Evening Star Newspaper, February 26, 1928, Page 33

N U. S. TREASURY IS CLASSED AS GREATEST BANK IN WORLD As Chief Financial Officer, Secretary Has Supervision of Receipt and Disburse~ ment of $4.000.000.000 Annually. BY HARVEY E. FISK. Bankers' Trust Co. New York. » tast of A& series of four art The first article. Jinto existence by {the Bank of Massachuset o | the Bank of New York in New York and the Bank of Maryland in Balti- more. It would scem probabl> that pre- I | vious to the organization of banks, es - | pecially in the later colonial period. the | leading merchants to some extent must {have performed banking functions or accommodated their brother merchants | with the exchange facilities needed in Revenu he thind _article. pres " was Dublished How many of us know that the United States Treasury Department is the greatest bank in the world and that | making their settlements abroad. Agais the Secrctary of the Treasury prob- |there must have been some interchan ably has greater power and greater re- | of credit facilities between the me sponsibilities than any bank official in |chants of the different colonies. other- | the world? This is true both as to|Wise it is hard to conceive how the the amount of money received and dis- | business of those somewhat primitive ; bursed and in connection with the communities could have been carried ol handling of the Nation's finances by | Brought about by the need for ban| the Secretary of the Treasury, his in- | ing facilities on a considerable scale, fluential position as & member ex officio | Alexander Hamilton lald before Con- of the Federal reserve banking system | E7ess on December 14. 1790. his notable of the Federal Farm Loan Board and | Feport on a National Bank. In this| i {report Hamilton sats forth the need | | January ey for credit facilities and explains how O T T aaiind by (hy | they can be met and concludes by department of the Treasury. | ommending the organization of a bank As the chief financial officer of the for this purpose, ta be under Govern- Unlted States Government he has|Ment auspices. ‘with capital provided | supervision of the receipt and disburs Dt mohei i T b ment annually of around $4.000.000.090. it P“bf;fd O s el which gives him power {0 exert a great | MORRECC By 8 BOtid O fhadand o influence for good o evil over business ; lected by the stockholders, ' The pian condition throughout the country. If| ‘Q’d‘,‘g"r;‘“'{""';’:““"}m"mg“‘r°“‘\,h“‘:; :‘(“,“ e e e O aioa {hs | BARK of England functions. this being | il ““‘"“‘_ ‘l“ p R e form of | & private corporation operated, how- T 0 e e rendered and | CVeT. in close touch with the Govern- pas :‘“;pu:g ;}'r‘l;;‘; vaet Amount of Mment and almost as a branch of the Toney will proceed smoothily and quiet- | inance department of the Govermment. | Iy without disturbiny the trend of af- ;o “reanized without opposition, but | fairs. On the other hand. an incf-' g Bine o | et Secretary or one Mifferent 1o | INAUT I catoe into being oo December | The welfare of the public may handle | 13 1101 with & copital of $10.000,00 se coll ns. tisbursements N | tha Uni ¢ % o T e e L T people Unless such operations 8I¢|{o make this subscription. it was in-| S thedu o) e i rraarle‘f‘""é““‘“"'",,’"“d"n’d IDRUNE ankanonld £2 - len 0 3 Ve 3 b amount | msy bte made to fluctuate in vnlum:.neccssary its participation, the to such an extent as to cause not/gyms so'lent to be repaid in 10 annua only annoying changes in interest rates | jnotaliments. Thus the subscription of | but nay Tes: dislocation | the United States Government did not of the financial str jat first contribute to the capial re-! try. | | sources of the bank, but it did give! The Federal Reserve Board controls|the pank the prestige of having the Ensienenstions r?n‘rg‘:; ‘I-;«;gc{;le xq ,Go_}:mgmn{ itseif asa su]‘ckholdcr, Banks and is cl < y e bank was made sole depository Secping the volume of credit in thes | of ‘governmental funds and given. the reservoirs at such levels as to accomo- | sple right of issuing circulating notes: | date the various sections of the country | that s so far as the Federal Govern- |t which they serve. Every communityiment was concerned. It could