Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-01-04
Deposit of Taxes in District Banks.

FROM the Financial H-view.
In its issue Of November IS the Financial Re-
view called attention to the stringency occa-
stoned here in each May and November b. the
deposit Of the District tax moneys in the United
States Treasury. We suggested BY way of rem
edy that our local institutions Of fnance should
at least retain custody of the tax moneys paid
In by our citizens. Both The STAR and the
Post have approved of these suggestions and
they have met with general favor among our
citizens. The STAR prints an inter-
view with District Auditor Petty, wherein he
insists that the revenues of the District of
Columbia are not locked up in the United States
Treasury, while in the same paper District As
SCISSOR Trimble expresses his convictions that
these revenues are so 'iocked up" Mr.. Trim
bic is right and he has had the courage Of his
convictions, as shown in his official reports. The
argument Of Dir. Petty ia based wholly upon
the assertion that as the fiscal year commences
July l, and az the first payment Of taxes by cit
liens OF the District comes In following No.
vsmber, there is a period between July and No
vembsr when the District treasury is empty;
therefore, says Mr.. Petty. tho District could
not during those four months meet its eur
rent obligations but for the kindness Of the
treasury officials. who honor our requis tions
during this period and reimburse the treasury
from the taxes received in November"
IL this statement was wholly correct il does
not meet the point OF our suggestion. 1t only
indicates another defect in the present system
wherein, with appropriations already made By
Congress, the District treasury becomes bank
rupt through four months OF the yea except as
relieved BY advances from the rited States 1t
stiil remains true that in November and Nav re-
spectively Of each fiscal year between 81 900 900
and 1000, 900 are taken bodily out OF our Dis
trict banks for deposit in the United States
Treasury, and that financial stringency 10
thereby created which would not occur If these
moneys we're left upon deposit in said District
banks. The difference between deposits in our
banks and in he United States Treasury is OBJ
vious that in the former ease these MONEYS
would at ali times be kept in active circulation
while IN the latter case they would be wholly
Withdrawn from circulation until from time to
time partial payments are made upon the reaui-
sitions Of the District Commissioners
But are Mr.. Petty statements other wise cor
rectI We think not Let us assume the az
gregate appropriation to be IS 900 00O an equal
moiety OF which is to be paid by the District
/ and BY the United States. The law fixes No
vember and MAY ss the two periods in which
/ the District half shall be equally collected. II
/ Is then so collected There is not scintilla OF
authority for tine Treasury Department to an
ticipate these dates by advancing and paying
out the District proportion. They not SO
advanced nor paid out. The Treasury Depart
ment during the period from July to November
simply avs out part Of the proportion OF The
appropriation due from the United States. There
10 hence no question of reimbursihg advances
made upon the District moiety. 1t il only a
/ payment upon the half due from the United
state-.and any objections urged thereto go nee
esssrily TO the whole system. 1t could easily be
improved upon the lines of a single payment
| period, A. suggested by Assessor 1rimble. pro
yided that our banks are made dspos:tors Of
4 the TAI collections.