New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-10

The officers referred to maintain that there is
nothing in the law which authOIiZeS such surrender
and that the statutes expressly provide for the mode
of procedure which has invariably been followed Dy
the Department, namely, that deposit OF lawinl
money ence made to retire circulation cannot De
surrendered, but must sbe held until expended IN
redemption of the circulating notes OF the DahK
making such deposit. Originally, it is stated, a
National bank was not permitted TO take out new
circulation until its deposit Of lawful money for the
redemption of its circulating notes had been entirely
exhausted.
The following correspondence, apparently bearing
upon questions similar to the one now pending
before the Secretary, may be found ot interest ut
this time:
TREASURY OF THE UNITED STATES,
WASHINGTON. d. e., Aug. II. 1874
Cashier City National Bank Chattanooga, Ten,l.:
have received from the Controller of the Currency
package OF So 900 mutilated notes OF your 0ank IN
closed in yours 4h inst and for which you ask new
bills in return The Controller declines to Issue new
circulation TO any bank that mas deposited
ss re9 See1 s exhSned by the redemption Of any Of ts
notes that may be presented to the Department send
redemption Of the notes OF your bank sent by you as
above. Very respectfully r. r. SPINNER IlS s,o.
CHARLOTTE, N. C., Nov. 3. 1875.
The Hon. JOIN c. NEW. United States TREASURER HaSA
on the Fourth National Bank of New.York depOsltinG
with you $4,000 United States bonds please pay to the
Ss Of S Ssa d sa o 70 G
made to retire that amount OF our GreGlaCD and d This
Controller for new circulation to replace the amount
You bayd redeemed when ascertain what the amount
'''' ''''X K G. BREx1zEn Cashier.
III.
TREASURY OF THE UNITED STATS
WASHINGTON, ID. C., Nov. 8, 1879.
A. @. BRENEzER. Cashier Commercial HdtoHa' Ba''k'
Yours of Sd inst at band in reply would say that
after having made deposit OF notes TO retire
1pocnre the egsitenders such proceeding may not
allowed under the Law. should you desire TO deposit the
nv obaippg consent OF the Controller OF the Currency
Yours truly, JOHN G. NEw. Treasurer United States.
".
The following letter bearing upon the same sub
iect was written by United States Treasurer
Gilfllan on September 10. 1S70 to the cashier Of
the Marine National Bank. at Lebanon. KY:
SIR Tn repy 10 your letter Of the 18th Instant in
which YOU ask whether send you my check for
the balance remaining OF the egatender deposit Ot
he circulation Of your banK afer deducting 10000
additional circulation issued to you BY tue Controller OF
the Currency on deposit o! SSooo m IGgr per Gei
on oD"O' that ' additional circulation. instead OF
s due yda nsS ON the abo1e 6oaas
have TO say that the legaltender deposit made by
be applied to any other than that OF the redemption
Of It's notes. am informed by the Controller that the
forward in the course OF two or three weeks Very
respectfully, JAMES GILFlLLAS, Treasurer U. s.
The egal-tender notes deposited to retire the cir
culaton of the National banks are not LAID ASIDE In
the vaults of the United States Treasury but enter
into the cash. credit being given on the books to the
account for the redemption of the notes of the bank
deposlting and the notes redeemed being paid for
from the cash and charged to the account In fact
the account is treated just as dsbursng officers
account is treated, as bank treats depoSitors
account The legal-tenders deposited are not in
cluded in the Treasurers balance as shown by the
public debt statement, that statement including
such moneys only as subject to draft in payment
of demands against the Government.
The total amount of legal-tender notes deposited
during the pendency Of the Fnnding bill was
S1S 764 ,434, of which $1,257,5O0 has been re-
turned to banks in legal-tendcr notes under dc,
cIsions Of the United States Treasurer leaving stl
on deposit ST., ,476.934 This sum belongs to 1873
National banks. II of which have on hand in the
Office of the Controller of the Currency circu-
latlng notes amounting to $717.7S0, and 121 Of
which have on deposit S3.776,27O, so that
banks could be Immediately forwarded TO those
banks which have recently deposited lawful money
in the Treasury TO reduce their circulation. The
remander-abOut $4,000. Q00-COnrOller Knox
saws could be sent in about thirty days.
when asked to-day what effect q decision in favor
of the lcgaI-tenders would have on the Treasury,
United States Treasurer Gilflan said if the decision
eba be of general character. that is, not confined
Funding bill, it will affect about $50 600 900 now
on deposit in the Treasury Department for the re-
Levi P. Morton called at the Treasury Depart
ment to-day and while there took occasion to ex-
press himself IN opposition to the surrender OF the
offenders by the Government.
Seeretary Window stated at p. m. that while 1t
Ia nrobable that tho question will not be definitely
d,snosed of until tho next Cabinet meeting, 1t Is
possible it may be decided at any time.