| Show IRA TREASURY URY TO In CALL IN DEPOSITS U. U S. S Officials Will Till Abolish l Hundreds of Depositories Intend Q to lo Save Interest Payments of 2 Per Pcr Cent I IW W Feb Fob 1 i. Drastic W V V reduction in the thc number of national national na nn- na- na banks designated as ns government govern govern- I merit ment depositories tories is being made b by bythe j the treasury department with the tilt result that less than of the thc 1331 i j institutions holding federal funds on 1 I June Junc 30 1919 1019 are nrc expected to escape escape the pruning knife Changes in iii the governments government's financial financial finan finan- cial sit situation brought about by wars war's fiscal operations it was as said officially today have Jan made it necessary to abolish hundreds re s of of- the depositories and revise rc the tho pl plan ll for distribution n of government go monies am among n banks employed since before 1912 Though Thought the lie treasury Is Js cutting off ott ottI I I the lie inactive accounts It also is re reducing reducing re- re the amounts In man mali many other banks banks in in all In tact where gov government govern govern- tn m mont ment nt transactions lons do donot I nor require the use f of lar largo large o sums Jums f Jank Can Cnn Get Equal Tl Scientific apportionment It is sald d will be the basis in future for I disposition of surplus funds Officials Officials rials explained the lie new policy os as I to depo depositories would v operate so that each hank bank will be able to ns on a basis of oC business done ono Cor for the government go Included In the list of oC national banks hanks already struck off are arc institutions which hud had accounts of on only I 1000 and aud which were designated as government depositories in the adm administration of at Franklin M. M as secretary of oC the treasury for President Taft TaCt Practically half halt the banks to be bo deprived of ot government o funds already have ha been eliminated from the rolls I and outstanding amounts thus have i I been reduced from to 27 t Officials were reticent today as to tho ho geo geographical location of ot the depositories canceled 11 to 0 Continue The new policy of ot the treasury treasur de department do- do does not contemplate disturbance disturbance dis dis- of ot the present system of or special cial elal depositories which was created as an emergency measure in war days There was a total of ot of ot these lii- lii In Institutions at the lie first of ot the year ear Such depositories automatically will cease to function when the tue period of oC theIr usefulness terminates but so lon long as It tt is necessary to employ extraneous extraneous ex ex- fiscal policies and so long as the tho war program ram of oC financing lasts the government Ro accounts will be re retained retained re- re tamed in the specially chosen banks ItIs it itIs itis Is understood With the lie establishment of ot the lie federal fed fed- ed- ed eral reserve reser banks and branches government go gov payments have ha been een made more moro and more through h them and abolishment abel abol of Qt the lie national bank depositories depositories tories therefore represents a further leaning of or the treasury on the re reserve ro- ro servo serve banks in carrying on th the nations nation's b business u s I a e s s. s Deposits in the tIle national banks pay the tho government only 2 per cent but hut I while there here was w as a surplus of or money monc In Inthe Inthe the lie treasury a wide ide of ot government o Cun funds s proved plo an invest invest- I ment meat With Hh the lie war camo came the tho great bond and nail Indebtedness certificate Issues isSUes Is- Is sues on which the lie government gO Is paIn PaYing paying pay pay- f In ing from froni SJ i to 4 43 lI per r c cent nt Interest In withdrawing deposits from inactive accounts and in reducing th the amount In all banks tf the government officials pointed out Is saving the difference In Interest Since Sineo the treasury began analyzing tho the question of or depositories and since government accounts havo have been withdrawn with with- I drawn one by bO one officials have havo begun I to receive recel n mi many o inquiries inquiries' and naturally naturally ally some protests concerning the lie new policy There Titers still arc In Congress t I man runny many senators and representatives es upon whose recommendations the depositories depositories de de- de- de ero designated and these are arc solicitous about the tho banks batiks hack hac home homo treasury officials said sahl There also have havo come from scores of ot state officials Inquiries as alt to the significance of oC the lie withdrawal of ot accounts from tron I banks |
