New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-11

;%srea centres The Secretary indsPSpGed to
der to aTO9 that he oereS 20 anticipate interest
on s6e ppbe debt and later offered to PGy @
IN the money market had s assumed too great e
is financial panic occurred. Prices OF investment
securities fell ruinously. Interest rates rose
Of the money market was apparent While this
state OF affairs found its most violent expression
and alarm throughput our industrial and CONNER
grave to justify the utmost interference. The
receipts of the Treasury for December II was per
100000 Under these conditions peculiar re-
sponsibility was thrown upon the Treasury The
except customs in designated depositoTies and
prejudice to the Treasurys needs. 1t was there
fore announced on December IS that the Secretary
would deposit internal collections with de-
0O0.OOo should so much be applied for.
TO AVOID FINANCIAL DISTURBANCES.
From this point on the Secretary makes direct
answer to the Congressional inquiry. His principle
Of action has been to manage the receipts and
expenditures to produce the least disturbance in
that part of the money supply which must be at
the service of ercial and industrial use Since
June 1888 the e 6ece ed Of the ID f nhTe
ries the amount in the Treasury at the close of any
M PeTod 6 6rng IN Inas e for the Whole
period. Tables presented show that supstanuai
the relation to the supply of money in the Treas
urg ana the supply IN h 3eTnments con-
nection with the Hanover National and the Ma
resolution. the Secretary shows that the National
City Bank appointed depository on July q,
enue collections until the bond sale in 1885 when
80 ne tbet hank together with four others as
repositories and about s2S 900 deposited with
those banks When another issue of bonds was
made in February 1896, the Secretary OF the Treas
ury again used the National City Bank ana the n
nearly s1OOO0O00, Late in 1887 more than SSSOGoCS
the S Union IN G PaGfc Settlement 10 the trans
fer Of SO large S p5ns use re hyed to
qualify temporary repositories o 61Ight banks SO
qualified the National City for $24oO1WN ana others
for smaller amounts. These deposits We're grad
ually withdrawn by transfer to the Sni6-Ireasgry
When the S2O0.O00OOO war loan was made it was
Sum could not be otherwise than dangerous thing
for the public interests ana useless thlng TO the
the National banks its desire to place temporarily
on deposit portion of this amount and an 4a9ks
qualify as temporary repositories. All applications
Sf tT Banf deposited 4cO6 Of BONDS and the bal
ances paid on this account meyer exceeded S4
100000 of bonds and received balance never larger
than $11,0O0O00.
SALE OF THE CUSTOM HOUSE.
The connection of the National City Bank with
the sale OF the old Custom House property in New
York is described in a memorandum prepared by
the Supervising Architects office The Secretary
however, calls attention to the charge that he has
violated the law by depositing the proceeds in
bank depository when the act defFeed that the Pre-
Treasury" Every United States depository bank
vised Statutes, part of the United States Treas
ury. The moneys which may be deposited in such
bank include all classes Of receipts except Gus
toms. and when such moneys are deposited in such
bank to the credit Of the of the
much as If they were physically on deposit in the
cites decisions Of the Supreme Court which estab-
fish beyond question the legality Of his action
is binding on the executive branch Of the Govern
o hG e ed aey b is 6ea S xh
the Treasurer of the United States here in Wash
ngton or to his credit with an Assistant Treasurer
That has been the uninterrupted and universal
rule governing the accounting officers of the Gov
eminent for many years Letters from officials of
quo or showing tTFH @ moneS depo5ed n depos
itory bank is as much deposited in the treasury
The Custom House property was sold on July 8,
1899 to the National City Bank for 49, 000 which
amount was, $4,000 larger than that rendered by
Of deposit We're forwarded to the Department COW
eeTing 50 10000 credit as proceeds of the Custom
Treasurer with the National City Bank, a deposit
deposf IN The @ Inc funa
jg ,r and orders Subsequently the Natsna
fer to the subIreasury and othe q, National bank
has been paid to the National City Bank for the
Governments occupancy for the reason that such
The corfespondehce Between the Department and
the National City Bank is quoted, showing the re-
tusal OF the Department TO give the National CITY
Bank its full balance of 81 100000 except concurrent
ly with all other banks in the first group, bal
ances of the National City Bank and the Hanover
other hanks
The Secretary of the Treasury closed to-day the
second group Of banks which have deposited bonds
and asked to participate in the temporary deposits
of internal revenue funds. This group contains
about seventy-fve banks and represents about S10.
100000 in bonds deposited. making approximately
&7,OOO00O in all The Secretary's offer has been
open since December is, and it is not expected
that any additional banks will be designated This
determination, however, may be reconsidered If the
demand warrants such action