The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-07-01
SHAW TURNS DOWN CIYYBANK2.
STREET HEARS BE ISN'T M
0LINED no AID GOLD IMPORTS

ny Depesiting Government Funds Unui
the Gold Gets Hcse-nfe eecretary
SAID to Have Realized That He hao
Been Imposed Upon I'm Past FaSors'
The wires were hot between The National
CITY Bank and the headquarters OF the
Secretary Of tho Treasury at Warrington
Yesterday. The bank wanted to. bring
over gold from abroad and wanted the
Government TO pay the expenses OF tne
Transaction by reviving the gold import
order under which banks got United States
deposits on expressing an, ~intention TO
import aold, and were permitted TO Keep
than until the arrival Of the gold from
abroad.
Jobn T.. Gardin, manager Of the foreign
exchange department Of the City Bank
cent repeated requests 10 Secretary shss'
basins his requests, 1t 10 undeIstooa, OF
the large amounts needed TO meet aiVaoeno
payments tomorrow INT the hign f@"0
prevailing for time loans. -
: The argument was made mat 5npoiIs
without Treasury assistance would anoio
no relief to the money market until en'
arrival Of the gold at least ten days hence
whereas a temporary deposit by tne GOV
ernmeut to the amount Of the gold 70 DE-
Imported would be available at once TO re-
lieye whatever stress the immediate future
may have In store for the money market.
Mr.. 0ardin found the Secretary more
disso,lt TO convince than on previous ooca-
sions. but was said to have been oonfdens
of s,,ccess, because OF prior successes.
II Was he who devised the gold import
nlan and persuaded the Secretary to pro-
muleate Il, who procured $40, 900 900 for his
institution before other banks were In
formed OF the policy and who procurea
Al. Zoo 600 after the Secretary had revoked
his order and had actually refused $1,000, ooO
to the Chase National Bank.
That tho Secretary was obdurate yester-
day was said In Government circles 70 De
due to a tardy realization OF the tact that
the City Bank imposed on the government ID
the gold import business. While the seore-
tarv. Il was said, was undoubtedly con-
yincsd at the beginning that the policy
would be generally beneficial, he did not
expect that the City Bank would oonstrue
Il IA so particularly beneficial to itself, and
eventually took offence at the extraordi-
nary length OF time which the City Banh
tooi in paving back the Government de-
nosats. Other institutions returned the
0oyernment deposits in from eight to hfteen
days, while the City Bank kept them IN many
instances much more than a month"; lne
Secretary, it was added. was not greatly
impressed by Mr.. Gardin's explanation Una
1t was q great thing for the Government 70
zive Government money to banks to bring
gold from Australia.
That the City Bank still has $l,Soo,0Oo OF
the none the Government deposited WIFE
Il weeks ago to further a gold importation
was also given as a reason why the score
tary for the first time was turning q deaf eal
to Mr.. Gardin'e pleading.
Finally It was pointed out that the Han
over National Bank on Friday undertook
an engagement Of English gold without ask
;nr for Government help. Certainly, II
WAS said. il the Hanover can bring over
gold ON it's own resources, b City BANK
which has had repeated valuable fayors IL
spedal deposits on account OF goia iW'
ports. ought to be able to do kewiee
Mr.. Gardin refused to discuss the pqsltior
taken by the Secretary. but It was gsneratl,
believed In the Street, the belief being oasee
on the comment in Government circles, tha'
the Secretary had refused. Nc
ment of a gold engagement by the City SAM
was made, though it was reported on mos
reliable authority that 1t bad secured ~
10000 gold in Europe and wa ~postponinf
an announcement Of it until the conclusion
Of the negotiations with the Secretary
since the announcement was not made, y
was presumed in some circles that the SEQ
retary had not refused point blank, but hae
taken the matter under advisement ant
would announce a decision on Monday.