Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-01-11
SEC. GAGE TO CONGRESS-
Continued from Page 1

600, and that of the Hanover National
Bank S1,9l0,500. The National City
Bank was therefore the most naturally
chosen. OF the siXty-eiGht banks APP
plying for n share of the deposits, the
National City Bank, the Hanover Ma
tional Bank and three others, appli-
cants for over 100000 each are the
only ones out of the sixty-cight const!-
tutinS group one, which have not been
Supplied the full amount for which they
had offered security.
CUSTOM HOUSE PROPERTY.
"Fifth-rhe custom house property
was sold to the National City Bank as
the highest bidder on July ;, 1899 I'm
der the terms of the sale it had the
option OF paying in cash all Of the pur-
chase money Mt any time, or any part
it might elect above S7j0.OOO, which
sum 1t was absolutely obliged to pay
1t exercised this option by choosing to
pay S3.2l5.0o0, leaving $4,000 yet due
No deed will be executed until fun
payment has been made
The payment received was turned
INTO the Treasury by deposit in the
National City Bank, It having been tho
established custom of Treasury Off
cials. under the counsel OF their legal
advisers. supported by decisions of the
supreme Court. to consider moneys on
deposit to the credit of tho Treasurer OF
me United States in designating de-
nositories rs moneys in the Treasury
This deposit was made In n denositorv
Dank for the same reason that other
deposits have been made In them. viz
because to withdraw the currency into
the vaults of the Treasury. when il was
not needed and could not be utilized
would have required n withdrawal of
credit that was being extended in com
mercial circles, and to that extent n.
disturbance to the natural order Of
business would have followed. TO have
required its payment bv the National
CITY Sank to another designated do
pository would have been an I'M
EraciouS discrimination without SUBJ
stantially changing the fact.
NO DISCRIMINATION.
Finally, under my administration Of
me treasury Department no discrlm-
nnlloh IN FAVOR OF one bank against an
other has been made, generally sneak
ING. when Ian increase In depository
banks was desFed. All have been in
Vited to qualify themselves for rcceiy-
ing such money, and have been equally
ana equitably considered in the ire
spective relations to the Treasury"
Ills POLICY REVIEWED.
MT Gage gives n general review of
ms poiicy rs to national bank depos
tories. details the successful fluancin,.
of our Spanish war loan and saws tbof
with the beginning OF the present ifs
cal year the Treasury WIS feeling tha
influence Of The revival of commerce.
For the six months ending with De-
ccmber 3lst 1899, the excess Of ~
CENTS over expenditures; aggregated
81 .O2G,000. This absorption of monov
from an active use into the Treasury
i'a-iaefe=it-eotil,l serve no present af4.;=
purpose caused great public anxiety.
The situation was intensified bv thn
TACT that the fall movemen. of cur
rcncy to the Interior for the movement
or CROPS operated to reduce the cash
reserves at all commercial centcrs. To
avoid increasing deposits in public de-
positories the Secretary offered to an
ticinate interest on the public debt
ara later offered TO buy $50, 600. 900 of
Donds. but the Stringency had become
100 great to be averted by such mems
December 18th financial panic occur
red Prices OF investment securities
fell ruinousiy and the situation no
came so grave as to justify the utmost
interference. The receipts of the Urea
sury for December. it was perceived
"ouIu eSCeeu the expenditures by sew
en- or eight millions. Under these con
ditions a peculiar responsibility was
thrown upon the Treasury. The stat
utes conferred authority 10 place pub-
tic money, EXCEPT customs, i'm desip.
mated repositories, and gave power 10
relieve the situation without possibIc
prejudice to the Treasury's needs. #
was, therefore. announced December
18th that the Secretary would deposit
internal revenue collections with demos
TORY banks TO the amount of thirty or
forty millions. should so much be an
piled for.
HIS PRINCIPLE or ACTION.
The Secretary says his principle of
| action has been 10 so manage the re-
ceipts and expenditures as TO produce
| the least disturbance in that part OF
The money supply which must he at
the service of commercial and indus
| trial use. and submits tables 10 show
this equilibrium was maintained Since
June LIST. 1898. the receipts of the Treas
ury nave amounted to eleven hundred
millions. By tho aid of repositories