New-York tribune., 1909-02-02
GOVERNMENTS DEFICIT
PLACED 1T S1S5, 100000.
National City Banks Estimate
Higher than Mr. Cortelyou,s.

The National City Bank in its February cir
cular, issued yesterday, places the prooaoIe gov
ernnent deficit for the fiscal year ended on June -
hext at :1s5OO00oo against the $1l40o0Ooo estimate
made by the Secretary Of the Treasury in MS an
uual report in December and predicts that TO re-
plenish the Treasury's constantly diminishing
working balance it will be found necessary Within
the next few weeks TO withdraw practicaiy the
entire amount of the government deposits III the
national banks throughout the country which are
now designated as special depositares OF Treasury
funds.
Considerable space is also devoted in the circular
to the reform Instituted by the present Controller
Of the Currency IN scrutinizing more closely than
has heretofore been the practice the applications
for charters for new national banks. The circular
says:
The Secretary of the Treasury in his his last @ report
1909, which will end June go next OF $l14.0OO,0OO;
AT the present rate OF outgo tT must De a Pes9ed se
with deficiency OF S15,54$.G0Q for the month and
showed an Of expenditures over receipts Of
At the same monthly TsS az od tne neo d'4S @
It is generally safe to accept Treasury estimate
6Pog e an Exception TheTefore it is thought
best to regard the officially estimated deficiency OF
the next five months should show deficit OF SS4J-
izsd in the expenditures from day 10 day it WIN
be reflected in constantly decreasing working bal
TO repienish this. therefore, the depositary banks
prior prior: 10 the spanish war the government normally
bankE abd6t i6 IFS bt the Great increase IN
receipts and expenditures since then has led to
TO maintain much as S5o,0O0;0o0 in the regular
depositarles st al tunes; As aePosialJy AccoT b
banks onIy about sal 100000 which It would be pos
sble to call BY the end OF February or the middle
OF March the working balance will probably be SO
low that II viii have TO be rePenisnea aain Ranas ra
CURED by Treasury opeTations may therefore ex-
fG@ G@ Haann %eHs al Of esigPaons that the depart
mon will reduce accounts
it has not yet been decided whether 20 pursue this
course or or to I'd drop the special deposary banks en-
With 5000 600 cash on hand now va and hS 81 600 to-. go
Treasury really has s3,0O000o cash from which to
a5e The eIpecsd s de9f of from now @ on un
June 80 next would reduce m M cash 5 s6tTy % m
comfortable working balance and entirely satisfac-
were at ali certain that such new year would bring
Pso P 5 if5 fqa ht T. the TaSy m has saat M
h0ry to E. sell III % 5Snd @ m csc OF n 69s @ S
leaving S45 596S,o20 yet TO be issued; Always to be
en is the as 8oer Whic5 he secreTy Sas to- sell
per cent certificates OF Indebtedness not exceed
n3ent It Is necessary % meet public expendltpres;
Should Congress therefore fail to provide additionsl
necessary funds the Treasury would be in position
next July
Discussing the Controiier's policy in reference to
the authorization of national banks the circular
says:
Although the blank application in re-
quires, in addition to the signatures OF five appl
eants. that their standing and the necessity for
bank be certified to by three prominent persons.
the Controller has investigation made 81 nearly
every case for the purpose Of ascertaning whether
the facts q reported, he being Of the opinion
that bank, in order TO meet with succSsa should
be Incorporated and managed by men OF high
standing, who have the confidence Of the public
thus insuring q liberal patronage from the begin
ming. In January the Controller. after careful In
twenty-eight. Three Of these were denied Because
It believed that the communities could not
properly support q bank From one locality cana
two applications. The substantial was ap-
proved and the other rejected the ground that
the community could not support two banks. In
another the standing of the applicants was
not satisfactory, and still another reject
ed because the demand for the bank did not a-ise
with the applicants but created by outside
parties with other object in view but TO get a
commission for placing the stock.