Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-12-04


AGENT WILSON'S NEW ARRASeExESr-wHAr
BANK OFFICIALS sAr-rREAsURER SrBEKER's
VIEW OF THE AFFAIR.
The patience of Paying Teller ". Il Gibson,
In the cash room of the treasury, was sorely
tried today. He was obliged to undergo the
painful ordeal Of refusing to cash several hun
dred checks drawn by the Z. S. pension agent
in this city on the assistant treasurer of the
United States at New York In view of the fact
that the paying tellers Of the banks OF the
city were, with a very few exceptions. also re-
fusing to cash these checks except upon per-
sonal identifications, the result upon the pen
sioners who drew their checks today was rather
demoralizing.
Today is the beginning Of the quarter Of the
year as far as the pension agent in this city is
concerned.
Today he begins to pay out the money en-
trusted to him for the 10000 and more pension
ers on his rolls, and in the ordinary course Of
business he paws about Sl5o,000 from O'Clock
TO the close of business. Heretofore the agent
MT s. l.. Wilson, had a fund on deposit at the
United States treasury from which to draw
every three months for this purpose. and his
checks have always been drawn on the treas
urer of the United States and were conse-
quently cashed without hesitation by the tellers
CHANGE SUGGESTED.
But soon after the last payment, in Septem-
Der, the agent consulted with Secretary Foster
and urged that the deposit in the treasury be
transferred to the subtreasury in New York tor
certain reasons. One of these was that at
the end of the first rush each quarter
there was large surplus left both here and
in New Nork-where there was also
deposit for the payment of the 400
mail checks that are sent out from this Office.
1t was deemed desirable to husband this sur
plus by consolidating the deposits and the sub
treasury was chosen as the more convenient
place for the placing of the fund.
Orders were issued November IL, signed by
Gen. Spaulding as acting secretary. giving
Agent Wilson authority to change his de-
posits.
Before doing this. however, the agent had
taken what he thought was an adequate meas
ure to insure the easy cashing of the pen-
sloners checks in this city, which amount to
about s3OO,O00. He sent one of his confiden-
tlal clerks out to the banks of the city with a
form Of the new check 10 be used this quarter.
asking 1.-The banks if they would cash these
checks upon presentation if they bore the
Endorsement of the agent. This check was
drawn on the assistant treasurer in New York.
bore on the back the usual stamp of the clerk
at the agency, the regular Endorsement by a
suppositltious pensioner and the initials Of the
agent, rs. L. w."
The clerk. according to Mr.. Wilson's state
ment to STAR reporter this morning. returned
with the word that he had seen all of the banks.
and that a majority of them. giving the names
of thirteen that will be mentioned later had
agreed to the proposition and would pay pen
sioners bearing such checks without personal
Identification.
THE CIRCULAR TO PENSIONERS.
Mr.. Wilson thereupon had printed several
thousand circulars for distribution to the pen
sioners for their information on the days of
payment. This document read as follows:
Hereafter all pension checks will be drawn
on the assistant treasurer of the United States
at New York city, and checks for regular
quarterly payments with the usual identifca-
ton by the pension agent, will be cashed by the
following named banks in this city. instead of
the treasurer OF the United States, as hereto
fore:
National Metropolitan Bank. National Capt.
tai Bank. Central National Bank, Traders
National Bank, West End National Bank. Ohio
National Bank, Citizens National Bank, Second
National Bank, Lewis johnson 4 Co.'S Bank,
Woods Co.'S Bank, Bank of the Republic,
Riggs Co.'S Bank. SIDNEY L. WILSON,
United States Pension Agent
Accordingly, a boy clad in n light blue suit
stood in front of the agency all day today and
handed out copy OF this circular to each per-
son leaving the building. Very many Of the
people who took the paper were unable to read
1t, and they had to secure the services of inter-
prefers. good many rather funny scenes
were enacted around the corner of 4th and L
streets, in the vicinity of the agency.
THEY ARE REFUSED PAYMENT
As a rule the first thing the pensioners did
was to go to the nearest bank. the Second Ma
tional, on 9TH street Other banks in
the neighborhood were also visited, but,
to the CONSERVATION OF the check
holders, the paying tellers uniformly
demanded personal Identification before pay
ing. This was out of the question in all but a
few cases, and thus the number of checks
cashed was very small.
From bank to bank the pensioners trudged
showing in their checks and getting them back
again, growing more confused at each declIna-
tion to pay, and it was not long before there
was very general movement up town. toward
the treasury.
DECLINED AT THE TREASURY.
Inasmuch as the checks were drawn on the
New York subtreasury Paying Teller Gibson
in the cash room had to decline to fork over
the funds, and the down town scenes Of wrath.
surprise, expostulation and fear were repeated
within the marble walls of the treasurer's
counting house.
Whenever a pensioner was refused payment
he invariably produced his copy of the agents
circular as an inducement to the tellers
to pay. In the banks the reply
was that the circular had been issued
without the knowledge of the bank. and that
no money would be paid on such check as
drawn unless depositor or some other person
known to the teller should identity the person
presenting the check.
WHERE THEY WERE cAsHEp.
Word was received at the treasury during the
morning that Woods & Co. on f street we're
paying the checks without restriction, and
thither the pensioners were sent by the teller
and by others in the building. The result was
startling. In q few minutes after 3 clock
the pavement in front of this establish
ment was crowded and for two hours
and a half the clerks inside we're kept busy pay
ing. The regular customers of the firm, en-
countering the crowd, were startled. and the
rumor was spread that there was a run on the
bank. At l:30 it was found to be abso-
lutely necessary to stop the pro-
miscuous paying of these checks, as il
interfered sadly with the current business
Of the house and the windows were shut in the
face Of half hundred eager people. By that
time fully 400 checks, aggregating about
go 600, had been cashed.
There had been personal understanding be-
tween Agent Wilson and the firm of Lewis
johnson 4 Co., and this bank paid pension
checks all day upon mere presentation. Up to
noon about %, 500 had been thus paid. A few
checks that bore defective Endorsements were
returned.
THE CAUSE OF THE DIFFICULTY.
SrAR reporters made hurried investigation
into the cause Of the Misunderstanding and
the conclusion il that there had been rather