the honor to confirm the understanding reached at a conference held last evening between Assistant Secretary Bailey of your department, Third Assistant Postmaster General Britt, and myself as to the conditions under which your proposal is agreed to by this department, as follows: First. That the change in regard to postal deposits and drafts shall relate to excess funds only. Second. That when there are two or more designated depositaries in a place the Post Office Department shall have the right to say at which bank the deposits shall be made, as hitherto. Third. That all drafts or warrants in payment of postal obligations shall be drawn on the Treasurer of the United States. Fourth. That postmasters shall deposit all excess postal funds in the bank or banks which they use as depositaries to the credit of the Treasurer of the United States. Fifth. That the various banks of deposit shall be instructed by the Treasury Department to forward to the Post Office Department duplicates of all certificates of postal deposits. Sixth. That all depositary postmasters shall be instructed accordingly. Respectfully, FRANK H. HITCHCOCK. FEBRUARY 15, 1913. MY DEAR MR. POSTMASTER GENERAL: I would appreciate it very much if you would send me a letter signed by yourself indorsing the new plan of handling postal funds, exclusive of the postmaster's personal account in banks, as understood by yourself, your Mr. Britt, and Mr. Bailey at a recent conference held in your office on that subject. From correspondence which the department has received since the conference, it is evident that a full working understanding on this subject does not exist. Part of the main feature of the new plan, as it affects postal funds, is that postmasters, instead of transferring their excess funds to subtreasuries, will deposit them with a depositary bank and take a deposit slip. These funds then go into the general account of the Treasurer of the United States and are available to meet your checks wherever those checks may be presented. The plan relates to nothing but the excess funds, as you know. Very sincerely, yours, FRANKLIN MACVEAGH, Secretary. Postmaster General. Hon. FRANK H. HITCHCOCK, [Cablegram.] TREASURY DEPARTMENT, Washington, January 30, 1913. TO PECK, Cashier Honbank, Honolulu: Circular 9 amended until further notice. Hawaii and your bank treated like Philippines under paragraph 10. Inform disbursing officers. MACVEAGH. [Indorsements.] TREASURY DEPARTMENT, INTERNAL-REVENUE BUREAU, February 27, 1913. Respectfully referred to the honorable the Secretary of the Treasury (Assistant Secretary Bailey) for consideration and answer if necessary. Accountable warrant No. 8232, dated February 5, 1913, in the amount of $760 was issued and the amount placed with the Treasurer of the United States to the credit of Collector Cottrill. R. E. CABELL, Commissioner. TREASURY DEPARTMENT, OFFICE OF ASSISTANT SECRETARY, February 28, 1913. Respectfully referred to the Treasurer of the United States, who will transfer to the collector's credit with the First National Bank of Hawaii the $760 now held to his credit with the Treasurer of the United States. Circular No. 5 of January 9, 1913, was amended by cable to the First National Bank of Hawaii on January 30, excepting Hawaii and the First National Bank from the provisions of the circular. (See copy of cablegram attached.) [Cablegram.] COMMISSIONER INTERNAL REVENUE, R. O. BAILEY, Assistant Secretary. HONOLULU, January 30, 1913. Washington: Local depository says Circular No. 5 of January 9, 1913, has been amended. Shall we continue as heretofore in the matter of disbursements? Please answer by cable. COTTRILL, Collector. [Indorsement.] TREASURY DEPARTMENT, INTERNAL-REVENUE BUREAU, January 31, 1913. Respectfully referred to the honorable the Secretary of the Treasury (Assistant Secretary Bailey) for answer. R. E. CABELL, Commissioner. [Cablegram.] COMMISSIONER INTERNAL REVENUE, HONOLULU, February 26, 1913. Washington: Received notice of credit of $760 from treasurer last instructions cablegram January 31 from Assistant Secretary Bailey, local depositary continuing as heretofore. Please advise. COTTRILL, Collector. Fifth District of Illinois, Peoria, Ill. SIR: Replying to your communication of the 3d instant, addressed to the Commissioner of Internal Revenue, you are advised that stubs of checks issued by you should be retained in the files of your office. With reference to the matter of erroneous payment, your letter indicates the correct method of procedure-namely, that in case of an underpayment to draw an additional check for the amount of the underpayment; and in case of an overpayment to collect the amount and deposit the cash with a local depositary to the credit of the general account of the Treasurer of the United States as a transfer of funds to be placed to your credit with the Treasurer of the United States. (See par. 7, Treasury Department Circular No. 5, dated Jan. 9, 1913.) Canceled and spoiled checks should be retained in your files for the present. Instructions for the disposition of such checks will be issued at an early date. Respectfully, C. S. PEARCE, Assistant Treasurer United States. TREASURY DEPARTMENT, INTERNAL REVENUE SERVICE, OFFICE OF THE COLLECTOR FIFTH DISTRICT OF ILLINOIS, Hon. R. E. CABELL, Peoria, Ill., February 