, 1880-05-02
BANK RESERVES.

Special Dtspatch to The Chicago Tribune.
WASHINGTON, D. c., May 1.-The Washington
Phst to- morrow adds to its success by entering
the field Of Sunday journalism, having dscov-
cred that newspaper Is incomplete that Is only
published SIX days in the week. The Post pro-
poses to give the readers Of this section live
Sunday newspaper, and has greatly added to its
facilities for that purpose. In its issue to-mor-
row 1t claims to know that the Attorney-General
has rendered an opinion Of great Importance to
banking and commercial interests 1t
saws: 1.-The Attorney-General has rendered
an opinion On q question submitted to
him By the Treasury whether National
banks should at all times have on deposit with
the Treasurer registered United States bonds to
the amount Of at least one-third of the capital
stock paid in or have the privilege OF
REDUCING THE BONDS
held to the amount OF $4,000, depositing legal
tender notes instead. The report will not be
made public until Monday, but It is satisfactorily
asce1tained that the opinion Of the Attorney
General agrees with that OF the Controller Of
the Currency. The latter holds that II q
deposit OF leznl-tender is made IS
provided by the act Of June,
20, 1874, the necessity for the holding Of the
bonds no longer exists. This opinion is highly
Interesting one The difference In the views OF
the Controller and the Treasurer made this rem
dering necessary. On the 9Th Of april last the
Controller transmitted to the Treasury $3.50 900
in 1cgal-tcnder notes for deposit, and requested
him to withdraw and return to the Controller
f400.0W in United States bonds Of the Chatham
lation. The capital Of their bank is $450,00o,
and the proposed withdrawal would have re-
duced the bonds on deposit to $4,000. The
OF the NATIONAL Bank act: Every association
shall at all times have on deposit with the
Treasurer registered United States bonds to the
1nng .feAI FrAr
actually paid in The section provides further,
That nothing In this section shall prevent an
association t that may desire to reduce its capital
spen 9tn1 1i1 a&na &c ue s bonds @
named in Ibis act, nor ct1 from % taking up any eS
cess OF bonds beyond one-third OF the capital
stock. and upon which no circulating notes have
1.-THE Controller maintains that Sec, l6, while it
indicates on its face
a PERMANENT DEPOSIT
OF bonds, provides also for return Of bonds in
the proportion hereinafter named in the act,
and that Sec. Is of the same act provides that
the bonds deposited as hereinafter provided
shall be held exclusively as security for the cir
culattug notes. He therefore holds that If
= deposit Of legal tender notes is made, as pro
vidcd by the act of June 70, 1874, the necessity
for the holding OF the bonds no longer exists.
1874, which BECAME law ten years later than
the NauonaI-Bank act, is clearly repuRnant to
Sec l6 Of that ect and that it repeals the latter,
although 1t does not do 90 in express terms.
The Controller further holds that under the
construction Of the Treasurer he would be
Obliged to refuse legal-tender notes
which were voluntarily rendered for the purpose
of taking up bonds and redecmtng circulating
notes, while he would also be obliged, under the
other section OF the same act, to sell the same
bonds at forced sale for lega-tender notes
which IRE required to be deposited for the same
purpoEe as sfAfed at the outside. It Is under
stood that the opinion Of the Acknowledgement
agrees with the decision of the Controller