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' THE NEW BANKING LAV. ?
Iii ? ! III.?Our Independent Treasury. By Frederic J. Haskin. One of the most maligned features of our banking system has been for years our independent Treasury. Inasmuch as the independent Treasury is to be pre verved under the new banking and cur rency act. it will be of Interest to ex amine its relation to the banking situa tion and the objections which have been raised against it before proceeding with the consideration of the federal reserve act The independent Treasury was estaD lished In lS4rt. After the expiration of the charter of the second Hank of the I'nited States, the government adopted the plan of depositing its money In state banks selected by the Secretary of the Treasury. There followed an era of wild cat banking, during which many of the state banks collapsed. Then Congress devised the independent Treasury system for the safeguarding of the government s fundi*. Our Treasury is really a central bank of deposit, in which the government ' the only depositor, and from wh'^.*he!t ar, no borrowers. It is the custodUm of the government's revenues, the_ collection agency of moneys due to the TjnUed ?States' the supervisor of the national banking system, with direct control of the currency of the nation, and! t issues all legai tender and token money wun the exception of such bank notes as are issued by delegated authority by the na tional banks. F.ven for these " ? ?,.vfrnmt"it has a secondarv uarniu>. The Treasurv disburses government funds upon the order of Congress. * * * The 1'nited States is the only country of any commercial consequence to main tain such a U s. Only Country treasury iy? - 0 tern. The banks to Try the System. of t^e country have long contended for Its abolition upon the grounds that it was an and Inefficient way of administering nation s tlnances. They have elaimed that anv reform of the banking ?1,uat'?" should do away with the Treasurv, whose operations they have held seriously hurtful to the country business. This persistent agitation for the with drawal of the government from the bail - ing business has found strong ?>W?r the exemplary banking sy stems In ogu tiip ereat western countries ui Furone However, the wonderful financial growth of the United States has the force of the arguments of the OPP?" nents to the Treasury, for thehK?^,rnn_m*p! ha? undertaken to carry on banking op "t?early ^VuwaTa^JoU nNoS'important commercial country in western Europe has attempted n""* vears to engage In government banking, either as owner or shareholder of a com mercial bank, or as maintaining a sepa rate depositary for its own funds, or a. undertaking the issue and redemption circulating notes. * * * Notwithstanding the weight of foreign example, much may be counted in favor of our indepen- | Argument Made <*?>* v 6 not the least of for Treawy Plan whlch are the absolute safety of our money ??<> ?? unparalleled prosperity of our one drt-d millions of people. At all e e . Congress has seen fit to preserve the In stltution which has served the country for the last seventy years, and this ar gues that its advantages are xreaXeT than the disadvantages charged against It. Due of the principal objections whlcn ha- been made aga.nst the independent Treasury Is that It keeps vast amounts or money looked up in Its vaults, thus de pining the stores of currency left to the founttv for financing its business The; effect of ti.is withdrawal of money by the government from the channels of trade is ihe same as though thousands of peo ple should insist upon hoarding t.ieir sav ings instead of keeping them at work and > ? to deprive the hanks of their ability to ler l and the business men of their credit f. r procuring money wherewith to finance the r ation's commerce and lndustr>. Moreover, it is charged that the govern ment sequesters most of the nation s sto> e of "none' in it.