The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-20
CURB MONEY TRUST
THROUGH new PLAN
DISTRIBUTION OF NATIONAL FUNDS
TO EXPAND LOCAL MONEY
CONDITIONS.
ALLOTMENT TO BANKS
TAKE FROM HANDS OF MONEY
SPECTATORS IN NEW YORK
LARGE SUMS EACH
BY VICTOR ELLIOTT.


could not determine where to begin
or where 10 end, Secretary OF the
Treasury Macyeagh has been able to
accomplish something in this line that
puts previous efforts IN the SHADE. lie
has found way, which. according TO
experts viii to some extent prevent
the concentration Of money In new
York. Incidentally it will save large
sums of money TO perhaps nearly $780,
100000 people. w all street, however,
does not seem TO be much exercised
about the matter, as brokers believe
and know that the balance of money
Will always remain in the populous
trade centers.
Others have been issued by Mr. Mac
Veash providing for the payment of
COVER nment checks through national
banks instead of through subtreasuries
as formerly. This mere announcement
has not caused a stir. but 1t will mean
that over a billion dollars annually wiz
be drawn away from New York city,
which formerly was concentrates
there by exchange through subtreasury
checks
Distribute Funds.
This money will be dilhised in every
section Of the United States in the
shape Of checks for the payment or
pensions. irrigation works, and in fact
all government work OF all description.
It viii mean that the government de-
posits In the national bank of Roose-
welt, Arizona, will be Increased severaI
| hundred thousands of dollars In order
| that the paynaster can pay off the la
1 borars and others employed on the dig
| irrigation project there, At Pearl Har-
/ Dor, Hawaii. several million dollars
/ viii have to be deposited in the ma
tional banks in that vicinity to meet
contract payments for the Qualifications
| being erected there by the army.
~ "a IA Nm Me-, Eiftiadelf Aia7- Seat
| tleA San Francisco, New York; Boston.
Newport News, and other shipbuiiding
centers. over s60,000,00o during the
next year win be sent TO the national
banks In those cities.
The army will split its appropriation
of approximately st75,o00,000 among
the various army posts throughout the
country.
: Formerly all government paw checks
were payable at the subtreasury in
New York. Paymasters even in San
Francisco preferred the New York ex-
change because, generally the indi-
vidual to whom the checks were drawn,
could cash the check payable on New
York without a discount. Incidents
occurred, however, where the govern
ment vouchers were payable at other
subtreasuries and generally the indl-
vidual had to discount the check. Ii
has been estimated that at least s2.-
100000 was earned by banks in ex-
changing the check.
Money Kept at Home.
Whereas. formerly this money found
it's way to New York, and there held
by what congress has unotiicially term
ed a money trust, 1t will now be KEPT
/ cd inff nj TX
first gent. National banks will be the
medium of exchange, and IL Is thought
that 1t will not be necessary in the
future for farmers and ranch owners
to pay excessive rates of interest II
|. the spring and fall of the year wher
1t becomes necessary to move the
crops.
In speaking of the matter, Carm
Thompson. recently appointed treas
urer OF the United States, formerly
| secretary to President Taft, said that
it was one Of the most businesslike
moves that has yet been made by the
| treasury department in its administra-
ton of the financial affairs OF the gov
eminent Incidentally he says, 1t Will
increase the work of the treasurer OF
the United States one thousand fold.
The treasurer's office up to the pres
rrt tffne is fttIs hi s., remark ed has been
something of -'cinch,' the principal
| reason for the existence of the Office
being a desire TO have treasurer OF
the United States just as all we'll regu-
lated financial concerns have. Then
too, there is a natural desire to have
the currency complete in havi~- the
treasurers name embla2oned thereon.
Must Be Accuracy.
But it will be IN to Mr.. Thompson
10 see to it that the various disburse-
| ments of the United States, over one
billion dollars year. are accurately
made, and that at the end OF the ffs-
cal year there IL not a deficit in the
treasury by reason Of a misapplica-
ton Of funds. If there la. II will be
up to him someway or other to secure
ahe necessary funds to make the books
balance. He is responsible for every
cent contained IN the vaults of the
treasury department and Ia under bond.
IF these funds are depleted b. defaul :
cation or otherwise. the government OF
the United states VIII hold him respon-
sible
Referring to the subject Mr.. Thomp-
son stated that there will be all the
difference in the world over the old way
OF doing business. He claimed that
these disbursements would aid the In
terror business df the country would
obviate the necessity of borrowing
large sums or money IN New YORK
and Chicago and would stimulate bus
mess generally. He cited an instance
in hts home town of Ironton, Ohio.
The government eontemplates build
ing a huge dam on the Ohio which will
necessitate the expenditure of several
millions OF dollars
Case in Point.
Formerly the First National bank OF
Ironton carried very little of tho gov
ernment's money on deposit. Most all
OF 1t was sent TO New York and from
there called for by interior banks Now,
however. 1t will be necessar~ for the
government To always have enough
money In the Ironton bank to meet
the checks drawn on the government.
and made payable through the First
National
To facilitate the new undertaking. a
wing Of the treasury department has
been turned over to the disburse
ment division. A modern bank room
will be Installed, and q force of cou-
pie hundred clerks employed to han
die the various transactions A great
influx Of new business is expected by
the treasury department. Off Gals as 1t
is though that the allotment to nearly
every national hank in the country
7 Will have 10 he doubled.
To some extent, Treasurer Thomson
says, the money trust will be curbed