The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-01-11
Observation-Disclosures
Containing Government Deposits Are
a Part OF the United States
Treasury.
DEPOSITS FTHEGOyFREMFNT
Funds We're Made In Order to Pro,
tsct Business Interests Accord
ing to Law.

WASHINGTON. Jan. 1O.-secretary
Gage to-day sent to Congress his re-
plies to resolutions recently introduced
In the senate BY Mr.. Allen, of Nebraska,
and in the house by Mr., sulEer, 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 re-
IatIng to national bank deposltorles,
contains about 5000 words. which is
supplemented by special reports from
department officials relative to special
inquiries in the resolutions, including
copies Of over 1000 letters on the sub
feet under consideration. In summing
up his reply to the inquiries the secre-
tary says:
First. That the reason for utilizing
national banks as repositories for pub
lie moneys, as authorized by law, when
The receipts Of the treasury were ex-
ceedlng It's expenditures, has been to
avoid the disturbance to business which
the Withdrawal of large sums Of money
from active circulation to the treasury
vaults must inevitably cause. The
policy thus pursued by me has been the
established policy OF the government
for many years and departure from 1t
under similar conditions would GER
talnly cause disastrous results.
Second. The reason for directing the
Internal revenue receipts into deposl-
tory banks at this time is that the rev
enues are now largely exceeding dis
bursements from month to month. and
seem likely to do so for an indefinite
time. This condition would be a men-
ace to the business world IL assurance
were 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 business use.
Third. The reason for directing all Of
the internal revenue receipts to one de-
pOsltory was that 1t is more convenient
to first collect the receipts Of numerous
Offices into one place and make the de-
sired distribution from 1t than to give
new instructions daily to 113 collectors.
The most convenient agency to effect
such distribution is a bank which is a
member of the New York clearing
house.
National City Bank.
Fourth. The reason for selecting the
National city Bank as such distribute
ing agent was that at the time the or
der was Issued 1t was one OF but two
banks which had offered bonds sufi-
Client to cover the amount Of the daily
deposit. Its bond deposit was S4,o0O0OO,
and that JS the Hanover National Bank
31,slO.5OO. The National City Bank was
therefore, the one most naturally
chosen. or the sixty-eIght banks ap-
plying for share OF the deposits, the
National City Bank. the Hanover Ma
tlonal Bank and three others, appli-
cants for over $4,000 each, are the only
ones out of the sixty-elght constituting
group one. which have not been sup
piled the full amount for which they
had offered security.
Fifth. The custom house property
was sold to the National City Bank as
the highest bidder on July 3. 1899. On
der the terms of the sale 1t had the OPP
tIon in paying in cash all Of the pur-
chase money at any time, or part as
IT might elect, above S75O.OOO, which sum
1t was absolutely obliged to pay. It
exercised this option by choosing to
pay S3,2l5,OOO. leaving $4,000 yet due.
No deed Will be executed until full pay
ment has been made.
"The payment was turned Into
the treasury by deposit in the National
City Bank, it having been the estab-
Iished custom of treasury officials, un-
der 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 repositories as
moneys In the treasury. This deposit
was made in a 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 need
ed and could not be utilized, would have
required a withdrawal OF credit that
was being extended In commercial cir.
cles, and TO that extent a disturbance
to the natural order OF business would
have followed. TO have required It's
payment By the National City Bank to
another designated depository would
have been an unEracious dlscrlmina-
ton without substantially changing the
fact.
No Discrimination Made.
Finally, under my administration Of
the treasury department. no dlscrlmln-
alton in favor OF one bank ngalnst an
other has been made. Generally speak
lag. when an Increase In depository
banks was desired. an have been IN.
vitod to qualify themselves for rcrelv-
Ing such money and have beon equally
Continued on Second Pago.)