The Daytona daily news. [volume] (Daytona, Fla.) 1903-1926, 1913-01-21
new SYSTEM
INAUGURATFD
BY MACVFAGH
GOVERNMENT CHECKS MAY BE
CASHED BY NATIONAL BANKS
THIS PLAN WILL DISTRIBUTE
MORE OF GOVERNMENT MONEY
IN DIFFERENT PARTS OF THE
COUNTRY.

WASHINGTON, Jan. 21-Although
congress has been wrestling with the
question of money trust all winter
and Attorney General Wickersham
gave up the investigation because he
could not determine where to begin
or where to end, Secretary of the
Treasury MacVeagh has been able to
accomplish something in this line
that puts previous efforts in the shade.
He has found way, which, accord
ing to experts, will to some extent
prevent the concentration of money
in New York.
Incidentally it will save large sums
of money to nearly 30,000,000 people.
Wall Street, however, does not seem
to be very much exercised about the
matter, as brokers believe and know
that the balance of money will always
remain in the populous centers of
trade.
Orders have been issued by Mr..
MacVeagh providing for the pay
ment of government checks through
national banks instead of through sub
treasures as formerly. This an
nouncement has not caused stir,
but it viii mean that over billion
dollars annually will be drawn away
from New York City, which was form
erly concentrated there by exchange
through subtreasury checks.
This money will be diffused in ev-
cry section of the United States in
the shape of checks for the payment
of pensions, irrigation works and in
fact all government work of all de-
scription. 1t will mean that the gov
eminent deposits in the national
bank at Roosevelt, Arizona, will be
dollars in order that the paymaster
can pay off the laborers and other
employees on the irrigation project
there. At Pearl Harbor, Hawaii,
several million dollars will have to
be deposited in the national banks in
that vicinity to meet contract pay
ments for the Notifications being
erected there by the army.
At Bath, Me-, Philadelphia, Seattle,
San Francisco. New York, Boston,
Newport News, Virginia, and other
shipbuilding centers, over $50 900. 900
| during the next year will be sent to
the national banks in those cities.
The army will split its appropria-
ton of approximately $175, 900, 600
among various army posts through
out the country.
Formerly all government pay checks
were payable at the sub-treasury in
New York. Paymasters even in San
Francisco preferred the New York ex
change because, generally the indi
vidual to whom the checks were
drawn, could cash the check payable
on New York without discount. In
cidents occurred, however, where the
government vouchers were payable a
other subtreasuries and generally the
individual had to discount the check
1t has been estimated that at Ieas
/ So 100000 was earned by banks in
exchanging the checks.
| Whereas, formerly this money
found its way to New York and there
I held by what congress has unofficial.
termed a money trust, it viii now b
kept in the jurisdictions into which
it is first sent. National banks vii
be the medium Of exchange and it il
thought that it will not be neces
sary in the future for farmers am
ranch owners to pay excessive rate
of interest in the spring and fall c
the year when it becomes necessar
to move the crops.
In speaking of the matter, earn
Thompson, recently appointed treas
urer of the nited States, formerl
secretary to President Taft, sal
that it was one of the most business