The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-02-08
"Mac Teagb Has Nor
Expiatned' --Spreckles

NEW YORK, Feb. S.-Secretary
MacVeagh, OF the treasury depart
ment, cannot dismiss so important a
matter as is involved in his order OF
January 8. by referring TO my criti-
cism as 'moonshine, >" declared Ru-
dolph Spreckles, the California banker,
In reviewing today his attack on the
treasury order concerning the deposit
of government funds In the national
banks. Spreckels said:
The order referred TO directs that
government receipts OF moneys be de-
posted with national banks by the
customs officials without requiring the
banks designated as repositories to
give bonds as security or TO pay inter-
est to the government on the deposits.
Under the national banking law, the
act of March 4, 1907, IL is provided
that the repositories designated shall
give sufficient security by the deposit
OF United States bonds and otherwise
for the safekeeping and prompt pay
ment OF the public money deposited
with them and for faithful perform
ance of their duties as financial agents
of the government
Section 10, OF the act OF May 80,
paid on all public money deposited
with national banks at such a rate as
the secretary OF the treasury shall pre-
scribe, not less, however, than one pei
cent per annum."
Spreckles charged Secretary Mac.
Veagh with, ito say the least, bad
TASTE" in issuing such an ORDER to-
ward the close OF the administration.
IF there Is any law" he said
under which the United States treas
urer may deposit funds In national
banks without requiring them to give
security or pay interest upon said de-
posits, the secretary can easily stop
criticism OF that feature OF the order
by citing his legal authority.
"As for the claim made by the Sec
rotary and his assistants that there
will be no increase of government de-
posts with the national banks II this
order Of Jan. 9 be kept In force, this
is as RIDICULOUS as an argument that
that which is does not exist Among
other things the order In question
says 1t has been determined that
the daily receipts OF the government
shall be placed with the national bank
repositories TO the credit OF the treas
urer of the United States. II will not
be denied that the daily receipts OF
the government run into millions each
day, and obviously II those millions be
deposited with the national banks a
tremendous increase in deposits with
such banks will result.
1T Is clear that the secretary OF the
treasury in issuing SO radical al order
concerning the business OF his depart
meflt during his last few weeks In that
office must be considered guilty OF bad
taste, and, | fear, bad faith. Ii is just
such happenings as these that prove
the danger that lies in permitting sc
long 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.
when a national administration has
been repudiated by the votes or the
people. It is but fair to those IN whom
/ the people have expressed conf fence
! by electing them TO succeed TO the
control OF the government. that they
be not handicapped by giving the OLD
administration so much time in which
! to plot 10 make more difficult the task
OF those that are TO succeed them.
Spreckles said he would 90 TO wash
ington Monday or Tuesday and take up
an investigation of the treasury order
in official channels.