Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-04-17
Text o. the Opinion OF the Solicitor Of
the Treasury Holding that Such
Right Legally Ixists-Etc


banks 20 return to their dealers month
ly or quarterly such checks as may have
been paid, with the bank-book Of the
dealer, in which is entered the amount
| OF each check. The Cancelled checks
! now on hand do not represent the de-
] posts or business of the bank. They
are simply the checks of persons who
| are not regular dealers at the bank, and
| which have accumulated for q series of
years. 1t is not surprising that many OF
/ these checks, which have been handled
lover and over again for a number of
| years past, should be found wanting in
! stamps; for it is well known that the
! mucilage upon these checks is not suffi-
! cient to cause them to adhere firmly for
any length Of time. 1t has not been
| claimed, until, within a few weeks,
| that the commissioner had any right to
/ make such an examination, and the
! comptroller of the currency has recently
received many letters from national
| banks in all parts Of the country COM
| planning of this espionage as unneces
ssTy and unwaTranted by the national
bank act. The comptroller takes the same
view of the case, and has referred the
subject to the secretary Of the treasury
| for his decision, which has not yet been
rendered. The internal revenue laws,
until recently, requifed that not only
bank checks, but prOmissOry notes,
should be stamped, and while the law
was in force it was the custom of bank
examiners, by direction Of the comp
troller, to examine all prOmissOry notes
and checks, and to require stamps to be
affixed where omitted, and to report to
the comptroller if the law was not COM
Of 70
formerly required to be affixed to prom
issOry notes was many times greater
than the amount required to be affixed
to checks, and it is now argued that if
the commissioner had the right now
claimed, it is quite remarkable that he
should not have long since instructed
his officers to have made frequent ex-
aminatiOns Of both promiss0Ty notes
and checks. 1t is further argued
that il is the duty OF the treasurer, and
not of the commissioner, to collect the
tex upon the capital circulation and
deposits Of the national banks, and il il
is the duty Of the commissioner to ascer-
tain If all the revenue laws have been
complied with, then it is also his duty
to ascertain If all the banks have, for q
series of years, made correct returns to
the treasurer, which would imply the
right OF his officers TO overhaul the books
of every national bank. Such duties
belong to experts and not to hundreds
of internal revenue officers who have
neither the education nor the experience
necessary for such work. The act OF
June 80, 1854, empowered collectors and
their deputies, etc, to enter breweries,
distiileries, manufactures, and buildings
where property, articles, or objects sub
ject to duty or tax are made, produced
or kept. Bank checks properly stamped
are neither made, produced nor Kept in
national banks Cancelled checks are
only temporarily he'd by the banks, aud
may be said to be "keptn ky the dealers
to whom they are returned periO iically.
Section 3lS3 Of the revised statutes,
referred to in the published statement
to-day, which requires that suoervisnrs
shall see that all laws ard
regulations relating to internal
taxes are complied with, il
applied to national banks would give
the commissioner the right to examine
the books and accounts OF every nation
al bank, and to put the officers and di-
TectOrs under oath, This right is given
the comptroller of the currency by sec
ton fifty-three OF the national bank act,
ed by him "shall make thorough eX
animation iBto all the affairs Of the as
sOciatiOns, and in doing so TO examine
any of the officers of the bank under
oath.u The commissioner has so far
not claimed this right, and if he should
do so it would at once, in the opinion
OF the comptroller, exhibit the untensble
nature Of his present position on this
subject. The same section provides that
national banks "shall not be subject to
any other visitOTisl powers than such as
are authorized by this set. except such
as are vested in the several courts Of
law and chaucery." The revised
Statutes Of the United States went
into effect upon the same day,
and contained clause declaring
that ''all acts Of congress passed
prior TO December L, 1873, are
repealed, and sections applicable thereto
are in force in lieu thereof" 30 that
even il the view of the commissioner is
correct it would be difficult to show in
what sense the acts to which be refers
can repeal a plain provision OF law,
which gives only TO the comptroller and
the courts OF law and chancery the rigut
to examine national banks. The comp
troller claims that he has much better
facilities for making such examinations,
and the banks do not object to his ex-
aminstions, while they 90, almost with
out exception, object to examinations
made by other persons. 1t is added that
for many wears, since the passage Of the
internal revenue act, the exclusive right
OF the comptroller and the courts to
make such examinations has not been
questioned, and it is believed by the cur
rency bureau that but few Of the banks
have been guilty OF inten tiOnal viola
tions Of the law relating to the subject
OPINIoN Oh THE SOLICITOR.
ST, Louis Democrat.
WASHINGTON, D. C., April IA Fol-
lowing is the opinion Of Solicitor Wilson
Of the treasury department on the ques-
ton OF the right to exsmine national
banks for unstamped checks:
DEPARTMENT OF JUSTICE, }
OFFICE or SOLICITOR OF THE IREAsrRY,S
WAsHIN GToS, d. C., April ?, 1875.
SIR have the honor to return here
with your letter Of the twenty fifth ulti-
mo, received by you from the comp
troller OF the currency and referred TO
me, submitting for your decision ques-
ton IS TO the authority Of an internal
revenue officer to examine the books
and papers OF national banks. The
comptroller represents that the commits
sloner Of internal revenue claims TO find
this authority in sections 1853 and 3l77
Of the revised statutes; but, in the judg-
ments Of the comptroller, section 524l ex-
empts national banks from the operations
of the sections Just cited. Section 8l63
contains the following: every super
| visor, under direction Of the com mis-
/ siOner, shall see that sll laws and regula-
| lions relating 10 the collection OF internal
taxes are faithfully executed and com.