The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-06-02
Uncle Sam to Get 2 Per Cent
on Bank Deposits.
Only Seven Banks Declined
New Arrangement.
$50 DEPOSITARIES may |
Thirteen Kansas Banks Get
$4,000 of National Funds.
Appointments Made on Basis
of Population.

Washington, June 2.-Secretary Nc
Addoo has announced the distribution by
states of additional $10000,0o0 of federal
funds which the treasury department
will deposit in the national banks. His
statement also discussed the manner in
which the banks had received the recent
order that per cent interest yearly
be charged on all government deposits.
OF the $50 active depositary banks
on May 1 when the secretary issued his
interest order, Mr. McAdoo said only
seven have declined to pay the interest
charge and cease to be government de-
positaries, surrendering their federal
1unds to the treasury. The 0000, 900
and this surrender amount, aggregating
81, 5S1 500, probable apportioned in vari-
Gus amounts among 607 national banks
in AIS cities and towns in the 4S states
and the District of Columbia
The seven banks unwilling too nav
interest, the secretary said, were:
The National City bank. the National
Bank of Commerce and the Chemical
National bank of New York city; the
National Bank of Commerce. of New
London, Conn.,; the Merchants National
or savannah, Ga; the First National
bank of Buffalo, Wy. and the Seaboard
National bank of San Francisco.
Various banks in different sections
of the country in expressing their will
ingness to pay the interest charge"
said Mr.. McAdoo, strongly commended
the wisdom and fairness of the admin
istration policy in imposing the charge,
although it necessarily reduced their
profit. In some applications for share
of the additional $10,0OO, 000 banks and
especially the largest ones in Boston
and Chicago, requested a million dollars
or more of the deposits
The secretary announced he had re-
duced the government deposits in a
number of banks, which, he said, lat
the close of the last administration
held amounts which seemed to be ex-
cessive or unjustified, the reductions in
many cases being made against the
protest of the bank who desired to re-
tain the funds, notwithstanding the in
terest charge
Under the distribution of the new de-
posits, the six New England states will
receive $945,OOO placed in So banks in
AZ cities; the five eastern states 81, 1885,
900 in III banks in SO cities; the ID
southern states s., 1902, 900 in 159 banks in
127 cities; the eight middle states 81
932, 900 in 143 banks in 1873 cities; the
nine western states $950,000 in ~ banks
in 60 cities; and the seven Pacific states
81, 054, 500 in AZ banks in 80 cities
appointments were made on the
basis of population, capital and sur
plus, needs of the respective sections
OIL the country ana the c1rculatlOn
statutes of the bank, preference being
given to those institutions whose pres
ent circulation amounts to not less than
20 per cent of their outstanding capital.
OF the COZ banks receiving the deposits
TIA already were government deposi-
tories and some of the remaining 633
banks had been previously known as
inactive depositaries, holding only NOM
inal balances.
The apportionment by states in