New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-02
BANKERS INDIFFERENT
70 NJ ADOO'S NEW PLAN
pso,Jirement Of Interest on
fl government Deposits Crit
Cised in Wall Street.
little CHANCE FOR PROFIT
Acceptance of Collateral Other
than Government Bonds
Praised-Some Banks
Apply for Funds.

The announcement Of Secretary Nc
100 OF the Treasury Department that
ar June r national banks which have
- designated as depositaries for pub
o.. funds shall be required 10 pay per
40, annually ON both active and inactive
insists was the subject OF much crit
-, tn the financial district Yesterday.
d, has been the custom for the banks 10
.,rrov large portion OF the bonds
which thc government stipulates shall be
4sno.ited as collateral for its funds but
.,6e- the new system II j. probable that
,r effort will Doe made 10 get Secretary
ueAdoo 10 accept larger percentage OF
.other than government bonds rs col
lateral for such deposits
There is mo- objection TO the interest on
inactive deposits which. in fact has
zen paid since July 1912. but II Is argued
nat 10 nav per cent on the active
asposits the banks viii have 10 earn ~
nor cent interest OH their money 10 was
even binted that some OF the banks might
,urn hack some Of the Treasury funds
seposited with them. but it IL believed
mat such movement Will not take place
an account Of the prestige a bank ac-
oures by being known as a government
depcsitar
Believes Plan is Fair.
An exception 90 the majority Of views
eXnressed on the new McAdoo measure
was embodied ia the statement Of the
head of one az the largest downtown in
stitutions He declared that for national
ranks o. pay > per cent interest on all
their government deposits was not entirely
unfair. in view of the advantages gained.
He said that 200 all probability little OF
the 100000 puohc money which is 10 be
distributed in different parts Of the coun-
try Will come 90 this city. IL will UH-
ooubtedly go 20 those centres which have
been affected by the recent floods. ne said
The only part of the McAdoO policy TO
receive general commendauon was the
plan % allow ~ per cent of the collateral
for government deposits 10 be In the form
Of state county and municipal bonds
The arrangement that lets us use state.
county and municipal bonds. said an
oacer Of one Of the largest downtown
banks. AT - per cent of their market
value for 80 per cent Of the security for
government deposits gives "A little chance
10 make profits. even though we have 10
ray interest on the deposits. but the Op-
portunities are not great. 10 is worth re-
Numbering too that when We buy gov
eminent bonds 10 secure deposits We have
10 take the risk Of depreciation In THEN
market value"
Several bankers expressed the opinion
that in periods Of tight money MIR. Nc
Adoos plan might prove Of considerable
valve. and that applications Tor govern
ment deposits might he large
Washington. May Requests from ma
rnua banks for share In the additional
Noco0"lo government funds which will
soon Boz deposited by the Treasury De
Dartmeat We're received to-day by Secre-
tsry McAdoO Some Of them wanted as
much as a half million dollars In a few
days the Treasury Department will for
mally advise the banks Of the plan 10
charge per cent interest on government
deposits. and will then make arrange
ments TO distribute the 100000
Secretary McAdoo said to-day that if
the banks had been required to pay per
cent interest on their average govern
mental balances in tho last sixteen years
the Treasury would have been enriched
by S06l0SN. re adGed that the largest
amount OF government money Oh deposit
with the national banks at one time i'm
ne last sixteen years was in December,
l'NG when IL was $50 $4,000.
Surplus for Fiscal Year.
Footing up accounts. Uncle Sam found
a deficiency Of $3.6A.OO0 for the month Of
April. Exclusive Of Panama Canal and
public debt transactions. the receipts for
April amounted TO S5S.452.COO while dis
burSements reached S7lO5,Cc. Up to date
for the current fiscal year. however. there
IS a surplus Of ordinary receipts over ordi-
nary disbursements Of $3.50. 900. against 4
deficit a year ago Of Sl256O,OcO
customs receipts for last month fell off
= 10000 As compared with April. 1872
" lille internal revenue receipts in
creased s. cg0ep1 A big factor i'm the in
creased expenditures for the month just
closed was the pension payments under
me new law. These exceeded the pension
d sbursements OF April, 1912. by S.2l7,o1O.
The total balance in the general fund to-
1ay was Sl4l $3.50 including a working
balance for the government OF S73,077, 900,
which. n is expected, will soon be de
creased BY 100000 under Secretary Nc
AdoO's authorization for additional de-
posts in the national banks. Trust funds
In the Treasury include 800. $4,000 in
April coined $f.250,O00 in gold.
The circulation OF the 7,460 national
banks to-day amounted 10 1871, O44 591
By Telegraph 70 The Tribunel
Philadelphia. May 1-OfhceTs Of local
banks which are government depositaries
object TO the new order by Secretary Nc