giv- having unlawfully taken a daily allow- One dollar must be counted many
en out, finds C. P. W. Neely, W. H. ance of $5 after the postmaster gener- times to produce the results that are
Reeves and Estes Q. Rathbone guilty al had disallowed his claim. shown by the comptroller's abstracts.
of the main charge of embezzlement of Rathbone, Reeves and Neely were Any one so fortunate as to have re-
over $100,000, and that Neely and Reev- found Jointly guilty, under the postal ceived abstract 24 should examine
es originated the idea of burning the code, of the embezzlement of $102,974, the first page. It will be found that
stamps, to which Rathbone consented, a fine in which amount was divided be- the actual investment—the capital
profiting thereby, though to what ex- tween them. Neely was guilty alone stock—of the 4166 national banks in
tent could not be specified. Neely and of the embezzlement of 21,857, Reeves existence on July 15 last, is $645,-
Reeves, according to the verdict, appro- of $673 and Rathbone of $1,000, while 719,099. The liabilities of these banks
priated $2,817.22 by a series of entries, Neely and Reeves jointly embezzled amount in the aggregate to $5,675,-
charging to the postal fund certain $1,036. 910,042.64. They have in their con-
amounts for wharfage, lighterage and In summing up, the court said the trol $5,020,190,943.63 that does not be-
other matters, for which there were facts brought out showed that various long to them. This represents credits
no warrants or vouchers. Rathbone means had been used by Reeves, Neely —investments of various kinds—upon
also was found guilty of participation and Rathbone to appropriate the pos- which they are receiving interest but
in this. These entries were made in tal funds, but that these should be every dollar of which is a liability.
what is known as the miscellaneous ac- taken to constitute only one infrac- With this tremendous libaility—twice
count. tion of the law, each item not being re- as large as the whole amount of mon-
Rathbone, it was alleged, charged the garded separately. ey in existence in and out of the treas-
department of posts with private ex- Rathbone's attorneys have applied to ury—the national banks hold in cash
penses, such as washing, repairs to his the court for a writ of habeas corpus, a sum equal to only ten per cent of it.
coach, express charges, three boxes of • What does it avail to point to "re-
liquor, Japanese lanterns, gas and cer- a moth-proof bee hive. sources" when cash only constitutes
H r , , For particulars address, with stamp, *
tain household accounts, amounting to bryan tuson, Carthage, n. c.. You ten per cent of them. Liabilities must
It is not possible that this credit ex-
pansion can go on indefinitely. When
it stops, what then?—Flavius J. Van
Vorhis, in Neb. Independent.
$157.25. He was found guilty on this wil1 Please mention paper,
charge, but acquitted on that of paying
for furniture for his house, the bill of
a New York store for furniture and
IT IS SURE TO COME.
be paid in cash. This can not be done
until loans and discounts, overdrafts,
bonds, stocks, mortgages, money due
from national and state banks, money
' . .. „nnnA fw „ The Worst Collapse of Inflated Credit . , " —" '
other articles, on the ground that a due from reserve agents, etc., etc., is
, n . „ . That the World Ever Saw Since
number of army officers in Cuba had
obtained similar articles at the ex-
pense of the government, and that
these expenditures 'had been passed
subsequently by the senate
The Day of John Law.
The influences that are controlling
the financial interests centered about
the central reserve cities, particularly
converted into cash.
There is no possibility that this can
over be done. Our whole financial sys-
tem is based upon a condition of per-
manent indebtedness. We can neither
__ . , „ „ „„ihv New York, are not only detrimental to
Neely and Reeves were found guilty ^ intercsts of bualncssl 8nd go back or stand still. We must go on
of having issued duplicate checks for
com-
expanding credits, increasing indebted-
, . o anH merce, but are dangerous to the bank- . ,° ., ' , ,
salaries of postoffice employees and , , .. ness, individual and national to pre-
* * T3..1u otuI ing interests of the west and south x A
for payment to the Ruis company and ......... „ ... vent immediate disaster. At the pres-
the gas company, the amount involved anc ° e an 8 n e sma er C1 es enj. ra^e increase out aggregate in-
being ll.027.cs. They are also held re- aml towns a" over thc «>untry.
sponsible for $1,858.32 for stamps sold. may be Impossible now to con-
„ vince bankers that the 62 central re- ,
Neely alone was held to be gull y of ^ banks ^ olements o( to erty Any attempt to contract create
debtedness will soon be equal to the
aggregate value of all tangible prop-
fraud in the issuing of four duplicate
warrants for $8,057.61 for salaries of
clerks in the Havana postoffice and
for the purchase of mules. Ho was
found guilty also of having drawn a
duplicate check for $12,000, nominally
issued for the transfer of funds from
the postal account in the bank to the
account of the treasurer and of having
given Corydon M. Rich, his former as-
sistant, $5,000 worth of stamps to sell.
He took hit* salary of $255 before go-
ing to tlie United States the last time.
the 274 reserve banks and that all
these are elements of danger to the
3829 country banks, but the time will
come when they will feel it, whether
they are ever wise enough to under-
stand it or not.
