New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-02
BANKING REFORM.
Deposit of Customs Receipts in
Banks Treasury Checks.
To The Editor OF The Tribune.

To the Editor OF The Tribune
SIR: The Republican party is notably a party OF
achievement. But Republicans must admit that
apparently little banking reform Will be accom-
plished In the remaining four weeks OF this Con
Gress. unless a new programme is adopted.
Secretary Shaw at the Missouri dinner last night
after declaring the inadequacy o: pending financial
legislation said. We are confronted several times
a year with conditions admittedly dangerous. Let
a plan he devised which viii efectually protect
against this danger and all Will he Well"
In his annual message. where this danger
discussed. President Roosevelt did uor press any
especial plan" However, he recommended that
the law should be amended 5 specifically 70
provide that the funds derived from customs gu
ties may be treated by the Secretary OF the Treas
Ury he treats funds obtained under the Internal
revenue laws"
AT present receipts from customs cannot be de-
posted in banks. For years Secretary after Sec
rotary has recommended the repeal OF this p-o-
hibition Practically every member OF Congress.
In both houses. would approve OF its repeal II the
matter came up by itself
Generally. the measure is urged upon Congress
IN company with another proposition OF a very
different nature, namely. the requirement Of IN
terest public deposits in banks II a Congress
man IS the president principal director OF
national bank holding $4,000 OF government funds.
should he be expected 10 vote for exacting Per
cent interest on the deposit. and thus taxing tie
bank S,00o annually. unless public considerations
imperatively demanded the sacridce2 The Gues-
There time FOR debate this session Be
sides. the question really has nothing 70 do Wlla
authorizing the deposit Of customs receipts n
banks
The rest of the banking reform possible this win
ter can be carried out by the Secretary himself,
At present the Treasury draws checks on bank
deposits II has Sl6l00000O in banks but before any
public money once deposited is used b. the govern
ment II has to be transferred in coin or currency ~
the bank 10 the Treasury, and then the Treasurer
draws checks or warrants against II IN payment Or
current expenses. etc He draws checks the
Treasury, never on banks Now. the Treasury has
such large bank deposits and Withdrawals at times
so many millions, that IL makes a great deal o.
difference whether the money IS checked against
in the bank after a transfer OF the actual coin
currency to the Treasury. How much OF the
dangerous conditions referred to by the Secretary
has been due 70 this evil practice cannot DO known
until the Treasury relieves the situation BY draw
Ing checks on government funds in banks The
Secretary Is fully empowered by law require the
use OF bank checks in payment OF current expenses
and Tor other purposes
In short. the whole legislative programme FOR the
remainder or this session should be: Let Congress
simply authorize the deposit OF customs receipts
IN banks
Meanwhile, let Mr.. Shaw distinguish himself BY
being the first Secretary OF the Treasury IN over
NIFTY years to introduce checks drawn the Treas
ury on public deposits IN banks.
No. "a Seventh avenue Brooklyn FEB = IsJ>