The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1881-03-18
BANKS AND BONDS.
Text of Secretary WINDOWS Decision
Relative Ia the National banks.

Text Of Secretary Windows Decision
Relative Ia the National banks.
The decision reached by the Cabinet on the
request of the national banks to withdraw their
legal-tenders deposited to retire circulation
maintains that the precedents Of the depart
ment i'll similar cases should be adhered to-
and no return of legal tenders made. The text
of the decision is as follows:
TREASURY DEPARTMENT.
WASHINGTON, ID. c., March III, 1881. (
President Merchants National Bank, Cleveland,
Ohio
SIR i am in receipt of your letter of the
9Th inst stating your bank had, during the
previous week, deposited with the Assistant
Treasurer at New York $4,000 in legal
tenders. with view of retiring that amount
OF lts circulating notes that bonds to secure
the same, amounting TO $500, 000 had been
forwarded from the treasury in this city to
New York, and that the bank now desires to
return them to the treasury OF the United
States, and receive back the above amount
OF logal-tender notes. As the action taken
in this case would establish rule by which
the department would necessarily be governed
IN regard to similar requests from other banks,
some delay in answering your letter has oc-
Cured. 1t seems since the 10th ult. about
$4,000, coo in legal tenders have been deposited
by the banks for purpose like that mentioned
by you or this amount about $1,000, 900 was
returned by the Treasurer, the request there
for having been received before any re-
demption Of notes had been made or
security bonds delivered. In such cases,
the transactions being incomplete, the de-
partment had clearly the right to return
the notes, as has been done. or the remaining
amount, about Sl8.000,000 security bonds
therefore have either been surrendered or re-
demptons against the amounts deposited have
already been made, and transactions have been
e. .4.la l..a. Ill
the precodents Of the department in similar
cases should be adhered to, and no return Of
legal tenders be made. In this connection it
should be stated no apprehension Of unfavor-
able results need be entertained in this matter.
Since tho 2eth ult. the department has
&c, 500, 900, and 10 to-day paying out
on like account an additional amount
or S5,000,0O0. In addition to these
payments there has been advanced from the
treasury since the LIST inst, to meet payments
of arrearages Of pensions, the amount OF
1858, Si4, and on the LIST prox. there will fall
due of interest more than $1,000, 900, aud
there are on hand OF incomplete national-bank
notes, which can DO issued u once to the banks,
to the amount of $4,000 900, which IN aggre-
gate, will DO observed. take an amount from
the treasury largely in excess OF tho
amount OF legaltender notes which
have been deposited by. the banks
sired, SHOULD be returned. Letters have also
been received asking IL the identical United
States bonds held as security for circulating
notes which we're recently withdrawn by the ma
tional banks can be rc-deposited without trans
fer. This request will be granted IL the bond
urer Of the United States " the bank returning
it. Very respectfully, Fl. r. FRENCH,
Acting Secretary.
The decision, although signed by Acting SEQ
rotary French, was actually rendered by Secre-
tary Window