The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-09-03

ing circulated about Wall street-ru-
mors that inpeach the honor and in
tegrity of this nation. The charge that
$3.50, 900 which the daily reports of
the treasury represent to be in the
treasury is not there at all, but every
dollar of it has been turned over to
the banks. So far there has been no
proof submitted to establish the fact,
but the conclusion is arrived at from
observing the known, constant and
persistent violation Of the law by the
secretary of the treasury, which grows
more bold every day. If the secretary
will violate the law so openly and
boldly as he IS known to have done in
several ways, why should he not also
violate it by transferring this $780,
C00,000 of gold to the banks also?
The law in regard to deposits in
the banks is as follows:
"All national banking associations,
designated for that purpose by the sec
retary Of the treasury shall be deposi
tories of public money, except receipts
from CUSTOMS, under such regula-
tions as may be prescribed by the sec
yetary, (but receipts derived from du-
ties on imports in Alaska, the Ha-
waiian islands, and other islands uD-
der the jurisdiction of the United
States may be deposited in such de-
positories, subject to such regulations)
and such repositories may also be en-
Iloyed as financial agents of the gov
ernment, and they shall perform all
such reasonable duties as repositories
Of public moneys and financial agents
Of the government as may be required
Of them. The secretary of the treas
ury SHALL require the associations
thus designated to give satisfactory Sc
curity, by the deposit of United States
EONDS AND OTHERWISE, for the
safe-keeping and prompt payment OF
the public money deposited with them
end for the full performance Of their
duties as financial agents of-the gov
errment And every association so
designated as receiver or depository of
the public money shall take and re-
Ceive at par all the national currency
hills, of whatever association issued,
v vhich have been paid into the govern
rlent for internal revenue or for loans
or stocks. -(Section 5,153, title g.,
chapter 1, PIP. 1866, U. S. Comp. Stat.
l1901). Act of June g. 1864, c. 106, sec.
As, 13 Stat. 113; portion in parenthesis
added by act of March 3, 1901, c. 871,
sec /, 81 Stat 144S.)
The papers announced a while ago
that when the gamblers of Wall street
were in such straits that panic
seemed inevitable, the secretary open
ly violated the law by depositing $780,
100000 in the banks and taking other
security than United States bonds 1t
will be noticed that the law provides
that the secretary may make these de-
Iosits in the banks upon the security
OF United States bonds "and other
WISE" not cor otherwise" The banks
fave several times tried to get au-
rhority to construe those words as
'or" otherwise, but every attorney
general has held against them. The
bonds of the United States must be
there and the government can ask ad-
eitional security if it so wishes.
1t will also be seen that the law
also says: "All national banking as
sociations, designated for that pur-
Lose by the sec retary of the treasury
shall be repositories of public money
EXCEPT receipts of customs" The or
der of the secretary of the treasury to
DEPOSIT the receipts from internal rev.
enues, which have always been treated
on the books of the treasury depart
ment as a part of the customs re-
ceipts, in the national banks, is an
other violation of the law. 1t is an
archy. No other word will describe it
But this is not ALL Another direct
violation Of the law Is contained in the
recent order, about which the daiies
have said nothing, allowing bankers
to deposit Philippine cej tificates in
stead of l.onds as security for deposits
The brokers and dealers in bonds on
Wall street are sending out circulars
like the following:
"To the National Banks: We beg
to offer, subject to previous sale OF
advance in price, the unsold portion
of So, 100000 Philippine As running one
year from September 1, 1903 at 102 ga
deliverable Tuesday, September |, OF
with accrued interest at any later date
"These bonds are acceptable to the