The sun., 1900-04-20
GIYS NEW ACTIVE BANK
City Council Borrowed $4,000
From the First National
Bank.
UNION BANK TURNED DOWN
Chairman Kane SAID Change Was
Made in the Active Bank, Be
cause They Were Able to Bor-
row Money at Better Rates
at Another Bank.

City Council at its meeting last even
ing passed al ordinance making an ex-
traordinary appropriation of $24, 900 for
the redemption OF loans and Sic, 900 for
the incidental and miscellaneous ac
count. As the ordinance authorizes
Council to temporarily borrow the
money, Chairman Kane of the finance
committee arranged to borrow $40 900
from the First National Bank.
He introduced the following resolu-
ton:
Whereas, By virtue of certain regua-
tions adopted by the Council upon the
report OF the finance committee of said
Council Of date OF July 90, 1891, certain
banks were made the repositories Of the
city funds, and in accordance witn sec.
tion Of said regulations the Onion
National Bank was made the active
bank; and
Nv hereas, In the Judgment Of the
finance c1mmittee of the present Council
it is deemed wise and to the best interests
Of the city to make a change in the regu-
latlons concerning the deposit 81 city
funds Therefore be it
Resolved, That the regulations now
in force be rescinded, anu the follow ing
regulations be adup'ed to take fleet al
once upon the adoption of these iesolu-
tlons:
"Section |. The national banks Of the
city OF Wilmington may oe the legal de-
positories OF the public funds subject to
the approval OF the Conncl.
"Section 2. The First National Bank
shall be the active and the others Shall
be the depository banks.
section 3 Interest at the rae of not
less than two (2l per cent. per annum
shall be credited by each depository
bahk to the city monthly on it's average
deposit and by the active bank upon
sum not exceeding $4,000, so long as
this amount shall be on deposit with it.
Section 4. All the cash receipts Of
the city shall be deposited in tie active
bank.
"Section 5. On the second Friday OF
each August and February, the City
Treasurer shall in the usual way draw
from the active bank and deposit in
equal parts in each Of the depository
banks as shall have been approved bv
the Council, sixty per cent OF said funds
on dep sit with said active bank, pro.
vided that none of the depository banks
shall receive mue than fifteen per cent
Section 6. Whenever and as often as
the city deposit in the active bank
shall be reduced to $50 00O, the CITY
Trt asurer shall draw from each deprsi-
tory tank the sum oi $4,000 and deposit
the same in the active tank, but when
the deposit in depository bank is re-
duced to $4,000 or less the whole of
said deposit shall be drawn when the
next draft is required"
These resolutions make change in
the city's active bank from the Union to
the First National Bank.
Mr.. Stewart arose and asked the rea-
sons for making this change.
Chairman Kane replied that it was
necessary for Council to borrow last
night and they were able to get better
rates from another bank, meaning the
First National Bank.
The resolution was passed with two
disseI ting votes, those of Messrs Stew
art and Pierson, Republican. Mr.. Fisl e.,
the other Republican member OF Council,
was not present at the meeting.
After the meeting OF Council it was
stated that the Union Bank had wanted
. per cent interest for the money but
that Il First National Bank had only
asked per cent. 1t was stated that
about twelve years ago Council overrun
its account at the Union for $50 900, for
which no interest was ever asked by the
bank.
The $4,000 has been borrowed for
exactly three months, or until the Goth
of July.
Council last night passed the April
appropriation for the Board of Educa-
tion of $l2,920 OIL, and che ok wac drawn
for the amount.