Of course you realize the great amount of labor necessary to list numbers and amounts. The adding machines and typewriting machines which were adequate under ordinary circumstances utterly failed in this instance. The Burroughs people kindly loaned two machines to accept them on trial is contrary to the regulationsand they would not hire them-for which we are exceedingly grateful. One of the Burroughs machines slipped a cog last night. The agent will send a man down immediately.

We have not received any comment on the collections sent to the treasurer. In some instances we have not adhered strictly to instructions; we had troubles enough, one of which is using both sides of the sheets. Errors of inexperienced operators necessitate erasures on originals and carbons, which not only cause delay but queer the results.

Yesterday shut down the laundry early and the operators were set to assorting checks. They knew little about the work, but helped some, and if the checks continue to come in as they have for three days their services will be felt.

The acting custodian of the building is troubled to furnish heat after 5 p. m., although last night the rooms were at a comfortable temperature. I think he will communicate with the department. I threatened to rent rooms in the Drexel Building-at my own expense, of course-if necessary heat is not furnished.

Two of the most experienced typewriters of the office have been at the machines 12 hours each day for three days, and one lives a full hour distant from the office-women. If both should collapse it might cause delay in getting the statements out. In fact, it has been impossible to prepare and mail them the day received.

If you have time, just cast your eagle eye on what we mailed Thursday, Friday, and to-day. The pensions are not so troublesome as little, out-of-the-way, disbursing officers with two or three checks.

Please pardon the time you have lost in reading this, and remain firm in the belief in my continued loyalty to the department.

Sincerely,

W. HOWARD GIBSON, Assistant Treasurer, United States.

FEBRUARY 6, 1913.

DEAR MR. GIBSON: Referring to telephone conversation with you yesterday, you are advised that it is the desire of the department. that you honor all Government warrants and checks when presented to you in due course of business by a responsible bank and indorsed in the usual manner. Such indorsement will be ample protection to you in case the warrant or check is rejected on examination in the treasurer's office. It is not considered that you need any other guaranty from the bank than its indorsement, which is ample to protect you. You do not occupy the position of a paying bank. but rather the position of a bank intermediary between the drawer of a check and the bank upon which it is drawn. It is hoped that you will do all in your power to promote the success of the new system of making disbursements, and that the department will not be fur

ther embarrassed by having checks and warrants rejected by you when presented by responsible holders.

Very truly, yours,

Hon. W. HoWARD GIBSON,

R. O. BAILEY, Assistant Secretary.

Assistant Treasurer United States, Philadelphia, Pa.

Mr. JOHN G. Muir,

JANUARY 30, 1913.

Cashier Office Assistant Treasurer United States,

Philadelphia, Pa.

DEAR SIR: I am in receipt of your letter of the 28th instant, relative to the method to be pursued in case any depositary bank pays checks or warrants in excess of the amount of its deposit, or in excess of one-half of its authorized deposit. The department expects to make such dispositions of its revenues as will insure keeping a sufficient balance in the hands of every depositary bank.

Very truly, yours,

Hon. R. O. BAILEY,

R. O. BAILEY,

Assistant Secretary.

TREASURY DEPARTMENT,

UNITED STATES SUBTREASURY,

Philadelphia, Pa., January 28, 1913.

Assistant Secretary of the Treasury.

SIR: Referring to conversation had with you yesterday, the following is respectfully submitted for consideration:

The fact that two of the three centrally located depositary banks in this city have mentioned what to them appears a serious objection to satisfactorily carrying out department's new method of negotiating checks, viz, the fear of liability at almost any time being called upon to pay checks far in excess of the Government's deposit, the following course would, in opinion of the undersigned, remove any such difficulty and eliminate entirely the objectionable feature mentioned: For depositary banks located in Subtreasury cities.—When checks on Treasurer of the United States, Washington, D. C., are presented for payment at depositary banks in excess of deposit (or in excess of one-half of authorized deposit), said bank to inform Assistant Treasurer of the United States of fact in writing, stating amount of such excess, and issue therefor its certificate of deposit in duplicate in favor of such Assistant Treasurer of the United States for the amount of such excess of checks over deposit. Upon such certificate in duplicate being presented to Assistant Treasurer of the United States he shall honor same, charging it as a transfer of funds to the Treasurer of the United States, and transmitting the original with transcript of account and retaining duplicate for files of his office.

For depositary banks located in other than Subtreasury cities.When checks on Treasurer of the United States are presented for payment at depositary bank in excess of deposit (or in excess of onehalf of authorized deposit), said bank to notify Treasurer of the United States by wire, in code, of amount of such excess. On receipt

of such notification Treasurer of the United States will immediately instruct assistant treasurer nearest to such depositary to ship to such bank sufficient sum to offset such excess of checks over balance on deposit, said assistant treasurer to charge amount so shipped against Treasurer of the United States as transfer of funds.

Advantages of such a system would be twofold:

First. The knowledge that depositary banks could immediately secure funds to handle Government business, and not be financially embarrassed when heavy drafts are made on them, or otherwise be compelled to refuse payment, would make such banks more willing to honor Treasury checks and transact Government business.

Second. It would facilitate business in so far as Treasury Department is concerned, thus avoiding necessity of making numerous shipments of currency to depositary banks in same city and reduce to minimum necessity of frequent recourse to telegraph.

NOTE. Suggestion is made that most satisfactory time to come to relief of depositary bank would be when checks are presented for payment equal in amount to one-half of authorized deposit. If transfer of funds is delayed or only made when checks are presented exceeding authorized deposit, it might result in dissatisfaction, in that if balance was wiped out daily Government deposit would be of no benefit to bank, but latter required to perform all service connected with handling of checks, etc., without any adequate return therefor.

Very respectfully,

JNO. G. MUIR,

Cashier.

TREASURY DEPARTMENT,

UNITED STATES SUBTREASURY, Philadelphia, Pa., January 22, 1913.

The SECRETARY OF THE TREASURY.

SIR: Herewith please find copy of an agreement which it is proposed to secure from Philadelphia banks that may use this office as a collection agent for checks drawn by disbursing officers whose credits are with the Treasurer of the United States on and after February 1, 1913.

A carbon of the letter of transmittal of the form of agreement is also inclosed.

Copies of the above-mentioned form of agreement and letter are being mailed to the banks to-day.

Very respectfully,

Hon. R. O. BAILEY.

W. HOWARD GIBSON,

Assistant Treasurer United States.

[Treasury Department telegram.]

WASHINGTON, January 23, 1913.

Hon. W. HoWARD GIBSON,

Assistant Treasurer United States, Philadelphia, Pa.:

Please do not send your form of agreement to banks, as indicated

in your letter of January 22.

BAILEY.

Hon. ROBERT O. BAILEY,

TREASURY DEPARTMENT,

UNITED STATES SUBTREASURY, Philadelphia, Pa., January 23, 1913.

Assistant Secretary of the Treasury.

SIR: Receipt of your telegram of this date is hereby acknowledged. A note is going out to the banks requesting them to suspend action on the form of agreement submitted to them yesterday, in expectation of a more acceptable proposition from Washington.

Very respectfully,

W. HOWARD GIBSON, Assistant Treasurer United States.

The CASHIER.

TREASURY DEPARTMENT,

UNITED STATES SUBTREASURY, Philadelphia, Pa., January 22, 1913.

SIR: This office has been notified that beginning February 1, 1913, all warrants and checks except postmaster's checks and those issued by the courts will be drawn on the Treasurer of the United States, Washington, D. C., and with exceptions noted none will be drawn on this office.

According to department Circular No. 5 on subject, checks drawn on the Treasurer of the United States will be paid by designated depositary banks and assistant treasurers of the United States.

In view of this you are advised that in payment of such checks this office acts only as agent, it having no means of ascertaining when checks are presented for payment whether same will be honored when charged against the Treasurer in settlement of daily account of this office.

It will therefore be necessary for this office to require from each institution presenting checks for payment the prior filing of letter in this office embodying resolution of board of directors (or managers), assuming liability for amount of all warrants or checks which may be returned to this office unpaid from the Treasurer of the United States.

The inclosed form will meet the requirements of this office.

Respectfully.

Assistant Treasurer United States.

At a regular meeting of the board of tution), held ———. 1913, it was, on motion,

of the

(name of insti

Resolved, That it is hereby agreed by this institution that in receiving payment on warrants or checks drawn on the treasurer, or on any Assistant Treasurer of the United States, the Assistant Treasurer of the United States at Philadelphia in paying same acts only as agent in making such payment to this institution, and that the (name of institution) holds itself liable to make refund to said Assistant Treasurer of the United States at Philadelphia in event of any warrant or check so paid being returned to him for any cause whatsoever, and that such refund will be made upon notification being received by this institution of the return of any such warrant or check. I certify that the above is a true copy from the minutes.

[SEAL.]

Secretary of Board of

TREASURY DEPARTMENT,

UNITED STATES SUBTREASURY, Philadelphia, Pa., January 22, 1913.

The TREASUrer of the UNITED STATES.

SIR: Will you kindly inform this office the method you wish followed in executing the instructions given in paragraphs 1 and 6 of department Circular No. 5 of January 8, 1913.

It is presumed that the balances referred to in No. 1 may be posted in the transcript as one item, referring to lists attached.

There is some uncertainty as to the fullness of detail to be furnished. with each day's transactions.

Information in reference to both paragraphs will be gratefully accepted.

Respectfully,

W. HOWARD GIBSON,

Assistant Treasurer United States.

JANUARY 24, 1913.

Hon. W. HOWARD GIBSON,

Assistant Treasurer United States, Philadelphia, Pa. SIR: Replying to your communication of the 22d instant, addressed to the Treasurer of the United States, you are advised that each disbursing officer's account is to be closed at the close of business on the 31st instant by transferring the balance to the credit of the general account of the Treasurer of the United States. The aggregate of the balances so transferred will be taken up in the transcript of the general account for the period ending January 31, 1913. A certified list of the balances so transferred will be transmitted to the Treasurer at once for his use in entering the initial credits in the accounts of the several disbursing officers. In future transcripts the total of the debits and credits on each schedule of warrants and checks paid during the period covered by the transcript should be entered thereon. Respectfully,

R. O. BAILEY, Assistant Secretary.

OFFICE OF THE ASSISTANT TREASURER OF THE UNITED STATES, New Orleans, La., January 16, 1913.

The honorable the SECRETARY OF THE TREASURY,

Washington, D. C.

SIR: Relative to department Circular No. 5 (1913), Treasurer of United States, I have the honor to ask information relative to the course to be followed in putting into effect the instructions contained in paragraphs 1 and 4.

I infer that the disbursing officers will transmit to the credit of the Treasurer, through the medium of the general account of the Treas urer, the balances remaining to their credit as shown by their book on January 31, 1913, thus leaving to their official credit on the books. of this office balances equal to the amount of their checks outstanding and unpaid at that date.

In view of the fact that I am instructed in paragraph 4, to charge to the Treasurer's general account, all checks presented after Febuary 1, 1913, but dated prior to that date, what disposition will be