The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-02

UHtIGlhA men dS one OF lnS UlDfl ttINlef-
able and best conducted arms OF the
Government In an honorable career OF
sixty eight years In this time In ham
ding many billions Of Government money
the loss to the Government through error
or defalcation has been practically moth
ing Tho sub-treasury handling OF the
movement OF vast amounts OF tho coLn-
try's money. in the opinion ~ the bankers,
has conferred great benefits upon the
banking and general financial interests
OF tho United States.
would Increase stars.
one Of the factors that led Treasury
officials AT Washington 20 consider the
possibilities OF merging It's work IN that
OF the reserve system Is the authority
given TO the Secretary OF tho Treasury
under the reserve act 70 deposit Govern
ment money in the general fund Of the
Treasury with the reserve banks II he
chooses He has not decided to deposit
all II ne should IL is pointed out that
this part OF the fiscal work of the Govern
| ment ard the handling Of Government
checks against ite deposits has already
been largely transferred from the Sub
Treasures TO the national banks and the
office of the Treasurer OF the United
States The balance OF The work which
Is stil handled BY tho New York sub
| Treasury employs twenty men, II the
'
I only the reserve bank would have 20 IN
| crease its stan. but likewise the Sub
! drensury would have to retain star
| TO take caro- OF the coin and currency
| counting work done by the tw enty men In
\ part Of their time
| This work. which Is the only obvious
| part Of Sub-Treasury functions that the
| reserve banks may take over. L. only q
small part OF the work done by eho Sub
4 Treasury OF New York.
The factor NJ prime importance which
! 4 ls understood has operated TO make
/ Il practically certain tina, the Sub
/ Treasury will not be done away with or
, even reduced 20 any extent IN operations
| "a ,nRt the Federal reserve banks are
| only quasl-pubic Institutions. In tho
| opinion OF many bankers the reserve hani;
( system ia a private institution, the stool;
I OF tna reserve banks beirg owned by the
| national banks. The influence OF mo
/ Government. although powerful through
the privileges the Government has cor
.erred on tine syE'em Is considered !r-
direct and chiefly regulatory. The uues'
tion OF whether tho reserve institution is
| Z part OF the Gov ernmeat or not "a now
In the hands OF the Department OF Justice
for decision.
Il IL therefore considered absolutely
essential that the Government retain rs
own system OF handling tho billions ,t
which * IL responsible. II is po!nted out
further that the trainers OF the rcscrv.
act evidently had In mind the retention OF
the Sub-Tressury system through Tho
provision that the = per cent gold re-
demption fund for reserve and national
bank notes. which cannot be neld En- tho
reserve banks. and the reserve bank ntr'
themselves subject 20 tho call OF the
Comptroller. he deposited In tho Treasur!
or nearest Sub-Troasury.
Il is also shown that tho Federal re
serve banks are 10 he operated 10 pro
duce "A profit These oanlts therefor
will not want the heavy ana .nboriou.
duties now performed ny the sab
Treasuries because OF the big expense lu
VOWED. The American Exchange BAN
not long ago asked to be relieved az The
, burden OF handling tho Governments pos
office money order account because q
It's expense and this is now looked aft5
~ tho Sub-Treasury,
Enormous sum. handled.
! There Ia nothing In tho reserve ac
giving tho reserve banks authority 70
tho redemption and exchange of coin an,
| currency. This is n Government func
ton pure and simple, The magnitude o
, this work IA seen IN the fact that tn
Sub Treasury az New York. whlSn doe
two thirds Of the financial business o
handlad thn enormous amount Of s45s5
400 600 ,ast year. OF which 81 40 600 90
was in actual currency. gold. silver o
= coDuers. Every dav II sends an averag
Of 81 900 600 of ragged currcnc, ~ Wash
iugtou for exchange after ia, Nuriou
: work Of twenty men counting, 6, "4 an
preparing some of II for launuer.uS l
= handling receipts and payments Of NOR
than 100000, 900 In gold and 500. 900, 90
> IN silver every year tine work Of countin
, takes stan OF ten men. At hollda
seasons. when tho trolley and subway, tn
department stores and chewing gum com
panies are turning in foods of nickel
and pennies. 1t Is pointed out that IN
Federal reserve bank OF New York,
, bank OF banks, would hardly care to b
occupied with tho counting OF lOO'OOO'OO
, pennies or sOOOO'OoO nickels' which tn
Suo-Treasury handles here WIN SIX me
each year In ADDITION inc Suh-Treasur