The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-30
Complete Answer to Sensation Mon
gers Who Have Been Questioning
His Acts and Motives.
NO FAvoRITIsM TO BANKS
WHY THE NATIONAL CITY WAS Sc
LECTED AS A DEPOSITORY.
Money Kept in Circulation When
Strfngency Might Have Caused
Panic-NO Letter to Hepburn.

VI the treasury transmitted TO the Senate
| his reply to the resolution of JAN %, call
ing for further information as to his deal
| ings with the officials of the National CITY
| Bank of New York. Secretary Gage quotes
in full the Senate resolution, and adds that
1t might be considered as fully answered by
| his communication of Jan. 10 in reply to the
Senate's first resolution of inquiry of Jan. g.
| on the same subject. He adds, however
| tnat ne VIII endeavor to supply, to the best
| of his ability, whatever may have been lack
ing in his first answer. The secretary then
| takes up the Senate resolution of JAN g.
by paragraphs. His reply in brief, follows:
| "First-That the secretary of the treasury
| be- and he is hereby directed TO transmit
| TO the Senate copies of all letters and the
substance of any conversation agreement
| he may have written or had with A B.
| Hepburn, of the National City Bank of
| New York, in reply to letter from Mr.
Hepburn to him, dated June 5, 1897. A
| careful search of the department files does
not show any answer to the letter of A. b.
| Hepburn, written by him to me, dated June
%. 1897, nor do / believe that any answer
| was ever made to said letter. Neither do
| L recall any conversation had with A. Is.
| Hepburn in reply to such letter. Nor was
there at that time, or now, any agreement
| made or expectation of an agreement to
be made by the secretary of the treasury
| or any of the officers of the Treasury De-
partment with any person or persons with
| reference to the subject matter of said
| letter of A. B. Hepburn. The record trans
| mitted with my communication of Jan. 10,
| 1900. contains all there is or ever was, so
| far as 1 know, concerning the said letter
| Of A. B. Hepburn.
"Second-Also copies of any letters, COM
| munications, agreements, papers and docu-
| ments between the Treasury Department
and the National City Bank, of New York.
-f<.1 hot
! 5, 1897, and Oct. q, 1897 1t does not appear
| from any record of the Treasury Depart
| ment nor is it within the recollection of the
| secretary of the treasury that the depart
| ment or any of It's officers had any rela-
| lions, either official or private, with the
| National City Bank, of New York, within
| the period embraced between June s. 1897,
and Oct. q, 1897, SO that there are no let
| tiers, communications, agreements, papers
| and documents in the possession of the de-
partment, which passed between the Treas
| ury Department and the National City
| Bank within that period.
A NECESSITY.
| The secretary calls attention to the ne
cessity which arose late in October, 1897, of
disposing in some way of the large sum
of money (s5S14S,2 25) which was realized
from the settlement of the Pacific Railway
| debt without drawing this money out of
active channels and thus precipitating a
| financial disturbance. He refers to his let
| ter to A. B. Hepburn, printed in full in his
| first reply, in which he told Mr.. Hepburn
that H. W. Cannon, of the Chase National
| Bank, had already been requested to CAS-
| certain how many banks would qualify as
| repositories to receive portion of the
| 200 of the railway fund which was
| to be disbursed in the redemption of gov
| eminent skies about JAM ].
The secretary adds: 1.-The National City
| Bank could readily qualify by the deposit
| of public bonds to receive large amount.
1t was necessary there should be in this in
| stance an original recipient and distribu-
| ter of the fund, because one check alone
| was drawn, in amount $13,645,25O. 1t ought
| to occur readily to the minds of the most
| inexperienced in banking affairs that it
| required an institution of some considerable
magnitude to hanuie such a check. AS
| shown in the communication of Jan. 10, 1900,
| the National City Bank did become the ORR
| gnal recipient and distributor of this fund,
and that as fast as certain other banks
qualified, ii (the National City Bank trans
| ferred to those institutions as follows: To
| the Chase National, 81 100000; to the Han
| over National, $2,0O0,000; to the Fifth Ma
tional, $500, 900; to the American Exchange
National, $5OO,000 to the National Bank OF
the Republic, $780, 900; to the Seaboard Ma
tional, 100000, and to the Western Ma
tional 81, 100000, all of which sums, to-
gether with the amount held by the Ma
tional City Bank, secured by deposits of
bonds to the United States, were subse-
quently withdrawn and paid into the sub
treasury at New York.
1.-The secretary believes that he accom-
plished by such transaction what he has
taken pains to do since, namely, the avoid
ance of that sort of disturbance In the
money market which affects not merely
speculative affairs, but which, as sad ex-
perience has TOO often demonstrated,
spreads throughout the whole commercial
and Industrial fabric, bringing ruin and
disaster such as close the doors of factories
and mills, throw labor out of employment,
and invite years of business stagnatlon,
the like of which was witnessed during the
period 1893 to 1897. L may add the sole pur-
pose which has animated the secretary In
these connections was sc to use the banks
as to secure, preserve and keep the pubic
moneys without risk or hazard of loss and
in such form, within the limitations and e.
quirements of law, as would best conduce
to be preserved and protection of the
general interest of the people.
FLAT DENIAL.
Section relates to the request for letters
and kilograms bearing on an alleged 'con-
ference with Mr.. Morgan in relation TO the
treasury deposits in the national bank de-
positories in New York" Secretly Gage
REPLIES: There are no letters. communica-
tions, agreements, papers or documents on
file in the Treasury Department. between
the secretary of the treasury or his subor-
dnate official or officials and the officials
of the National City Bank. of New York.
or the officials of the National City Bank
and the secretary of the treasury or his
subordinates in reference to letter from
the secretary of the treasury to James
Stillman, president of the National City
Bank of New York, of Dec. q. 1897, in
which the secretary wrote: 1 have yours
of the 10Th inst. and note your suggestions
as to a conference with Mr.. Morgan in rela-
ton to the treasury deposits in the national
bank repositories of New York, other than
were transmitted with my communication
to the president pro tempore OF the Senate,
under date of Jan. 10. 1900 Nor can ii be
recalled that there was ever conversation
had between the secretary of the treasury
and Mr. Stillnlan, or between the secretary
of the treasury and any other man, con-
corning the said letter"
The fourth section of TIE Senate inquiry
is quoted as follows: And the secretary
of the treasury is further directed TO trans
nit TO the Senate copies OF any letters,
agreements, communications. papers, 81 ,cu
ments or other Information in his posses
sion or In the possession OF the Treasry
Department respecting the conference BE-
tween the secretary of the treasury and
James Stillman, president of the National
City Bank, j. Pierpont Morgan. OF New
York. and any other person or persons W tn
whom he conferred in Philadelphia as men
toned I'm his letter to James Stiliman
president of the National City Bank. of
New York, of Dec. q, 1897: and aiso
whether or not the conference resulted IN
rSta nd IN, ard