The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-03-27
DISTRICT FUNDS
NOT FOR BANKS
Commissioners Explain Re-
fusal to Deposit.
SAVES MUCH INTEREST
BY Sending Cash Direct to the Treas
uIy Two Per Cent Does Not Have
to Be Paid Out.

The District Commissioners and other
Of the local Government officers think
that E s Parker. president Of the Ma
tional Metropolitan Bank, was unjust
IN his criticisms Of them Friday night
at the District Bankers Association
banquet. when he said they refused 70
deposit the District revenues in the ma
tiOnal banks of the District merely in
order to save labor in keeping their &C
counts straight.
They claim that Mr.. Parker missed
tho point Of the whole matter. II IS
a question, not of bookkeeping, they
say. but OF paying to the United States
Government what is due it.
District Debts.
Commissioner Macfarland, in answer
ing Mr. Parker's speech Friday night
pointed out that there is never a time
when the District - free from debt
because it always .aVes the United
States for the loans made by that Gov
eminent TO enable the District TO meet
the expenses Of the reeny extraordinary
improvements that are being carried on
in the city and county.
On these loans the District has to
pay interest at the rate Of . per cent.
and it IS claimed that it would be utter
folly for the District to place its money
in the national banks and refuse to
turn 1t over Immediately to the United
States when such action would result
only in piling up the amount Of inter
est without reducing the debt.
Commissioners Upheld.
When the Commissioners reported IN
favorably to Congress ten days ago on
the bill providing that the District
CHI. L l.. Il.
national banks, they explained that they
were sorry that the step could not be
taken. but under the present arrange
ment OF the finances. it would be i'm
possible.
They were upheld by the reports of
the Collector Of Taxes and the District
Auditor who emphasized the fact that
the District was IN debt TO the United
States and should utilize all its money
TO defray the indebtedness as soon as
possible.
1t is claimed that a ~earrangement OF
the Districts finances IS the only thing
that could result In a change in the pres
ent mode of procedure IN regard TO de-
posting the funds. Until the apprOpria-
tons for extraordinary Improvements
are segregated from those for the cur
rent expenses Of the local government
the taxes collected IN the District Will
have TO go Immediately to the United
States Treasury.
The enormous drain on the local
finances as a result Of having TO meet
these unusual expenses at once keeps
the District in debt all the time. and II
has no opportunity TO delay its payments
by leaving the money IN the local banks
Without Interest.
In speaking Of the matter yesterday
Commissioner West said:
THE District has depOsited in the
Treasury since the first day OF last
July on account Of taxes, licenses, and
other general revenues, up TO and in
Guiding today. the sum Of 81 .G5S. eco while
Il has drawn from the Treasury dur
ing the same period the sum OF 81 ,2J9, 90.
in round figures.
-Dcducting One-half of the latter
amount as being the share of the United
States, we have $3,60O,000 as the amount
which the District should have deposit
cd The amount actually deposited. how
ever. is only 81, 100000. so that the Dis
trict has secured and enjoyed the use
OF g 600 900 for current expenses with
out the payment Of one cent for interest.
Before the payments Of taxes in May
are placed in the Treasury, this discreP-
ancy will be even greater.
1t may be that the local banks VIII
advance two millions or more 20 the
District during the first ten months Of
each fiscal year without interest, but II
is difficult 70 see where they would
profit by the transaction