A careful study of the abstracts in-
dicates that some bankers learned
some things by the panics of 1893; a
panic that was . intentionally started
by the leading banks of New York
City. The time will come when the
to decrease the amount of our debt
would bring disaster and ruin to thou-
sands as it did in 1893, when a few
New York bankers deliberately plan-
ned a contraction of credits.
We can not even stand still without
business depression. To prevent this
there must be a continued increase in
the volume of credits. This has been
going on with unusual rapidity during
the last four years.
An increase of bank credits requires
.... "country banks" will find that they an increase of bank deposits. An in-
it was a ogei a so wi u, luuvu can nQ^ do tmsinegs except, by the suf- crease of deposits necessitates ,lf the
commissions in connection with the femnce of the larger banks of the law is complied with, an increase of
Neely Printing Company and the Key- regerye and centrRl reserve citieg. cash reserves, and this requires an
less Lock Company, profiting by this wh(m thpy wm flnd thRt tQ gend Rny increase of money to prevent a finan-
means to an extent greater than $13.- (<onsiderable part of thelr lawful re. cial stringency. The increase by pro-
292. For th s, lowevei, ce y was no 8erv0 be deposited with so-called re- duction of precious metals, unusual as
indicted by the fiscal, as he was extra- agents will be putting, not only has been during the last four years,
dited on the charge of embezzlement. hands, but their heads in the is too slow, so the national banks
It was also charged that he asked jjon.a mou^. have sought and obtained the power to
Reeves to arrange the books, giving Thp natlonal bftnks havo dopo8. issue money. Even this money is only
him $4,600 to do so. He was acquitted ^ Jn the aKgregate of $3,608,316.69 a cr®dit of the government loaned to
for this for the reason given above. It Qn wMch reserves are calcuiated. Of the banka at one-half of one per cent
was charged that Neely also appropri- ^ amount 62 central reserve banks V™ annum. Everything possible has
ated $1,800 in money resulting from hoM Jn the aggregate $l( 080.6661,028.83, been done and ia being done to enable
the sales of stamps by Moya and Mes- the m re8erve city banks hold in the banks to expand credits—to create
cara, stamp clerks at Havana. aggregate $1,522,967,943.00; and the debts.
Rathbone was found guilty of hav- 3829 country banks hold in the aggre- The necessity for increase of money
ing paid the expenses of his wife and gate $1,522,967,381.96. Such deposits in circulation is relieved somewhat by
family on a trip to Santiago and a do not represent money, but bank crcd- the organization all over the country
second voyage to the United States, he its. Out of the deposits said to be of trust companies. The law does not
being unable to separate his private held by the reserve city banks," $157,- require them to carry a reserve or to
f^om his official warrants, and also of 655,847 is In the deposits of the 62 pay on -demand. Almost every bank
issuing two warrants for $500 each. central reserve banks and out of the in cities of any size has Its companion
Reeves appropriated $673, which was deposits said to be held by the other trust company. What will be the end?
SILVER IN THE PHILIPPINES.
The news seems reliable that the
republican senate bill for the future
government of the Philippines will
provide for a silver currency for the
islands, allow free coinage of Ameri-
can silver buillion into Philippine
coins, fix their currency value at their
bullion value, and make them legal
tender to that extent in the archipel-
ago.
In effect, that is a scheme for the
use of silver as the prevalent curren-
cy upon a gold standard basis. The
gold standard currency of this coun-
try can not be successfully used in the
islands, because of the customs of the
people, the character of their exchang-
es and intercourse with neighboring
nations.
But it is not solely to accommodate
commercial necessities in the Philip-
pines that the Republicans have hit
upon this scheme of a silver bullion
currency. They see political capital in
it for coming campaign uses in this
country. They believe that by thus
opening a new and large market for
silver bullion they will placate the sil-
ver producers of the western states
and win back those states to the Re-
publican party. It is argued, further,
that when this market for silver bul-
lion is fully established the silver pro-
ducers will want it maintained indefi-
nitely and will support the Republican
party in favor of a permanent coloni-
al policy.
Consistency with past declarations
regarding silver and its coinage into
"fifty-cent" dollars does not deter the
Republicans from going boldly into
this new-fangled scheme. They want to
win the coming elections and they are
especially anxious to recover lost
ground in the West. This tub to the
silver whale they believe is their last
and best chance to those ends.
What the Democrats will do con-
crening this strange play by the Re-
publicans can no| now be foretold, but
we may be sure that it will not get
through the gauntlet of their criti-
cism without full and clarifying ex-
posure.—Atlanta Constitution.
♦ •
A THING WORTH KNOWING.
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Those afflicted, or who have friends
afflicted, should write at once for free
books giving particulars and indispu-
table evidence. Address Dr. D. M.
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Full proceedings of the Allied Party
Conference will appear in our next is-
sue.
>v
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Park, Milton. Southern Mercury. (Dallas, Tex.), Vol. 22, No. 14, Ed. 1 Thursday, April 3, 1902, newspaper, April 3, 1902; (https://texashistory.unt.edu/ark:/67531/metapth185944/m1/4/: accessed July 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; .