The Washington times., 1906-03-08
GOTHAM BANKS GET
GOVERNMENT FUNDS
BEFORE RIVALS Do
Competitors Are Curl
Gus to Know How
and Why.
BANKERS FROWN HARD
Allegation of Special Privi-
legeS at Washington
Are Denied.

NEW YORK, March S-The Natohal
City Bank and the Hanover NatlohaA
Bank. it is learned today, were the ohlS
two banks in this city who had recelV-
ed their allotment of the special de-
posit Of $4,000, coo of Government FUNDS
which Secretary Shaw last week an
nounced his intention to make.
This fact was the cause of consider
able comment in banking circles, par
tioularly among the banks which had
deposited their bonds with tie sub
treasury, as soon as they had received
notice from washington Of their allot-
ment of these special deposits, but
which were still waiting for their money
yesterday. In the case Of one pr"ml-
nent national bank a preliminar. ar
rangement which had been made TO
advance certain moneys to customers
Of the bank in the expectation Of re-
ceiving this special Government deposit,
could not be completed
Covert Insinuations.
Reference was made by some of these
banks to similar occurrences in which
the National City Bank had seemingly
profted by some special opportunity
ernment in advance Of other national
banks. While the banks concerned
avoided any direct suggestion that the
National City Bank was being especially
favored, It is plain from the comment
heard in banking circles that the pres
ent incident Is regarded as merely an
other Illustration of the possession OF
special advantages by the National City
Bank, which has enabled it on more
than one occasion TO score a point over
other national banks.
The incident Of which other banks
are complaining was freely explained
at the National City Bank 4 repre-
sentative Of the bank said that IL had
deposited its bonds with the subtreas-
ury on Monday. The allotments Of the
$1O,0O0,000 among the banks OF the
country were made on that day by Sec
retary Shaw. and the National City
Bank was enabled to act as promptly
as it did owing to the fact that IL had
a special representative in Washington
who informed the National City Bank
officials here by lOng-distance telephone
the moment the allotynents became
known in Washington.
Each Got 100000.
The Hanover National Bank appears
TO have prohted by similar facilities.
The other national banks did not re-
ceive the telegram from Washington
notifying them OF their allotments un-
til Tuesday morning. In this way the
National City Bank and the Hanover
National Bank obtained these special
Government deposits on Tuesday, while
the other national banks will get theirs
today. OF the sS.00O,000 or there
a ~
banks out of the total special deposits
of $4,000. 900. the National City Bank
and the Hanover National Bank receiv-
ed about sS00.OO0 which. it is under
stood, was evenly divided between the
two banks.
The subtreasury officials, when the
criticism current in banking circles
was brought to their attention, said
that il was the first they had heard
of any dissatisfaction on this point,
No complaint had been lodged by any
bank in regard TO the failure to get
their special deposits at the same time
as the City Bank and the Hanover
National got theirs.
The subtreasury officials admitted
that the National city Bank and one
other bank (the Hanover NationaD de-
posted their bonds twenty-four hours
ahead OF any other bank. II was ex-
planned, however. that the notification OF
allotments was not handled by the New
York subtreasury officials at all The de-
cision as to the apportionment of the
funds and the approval of the bonds Of
fered s security rested solely, they said,
with the Secretary of the Treasury
himself
Business Foresight, Says Bank.
The statement was made positively by
a representative of the National City
Bank that no special effort had been
made by the bank to get ahead of the
other institutions which We're to re-
ceive a part of the special deposit of
80 OO0, coo. All that had been done. it
was said. had been done in the ordinary
course of business.
Notwithstanding the statements which
have been made by the National City
Bank in explanation of the incidents
which have occurred from time to time
and which have been regarded by other
banks as proof Of special facilities en-
Joyed by the National City Bank in
dealing with the Government. other
bankers find il difficult on any other
supposition satisfactorily to explain
things that have happened
Friends of the National City Bank
however, maintain positively that the
criticism which has been caused from
time TO time by the relations of the
National City Bank with the Federal
Government have resulted in special
care on the part of the Treasury Off
Gals TO avoid giving the National City