The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-09-30
AN INNOVATION.
More Funds win BE Deposited by the
Government in the Banks.
Washington Bureau of the Standard
No. 1145 q, Street N, W. (


No. 1145 G. Street N. w.
Washington, Sept. 27-The sec
rotary of the treasury is contem-
plating an important innovation
that will be of interest to the bankers
of all cities in which government de-
positories are located. The secretary
has recently been urged to relieve the
tight money market" materially in
crease the deposit Of government funds
in the national banks and to anticipate
the interest on government bonds. This
has already been done as to the October
payments. The law permits the treasury
to deposit it's funds with banking insti-
buttons in any amount, taking as Sc
curity government bonds and tho
treasury now has on deposit in various
institutions something over $4,000, 000
in addition to about $65,000,000 of dis
bursting officers balances, the latter be-
ing held subject to check. Mr.. Gage
now proposes to increase the amounts
on deposit with the banks with the pro-
viso that the banks shall pay interest
thereon at the rate of / per cent per
annum. 1t is claimed by the department
officials that if the banks were COM
PEELED to pay even this low rate of in
terest upon government deposits the
requirement would tend to relieve the
pressure for national deposits and
would turn the attention of the banks
toward adding to their volume of circu-
lating notes. The officials of the depart
ment say that If system were devised
under which national bank circulation
would be more profitable to the banks,
and an interest charge were made upon
national funds in the banks, larger
volume of circulating notes would be
furnished in times Of monetary strin-
gency. 1t is admitted by these officials
that the reason why the banks do not
| ir,nr ftn vol NJ hni nj
| culating notes is that the profits on the
circulation are small. Under the exist
| ing practice, with more than $90000,000
of United States funds deposited in
national repositories, the banks find
that this is a better place to put the
bonds required to be deposited as Sc
curity for funds than in putting up
such bonds as basis for circulating
notes. So plain is this fact that even
in the stringent condition of the money
market in New York during the past
two weeks there has been no''disposi-
ton manifested by the banks to IN
crease their circulating notes rs So long
as the government stands ready to help
the banks cut of all occasions it is not
to be expected any institution will vol
UNFAIRLY increase its circulation which
is subject to small tax, but will use
the bonds necessary to secure such Cir
culation as a basis for increasing gov
ernment deposits instead.
1t is expected that Professor Worces-
ter and ex-Minister DENLY of the Phil
ippne commission will sail for the
United States inside of a week, and
that they will remain in Washington as
advisers of the president until after the
meeting of congress. Whether they Will
return to the Philippines will depend
upon the condition of affairs in the ISL
ands at the close of the year. Mr.. Nc
Kinley is now considering the prepare
ton of his annual message to congress
and is forced to the conclusion that the
data at hand will not permit of that
satisfactory presentation of the admin
istration's side of the Philippine bust
ness to the public which he feels must
be made when congress meets. The
president is very anxious that every
possible point in favor of the present
policy of the administration shall be
brought out, and he is hopeful that
Messrs. Worcester and DENLY will be
able to shed some favorable light upon
a number of the most perplexing ques-
tons and enable the president to pre-
sent them in an attractive manner to
congress, which will have promptly to
consider a deficiency bill carrying some
$50, 900 900 for expenses already in
Cured in the unauthorized Philippine
"war." HOSFORD.,