The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1900-02-03
SEgY CAGES Response.
Reply to Resolutionso of Inquiry Sent
to the Senate by the Secre-
taryof the Treasury.
HAS PRACTICALLY ANSWERED BEFORE.
He, However, Sends the Additional
Reply in Order to supply What
ever May Have Been Considered
~ Lacking in the First Commu-
nication.

ever May Have been CoAshoercu
q. Lacking in the First Commu-
nication.
Washington, Jan. 30.-The secretary
of the treasury transmitted to the SEN
ate his reply to the resolution of jan
nary IS, calling for further informa-
ton as to his dealings with the officials
of the National City bank OF New
York. Secretary Gage quotes in full
| the senate resolutions, and adds that it
might be considered as fully answered
by his communication of January 10,
in reply to the senate's first resolution
| of inquiry of January 3, on the same
| subjects. He adds, however, that he
will endeator to supply, to the best OF
his ability, whatever may have been
lacking in his first answer.
The secretary's Response.
The secretary then takes up the SEN
ate resolution of January %, by para
graphs. His reply is as follows:
"n.-That the secretary Of the treasury
i he and he IS hereby directed to TRANSMIT
ssuhstance Of any conversation, or agree
nment he may have written or had with A.
3. Hepburn, of the National City bank
Of New Hsnb xerk 10 II hiim nsp Gas sS June ls't s. 1877 aaom
l.. "A careful search Of: the department
nIss does pot show any answer to the iet,
terjof A. B; HePeurnss written by h MN 70
thai any was ever made to said letter,
| Neither. do I recall any conversation had
with A. B. Hepburn in reply to such let
l.serl Nor was there at that time. or now,
anI agreement made or expectation Of an
agiecment to be made by the secretary
| Of the treasury or any OF the officers OF
l son or persons with-reference TO the sub
1ect matter Of said letter Of A. d. hep
burn. ~
Concerning the sai letter Of A. B. Hep
e"'E.ai.-Also copies of any letters. com
munications, agreements, papers and zoe.
uments between the treasury department
5, 1897. and October q, 1897
"It does not appear from any record OF
the treasury department, nor Is 1t within
the recollection of the secretary Of the
treasury, hat the department. or any OF
its officers had any relations, either ofi-
cial or private, with the National City
| banl: of New York, within the period en-
braced between Jun 5. 1897, and october
q, 1897. SO that there are no letters, COM
munications, agreements, papers and doc
unients in the possession OF the depart
| ment, which passed between the treasury
department and the National City bank
within that period"
The secretary calls attention to the
necessity which arose, late in October.
1897, of disposing in some way of the
large sum of money ($5s,4 4s, 223) which
was realized from the settlement of
the Pacific railway debt, instead of
withdrawing this money out of active
channels, and thus precipitating a
financial disturbance. He refers TO his
letter to Mr.. A. B. Hepburn, printed in
full in his first reply, in which he told
Mr.. Hepburn that Mr.. H. W. Cannon,
of the Chase National bank, had al
ready been requested ITO ascertain
how many banks would qualify as de-
positors to receive a portion of the
$50, 900, 900 Of the railway fund which
was to be disbursed in the redemp-
ton of government skies about Janu-
airy first"
The secretary adds:
1.-The National City bank could readily
qualify by the deposit OF public bonds to
1 tClt q ol6S oAiceAA@ bSSSe
sary that there should be, in this in
stance. an original recipient, and dis
trihutor of the fund. because one check
alone was drawn, in amount $13, 645, 80. 1t
ought to occur readily to the minds of the
most inexperienced in banking affairs,
that it required an institution of some
considerable magnitude to handle such a
check.
"As shown in the communication of jan
uery 10, 1900, the National City bank did
become the original recipient and dis
trii.utor of this fund, and that as fast as
certain other banks qualified, it CThe Ma
tional City bank. transferred to those in
To the Chase national, s., 600, 600; to the
Hanover national, 81, 900. 600; to the Fifth
national. $500, COO; to the American Elk.
change national, SSoo, Ooo; to the NatiSnal
board national. $500, COO, and to the West
ern national, 81. 900. 600, all of which sums,
together with the amount held by the Ma
bends Of the United States, were subse.
qrently withdrawn and paid into the sub
treasury at New York. The secretary be-
action, what he has taken pains to dc
SINCE. namely, the avoidance of that sort
OF disturbance in the money market which
affects not merely speculative affairs. but
which, as sad experience has too often
demonstrated, spreads the
whole commercial and Industrial fabric,
the doors of factories and mills, throw Ia
boz out of employment and invite years OF
business stagnation, the like of which was
witnessed during the period 1888 to 1857.
II may add the sole purpose which has
animated the secretary in these connec-
tons was to use the banks so as to Sc
care. preserve and keep the public moneys
such form within the limitations and re-
quirements of law, as would best conduce
to the preservation and protection of the
general interests of the people.
Section 4 relates to the request for
letters and kilograms bearing on al.
legged conference" with Mr.. Morgan in
relation to the treasury deposits in the
national bank repositories in New
York.
Secretary Gage replies:
There are no letters, communications
agreements, papers or on nile
in the treasury department between ths
secretary of the treasury or his subor-
dinate officers. or officials, and the Off
Gals of the National City bank Of New
York, or the officials of the National City
bank and the secretary OF the treasury oil
his subordinateS, in reference to a lettel
from the secretary Of the treasury tt
James Stillman, president of the Nationa
City bank of New York, Of December Il
1897. in which the secretary wrote: I hay'
yours of the 10th inst, and note your sug
gestions as to a conference with Mr.. Nor
gar in relation to the treasury deposits II
the National City. bank repositories Of
New York other than which were com
mpricated to the president pro tempore o
the senate, under date of January 10. 1900
Mo- can 1t be recalled that there wa.
ever any conversation had between tn,
and w Still