Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-01-29
GAGE AGAIN REPLIES
Response, to Senate Resolution of
. January Is.
INFORMATION REGARDING CITY BANK
Did Not Answer the Much Quoted
I "T-, 4
Hepburn Letter.


DEP SITS OF MONEY
Tho Secretary of the Treasury today
transmitted to the Senate his reply to the
resolution of January %, calling for fur
ther information as 10 his dealings with
the officials of the National City Bank of
New York. Secretary Gage quotes in full
the Senate 'esolution. and adds that it
might be considered as fully answered by
his communication of January 10, in reply
to the Senate's first resolution of inquiry
of January 3 on the same subject. He
adds, however, that he will endeavor to
supply to the best of his ability whatever
may have been lacking in his first answer.
The Secretary then takes up the Senate
resolution of January o by paragraphs.
His reply.sin brief. is as follows:
To Reply to Hepburn Letter.
g One. That the Secretary of the Treas
ury be, and he is hereby, directed to trans
NIT to the Senate copies of all letters and
the substance of any conversation or
agreement he may have written or had
with A b. Hepburn of the National City
Bank of New York. in a reply to letter
from Mr. Hepburn to him, dated June 8,
1897
"A careful search of the department files
does not show any answer to the letter Of
A. y. Hepburn written by him to me.
dated June 3, 1897. nor do 1 believe that
any answer ever was made to said letter.
Neither do 1 recall any conversation had
with A. Il. Hepburn in reply to such letter.
Nor was there at that time, or now, any
agreement made or expectation OF an
agreement to be made by the Secretary OF
the Treasury any of the officers OF the
Treasury Department with any person or
persons with reference to the subject mat
ter of said letter of A. b. Hepburn.
THE record transmitted with my COM
muncation of January 10, 1900. contains
all there is ever was, SO far as know,
concerning the said letter Of A. B. Hep
burn.
No Relations With City Banks.
Two Also copies of any letters. COM
munications, agreements. papers and docu-
ments between the Treasury Department
and the National City Bank of New York,
within the period embraced between June D.
1897, and October. q, 1891
at does not appear from any record of
the Treasury Department. nor is 1t within
the recollection of the Secretary of the
Treasury, that the department or any of its
officers had any relations, either official or
New York. within. The period embraced be-
tween June ), 1877 and October 81. 1897, so
that there are ne letters, communications
agreements, tpapers and documents in the
possession ofSthe department which passed
between the Treasury Department and the
Ma tional City Bank within that period
Deposit of Government Funds.
The Secretary calls attention to the neces-
sity which arose later in October. 1897, of
disposing in some way of the large sum of
money ls5S. .223) which was realized from
the settlement of the Pacific railway debt
without drawing this money ont of &C tive
channels and thus precipitating a financial
disturbance He refers to his letter to Mr..
A. b. Hepburn, printed in full in his first
reply. in which he told Mr.. Hepburn that
Mr.. Ii. w. Cannon of the Chase National
Bank had already 1bsen requested ito as
certain how many banks would qualify as
repositories to receive portion of the $780,
600 900 of the railway fund which was to be
dsbursed in the redemption of government
skies about January first
The Secretary adds: THE National City
Bank could readily qualify by the deposit
Of public bonds to receive a large amount.
1t was necessary that there should be in
this instance an original recipient and dis
tributor of the fund. because one check
alone WAS drawn in amount SIG, 6i5, 250. 1t
ought to occur readily to the minds of the
| most inexperienced in banking affairs that
it required an institution of some consider
able magnitude to handle such check.
las shown in the communication of jan
uary 10, 1900. the National City Bank did
become the original recipient and distrib-
utor of this fund, and that as fast as GER
tain other banks qualified, 1t (the National
| City Bank transferred to those institu-
tons as follows
Distribution by City Banks.
ITO the Chase National Bank. 81. 900 900;
to the Hanover National, 50, 600 600; to the
Fifth National, $2oOOO0; to the American
Exchange National. 100000; to the Nation
al Bank of the Republic, $500. 900; to the
Seaboard National, $5O0.0OO, and to the
Western National, 81 100000, all of which
sums. together with the amount held by
the National City Bank, secured by depos-
its of bonds Of the United States, We're sub
sequently withdrawn and paid into the sub
treasury at New York. The Secretary be-
| lieves that he accomplished by such tran
saction what he has taken pains to do
since, namely, the avoidance of that sort
| of disturbance in the money market which
affects not merely speculative affairs, but
which, as sad experience has too often de-
| monstrated, spread throughout The whole
commercial and industrial fabric, bringing
ruin and disaster such as close the doors
of factories and mills, throws labor out of
employment and invite years Of busine SIS
stagnation, the like of which was witnessed
during the period of 1893 to 1897
Il may add, the sole purpose which has
animated the Secretary in these connections
was to the banks as to secure pre-
serve and keep the public moneys without
within the limitations and requirements of
| law. as would best conduce to the preser-
walton and protection of the general inter-
ests of the people.
Section 4 relates to the request for let
ters and kilograms bearing on alleged CON
ference with MIR. Morgan in relation to the
treasury deposits in the national bank de-
positories in New York" Secretary Gage
replies:
Mr.. StiIlman's Letter.
There are no letters communications
agreements, papers CT documents on file in
the Treasury Department, between the Sec
rotary of the TREASURY his subordinate
officers or officials and the officials of the
National ity,BankIcf New York. or the
officials of the INaticpal City Bank and the
Secretary of the Treasury Or his subordi-
mates, in reference to- a letter from the Sec
rotary of the Treasury to James Stillman.
president of the atienal City Bank of New
York. of December II, 1897. in which the
Secretary wrote, Il have yours of the Goth
instant and node Your suggestions as to a
A4r