Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-01-11

oeCftIdry GdSe To-Day sent to Congress
his replies to resolutions recently intro
duced in the Senate by Mr.. Aller, and
IN the House by Mr.. Sulzer. The text
OF his reply, which is an exhaustive ex-
position of the management of that
branch of the treasury finances under
his administration relating to national
bank repositories, contains abou. 5000
words, which is supplemented by spec
ial reports from department officials
relative to special inquiries in the reso-
buttons including copies of over LOCO
letters on the subject under considera-
ton. In summing up his reply to the
inquiries, the Secretary says:
"Ffrst-That the reason foe utilizing
national banks as repositories for pub
lie moneys, as authorized by law, when
the receipts Of the treasury were ex-
ceeding its 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 a departure from
it under similar conditions would GER
tainly cause disastrous results.
"Second-The reason for directing
the internal revenue receipts into de-
pository banks at this time is that the
revenues 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 .cen-
ace to the business world if assurance
were not given that this surplus would
be diverted from the treasury vaults to
public repositories where, while secure
to the government, it would remain
available to business use.
'SThird-The reason for directing all
of the internal revenue receipts to one
depository was that it was more con-
venient to first collect the receipts of
numerous Offices into one place and
make the desired distribution from it
than to give new. instruction 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.
"Fourth-The reason for selecting
the National City Bank as such dis
tribuiting 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. Its bond deposit was
$4,000,000 and that of the Hanover
National Bank $1,91O,500. The National
City Bank was therefore the one most
naturally chosen. OF the sixty-eight
banks applying for share of the de-
posts, the National City Bank, the
Hanover National Bank and three 9TH
ers, applicants for over 100000 each,
are the only ones out of the sixty-eight
constituting group one, 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 highest bidder on July 8, 1899.
Under the terms of the sale it had the
option of paying in cash all Of the
purchase money at one time, or part,
as it might elect, above $780, 900, which
sum it was absolutely obliged to pay.
1t exercised this option by choosing
to pay $3,215,000, 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, it having been
the established custom of treasury of
ficials, under the counsel of their legal
advisers, supported by decisions of
the Supreme Court, to consider money
on deposit to the credit of the treas
urer of the United States in designat-
ed repositories as moneys in the treas
ury. This deposit was made in de-
pository bank for the same reason that
other deposits have been made in them
namely, because to withdraw the
currency into the vaults OF the treas
ury where it was not needed and
could not be utilized would have re-
quired a withdrawal OF credit that was
being extended in commercial circles,
and to that extent disturbance to the
natural order of business would have
followed. To have required it's pay
ment by the National City Bank to an
other city depository would have been
an ungracious discrimination without
substantially changing the fact.
Finally, under my administration of
the Treasury Department no discrim-
nation in favor of one bank against
another. has been made. Generally
speaking: when an increase in deposit
tory banks was desired, all have been
invited to qualify themselves for 70