Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1900-01-18
GAGE AND The BANKS.
Secretary of the Treasury Transmits .
Long Document to Congress Ia Re-
ply to an Inquiry.

Washington, Jan. 11.-Secretary
Gage yesterday sent to congress his
replies to resolutions recently intro
duced in the senate by Mr.. Allen, of
Nebraska, and in the house by Mr..
Sulzer, of New York. The text of his
reply, which is an exhaustive EXPOSE
ton of the management of that
branch Of the treasury finances under
his administration relating to ma
tiona1 bank repositories, contains
about 5000 words, which is supple
mented by special reports from de-
partment officials relative to special
inquiries in the resolutions including
copies of over 1000 letters on the sub
ject under consideration. In summing
up his reply to the inquiries the sec
rotary says:
First-That the reason for utilizing ma
tiOnal banks as repositories for public
moneys as authorized by law, when the
receipts of the treasury were exceeding
its expenditures, has been to avoid the
disturbance to business which the with
drawal of large sums of money from ac-
tive 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 certainly cause diSaS-
trouS results.
second-The reason for directing the in
ternal revenue receipts into depository
banks at this time is that the revenues
are now largely exceeding disbursements
from month to month, and seem likely to
do so for an indefinite time. This con-
ditiOn would be a menace 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.
Third-The reason for directing all OF
| the internal revenue receipts to one de-
pository was that it is more convenient
| to first collect the receipts of numerous
| offices into one place, and to make the
desired distribution from it, than to give
new instructions daily to 113 collectors.
| The most convenient agency to effect such
| distribution is a bank which is a mem
Der of the New York clearing house.
Fourth-The reason for selecting the
| National City bank as such distributing
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 $4000,00O, and that OF the
Hanover national bank 81, 950,500 The Ma
| tionaI City bank was therefore the one
| most naturally chosen. OF the 6S banks
| applying for a share of the deposits, the
National City bank, the Hanover national
| bank and three others, applicants for
over $500 600 each, are the only ones out
of the IS constituting group one, which
| have not been supplied the full amount
for which they had offered security.
Finally, under my administration of the
treasury department, no discrimination in
| favor of one bank against another has
| been made. Generally speaking, when an
! increase in depository banks was desired
all have been invited to qualify them
selves for receiving such money and
have been equally and equitably con-
| sidered in their respective relations &c
! the treasury.