Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1900-01-10
Gives Congress Facts as to
the National City
Bank.
THE DEPARTMENTS ATTITUDE
Senate Pays Respect TO the
Late Vice Presi-
dent.

Washington, Jan. l0.-Secretary
Gaze today made a vOluminous reply.
accompanied by n large numb of
do :uments. to the resolutions of the
house and senate asking his reasons
for utilizing national banks as deposit
tories for public monies, and why he
directed that all internal revenue re-
ceipts be turned over to the National
City bank of New York. Gage says
under the law, when. receipts in the
treasury are exceeding the eXpendi-
lures. the national banks are utilized
as national repositories iu order to
avert disturbance of business conse-
quent upon the withdrawal of large
sums from active circulation, the
reason for directing that internal revc
nue receipts all be deposited in the
National City bank for subsequent dis
tribution To other designated banks.
because it is more convenient to col
lect all in one place first than to give
fresh instructions daily to llj collec-
tors. 1t was most convenient to have
81 member of the New York clearing
house. and, finally, only two cf Ali the
designated banks made deposits OF.
bonds in sufficient amount to cover
bank had the largest deposit aud was
therefore selected. Gage denied that
the treasury ever Disseminated un-
fairly between banks.
Dealing With Deps, itoriss
The secretary then gives an outline
of his policy in dealing with public
repositories which he shows in line
with that of former secretaries of the
treasury for 20 years. lie points out
the settlement of the UCion Pacific
railroad debt in 1897 would have taken
$5S, 900, ,0OO from circulation in lum D,
causing great disturbance in business.
hut for the utilization Of depository
banks. Again ut the outbreak of the war
with Spain. the same means were used
10 break the strain when the gov
crnment was borrowing 5000, 900, 900
The secretary then takes up the late
furry in Wall street owing to light
money and tells how the trea sury in
tervened TO avert it, first by anticipa-
tion of interes next by purchasing of
bonds, and finally when the situation
became critical and threatened to
spread. by increasing the amounts in
the depository banks, by turning over
10 them current internal revenue
receipts.
To the Memory Of Hobart.
Washington, Jan. 10. The senate
paid an eloquent tribute Of respect
and affection to the memory of Vice
President Hobart. At the opening
Cages report on the relations of the
treasury to the depository of the ma
tional banks was presented and refer
red 10 the finance committee. Butler.
of North Carolina. offered a long reso-
luton on trusts and gave notice ne
would discuss it later. Sewell. Cf
New Jersey. then addre sed the senate
in eulogy of Hobart. Daniel OF Vir-
@inia. followed. Dspew then pIi an
eloquent tribute to the dead states
man. and was listened to with deepest
attention.
Remarks were also made hv C-ck-
rel. of Mis- souri,, CullOm, of Illinois.
Davis, of Minnesota, Morgan of Ala
bIml. and Lodge. of Massach usetts.
Other Proceedings.
Hale, ol Maine. introduced a resC-
luton asking for Information regard
ing the seizure of American property
in Delagoa by, declaring it had been
detained unIawfully and unIustly.
Upon objection by Lodge the resolu-
tiUn went over.
The ways and means committee of
the house adopted u resolution for the
appointment of n committee of five
by the chair to report auth )rity and