Show SECRETARY GAGE CAGE MAKES REPLY Tells Why Ho He Deposited Funds 10 iI the National CRy Oty Bank FOR FOlt MARY MANY YEARS Would Not U II Sum VII Up I Long e tu in n l Ill Few Itra graPh for WashIngton Jan Gage today sent to his replies to resolutions recently l In the tho Senate by Mr Allen Alien rind nd In n the thu houSe by Mr fr SUlzer of New York Ih rho text ot of hI his reply rely which Is 18 un nfl exhaustive exposItion or of thu c If that branch or of the treasury under lii hl relating to national bank depositories contains about words word and Is supplemented by br special reports from Crom department officials rela tire tIO to special Inquiries In the tho tione including copies of over 1000 lot lotters lotters on the subject under consideration In UP his reply to the In quince the secretary says y the tho reason for utilizing national banks as depositories for pub public lie lic moneys as authorized by law when t the e receipts of the were weN ex cx c its Ita expenditures has b been n to avoid the disturbance to the withdrawal of large InIgo sUms ot of money monc from active circulation to the tho treasury vaults aulta must Inevitably cause The poll poli policy C cy thus pursued by mo me ims boon been the tho established policy of the tho government nt for tor many years ears and a departure from Crom It und t sImilar conditions would ctr cause disastrous re results St rea reason On for directing the tho Internal revenue receipts Into depository banks at this time is Ie that the tho revenues are now flow largely exceeding disburse meats ments from month to month em likely to do so 60 Lot tor an indefinite time Ume This condition would be II a t to the world Jt If assurance were not given hat this surplus would be diverted from th the treasury vaults to public where while to the government It wOUld remain available to the business world reason for directing alt all the Internal revenue receIpts to one de depository depository was that thaL It ws more con convenient to collect the n of one In one place and the desired dis distribution from It than to give Ive dully daily to collectors The most convenient agency to such du dEs is III a 1 bank which Is a 1 mem member ber ot o the New ew Y k House o l for s the National City b S such IUn agent was Vas that a th the the order was Issued It was ne of but two banks which had offered bonds sufficient to cover the amount of the dally daily de deposit posit Its bond deposit was and that of the Hanover National bank The National City bank was therefore the most naturally natural chosen Of the hanks banks ap applyIng applying plyIng for a 1 share of the deposIts the National City bank the Hanover Na National bank and three for over each are the anI only ones out of the constituting group one which have hae not been sup supplied plied vliet the full tull amount for which they had offered s security custom house property was sold to the National City bank as the highest bidder on Jul July 3 1899 Un Under del der the terms of the sale It had th the option of paying In cash all ot of th the p r chase money at an any time or an any part It might elect above which sum aunt It was absolutely absolute obliged to pay It exercIsed this option b by choo choosing to pay leaving yet due dueNo dueNo No deed will be e until full pay payment payment ment huts hM been made The payment received was turned Into the treaSUr by deposit In the tho Na National City bank It having been an es custom of treasury der the counsel of their legal adl cr supported by decisions of the Supreme court to consider moneys on deposit to the credit ot of the treasury ot of the UnIted States In designated depositories as moneys mones In the treasury treasur ThEa dC deposit Will was ma made e In a depository bank for the same reason that other deposits have been made tn In them viz Because to withdraw the currency Into the vaults of the treasury where It was not needed and could not be utilized would have required a withdrawal of credit that was WIlS being expended In commercial cit clr des cles and to that end a disturbance to the tho natural order o of business would ha have followed To have required ItS Ito payment by bythe bythe the National City It II a bank to another I designated depository would have been an ungracious discriminatIon without substantially substantial changing the fact Finally under my administration of the treasury deportment department no In favor faor ot of one bank against another has been made Generally speaking when an Increase in depository depository tory banks wn desired all have hae ire In to qualifY themselves for Ing such money and having been equally and equitably considered In their respective relations ns to the irons treas treasury ury |