The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-01-10
GAGE EXPLAINS.
Continued from First Page.)

(COntinued from First PaSe)
City for s24, oOo. 900 and others for small
er amounts These deposits were grad
ually withdrawn by transfer to the sub
were finally discharged. When the
5000 0O0, 600 war loan was made, it was
seen that the paying into the treasury
of such a sum could not be otherwise
than a dangerous thing for the public
interests and a useless thing to the gov
eminent finances.
The treasury announced to the ma
tional banks its desire to place tenn
porariIy on deposit a portion of this
amount and all banks without regard
to size, or location, were invited to
qualify as temporary repositories. All
applications were accepted. None was
refused. The National City bank de-
posted $14,O00O00 of bonds, and the
balances paid on this account never ex-
ceeded $14, 000, 900. The Hanover Nation
al deposited 81 100000 of bonds and re-
ceiVed q balance never larger than $11,
000,00
DEFINES I'm THE TREASURY"
The connection of the National City
bank with the sale of the old custom
house property in New York is described
in a memorandum prepared by the
sllperyising architect,s Office In that
connection, however, the secretary calls
attention to the allegation that he has
violated the law by depositing the pro-
ceedS in a bank depository, when the
deposited Gin the United States treas
ury." Every United States depository
bank is, within the meaning of section
5153 of the revised statutes, a part of
the United States treasury. The
moneys which may be deposited in such
a 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 lin the treasury" just
as much as if they were physically on
deposit in the treasury vaults at Wash
ington. The secretary cites decisions of
the supreme court which establish be-
yond question the legality of his ac-
ton.
The comptroller of the treasury,
whose decision is binding upon the ex-
ecutive 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 assistant treasurer, or in a
designated depository" That has been
the uninterrupted and universal rule gov
erning the accounting officers of the
government for many years. Letters
from officials of thirty or forty years
service in the treasury are quoted,
showing that money deposits in a de-
pOSltOry bank is as much deposited in
the treasury of the United States as
when deposited in any sub-treasury.
The customs property was sold July
3, 1899 to the National City bank, for
SO, 265, 000 which amount was $780, 900
larger than that rendered by the next
highest bidder. August 2Sth, certificates
of deposit were forwarded to the de-
partment covering So, 2100 900 credit as
proceeds of the custom house property
in the general account of the treasurer
with the National City bank, a deposit
tory bank. The treasurer duly accept
ed the fund as a deposit in the treas
ury." 1t was subject to his jurisdic-
ton and orders, and subsequently the
National City bank was ordered by the
treasurer to transfer to the sub-treas-
ury and other National bank depositor-
les sums aggregating SO, 100000.
No rent has been paid to the Ma
tional City bank for the government s
| occupancy for the reason that such
payment awaits appropriation by con-
gresS
The correspondence between the de-
partment and the National City bank
| is quoted, showing the refusal of the
department to give the National City
bank its full balance of $4,000, 000 ex-
| cept concurrently with all other banks
in the first group, the balances of the
National City bank and the Hanover
National bank being built up pro rata
with all other banks.