- vaults during those peri od- when business has greatest need of a plentiful supply of cash. The income and j the expenditures of the government fluc tuate. While there must of necess ty be lu. ne relat on between them, no machln frv has been devised for keeping the net ? ce on hand in the Treas ury always Ibunt the sjme. One pair of congres ei-ma' committees prepare the bids for ra i c, sjovfrnn ent revenues. ^\h?lt oth r e? r r. iv independent committees prepare t> . b l!s for spending them. It thus ?ap_ n. r< that the Treasury has faced deficits o' hundieds of millions of dollars and in o*h-r \ ears surpluses of like amounts.. T . *rVat uncertainty of the amounts of ii.?nev which from year to year wilt be Withdrawn by th.- K-~.Tnm.-nt from the country's 9. pr > complained of as be.ng a grave detriment to business. The incorre of th*? government is de rive] from various forms of taxation, such as tariff du InCO:~;f Perived ties, internal reve rvAm ?p_ __4.;_? *>ue duties, cerpo From Taxation. rat on taxe8 an,j re<-?-nt!y. an income tax Many of these Items vary with the activity or depression of trade and business. In prosperous t!mes importations are heavy and incomes increase, with consequent increases :n the 8:;i'?unts derived by the government from Income taxes and customs duties. Thus in tin of brisk business the balance In ih- Tr.-asury runs up. On the other hand, rl. n business is dull the government's Income is light and balances in the Treas jjr decrease. This is directly opposed to the ? eeds of business. Tt Is when busi re?s is active that cash is most neces sary. When business istorpid money is a drug on the market. While this charge against the Treas ury is. no doubt, justified to a degree, nevertheless the Ill-effects of hoarding cash by the government have likely never been nearly as grave as they have |>een represented. In the first place, fig ures compiled bv ?he controller of the Treasury show that the relative amount of rnone lo-ked up In the Treasury has varied but slisrhtly during th?i period H#rj-lft12 In lf*?2. coin ami other money In the Treasurv as assets represented 12.24 per ivnt of the country's total supply. TU? percentage steadily decrease*! until. In if*12. yf** per cent of the country's money la*, in the Treasury vaults. I luring coin and other money in reporting banks was rated at .*V2.*S> per ^ent of the cvuntrv's supply, while, for the same year. O? per cent was left iri circula tlon. The amount of money in the vaults of the reporting banks has experience*! an almost steady increase since 10*12, th- percentage in 1912 being given a> 42 Mi. Furthermore, during the last decade steady effort has been made to eliminate the ntost glaring defencts from the Treas ury system. More liberal administrative regulations for facilitating the transactions of business men with the Treasury Depart merit have been adopted, such as allow fug payments t-> he made to the govern 11.em by certlfic l checks, and the depart n 1 ? r has endeavored to meet its gravest eritb-'sm?to the effect that it causes the tying up ot vast quantities of money? by depositing a very considerable amoun' ot ib iuimIs iii national banks instead oJ carrying them in its own vaults or in I the vaults of the subtreasuries. * * * It is safe to say that the defects of our independent Treasury have been much exag gerated. Change in Method and that such #Tr jr yy j evils as exist of Handling Funds h a v e b e e n greatly reduced by * a proceeding of the Secretary of the Treasury, taken in January. 