The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-02
ONLY SEVENBANKS
REFUSE TO PAY
INTEREST CHARGE
They Surrender Their
Deposits Of Govern
ment Funds.
APPORTIONMENT
is ANNOUNCED
Of s11,5sl, 500, Virginia Gets
S3e7,Oo0 in % Banks and 18
Cities and Towns-North
Carolina Gets $328,0O0 in
10 Banks in 13 Cities
and Towns.

Washington. Juno 1.-Secretary Nc
Adoo tonight announced the distri-
button by States OF the additional S1o,-
100000 OF Federal funds which the
Treasury Department will deposit in
the national banks His statement
also discussed the manner In which
the banks had received the recent
order that per cent interest yearly
be charged on all government de-
po.its
or the $50 active depositary banks
on May /, WHOM the secretary Issued
his interest order. Mr. McAdoo said
only seven have declined to pay the in
terest charge and ceased TO be gov
ernment depositarics. surrendering
their Federal funds to the Treasury.
The s10.00o,oo0 and the surrendered
amount. aggregatins sl1.5S1.51o, has
been apportioned In various amounts
among 607 national banks in AIS cities
and ;owns In the forty-eight States and
the District OF Columbia
Thosc Unwilling to Pay.
The seven banks unwilling TO nav in
terest. he secretary said. were the
National City Bank, the National Bank
Of Commerce and the Chemical Ma
tional Bark OF New York City: the
National Rank OF Commerce, OF New
London. Conn; the Merchants National
Bank OF Savannah, Ga; the First Ma
tional Bank. Of Buffalo. Wyoming. and
the Seaboard National Bank, Of San
Francisco.
Various banks In different sections
OF the country. In expressing their
willingness TO pay the interest charge"
said Mr.. McAdoo. strongly commend
ed the wisdom and fairness OF the ad-
nintstration's new policy in imposing
me charge, although it necessarily
reduced their profits In some appl-
cations for a share OF the additional!
3l9.o0o.0o0. banks, especially the larg-
est ones in Boston and Chicago, re-
quested $i,000.000 or more OF the de-
posits"
Twenty national bank depositaries
in New York City have notified the
department that they desire to retain
the depos!h and that they will pay the
per cent Interest.
The secretary announced that he had
reduced the government deposits in
a number OF banks, which, ne said.
'at the close OF the last administra-
ton held amounts which seemed to
be excessive or unjustified. the rcduc-
tions in most cases being made against
tho protests OF the banks which de-
sired 70 retain the funds, notw!th-
standing the interest charge
Under the distribution OF the new
deposits the thirteen Southern States
will receive $3.50. 900 in l5o banks In
l27 cities; the eight Middle States
s2,932. 900 in 1G4 banks in 1873 cities,
and nine Western States S95O0o0 in
seventy-two banks and in sixty cities
How AppOrtionment is Made.
Apportionment was made on the
basis OF population, capital and sur
plus needs OF the respective sections
OF the cuontry, and the circulation
status of the banks, preference being
given To those institutions whose spec
ulatton amounts to not less than 80
per cent OF their outstanding capital
or the 607 banks receiving the de-
posits, ia already were government
depositaries. and some OF the remain
ing holding only nominal balances
The apportionment for Tennessee,
North and South Carolina and yir-
Ginia was as follows:
North Carolina. apportionment, s32s.
600: banks. sixteen; cities and towns,
thirteen.
South Carolina. apportionment.
$4,000; banks, fourteen; cities and
towns, thirteen.
Tennessee, apportionment, 100000;
banks. sixteen: cities apd towns.
nine.
Virginia, apportionment. s3o7.ouu;
banks. twenty-three; cities and towns.
eighteen.