Omaha daily bee., 1900-01-11
SECRETARY CAGES STATEMENT.

The statement sent TO congress by
Secretary Gage in response to requests
for information regarding the deposits
of public funds in national banks is
comprehensive and conclusively an
swers the criticisms that have been
made upon the s~ecretary's action. He
shows that he has proceeded in this
matter in strict conformity with the
law, that there has been no favoritism
shown and that what he did was
prompted solely by consideration for
the public interest.
The receipts of the treasury have for
several months been in excess of the
expenditures. This accumulation of
money in the treasury, if continued,
would inevitably result in Il disturb
ance to business. A monetary strin-
gency had been produced which if not
relieved might have had serious conse-
quences. The only source of relief
was the national treasury. Two means
were Mt its command-the purchase Of
bonds and the deposit in banks of in
ternal revenue receipts. Secretary
Gage adopted both. He first pur-
chased bonds, but his was too slow n
process to arrest the movement toward
~stringency in the money marEet. 1t
gave little and but temporary relief
An eXigency arose which in the judg-
ment of the secretary of the treasury
justified the utmost Interference"
The deposit of Internal revenue re.
ccipts in banks that were government
repositories and which furnished the
required security was ordered.
In all this the secretary unquestion-
ably acted within the authority con
fcrred upon him by law. But it was
alleged that there was discrimination
and favoritism toward one bank-the
National City of New York. This in
stitution has been for years a govern
ment depository. 1t is one of the
strongest banks in the country. I'm
mediately after the order for deposit
ing internal revenue receipts was made
this bank deposited 100000 in bonds
as security for deposits. 1t was mani
festly convenient if not absolute
necessary to have the money sent to
one depository for distribution to the
Others and the National City bank was
chosen because it had furnished a
larger bond security than any other
bank: in fact there was but one other
that had furnished an amount sufficient
to cover he daily deposits. Every in
telligent business man must see the
propriety of this. There was no favor
itism in the matter whatever, as is con-
cluslvely shown by the statement of
Secretary Gage that of the siXty-elght
banks applying for IL share IF the de-
posts the National City is one of five
applicants for 100000 each, which have
not been supplied the full amount for
which they had offered securities,
Secretary Gage also conclusively dis
poses Of the criticism in connection
with the deposit of the money for wh'ch
the New York custom house was sold.
The property was bought by the Ma
tional City bank, which paid all the
purchase money except $4,000. In
stead Of locking this money in the
treasury, where it was not needed, il
was allowed to remain in the bank, OF
course available to the treasury when
ever required and in the meantime sub
iect TO other employment. Whatever
may be thought of the %eXpediency OF
this, it is perfectly obvious that there
was nothing illegal about it, as has
been charged. Secretary Gage points
out that moneys on deposit to the credit
of the treasurer of the United States
in designated repositories are regarded
as moneys in the treasury. He might
have deposited this money in SOME
other bank or in several banks. but so
far ms the treasury is concerned there
would have been no advantage in do
ing this.
Secretary Cages clear and compre-
hensiye statement must satisfy all
fair-minded men that in the relations
between the treasury and the banks he