National Republican., 1880-04-23
DENTISTS.
DFNTTSTR,Y
NEUTRALITY-SUSPICIOUS..
Retirement OF National Bank Currenc.

Retirement OF National Bank Currency.
The act of June 30 1874, amendatory of tho
National Bank act Of 1854, provides for the re-
tirement by National banks of their circulut-
ing notes aud withdrawal of bonds. 1t is pro.
vided by section of that act that any bank
ing association desiring to withdraw its
circulating notes. in whole or in part may,
upon the deposit of lawful money with tho
Treasurer of the United States in sums of not
less than $4,000, take up the bonds which such
association has OH deposit with the Treasurer
for the security of its circulating notes, which
bonds shall be assigned to tho bank, and the
outstanding notes of the bank making such
deposit of lawful money, to the amount of
such notes thus deposited, shall be redeemed
at the Treasury and destroyed, provided that
the amount of the bonds on deposit for circu-
lation shall not be reduced below S50000.'
During the administration of General +. Il.
Spinner the best Treasurer the United States
has ever had, the banks wero permitted to do
this. Mr.. Gilhllan has, however, discovered
that in the amendatory act the words
"al acts or paris of acts inconsistent with the
provisions of this act are hereby repealed"
were left out, and therefore endeavors to do
away with the custom of years, which has be-
come law, Notwithstanding the omission. A
short time ago some banks, for the purpose,
no doubt, of realizing the premium command
ed by the bonds applied for the surrender of
their four per cents in excess of S50,OOO and
forwarded United States notes to redeem n
like amount OF their own notes. Upon the
application of the Comptroller of the Cur
rency to the Treasurer for the bonds 10
forward to the banks. who had already
sold them, the Treasurer refused to deliver
them, thus very greatly incOnveniencing
the banks. The Comptroller of the
Currency took issue with the Treasurer
upon this question, holding that, under the
amendatory act of 1874 banks are entitled to
n return of their bonds upon depositing the
equivalent in United States notes for the re-
dcmption of their own circulating notes, and
that the provision of the National Bank act,
unOn which the Treasurer bases his decision,
is to that extent modified by the amendatory
act The Treasurer on the other hand, holds
that the Rmendatory act contains no repeating
clause, and that, therefore. the requirements
of the National Bank act of 1864 remain in full
force and effect. The question was referred TO
the Secretary of the Treasury, who decided in
favor Of the position taken by the Comptroller
of Currency; whcrcupon the Treasurer asked
and received permission to appeal from the
Secretary's decision to that of the Attorney
General of the United States, who now has
the matter under advisement. 1t is prob
able decision will be rendered the
latter part of this week or the first
of next, when IL will be given TO the public in
full, synoptically, as it is II matter Of great in-
tercst to nll National bankers and hnanciGIs
Should the decision of the Attorney General
be adverse TO that of the Secretary of the
Treasury, IL will remove from our currency its
greatest recommendations its power OF eX-
mansion and contraction and furnish the
Greenbackcrs n very good cudgel with which
to whacli the heads of Republicans in the
coming campaign. II would also work injury
to the business prospects of the country, now
so iatteriuR.