New-York tribune., 1902-01-07
TO BE CITY'S STRONG BOX.
NATIONAL CITY PRACTICALLY CHOSEN
BECAUSE 1T CASHED DRAFTS
OF $3,5OO,OOO ONE DAY.

Because II can cash the city's drafts the
amount of S3,5O0,OO0 in a single day, 1t did
on Thursday OF last week. without winCing.
the National City Bank yesterday received an
unofficial notice that 1t would probably be again
designated as the clearing house for Man
haitian Borough. In other words, IT will for two
years longer be practically the citys strong
box, with an average deposit of SO 100000 day.
high official in the National City Bank de-
clared that the banks efforts to accommodate
the city at every turn had been appreciated. and
that the cty's banking commission. consisting
OF the Mayor Controller and Chamberlain was
not likely to designate a new Manhattan clear
ing house" The Peoples Trust Company. of
Brooklyn. will probably be continued as the
Brooklyn Borough clearing house" while for
Queens It will be the Queens County Bank. for
Richmond the Bank OF Staten Island, and for
The Bronx the Twenty-third Ward Bank The
city's balance with the Peoples Trust Company
Of Brooklyn, usually is more than $1,0O0O0O
with the Queens County Bank $1OOOOO with the
Bank of Staten Island $4,000 and with the
Twenty third Ward Bank. 100000
The record breaking payment for one day. on
January . which is said to have endeared the
National City Bank to the Chamberlain's Of
flee. caused by unusually large bond in
terest payments. and the cancelling of maturing
bonds for Brooklyn an1 Manhattan. These. in
addition to the salaries of city employees. made
the disbursements Of towering proportions.
\ National City Bank official in commenting
tho drafts the city made on 1t January
>. said
We knew that of them were coming. and
thSy didm aT Hs Only two or tRree banks in the
city carry surplus which would permit of dis
burSemeUts Ike that Thursday last without
more or less embarrassment Four millions Of
dollars. more or less. is good deal of money To
let loose of In day. We haW to pay the city
II We make more than that on the deposit that the
city leaves with us that Is ours and Is taken
matter "l course me CITY uS'd 70 CleaT prlncl-
paUN through the importers ana Traders. Russell
SAGE director there and when the city got
hard pressed. pending the collection of its taxes,
Mr.. Sage used to lend II money. After January /.
1885 however. the Finance Department of the city
felt the need of having unusually large banking
resources at hand and then Is when the National
frequently overdraws certain fund balances. but
long its aggregate balance is adequate
give 1t all the accommodation 1t could reasonably
ask.
Roughly speaking. about every bank In the
boroughs of Manhattan and Brooklyn is de-
pository for city funds depository is different
from a borough clearing house, however. has
already been indicated. The balances to the
City's credit in the repositories small at this
time OF the year. while the five clearing banks
carry large balances all the time.
There a rumOr afioat yesterday In Wall
Street that the National Bank of Commerce,
whose capital like that of the National City, is
S1O.W0.GOO, would be chosen by Chamberlain
Gould as the borough clearing house for Man
day no one in his office would talk about the
rumor The National City people, however. are
confident that they will keep the bulk of the
city's cash balance for two years longer