New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-01
CALLING IN THE DEPOSITS.
SECRETARY WINDOWS IMPORTANT An
NOUNCENfENT.
FAVORED NATIONAL BANKS MUST RETURN Ten
PER CENT OF THE GOVERNMENT
Nancy THEY HOLD on

PER CENT OF THE GOVERNMENT
MONEY THEY HOLD ON
JANUARY u.s.
w.sb,nytor Nov. 3o-The following announcement
was made public this afternoon
1.-The Secretary OF the Treasury has decided to re
suco tho number OF National bank depositsres. ana
the amounts OF public money kept herewith III IN
tended to make this reduction in such manner as
10 avoid as far as possible any disturbance to the bust
ness Of the country.
transfer TO the Sub-Trcasury, on before Jan
uary IS 1890 OF about ten cent OF their holdings
of public moneys will be required from banks having
in active accounts about ten per cent OF the surplus
held by them over and above the amount needed for
the convenience of the public service; the banks
wish to sell to the Government the bonds furnished
as security for these deposits the Secretary viii pur
chase them and retain from the proceeds OF sale the
amount which otherwise would have to be deposited
above stated sending checks the banks for the
residue.
"other calls will DO made from time 10 time. but
Always with due regard business interests until the
public moneys with the banks shall have been reduced
the amount needed for public business, and
the money withdrawn will be used for the purchase OF
United States bonds Banks desiring to dispose of
the entire amount of bonds furnished security for
public deposits will not of course be limited TO the
ten per cent transfer of the first call"
in conversation with the Secretary. no explained
that the phrase banks having active accounts re-
fers 10 the National banks with which the Govern
ment through Its public officers in various parts Of the
country ttansacts current business by depositing
Government revenues from time 10 time and drawing
upon them through checks Of discussing officers The
"banks having inactive accounts are those otherwise
known In the Treasury Department as surplus
banks' being those designated by Secretary Faircbd
solely depositaries for portions Of the Treasury
surplus. The total amount of the Government de-
In hanl hoth tbeca ic
s47,OO0,O00. The ordinary amount Of public funds
distributed among all the depositarics has been from
SiO, 600 900 10 $4,000 900. but ran up in 1887 TO
about $20000.OOO.
In response TO a. question, Secretary Window further
said that the at which bonds will be purchased
from the banls desiring to dispose of them to the
Government will be the rates fixed and paid to the
public by the Treasury the date at which any in
divdua bank may notify the Department of its desire
10 sell them.
The work of sending out notices 10 the banks-sOme
o66 in number-was begun TO day, and large number
Of letters mailed this evening The following IS
the form of notification addressed to each of the So
ca,lcd surplus" or inactive account" banks. The
letter below is addressed TO small National bank
having total Government deposit of $4,000
Treasury Department, Office Of the Secretary rsa
To Cashier. - National Bank
Sir: The Department has decided to reduce the
humber of National bank depositares and the amount
of public money kept herewith which at present ae
largely in OF the requirements OF the public
service. 1t IS desired TO make the reduction with
the least possible inconvenience to business interests
To this you instructed TO deposit on or before
January Is, 1890, from funds TO the credit of tho
Treasurer of the United States 10 like credit with an
Assistant Treasurer OF the United States as trans
fer OF funds from your bank. the sum OF $1,000,
which will reduce your 11oi balance accordingly.
When this transfe? shall have been made you VIII
be authorized 10 withdraw security bonds To the
amount of $5 600 upon receipt OF the certificate OF
DEPOSITS for amount transferred, the Trcasrers re-
ceipt for the bonds and resolution for their with
drawal or. II desired tho bonds will be purchased
by the Department and the amount TO be transferred
retained from the proceeds of the bonds a blank
form OF resolution 10 accomplish the latter purpose
IL herewith incOSed. -
Other calls will be made from time 10 time until
the entire amount is transferred, If you prefer it.
the entire amount may be transferred at once and
the bank discOn tinued a depOsitary.
ment. notify the Department by wire OF the amount
and price OF bonds offered. Respectively yours,
WILLIAM WINDOW, Secretary.
The form OF notification TO the so-called active
account banks, differs from the above by containing
the following statement instead of the notice of total
Withdrawal:
other calls will be made from time 10 time until tho
amount shall have been reduced to --- - dollars
or If you prefer It, the entire amount 10 be trans
fcTred may be deposited at once.