Evening journal., 1913-06-02
BANKS WILLING
TO PAY u. 5.
INTEREST

WASHINGTON, June 2.-secretary
McAdoo has announced the distribu-
ton by States Of the additional s10.-
100000 OF Federal funds which the
Treasury Department will deposit in
national banks. His statement also
discussed the manner IN which the
banks had received the recent order
that two per cent. interest yearly be
charged on all Government deposits.
OF the 500 active depositary banks
on May when the secretary issued
his interest order, Mr. McAdoo said
only seven have declined 10 pay the
interest charge and ceased to be
government depositaries. surrendering
their Federal funds TO the treasury.
The S10,000,000 and this surrendered
amount, aggregating S11.5S1 800, has
been apportioned In various amounts
among COZ national banks in 475 cities
ana towns in the forty-eight states
and the District of Columbia
New York Banks Refuse.
The seven banks unwilling to pay
interest, the secretary said were the
National City Bank, the National Bank
Of Commerce and the Chemical Ma
tional Bank, of New York City; the
National Bank Of Commerce, OF New
London. Conn. the Merchants Ma
tional Bank Of Savannah, Ga; the
First National Bank of Buffalo, Wyom-
ing, and the Seaboard National Bank
of San Francisco
Various banks in deterrent sections
OF the country In expressing their will
| ingness 10 pay the interest charge" Z"
said Mr.. McAdoo. strongly commend
ed the wisdom and fairness of the ad-
ministratlon's new policy In imposing
the charge, although II necessarily re-
duced their profit. In some applica-
tions for a share of the additianol
S10,000000 banks, and especially the
largest ones in Boston and Chicago,
requested million dollars of
deposits"
Twenty national bank depositaries
In New York city have notified the
Treasury Department that they de-
sire to retain the deposits and that
they will pay the two per cent. in
terest.
The Secretary announced he had
reduced the Government deposits in
a number of banks which. he said.
"at the close Of the last administra-
tion held amounts which seemed to
be excessive or unjustifed the re-
ductions in most cases being made
against the protests Of the bank who
desired TO retain the funds notwith-
standing the interest charge"
Funds Divided By States.
Under the distribution OF the new
deposits, the six New England States
will receive S945,O00 placed In fifty
three banks in forty-two cities; the
five Eastern States s2,79S.000 in III
banks In eighty-three cities: the thir-
teen Southern States S2.902 900 In
159 banks in 127 cities; the eight
Middle States S2932,O0 in 164 banks
in 1873 cities; the nine Western States
s950.000 in seventy-two banks in
sixty cities; and the seven Pacific
States S1,054,5OO in forty-two banks
in thirty cities.
Appointments were made on thu
basis Of population. capital and sur
, plus, needs Of the respective sectionI
! of the country and the circulation
status Of the banks, preference be-
ing given TO those Institutes whose
present circulation amounts 10 not
less than forty per cent. of their out
standing capital. OF the 607 banks
receiving the deposits. ia already
were Government depositaries and
some Of the remaining 433 banks had
been previously known as inactive de-
positaries, holding only nominal bal
ances.
The apportionment to several Of the
States was as follows