The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-01-29
An ANSWER FROM GAGE
The Senate Receives Reply to the
Allen Resolution.
Lengthy Document From the Sec
retUrS of the Treasury Concerning
New York BanIs-The Corresponds
eHce with StiIIman Submitted.


the Senate today his reply 70 the resolu-
-t.on Of Senator Allen calling on him for
copies of letters and the substance OF any
conversation or agreement which passed
between the Secretary and A B. Hepbarn.
Of the National City Bank Of New York.
relative 10 the relations Of the Treasury
Department with that bank
After reciting the resolution Mr.. Gaze
refers 10 his reply TO the SuIzer resolution
On January 10 and says:
'1iy reply Of January 10. 1890 might well
be reiterated in response TO the present
enquiry, for in if are TO be found by reas-
enable and fair research. enswers TO the
particular enquiries in the resolution now
before me. I viii. however. proceed to an
swer each and every request in the order
in which it is made
one. That the Secretary of the Treasury be-.
and Do l- hereby directed 60 tflt.-sl... a.. II.a
senate copies a JI letters and tire substance 4
eng t.-.f'lslfl1n agreement d. NAV have
Nflttn e- lad with A. B. Hepburn. of The Va
t"nal 'its BANS of New York. IN reply 10 a
- -e,lei ii'n Ar Hepburn ~ him, dated June 8,
"A careful search Of the department files
does not show any answer 10 the letter
Of !. 3. Hepburn. written by him TO me.
dated June .. 1897. nor do I believe that
any answer ever was made 20 said letter
Neither do I recall any conversation had
With A. p. Hepburn in reply 10 such let
ter NOr was there ate that time. o. low.
any agreement made or expectation Of an
agreement 10 be made by the Secretary Of
the Treasury or any Of the officers Of the
Treasury Department with any person or
persons with reference to the subject-nat-
ter Of said letter OF A. B. Hepburn.
The record transmitted with my commu-
uicatou Of January 10. 1900. contains all
there is or ever was. so FAR as know. con-
cerui1E The said letter Of A B. Hepburn
The National City Bank.
Tac- Also copies of any letters. coHmuaiea-
ta--. a-r.sa.su,s, papers, and documents between
t.r I-sss-ry ulFait1Ieut and the Natioual Citv
H.rs- .i New York within Tie period embraced
between Juae :. lsg7. -zL October ., Is17-
1t does not appear from any records OF
the Treasury Department. nor is it within
the recollection Of the Secretary OF the
Treasury. that the department or any Of
Us officers had any relations. either Ofh-
tial or private with the National Ctty
Bank. Cf New York. within the period
embraced between June =. 1857. and Octo-
ber - 1881 so that there are n letters.
communications. agreements. papers. and
documents In the possession Of the de-
qar,msnf
Treasury
CITY Ba-
within .
any -Cr
National
anyone s..
with any --
yate lie.
bank OF It's relationship with the Treasury
department, nor as 70 any other matter
hatever concerning the said bank within
the period named
About the latter part Of October 1897.
as the records viii show. the efforts Of the
present Administration 10 accomplish the
settlement OF the Pacific Railroad indebted
ness were crowned with success. As shown
iu my former communication. the large
sum Of S7S.45S 223.75. formerly looked upon
as doubtful asset was realized TO the
Government
In order not to disturb the business. OF
the country by suddenly Withdrawing 50
large an amount from active use in COM
me7cial channels. ] determined 10 deposit
q portion OF the proceeds OF the Pacific
Railroad settlement in designated deposita-
riss as fully explained in my communica-
tiou OF January 10. 1900
Attention is called 10 page 81 OF Senate
Document No Il, Fifty-siXth Congress,
first session. where IS printed a letter from
The Secretary 20 A. B. Hepburn.
Ir .cr.Iy to yaa.s OF ,he z7th Instant yriU now
>4y In reference Co the large fund coming from
tLe Union Fs,.de road that few DAYS since 1
had personal Interview with Mr. H. ". Can
non regarding tle matter, and o. my request he
has ulds--.ktr to learn how many BANKS viii
uu1llfy O. receive some portion Cf this lTCC fund
hT c,pC-It.r- bonds with the Treasury Depart
usHt. and frC,r lirl expect 10 hear in dag or
two quite lu detail. / have written him today
cnt asked liw to call upon Nr. >rllm2u and 0S-
plain verbally Wh4t ie has undertaken TO Do. In
nI letter 20 BIN suggest that the sum coming
from tle purchasers Dc ulid 20 some one uzuk
and there distributed simultaneously TO such other
Of tlc cCpCsitarleS as We may advise.
! have expressed o. preference for yolr institJI-
tiCn -s rLC original recipient and ui>trihuter oi
tle fund ll reply tl yOu- enquiry, or rather eX-
preston ~ hope tLlt a suitable portion % fLe
fund VIII be left with the bank for q sufficient
length ~ time 20 cner reasonable prOnt 90 cover
the expense IN procuring the necessary bonds 70
cu4iity ls cepa>ifsry. can only say that, while
we can El1@c E3 specihc promises IN that direc-
| tiou. The purpose we have in using dcposit4ry
4 banks fer the iuud. namely, 20 save disJur-
hlucc ~ the money market. VIII induce 10
practice wise discretion in covering the money
into the Treasury proper. There probably VIII be
/ I, Vhcn, as Iou know. S50OoO.Oo0 viii be dis
huIged iu redemption Of the outstanding CovCa-
uleut skies maturing on that day.
a reading OF the above letter will show
I that the Secretary Il the Treasury did not
/ take the initiatiVe with any officer OF the
/ National City Bank with reference 10 de-
] posting The proceeds OF the Union Pacific
/ settlement IN said bank, but Mr.. II. w.
/ Cannon, president OF the Chase National
| Bank, was requested 10 learn how many
| banks would qualify Co receive some pOr-
tion Of this large sum by depOsiuSs bonds
with the Treasury Department %
CorreSpOndence Quoted.
Mr.. Gage then quotes from certain cor
rcspondence submitted by him in response
to the SuIzer resolution. Regarding the
I deposits made i'm the New York Banks the
Secretary says:
- may add, the sole purpose which has
animated the Secretary IN these eounec-
ions vas so TO use the banks as 20 secure,
preserve. and keep the public moneys
without risk or hazard Of loss, and in such
/ form, within the limitations and require
menis OF law. as would best conduce 70
/ the preservation and protection Of the gen.
/ eral Interests Of the people"
Continuing The report takes up that part
| of the resolution calling for copies Of any
/ letters. communications, agreements, pa
| pers, documents. or conversation between
| the Secretary OF the Treasury or hi -' D
/ ordinate officers or officials, and O.
/ cials Of the National City b.
/ New York, or the officials OF
/ National City Bank and
/ ...--..a--- lF sIa -r-e.ertrs,- or F,fe sssh