The Providence news. (Providence [R.I.]) 1891-1906, 1900-01-10
Why City National Bank Was
Made Distributing Agent
One Of the Only Two Banks That Offered
Bonds Sufficient TO Cover Amount
Of Daily Deposits.

Washington, Jan. 1o.-Secretary Gag
soday sent TO congress his replies TO tn
resolutions recently introduced in tn
senate by Mr.. Allen Of Nebraska an,
in the house by Mr.. Sulzer of New
York The text Of his reply, which 4
an exhaustive exposition OF the man
agement OF that branch Of the treasury
ilnanoes under his administration re.
lating 10 national bank depositories
contains about 5000 words which is
supplemented by special reports from
department officials relative 10 special
Inquiries in the matter including the
copies of over 1000 letters on the SUBJ
ject under consideration.
In summing up his reply the secre-
tafy says:
First-That the reason for utilizing
national banks as repositories for pub
lie moneys as authorized by law when
the receipts FOR the treasury were ex-
ceeding its expenditures. has been 10
avoid the disturbance which the with
drawal OF large sums OF money from
active circulation To the treasury vaults
must inevitably c-use. The policy thus
pursued by zee has been the establish
tt p'litl VI Ailt government Tor MANY
years and a departure from il under
Similar conditions would certutnfy
cause disastrous results.
REVENUES EXCEED DIsBURSE-
MENTS.
Second1The reason for directing the
internal revenue receipts into deposi-
tory banks OF this time Is that the reve-
nues Gre now largely exceeding dis
4
seem likely TO do So for an indefinite
time. Tnis condition would be a men
ace TO the business world IL assurance
were not given that this surplus would
be diverted from the treasury vaults
70 rubllc Repositories. whore, while Sc
cure 10 the government. ii would re-
main available TO business use
Third-The reason for direct ing all OF |
the internal revenue receipts to one de
pository was that m is more convenient |
to first collect the receipts of numerous 1
offices I'm one place and make the desir-
rd distribution from II, than TO give |
new Instructions daily 10 1l3 collectors.
such distribution is effected |
through bank which is "A member o.
he New York clearing house.
NATIONAL CITY BANK.
Fourth-The reason for selecting the
4
ng agent Was thae at the time the or
er was issued 1t was one OF but two !
'anks which had offered bonds sufn, !
lent 20 cover the amount OF the daily
epostt Its bond deposit was 81 900 0OC |
nj that 81 the Hanover National bank !
] $40. 500. The National city Bank wa
therefore, the one most naturally cho-
en-. OF the siyty-eigh, banks applying
or share Of the DEPOSITS. the Nation
'ttv Bank. the Hanover Nation I
Banks and three other applicants FOR
Yer $500 600 each. are the only ones out i
the sixty elgh' constituting group q
ne. which have not been supplied te l
~ tull amount FOR which they had OF {
'rcl security. T
fiith-Tha custom house proper =
as sold 20 the National City Bank J.
ie hlshest bidder on July 3. 1899. Tn a
~ INC terms of the sllc Z. had the ON. s
ON ~ having I'm cash an of the pur u
u''.e. dl any tlmc or any OaI y
nFht ~ GO above s750 mo which s,,,, a
vas absolutely obliged To- paw. II ov Il
~ '",A onilou pv choosing TO pa, ~
y l''o leaving $50 0Oa vet duo y
.ed win De cxeep,ed un.fj fnIi ,,,,.r,c'.. t.
Is been made '''' '''''.' W
AN ESTABLISHED custom !"
The payment recci,ed was fu,ns, q, q
the treasury by deuosits ir ~ So
.hai t'Hy bank il HAVING IN 70 u
! "Is hed CUSTOM uf treasury. nli3cf,is 90
' ~ g, unset of their legal a1,Is- Ia
.n,,. ,.,i,,,,' W. '] decision OF tho su-
Ft'f C"ut DO consider moneys an, y. rc
sit 90 the credit al tho tregsur.r ',r ia
y ilt'd States On dcsigrafed d.r,.G
~ "S lnuheFs in th, ir.1-uI., T,bf. ai
losil was made iu depository. h.I.t fu
N.u"t reason THAT other drp,s'.. b,
,,.,ts iN''te ln thDu. VIZ. b,caus. tu
49, lh' cuirDuc, uio ths
- ti't lltlhuiN Whrts 10 was not ri
dhd could not De- utilized yyal,tS W
Nf re"nired a Withdrawn ,f r,.',i.
~ N's priue extended iu coplru.r,i,t
't'r' and iu thar extent "a Jisrr,h
~ tle isNural order of bustD,s.
ut' nave ioiioW,d. OF haV. r.oi,ir d.
,lN payment by The NationaI CU, .J
,,1 ~ ~ "h"'h designa:d depost,f, pr
ulu naN' hrp0 am uItraciGus dfs I'M
without sube ',,iaiI,. ~
inging tho fact
NO DISCRIMINATION. su
lnaily. under INV administrator o,
department no diecrimi- vo
vh ~ IaNuf az 'ne bank apaiuef an. Ct
- "a. Deeh made. Generally speak- ~
(, Nheh an increase in dop1sfic,v fb
- Was desired. AN have bsan ln,I, a..
~ puautN themselves for rarotvir,, ,,.
n :. money and have been equally ana rel
ilaDl considered lu their raspacfive tlo
IONS tU the treasury "
.,.i' preceding To respond to the ta
""'f'H spe'ihciilN. Secretary Gage
= Erueul review nf bfe tLi. I
~ IN riru hrucfl OF TuTITTT Inn ,,,.t, ON
'tih.e With national banlg dapo.i. | dot
he mites The provisions of tbo the
uifs Whltn make cali uatl,n.t sfr
KING associations designatel fo, Der
80. lh' secretary OF tho sell
g. ti'r "i puhliU money | mu
~ N'f NIf NINiU fLHfNUH mUInr / f...