Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-27

empowers the Secretary of the Treasury
to deposit all government revenues directly
in the depository banks. This course. if
followed by the head of the Treasury De-
partment, would result practically in the
abolition of the independent treasury, ex
cept as a medium of certain disburse-
ment, which by law required to be
made through Treasury Offices"
Mr.. Allies pointed out the singular fact
that while America was quick to adopt
modern methods in almost every field of
out a financial system that would keep
pace with the extraordinary developments
of the country; that while we had taught
the old countries new methods in arts and
industries our currency and banking laws
had remained crude. They do not be-
long to this of modern equipment;
they belong to the days of the OK cart and
the sail ship, and have no place in an age
of electricity and steam. Until the end of
the bitter war waged against the old bank
of the United States by Andrew Jackson
public funds were deposited In bank and
disbursements were made from that In
stitution or its branches, with the result
that surplus revenues when collected still
remained available for business use. In
most respects this plan was satisfactory,
and no complaints were heard in those
were needed in carrying on the varied en-
terprises that go to make up the trade
and commerce of a country.
when the national bank act was passed
the Secretary of the Treasury to designate
national banking associations as deposi-
tories of public moneys, axcept receipts
from customs, and now, after lapse OF
forty-two years, this latter inhibition has
been removed by the Aldrich act
Aid to Wall Street.
Mr.. Allies demonstrated how necessary it
is under our present system for the Secre-
tary of the Treasury to give occasional
assistance to the money market in order to
avert financial disaster. Every Secretary
of the Treasury in the past thirty or
forty years has been obliged to render
such assistance. 1t was made necessary
by reason of the accumulation Of revenues
in the vaults of the government and the
taking out of circulation just so much
money as was received by the government.
Every reason why such relief should be
extended existed, yet every Secretary of
the Treasury by giving the assistance had
subjected himself to political criticisms
from his opponents and so long as we
which is poured our surplus revenues, ne
cessitating subsequent distributions among
banks. so long will political opponents con-
tinue to inflame the public mind"
Mr. Allies said that the government sur
plus for the current year would amount
to between ss5,OOO.OOO and s9O,0OOOO0, and
that the locking up of SO vast sum
could not be tolerated as it would be
followed surely by financial disaster. He
suggested that the policy be reversed and
that the collections be made through the
banks, withdrawing such amounts from the
banks are needed to meet expenditures.
He quoted Frank A. Vanderip, vice presi-
dent of the City National Bank of New
York, as to how such a change properly
might be brought about and he also quoted
Mr.. Rdgely, controller of the currency. as
favoring the plan of collecting government
revenues mainly in bank credits. He
thought this plan nearly an ideal one under
existing laws. BY it the Secretary of the
Treasury would escape the unreasonable
criticism leveled at him by political OPP
ponents. For any trouble that might arise
affecting financial commercial life
the public and the banks, and not the
Treasury, then would be responsible.
THE Group System for the Ohio Bankers
Association was topic for general dis
cussion. which was led by F. E. Shafmas-
ter of Waterville Ohio.