Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-29
DEPOSITING THE TAXES
PLAN ADOPTED BY THE SECRE-
TARY OF THE TREASURY.

The following official statement was made
at the treasury today as to the deposit of
District taxes in District banks:
Taxes collected in the District of Co
lumbia are deposited in the United States
Treasury, s4,665, eco being deposited in the
treasury last year. OF this amount $1,000
Geo was deposited during the month of
May, 1904
Effect of Withdrawing Money.
The withdrawal of so large a sum of
money from business and commercial chan
nels in this city in a single month, locking
it up in the treasury until released by the
slow process of disbursement for municipal
purposes has worked serious hardship TO
business. Moreover, this hardship is not
experienced by any other community Of
the size and Importance of Washington.
In all the other large cities of the country
the tax collections are deposited by the
municipal officers in banking institutions.
while in Washington, during the month of
May, mere than 100000 of currency is
taken from banks and locked up in the
treasury vaults.
Doubtless the best remedy for the mat
ter would be to have the tax collections of
the District deposited with the banks. re-
quiring the banks holding them to diSburse
them upon order of the proper authorities.
For technical and legal reasons this is i'm
practicable. Some other method, there
FORE had to be found if the matter was to
be dealt with at all.
Secretary Shaw's Plan.
Secretary Shaw has decided upon the
following plan:
THE treasury will deposit in the four de-
positary banks in the District of Columbia,
on and after May /, the sum of 81, 600 600,
this being about the amount of money with
drawn from the banks during that month
for taxes The banks will be required to
return this deposit to the treasury IN ten
equal installments of 10 per cent each, be-
ginning July l and continuing monthly
thereafter. The treasury is to be at liberty
to demand a quicker return of the money
if for any reason it sees fit to do SO.
Security will be given by the banks by
placing with the treasurer of the United
States bonds such savings banks are
permitted to hold as investments under
the laws of the states having the most
approved regulations relating thereto.
These bonds will be taken at 10 pei cent
of their market value, and may pS with
urawn proportional tely the deposits are
reduced by the monthly payments after
July 1. AS the banks are supposed TO lose
funds to the treasury, in connection with
the tax payments, in proportion 20 the
amount of their individual deposits. the
5000 600 to be deposited will pc placed
with the four depOsitary banks in Cropor-
ton to their individual deposits, as shown
by the last statement of the contr) )llar of
the currency. The $1,000, 900 to be depos-
tied cover somewhat less than two-thirds
of the amount of taxes paid into the United
States treasury from the District of Co
lumbia. Experience in the past shows
however, that this deposit will cover the
amount which is suddenly witnd -awn from
the banks when the taxes bee )me first
payable. The remaining taxes arc collected
gradually through the year, and the banks
of the District will be obliged to take care
of such payments as heretofore