3, 1913. Commissioner Internal Revenue, Washington, D. C. SIR: I have the honor to inquire whether the stub books which had contained the checks on the Treasurer of the United States, after said checks had been signed and disbursed, should be returned to the Treasury Department; and if so, to whom? I desire to further inquire what steps should be taken when an error is made in payment. It would seem that if the check is drawn for an insufficient amount that an additional check should be drawn, but if the check is drawn. for a greater amount than is due, what method is to be pursued? Because of an officer when taking his vacation was compelled to take into consideration his having served as both storekeeper and gauger at different times a slight error was made in the amount to be received each day of such vacation. The amount arrived at would be $4.974 per day. In December the officer took two days' vacation, but charged $5 per day for those days as well as for the days worked. He was therefore paid 5 cents in excess. I will deposit this amount to the credit of the Treasurer of the United States, furnishing certificate of deposit for the same. Please inform me if that is the method to be pursued. Sometimes it may happen that an error will be made in making out a check. May this check be marked "Void" and another check issued in its stead? I have cautioned the deputy in charge of the pay rolls, who makes out these checks, to use extreme care, but still errors may creep in and I desire to know how to handle the matter. I have one check where the wrong name was inserted, and I have marked this check "Void" and issued another in its stead. Shall I retain these canceled checks, if any, and return them with the stub book, or shall I destroy any that are canceled? Thanking you for the information in this regard, I am, P. F. P Collector. TREASURY DEPARTMENT, OFFICE OF THE TREASURER OF THE UNITED STATES, Washington, February 13, 1913. ASSISTANT TREASURER OF THE UNITED STATES, Chicago, Ill. SIR: With reference to the list of disbursing officers' balances credited in your transcript of general account for the 31st ultimo as a transfer of credits to this office. it appears that $49.22, reported as the balance to the credit of H. W. Bishop, master in chancery under the Department of Justice, should not have been transferred. You are therefore authorized to debit the general account with this amount as erroneously transferred to the Treasurer of the United States," with reference, by date, to this letter in your entry, and place the amount to the officer's credit and subject to his check. TREASURY DEPARTMENT, Washington, D. C.: You are informed balance Secy. special acct. No. 3 was transferred over Jan. 31st. Also balance board of trustees' postal savings system to Treas. U. S. Is it correct? FEBRUARY 10, 1913. ASSISTANT TREASURER UNITED STATES, Cincinnati, Ohio. SIR: This office is in receipt of a telegram from "Barrett," Acting Assistant Treasurer, dated February 8, 1913, stating that on January 31, 1913, the balance of Secretary's special account No. 3 and the balance of the board of trustees' postal savings system were transferred to the general account of the Treasurer of the United States, and asking whether such action was correct. In reply you are advised that the balance of the Secretary's special account No. 3 was properly transferred to the credit of the general account of the Treasurer of the United States. The balance to the credit of the board of trustees' postal savings system should not have been transferred. You will therefore make a counter entry in your transcript, transferring such balance from the general account of the Treasurer of the United States back to the credit of the board of trustees' postal savings system. Respectfully, C. S. PEARCE, Assistant Treasurer of the United States. TREASURY DEPARTMENT, OFFICE OF TREASURER OF THE UNITED STATES, ASSISTANT TREASURER UNITED STATES, New York. SIR: In your daily schedule of warrants and checks for February 7 the following checks, drawn by Wm. B. Rochester, major, Quartermaster Corps, were included: Nos. 962556 for $755, to be placed to the official credit of G. B. Lawrason, and 964777 for $77.30, to be placed to the official credit of P. L. Smith. Hereafter such checks should bear the following indorsement on the back: Credited in the general account of the Treasurer of the United States, as a transfer of funds to be placed to the credit of the payee. C. S. PEARCE, Assistant Treasurer United States. Respect fully, C. S. PEARCE, Assistant Treasurer United States. TREASURY DEPARTMENT, OFFICE OF TREASURER OF THE UNITED STATES, Washington, February 15, 1913. ASSISTANT TREASURER OF THE UNITED STATES, New York, N. Y. SIR: There is inclosed herewith check No. 70742 for $18.45, drawn by Thomas W. Darrah, acting treasurer United States Military Academy, in favor of Ralph Irwin Grace. This check is drawn on you and should not be forwarded to this office for payment, since it is one of the accounts which was excepted by paragraph 2 of circular letter dated January 18, 1913. The amount has been deducted from the total of your schedule of the 2nd instant, and you are instruced to credit the amount $18.45 in your current transcript of the general account of the Treasurer S. Doc. 1136, 62-3-5 |