The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-08-23
That City Gets Two and One
Half Per Cent. Interest
on Her Deposits.
BUT IT TOOK A
FIGHT TO GET IT.
The Money Was Kept in the Union
Trust Company, New York.
for a Year.
HER TWO BANKS SHARE.

uEh wv BANkS SHAKE.
In striking contrast to the manner in
which Mr.. Bill Hogendamp's bank deals
with this city is the manner in which the
Two national banks of Hoboken handle
the funds OF our we'll regulat-
ed and prosperous sister city
There the city's moneys is equally
deposited in both banks and an interest
of 21-2 per cent. on all daily balances
over 5000 is paid into the city's treasury.
called at the Office of City Treasurer
Smith in Hoboken this morning to learn
what become of the city's money, and to
incidentally compare tho system in vogue
here with that of this city.
Mr.. Smith was not present, but his able
assistant. Mr.. Edward Schneider, gladly
agreed to give me any information which
sought. called Mr.. Schreiber's atten-
tion to the fact that in this city the Sec
ond National Bank carried the city's bal
ance and did not pay one cent interest,
Mr.. Schneider would scarcely believe
that such was the case until proved it
to his entire satisfaction. Then he ex-
pressed his surprise in no measured
terms. He then told me little history of
how Hoboken money had been taken care
OF for the past twenty years.
THE UNION TRUSTS BID.
From the time of the city's charter un-
til 1880 the city's money was eposited in
the First National Bank, the only bank
in the city at that time. The bank being
the only one in the city was independents
and refused to grant the city's request
for interest on the balance in
bank. In 1880 the Union Trust
Company, of New York, asked the
Common Council to have the city's
money deposited with them. The
company agreed to pay two per cent in
terest on all moneys deposited with them.
Although the granting Of this request
would necessitate journey to New York
every time deposit was to be made the
Council dared not refuse the liberal offer
Of two per cent. knowing that the watch
full taxpayers would howl. Accordingly the
account was withdrawn from the First
National Bank although some of the
most influential men in the city were
its directors and deposited with the Union
Trust Company. This company received
the city's funds for just one year, paying
two per cent. for the use of the city's
money. Every time any money was to
be deposited or drawn from the company
a special messenger would be dispatched
from the City Clerks office. and alto
gether great Inconvenience were caused
by the change although the city profited
immensely.
BROUGHT THE BANK TO TERMS.
In 1881, after the Union Trust Company
had the funds for one year, the First Ma
tional Bank made a liberal bid for the re
newal of the city account. It agreed to
pay two and half per cent. on all bal
ances that would exceed $4,000 daily.
After weighing the matter carefully the
Council decided to again deposit the
city's money in the First National Bank,
although they acknowledged that
the relations between the city and
the Trust Company for the year had been
most satisfactory, and there is no doubt
but what the money would be again de-
posted with that company had the bank
failed in any way to keep its agreement.
In 1887 the Second National Bank was
formed in Hoboken. Its direc tors were
all very wealthy and Influential citizens
The bank had been in existence short
time when communication was
handed into the Council at one of
It's meetings. 1t asked that a
fair share of the city's money be deposit
ed with the new bank. The new bank
offered to pay ~ per cent. interest on all
daily balances which exceeded 5000. At
the next meeting of the Council the First
National Bank agreed to do the same.
BY resolution of the Board the
City Treasurer was directed to deposit
the money equally as possible in the
Two banks and he has done SO ever since
Mr. Schneider then showed mo the city 8
hank books and proved how equally the
money was divided. On March l there
was balance of $53, 600 in the Second Ma
tional Bank and $4,000 in the First Ma
tional. On May there was balance of
$45. 900 in the Second National Bank and
$47, 600 in the First National
you will notice. said he, "that
these figures show there has been just
few thousand collars more in the First
National than in the other bank. This is
necessary, as the coupon account is still
with the First National and all OF our
coupons arrive there"
The taxpayers of Hoboken are to be con-
graduated. Their representatives have
not fallen as low as Mr.. Bill Hogencamp's
Board of Finance.
ACTORS KNOCKED OUT.