Evening journal., 1900-04-20
Council Makes First National
City's Active Bank Instead
Of Union.
MR., DAEBYs LETTER TOO LATE
IT NOTIFIED COUNCIL THAT
UNION BANK WOULD LET THE
CITY HAVE $4,000 UNTIL JULY
20 NEXT WITHOUT INTEREST.

Failure on the part Of the Union
Bank 10 loan City Council $4,000 az a
rate OF interest satisfactory TO that
body has resulted In that bank being
no longer the city's active depository.
The city has frequently had as much
as 100000 ON deposit in the bank.
Several days ago it became incum-
bent upon the city to pay an indebted
ness OF $4,000. of which amount S2i,-
600 was for the redemption of loans.
and $4,000 for the Board of Educa-
tion. Union Bank. being the active
bank of the city. was asked to advance
the money. but demaded b per cent. in
ltcrest on the amount
This was deemed excessive by Chair
man Kane, Of the Finance Committed
OF Council whcreupon he looked for
another source from which to obtain
the money. The First National Bank
offered IL to him az per cent. and AS
il was necessary to have the Board of
lfducation's money in hand to-day, and
las the Union National Bank had made
no second overture to provide the loan,
/ Mr.. Kane informed the First National
that its offer would be accepted.
ADOPTED RESOLUTIONS.
Mr.. Kane's action was endorsed by
the adoption by Council last evening Of
the following resolution:
Whereas, BY virtue of certain regu-
lations adopted by the Council upon the
/, report of the Finance Committee Of
said Council of date OF July %, 1891
certain banks We're made the deposit
tories of the city funds, and In accord
ance with section two OF said regula-
tions the Union National Bank was
made the active bank; and
Whereas. In the judgment of the FL
nance Committee of the present Coun-
ell, IL is deemed wise and to the best in
terests of the city to make a change in
the regulations concerning the deposit
Of city funds. Therefore be II
resolved, That the regulations now
in force be rescinded. and that the fol-
flowing regulations be adopted, to take
effect at once upon the adoption of
1 these resolutions.
"Secion j. The National Banks OF
3 the city Of Wilmington may be che
legal repositories of the public funds
I lsubject TO the approval Of the Council
Section p The First National Bank
shall be the active bank and the Others
shall be the depository banks.
> Section 3. Interest at the rate OF
not less than two t2) per cent per an
mum shall be created by each depository
bank to the city monthly on its aver
age deposit, and by the active bank
upon a sum not exceeding $50 900, 50
long as this amount shall be ON deposit
with IT,
Section 4. All the cash receipts OF
the city shall be deposited in the active
bank.
! Section 5. On the second Friday OF
Il each August and February the city
g treasurer shall. in the usual way draw
from the active bank and deposit in
2 equal parts in each of the depository
banks as shall have been approved by
, the Council. 90 per cent. of said fund.
y on deposit with said active bank, pro
y vided that none of the depository banks
shall receive more than 10 per cent.
Section 6. Whenever and as Otter
&c as the city deposits in the active banl
shall be reduced to S5O000 the cit,
p treasurer shall draw from each deposi
y tory bank the sum of $4,000 and de
lpOsit the same in the active bank; hu
when the deposit in a depository banl
is reduced to- $4,000 or less the whole
of sad bank deposit shall be draw
when the next draft Is required
II Exerv member of Council, except thi
two Republicans present. Messrs. Pier
. son and Stewart voted for the resolu
=, tion.
" Mr. Stewart inquired why the chang
~ had been made. and Mr.. Kane said. "a
q we get a better rate OF interest on Oh
- money we are compelled 20 borrow, w
i. think the accommodation such that
- change in active banks is profitable
er LETTER FROM MR. DANDY.
ed, After Council adi0urnd prosiden
Alexander informed the members q
n the body that he had received the fol
nd lowing letter from John II. Danb,
ed cashier OF the Union Bank:
Gentlemen: Some time ago a repre-
nd sentative of the city visited this ban
lv to ascertain If we would be willing {
r. advance a sufficient sum to the city
tide over the present deficiency in II
revenues. and was assured by us ths
there would be no difficulty in arranl
ing the matter. Yesterday the cler
\. of the Council, representing the +
IN nance Committee, came to us and a
ie ranged the prcliminaries of loan
lA the city for such purpose, in view
" the probable passing Of a resolutio
pc by YOU this evening authorizing sue
lfIlil. anu nNNitU 10 Nln AiNil D IHl iiI
would be a satisfactory rate To the eli
OF for the use of the money. We made l
ne question about the rate Of interest
I'D be paid on this loan, desiring simply
assist the city government to q
extent of our ability. and believing q
\. rate suggested a fair and proper ol
le- under the circumstances. We no
Ia. learn. to our surprise. that without fu
ed ther consultation with us another bar
in has pushed itself into the matter, al
he by offering to take a rate of interest
nd per cent less than the rate spoken
m to us, is apparently claiming to be
ate ing something extraordinary for q
lciy's benefit. In dollars and cents h
extraordinary proposition makes a d
the ference OF just 500, and we desire
ma call your attention to this in view
NJ. the fact that time and again heret
fore, when this bank was sole depo'