The Washington times., 1911-09-24

II seems as IL II was up to the Dis
trict Bankers Association to take steps
to secure more liberal treatment OF
banks In the matter of depositing tax
money with them, so as to avoid any
stress or stringency In the money
market.
As 1t is now the peoples share Of
the tax money Is deposited with the
banks one month, then after thirty
days interval, rs per cent is withdrawn,
the next month another 25 per cent draft
Is made and thereafter 10 per cent a
month.
Moreover, the Governments share Of
the dollar for dollar that it Is expected
to pay on District expenses remains
locked away in the big vaults, practi-
cally idle. the while the banks are
called on to repay to the Government
funds that probably may not be used
for months after they have been re-
called.
The millions of the Government ap-
propriated by Congress should find their
way quickly into the banks with the
rest Of the tax money.
The Government is losing per cent
interest on this cash when II is i6le I'm
the strong boxes.
Appropriations are made for projects
that may not be completed within the
fiscal year: for Improvements that are
only partially paid for from month to
month. Contracts involving work and
expenditures throughout the twelve
months are numerous, some of the
school buildings planned are not COM
nieted during the year and yet the
Government must have the cash
whether II needs Il or not.
In the interest OF business and in the
interest OF the Government as well
there should be no 25 per cent or othe:
stated drafts on tax money. Ten per
cent month would return to the
Treasury all the tax money two months
before the reQuiren0 ents OF the closing
OF the fiscal year. There Is no good
reason why The Government should not
follow the lines that they dictate with
the tax money Of the residents of the
1t is probable that If this matter il
taken up with the Secretary Of the
Treasury this view may be impressed
upon him. II is worth trying for.
When the District Bankers Association
takes II up II Is not unreasonable to
look for favorable action.
Two per cent counts in the long run.
The National Savings and Trust Com
est to its dcpositors. At the same time
the stockholders have not been ne
elected.
Tomorrow evening the District Bank
ers Association will take up the mat
ter OF employing a special bank exam
lner for the city OF Washington. 1t Is
possible that an agreement may be
ma de whereby Baltimore will Join in
Of an expert. Credit conditions are such
that the two cities could be covered by
one examiner. Indeed, they are now
coupled and covered by Examiner Hanr,
Of the Comptroller's office.
Since the last meeting of the Bankers
Association, the Clearing House Asso-
citation has refused to back up the Dis
trict body to the extent of amending Its
bylaws SO as TO provide for the expul- |
sion from the organization or refusal to |
Inder the ban Of the Bankers Associa- |
ion through a result Of its examiners |
reports. |
There are eleven members in the |
Washington Clearing House. all ma
tional banks. They are compelled to |
carry Is per cent reserves. There are |
Ihirty-one banks in the District, prac- |
ically all members of the Bankers As !
sociation. National banks carry re- |
serves for the trust companies and saw
ngs banks, as a rule.
At two recent meetings the majority |
Of the Clearing House membership |
voted against amending bylaws to per-
nit OF enforcing DEGREES OF the Bankers |
that may emanate from the |
alters bank examiners delving into the |
conditions of banks. The proposed |
amendment would have prevented any
member Of the clearing house clearing |
Ter q nonmember hank. and would have
resulted in She expulsion Of any member |
bank against which the Bankers Asso- |
ciation might issue an edict resulting |
from conditions disclosed by it's bank |
The opponents Of the amendment did |
not vote against the examiner PROPOSE |
ion, but held that the examiner ought |
10 be appointed by the clearing house |
md operate under its direction. Through |
he clearing house positive action alone |
,an be taken against negligent.
Other members OF the District Bank /
srs' Association. which evolved the !