The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-26
WASHINGTON.

WARRINGTON. April u.s. 1874.
The Report or the Comptroller Of the
Currency to the President Concerning
tho 94,OOO,O 900 or tho National Bank
currency-statsment OF tho Comptroller.
The letter addressed to Representative Beck by
Comptroller Knox. dated to-day, and read by Mr.
Beck in the House. commences by saying that his
attention had been called to a statement in a MORN
ing paper, said to have been made by Mr. Beck in
the House on Friday, as follows:-
s ssek favored the motion to strike ont because ne
e ss ss1 1
Ss esdn e ns cS sd who
send 4 false message, misleading the House
ne Of as he uens sans eu to
rency was not taken when there were 1888 applicants for
don SS eaas n he East
The Comptroller In reply says:--
an %ndsrssnd you called upon the Deputy comproer
at the same time TO call upon me in the adjoining
aaS Ss ensy
@ ha se IN SDaie .Ss s
with you, believe you incapable OF doing an in
re- ss
the IL he Ma y Se
ton OF the act Of July II, 1870.
The substance Of the extract is that under the
act OF July IL, 1870 the Comptroller Is required.
after the $4,000 900 is taken up, to make requis
ton upon the banks OF New York city, Massa-
chusetts, Rhode Island and Connecticut for
$26,Ooo.ooo, and II these acquisitions are not COM
piled with within year thereafter he is author
ICED to sell the bonds and deposit the legal
tenders In the Treasury; but there is no
provision In the act for the return Of
the national bank currency to the Treas
ury for redemption, and the act is there
fore imperative and under it's provisions no con-
siderable amount or national bank currency
would be returned for distribution for eighteen
months after the requsiton is made.
sS to win d h hi H e IF
On banging and Currency transmitted to him the ID
psfsS ~ g
States and distributing the same 70 the West and
oFnoH OF THT q C ,o,1 " TIE cuRsssNcY
herewith an acs a
an an
s
mittee Of the senate yesterday. In order TO
sa5Iy e withdrew this sr s
:Sss, .'Ss
ssSS. SsS S'is:
PAGE seven Of my last annual report The Of
hsys issa have zone ssson
sa pss ssS
$S. ;Ssa 5 e .s sfs j. IS
Ssssss rs III 81 g. S s s., s
Bank Currency" Very TTeSs2pesetfulIy ox
Bsnsing aqd Currency House Of Wash
will thank you also to have the bill read for the In
Iii a i may BE-
end considered. Very 6 5esspeGt!gYIy, NOV c.r
Hon JAMES Beer House Of Repre- sentstyes. WASH
ington D. g.
The bill OF the Comptroller requires the national
banks in the States named In the letter to Mr..
Phelps to deposit legal tender notes In excess OF
$500, 900 OF their circulation with the Treasurer
and requires the Treasurer, Assistant Treasurer
and repositories OF the United States assert the
circulation Of these banks and return it to the
Comptroller for destruction, and authorizes
the latter thereupon to surrender to the banks
the bonds held as security for such circu-
lation. The circulGtion OF the notes OF banks
which Jailed and are in liquidation are also to be
assorted and returned to the Comptroller for de-
struction, and Immediately thereupon the amounts
destroyed are to be relssued to the banks in the
West and South.
The Comptroller is confident that within sixty
days after the passage OF the act he can supply
every application from the West and South for the
next two years with currency withheld from
other States.
The sanborn estigation-Testimony
Of q New York Commission Merchant
How Suits were Withdrawn.
The Committee on Ways and Means to-day ex.
amined Simon Herman, who, being sworn, testi-
fed that he was general auctioneer and commits
sion merchant in New York. During his examina-
ton by Representative Beck OF the Committee, he
said that in April 1872 he was indicted in the United
States Court for the alleged selling or liquor on
which the tax had not been paid, although he was
perfectly innocent Of the charge. He paid several
sums OF money to nave the case dismissed. Hearing
OF the indictment he went to the court and gave
bail. A. Goodrich Fay soon came to him and said he
could have the case dismissed by the payment Of
s., 900, which money was to be divided be tween
Fay and Sanborn. He also paid $1,000 to Judge
Davis, at that time District Attorney. He was not
aware that Assistant District Attorney De Kay
gave orders that the matter 0fsettlement should be
kept secret. Being INTERCEPTED by Representative
Foster, OF the committee, the witness said he
never met SanDorn on the subject. His CONVEX
sati0n was with Fay alone, and he paid the So 600
demanded to get rid or the scandal, although he
was entirely innocent OF the charge. He did not
recollect whether anything was said about the
probable use Of any OF the money In Washington
In answer to Representative Dawes, OF the
committee, the witness said the checks for
the money were gwen on the same
day, the understanding being that this was all
one arrangement and In accordance with instruc-
ton from Washington. There were present in
Mr.. Fay's office when he wrote the cheeks, Mr. Fay
himself and a man named Yates, who is now in
the Tombs. He had spoken to Judge Davis on the
subject. who said to the witness, "You had better
let the matter rest" He did not tell Judge Davis
that he had given $4,000 to other parties. When
he went out OF Fay's once he met De Kay. Assistant
District Attorney. who said, Judge Benedict is
on the bench and the case has been dismissed, In
accordance with orders from Washington Wit
ness then gave the check to Judge Davis.
Richard E. Stilwell, Deputy Clerk of the United