1913, which made a de cided change in the method of handling public funds. This order provided that the daily receipts of the government should be placed with the national ban* depositories to the credit of the treas urer of the United States, and that dis bursements should be made by warrant or check drawn on the treasurer, but pay able by national bank depositories, as well as by the Treasury and subtreas uries. The new method of administering its moneys was adopted by the Treasury for the purpose of keeping the great sums of money represented in the government's revenues continually at the service of business. In his report for 1913 Secre tary McAdoo stated that "the system appears to respond to the public require ments. and to be accomplishing the pur pose for which it was devised." It has been complained that the dispo sition of Treasury funds in the national banks has been accompanied by unavoid able discrimination, some banks receiving government balances of many millions, while others have held only nominal bal ances of $1,000. Further, it is charged that political influence is brought to bear in securing these United States deposits. Lastly, the bankers have complained that banking is no part of the government's proper business; that note issue is a func tion exclusively belonging to commercial banks, who alone are in position to prop erly regulate the supply of money to the market demands, and that the United States has usurped these banking func tions at a great and useless expense. J. Bedenger Ruffner, a farmer, for merly a merchant and postmaster at Massanutten, four ?niles west of Luray, died suddenly. He was sixty-five years of age. SHIFTS IN CIVIL SERVICE Appointment*, Promotions and Hes itations in War Department Announced. Changes in the classified service of the War Department are announced as follows: Appointments under civil service rules: The adjutant general's office? Charles E. Simmons, assistant mes senger at $720; Edward C. Oxley, clerk at $1,000; Henry O. Martin, clerk at ( $1,000; Myron W. Peifer, clerk at $1,000; f Kenneth M. S. Johnson, clerk at $1,000; 1 Roy R. Critchtield, clerk at $1,000; Ralph E. Wilcox, clerk at $1,000. Office of the chief of ordnance?Francis W. Gavin, apprentice draftsman at $360; I. J. Falrchild, skilled draftsman at $900. Office of the chief of staff?Miss Pearl A. Putnam, clerk at $720; Mrs. Mary L. Brown, clerk at $1,000. Office of the Secretary of War?George W. potter, laborer at $660; Oscar H. Smith, assistant messenger at $600. Bureau of insular affairs?Ewell V. Smith, clerk at $1,000. Office of the chief of en gineers?Thomas J. Han Ion. clerk at $900. Promotions: Bureau of insular af fairs?Mrs. Sara L. Beck with, clerk, from $1,200 to $1,400; Logan Pressler, clerk, from $1,000 to $1,200. Office of the chief of ordnance?Robert E. Dennison, clerk, from $1,600 to $1,800; John J. Cook chief clerk, from $2,000 to $2,250; Edward J. Shoults, from clerk at $1,800 to principal clerk at $2,000; Harry H. K. Sailer, clerk, from $1,400 to $1,600; Everett J. Ellis, clerk from $1,200 to $1,400; John H. Lawrence, apprentice draftsman, from $480 to $600; William F. Beasley. skilled draftsman, from $1,200 to $1,300; Wilbur E. Yocum. skilled draftsman, from $1,300 to $1,400; Theodore H. Eickhoff skilled drafts man, from $1,500 to $1,600; Earle V. Thomas, apprentice draftsman, from $360 to $480; Mark E. Taj-lor. skilled draftsman, from $1,300 to $1,400: Thomas A. Conlon, from apprentice draftsman at $720 to assistant drafts man at $900; George M. McCann, skilled draftsman, from $1,200 to $1,300; James A. Campbell, skilled laborer, from $720 to $780; Wolcott E. Spofford apprentice draftsman, from $480 to $600; Harry C. Zimmerman skilled draftsman, from $1,600 to $1,700; Emil E. Honsberg, skilled draftsman, from $1,600 to $1,700; Logan Morris clerk from $900 to $1,000; Swan M. Kendrick, clerk, from $1,000 to $1,200. Office of the quartermaster general of the army: Leonard S. Doten, from civil engineer at $1,800 to hydraulic and sani tary engineer at $2,000; Peter M. An derson, electrical and mechanical engi neer. from $2,000 to $2,250; David E. Cohen, clerk, from $1,000 to $1,200; Otto L. Bremers, clerk, from $900 to $1,000; George W. Nold, clerk, from $1,2*H> to $1,400; Jeremiah J. McCarthy, jr.. clerk, from $900 to $1,000. Office of the Secretary of War?John L. McKenney, clerk, from $1,600 to $1,800. The adjutant general s office?Alonzo W. Shunk, chief clerk, from $2,<XH> to $2.2o0: S. W. Clark, clerk, from $1,0<K> to $1,200; George P. Stockett, clerk, from $1,000 to 51,200; Charles E. Gause, clerk, from 51,000 to $1,200; Alexander W. Wallace, clerk, from $1,000 to $1,200; William A. Risley, clerk, from $1,000 to $1,200; Mrs. Mary D. Hanna. clerk, from $l,00o to 51,200; Laurence A. Hurkhart, clerk, from 51.000 to $1.200; William W. Gibson, clerk, from $1.2<?0 to .