The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-11
HECHT & CO., 5l3=5l5 9TH Street.

do so for an indefinite time. This condi-
ton would be a menace to the business
world If assurance were not given that this
surplus would be diverted from the Treas
ury vaults to public depositaries where.
while secure to the Government, it would
remain available TO business use.
Third-The reason for directing all OF
the internal-revenue receipts to one deposit
tary was that it is more convenient to first
collect the receipts OF numerous offices into
one place and make the desired distribu
ton from it than to give new instructions
daily TO 113 collectors. The most con-
venient agency TO effect such distribution
is bank which is & member of the New
York clearing house.
Fourth-The reason for selecting the Ma
tionai City Bank as such distributing
agent was that at the time the order was
issued il was one of but two banks which
had offered bonds sufficient to cover the
amount OF the daily deposit. Its bond de-
post was 81 Goa. 000 and that OF the Han
over National Bank S1.9i0.500 The Ma
tional City Bank was therefore the one
most naturally chosen. OF the sixty eight
banks applying for share Of the deposits,
the National City Bank, the Hanover Ma
tional Bank. and three others. applicants
for over $500 eco each, are the only ones
l which have not been supplied the full
amount for which they had offered security.
Fifth-The custom-house property was
sold to the National City Bank as the high
est bidder on July 8. 1899. Under the terms
of the sale il had the option of paying in
cash all OF the purchase money at any
time, or any part it might elect above
S750.0CO, which sum it was absolutely
obliged to pay. II exercised this option by
choosing to pay SS,2i5.O00, leaving $4,000
yet due. No deed will be executed until
full payment has been made.
The payment received was turned into
the Treasury by deposit in the National
City Bank il having been the established
custom of Treasury officials. under the
counsel of their legal advisers, supported
by decisions of the Supreme Court. TO
consider moneys on deposit to the credit
OF the Treasurer of the United States in
designated depositaries as moneys in the
Treasury. This deposit was made in
depository bank for the same reason that
other deposits have beep 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 a withdrawal OF credit that
vas being extended in commercial circles.
and to that extent 4 disturbance to the
natural order Of business would have iol-
lowed. To have required its payment by
the National City Bank to another desig-
mated depositary would have been IN I'M
gracious discrimination without substan-
TALLY changing the fact.
Finally. under my administration Of tho
Treasury Department no discrimination in
favor Of one bank against another has
been made. Generally speaking. when an
increase in depository banks was desired.
all have been invited to qualify themselves
for receiving such money. and have been
equally and equitably considered in their
respective relations 10 the Treasury
Respectfully.
l. j GAGE. Secretary.