Richmond daily palladium. [volume] (Richmond, Ind.) 1876-1904, 1889-12-13
Death OF Robert Browning Nearly
All Of Germsny Has the
lnf1uenzo.
Judge longsneoksr Commences the
Closing Argument in the
Cronin Trial.
NATIONAL BANK DgPOSITS.
Earnest - Purchase Of
Bonds.

WASHINGTON. Dsc 3-The Peduc-
ton OF the deposits OF Uoited States
money in national banks has begun in
earnest. Secretary Window has mailed
letters to the banks having these de-
poslts, in which he indicates the
amounts to which the reductions must
be made The minimum named for
each bank anticipates . reduction of
the $47 600 600 held by the bsuks to
about S12 OOO. 900. Secretary Window
intends to reduce to $50, 900 tho deposit
with banks where il il not necessary
for the government to keep
open accounts. and where deposits
have been made simply for con-
venience of collectors Of customs, inter-
nal revenues. elc These latter banks
are located in ci.ies and towns OF from
10000 to 100 600 inhabitants. and gen
orally hold from one to four thousand
dollars each. The policy OF the govern
ment has been. in making . depository
for the convenience OF federal officers.
to seizure deposits from federal officers
70 that amount; yet the banks have, in
many instances, exceeded in deposits
she amount they have deposited with
the Treasurer. Many small bankA
which haye bee. made do
Ein have Gil &f
thar because it IL not public nec6s-
sity to maintain them - depositories.
In large cities, where the government
keeps accounts against which checks
are drawn for the payment OF pensions
and other expenses. the bslances lott
with banks have run up from $500 OOO
to $2.0O0.OO0. That 10 now to be re-
h. hu
business centsrs the sovernment
will withdraw several million
dollars from the general cirou
lating medium OF banks. Many Of
the banks in yielding up their deposits
will take out an increase OF circulation,
90 a. not to reduce their general funds
to point which will embarrass them.
No doubt majority of the banks would
thus increase their circulation were it
not for the fact that most OF the bonds
deposited here to secure United States
deposits were borrowed. 1t 10 estimated
1t the Treasury Department that, OF the
&35 OOO, 900 which il to be Withdrawn
from the depositories. not more than two
or three million dollars will 60 back in
tho way OF an increase in circulation OF
banks.
Secretary Window says that his plan
for the purchase of bonds deposited to
secure United States deposits il work
ing 20 we'll that there will be NO strin-
gency in the money market, and very
little. il any, reduction in the circulating
medium OF the country. The transfers
OF these values have, however, caused .
slight furry in banking circles in New
York. and Western bankers report that
their reserve agents in tho Esst are
charging Z per cent. on overdrafts now.
whereas few weeks ago but 8 or 6 per
cent. WAS charged; but they report at
the same time an equivalent increase OF
interest allowed for credits with the
Eastern reserve agents. During the
past three or four months there has been
8 steady increase of interest charged on
the oyerdrafts of the Western banks
At the Treasury Department it 10 said
that this 10 due more to the customary
demands for money ct the close Of the
Oalendar vear than To ANYTHING alsa.