not in- |\ in the country, nd matter how small. ! terfere with the rights of the may bave its affairs injured or helped. | organize banks which could i dopencing on the management of the|cylating notes. The bank was chartered Padera' Recorve Board at Washington | for a period of 20 vears and operated and of its local Federal Reserve Bank. ! for that perind. AL the end "o this & - time it wound up its affairs and went Ccuntry’s Business Huge. lout of business, because, influenced by | Last vear the business of the COUNYTY. | the jealousy of the State banks. which | #s measured by the volume of transac-|py that time had increased very much tions of the banks connected with the |y yumber, Congress refused to renew | Federal Reserve System in about 260 jts charter. Then followed a period | Jeading cities of the country, totaled |quring which the Federal Government $708.820,000,000. The total resources yas compelled to depend on the factli- ©of the Federel Reserve Banks on Decem- | ties afforded by the State banks for Der 28, 1927, amounted to $5.333,833.- handling its receipts and disbursement 000; while the resources of the 9.099 and the country as a whole was de. member banks, that is, National banks, | prived of the advantages of a currency State banks and trust companies Which | jssued by a central bank and was com compose the system and together oWn |pelled to use the currency of the vari- IR the '131.171.000 stock of the Federal ous State banks, some issues of which | Reserve Banks, aggregated at the endof | were good and some decidedly other-|R the fiscal year June 30, 1927, $42.810,~ ' wise. ~This state of affairs was so un- | \\ 192.000. | satisfactory that in 1816 Congress char- | The total amount of money in circu- |tered the second Bank of the United | lation in the United States on Decem- | States, which was nct as well manag>d | ber 1. 1927. amounted to $4.845.312.000. as the first bank. especially in tis OF this vast sum $4.124.211.000 was in |earlier history, when it very niearly be- | the form of notes of some kind. This came involved in serious financial dif- compares strangelv with the first 155‘:: | ficulties. T 000 in >r money made | o O et o the Dnited States. In | ARdrew Backssn's {Regine. 1690 the remnants of a little army of | When Andrew Jackson became Presi- the colonists of l!-lehk\:flfls 3'3 ‘(‘,‘; | dent in 1829 he determined to do a¥ay s St e Boston | With the Federal Bank, but in order to, @laheartened and defeated, clamored to|accomplish this, as the bank had B¢ paid offand allowsd: to return to | charter tighta to yun untll 1906, 1t was their homes to renew their former ac-| :‘hzmm' W,Pg‘“ m: i et tivities. The treasury was empty and in | (3¢ TORNT D (08 U B0 ana e et & ?:gsds,;';d L.,.';hd‘,"n!e!y handling the Government funds. | e O opad by printing bills re- | After a bitter fight in which he com- | bt .';"'.""""’m o %iae made payable |Delled the resignation of two Secretaries, | t ‘Deaser, which thus would circulate | President Jackson found one who took |\ Sron ihand Softisnd. At thistime apart | Ehe position which imede 3t lawiolly § {rom B origines. the whole popula- | Possible to withhold and withdraw the | from the aborigines L o New England Covernment deposits, with the result | ton of What are e e people of Ut al the expiration of the charter ,Shb: ;mf:‘;:‘uéu;eflu tretching south | the benk lost its prestige and standing 2 thousand or more miles numbered not |48 & Government bank and was com; o_exceed 125.000. g:nnsylvam € fnally becoming insol.- | This experiment of Massachusett | vent. " Although President Jackson had | Seems L0 Bae K me Jaea ‘spread |D0_authority” under the Constitution | e colonies that the means to | 9recty to interfere in the management | ibisg ftustions could be Of banking affairs, yvet by dominat s S bank of money; the Dis Secretaries, he brought about un g 8 i the senss of | tzntionally. by the way in which he RN bundie. It Was some years handled the Government monics, a ||\ o me period of wild speculation in banking, | ;e"‘;?' FC“;‘ o i in the mod. | CAUSINg the organization of country D e trmn wa% establish~d in | anks for the purpose of getting Gov. v m”" e of fiat | Crnment