Albuquerque daily citizen. [volume] (Albuquerque, N.M.) 1895-1903, 1900-01-10
GAGS REPLIES.
Secretary Of Treasury Replies to
the Sulzsr Resolutions.
He Gives Reasons for Depositing In
National Banks.
Secretary Of War, Root, Not Q Candidate
for vice President.
REAR ADMIRALs APPOINTED.

Washington, Jan. 10. Secretary Gage
to-day sent to congress his replies to the
resolutions recently introduced In the
senate by Allen and In the house by
Sulzsr, OF New York. The text OF his re-.
ply, which is an exhaustive exposition OF
the management OF that branch OF treas.
ury finance under Its administration re.
lating to national bank repositories con-
tains about 1900 words, which are sup
plemsnted by special reports from de.
psrtment OIL 5isls relative TO special In
Quiries In resolutions including copies OF
over 1000 letters on the subject under
consideration. In summing up his reply
TO the inquiries the secretary says:
"rhe reason for utilizing the national
banks az repositories for public moneys
authorized by law when receipts OF the
treasury were exceeding Its expendi.
tures, has been TO avoid disturbance TO
business which the withdrawal OF large
sums Of money from active circulation
to the treasury vaults must inevitably
cause.
THE policy thus pursued by me has
been the established policy OF the gov.
ernment for many years. and n depar-
ture from II under similar conditions
would certainly cause disastrous results
"The reason for directing the internal
revenue receipts into the depository
banks at this time Is that the revenues
are now largely exceeding the disburse.
ments from month to month, aud seem
likely to do 80 for an indefinite time.
This condition would be menace to the
business world II assurances was not
given that this surplus would be diverted
from the treasury vaults to the public
depositors where, while secure to the
government. would remain available to
the business world.
''The reason for directing all internal
revenue receipts to one depository was
that 1t was more convenient to collect
the receipts In one Office In one place
and desired distribution from 1t, than TO
give instruction daily to il3 collectors.
'The reason for selecting the National
City bank as such distributing agent
was that at the time the order was issued
II was one OF but two banks which had
offered bonds sufficient to cover the
amount OF daily deposits. Its bond de.
posit was 100000 and that OF the Han
over Nationsl bank sl,95O,5OO. The Ma.
tionsl City bank was therefore the one
most naturally chosen.
"Under mJ administration OF the treas.
ury department. no discrimination In
favor of one bank against another has
been made"
With regard to the recent deposit OF In
tsrnal revenue collections with the Ma.
tlonal City bank, the secretary says:
December Is financial panic Oc-
Cured. Prices OF inye5tm snt securities
fell ruinOusly. Interest rates rose to fab
ulons rates, and general constr ictlon oi
the money market was apparent. The
situation was believed TO % 80 grave a.
to justify the utmost interisrencs. Re
ceipts of treasury for December, II wa
perceived. would exceed the expsndi.
lures by seven or eight millions. Under
these conditions. a peculiar responsible
ity was thrown upon the treasury.
"rDe statutes conferred auth ority e
place the puolic money. except customs,
In designated repositories, and gave tn,
power to relieve the situation without
possible pref ldice to the treasury's needs
1t was, therefore, announced December
18th that the secretary would deposit In
ternsl revenue collections wit h the de
pository banks to the amount OF thirty
or forty millions, should 80 much be Cd
piled for"
From this point on the secretary makes
direct answer 10 the congressional In.
quiry. His principle OF action has been
to 80 manage the receipts and expendi
tares as to produce the least disturbance
ID that part OF the money supply which
must be at the service OF the commerc cia
and industrial use. Since June lat, 1898
the receipts OF the treasury have
amounted TO eleven hundred millions
BY the aid OF the repositories, the amount
In the treasury at the close OF any quar-
terly period during the tims never Rose
more than t2s, 10000 above the ayerag,
for the whole period. Daring the history
OF the governments connection with tn,
National City bank, specifically inquired
into by the resolution, the secretary
shows that the bank was appointed tn,
depository on July q, 1894.
The connection OF the National Cit,
bank with the sale OF the old custom
house property In New York Is describe,
In a memorandum prepared by super
vising architects office. la that connec
tlon, however, the secretary calls atten
tlon to the allegation that he has VIC
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q,