The county record. [volume] (Kingstree, S.C.) 1885-1975, 1900-01-18

a. srp!rs IN the Treasury. Nr. Gage Dc
sIaresis Il Ncnac" to Eusiness-Why
the National City HaatC Was Chosen t"
Distribute Revenue Collections - The
Custom House Purchase.
WASHINGTON, u. G. (S2e"iaO. secretary
Gage has sent to Congress his reply to the
resolutions recently intro iuced in the Sea-
ate By Mr.. Allen OF NohrasSa. aud in the
House by Mr. SulzeC, OF New York.
The reply is an exposition Of tue Ma
tioral Bank repositories. contains about
rine thousand words, aud is supplemented
by special reports from department Of
ncials and copies o. over ono thousand les-
ters-
TIE Secretary gives 4 uGmber OF reasons
for his course. Hs says he utilized Ma
,ional banks as depositor:cs under the law,
and that not to Withdraw large sans in
stead OF doing so would disturb business.
The revenues largely exceed the diSburSe-
ments. aud this would be menace 10 bust
ness II the surplus were not diverted from
tho Treasury vaults.
Regarding the choice o: the National
City EanE, he says the reason "was that
~ the time the order was issued il was oae
of but two banks which had offered bonds
sufficient To cover the amount OF the daily
deposit. Its bond deposit was p 4,OO00 0Oo.
and that OF the Hanover National Bank
81, ,S10, 500. The National City Bank was
therefore the one most naturally chosen.
go. the sixty-eiSht banks applying for
share Of the deposits, the National City
Bank, the Hanover National Bank ant
three Others, applicants for over SSOo,OaO
each, are the ooly ones oCt OF the sixty
ajght constituting group one, which have
not heea supplied tbs fuE amount Tor
which they had offered security.
'"The Custom House property was sold
TO the National CITY Bank rs the highest
bidder on july g. 1892. Under the terms OF
the sale II had the option OF paying In cash
all OF the purchase money at any tine or
any part il might elect above S75o,O0O,
which sum it was absolutely obliged to pay.
Ii exercised this option bv choosing to pay
S3,2150C0, leaving $4,000 yet due. No
deed Will be executed until full! payment
has been made"
IN the matter OF tho Custon-Hoa5e de-
post, Secretary Gage saws:
"The payment received was turned into
the Treasury by deposit in the National
CITY Bank, i having been the established
custom OF treasury officials, under the
counsel OF their legal advisers. supported
by de .isions OF tho Supreme Court, to con-
sider moneys on deposit to th" credit OF
the Treasurer OF the United States In desiC-
mated repositories rs moneys in the Treas
nry. This deposit was made in 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 required
q withdrawal Of credit that was being eX-
tended In commercial circles, and to that
extent disturbance to the natural order
OF business would have followed.
"To have REQUIRED ITS payment by the
National City Bank to another designated
: depository would have been an ungracious
discrimination without substantially
changing the fact.
"FinaIly under my administration OF the
the Treasury Department no discri;Gina-
tion IN favor OF one bank against another
has been made. Generally speaking,
when IN increase ln depository baaks was
desired all have been invited to qualify
themselves for receiving such money. and
have been equally and equitably consid-
cred in their respective relations to tho
Treasury"