New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-21
Reserve Bank
Shifts Government
Deposits Here
Move to Equalize Distribu-
ton of Liberty Loan
Funds


York. acting on instructions from the
Treasury Department at Washington
took steps yesterday to equalize the
distribution of United States govern
ment funds on deposit with banks in
this district on the Liberty Loan ac-
count. Approximately s36,000,oOO was
withdrawn from 1873 qualified depos-
itary banks and trust companies and
redeposited with 104 other institutions.
OF the latter it was announced that
thirty-seven have had no such deposits
prior to this time either because they
were not qualified as depositaries on
the date of making the original depos-
its or because they had not avalled
themselves of the opportunity to open
book credits in favor of the govern
ment on that occasion.
Much Money Withdrawn
The total number of qualified deposit
taries to date is 244, which have quail
fed for an aggregate amount of de-
posts of s423 100000. On July 2 the
banks in this district belonging to the
New York Clearing House Association
held on deposit government funds to
the amount of $32S.0 76,000. Since that
date government deposits in this dis
trict have fallen off quite considerably
owing to heavy Withdrawals. Last
week in excess of S150,000,000 was
withdrawn, which was the principal
cause of the stifcning of money rates
at this centre, with the rise in the rate
for call loans at the Stock Exchange at
10 per cent on Monday, the highest
level of the year.
The arrangement by which the gov
eminent is keeping on deposit with
qualified banking institutions the funds
received on the Liberty Loan payments
was put into effect for the purpose of
disturbing money market conditions
as little as possible. The scheme is
for the banks to retain the govern
ment funds until Washington draws
on them The Treasury Department
announced in May that the cash pro-
ceeds of the Liberty Loan from time
to time remaining unexpended will be
deposited among the subscribing banks
and trust companies designated as
depositares as nearly as may be in
proportion to the payments of each in
cash and certificates of Indebtedness
upon subscriptions TO the Liberty
Loan.
New Instructions to Banks
The following instructions were re-
ccived yesterday at the Federal Re-
serve Bank Of New York from the
Treasury Department having to do with
the readjustment Of government funds
with depositary banks:
Each Federal Reserve Bank is
hereby authorized to redistribute
among Liberty Loan depostaries now
qualified in its district the amount
paid in in cash and by credit on Lib
erty Loan bonds, as nearly as pract-
cable, in the ratio Of three for certif-
cate payments to one for cash and
credit payments; that is to say, that
every dollar face value of certificates
turned in shall be entitled to share
in deposits equal TO three times the
share in deposits allotted TO a dollar
paid in cash or by credit; provided,
however, that no qualified depositary
is to have on deposit more than the
aggregate Of its subscription payments
in cash, by credit, and in certificates,
nor more than the sum for which it
shall have qualified as depositary."
Bonds Ready Soon
The last payment on Liberty Loan
subscriptions is due August 80, and the
engraved bonds, according to advices
from Washington, will be delivered as
soon as possible after that date
Where bonds have been paid for out
right to the Treasury, and it is report
ed there are many millions of dollars
in this class. the engraved certificates
will be delivered direct 70 the indi-
vidual subscribers. Bonds subscribed
for through banks will be delivered to
the banks. and through them to their
customers, when paid for. At present
the Bureau of Engraving and Printing
is daily turning out many thousands Of
bonds, which are piling up mountain
high in the steel vaults of the Treas
ury Department.
Because so large number of people
subscribed only for one $50 coupon
bond. the number of bonds of this class
probably will outnumber all the other
denominations combined, not. of course.
in value, but in bulk. coupon bond.
in bulk, is twice as large as a 500
registered bond, or Of any registered
bond, whatever its denomination. It
has much more work on it, the printing
on the coupons alone being more than
on its face.
A National Advertising Advisory
Board 10 the Liberty Loan Committee
of the Second Federal Reserve District
has been appointed as follows: Col
lin Armstrong, chairman; w. 7. Null
lally, chairman; Lee dwell, Frank
f. Sisson, vice-president Guaranty
Trust Company, and A. w. Hopkins,
advertising manager American Chicle