New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-27
MONEYLESS u. 5.
TREASURY URGED
Federal Board Majority
Wants Cash Kept in
Reserve Banks.
From n, Tribune BursauI


Washington, Sept &C. A large ma
iority Of the Federal Reserve Board
are in favor Of a radical change in the
method Of handling Uncle Sans money.
They would have all the money on
hand belonging TO the government held
in the reserve banks instead Of in tho
Treasury and the sub-treasuries. as at
present. This change would abolish
tho present sub-treasuries and vastly
diminish the importance Of the Office Of
Treasurer Of the United States.
There i7 a division in opinion among
the members Of the Reserve Board as
to the time this change should be made,
but it was said to-day that there was
no divi ion among them as TO the ad-
visibility of the change from theoret-
zeal standpoint. The objection TO put
ting the new method into effect imme-
diately is that it would eliminate all
the employees az the sub-treasuries and
force q reduction Of the force now en-
ployed in the Treasury Department it.
self, particularly in the Office of the
Treasurer.
The change would by no means por-
tend the abolition Of the Treasury De-
partment, as there still would be many
departments of the Treasury. such as
those headed by the Collector Of Inter
ral Revenue. in charge of the collection
OF moneys in the United States; the
Controller of the Currency, in charge
Of the supervision of national banks;
the Customs Division; the Bureau OF
Printing and Engraving, where the pa
per money is made; the minis. where
the metallic money is made. and the
supervising architect. in charge of the
plans and construction OF all public
buildings.
Then, too, other departments which
are not generally known to be under
the Treasury Department would re-
main. Several of the well known d.
visions are the coast guard service,
which combines the old revenue cutter
with the lifesaving service, and the
secret service, the agents Of which pro-
tect the President and run down coun-
terfeiters.
SO far as holding the money, how
ever the Secretary Of the Treasury
would become only q fiscal officer, IN
stead of Uncle Sans banker. He would
draw checks with which to pay the
Governments bills, but would have
virtually no money on hand. The sys-
TEN of paying by Treasury warrants.
which are actually checks on the Treas
ury, would be abolished.
An advocate of the new plan point
ed out to-day that putting It into eff
feet would release more than s2OO,OOO,-
600 for actual use in the country.
About this amount is usually held in
the Treasury. and often much more,
which under the proposed plan would
be on deposit in the Federal Reserve
banks. instead of locked up in vaults.
incidentally, were this money all in
the Reserve banks. instead of being
in the Treasury vaults. the Secretary
of the Treasury could not make crop
moving deposits. This would pass 10
The jurisdiction Of the Federal Re-
serve Board. The board, it is pointed
out, could under this plan deposit all
the money It might deem necessary IN
anv member banks it chose, and IN
that way take care of the crop moving
or anv other situation that might
arise.
One Of the strong advocates of the
proposed change, and who insisted on
it at the time of the passage Of the
present currency law. is Representa-
tive Carter Glass, OF Virginia. Mr..
Glass. as chairman OF the House Bank
ing and Currency Committee, urged
this provision. and it was in the bill
when it passed the House last year.
The Senate, however, struck the pro
vision out. It is believed that the
provision will be proposed as an
amendment TO the law at the next SEES
sion and that 1t will be passed.
Ii is pointed out that no other coun-
try with a big banking system such as
the Reserve Board duplicates 40 much
Of its machinery by having Treas
ury Department which keeps on hand
most Of the governments money.