The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1881-03-17

Can't Back Out.
Many of the National Banks that
undertook to bulldoze the Govern
ment into compliance with their de
mands, by Withdrawing their circuls-
tion, and thereby creating panic,
have seen where they missed it, and
msde application to withdraw their
legal tenders and have their circula-
ton restored. Bat they spoke too
late. A Washington dispatch of the
Ilth inst. says:
The Cabinet adjourned, having de-
clded the National Bank question and
instructed Secretary Window to pre-
pare a decision on the subject.
The decision reached by the Cabinet
to-day, on the request of the National
Banks, TO Withdraw their rlegal-tenders
deposited TO retire circulation, main
tains "fhat the precedents of the de-
psrtment in similar cases should be
adhered 10, and no return of legal
tenders made"
Secretary Window expresses the
opinion that no striDgency in the
money market need be apprehended,
owing to the large amount of bonds
that have been and are being purchas-
ed by the Government.
The text of the decision is as fol-
lows:
TREASURY DEPARTMENT,
WASHINGTON, March IL, 1881
President Of the Merchants National
Bank Of Clereland::
SIR: / am in receipt of your let
ter of the 9Th inst, stating your bank
had, during the previous week, depos-
tied with the Assistant Treasurer, at
New York, $1S0,000 in legal tenders,
with view of retiring that amount
of its circulating notes that bonds to
secure the same, amounting 10 $780,.
600, had been forwarded from the
Treasurer OF New York, and that the
the Treasurer of the United States
aud receive back the above amount of
legal-tender notes. Asthe action taken
in this case would establish a rule by
which the department would necessa
rily be governed in regard to similar
requests from other banks, some delay
in answering your letter has occurred.
1t seems that since the 18th ult. about
S1,90O,OOO of legal tenders have been
deposited by banks for purpose like
that mentioned by you. or this amount
about 81 100000 was returned by the
Treasurer, the request therefor having
been received before any redemption
of notes had been made or security
bonds delivered. In such cases, the
transaction being incomplete, the de-
partment had clearly right 10 return
the notes, as has been done. OF the
remaining amount, about $1S,OO0,O0O
the security bonds therefor have either
been surrendered. or redemptions
against the amount deposited have
already been made, and the transac-
tions been SO far completed that it has
BEEN decided that the precedents ct
the department in similar cases should
be adhered TO. and no return Of legal
tenders be made.
In this connection it should bs stated
that no apprehension of unfavorable
results need be entertained ia this
matter. Since the 25tb ult. the. depart
ment has paid out for bonds purchased
about So. 100000, and is 10 day paying
out on like account an additional
amount of $5,O00,00O. In addition to
these payments there has been advanc-
ed from the treasury since the let inst,
to meet the payments of arrearages of
pensions, the amount of S7,5S3,S ,S44,
and on the Let prsx. there will fall due
of interest more than S9, ,00O, 900, aud
there are on hand of incomplete Ma
tional Bank nOtes, which can be issued
at once TO banks, the amount of ST.
100000, which in the aggregate it will
be observed, will take an amount frem
The treasury largely in excess of the
amount OF legal-teDder notes which
have been deposited by banks since
the 18Th ult., and which it is now de-
sired should be returned.
Letters have also been received ask
ing if the Identical United States bonds
held as security for circulating notes
which were recently Withdrawn by
N .tional Banks eau be redeposited
without transfer. This request will
be granted if the bond bears nc assign.
ment except that of the Treasurer OF
the United States to the bank return.
ing it.
Very respectfully,
H. S FRENCH