Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-12-21
FINANCIAL.
Sec'y Sherman Oh the Credit OF th.. q. $.
in thu National Banks.

| WASHINGTON, December 90 The following is
the letter rom the Sec'y Of the treasury, LAID be
fore the House Of Representatives oday, with
reference to the balance On loan accounts standing
to the credit of the United States, in the National
Banks
81 nave the honor to acknowledge the receipt Of
resolution Of the House of Representatives, dat
ed the 10th inst, as follows:
Resolved, That the Secretary of the treasury
be directed to INFORM the House. at the earliest
day practcable after the close OF the coming con-
gressiOna recess, whether there were any balanc-
c. on the lIau account, over standing To the L. ).
IN any National Banks, on the first dav of March,
1876 aud 90 he first of each suocael ing month,
TO aud Including the lst of January, 1879, and the
names and localities OF the banks whica held such
balances, and the amount held BY each the re-
spectve dates Indicated
In reply to the statements that tbs re were no
balances on the iOan account standing 10 the
credit OF the iea>uy OF the IIted States, III any
National banks, from March. 1876, to January,
lo7S,a complete l,t Of National Bank depnsitore,
with the baance on Inc loan account to It { credit
OF the treasury o the Unned States held by esch
February 1t, 1873 and on the first of each sue
ceeding month"; 10 aud including December l-t
lSlS, is herewith IbclOsed.
The House Will be duly advised IN another com
muncation, of the balances on JannaIy IL, 1879,
as soon rs the returns from the respective bank.
shall have been received at the depai. ment. These
banks have been designated from time TO time,
under the PROVISIONS Of department circulars, III
wiling all National Bank OF the United states to
become financial agents Of the government, and
repositories of public money, for the special pur
pose of receiving deposits account of subscrip-
tons to the funded loan, and they were permitted
upon proper security, to hold the anon Mt Of any
subscription made OF obtained by them, subj to
the drafts or ordered of the depai tment, rs occa-
sion required for tbs payment OF called bonds ma
tured.
No coin has been deposited with these banks or
any OF them by the Treasury of the United 5 ates.
These banks represent exclusively the cola re-
celved Tor subscriptions made or attempted by tue
respective banks aud LETT ON deposit during the
running OF the 80 days, as required by lay to he
given for the payment OF called b nds, partly to
prevent the withdrawal OF 50 large AN amount
from the channels of business and party AS an in
ducement to those banks TO act etfieicntl, pro-
curing subscriptions.
The very large balances reported ~ held by the
First \ rational Bank of New York were caIscd by
temporary deposits OF the proceeds of the IL
per cent bonds sold through the - Indicate OF
which the bank was membcr, and also by the
very large subscriptions OF that bank to the per
cent. loan. The balances reported due from
the banks on The loan account are, however, TO
some extent nominal, the bonds furnished Sc
curltt nelng largely made up OF called bonds,
which are a payment u their amount of the bal
apce due, bat canno he credited to The bank un-
al the bonds carefully examined and the precise
amount due on them ascettalued AID the ceItd
Gates for the amount issued by the Treasurer. 1t
is proposed 10 continue the same IN ode of deposit
in AID of the sale al the 1 per cent. bonds during
the H. NJ year, and attention Is called ID the
ommeudatlcu in the annual report for discre-
tionaiy shortening OF the period now required ior
calls. (Sgnsd) JOHN SHERMAN,
Secretary.