<1.400; William B. Davis, clerk, from $1,200 to $1,400; John Vor koeper, clerk, from $1,400 to $1,000; Alonzo F. Getty, clerk, from $1,000 to 51,800; Frank A. Allmuth, clerk, from 51,000 to $1,200. Office of the chief of staff?Guy K. Fisher, clerk, from $1,000 to $1,200; L. Lawrence Elliott, from assistant mes senger at $720 to clerk at $1,000; Cassius C. Grant, from laborer at $660 to assistant messenger at $720; Earl E. Frederick, clerk, from $1,000 to J1,300. Office of the chief signal officer Foster Veitenheimer, from assistant electrical engineer at $1,800 to elec trical engineer at $1,800. Office of the judge advocate general?Caroline F. B. Whittemore. from copyist at $900 to clerk at $1,200. Resignations: Office of the chief sig nal officer?Arthur B. Crawford, clerk at $1,000. The adjutant general's of fice?Juan M. Herrero, clerk at $1,200; OLD DUTCH MARKET MIDSUMMER SPECIALS FRIDAY AND SATURDAY FRUITS AND vegetables 10c&?c& jr.ir, WatermelonsEsxh 10c Sweet Potatoes, Carolinas. 11 Q)C ' Cantaloupe. 25 C Per "4 peck !| Home grown. 6 for Yellow Globe Onions. Cooking Apples. 15c Per hi peck Per V; peck Celery, N. Y. State. Fancy Lemons. Per a talk I' Per dozen OQ ? P?r Fancy KTCll/ DHTATOFQ Fancy Per 90 mOC Peck Jerseys *? VY Iv/ 1 r\ 1 Jerseys Peck MEAT DEPARTMENT" BUTTER ST 32c || BUTTER ? ST 34c Smoked Picnics. 11 Corned Shoulders. 11 Ac Shoulder Spring ? ^ i? Lamb. Lb HOC Smoked Hams. 2?C ;iCres-'11 P*011^ Loins. 22c Spring Lamb. 22c Lb Lb |. Lb.. . 1>_... ... live pwDrlF" ~ Spring Chickens S;r 21c || Choice Fowl 18c HOME-DRESSED" poultry" Frying Chickens iber 24c Fancy Fowl Sr 20c Rib Roast Blade. j g^jj Chuck Roast. 17c P>lsre Lard. lie Lb ** w ^ j h Prime Rib Roast. l)l>r Smoked Sausage. 1] Ac Compound. T,b JdJdV*' jLb ___ Lard substitute, n lbs. for... EGGS 2SX52* !^2srrEGGS "is?0"1""* Rer 21 c jn peaied Cartons. DOZo Nearby Farms. DOZ0 ^ ^ Tfish specials stilt Water Trout. Halibut Steak. 18c i'er lb Red Fin Croakers. l^C 'Spanish Mackerel. Per lt> llt,r 1,1 Large Butterfish. lOc Salt Shad. 11 Fancy Bluefish. 15c Crab Flake. 30c Potomac Herring. fl .TV Norway Mackerel. ** ? r-... j- -iv. 1) T?#>r r]or c GROCERY DEPARTMENT Argo Starch S: ?' . 4c || Grape-Nuts Sf:is?.12^c Kippered Herring. &? \rgo Salmon. IfjC Macaroni. Ar < V> ^ . o - ci-jr Li . j 10c size i Domestic Sardines. 3%>C Metal Polish. Qq |a"d!r? _ ty/r (?lives. Plain. 1?C OtoSsSS: 25c ^"wXi^L"8 4C * 20c size ? _zei is Tor. ? ^ I La Herbert Dressing, ^ 8c I Van Camp Milk Can, Iced Tea Specials Pea Beans. 4^C 'ce<^ Coffee Specials Per lb Orange Pekoe !''lb 1 Oc t* Fancy Santos P ? nl F n I 1 Parowax, tyc A fine. rich swnt drink equal ^ = bodje^Tea. u?uaUy ^er,b . fl r. , .v.,it i.n- Tv-r ? ?n-tnn. 4 rakes. . lo^ny 30c coffee sold else- 25C Boyer's Shoe 7I-4(r Orange Pekoe ,, r,b. J0C pc;?s2,? ???_?-?? __ Tulip Blend '/&arCS. ?v 29cJeiio. , <<??^...2Sc wk30>c fWMjlr gold gOc lb. ^ . Keliogg's Flakes size.. Each 8c Gosman's GAi!er - 8c ivory Salt. [[Madison Peas. <p?||Champion Jam. Longfield Sauce. Quality Corn. Domino Sugar. jjg^ Heinz Pickles. Qc tomatoes. sc Umberto ?live Oil. . 