The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1900-04-20
COUNCIL WILL
BORROW CASH
The First National Bank
Will Loan Council
$4,000 at 4 per
Cent.

There was d surprise given to some OF
the members of City Council last night at
the meeting of that body. MIR. Kane, chair.
man of the Finance Committee moved
the following resolution which was adopt.
cd.
Whereas. BY virtue of certain regula-
tions adopted by the Council upon the re-
port of the finance committee of said
Council, of date OF July 20, 1891, certain
banks were made the repositories of tho
city funds. and in accordance with section
?, of said regulations the Union National
Bank was made The actlve bank: and
"Whereas In the Judgment of the f.
nance committee Of the present Council it
is deemed wise and to the best interests of
the city to make q change in the regula-
tions concerning the deposit of the city
funds; therefore DO 1t
Resolved That the regulations now in
force be rescinded and The following rsgu-
lati0ns be adopted, to take effect at once
upon the adoption Of these resolutions:
Section 1.-The national banks Of the
city Of Wilmington may DO the legal de-
positories OF the public funds, subject to
the approval OF Council
section 2-1he First National Bank
shall be the tctiye bank and tho others
shall ba the depository banks.
section 3-lnterest at the rate Of not
less than per cent per annum shall be
credited by each do Ository bank to the
city monthly on the average deposit and
by the active bank upon sum not ex-
ceeding $50 900, 80 long as this amount
shall BIO OH deposit with it.
Section ALL the cash receipts of the
city shall be deposited in the active bank,
Section 5.-On the second Friday of
each August and February the city treas
urer shall draw from the active bunk aud
deposit in equal parts in each Of tho four
depository banks. us shall have been ap-
proved by the Council, 90 per cent. of said
funds on deposit with said active bank,
provided none of the depository banks
shail.have moro than fifteen per cont.
''oection g. Whenever and Us often as
the city deposit in the active bank shall I've
reduced TO 500 900 tho city treasurer shall
draw from each depository bank tho sum
Of lO,UOJ and deposit he same in the nc,
tive bank, but when tho deposit In the
depository banks Ia reduced to $4,000 or
less, the whole Of said deposit shall be
Withdrawn when the next draft is re-
qnirUd.'
After the meeting OF Council Mr..
Kane stated that the change had
bean made because the Union National
Bank had asked five per cent. interest,
while the ether bank had offered the loan
at per cent.
Tho Republican members of Council
voted NJ on the question.
Union Bank has been o depository for
35 years and therefore when 1t was learned
that the loan was to DO secured from the
First National bank there was u general
surprise.
The following letter was sent to Council
yesterday by tho Union Bank
10 the President and Council of tho City
Of Wilmington:
Gentlemen: Some time ago q represen.
tative of the city visited this bank to as
certain II we would be wiling to advance
sufficient sum to the city to tide over, he
present deficiency in its revenue, and was
assured By US that there would bs no dir
ticuity in arranging the matter. Yester-
day the clerk Of the Council, represen ing
the flnanco committee, came to us and ar
ranged the preliminaries of a loan to the
city for such purpose, in view of the pro-
bnble passing Of resolution by you this
evening authorizing such loan, and
stated to us that per cent would be
satisfactory rate to the city for tho use Of
the money, we made no question about
the rate OF interest to DO paid on this, de-
string simply to assist the government to
the extent of our ability, and believing
the rate suggested q fair and proper one
under the circumstances. We now learn
to our surprise, that without further con-
sultation with us, another bank ha, push
to take rate of interest l per cent. loss
than the rate spoken OF to us Ia apparent
ly claiming TO be doing something extra
ordinary for the city benefit. In dollars
and cents this extraordinary proposition
makes difference OF just 800 and we de-
sire to call your attention TO this In view
of tho fact that time and again heretofore
when this bank WAS sole depository of tho
City's funds, it loaned to the city sums
greatly Ia excess OF the amount now de-
sired by you without charging any inter-
est on the loan whatever.
In order that we may n OF be misunder-
stood and that schemes for cut-throat
banking may be properly appreciated and
defeated we now beg to state that this
bank stands ready to advance to you to
assist he city in tiding over Its deficiency
tho sum Of SAC, 900 desired by you until the
goth day of July next, md will charge you
nothing Whatever for such accolnmodn-
ton, Respectfully yours,
John II. Dandy, Cashier.
The loan Is to last until July % by
which lime it is expected the city will DO
able to refund 1t.