The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-02-09
NATIONAL BANK MONEY
Order is Apparently Based on Joker
Amendment to Bill Proposed
by AIdrich Ten Years
Ago.

i
awaiting the arrival here early next
week of Rudolph Spreckles, the San
Francisco banker, to press a possible
congressional investigation in Spreck-
lies charge that Treasury order
number fve,' providing that daily
customs and revenue receipts shall be
deposited in national banks, is with
out law or precedent
Senator's Gore, of Oklahoma; Pom
dexter, OF Washington, and LaFol-
lette OF Wisconsin, are pursuing in
dependent researches into the motive
/ which is behind the order. Chairman
/ Glass of the house subcommittee on
banking, who has known Of the order
for several weeks and has been in
| vestigating its issuance, announced
tonight that he believed there was no
way at present to recall the order, as
it was apparently based on "joker'
amendment to a bill proposed by
Senator Aldrich ten years ago. He as
serted, however, that his investiga-
ton into the alleged motives behind
/ its issuance would continue.
ut doesn't mean that | have stop
ped my investigation he said to-
night. ION the contrary, / am by no
means convinced OF the propriety OF
the act, to say the least. Authorities
/ ! have consulted today, however, say
that under the Aldrich amendment
added in 1903 to a minor financial
bill, which. by inference, repeats the
statute forbidding depositing OF Gus
i toms money in national banks, the
treasury department may have had
1 the right to issue order number five.
sThe present situation, however, l
believe, will necessitate my postpon.
I ing definite action on the order until
II have watched its effect If In the
SLIGHTEST sense it has any of the
evils attributed to it by Mr.. Spreck-
les, shall demand an immediate
congressional probe. 1t may be legal
but l doubt its sincerity, especial
~ since it was put into effect at the
tail end OF an administration, after
bankers had for years and years ap-
Bpealed for Just such action, and ap-
parently after everybody had forgot
ten everything about an obscure and
possibly defective amendment to an
insignificant bill passed IN 1903"
Glass intimated that he would ask
Spreckles to see him on his arrival
here.
z Senator Poindexter insisted that
he did not yet believe the treasury
order was based on legal enactments
1T is always dangerous to the A
financial stability Of the country to e
outside the statutes in handling mil
: lions Of dollars of the public's mon
:. !. ey," he said. II do not know OF any
: authority for this treasury action
: though my study of the law is not vel
$ completed. / want to see more
complete explanation from the de
y partment on that point. The ordel
: impresses me as big matter, o.
9 great Importance and one that ma,
well be Investigated with all possible
e care"
Neither Senators Gore or LaFol
: lette had yet completed their investi
cation Of the matter tonight. The!
expect to confer with Spreckles wher
he arrives. 1t was assumed here
] that with Senator Poindexter the,
l. would probably ask the senate fl
y nance committee to investigate tn,
II matter.
CrozIers' Opinion.
q WAUKESHA, Wis, Feb. S.-Alfre,
Owen Crozier of Cincinnati, exper
on currency problems whose view
have been asked by Chairman Glas
: of the house currency committee, II
= a statement tonight declared tina
: treasury order number five was fla
violation of the law, If no provision
: is made for the payment OF interes
! by the banks on the customs depos
! its.
!. IF the treasury deposits publ
. funds in banks without getting a
least one percent interest. it is
plain violation of the law" he said
"A ives ern senator forced Aldrich Il
4 insert the mandatory interest provis
ion in the Aldrich-vreeland emere
ency currency act of 1908 Befor
that it was charged that public fund
: were deposited without interest ii
favored banks to repay political obj
cations or campaign contributions.
"Banks loan credit, not cash. Eacl
million cash deposited in bank re
serves enables the banks to infiat,
4 their credi. loans four to ten millio,