10(. ran Trtr size Fruit Jars ? II RandalFVjSETlt~ 9c OLD DUTCH MARKET 930 La. Ave. N.W. .?42<i Ga. Ave. N.W. Sth and K Sts. S B. 311S 14th at. N.W. .".1st and M Sts. N.W. "th and H Sts. N.E. 1935 14th St N.W. 7th and Q Sts. N.W. 1105 TI St. N.E. 1778 U St. N.W. 7tli and B 8t?. N O. 1632 N. Capitol St XiiK m a ntjF KCOKOAir. THE MARKET OF CLEANLINESS Joseph T. Beatty. clerk at $1,000; Dan iel M. Keeton, clerk at $1,200; Fer nando E. Rodrigues, clerk at $1,200; George E. Graves, clerk at $1,200; Thomas A. Whelan, clerk at $1,200; Charles E. Currier, clerk at $1,200. Of fice of the chief of staff?Mrs. Eliza beth F. Long:, clerk at $1,000. Office of the chief of ordnance?August Da brasky, skilled draftsman at $1,200. Office of the quartermaster general of the army?Thomas P. Chapman, clerk at $1,400; Peter J. Carney, clerk at $1,000. Office of the chief of ordnance? Carl A. Heistermann, clerk at $1,200. RESERVE AMENDMENT PASSED. Enables Banks in System to Meet State Regulations. An amendment to the federal reserve act aimed to make it possible for certain state banks and trust companies to be come members of the federal reserve sys tem and still comply with certain state regulations regarding the deposit of their reserves was passed by the Senate yes terday. These state institutions will be permit ted, under the amendment to the law, to keep their reserves in such banks as re quired by the state laws. SIGN NICARAGUA TREATY. Bryan and Envoy Complete Canal Negotiations. Secretary Bryan and Gen. Chamorro, the Nicaraguan minister, have signed the treaty whereby the United States agrees to pay $3,000,000 to the Central American republic for perpetual inter oceanic canal rights and naval bases in the Gulf of Fonseca. The treaty is framed along lines Mr. Bryan has outlined to the Senate for eign relations committee, and is taken to have the approval of that body. SOCIALISTS DENOUNCE WAR. Speakers at Petworth Deprecate the European Conflict. Socialist speakers, including J. K. White and William Mahoney, made speeches in deprecation of the European war yes terday at a meeting held in IJbbey Park, Petworth. Another meeting of socialists is to be held tonight at Sth street and Pennsyl vania avenue, when Miss Jeanette Ger shanick and E. E. Rogers are expected to speak. " ? lnr"~ ? T WfHEN you want ? sympathy an'con s'lation without any "I told you so," you'll find it in a pipe of VELVET. You'll find rent friendliness" in VELVET, The Smoothest Smoking Tobacco, Kentucky Barley de Luxe with an aged-in-the-wood mellowness. Full weight 2 oz. tins, 10c. IL IDC DC SrSi 3SS5S?S HECHT & COMPANY, @ A Columbia Grafonola 25c a Week @ 25J2 lL SIR Seventh Near F | After-Stock-Taking Sale of Dresses From the Simple to the Most Elaborate Styles u i Too many Dresses, says the garment buyer. Suppose you advertise our I want to see if Washington women know an exceptional opportunity when they particularly attractive groups that bear ridiculously lo w selling prices for the Porch Dresses of Flowered Organdy 95c Long* tunic styles, with vestings of fine swiss and plaited ruffle down the front Colors are lavender, light blue and pink. Prettily piped In solid shades to har monize. Women's and Misses' $4.98 Dresses $1.68 Of white and colored combinations, in plain and corded voiles, new ratines, rice cloth, etc. Silk and ribbon girdles; variously trimmed; pannier. tunic, draped, ruffled, tiered and puffed styles. The Best Lingerie Dress in the House $9.95 You are going to get something sur prisingly good -here?the best in the house?don't forrret that. Every Dress a copy of a French im port of prohibited value. We sold most of them at $25 and $29.50. Materials are fin est voiles, magnificently embroidered and trimmed with silks and velvets. best sellers at bargain prices. see it. Here's the result in six one day. Women's and Misses' $6 and $8 Dresses $2.19 I?ng. graceful Russian tunics, drapes and panniers. Materials include ratine crepe, plain and corded voiles, lawns, rice cloths and batiste; white and fancy col ored effects. Women's $14.50 Silk Dresses $5.65 One glance and vou'l! realize the-e Dresses are worth every bit of their ear.v $14..