Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1900-01-11
GAGE, HIS REASONS.
Why He Deposits the Revenue
Surplus in Banks Ex.
planned to Congress.
SAYS 1T IS ACCORDING TO LAW,

For One Thing, and n Good Thing for
Business for AnOther-AIso why the
National City, of New York, Was select
ed for a special Duty reat Britain Re-
plies Tentatively to Our Representations
Regarding COntraband of War.
Washington, Jan. 11.-Secretary
Gage yesterday sent 10 congress his
replies To resolutions recently intro
duced in the senate by Allen of Ne
braska and in the house by Sulzer of
New York. The text of his reply,
which i exhaustive. 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
LOGO letters on the subject under con-
sideration. In summing up his reply 10
inquiries the secretary says:
Purpose of Depositing Money.
''First-That the reason for utilizing
national banks as repositories for pub
lie monies, as authorized 10y law,
when the receipts of the treasury We're
exceeding its expenditures has been TO
avoid the disturbance TO business
which the withdrawal of large sums
IF money from active circulation TO the
treasury vaults must inevitably cause.
The policy thus pursued 10y me has
been the established policy of the gov
crnment for many years. and n depar-
ture from il under similar conditions
would certainly cause disastrous re-
suits.
Why 1t l. Done at This Time.
'Sccond-The reason for directing
the internal revenue receipts into de-
pository banks ut this time is that the
revenues are now largely exceeding
disbursements from month 10 month.
and seem likely To do 50 for an in
definite time. This condition would be
Il menace 10 the business world if as
surance We're not given that this sur
plus would Ice diverted from the treas
ury vaults to public repositories where.
while secure TO the government. 1t
would remain available TO business
use.
why They All Went to One Bank
'.Third-The reason for directing all
of the internal revenue receipts 10 one
depository WAS that il il more conven-
lent to first collect the receipts of nu-
merous offices into one place, and 10
make the desired distribution from il.
than TO give new instructions daily 10
113 collectors. The most convenient
agency to effect such distribution is a
bank which is member of the New
York clearing house.
why the National City Was Chosen.
''FOurth-Thc reason for selecting
the National City bank as such dis
tributin- agent was that at the time
the order was issued il was one ofb Ut
two banks which had offered bonds suf
iicicnt to cover the amount of the daily
deposit. Its bond deposit was $1,000
600. and that of the Hanover National
bank Sl.9J0.OOO. The National City
bank WIS. therefore. the one most nat
urally chosen. Of the siXty-eight banks
applying for n share of the deposits
the National City bank. the Hanover
National bank. ana three others. appli-
Giants for over SSDO.OOU each. are the
only ones out of the SiXty-cight con-
shutting group one which have not
been supplied the fun amount for
which they had offered security
Denies ANY Discrimination.
The fifth para graph explains the de-
post of the money received for the
New York custom house property, and
the final para graph Of the summary
of reasons says: Finally. under my
administration OF the treasury depart
mcnt no discrimination in favor of one
bank against another has been made. |
Gccnrally speaking. when an increase
in depository banks was desired. all
have been invited TO qualify them |
selves for receiving such money and |
have been equally and equitably CON |
sidered in their respective relations to |
H..