Year: 1872

,etter referred to.


Tho City Deposits-Tho Custody OF


tho city Funds and tho Interest


Question.


Comptroller Green last week addressed q
letter to the City Chamberlain, expressing
want of confidence in the Tenth National Bank,
in which was deposited two million one hun
dred thousand dollars belonging to the city of
New York. and requesting the Chamberlain to
3.make immediate arrangements to have the
same transferred to some banking institution
of the city of recognized standing and means"
This letter reached the Chamberlain at four
o'clock on Saturday afternoon, and on Monday
morning early that officer drew warrant for
one million eight hundred and fifty thousand
dollars on the Tenth National Bank, and sent
it to the Comptroller for his signature, for the
purpose of drawing out that amount Of the
public deposit. The Chamberlain, in his
reply, to the Comptroller, states that
he thus withdraws all but two hundred
and fifty thousand dollars from the Tenth
National, "without any notice." in order to
show how unnecessary are the Comptroller's
apprehensions in relation to the safety Of the
public moneys on deposit in that bank, but
adds that he does not by this action waive his
right to exclusive direction in regard to the
custody and safety Of the public moneys.


IF Comptroller Green had any good grounds
for believing that the Tenth National Bank is
an unsafe depository of the city moneys he
did perfectly right to counsel their withdrawal
therefrom. No person else shared his fears as
to the solvency Of that institution, which is
supposed to stand in as good credit as any
bank of its capital in the city, and its prompt
payment of nearly the whole of the large
deposit at sight will probably remove even
Comptroller Green's apprehension. If the
request made to the Chamberlain was
prompted by less worthy motives it has only
recoiled upon himself, for it has afforded
the Tenth National bank on opportunity
to prove its strength, and has
fully justified the discretion of the
Chamberlain in selecting it as q bank of
deposit. Indeed, the ''alarm' Of the Comp
troller must have been Of recent origin. No
portion Of the deposits can be withdrawn from
the Broadway Bank and placed in any other
bank without the .countersigning Of the
warrant by the Comptroller; hence that officer
must have had full confidence in the solvency
of the Tenth National when he consented, by
bis signature, to the transfer Of SO large on
amount Of the city moneys to that bank.


The Chamberlain is right in protesting
against any intermeddling on the part OF the
Comptroller with the custody Of the public
funds. The present financial system contem-
plates the entire separation of the two Offices.
The Chamberlain is the treasurer of the city,
holding custody Of its moneys, responsible for
Eheir safe keeping, and giving bonds in heavy
Amount-one million two hundred thousand
aollars-for the faithful discharge Of his
duties: The object is clear. It would be an
unwise policy to allow the Comptroller
gives only twenty-five thousand dollars
oonds-to draw warrants and pay them
himself; to hold the custody Of the city
funds in one hand and to disburse them
with the other. Whether the law regulating
The Chamberlain's powers and prescribing
his duties does or does not need amend
ment is foreign to the subject. The principle
Of separating the Offices of Comptroller and
Chamberlain is o good one, and the rest is
matter of detail. The HERALD long since
advocated law compelling the banks holding
the city deposits to pay interest on the same,
and, in its absence, approved the action of
Chamberlain Sweeny, who, on his own respon-
sibility. required the depositories to allow
four per cent interest," and paid the amount
over to tho city, thus creating a fund Of
between four and five hundred thousand
dollars for the benefit Of the taxpayers up to
the time Chamberlain Palmer took Office.
Comptroller Green thought proper to prohibit
this arrangement. Like much Of the Comp
troller's official conduct this action savored
more Of personal spite than of public
spirit The city received the money, but the
Chamberlain obtained credit for the arrange
ment The interests Of the taxpayers were
sacrificed to crafty petty jealousy. How
ever much it may be the fashion to applaud
Comptroller Green's honesty, these are plain
facts, known to every citizen, and the commu-
nication from Chamberlain Palmer on the
subject only renders them more clear and