Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-11-21
WASHINGTON WAITS.
FoIger,s Latest Bond Transaction
Likely to Cause Trouhls.
The Senate Secretayship; Gorham Can
didate-Jeannetts Inquiy-Ths
Melville Case--Ways and
Means Committee.
GENERAL WAS HIEGToN NEWS NOTES.
Special Dispatch to the Register.

Speeia! Dispatch to the Register.
WARRINGTON, November 20.-Secretary
Folger confirms the statement, recently
published as rumor, that he has author.
lied the Second National Bank of Peoria,
H., to deposit per cent. bonds at their
market value instead of their face value, as
heretofore required, as securities for public
moneys, in place of the called bonds now
held for security. The Secretary reserves
the right to draw upon the bank whenever
the balance becomes so large as to render
the security insufficient Mr.. Folger says
this arrangement was . private one, ap-
plicable only to the bank at Peoria. The
charter OF that bank was about TO expire, and
the directors were undecided whether to
continue as a national bank or become q
private banking institution. It is one Of
the most important OF the public deposito-
ries, its receipts during the last fiscal year
from internal revenue alone amounting to
more than 81, ,0O0, 900. Only one national
depository, that in Cincinnati, received .
larger sum than that named. 1t was de-
sirable to retain this bank as national
depository, and hence the concession was
made. Secretary Folger was asked whether he
would not be compelled now to extend the
same privilege TO all national banks which
are designated public repositories. He said
in reply that he expected they would
but the concession would become q
fnr "a
fact seems to be that the Peoria
national bank man took advantage of the
treasury department in one of the mo-
ments OF its absent mindedness and secured
a privilege which might ave been denied
had n ore time been taken to consider its
probable effect. Many national deposito-
ries have heretofore applied for the privi-
lege Of depositing bonds at their market
value as security for public moneys held
by them, but their requests have not been
granted. There can be no doubt
that all the banks designated
as repositories will demand
privilege similar 10 that accorded to the
Peoria bank, and that they will receive it
unless. indeed, the grant to the Peoria
bank is resciDded. The premium upon
bonds held by the treasury has hitherto
been one OF the elements of the security
although not formally taken into account
upon the books of the department. Ifbonds
are to be accepted at a varying market rate
the amount OF securities must be greater
than heretofore demanded. in proportion
to the amount Of money to be received, or
the treasury officials must be constantly
vigilant, watching both the market and
the daily receipts of the I32 national depOs-
itories, in order to make sure the Govern
ment is fully secured. Another inconven-
fence is to be apprehended from a system au.
thorizing the banks to deposit bonds at their
market value. An appreciation of, say l, per
cent would be likely to give rise to de-
mand on the part Of the banks for more
money, on the ground that their securities
were ehanced in value, while deprecia-
ton would call for drafts upon the banks.
Treasurer Gilfillan was asked for his opin-
ion of the proposition to receive bonds at
their market value from all the national de-
positories. He said there could be no OBJ
lection TO receive bonds bearing a high
premium upon more favorable terms han
those which were Of smaller market value.
He would, however, have an ample margin
70 ove sscqEe r.tl the g9yernmsnt against fuctGa-
deposit at 1l5, without risk.