New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-06-21
NATIONAL DEPOsTTARIEs.

The only portion of the National Currency Act in
which any mention is made of National Banks acting
as Repositories of public money" or financial agents,
and of their duties in such capacities Sec. 49, which
is as follows;
That all associations under this act when designated for
that purpose by the Of the Treasury shall be depos
are of public money except receipts from customs under
soh regulations as may be prescribed by the Secetay and
they be employed financial agents OF the Govern
poaries public moneys and financial agents OF the Gov
ernment may be required Of them And the secretary
the Treasury dH require of the associations thus designated
satisfactory security by deposit of United States bonds
and otherwise for the safe keeping and prompt payment OF
the public money deposited with them. and tor the faithful
performance duties financial agents OF the Govern
POridd That every association which shall De Sc
c,ed and dese mated depository OF the public
money shall take and receive at par all of nat0na currency
bills by Whatever association issued which have been paid
the Government FOR internal revenue or for loans or
stocks"
The words A" shall " and Z" may" in the foregoing
section we have ourselves italicized for the purpose Of
inviting attention their special force aud meaning
in this portion of the law.
When the National Bankingsystem was established,
special privileges were conferred upon the banks.
The Government supplied them with notes, which
were made legal tender to the Government for al
most all purposes; and in case of failure of the bank
to redeem its circulation, the Government stood
pledged to do so. So favorable a system Of banking
had never before been offered to the American people.
II is evident that in for these special privileges
the banks were to be compelled, if need be- part
of their duty to become repositories of public
money" Hence, the law in prescribing their duties
declares that they shall be So but when speaking of
them as financial agents. it says, they may be also
employed as financial agents. evidently making the
one compulsory and the other optional.
Yet instead of the duty of acting as a "depositary
of public money" being regarded a responsibility
to be undertaken with reluctance our National bank
ers have eagerly sought it as an advantage and have
devoted their energies to the securing of large
amount of the public deposits possible The reason
is obvious; the public deposits have been regarded
and treated as other deposits and, although in most
cases probably with more caution have been used in
loans discounts and other investments, by the banks
holding them, as a means of increasing the profits
the bank.
The term depository of public moneys" in the
section Of the Currency act above quoted, is obtained
from the Sub Treasury act of 9th August, 1916 There
is nothing in the Currency act primary other repeal
ing the provisions of the Sub-Treasury act; and 1t
follows that the Currency sact must be administered
iu conformity to existing laws, not in antagonism to
them When therefore, the Currency act requires Of
National banks, as part of their compact with the
Government to act as repositories public moneys"
il must be understood that the acts of the repositories
must be in accordance with the provisions OF the law
as prescribed in the SubTreaSury act OF 9th August,
1916, and of the amendments thereto
The following ofthe provisions OF this act:
"sEc 6 Al public officer, Of Wha'osg9 Character be- and
they are horebS required to keep safely without oaning
nsng or dcposng In banks exchanging for otner inds
than as allowed by this act all the public money eoeetsd o
them otherwise time placed in their possession anu
custody, I'LL the same is ordered ny 1ue Vropc'
officer OF the Government TO be paid out.
SEC H. Uany officer or otbor persons aargs9 Sy s se %
am l,y o 9TH he safe kepfn9 transfer ana disbursement
Of IA. pn6e 0ne shall convert 10 his own use IN any way
Whatsoever shall by OF investment Ia any KIND oil
or shall deposit any bank shall exchange iof oer LUNGS
except allowed by this act any portion OF the public MONEYS
shall be deemed adudged to be an embeement oil 50
much Of said money shall be thus l1yesieI' u5s,
loaned deposited exchanged which is hereby declared 10
be felony.
la the act Of March g. 1857:
SEC l. After making duty of every distressing officer
agent OF the United States having money Of the untea
further prescribed that he shall draD for he some only ~
arOr Of ne psrsoss to ~ho the payments are 20 90 made a. PR
and Instructions excepting when payments are
DO made in sums under twenty dollars
The stringency of these provisions is obvious It's
also obvious why the Currency act in view of the
strngency of the law, imposed upon National Banks
the responsibility of becoming repositories Of the pub
lie money as duty to be borne and executed, instead
of comforting apriviege to sought and enjoyed
BY these provisions it appears that the public
money placed in our National Banks acting in the
pacy of repositories fpubic money to be regarded
and treated as special deposit, and cannot be loaned
invested, or in any manner used by the bank recev-
ING it. without a violation of the law.
1t may be argued that. as the security given BY