The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1878-12-21
Secretary Sherman's Circular
Where the U. 8. Does its Banking.
SRERMAN's EXCUSE FOR FAVOR
ING THE 1sT NATIONAL BANK
OF N.Y. WITH LARGE DEPOSITS.
Does he enjoy any OF the profits of the
Syndicate.

WASHINGTON, December 20.-Following
is the letter from the secretary of the
treasury which was laid before the house
of representatives to-day with reference
to the balance on loan accounts standing
to the credit of the United States in ma
tional banks:
| have the honor to acknowledge the
receipt OF the resolution of the house oi
representatives, dated the 10th inst, as
follows: Here resolution is quoted. |
That there were no balances on loan &C
count standing to the credit of the treas
ury of the United States in any national
bank from March, 1876, to January, 1878.
A complete list of national bank deposit
tories with balances on loan account to the
credit of the treasury of the United States
held by each on Feb. /, 1878, and on the
first OF each succeeding month to and in
Guiding Dec l, 1878, is herewith enclosed
The house will be duly advised in another
communication of the balances on Jan. /,
1879 as soon as returns from the respec
tive banks shall have been received at the
department.. These banks have been de-
sipnated from time to time under the pro-
visions of the department circulars invi-
ting all national banks to become financial
agents OF the government and deposito-
ries of public money for the special pur-
poses of receiving deposits on account OF
subscription to the funded loan, and they
were permitted upon proper security to
| hold the amount of any subscriptions
made or obtained by them, subject to
drafts or orders of the department, as
occasion required for the payment OF
called bonds matured. No coin has been
deposited with these banks or any of them
| by the treasurer of the United States
These banks represent exclusively coin
received for subscriptions made or obtained
by the respective banks and left on deposit
| during the running of ninety days, as re
quired by law to be given for the payment
of called bonds, partly to prevent
the withdrawal of so large an amount from
the channels Of business and partly as an
inoucement to these banks to act efficient
lg in procuring subscriptions. The very
large balances reported as held by the
First National Bank of New York wer,
caused by temporary deposits of the pro
ceeds of Al per cent. bonds sold through
the syndicates, of which the bank was
member, and also by the very large sub
scriptions of that bank to the four pc
cent loan. The balances reported as du
from banks on loan account are. however
to some extent Enominal, the bonds fur
nished as security being largely made o
call bonds, which to all intents are pay
ment Of their amount of balance due, bu
cannot be credited to the bank until tn
: bonds are carefully examined, the precis
amoupt due on them ascertained and Ger
tihcates for the amount issued by tn
Treasurer. 1t is proposed to continue th
same mode of deposit 10 aid of the sale @
four per cent bonds during the next yea
and attention is called to the recommen
datiou in the annual report for the dlscre
J tionary shortening of the period now re
] quired for calls. Very respectfully,
JOHN SHERMAN, Secretary.
The tabular report of balances in differ
5 eIt banks shows aggregates for the month
named and the amounts held by th
First National Bank and National Bank c
Commerce, New York and by the Nave
rick National Bank Boston, to be as fol
? lows: Here follows long column OF fl
5 ures giving full particulars. The lii
embraces seyenty-three repositories, bI
excepting tie above named, there are br
5 few instances where an amount exceedin
$l,OO0, 900 was held.