The morning call., 1894-05-15
THE CITY FUNDS.
OakIand's Council Wants
Two Per Cent.
But the Banks Decline to Give the
Interest ASked-The Public
Works Board.

OAKLAND.-The Oakland banks have in
hand some 100000 of city moneys. and at
a recent meeting the City Council thought
that something should be realized from
this wealth in the way of interest, and ac-
cordingly addressed the banks to that
effect
Two communications were read last
night at the Council meeting, in answer to
the demand of the Council.
j. West Martin, president of the Union
Savings Bank. writes to the Council "in
answer" he says. ITO the communication
addressed to the bank and the public gen.
orally. anG referring to The fact that the
banks are the depositories of the city
funds. and that the city is receiving no
consideration for them. and requesting the
payment to the city of 2 per cent upon all
deposits for the benefit of certain relief
fund to which the banks previously have
generously and literally contributed"
Mr. Martin says: "The demands upon
the banks daily throughout the entire year
for special contributions to private chari-
ties, established charities, general benev0-
lence and contributions Ior public pur-
poses cannot be easily understood or est-
mated by persons not familiar with the
facts: but all worthy appeals are nobly
and generously responded to by them.
"The money deposited by the City
Treasurer is received as any other CON-
mercial deposit and is held in the vaults of
the bank subject to all drafts that may be
drawn against 1t.
"There are times generally from July
to October, when city funds are delin-
ouent-when warrants are issued TO the
extent OF probably 100000 more or less.
These warrants have several months to
run before the city treasury is reimh hursed
from taxation before they are paid"
Mr.. Marin then goes on to say that
money on these warrants Is advanced
whether there is money on deposit or not.
without charge or discount At such
ii mes. the banker says, the banks are a
great auxiliary to the city government, re-
deeming the demands Of the city employees
when the city cannot pay them.
Mr.. Martin concludes as follows: 81
can only say for the bond that we hold the
disposition of the Treasurer and we
greatly regret we cannot respond affirm
atiyely to the request of the Council in the
matter under consideration. To allow in
terest on commercial deposits Is theory
entirely inconsistent with the general
policy of safe banking. and to encourage
it would likewise be. in my Judgment,
lDcOu9lSte0t Will WiSc pupilS puiicy.
A communication was also received
from Isaac l.. Requa. president of the Oak
land Bank of Savings. on the same subject.
Mr.. Reuua also mentions the fact that
his bank has given freely In charity. and
goes on to say:
lyon are doubtless aware that the bulk
of the treasurer's bond Is furnished by the
banks; that the city's money is payable on
demand, without notice; that large per-
centage. If not all, of the city money is kept
ON hand for this reason; that the banks are
responsible for its safe keeping: that the
banks are expected TO cash city warrants
amounting t, about so per cent OF the city
hv any reason of any illegality in these
warrants falls on the bank; that notwitb-
standing the fact that the banks have paid
$4,000 for warrants out OF 100000 the
treasurer has The legal though not the
moral right to draw the entire S10O, 600 in
addition at sight,"
Mr.. Reoua says he cannot see from this