The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-05-18
WASHINGTON ITEMS.
NATIONAL BANKS DEPOsITISG WITH PRIVATE
BANKERS.

COMPTROLLER OF THE CURRENCY,
WASHINGTON, May 10, 1866.
Dear Sir,-Your letter of the 9th instant
is received. In reply, have to state that
| consider "dcpositing money by Ma
tional Banks with private bankers, bearing
interest and payable on CALL" violation
of the twenty ninth section of the currency
act, when such deposit exceeds one-tenth
part of the capital Of the bank making
such deposit.
Very respectfully yours,
+. CLARKE, Comptroller.
Horace Ratboon, Esq, Cashier First Ma
tional Bank, Lancaster, Pa.
THE UNITED STATES CIRCUIT COURT IN v1R-
GINA.
Both Attorney General Speed and AS
sistant Acknowledgement Ashton were on
the floor of the Senate this morning, pro
badly urging the passage OF the bill which
authorizes the terms Of the United States
District Court to be held at Richmond
Va, to commence on the first Monday i'll
Nav and Novcmbcr.-Stor, 18TH.
MERCHANTS BANK VICTIM.
Lieutenant Colonel f. +. Paulding, pay
master United States army, at the time OF
| the failure Of the Merchants National
Bank of this city had on deposit n large
amount in Government funds, was ycSter.
dav arrested by orders from the Secretary
of War. Lieutenant Coloncls Paulding
asks for the suspension of public opinion
until the facts of the case are elected by the
commission now investigating the affairs oI
the bank referred to.-NationaL Htelliye0,
Ger, l7H.
THE FIVE PER CENT. BILL.
More opposition is manifested to the bill
for the consolidation of the public debt in
five per cent. bonds, &C., than was antlcl-
pated. The chief objection to it is, that il
excmptS the United States bonds iron
taxation by the Government itself, or 10y
States and municipal corporations. The
States are eager to avail themselves ct tins
source of revenue, as are nearly all oui
cities which are burdcncd with debt. There
is no doubt that the question of taxing the
| Government securities will be brought into
the next Presidential canvass, and certainly
! into the elections for Congress. The party
/ that favors the highest rates of taxation iol
/ the benefit Of States, towns, and countlc'
will probably obtain the greatest number
/ of votes. Some other and minor objec
tions to the scheme may be easily obviated
1t is stated that capitalists have alrcad!
! rendered large amounts in exchange tO
the proposed United States five per cent
thirtv-vcar bonds, without reference Il
any exemption of the same from Govern
ment taxation.
ADJOURNMENT OF CONGRESS.
Early in June, Congress will have dis
posed of the reconstruction question, ant
probably by abandoning the task as hope
less. The majority will clamor for adjourn
ment, and it will no doubt be carried
Congress, abandoning the field to the Pre-
sident, will go into the fall elections under
great disadvantage.
NATIONAL BANK NOTES.
The following letter contains an impor-
tant decision:
TREASURY OF THE UNITED STATES,
WASHINGTON, May l6, 1866.
Dear Sir,-Your letter of the 10th III
slant has just now been received.
You ask to what extent is the Govern
ment liable for the redemption OF the note'
of the national banks.
| answer to the full nominal face value
of every note issued by the Comptroller o
the Currency to a bank, and by the banl
put into circulation. -,
You ask, "Should the bank deposits will
the United States Treasurer to secure The
circulating notes with the banks deposit
ing them to be inadequate to the redemp
ton of the notes of the bank by reason o.
the decline of the securities deposited, il
the Government bound to redeem the note
at par ?" The forty-seventh section o.
the national currency act not only give
the right to forfeit all the securities held ioI
any deficiency, but the Government mas
first and paramount lien upon all th'
assets of a defaulting bank. l therefore
answer this question afiirmatively.
You ask again, "Could the absolute
failing of national bank impair the value
of the circulating notes of the bank ma
king such failure p | answer, No. OI
the contrary, the notes of national bani
that has failed are rather better than thoS'
of bank in good standing, if away from
the business marts or commercial centre
of the country, for the reason that th'
Treasurer of the United States become
the cashier of such defaulting bank, ant
will, through his assistants and all othe
| Government officers, redeem such circula
ton.
You ask. fourth, care the notes OF TIT
United States Treasury, beyond the fac
of their being legal tenders, greater Sc
curity to the holders than the currency
the national banks"
The United States legal-tender note
afford no greater security to the holde
than the notes of national banks. Tn
only real difference between the two is
that while the latterare only "a legal tende
from and to the Government, the forme
are such legal tender from and TO all par
ties, whether municipalities, corporations
or individuals.
Very respectfully yours,
+. L. SPINNER, Treasurer.
r. z. Daniel, Esq, Cashier Merchants Ma