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Show COMMISSIONER OF INDIAN AFFAIRS. 67 funds in order to impress upon his mind a most important considera-tion- that the funds of an able-bodied Indian should be handled in such a way as not to weaken his moral stamina as a man. DEPOSITARIES FOR INDIVIDUAL INDIAN MONEYS. It has been the custom to place in national banks, regularly desig-nated and bonded for the purpose, individual Indian moneys derived from the sale of inherited lands and timber on allotments of indi-vidual Indians, from.the leasing of lands, or from other sources. An act of Congress approved June 25, 1908 (36 Stat. L., 855, 856), pro-vided for the selection, as depositaries for this class of funds, of either National or State banks in the discretion of the Secretary of the In-terior; but until recently the deposits were confined to national banks because these institutions are under the supervision of the Govern-ment. On several occasions, however, the question of using State banks as depositaries was taken under advisement, and early in 1912 a plan for the investigation of such institutions was formulated by the department in connection with deposits of moneys derived from the sale of surplus and unallotted lands and other property belonging to the Five Civilized Tribes under the act of Congress approved March 3, 1911 (36 Stat. L., 1058,1070), with the result that by June 30, 1912, the applications for deposits of 42 State banks had been approved. Following the course pursued regarding those tribal funds, steps were taken looking toward the use of State banks as depositaries else-where in the service. A plan for investigating the State banking institutions of South Dakota was next developed by the department, and a number of banks have applied for deposits. Plans applicable to banks in other States are being formulated, and in cases where con-venience to the Indian depositors, the rates of interest offered, and the, investigation of conditions warrant, deposits of Indian funds will be made in State institutions. One advantage which seems certain to result from this departure from the old practice is that there will become available for selection a larger number of depositaries located in or adjacent to the Indian communities, thus making it easier to inculcate practical and valu-able business lessons, and at the same time lifting the Indians, at least from a commercial standpoint, in the estimation of the white citizens; in other words, their condition will more nearly approxi-mate that of their thrifty white neighbors. Although the office has, as a rule, been able to procure a good rate of interest on these Indian funds, while protecting them agqinst 10% by requiring surety bonds from the banks, it is hoped that the ac-ceptance of State banks as depositaries will bring still better earnings. |