Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-01-25


or course the bank is very strong.
aud If you will take the pains to look
at our list OF directors you will see
that we have Very great political
claims In view of what was done during
the canvass last year. Very truly,
a. p. HEPBURN,
Fice-President.
This Is not oil that is revealed by
the correspondence. The City Bank APP
pears to have brought to bear other
influences to turn the tide of Govern
ment deposits in its way. Here is a let
ter from Senator Thomas c. Platt to
Secretary Gage. under date OF Decem-
Der 20 last. which will assist in re-
newing public acquaintance with that
persons brand of craftsmanship.
My Dear Mr.. Gage: Kindly read at
tached letter from Mr. James Stillman.
the president OF the National City
Bank, which Is self-eNplanatory. 1t Is
unnecessary for me to say that 1t would
be very gratifying to me if his wishes
conid be respected. You know without
my mentioning 1T now reliable and i'm
portant banking institution the Ma
tfonal City Bank is. I will be pleased
to hear from you at your convenience
regarding the matter
Very sincerely yours,
T. C. PLATT
The attached letter" contained a re-
quest that the City bank be made a de-
pository Tor the postofIice funds-which
request the secretary felt Obliged 10
deny. ~
Then there are other letters. Mr..
stiilman begs for the Philippine funds
or the handling of government eypen-
oitures on that account. He is no
doubt an eSpansionist. Going further
c RI
Hepburn letter had been written. the
vice-president of the city bank writes
70 Mr. Gage expressing the hope that
suitable portion of the Union Pacific
rund Will be left with the bank for n
sufficient length of time to offer n rea-
sonable profit" to cover expenses. etc.
OF qualifying to hold the deposit. and
the Secretary replies that "the purpose
which we have in using depository
banks for the fund.- namely, to save
disturbance of the money market, will
INDUCE us to use wise discretion In
covering the money into the Treasury
proper There probably will be no dis
pursements of the fund until January
l.. President Stillman writes two days
iater expressing appreciation of the
Sccretary's kind consideration"
rms and much more-notably the
following letter from Mr.. Stillman to
Secretary Gage. under date of April s.
OF last year, when there was a brief
panic in trust stocks on the New York
exchange:
AS you have doubtless noticed in the
press. the money market here has been
quite unsettled during the latter part
of the week. We have loaned very
literally in order to allay apprehension
but at such rates as would tend to
force liquidation in highly speculative
securities. 1 think this has been ac-
complished, and the declines which
have taken place will have q wholesome
check. This uneasy feeling, however,
Will probable not subside next week,
notably some sS.O00000 on Monday
the 10th. on the Chicago and Alton
business. think it would tend to help
matters If you can see your way to
deferring the payments which we are
to make on account of Central Pacific
moneys for one week each. trust
that this will meet with your approval,
ana that you will advise me either to-
morrow or on Monday morning byewire
OF your decision in the matter.
This is interesting as exhibiting the
power of large bank over speculation
and business, and also as showing that
Mr. Stillman never kept Secretary Gage
In ignorance of the city banks claims
and wants respecting the free use OF
government money.
What is wanted now is full state
ment of the amount of government
money on deposit with and in the free
use of the city bank from a time pre-
ceding the Hepburn letter of June, 1897.
TO the present time. And the matter
of the sale of the old custom-house to
the city bank. of the deposit OF the
purchase money in the bank. and of the
arrangement whereby the execution of
the deed is held up indefinitely so that
the bank is enable to escape taxation
on the property-this matter also re-