The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-09-19
THE SUB-TREASURYPLAN
,,r1oN DIRECTED TO IT BY
srRINGENCY IN MONEY.

4am-M6u cIAo
80 secretary Windom-Where are
s-aa+or shermaa's National Bank
Ac+Amsndments?-Money Easier
All around.
From, the New York sun.
cocrstary WINDOWS unfortunate inter
- rnblished on Sunday and Monday,
49, 80 n divide with the money market
c'N'-- --,,ast of the community. Bank
'c 49, nv reason of their relations to the
.-aasnrv department., ara not lmpoite
-. .ro,,ob to express their views regarding
e e. TyiDdon and his policy for publication.
-, .,,a nresent moment they are beat upon
~ - - Mr. Window to get the bonds that
- has expressed a willingness to
today. for they appreciate the
U ,'.tilitv of getting s2O,0O0,OOO more
oe s 20 g, ne treasury at once. Though they
CAV ., -. cav much, except TO their intimate
W O.n no their mental observations are so
sso-o,,s that they can almost be heard
w. business men, who, though as deeply
49,. .4eastad as the bankers in the success OF
MT ~ - NJ WINDOWS expedients, do not oc-
al a. dalicate positions in relation to the
cupy situation as bank officials do, are
nllNonaedingly outspoken in conforming Mr..
Windon's laundering manlfestoes
Tbar argue that Mr.. Window has, by
-t;rsT that he has exhausted his power
81 the resources of the Treasury, put him
aaIf into a position that may embarrass
him Greatly if present measures fail to af-
fard permanent relief. And even II they
sncceed. a similar emergency is liable TO
~ nacember and again in March, and on
ha
S;o1salf hampered by his recsnt utterances,
10, as he is now embarrassed by having
- -1sto GOOD Mr.. Blaine's campaign
.Io6,as regarding the deposits OF public
To'fev in national banks. The resources
II he treasury would hardly be
svhsusted for the moment even If all of the
rsvments which it has offered to make
bsfween now and Oct. 10 we're made at
once Then the accumulation of money in
The treasury will go on afresh, until the
extravagant appropriations OF congress
hepin TO deplete them. That may take a
long time, as some of the larger appropria-
lions. as, for instance, those contained In
the dependent pension act, will have to be
nrsceded by an immense amount of red
tene for the expense of which provision
has not vet been made.
In tina Judgment OF the ablest financial
men in this city, the administration will
eventually have to come TO the deposit of a
mart of the government collections in
national banks, and they maintain that
/ congress should take up at once the subject
of modifying the relations between the
treasury and the national banks. A very
strong argument is made in favor of the
distribution of internal revenue re-
ceipts among the national banks
of the principal reserve cities in
different sections of the country, namely,
| New York, Boston, Philadelp ia, Chi
csgo and New Orleans. The deposits should
| be apportioned among the banks according
to their capital and surplus combined. In
/ that way there would be no possibility of
/ tavoritism, and each bank would obtain
deposits IN proportion to the security which
/ it could offer IN its own resources, and also
in proportion to its business.
The law under which such deposits are
now made, namely, 5153 of the revised
statutes, provides that: 1.-The secretary of
the treasury shall require the association
thus designated TO give satisfactory
security by the deposit of United
States bonds and otherwise, for the safe
keeping and prompt payment of the
public money deposited with them.n 1t is
suggested that this be modified so that the
government shall have only such protection
as other depositors enjoy. namely, the CAPT
tai and surplus Of the bank, together with
the liability of its stockholders, "to the ex-
tent OF the amount of their stock therein.
the par value thereof, in addition to the
amount invested in such shares" As the
national banks are the creations of the gov
eminent and their operations are restricted
and supervised by it, and their condition
constantly subject to federal inspection. it
would seem that the treasury would be am
ply secured 10 making deposits in the man
ner outlined above. The business of the
country has always had to struggle against
The suo-treasurv system, and it will unoues-
tionaoy labor under that disadvantage un-
81 I'll the Suo-tTeasury system is abolished or
at least modified radically.
Inc present trouble dates from last No
Vemoer, when the subject of CONTRACTING
the government deposits in national banks
& was hrs' agltated The financial situation
mas Deeh growing worse ever since. A few
XpeoP4e IN wan street know that the ad-
tlinlStrauon was so frightened as to the
lluaiiclal outlook few days ago that the
polcy of resuming deposits in national
Ks was practically decided upon with
IO consulting Mr. Window. The fact is
lmpiy mentioned now to show that the
lure oltht at Washington is not as hide
o w I on the subject as the public has been
led to believe. ''e"
t,t y d. al street. not in the speculative. sense.
IS AZ tne financial center of the country
esi5uliihg 10 ask what has become of the
TbiaS . 10 the national banking act
ppcn were offered in the Senate soma
eeAs ago by Senator Sherman. They were
I9t ted 70 the committee on finance of
ulG1 senator Sherman is a member and
O oin information from Washington has
ba @,un2 oeen to the effect that Senator
h +anap was 10 orlng them up as soon as
os tn DIll mad been disposed of. Nothing
srro G''n nearu or them since they were re-
a,Gl IL Is understood that the House is
49,; ~ " pass them at the present session
ba. amendments were introduced in
psr. oouy months ago, and the westero
lyar Ia asree1 TO vote for them after the
ttar SUI oLl should have been passed: but
"ouatof sherman took the subject mn
onor ~ onceuea That he could have the
rst Co! putting them through the Senate
ne Ts Tue hrst step toward their adootion
~ rno 4I amendments, if enacted vopld
onIi Intee distinct beneficial results. They
rc,io tiaoIe 1ne national banks that have
Ds+;op 81 Outstanding to increase that cir
ano 'o nf ~ per cent.-that is, up to the mar
rcnl ~ Tue ponds deposited to secure such
mid i1 VI In that way about SIS. 600 600
AT an 80 10 ,aaded to the currency at a cost
otes "OG1u not exceed the printing of the
mid - ! et the additional issue of notes
|non Ia 10 amply secured, because the bonds
rani,', u'cn they are based are selling at a
&onId u on OF 20 per cent Incidentally it
Brv az tttIIo courage national banks, particu-
kcooG !. a. .ne west. to take out circulation. A
|m MIA t ano Obvious effect would be that it
hnt p;,event the retirement of national
Il the r rnou Ia 10 which is now going ON
The S..g, OF $4,000, 900 per month. that is