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Deposit Whittled Down By selling the $225,000 in posted securities—U. S. Government bonds—and liquidating private notes, the original deposit had been whittled down to $1,047,836 when the bank closed, last year. The last report to Controller Kerr showed the face value of these securities as $1,095,737, but the State Banking Department's appraisal of these notes is less than $125,000. These figures are based entirely on the reports. Payments may have been made since by certain debtors, but neither the State Banking Department or the Colonial Trust Company will make any comments on such payments. The low appraisal was due to some extent to the State Banking Department in setting a low, in most cases a minimum value, on assets of a closed institution to guard against a possible over estimate of the value of such paper. Banking Department Approval As fast as any of these notes is liquidated, the city is refunded a proportionate amount of its deposit. Mr. Benner's resolution permits the Treasurer, Controller and Solicitor—plus the Mayor if his amendment is adopted—to agree to settlement of some of these notes set aside for the city at less than face value, with the approval of the Banking Department. This, it was explained, might enable the city to liquidate a greater portion of its deposit. Mr. Benner, incidentally, according to the bank receiver's last report, has three notes in the closed bank and is an indorser on two others. His own notes are in amounts of $525, $400 and $875. Value of Paper Cut For J. W. Benner, he indorsed notes of $3,500 and $2,400. This paper, representing loans aggregating $7,695, was valued by the Banking Department at $1,402.81. Mr. Benner's notes, however, were not included in the lot set aside to liquidate the city's deposit. Fewer than 50 of the 225 notes turned over to the city by the bank were backed by securities. The bank receiver's report shows no record of the avowed notes in this lot and shows that some of the others had been paid up before they presumably were allocated to the city for liquidation. Five Notes by Steinberg Included in the city lot were five notes signed by Benjamin L. Steinberg, former assistant city solicitor. The aggregate amount of these notes was $10,855.10. The Banking Department's appraisal valued them at $1 each. Among the larger notes, as detailed in the Controller's last report, posted to liquidate the city's deposit, were those of J. C. Adderly, $57,564, appraised at $20.66; J. T. Christian, $25,000, appraised at $1; Floyd E. Clinton (10 notes), $22,161, appraised at $10; Howard A. DeLong, $36,063, appraised at $12,508.61. Herman Friedman, Hill politician, $40,000, appraised at $1; H. E. Lovett (two notes), $23,993, appraised at $2; Harry Ruben (three notes), $43,500, appraised at $3,531.27. In the lot set aside for the city also were included two notes of Joseph Engelsberg, Hill politician, aggregating $5,650 and appraised at