The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-11

months could not he regarded by any in
teligent person otherwise than as a dan
| gerous thing for the pablic interests and
| as an entirely useless thing to the Gov
| ernment finances. For these reasons. the
| Treasury Department announced to all ma
! tional banks its desire to place tempo
| rarily on deposit q portion Of this incQm-
| ing fund and all banks, without regard
TO size or location. were invited to apply
and qualify rs temporary depositaries.
| Three hundred and eighteen banks so APP
| piled either for increase or designation
and qualified in various sums by the de-
| post of bonds. as required by Treasury
| regulations. All applications were ac-
cepted; none was refused. The National
| City Bank qualified itself by the deposit
OF more than $4,000 0O0 of bonds. and the
! balance held by said bank on this account
never exceeded l4,0O0.O 600 The Hanover
| National Bank qualified itself by the de-
post OF more than 81 900, 900 of bonds. and
received a balance never larger than
| 81 ,0O0,0 00.
Toward the close of the year 1888, many
| banks scattered throughout the country,
which could not qualify as depositaries for
| lack of bonds during the period when the
bend money was coming into the Treas
ury. applied for designation as temporary
depositaries. ! have already explained
how. with a view to securing a better dis
tribution of the public moneys in deposit
| tary banks, a number OF such banks were
designated at interior cities and towns
early in the year 1899. while at the same
! time the balances in the New York banks
were reduced by transfer to the sub
treasury. On January :, 1899. the Ma
.tional City Bank held as a deposit 500 .565. =
900. The Hanover National Bank, on the
same day. held 81. SOC. 600 By July s. 1899
the National City's deposit had been re-
duced to Sl0.500,o GOO, and the deposit with
the Hanover had been reduced TO si.OT5.-
0O0
Another Transaction.
The next transaction which the Treasury
Department had with the National City
Bank as Government depositary relates
TO the deposit with that institution of the
proceeds OF the sale of the old CUSTOM
house property in the city of New York.
This entire transaction is fully described
in memorandum herewith prepared in
the office of the Supervising Architect
Copies of all papers and documents relating
10 the same are also herewith transmitted
| adopt as my own the memorandum re-
ferred to, because it is a complete and full
olution. | desire to call atteHtion TO one
feature of the case which offers an oppor-
tunity for misunderstanding. Il is alleged
that the Secretary of the Treasury has
violated the law by depositing the proceeds
Of the sale OF this property in a bank de-
positary, because the act authorizing the
sale decreed that the proceeds should be
deposited lin the United States Treasury
as miscellaneous receipts, derived from the
sale OF Government property" Every
United States depositary bank is. within
the meaning Of section 5153. Revised Stat
utes, part OF the United States Treasury.
The moneys which may be deposited in
such bank include all classes of receipts
except customs. and when such moneys are
deposited in such a. bank to the credit OF
the Treasurer OF the United States, they are
I'm the Treasury Just as much as IL they
we're physically on deposit in the Treasury
vaults at Washington. 70
The Comptroller Of the Treasury. whose
decision is Ending upon the executive
branch Of the Government. holds that
money is paid into the Treasury Of the
United States by being deposited with the
Treasurer of the United States here in
Washington. or to his credit with an as
sistant treasurer or in a designated depos-
itary. This has been the uninterrupted and
universal rule governing the accounting
omcers OF the Government for many years.
See the letter of Hon. r. J. Tracewell
Comptroller Of the Treasury, dated jan
uary g. 1900. herewith. a
The practice of the Treasury Department
with reference to depositing money in the
Treasury is shown by letters addressed TO
me by Mr.. J. F. Meline. Assistant Treas
urer Of the United States at Washington,
ID. c.. Mr.. E. b. Daskam who has been
connected with the department thirty-ive |
years, and for many years has been Chief |
OF the Division of Public Moneys, and Mr. |
w. +. MacLennan, who. connected with the |
department for thirty years. has for twenty |
years Of that period been Chief OF the Di- |
vision Of Bookkeeping and Warrants. |
content myself by here quoting one-that |
of the Assistant Treasurer Of the United |
States, Mr.. ]. +. MelInc, VINO for thirty |
four years past has been intimately as
ISOLATED with the business OF the Treasur-
er's Office. His letter is as follows:
Treasury Department
Office Of the Treasurer
Washington. d. C.. January 6. 1900
Sir: In response to your verbal enquiry IS to
what constitutes a deposit ia the Treasury OF
the United States, have 10 say that in nay opiR-
rfaT l..