The Washington times., 1913-02-08
THREE INQUIRIES
INTO TREASURY'S
ORDERP PROPOSED
Seek to Reach Bottom of Charge
Ruling Gives Banks Great
Financial Power.
Continued from First Page)

CONTINUED from First Page)
without requiring the banks designated
as repositories TO give bonds as secur-
ity or to pay interest TO the Govern
ment on the deposits. Under the ma
tional banking laws and the act OF
March T. 1907 Il is provided that the
repositories designated shall give suf-
icient security by the deposit OF United
States bonds and otherwise for the safe
keeping and prompt payment OF the
public money deposited with them and
for faithful performance of their dI-
ties as financial agents OF the Gov
ernment."
Section Is of the act of MAY 30, 1905,
provides that interest shall be paid on
all public money deposited with ma
tioEal banks at such a rate as the Sec
retary of the Treasury shall prescribe,
not less, however, than per cent per
annum.'
Spreckels charged Secretary Mac
Veagh with ito say the least bad
taste" in issuing such an order toward
the close of his administration.
III there is any law he said, under
which the United States Treasurer may
deposit funds in national banks without
requiring them to give security or pay
interest upon said deposits. the Secre-
tary can easily stop criticism Of that
feature of the order by citing his legal
authority.
'As for the claim made by the Sec
retary and his assistants that there
viii be no Increase of Government de-
posts with the national banks If this
order of January 3 be kept in force,
this is as ridiculous as an argument
that that which is, does not exist.
Amcng other things the order in ques-
ton says: 1t has been determined that
the daily receipts of the Government
hn ,.1o xuiela lo,, Il
repositories to the credit of the Treas
urer of the United states
1T will not be denied that the daily
receipts of the Government run into
those millions be deposited with the
national hanks a tremendous increase
in desposits with such banks will re-
suit.
1T is clear that the Secretary of the
Treasury in issuing so radical an order
concerning the business of his depart
ment during his last few weeks in that
office must be considered guilty of bad
taste, ana, / fear, bad faith. 1t is just
such happenings as these that prove the
an interval to elapse between the time
OF election and the actual taking over of
the control of our Government by the
newly elected officials.
Officials Repudiated.
When national administration has
been repudiated by the votes Of the peo-
pie it is fair 10 those in whom the peo-
pie have expressed confidence by elect
ing them to succeed TO the control Of the
government, that they be not handi-
capped by giving the old administration
SO much time In which to plot TO make
more difficult the task of those that are
to succeed them"
Mr.. Spreckels said that he would go to
Washington Mopdayt orTuesday and
take up an Investigation of the Treas
ury order in official channels.
Despite protestauons by Treasury off,
to pile up gold balances in the deposi-
tories, Cong1 essn,an Glass announced
that he was conducting a thorough
probe of the charges by Mr.. Spreckels
and had called upon number OF bank
ing authorities for their. views. .
Mr.. Glass said he believed that IL the
Treasury Department continued the
order in force under plans announced,
there might be no danger OF forcing
panis. as charged by Spreckels What
he does object to, however is the fact
that In the order itself there is no ltmi-
tation on the extension OF the plan, and
ia none. OF the orders to repositories
and subtreasurers are there any detail
ed instructions as to the amount of the
daily Government deposits" which are
tc be retained to meet current expenses
paid through the repositories, or the
amount to be forwarded on TO Wash
ington-
WHY the decision OF this point should
be left to the discretion" of subtreas-
ury officials, Glass is anxious TO ascer-
tain.
That partial legal authority for the
change contemplated in Order No. ). is
given in a "joker" which slipped
through Congress six years ago through
the efforts of Senator Aldrlch, author
of the central national bank plan, was
developed by Glass today.
"AIdrich amended harmless little
bill calling for change in currency
denomination" he said. The measure
provided, in one section: All Govern
uent moneys except custmos receipts
are TO be deposited in national de-
repositories
.'Aldrich struck out the words 'ex-
cent customs receipts Glass con-
tinued He endeayored TO pass II
quietly through Congress, but certain
members charged him with attempting
20 swing custom deposits from the
Treasury into national banks. and he
finally admitted that such was his pur-
pose. Nevertheless the amended bill
passed.
Change Defective.
However, il was realized that the
change was defective. 1t only inferen-
tally repealed a law which requires
depositing of customs receipts in SUBJ
..It seems strange to me that the
Treasury. Department should base such
a revolutionary change as proposed in
order No. 3 on such defective law"
Intimation that the order might have
been made to force adoption of a central
banking currency plan was also made
by Glass.
''Tf these banks are made depositor-
les" he said, land Congress adopts any
sort of a regional or central bank plan.
Government funds will be needed for
the reserves In the regional banks. II
an attempt is made to remove funds
placed in repositories under Order No.
s, what will happen? There will be
financial embarrassment and a great
howl from the banks affected II ap-
pears possible to me that these banks
would go on being repositories under
the new banking system"
PRINCETON, y. J.. Feb. S.-Presi-
dent-eIect Woodrow wilson today learn
ed directly for the first time the details
OF Rudolph Spreckels' statement con-
corning Treasury Circular, No. g."
which authorized the deposit OF customs
receipts in national banks and which
Spreckels charges may cause financial
disturbance. On the train returning to
Princeton from New York, Governor
fVfi1op read SUrecEels' Sfafemap. cave