New-York tribune., 1879-10-31
LOCAL MISCELLANY.
PREVENTING ovER-CERTIFICATIoN.

I'm
ACTION OF THE CONTROLLER OF THE CukkESCf-
EXCITEMENT IN WALL STREET.
Tho increased volume of business in Stock Ex-
change securities has stimulated the practice, COM
mon among Wall Street banks of certify ing cheeks
bevond The limits of the actual credit halances OF
brokers' Officers Of prominent banks have become
alarmed recently at the enormous amount oi tnesc
certifcatiOns, which in some instances eAceeueu
oacb dav many times the capital Of the banks. The
nrac,ce Of oyer-certication is contrary to the pro-
visions of the National Banking Act. In an
amendment TO the act passed March s.
1863 il was declared that III snali DC
unlawful for any officer clerk OF agent
of any National banking association 10 certliy
any check drawn upon the association unless .nc
nerson ar companv drawing the check has ON de-
posit with the association at the time sucn cneck ~
certified an amount of money equal 10 thS amount
snaci1ied in sucb cheok k" While the check so CERT
fled was made a valid obligation against the pabihi
it was provided that violation OF the law luishI
subject the bank to the appointment oi a receiver
In compliance with instructions received ycster-
dov from the Controller of the Currency, John Jay
Knox Charles A. Melgs. National Bank examiner
visited the principal Wall street banks ana IN
formed their officers that the PROVISIONS Oh Ihs
law must bc ohcycd. Air. Meigs was ordered
bN the Controller 10 examine bahks, euh'A
al anv violation of the law. He visited httecn
leading banks and 10 save time required by per
sOna examination OF each Dank' acc'pt'u 'neS
statements of the Oiceis ia regard 10 'ls cAlnt VA
l.
report OF hIs examination. lie dld not report ne
name of any bank as refusing Ia comply win the
law He sand that he believed the amount of the
over-certliicatiuus had been greatly exaggerated.
OF the fifteen banks visited by hIm, seven or eight
he said were not guilty of tins violation of the law.
The action of The Controller of The currency
created great excitement among stoch-bIohcIs'
Some Of the banks AT once Informed tel cus' s'nncIs
of their inability further tn certify their checks.
Others simply refused to certify tie checks wicn
they were presented. The banks were soon be-
scigcd by a crow OF angry brokers who sought an
explanation. After the first tbuiliton oi temper
the brokers' seemed inclined TO MAKE liglt al if
action of the Government. ihcy declared t!at TINS
was not the first time II lad sought u enforce tie
law, but that the attempts hdd iaicd before. a
prominent member Ol the stock ENcIanrc sara ihat
tue time was InOppurtuuc. have anticipated ior
a long tme,' he said, " hi5aciion b. ihe q lNtIn-
meut. 1t ought To have been taNcn before w hen
the funding operations WcIc lu piOgTt - the Treas
ury Department Hooded Wal SIeet with mo ey.
Now that they have been completed 10 chooses ID
put on the screws. II Is not far play.
President FRY. of the Bans of Ncw-l ork,
chairman of the commlttcc recently appointed
TO confer with a committee OF the Stock Exchange
IN regard 10 The clearing of stocks. Yesterday re-
qucsted President Ives, of thc Stock EXchaiee, To
appoint "A c0mm tee OF conference. Mier breI
discussion of the subject Alr. Ives promised To ap-
point the committee.