deposits or for the purpose of | ey Ciew pate - |lssutng money. ' This i an fllustration | it e 10 ntes were | O e power ol e Becretary of the ing found that the colonia henge ‘and | TTE8SUrY to influence the aflairs of the B e O e of "pubiic | COUNtrs for good or evil, depending upon | Yo RS e more and more en-|Dow ‘he handles the Government | b : becams o Zinances i smored with e e A o Teri:| The situation went from bad to worse : N “;;8 :ans 5 ;i s tfllui- prop- —there was a great speculation in || erty and bullding homes, Consequently, | Sovernment lands because they could | ehen, the 13 colonies found themselves | 0¢ DOUght very cheaply and paid for | 2t war with the mother country lhm':;,&V;zvwg’(‘h“:;“:!’h;(rrh-lna.:he ’m: el 2 s come had | B e Ko e 10 be collected In all parts of the coun 3 4 % /1Y, there was no central point of re demption and the Treasury as wel | the public met heav through Against Paying Tazes. :;‘! 5 lu{lh;;% 'lr)lmr on the ts 2ppeale them beca: bt . which one of the e iy ';'”':,‘M % e most_severe commercial crises through tayes, not alone 1o the moth \\»hlrh the country has passed and it slmost wholly due to ths misman ment of the Government's fingnre during the regime of Jackson The reaction from this state of affairs was' the development of n strons | b | i ¥ ing their The separate colonies were ey vould Government endangered by denositin; benks of unequal © This resulted In the subtreasury sy inder which all G [ expense of t weretore. resort v g .4 of paper money v sich an extnt that 5 five S0 ORR us modified during Include greenbacks tes and other bil's Congress nosited in th ency had been s Ir 9 the oontin al cur wey no longer hed sny purch Power and faded out of signt be of barter sh uits of clof wa horied | These receipts wire a-- ts of the Uniteq :‘J'Al‘s “Treasu / Department at Wash - inglon or in the subtrensuries estab- | j | lshed In s few of the leading citics |t o whish gt UnUl required 1o meet governmental | IA”" that for expenses. he Government receipts | ! as | W€7€ handled in this manner until tie ablishment of the Federal Jieserve #tem in 1913 “Greenhacks” Imued, | As @ war measure, in 1662, the Goi- Coernment Issued circuleting notes known ! a8 “greenbacks " which reached u maxi- 1 heosprois DO pum of $447,000,000 1n 1554 FYrance unloafed from the French war- a #rip Magicisn and transported from | owton, uveriand v Philadeiphis in % outs gusraed by Continental soldlers | yoceeding with his polley by u srre Orie of the tcks 1 which WAshing= | Current of public opinion wiieh crymal von 't government early wadressed 15€18 L lied i congressional action 1 18 was V) arrange a monetary system 107 foridding the further reduction in the toe couniry. This was dore under 'he | amount of notes outstanding | guidence of Weshingon upon the L In 4873 and 1674 the yol, yecommendation of Thomas Jeflerson | greenbacke outstanding was ine | €16 ouwers s Lhe leadership of ALCX- |G, §382.000,000 by the acts of fiecrein. | ender Hamilon Breaking swhy 110m | yiey Boutwell and Richardson Con . b system of pounds, sl | yress then fxed the tital issue at this #. the new Coj r\u.w.un {mmount By subsequent legislut by | 5 Sncil Sprien | 1878, the wmount of notes outstanning ul lhat Uime were 18- g again been reduced, this time to | .'4.?,':, ,'- "":,’““; .L’v" 440,681,016 Congress by the act of | B gir e Targer nnn, oes | May 31, 1878, forbade u further redue- | for Uy [ ton nthe smount of notes outstand- o |k Bnd required st when the notes | were yetired by belng piid i for Go eroment dues or otherwise they should | he again retssued. s that the (otal the penpie peversl years the people got along best they might with Spanizh silv 1isk and other foreign Coins The first bar America was sonerics North | Mot egen In 1866 1887 Gecretary McCullough sub- ntally curtailed the umount of notes nding, but wes prevented from 3nge B0 5 of Brates ud 00 w50 By #nall Chenge fuctory experience during \he Juevo Lon with tbe use of paper money no | Pouces {amount in cireulation would be nain- .",".:;”:7:':;::: ‘:t ‘:m :’:::1 '65.'3” masy | tained st the sum mentioned ahove "I sddition Lo Morris’ Bank of North | _In the third year