*>i) price. Materials include flowered and plain silk messalines. plain charmeuse, taffetas and poplin. Stylish tunic and panni. r styles. Colors and black. Trimmed with crushed silk girdles. Women's $9.50 to $14.50 Mid-Summer Dresses $4.95 a Now the Offers Good $10 to $20 Norfolks at . . Think of it. men! It isn't every day that you can enjoy an advantage of this kind. A combination of events, fortunate for you, has made this big reduction a possibility. The necessity for more room and the fact that the sizes are a little broken?these have formed a conspiracy to decrease the price. You'll find all the suits involved in one of the large crystal cabinets, and in each individual suit that careful tailoring which insures ''stay-put" qualities. Materials are cassimeres, cheviots and worsteds, in gravs, tans and browns. Many belter back Norfolks are included. Sizes 30 to 40, for men and young men. Frankly, we don't see how you can well afford to sta^ aw ay torn*>11 o\\. fioor?jnut an you *tri? ??a* 7th ?t. You'll find many chic versions of the Russian tunic styles in this group; Dresses with vests and tunics of em broidered voile, with wide girdles of silk or ribbons; ornate trimmings of lace or net. Many awning stripe voiles included. 99 % V Itf p \ Men's $3.50 to $6 Trousers, $2.95 One and two pairs of a pattern of handsome cassimeres, j worsteds and striped cheviots. Shades of blue, tan and gray ; Girls' Middy Blouses $1.00 and $1.25 Values. 59c mixtures. Sizes 30 t<? 50 waist measure. First Floor. $1.00 and $i.J5 \ alues. of finest galatea and lonsdale jean, with trimmings of fast-color galatea and twill; all new, good looking styles; sizes O to 20 vears. ? Men's 69c to $1.00 Shirts 40C 111 Neglige models of high-grade percales, in all white neat ! stripe and fancy colored effects; stiff and soft attached cuffs: some have separate soft collars to match; sizes 14 to 17. Men's 50c and 75c Madras Athletic Underwear, 29c Men's 29c Black Silk Hose, 19c Girls' 69c and 98c Dresses. 37c Of gingham, percales and galatea ; the season's newest styles; fast colors; sizes 4 to 14 years. Women's Thread Silk Stockings . 35c Full regular made., in black only. Boys' $1 and $1.50 Wash Suits, 69c Materials arc pereah-s and mad ras; plenty of styles, including Hussian and bea-h models. Sizes for small boys -V2 to 8 years. Boys' 75c Khaki Pants 39c Stoutly made of ih.ji govern ment khaki in th? kidckerbocker style, with pockets and bolt loops. Sizes to 17 years.?First Floor. Walnut-finish Screen Doors, 59c Strongly made, with best wire mesh covering Regular price. 08c. Size 'J. 10 by 7 ft. Bleached Bed Sheets 49c Boys' $1.50 and $2 Wash Suits, 95c An excellent showing of sum mary Suits for rotnpinp boys. Made of heavy quality muslin; double-bed size, $1x90 inches. .. . - ? ? - _ - _ , . . ? ... 1 hitch, Dombey, Russian and Sailor Laundered ready for use. Value, styles. Sailor Suits with Ion* <19c. pants, etc. Sizes 2V4 to 8 years. Boys' $2.50 to $3 Wash Suits, $1.29 The best Wash Suits in stock. Materials include linens, galatea. madras, chambray and whit?j lawn A host of new styles. Sizes t-? 10. I 14c Pillowcases 9&c Of bleached round thread mus lin. finished with deep hems: size 30x42 inches. ?Fourth Floor. Women's $3 & $3.50 Low Shoes, $1.39 Also Pumps included. In patent, gun metal, tan. white ?an vas and buck; broken sizes. ?Third Floor. Women's Shoes Small sizes only,'39c If you wear a size ranging Matting Handbags, 37c In s e v e ral sizes; strong ly made, with taped edges; brassed trim mings. This Trunk, $5.95 Stoutly uilt and canvas cov ^ m ered; good lock and t brass trim mings; has large tray. A Charge Account Simplifies Shopping Tremendously at 39c Undermuslins, 25c Corset Covers. Drawers And Knee-length Skirts, of fine cambric, trimmed with laces and embroideries. ?Third Floor. $2.00 Trade-Mark Corsets, 95c R. A- G.. W. B., Nil form, Thomson's Glove Fitting and American Lady makes. Every corset in perfect condition and correctly styled. ?Third Floor. j* >?ju ?- - ? , -- from 2 to 3M- here s a bargain; many in this group are from lines that sold as high as $4. ?Third Floor. Experienced Advertisers Prefer The-Star.