The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-05
WILL WITHDRAW DEPOSITS
20 PER CENT. OF GOVERNMENT DE-
POSITs TO BE wITHDRAWN.
VIII Mean Withdrawal of Three
Quarters of Million from the
Seven indianapolis Banks.

Secretary Shaw, OF the treasury department.
has issued formal notice TO all national banks
holding government deposits that they will be
called upon in within a short time. possibly ten
days. &c forward 10 some one of the New York
depositary banks 20 per cent of their govern
ment deposits TO be applied upon the Panama
canal payment. The local banks will probably
receive their notices to-day.
This will mean a withdrawal of a little more
than three-euarters Of a million dollars from the
seven national banks Of Indianapolis. The gov
eminent deposits held by the local institutions
amount TO about 50. COO, and 20 per cent. OF
this amount will be little more than s725, 900.
The largest individual holding of government
deposits by local bank is s1.000.OoO. and the
smallest holding $50. 900.
The withdrawal of three-quarters of million
dollars from the local banks Will not have the
slightest tendency TO disturb the local money
market. This statement made yesterday
by the president of one Of the largest banks.
The prevailing rate for time money maintained
by the local banks is per cent, and it will
not be changed a fraction of a per cent. by the
withdrawal OF part of the government deposits.
The total amount Of government deposits held
by all the national banks is Sl73. 900, or an
amount that figure. and the total amount
TO be applied on the Panama canal payment will
be in the neighborhood of 3iC00.O00. The larg-
est amount Will. of course, be withdrawn from
the New York banks 1t Is not likely that these
operations will cause much advance in money
rates in New York. the deposits of those
banks have been increasing enormously lately.
SECRETARY SHAW'S STATEMENT.
Following is the official notice the secretary of
the treasury has sent TO national banks:
1T probable that the government will
be called upon the future to pay $50 900
preliminary to the construction of inter-
oceanic canal. In addition TO this there out
standing approximately 5000, 0O0 of the United
States bonds, which by their terms mature on
Feb l. 1901 and Congress is considering prop
osition loan between 81, 100000 and 50, 600
to the Louisiana Purchase Exposition. To meet
these probable demands IL will be necessary to
withdraw at least $50, 100000 from depository
banks
You therefore requested make imme-
date preparations for the payment of 20 per
cent. at New York. In the near future, posi-
bly, within ten days. you will be asked 20 trans
fer this amount TO some one of the New York
depository banks. to be used in settlement for
the canal right Of way.
If you desire to sell at once a portion of the
securities held by the government against
arrangements will be made for the immediate
transfer so to avoid actual Withdrawals from
channels of TRACE.
The department will surrender no United
States bonds held security for deposits at
any bank until such bank has withdrawn all
state and municipal bonds held such
security, but securities of the District of Co
lumba, Philippine islands and Hawaii will be
retained if desired"