Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-01-10
For Placing Money in Ger.
tain New York Banks.
ONLY AN ACCOMMODATION
Will Facilitate the Business of the De-
partment and Will do an Injustice
TO No 0ne-The Reply to the Res
OlutiOnS.

Washington, Jan. 1O.-Secretary Gage
to-day sent congress his replies to reso-
lutions recently introduced in the senate
by Allen and in the house by Sulzer of
New York The text >of his reply, which
is an exhaustive exposition of the man,
agement of that branch of the treasury
finances under his administration relat-
ing to national bank repositories, con-
tains about 5000 words which is supple
mented by special reports from depart
ment officials relative to special inquiries
in the resolutions, including copies Of
over 1000 letters on the subject under
consideration. In summing up his reply
to inquiries, the secretary says:
"First-That the reason for utilizing ma
tional banks as repositories for public
monies as authorized by law when the re-
ceipts Of the treasury We're exceeding its
expenditures has been to avoid disturb
ance to business which the withdrawal of
large sums of money from active circula-
ton to the treasury vaults must newt
ably cause. The policy thus pursued by
me has been the established policy of the
government for many years and depart
ure from 1t under similar conditions
would certainly cause disastrous results.
''Second-The reason for directing in
ternal revenue receipts into the deposit
tory at this time is that the revenues are
now largely exceeding the disbursements
from month to month and seem likely to
do so for an indefinite time. This con-
ditiOn would be menace to the busi-
ness world if assurances We're not given
| that this surplus would be diverted from
the treasury vaults to public repositories
where, while secure to the government, 1t
would remain available to the business
| world.
'"rhird-The reason for directing. all in
ternal revenue receipts to one deposi.A Ary
was that it was more convenient to coll
lect the receipt of one office in one place
and the desired distribution from it than
! to give instructions daily to 113 collectors.
The most convenient agency to effect such
distribution is bank which is member
of the New York clearing house.
"Fourth-The reason for selecting the
National City bank as such distribution
agent was that at the time the order was
issued it was one Of but two banks which
had offered bonds sufficient to cover the
amount of the daily deposit. OF sixty
! eight banks applying for share of the
deposit the National City bank, the Ha-
mover National bank and three other ap-
plicants for over $80O.00O each are the
only ones out of the sixty eight constitu.
ting the group, none of which have not
been supplied the full amount for which
! they had offered security.
| "Fifth-The customs house property
was sold to the National City bank as the
| highest bidder on July 8, 1899. Under the
terms of the sale it had the optlon of pay
| ing in cash all of the purchase money at
any time, or any part it might elect save
| $3.50, 900, which sum it was absolutely OBJ
! liged to pay. 1t exercised it's option by
choosing to pay $3,215,000 leaving $50, 900
yet due. No deed will be executed until
full payment has been made. The pay
ment received was turned into the treas
ury by deposit in the National City bank
! 1t having been the established custom OF
! the treasury officials, under counsel OF
the legal advisors. supported by the de-
cisiOn of the supreme court to consider
moneys on deposit to the credit of the
treasurer of the United States in desig-
! mated repositories as moneys in the
treasury. this deposit was made In ths
depository bank for the same reason that
other deposits have been made in them
viz: Because to withdraw 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 was being expended in COM
mercial circles and to that end disturb.
ance to the natural order of business
would have followed. To have requir-
ed its payment by the National City bank
to another designated depository would
have been an ungracious discrimination
Finally, under my administration of
the treasury department no discrimina-
tion in favor of one bank against an
other has been made. Generally speak
| ing, when an increase in depository banks
was desired, all have been invited to quail
ify themselves for receiving such money
and have been equally and equitably con-
sidered in their respective relations to the
treasury.