of the war in oide daperics, tsee olier Lanks haed come (Continued on Eleventh Page.) 27777777 77277777, es to [N ue cir- | § N, D. C. FEBRUARY 26 1928-PART 2. ZNATIONAL FURNITURE CO. 7TH & H STS. N.W. LAST 3 DAYS of te NATIONAL’S Unprecedented Value-Giving Event—Our Greatest Sale With Lowest Prices and Terms to Suit Aii! February Furniture drawers, dresser and French vanity as shown here. To -SSR Handsome 4 look at the suite one would ished in a rich shade of wal- never suspect that it sold $87 .20 nut. Includes bed. chest of for so little. Regularly $115. $5 DELIVERS THIS SUITE Four picces of sound con- struction and much charm. Made of gumwood and fin- \’alnut Veneer Dining Room Suite H andsomely finished, of Oblong F\l';r .ml 'I’-;l f i ble, large Buffct. close i e $1 14-6 Server, China Cabinct, H i === Armchair and five Side site solves vour dining —— Pl ::v:wx; r,r.:anmA Consists Chairs. Regularly $139.50. veneer, this 10 piece 35 DELIVERS THIS SUITE Folding Card Table $1.19 No Phone Orders long Settee, Table and End T mahogany : ook Erds Fernery $2.77 No Phone Orders Fiber Stroller $11.74 $1 Down and o e F. <. 3-Piece Duofold Bed-Davenport Suite Covered in imitation $ 69 hour service to this one this suite conceals a full- 49' are also included. Regu- size bed, which gives 24. larly sells for $7500. leather, the Davenport of piece. Chair and Rocker $5 DELIVERS THIS SUITE T T — o i e S L i 3-Piece Metal Bed Outfit A fine, inexpensive out- e e Ieal for fitting EASY TERMS fit, comprising continuous. post Metal Bed, comfort- ble link Spring and sanitary Mattress. Regu- up the spare guest room, Wing Chair and Club Chair, upholstered in velour; Davenport Bridge 3-piece Con- sole Sect with every purchase from $25 to $49. desien, with every nur- ehane from £100 to S0 RBridge and Shade with every purchase amounting to §50 and up to 26-plece Silver Service with every purchase ranging from $75 to $99. B = amp One of our finest suites —just as pictured, with Row-end Bed. large Dresser, full Vanity and Chifforobe. ~ Attractively $5 DELIVERS THIS S 13-pives Alnm. inom set with every war (hase of 8150 or aver 9x12 Mottled Axminster Rugs, $24.74 9x12 and 8.3x10.6 Velvet Rugs, $23.93 9x12 Tapestry Rugs....... 27x54-inch Axminster Rugs....$1.98 9x12 Congoleum Made Rugs. .. .$7.95 27x54-inch Rag Rugs $14.94 The popular Tudor period design is carefully brought cut in this 10-piece suite, consisting of oblong Exten. ) *9 DELIVERS ANY SINGLE PIECE 7~ > A il _; 4=Pc. Walnut=Veneered Bedroom Suite 1124 designed and constructed. Genuine Walnut Veneer over Solid Gumwood, with gold line decora- tions. Regularly $144.30. UITE sien Table. large Buffet. in- closed Server, dainty Chima Closet and 6 comfortable rs. with genuine leather se: Regularly $149.00. $5 DELIVERS THIS SUITE immons Day Bed $15.90 S1 Doun 16-Piece Overstuffed Living Room Out. [able, nicely finished in Lamp and Shade; Table Secarf; Metal 397 .80 Smoker: 3-pe. Console Set. Console Ta- ble and Mirror, finished in mahogany. Sixteen fine pieces that cre perfect!y matched! Regularly $139.00. Top-Icer Refrigerator $5.0 DELIVERS THIS OUTFIT 6 New Records and Console Phonograph $49.66 Phonograph nicely dec- orated and finished in mahogany. $1.00 Down Large Kitchen Range $49.66 Complete with warm- ing shell, six-hols top—a splendid value. $1 a Week it B T i R i 2 Nicely made and finished. $11.89 $1 Down N ATIONA FURNITURE CO. —_ A Bar Harbor Chair Strongly made and in natural finish. $2.49 No Phcne Orders e, N\ \ S 3-Piece Velour Bed-Dav Here is a suite that Blends perfecthy with any harmony scheme. Upholstered in fine quality velour, with N\ 0\ \ FENLANY e . . Kitchen Cabinet Offering all the new Dandy 3 i $23.60 EASY TERMS lahorsaving features, X - $19.45 $1.00 Down special oured for this sale! Con. sists of Settee. Armchaie Rttt o i g it i i L 7th and H Streets N.W. TEETRITISSEILLTIRILLEL TRSLILLLILLL $5 Delivers This Suite Gas Range burner, white led door pa . Regular enport Suite genuine coil springs. Consists of Bed-Daven. port, Armchair and Rocker. Regularly sells for $155.00. M I Nt bl Suite and Rocker. as shown. Strongly made of fine Aber and nicelv in Daronial browa. % 7 727 2% 7 27 Y 24 2277