1 Unless otherwise specified, the New York sub-treasury is understood, although there are "sub-treasuries" in other large cities in the United States. The former is located on Wall Street, and through it the larger proportion of the Government's money transactions with the people are conducted. Such matters as payment of checks issued in settlement of Government bond interest; pension disbursements, the redemption of mutilated paper money, refunding and redeeming of Government bonds, etc., are among its many duties. The Assistant Treasurer of the United States is in direct charge.

1 The first "sub-treasury" resulted from a change in the financial policy of the Government after the fall of the Second United States Bank, and was established in 1846 in Wall Street.

Besides New York City, there were sub-treasuries located at Baltimore, Boston, Chicago, Cincinnati, New Orleans, Philadelphia, St. Louis, and San Francisco; a total of nine, but the work is now performed by the Federal Reserve Banks.

The " sub-treasuries " receive money from the customhouses, post-offices, and such other departments of the Government, and are of material assistance to the people in telegraphic transfers of money from one section of the country to another. Between any two points in which there are such institutions, gold received at one and deposited with that " sub-treasury " may be credited by telegraph to a person at the other " sub-treasury " point. Currency, likewise, for sudden needs, may be so transferred. The Government makes a charge for such accommodation.

An importation of gold at San Francisco from Australia may be immediately credited to parties in New York through the medium of the " sub-treasuries." By this method, London will often pay with Australian gold its own debts to New York.

Sub-Treasury Credit. See " Sub-treasury Operations."

Sub-Treasury Debit. See " Sub-treasury Operations."

Sub-Treasury Operations. (First read " Sub-treasury.") The following is an example of a newspaper treatment of this subject:

Sub - Treasury Operations

Paid to Banks

Received from Banks

Banks

March 6

$ 6,087,000

$ 7,048,000

Lost

$ 961,000

Since Friday

15,930,000

18,781,000

Lost

2,851,000

The sub-treasury was debtor at the clearing-house on Wednesday $131,129. There were no important items. The banks have lost to the sub-treasury since Friday $2,851,000, and for the same period the sub-treasury was creditor at the clearing-house $653,780. The sub-treasury paid to banks $700,000 on telegraphic order against the deposit of new gold at the San Francisco mint.

Supposing the reader to be familiar with the "clearinghouse" system, the above will be clearly understood.

In each city where there is a clearing-house and a sub-treasury, the latter is by courtesy made a member of the association, and "clears" through it practically the same as any bank.

The statement that it was "debtor" at the clearing-house means that there was a certain amount due from it to the clearing-house under settlement, and may be referred to as a "sub-treasury debit." The balance is usually the other way, however, and the clearing-house owes the sub-treasury, in which event it is referred to as "sub-treasury credit." The statement that the banks have lost to the sub-treasury $2,851,000, means payments by them to the Government. The reference to a telegraphic order against the deposit of new gold at the San Francisco mint, indicates that there had been deposited in the hands of the Government at San Francisco $700,000, which was quickly made available in New York City by a telegraphic order to the sub-treasury there from the San Francisco mint to pay it out in accordance with instructions given by the depositing party.

Sub-Treasury Receipts. Issued by the various sub-treasuries of the United States in receipt for money received from various sources, such as taxes, custom receipts, post-office receipts, and mutilated currency. The reason why new currency is not given in place of the old without the intervention of the receipt is that it takes time to count the money which is deposited, and not infrequently requisition has to be made on the Treasury at Washington for the new currency before the transaction is complete. The receipt given for mutilated currency is one " subject to count," and it will readily be seen that it would be impossible to count the old currency received and the new currency to be furnished in its place while the customer is waiting.

Receipts were issued, and now are issued, in non-negotiable form, for legal tenders or gold, if deposited with a sub-treasury, but do not differ in character from any other receipts issued by such offices.