The times. [volume] (Richmond, Va.) 1890-1903, 1900-01-11
SECRE GAG
INQUIRY
Exhaustive Exposition Of Manage
nent Of Finances.
The EsTaBl ls i i . POLICY ::l';
i ,.. Been Customary Tor Years 10
UtiliEe National Banks as Dsposi.
tories for Public sioncy-Au-
shori1cd by La
Exhaustive Exposition Of Manage
The EsTABLls Ed POLICY.

II -
WASHINGTON. D. c.. Jan. 1o.-secre-
tary Gage to-day sent to Congress his
replies to the resolutions recently intro
duced in the Senate by Mr.. Allen, Of Ne
braska, and the House by Mr.. Sulzer. OF
New York The text<o of his reply. which
iss an exhaustive exposition Of manage
1nent Of that branch Of the treasury
finances under his administration. re.at-a
ing to national repositories. contains
about 5000 words. which is supplemented
by special reports from department Off
Gals relative to special inquiries in the
resolutions. including copies of over one
thousand letters on the subject under
consideration.
A SUMMARY.
In summing up his reply to the snqui-
ries, the Secretary says: First-That
the reason for utilizing national banks
as repositories for public moneys. as
authorized by law. when the receipts OF
the treasury were exceeding Its eSpendl-a
lures. has been to avoid the disturbance
TO business, which the withdrawal of
large sums of money from active circu-
latiou TO the treasury vaults must anevl-i
tablS cause. The policy thus pursued by
me has been the established policy of the
government for many years. and DEF
,,arture from it under similar conditions
would certainly cause disastrous results.
EXCESSIVE REVENUES.
.,Second-The reason for directing the
internal revenue receipts into depository
banks at this time is that the revenues are
low Oh, &c
from month TO month and seem likely to
do so for an indefinite time. This condi-
ton would be a menace to the business
world If assurance were not given that
this surplus would be diverted from the
treasury vaults to public Repositories;
where, while secure to the government.
it would remain available to business
use.
..Third-The reason for directing all
OF the internal revenue receipts to one
dA positoTy was that it is more convenient
to first collect the receipts Of numerous
offices into one place and make the desir-
ed distribution from it, than to give new
instructions daily to 1l3 collectors. The
most convenient agency to effect such
distribution is q bank which is a mem
Der of the New York clearing house.
..Fourth-The reason for selecting the
National City Bank as such distributing
agent was that at the time the order was
issued it,was one of the two banks which
had offered bonds sufficient to cover the
amount of the daily deposits. Its bond
deposit was $4.o0o.o00 and that fof the
Hanover National S1,910,5OO. The Ma
tional City Bank was therefore the one
most naturally chosen of the sixty
eight constituting group one, which have
not been supplied the full amount for
which they had offered security.
Fifth-The custom-house property was
sold to the National City Bank as the
highest bidder on July 3rd. 1899. Under
the terms of the sale it had the option OF
Paying in cash all of the purchase money
at any time. or any part It might elect
above $4,000 which sum it was absolute
Il. obliged to pay, leaving $4,000 yet due.
had been made. The payment
received was turned into the treasury by
deposit in the National City Bank, it
having been the established custom of
officials under the counsel of
their legal advisers, supported by de-
cisions of the Supreme Court, to consider
on deposit TO the credit of the
treasurer of the United States in desig-
mated repositories as moneys In the treas
ury.
WOULD DISTURB BUSINESS.
I'll deposit was made in a depository
bank for the same reason that other
deposits have been made IN them, viz,
because to withdraw the currency into
the vaults of the treasury where it was
not needed and could not be utilized.
would have acquired withdrawal of
crenat that was being extended in COM
circles and to that extent a dis
turbance to Ire natural order of business
would have followed.
To have required a payment by the Ma
tional City Bank to another designated
depository would have been an ungracious
discrimination without substantially
changing the fact
Finally. under my administration Of the
treasury department. no discrimination
in favor of one bank against another has
been made. Generally speaking. when an
increase in depository banks was desired
all have been invited to qualify themselves
for receiving such money. and have been
equally and eauitably considered in their
respective relations to the treasury.