Centre Democrat. [volume] (Bellefonte, Pa.) 1848-1989, 1881-03-17
Against the Banks.
SECRETARY WINDOW DECIDES THAT THE LIZ
GAL TENDERS CANNOT DE WITHDRAWN.

GAL TENDERS CANNOT DE WITHDRAWN.
WAsulNoroS, March 1.-THE Cabinet
meeting to-day convened shortly after II
o'clock. All the members were present.
Secretary Window took with him from
the Treasury Department large port
folio filed with statements and copies of
letters pertaining TO the request of the
national banks relative TO the with.
drawal of their recent legal tender de-
posits for the retirement of circulation.
The consideration of this subject was
very exhaustive, and it was the only
business of importance transacted ut
the meeting. The request made by the
national banks was finally decided, and
Secretary Window was authorized TO
prepare the decision, which was not
completed until late in the afternoon.
The text of the decision is as follows:
TREASURY DEPARTMENT,
WAsnINGToN, u. c., March IL, 1881.
President Merchants National Bank,
Cleveland, Ohio.
SIR: am in receipt OF your letter of
the 5th instant, stating that your bank
had, during the previous week, deposit.
ed with the Assistant Treasurer at New
York $lS0,0OO in legal tenders, with a
view of retiring that amount OF its cir
culating notes that the bonds to secure
the same, amounting to 100000, had
been forwarded from the Treasury, in
this city. to New York, and that the
bank now desires to return them to the
Treasurer of the United States and re.
ceive back the above amount of legal
tender notes. As the action taken in
this cause would establish rule by
which the department would necessarl-
ly be governed in similar requests from
other banks, some delay in answering
your letter has occurred. 1t seems that
since the 10Th ultimo about $40 100000
of legal tenders have been deposited
by banks for a purpose like that men
toned by you. OF this amount about
one million was returned by the Treas
urer, request therefor having been re.
ceiyed before any redemption OF notes
had been made or the security bonds
delivered. In such cases the transac.
ton being incomplete the department
had clearly right TO return the notes,
as has been done. OF the remaining
amount-about $4,000, ,OO0-the securi.
ty bonds therefor have either been sur.
rendered or redemptions against the
amounts deposited have already been
made, and the transactions have been
so far completed that 1t has been deoid.
ed that the precedents OF the depart.
ment III similar cases should be adher.
ed to and no return OF the legal tenders
be made. In this connection II should
be stated that no apprehension OF un.
favorable results need be entertained IN
this matter. Since the 2jth ultimo the
department has paid out for bonds pur
chased about So 800 900, and is today
paying out on like account an addition.
al amount of $j,OOOOOO. In addition
to these payments there has been ad.
yanced from the Treasury since the first
instant, to meet the payments OF al
rearages of pensions, the amount OF
1888, ,SH.33, and on the first proximo
there will fall due of interest more than
seven million dollars, and there are on
hand of incomplete national bank notes
which can be issued at once to banks.
tue amount of 100000, which in the
aggregate, It will be observed, will take
an amount from the Treasury largely
ia excess OF the amount Of legal tender
notes which has been deposited by the
banks since the 10Th ultlmo and which
1t Is now desired should be returned.
Letters have also been received asking
It the identical United States bonds
held as security for circulating notes
which were recently Withdrawn by the
national banks can be re-deposited
without transfer. This request will be
granted If the bond bears no assign.
ment except that of the Treasurer of
the United States To the bank return.
ing it. Very respectfully,
II. +. French, Acting Secretary.
The decision, although signed by Act.
ing Secretary French. was actually ren.
dered by Secretary Window. Owing to
the pressure of business upon the Sc.
cretary, Assistant Secretary French sign.
ed to-days business, and it is the rule
OF the department that the entire bust
ness of any given day shall be signed
by one person.