New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-01

shsuld be issued upon these bonds and the was
tabllshed at 30 per cent OF their par value
Subseaueptly when application made TO deposit
United States bonds issued to the Pacific Railroad in lieu
OF other securities in the possession OF the Treasurer Of
the United States believing the class OF bonds offered In
substitution TO come wholly and without question within
the requirements OF the provision contained in the third
clause OF Section 26 OF the Currency act 10 witt "And
said Controller upon the terms prescribed by the Secre
tary OF the Treasury, may permit an exchange TO be
made OF any OF the bonds deposited with the Treasurer
by an association for other bonds OF the United States
authorized by this act TO be received Tor circulating
notes IL he shall be Of opinion that such an exchange can
be made without nrencce 10 the United statesD In the
exercise OF the discretion thus conferred tne sole object
OF socitude protect the interests OF the United
States; that is permit exchange that should work
TO the prejudice Of the United states to
the bonds and the circulation they are pledged to secure
is the principal and only essential point TO ne consdered
and in receiving United States bonds Issued TO the Pacific
Railroad as such security this point has been fully aud
uniformly guarded The market price OF these bonds Is
not less than their par value ard the margin preserved
is eoua 10 a per cent of the circulation issued which
the with any other security held by the Ireasur
er for similar purpose except perhaps the skies OF
Another branch Of the resolution directs the Control
Ter 10 inform tho House whether and what banks have
relnauished their charters az National Banks and
doing business under state charters stu retaining their
National Bank crculatiOn and what means, II any have
been taken to deprive them OF such circulation together
bank"
In compliance with which direction the House is in
Termed that two banks to wit, tho National Mechanics
Mu halgtS Rh % hoo 90 , 1o ave o vcD tbo Notice
required by section ~ OF the National Currency act ta
they had determined by y99 OF te LET'S ~
60 liquidation and be closed AZ the same time sald
banks nave notlned tne C9n9ler, az VOL ~ oo PI
that they had reorganzed under ana by virtue OF Jaw
OF the State OF NewYOrk State banks and that they
had transferred all their effects, deposits business &C.
from the National TO the state orgHalon
OF the National Currency net which authorizes Naona
Bank TO 90 into liquidation requires II 10 give hOce 10
tie bill holders and other creditors present their notes
and other claims against tho association Tor payment
This has done by the banks In question: as required
by law. The Controller Is without the mower to compel
banks in liquidation take any other means for calling
in their circulation than those prescribed by law ana
also without the power 10 deprive them OF their ccua
ton In any way. -, -.
banks named was at the date Of their last report AS
follows: su,,,o
The National Merchants aud Mechanics Bihh oil roy. @
r.., -s1e5-i5o
The third branch Of inquiry IN the resolution directs
the Controller 10 inform the House whether any Das
have instructed that the 29th section OF the Banking
act limiting the amount OF the Liabilities OF any one
person association to oneenth OF its capital aoes lol
apply 10 any Endorsements collateral liabilities, OF 20
checks certified good where the money Is not taken
bank, and 10 furnish copy Of said INSTRUCTIONS Oh
In compliance with which direction the House Is
respectfully informed that National banks have uniformly
been instructed by the Controller Of the Currency hat
the total liabilities TO any association or any person com
pany corporation, trn Tor money borrowed Is mted
by section % TO Onetenth the capital OF the Dahk whether
the borrower be tho maker ndOrser OF the note, tho
object beng TO prohibit bank from lending 10 any one
tenth OF lis capital Tie Controller is unable 10 recall any
instructions 70 National bank intended 10 exclude, with
90 On the contrary tho ruling has been that hdOrsers
are subject the restriction when they arc the parties
for whose benefit the paper is made Oh where tey are
liable 10 the banks as the actual borrowers.
Relative the application of the restriction TO oheckS
certified as good where the money Is not taken rom
bank" no instructions hayo been given. The Controller
has Of knowing the SPECIFIC amounts Tor when
checks are drawn and has account OF the checks that
are or may DO certified good whether tho money
taken from the bank, or - allowed To remain lte
Every depOstor has the right 10 check against his de-
pOst and In doing whether his check Is ceTuhed or
not he Is dealing with his own money, and Is not boz
rover in Tie sense which would bring him under the re-
strctions Of section 30 IL parties check upon BANK
without having funds deposit 20 meet their checks,
and an officer OF the bank certhes the checks 10 bo
''good becomes liable and tile drawer OF the
credit Of the tank But authentic
OF this kind do 20 the knowledge OF the Con-
trOler except through the special investigation Of an
examiner. Generally. however there Is nothing ia the
law which would limit the amount of a check drawn
against money actually Oh deposit Very respectfully
II. r. HULDURD, Controller.
TorAL ToTaL
pTPouTA Wrrrus