The New York herald., 1873-09-29
Mutilated Currency Deposited in the
First National Bank.
AN IMPORTANT OPINION.
Recommendations Of the Secretary Of tho
Treasury Concerning Exchange.
Treasury Decisions on Revenue
Questions.

WASHINGTON, Sept 28, 1873.
Mastlated Currency and the First Ma
ttonsl Bank-An Important Opinion.
In reply to q letter from Boston national bank,
which had recently RENTED large amount OF
national bank notes for destruction to the First
National Bank, OF Washington, Mr.. J. c. G. Ken
uedy, late Bank Examiner, and now Agent for
National Banks, has given the following opinion
upon the status of the national bank deposits
with the First National, and the notes OF national
banks sent 30 the First National for destruction:-
From An interview with Mr.. Stanton, receiver,
infer II to be his conviction that the deposits OF
part OF the reserve 1unds OF the national banks
with the First National, placed there by agreement
an equivalent for services TO be rendered by the
latter as acceptors of mutlated currency Will be
considered property OF the bank, and subject to
the ordinary contingencies OF deposits on account.
consider this view correct. As to the precise
status OF the mutilated notes of other banks held
for destruction and the substitution OF new otes,
Mr.. Stanton hesitates an expression, but promised
ion on this question l give 1t unreservedly The
national banks which entered into contract with
and return therefor new notes or Checks
on New York, or elsewhere, made the bank their
the Credit Of the depositns bank, and thus subject
to draft any moment prior to the return OF Its
equivalent So that all receipts Of such currency
prior to suspension placed to the credit Of the
signing bank stand on the level OF ordinary de-
Posits. Had !, as Agent OF National Banks
mase a1ss returns, NO acsion e' At n law vance could
he sustained against me for perversion, and your
you had transmitted to the First National only the
notes OF yolfr own issue for destruction and re-
placement by new notes OF your own bank, and for
which o check or draft would not have been
cepted you might indulge the confident expecta-
ton that such notes, in package or otherwise, not
deposits, held subject to your order. ApprOpra-
tion OF such by the bank would be embezzlement.
My practice as bank agent has differed greatly
from that of the First National that correspond
ing banks have been enjoned to remit per express
directly to the Uompiroller Ter OF % tne Currency
them useless If lost or stolen in na,asttu
or in the Treasury and more easily re-
COverabe. l fOresGw the possible consequences
TO the national banks OF the arrangement made
with the First National, which had the recommen.
dation OF Mr. McCullOch, and regret you now real
ize them, in way, however, not likely to occur
hereafter.
1t is understood that this opinion Is concurred In
by eminent legal authority. AS consequence
those national banks who expect return
Of that part OF their reserve fund lodged
with the First National Bank for services,
as well as their notes on hand received for substi-
tuition. amounting in all to about $1,000 900, will
prove q total loss to the other national banks OF
the country. The distinction made between special
aud ordinary deposits, If correct, VIII naturally
lead to some inquiry regarding the funds of dstin.
Ruished officials OF which the bank, the day OF
its suspension, appears to have been singularly de-
hcient.
Recommendations of the Secretary Of
the Treasury Concerning Exchange.
In quoting exchange on foreign countries 1t has
never been the practice, except in dealings with
Great Britain, to assume a par upon which per
centage is rated. The universal rule except In
this case, Is to quote the money OF our country
against the money OF other countries. Thus, on
France and the franc countries exchange is quoted
Oh francs and centmes to the dollar; on Russia,
ufe tn tha Fra Ort IN
1orin, and SO on. In reforming our practice with
Great Britain, the Secretary Of the Treasury says
IL Will be judcious to adopt the same method
quoting exchange either in dollars and cents
TO the pound sterling or In pence and fractions to
the dollar In the Spanish American states and in
China it is customary to quote exchange on Great
Britain in pence to the dolar, but for the United
States the secretary would recommend quotations
In dollars and cents to the pound sterling for the
following reasons First, the variation in
quoting one cent to the pound Is near
enough to denote the customary variations OF ex-
change in the market, SO that the use OF fractions
In stating prices will be unnecessary One cent
variation corresponds very nearly to one quarter
per cent in the exchange upon the fictitious par.
Second. as the dollar Of the United States is gold
coin, and of the South American States and China
silver coin distinction In the unit for quoting
exchange is for this desirable, since
II would thus be understood, without further ex.
panation that quotation OF dollars and cents to
the pound referred to gold dollar. and OF pence
and fractions to the dollar silver dollar. The
law while prescribing the close of the present year
rs the term for the discontin uance OF the old work
ing Of exchange, does not prohibit, but rather in
vtes, an earlier change in the practice In order to
avoid the inconvenience OF postponemeDt to
the last moment, the Secretary recommends that
Yba oh
upon those in position to guide in introducing
acting promptly, so that by conference and inter-
change OF views an agreement may be reached as
to the most convenient time and manner Of effect
ing them.
Decisions OF the Treasury Department.
The following are among other decisions made
ny the Treasury Department.
Oil OF coal tar, also known as nitro -benzole oil
Oi mirbane artificial essential Oil OF almonds, or
essence OF mirbane and being the product OF q |
mechanlcal mixture OF penzole and nitric acid,
nela 10 oe dutiaoie as q non-enumerated article, |
pnder section "a, act March 2 1861 at the rate or
Uenty per cent ad valorem
itchy lozenges and asthma cigarettes, intended |
70 De used incidentally, hut not being proprietary,
or prepared according to any private formula or |
secret art, held TO be dutable under the provisions
OF the acts OF 1861 and 1862 for medical pre- para
tions not otherwise providedn at the rate of forty
per cent ad valorem.
In the opinion OF the department the provisions |
for the free entry OF ship timber In tne twentysec.
ond section of the Of July a. 1870 ana ior lum
Der and timber In the tenth section OF the act OF
June Q, 1872 are not inconsistent, nor does |
the latter repeal modify the former
Under the act OF 1870, ship timber as
defined by the department under date OF
December a. 1872, Includes only such timber as is
evidently to be used for the frame or keel OF ves
sci, as It's masts and spars, and is absolutely Tree
on importation; while, under the act OF June c.
1872 the articles specified therein, which include
not only ship timber but all lumber and timber,
are free only wheB used In the construction OF YES
sels for foreign trade. Both provisions OF law are
IN lorce.
IL having been ascertained from act ua tests that
the tare on sugar Imported from the Sandwich
Islands la Kegs IL eight and one-third per cent.
eOnectors are instructed to accept the said per-
centaee az proper allowance OF tare on importa-
lions OF thus character.
The proposal OF a compromise OF q claim growing
out OF the unhervaluation by an importer OF GER
tam merchandise on entry presents q proper case
t0r petition for remission under the act OF March
3, 1877, rather than for application for com.
promise by the department