The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-09-16
PUBLIC MONEY IN BANKS
THE TREASURY Is GETTING IN A
contested CONDITION
ELECTRICAL POWER IN MINING
Connecticut Indemnity Association In
Trouble-A Cursory Examiner.
Incorporations-Real Estate
OFFICE OF THE HERALD,

order TO aVoiQ 1urtner congestion VI moHoJ
In the treasury, avail himself Of provision
of the law which permits him (as allesed)
to accept satisfactory security other than
United States bonds for deposits OF public
money in national banks, Is shown by the
secretary OF the treasury himself TO DC
based on a misconception Of the Jaw Inc
law referred to is section 1853 Of the revised
statutes Irrational banking act, paragraph
$50. which reads as follows:
All national banking associations, deslg-
natod for that purpose by the secretary Oh
the treasury, shall be depos.taries of public
money, except receipts from customs, under
such regulations as may be prescribed by
the secretary; and hey may also be en-
ployed as financial agents OF the govern
ment; and they shall perform all such rea-
sonable duties, as depostarleS OF pubic
moneys and financial agents Of the govern
ment as may be required OF them The
secretary of the treasury shall require the
associations thus designated to give salts
factory security, by the deposit OF
Uaited States bonds and otherwise, for the
safe keeping and prompt payment OF the
public money. deposited with them. and Tor
the faithful performance Of their duties as
financial agents Of the government. And
every association so designated as receiver
or depostary of the public money shall take
and receive at par all Of the national cur
rency bills, by whatever association issued,
which have been paid in to the government
for internal revenue, or for loans or stocks.
In reply to question whether the secre-
tary OF the treasury had ever accepted any
security other than United States bonds TO
In, a a
banks, Or If In his opinion the law author
lied him to do so, as suggested by bank
officer in this city, Mr.. Gage replica:
''In few instances a long time ago, the
secretary If the treasury accepted personal
bonds in addition to Unied States bonds
when the amount Of the latter was insult
ficent to properly secure the account, but
fer many years It has been the uniform
practice to accept United States bonds only
as security for public deposits with ma
tional bank DEPOSITORY
Some Of the banks are avaiing them
selves of the iew bonds as rapidly as pos
sible for the maintenance of their circula-
ton and the protection of public deposits,
but the three per cent bonds on deposit to
secure circula tioa by the latest report were
only $S,255, 76O. AMI to secure public deposits
only $12, .120.
While. of course 1t Is fact. bank officer.
said today, that some banks are not I'M
willing to see higher rates for money, yet
the majority of THIN. as we'll as other far
sighted business men, do not care to see
the business of the country interfered with
and Inconvenience ~ the further conges-
ton Of money in the United States treasury,
and they, therefore, will welcome anything
that can be done fortunately to prevent
that evil.
The termination of the war, and the
knowledge that another loan will not be
necessary, have causea the United States
bonds of all classes, new as we'll as old, to
sell at premium which the banks do not
care 10 pay. Some of tfem say they would
be willing to pay from 1s1s to 104 for the
new bonds for the purpose Of taking out
circulation. But even If they were willing
to pay for the new bonds h order to deposit
them as security for government deposits,
they are unable to get then because Of the
slowness with which they are being deiv-
cred by the treasury. Bankers say thatthe
treasury is responsible for,th,s delay. be-
cause it insists on delivering he bonds from
Washington direct to the subscribers. If
for in New York to the assistant treasurer
in New York for distribution las was form
orly done), they could be delivered, It was
sand. as fast as they were pa,dfor, and the
same course could be pursued with every
sub-treasury.
If It is not found practicable t,divert into
government repositories (natioaal banks)
the balance of the money to be rnid for the
new three per cent bonds (about 1850 900 ,OO0)
that money must be received d. the sub
treasures If rendered there, ans once in
the treasury 1t cannot be taken out and de-
posted In banks-the treasury canarrange
to deposit receipts for internal reyenues in
national banks.
Electricity in Mining
The average success of several larae cleo
trical schemes in connection with Inning
enterprises In California has been sufficient
to indicate similar profit tn other Sates.
notably in Colorado. which Is beginning on
large scale to do what has hithertobeen
found successful throughout that COMMON
wealth In minor degree. Recently, yays
the Mining and Scientific Pressi the Colo
RADIO papers have had excellently written
accounts Of the opening of the electric p,w-
er transmission plant at Canyon CIV.
where, at cost of nearly $750,00O electic
power is generated to be conveyed thitv
miles, which marks a new era in the pro-
porous Cripple Creek gold district. In
Platte canyon, twenty-three miles froh
Denver, is in preliminary shape a 50, OOO.
900 project to generate and transmit to tn,
Colorado metropolis electric energy fol
light and power; and near Lake City. Hiny.
dale county, where lie large quantities Of
low grade ore, another electric power plant
Is contemplated.
Indemnity Concern in Trouble
A dispatch from New Haven, Conn.,, dated
the 9Th inst, says:
Judge 8. f. Baldwin of the supreme
court. who gave a hearing in chambers yes
terday on the applicants of Insurance
Commissioner Belts for the appointment