The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1900-01-13
SEC'Y CAGES RESPONSES
The Secretary Of the Treasury Re-
spends to Congressional Reso-
buttons of Inquiry.
The REPLIES ARE VERY vOLUMIMOUS.
In Summing up the Secretary De-
cIarcs that Whatever Has Been
Done Hnx Warrant of Law and
Hns Been Done to Conserve the
COuntry'x Best Interests.


Washington,J Jan. 10.-Secretary Gage
H.. so, 20 II. u,,E,a q
mas seh1 10 cohsress MS repiles 10
resolutions recently i'll the
Sena+a bx- AR Allen Of Nabr.st. and
~
III the hous by Mr.. Sulzer, OF New
York. Tn text of his reDlv. which is
~ -. FS'
an eNpOs1tlCn oil the man.
noement of that branch of the treos-
nsao. ~. .s.:a.~s
ury nnanccs unuer MS admlnlstra-
ton. relating to national bank depos-
:. -.
ltorles, contains about 1900 words,
which is supDlemented by sDeciaI re-
- ..-
ports from department. o1hclais rela-
tive to special inquiries in the resolu-
tions i~heIuding coPies Oh over l'ooo
letters on the subject under considera-
,;o, IN SUMMING. nm bis rep,v to tho
tloh' III summing up MS reply u inc
inquiries the secretary says:
s.cret.rx C.ue,s Suumipr I'm.
First-That the reason for utilizing ma
tioral 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
active circulation to- the treasury vaults
pursued by me has been the established
policy of the government for many years,
and a departure from 1t 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
ment. it would be available for business
use.
Ehlrd-The reason for directing all the
internal revenue receipts to one depos.
itory was that it is more convenient to
:irst collect the receipts of numerous Of
noes into one place, and to make the de-
new instructions daily to 13 collectors
The most convenient agency to affect
such distribution is a bank which is a
member of the New York clearinghouse.
'ourth-The reason for selecting the
National City bank as such distributing
agent was that at the time the order
was issued, 1t was one of two banks which
had offered bonds sufficient to cover the
amount of the daily deposit. Its bond de-
post was S4,OOO,0W, and that of the Han
over national bank 81, $50, 500. The National
City bank was, therefore. the one most
naturally chosen. OF the IS banks ap-
plying for a share of the deposits, the
National City bank, the Hanover national
bank. and three others, applicants for
over $500, 900 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.
-ffth-The customhouse property was
sold to the highest bidder, on July 3,
1889. Under the terms of the sale 1t had
the option of paying in cash all of the
purchase money at any time, or any part
il was absolutely oblised to- nav II exn
e re si this option by choosing to pay
viii be- execnted mill ffuuiil n ~ eo u eea
been made.
the treasury by deposit in the er Naiio 1ns9
City bank. it having been the estab-
the counsel Of their legal ndv;sars sunl
ported py decisions OF the supreme court.
10 CONSIDER moneys on deposit to the
STeolt OF the treasurer OF the United
states IN oeslgnated repositories as
moneys IN me treasury. rms deposit was
nlaoe IN a depository pank Tor the same
reason mat other deposits have been
inaue IN tnem, VIZ Because TO Withdraw
.ne currency into the vaults or the treas
ury' where II was not needed and could
n3t pc utilzed, WOULD nave required a
"l.5uTawal OF credlt mat was being eX-
,ehueu III commerclal circles, ana to that
extent a disturbance of the natural order
Oh business would nave followed To have
required It's payment by the National Glty
oank 10 announcer designated depository,
would nave been an u~ngracious discrim-
1nation without substantially changing
the fact.
lhally, uhder my ADMINISTRATOR of the
treasury, no discrimination in favor of
one bank against another has been made.
Geherally speaking, when an increase in
depository banks was desired. all have
been invited TO quallfy themselves for re-
ceiVlng such money, and have been equal
~ and equitably considered in their re-
spectlve relations to the treasury.
Pnfora n~rocead;nr 70 raS,o,d +o ,ho
f"""S iS'Iohu " lhc
resolution specifically Secretary Gage
oivcs n uoner,l rav;a,v of bic u.boIa
e' SS"Ni"i iN'0" VI his "noie
course In the branch Of public finances
concerred with n,+;on,I b,nL h,o.;
=" "'i0" '"hn "ePosi-
tories as follows.
-
"en'"' NeNie"'
He notes the provisions of the statutes
which make all national banking associa-
lions designated for that purpose by The
secretary OF the treasury depositories of
public money, except receipts from Gus
toms, under such regulations as NAV he
prescribed by the secretary.
That statute became a law June 2 1854
and its ';rst marked was in
the refuitding operations of 1879. when Sec
rotary Sherman thought IL necessary to
place with national bank depositories
sums of money which reached az hieh as
s279,S44 645. Secretary Fairchild in Iss77
- -