New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-19
NEWS FROM WASHINGTON.
CONCESSION TO A NATIONAL BANK.
PERMISSION GRANTED A BANK AT PEORIA TO DE-
PosrT BONDS AT THEIR MARKET VALUE
IBY TELEGRAPH TO THE TRTB UNE.l


WASHINGTON Nov. 18.-Secretary Folger con-
firms the statement published in this mornings
TR1nuNE as n rumor, that he has authorized the
Second National Bank at Peoria, Ill., to deposit four
nor cent bonds at their market value, instead OF
tber face value as heretofore required, as security
for public moneys in place OF the called bonus
NOW held as security Tho Secretary reserves
tho right to draw upon the DanK whenever
the balance becomes large as to render
tho sccurity Insufficient Secretary Folger says this
arrangement was private one, applicable only 10
the bank at Peoria The charter OF that Dank was
about to expire and tho directors were Undecided
whether to continue as n national bank or become
nriyate banking institution. It's one of the most
important public repositories its receipts DUNG
the last fiscal year from internal revenue alone
amounting to more than eleven millions. Only one
national depository-that in Cncinnati-receiyed a
sum larger than that named. 1t was desirable to
retain this bank as q national depository, ana
hence the concession was made. Secretary Foger
was asked whether he would not be compelled now
TO extend the same privilege to all Nationaltbank
which are designated public repositories. lie said
that he expected they would all apply now for the
same privilege, but the concession would become
matter for future consideration.
The fact seems to be that the Peoria National
Bank men took advantage Of the Treasury Depart
ment in one Of its moments OF abSent-lnnuednesS,
and secured privilege winch might have been de-
MED had more time been taken to consider its prob
able effect. Many national repositories have here
tofore applied for the privilege of depOsitng bonds
at their market values 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 to that accorded to the
Peoria Bank and that they will receive 1t, unless
indeed the grant to the Peoria Bank is rescnded
The premium upon bonds held by the Treasury has
hitherto been one Of the elements of the security
although not formerly taken INTO account upon the
books of the deparment. If bonds to beaccepted
at q varying market rate, the amount of securities
must be greater than heretofore demanded i'll pro-
portion to tho amount of money to be received, or
the Treasury officials must be constantly ygant
watching both the market and the daily receipts OF
the 1872 National repositories. IN order to make
sure the Government Is fully secured. Another
inconvenience ~ to be apprehrnded from
IA System authorizing the banks to deposit bonds at
their market value. An appreciation OF, say, per
cent would be likely % give rise to a demand on the
part of the banks for moro money, on the ground
that their securities were enhanced Ill value Whle
a depreciation would call for drafts upon the banks
Treasurer Gian was asked for his opinion OF
the proposition to receive bonds at their market
value from ali the National repositories lilo sad
there could be objection 10 receiving bonds pear
ING a high premium upon more favorable terms than
those winch were OF smaller market value. lie
would, however have an ample margin 10 secure
the Government against fluctuations. lie expressed
the opinion that the K per cent bonds might DC re-
ceiy ed upon deposit at l ID without risA