The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-01-29
INTEREST ON THE DEPOSITS.
RUMORs OF A COMBINE AMONG THE
BANKERS.

BANKERS.
Representative of Twenty-Five OF
the Thirty state DepOSitOries in
Conference at AtIanta-A Commit
tee Talks over the situation With
the GOvernOr-A Belief That the
GOvernOE VIII suspend All the
Repositories That Refuse 10 Pay
Interest.
Atlanta. Ca. Jan. s-Representatives
of twenty-five of the thirty banks which
are state repositories held a meeting here
to-day to discuss the recent letter from
Gov. Atkinson. which was call upon the
repositories for the payment Of interest
upon the states money in their vaults.
The state repositories have never paid
any interest TO the state for the use of the
money until the present law, which was
passed in 1873 although there is a clause
in the act requiring the government to
make the best contract. as to interest.
with each depository that he can. Va
rious reasons for the non-payment of in
aerest by the repositories have been
given from time to time, but none of them
were such as to satisfy Gov. Atkinson
that the banks ought not and could not
be made to pay it.
Past opinion has been that the deposit
tories after having once been designated
could not be suspended for refusal to pay
interest If it had been demanded, and It
appears that no competitive efforts We're
even attempted before the appointment
of a depository, to secure an agreement
for the payment of interest before the APP
pointment
Under the law the legislature designates
the town and the governor names the
bank. Certain counties pay their taxes
into the bank named and II is this money
that they use without interest. The money
can be drawn out for state purposes only.
When Gov. Atkinson recently sent out
his letter asking the various repositories
20 state how much interest they We're will
ing to pay the state on her deposits, II
is understood that he took the position
that he has the authority to suspend
any depository upon his own judgment as
20 the ground for suspension. II the pres
ent repositories refused to pay reasona-
BILE interest his idea was. II is understood.
that some other competitive bank would
step in and make bid and get the state
deposit. In fact. the governor did re-
ceive notice from several banks that
they would be glad to pay reasonable
interest for the use Of the states money.
Not only this. but last week several OF
the repositories sgnihed their readiness
to comply, provided. of course. the com
pliance was general Then the meeting
which was held here to-day was called
Pending its action. those repositories
which had offered to pay withdrew their
offers.
Great socrac,y x,,as o,,s.,,,.1 II, tt,a. 18th
ering of the bankers to-day. They did
not want anybody to know OF their gath
ering, and some of them persistently de-
MED the holding of any meeting at all up
TO late this afternoon, when a committee
composed of Judge Bigby of the New
nan Bank, Mr. Farrer of the Merchants
Bank of Atlanta and Mr. Stedman of
HawKinsville, called at the executive Of
hce to confer with Gov Atkinson
To the governor they stated that the
meeting had been called merely to get
his views and discuss them. The other
side of the story, however is that the
purpose of the meeting was to make an
agreement between all the repositories
refusing to pay any interest to the state
and to notify the governor I'm their re-
plies to his recent letter. After the con-
ference with Gov. Atkinson the commit
tee reported back to the Aragon hotel
All that can be learned of their
dCAlon Is thdt IL was agreed tnat the
bankers are to make their report by let
ter.
The situation is highly important Ii
the banks agree to pay interest the state
will add a snug sum to her income If
they refuse either one of two things win
happen. Gov. Atkinson viii suspend all
the repositories and appoint new ones.
who will pay the state interest. or he
will carry the matter TO the legislature
and there provide means for securing
TO the state some return for the use Of
her money by the banks. GOV. Atkinson
would not discuss the conference with
the bankers committee to-day further
than to say that it was a thoroughly
harmonious meeting, and that he simply
repeated what he had said to the bankers
kn his original letter.