Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-03
PUT IN DEPOSITARIES
GOVERNMENT FUNDS PLACED IN
NATIONAL BANKS.
Anticipating the Customary Fall De-
mand for Increased Amount of
Money-Attitude Of Democrats.

1t was stated authoritatively today that
Just before leaving Washington last week
secretary Shaw authorized the placing OF a
considerable amount of government money
In national bank depositaries. How many
banks have been the benefciaries of this
order is not known, and cannot be learned
at the treasury, but the fact has leaked out,
and national banks all over the country are
seeking to have themselves added to the
list of those favored by the treasury. No
more deposits are to be made at this time,
1t is stated, and probably no action will be
taken on applications that are pouring in
until Secretary Shaw returns to Washing
ton some time this month. Banks that are
making applications to become depositaries,
or for additional deposits, represent that IL
funds are placed with them they would
have no trouble In keeping down interest
rates and in meeting the fall demands for
money.
Nothing is known at the treasury as to
what Secretary Shaw's policy will be as to
increasing deposits or depositaries. Inas-
much as there has been no scarcity of
money, Secretary Shaw's intentions in this
respect are not known. Last year Secre-
tary Shaw took no action until the situation
In New York became critical as to de-
mand 1t. The recent action Of the Secretary
and the expectation that he will place large
sums with the banks later have caused a
jump in the price of U. S. bonds so that
there practically none available for Sc
curity for deposits except at high prices.
Attitude of the Democrats.
The democrats Of the country are under
stood to be watching Secretary Shaw's
policy in turning government funds over
to national banks with deep interest. DEM
ocratic leaders coming to Washington and
giving expression to their views here and
In their home papers find much to criticise
ir the further placing of deposits with ma
tional bank depositares. They are likely.
1t is said, to increase their criticism in
view of the placing of funds with banks
when there is trouble in the money mar
ket. The position of the democrats, 3s
repeatedly outlined Is that If the Treasury
Department is so running over with money
as to not know what to do with it except 10
place 1t In national banks without interest,
1T is time for cutting down customs
charges that result In the accumulation Of
such large sums Of money, thereby relieving
consumers of some of the burden they may
be carrying. Let the people benefit and
not the national banks is slogan the
democrats are creating for the presidential
election next year.
Such men as Senator German are repre-
sented as being pleased with the adoption
OF policy by the treasury which WILL they
say, make 1t all the easier for them to dem
onstrate the necessity of reducing the tariff
1t is said they believe they can appeal to
the people along these lines, and will not
hesitate to DO so. For nearly a year the
national banks of the country have held
over $150,00O,00O OF government funds, and
this Is to be increased.
Secretary Shaw is rated as a pretty good
politician himself, and the belief of his
friends and the republicans Is that he
knows what he is doing, and feels that the
republicans can meet any issue the demo-
Gratis may make to turning over further
sums of government money to national
banks The Secretary is believed to have
talked with the President about the whole
matter, and the supposition is that the
President fully indorses his policy.