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

public money After quoting these Sc
lions Of the law which were involved in the
case, : stice NcKepna said
It is obvious from thssc provisions that it was
only public money Of the United States Of
which national banks could he made dcposi,arics,
and it was therefore only public money which
an Officer could deposit in them. whether he
received IL originally or received it 10 disburse.
This is the ruling in the Branch case, and it is
clearly applicable TO the case a; bar.
These two cases which have been re-
ferred to as conclusively determining the
unlawfulness of the deposit OF the pro-
ceeds Of the sale OF the old custom-house
property in New York in the National City
Bank. a designated depositary. are in fact
fully confirmatory of the legality of my
action in the premises.
In this connection. reference is also
made to the letter of the Solicitor of the
Treasury. which appears among those ac-
companying this communication.
A reference to the memorandum pre-
pared in the Office of the Supervising Archi-
tect. referred to above, will show that the
old custom-hOuse property was sold July
,. 1899. to the National City Bank Of New
York for S3,265, 900, which amount was
$3.50. 900 larger than that rendered by .he
next highest bidder. August 2S 1925 GER
tificates Of deposit were forwarded 10 the
department covering 1910. 600. which was
credited as proceeds Of old custom house
property in New York in the general ac-
count of the Treasurer OF the United
States with the National City Bank.
designated iepositary. OF this deposit the
Treasurer OF the United States was in
formed. and the fund was duly accepted
by him as a deposit in the Treasury.
subject to his jurisdiction and orders.
Sn " bn We
ordered by the Treasurer of the United
States to transfer to the subtreasury and
to other national-bank depositaries a sum
approximating $500. 900. In the mean
time new internal revenue receipts have
been deposited with such bank to an
amount substantially equivalent
No rent has been paid to the National
City Bank for the Governments occupancy
Of the old custom house premises, for the
reason that such payment awaits appro-
priation by Congress.
The Distribution.
In previous part of this communication
/ have reviewed in general the situation
leading up to the panic of December IS
last, and have quoted in full the announce
that day to the effect that the Secretary OF
the Treasury would place in designated
depositaries the incoming internal revenue
receipts, to a total of s30, O0O,o 600 or 100000,
600. should so much be applied for. The
record will show that early on the morning
OF the 18th OF December, 1893. the National
City Bank had, in pursuance Of my an
deposited with the assistant
treasurer at New York $1,000 goo in United
States bonds, which it desired to pledge as
security for deposits. During the day ap
plications Of a similar kind from various
parts OF the country were received. and so
continued until the evening of Decembe:
%. when IL was found that sixty-eight
banks had applied either for original desig
nation or for an increase in their former
deposit allowance. The total sum thus ap
piled for aggregated ST., SAG, 600.
On Tuesday, the 18th OF December. held |
a conference with the Treasurer of the |
United States as to safe and convenient |
way 10 distribute the incoming revenue |
among the numerous applicants. with the |
view of giving to each his fair and just |
without favoritism toward any. |
As result of this conference, the Treas !
irer was directed to address a letter to |
he National City Bank OF New York, a |
.opy of which is as follows: