national-bank depositories there might be in this city, proceed to other nearby cities, repeating operation at each institution, and before checks would reach Washington and be audited a practically unlimited amount of money could be secured. Again, the clearing-house rules, subscribed to by the bank's members thereof, and agreements at present in force between clearing houses and other Subtreasuries, as well as one drawn up and informally agreed to by this office and clearing house, require notice of return of checks being given at certain hour each day. Under new system it might be at least several days before a check's final payment could be positively ascertained, and, if unpaid, there is no provision for reclamation. It would appear to undersigned that first portion of paragraph 8 is inconsistent with the preamble, in that former contemplates assistant treasurers accepting deposits on account of revenue, whereas latter states that such deposits ("daily receipts of the Government," which includes revenues) shall be placed with national-bank depositories. It is presumed that in formulating this order account has been taken of fact that banking institutions will send Government checks and warrants to locality where exchange is needed, thus avoiding on their part shipping of currency and consequent expense. If, for instance, Chicago exchange is at a premium the tendency will be to forward all Government checks to that point, thus compelling the department to ship funds there to meet payments. In substance, the Government will be at expense of maintaining exchange throughout the country at par. To avoid such contingency suggestion is offered that there be printed on checks about to be issued the words "Payable only at nearest national-bank depository or Subtreasury." This is to be enforced if it is observed that advantage is being taken to use Government checks for exchange profits. In order to relieve the New York or other Subtreasury from a possible receipt of all checks-when exchange is desirable-it is suggested that 15,000 or 20,000 pension checks might be diverted to this office monthly if stamped "Payable at Philadelphia Subtreasury," without conflicting with circular under consideration. If the Secretary should see fit to amend the circular letter to permit this diversion or to restrict the payment of checks and warrants to the nearest Subtreasury or national-bank depository, the manipulation of Government paper for exchange purposes would be avoided, if thought desirable. Respectfully submitted. W. HOWARD GIBSON, Assistant Treasurer United States. TREASURY DEPARTMENT, UNITED STATES SUBTREASURY, New York, N. Y., February 3, 1913. To the honorable the SECRETARY OF THE TREASURY, Washington, D. C. SIR: Referring to paragraph 7 of department Circular No. 5, with reference to credits to disbursing officers, I have the honor to ask if in cases where a disbursing officer desires to place funds to the credit of several other disbursing officers to whom he supplies funds, whether such transactions should be carried through in this office or referred to the Treasurer's office in order that the transfer of credits may be made there? A case in point is where Maj. William B. Rochester, Quartermaster Corps, transmits his check for sums to be placed to various quartermasters of the Eastern Division. Two such deposits offered by Maj. Rochester to-day were accepted as the officers to whom the funds were credited required immediate credits. Very respectfully, Acting Assistant Treasurer of the United States. FEBRUARY 5, 1913. The ASSISTANT TREASURER OF THE UNITED STATES, New York. SIR: Replying to your letter of the 3d instant, relative to credits to disbursing officers under paragraph 7 of department Circular No. 5, dated January 9, 1913, you are advised that where one officer desires to place funds to the official credit of another officer the amount of the deposit should be credited by you to the Treasurer's general account as a transfer of funds and certificate of deposit issued therefor as directed by paragraph 9 of circular letter dated January 18, 1913, copy inclosed. A separate certificate should be issued on account of each officer to whom credit is to be given. Respectfully, R. O. BAILEY, Assistant Secretary. [Telegram.J TREASURER UNITED STATES, Washington, D. C.: NEW YORK, January 31, 1913. Oak twenty ninth please bad banns transferring balances scale zip hurry. HALE, Acting Assistant Treasurer. Referring to mine of the 29th please advise by wire with reference to transferring balances transfer account and post-office account. TREASURY DEPARTMENT. UNITED STATES SUBTREASURY, New York, N. Y., January 29, 1913. To the TREASURER OF THE UNITED STATES, Washington, D. C. SIR: I write to ask whether it is intended that the balances standing to the credit of the Post Office Department and Treasurer's trans fer account, respectively, shall be transferred to Treasurer's general account at the close of business January 31. This inquiry is made for the reason that department circular No. 5 does not seem explicitly to cover these two accounts. Your reply before the close of business January 31 will be appreciated. J. W. DALE, Very respectfully, Acting Assistant Treasurer United States. JANUARY 30, 1913. The ASSISTANT TREASURER UNITED STATES, New York, N. Y. DEAR SIR: Replying to your communication of the 29th instant, addressed to the Treasurer of the United States, you are advised that the balance standing to the credit of the Post Office Department is to be transferred to the Treasurer's general account at the close of business January 31. The Treasurer's transfer account is not to be transferred at present. You will receive instructions as to the disposition of this balance and the method of handling the new "cashier's check " within a few days. Very truly, yours, R. O. BAILEY, TREASURY Department, UNITED STATES SUBTREASURY, New York, N. Y., January 17, 1913. To the honorable the SECRETARY OF THE TREASURY, Washington, D. C. SIR: Referring to department circular No. 5, in relation to the new method of paying checks, with reference to paragraph 11, "These regulations do not apply to postal funds," I have the honor to ask whether the disbursing account of the New York post office will continue to be kept at this office. This inquiry is made at the request of the postmaster of this city. Very respectfully, J. W. DALE, Acting Assistant Treasurer United States. JANUARY 18, 1913. The ASSISTANT TREASURER UNITED STATES, New York, N. Y. SIR: I have your letter of the 17th instant, in which you ask to be advised whether, under instructions in Circular No. 5, the disbursing account of the New York post office will continue to be kept in your office. You are advised that the last paragraph of the circular mentioned provides that these regulations do not apply to postal funds, except post-office warrants. The disbursing account of the postmaster in your city will therefore continue to be kept in your office. Respect fully, R. O. BAILEY, Assistant Secretary. TREASURY DEPARTMENT, Chicago, Ill., January 28, 1913. To the honorable the SECRETARY OF THE TREASURY, Washington, D. C. SIR: I beg to acknowledge receipt of your telegram of even date. received after the close of business, as follows: "Your office number to be stamped on paid checks is two hyphen twenty." Respectfully, F. C. RUSSELL, Acting Assistant Treasurer United States. [Telegram.] TREASURY DEPARTMENT, PUBLIC MONEYS DIVISION, Washington, January 28, 1913. ASSISTANT TREASURER UNITED STATES, Chicago, Ill.: Your office number to be stamped on paid checks is two hyphen twenty. TREASURY DEPARTMENT, BAILEY. [Telegram.] CHICAGO, ILL., January 27, 1913. Washington, D. C.: Please wire number for designation of this office so that stamps required by paragraph 5 of circular of 18th instant, supplementary to department Circular 5, may be prepared and ready for use 1st proximo. RUSSELL Acting Assistant Treasurer. [Telegram.] CHICAGO, ILL., January 28, 1913. TREASURY DEPARTMENT, Washington, D. C.: It is claimed that the local depositaries are not active depositaries and that instructions contained in department Circular No. 5 do not. apply to them. Should not these banks pay all Government warrants and checks presented to them on and after February 1? This office understands that all banks on list furnished by Treasurer United States January 15, 1913, are active depositaries. RUSSELL, Acting Assistant Treasurer. The ASSISTANT TREASURER UNITED STATES, JANUARY 30, 1913. Chicago, Ill. DEAR SIR: Replying to your telegram of the 28th instant, you are advised that Treasury Department Circular No. 5 applies to all national banks which have been designated as active depositaries. The only banks excepted are those designated as special depositaries; that is, those having a fixed sum on deposit which is not increased or decreased from day to day. (See par. 1 of circular letter of Jan. 18, 1913; copy inclosed.) Respectfully, yours, R. O. BAILEY, Assistant Secretary. TREASURY DEPARTMENT, UNITED STATES SUBTREASURY, To the honorable the SECRETARY OF THE TREASURY, Washington, D. C. SIR: I beg to confirm telegram to you of even date, as follows: Please wire number for designation of this office, so that stamps required by paragraph 5 of circular of 18th instant, supplementary to department Circular 5, may be prepared and ready for use 1st proximo. Respectfully, Hon. R. O. BAILEY, F. C. RUSSELL, Acting Assistant Treasurer United States. TREASURY DEPARTMENT, UNITED STATES SUBTREASURY, Boston, Mass., February 1, 1913. Assistant Secretary of the Treasury, Washington, D. C. SIR: I am in receipt of your letter of the 30th ultimo, in which you state that the department expects to adopt some protective plan to check up disbursing officers' balances, based in accordance with the suggestion contained in my letter to you of January 24. Certainly some such plan must be comprehensively developed, as the responsibility of the payment of overdrafts as at present outlined is so divided as to appear unsatisfactory either to the Secretary's or the Treasurer's office. SIR: Referring to my letters of January 21 and 24, together with the partial reply contained in the letter of the Hon. R. O. Bailey, dated January 22, and department Circular No. 5, dated January 9, I beg to say that this office will endeavor by all possible means to carry out, with full protection to the interests of the Government, the definite orders issued by your direction and contained in para |