The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-06-13
SUBTREASURY PRO AND CON.
CASHIER DAVANT Disputes SOME
OF THE ARGUMENTS ADVANCED.

NOM SHIPS OuN SAlNeE W
Banks at Its own Expense-BnnlSs
Pay the Expressage in Returning
Silver to the Trensury-GOvern-
ment Certificates CGshed by Mer-
chants and other Banks Here mt
Par-Cashicr Cam Explains the
Advantages Which Would Result
TO the Local and NeighbOring
Banks-Interior Banks Now Pay
High Express Rates in Renting
silver to Treasury.
Cashier w. NJ. Davant of the Merchants
National Bank is inclined to disagree with
Cashier w. G.. Cam of the Savannah Bank
and Trust Company and retiring president
of the Georgia Bankers Association, in
! the arguments the latter used in advocacy
of the establishment of a sub-treasury at
Savannah in am interview In yesterdays
Morning News.
The Merchants National Bank is the
government depository at Savannah, and
in this capacity it answers to some ex-
tent The purposes which would be served
by a sub-treasury. Mr. Davant does not
deny that a sub-treasury would be of some
advantage to the bankers Of Savannah and
this vicinity, but he does not agree thar
the need is as great as Mr.. Cam makes
it appear to be.
MIR. Cam was made to say in his state
ment in yesterdays Morning News that
the banks are put to an expense of $2.75
per $1,000 both in obtaining and returning
silver to the sub-treasuries This charge
is made only one way. The government
| finds silver as inconvenient as the banks
90, and ii is so anxious to keep it in cir
| culation that it pays the express charges
from the treasury at Washington or any
! of the sub-treasuries in shipping 1t out
| to parties who have RENTED for such
shipments. II is in returning the Silver
| to the sub-treasury or treasury that the
| bankers are put 10 an expense, which
would be considerably lessened by the
establishment of a sub-treasury in Sa-
vannah.
Mr.. Davant, when seen yesterday, called
attention to the regulations of the treas
ury department for the issue and re-
demption of currency. These regulations
make the following provisions in reference
to the issue of standard silver dollars ard
fractional silver coin:
STANDARD silver dollars are issued by
| the treasurer and assistant treasurers in
redemption of silver certificates and treas
ury notes of 1890, and are sent by express
| a the expense of the government, in sums
or multipes of $500, for silver certificates
or treasury notes of 1880 deposited with
the treasurer or any assistant treasurer.
Upon the deposit of an equivalent sum
in United States currency or national bank
notes with the treasurer or any assistant
| treasurer or national bank depository,
| fractional silver coin will be paid in any
| amount by the treasurer or assistant
treasurers in the cities where their several
officers are, or will be sent by express,
in sums of $500 or more, at the expense
of the government, or by registered mail,
at the risk of the consignee, in packages
of $50, registration free, as the depositor
may request from the most convenient
treasury Office. For this purpose drafts
may be sent to the treasurer or the as
sistant treasurer In New York, payable
in their respective cities to the order of
the officer to whom sent. Drafts on New
York city should be sent direct to the
| assistant treasurer, New York, and drawn
| to his order"
You will see," said Mr.. Davant, chat
the cost to the banks of obtaining and
renting silver to the government sub
treasures is not quite so great as it is
made to appear. The government readily
sends out silver either from the treasury
at Washington or from any of the sub
treasures at its own expense. 1t costs
the banks nothing to have 1t sent out Any
bank in Savannah can remit to the as
sistant treasurer in New York its draft
on New York bank and the draft will
be received at face value and the amount
in silver promptly shipped from either New
| York or Washington, at the expense or
| the government 1t is true that there is
| some expense attendant upon returning the
silver, which would be reduced somewhat
to banks in this vicinity by the establish
ment of sub-treasury in Savannah"
Mr.. Davant explained that the Mer-
| chants National Bank is the depository
| for the postoffice and custom house re-
| ceipts and also for the various disbursing
| officers at Savannah. 1t is allowed TO
keep on hand S12l. 500 of government funds
| secured by government bonds deposited
with the treasurer at Washington The
heads of the commissary, quartermaster
and medical depots have each certain
amount placed to their account at the
bank against which they draw.
Their accounts, however, are hardly
more than petty cash compared with the
large expenditures of these depots, which
are paid for In government warrants or
certificates, payable at the treasury or
some one of the sub-t treasures.
Mr.. Cam makes the argument" said
Mr.. Davant, that thousands of dollars
| in government certificates, drawn upon
| the treasury or sub-treasuries, were paid
out here by the government during the
| last several months, which might have
been cashed here had there been a sub
| treasury in Savannah. AS a matter OF
| fact, these certificates were in great de-
| mand at Savannah. l cashed all that
were presented at this bank at par and
was glad to get them. Other banks also
| received them at par. The wholesale
Merchants. who had dealings with the
| quartermasters, were glad to receive these
| certificates at par, and instead Of cashing
| them here forwarded them to their CORE
| spondent in New York, where they were
also received at par. A sub-treasury
would have been of no advantage what
ever so far as the government certificates
were concerned, for the reason that they
could only have been cashed at par. It
! was an advantage TO the merchants to
| get these certificates, there being a heavy
| demand for New York exchange which