Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-03-12
No Withdra,caI of Legal Tenders.

WARRINGTON, March 1.-THE decision
reached by the cabinet to-day, on the request
of national banks to withdraw their legal ten
ders deposited to retire circulation, maintains
that precedents OF the department in similar
cases should be adhered to and no return OF
legal tenders made. Secretary Window eG-
presses the opinion that no stringency in the
money market need by apprehended owing to
the large amount of bonds that have been and
are being purchased by the government.
TEXT oF THE DECISION.
The text of the decision is a follows:
TREAsCRx DEPARTMENT, WASHING
TON, District of Columbia, March II, 1881.
President of the Merchants National bank,
Cleveland, Ohio-Sir: am in receipt of your
letter of the 5th inst, stating that your bank
had during the previous week deposited with
the assistant treasurer at New York S1S0,000
in legal tenders, with view of retiring that
amount of its circulating notes, and that bonds
to secure the same amounting to $500, 600 had
been forwarded from the treasury of this city
to New York, and that the bank now desires to
return them to the treasurer of the United
States and receive back the above legal tender
notes.
As action taken in this case would establish
a rule by which the department would neces-
sarily be governed in regard to similar requests
from other banks, some delay in answering
your letter has occurred. 1t seems since the
10th nit. about s19,0OO,O00 legal tender have
been deposited by banks for a purpose like
that mentioned by you. Of this amount about
81, 600, 900 was returned by the treasurer, the
request therefor having been received
before any redemption of notes had
been made or secured by bonds
delivered In such cases the transactions be-
ing incomplete the defendant had clearly the
right to return the notes, as has been done.
Of the remaining amount, about S1S,000,000
security bonds, therefore, have either been sur
rendered or redemptions against the amounts
deposited have already been made, and the
transactions having been so far completed, it
has been decided that the precedents of the de-
fendant in similar cases should be adhered to,
and
NO RETURN or LEGAL TENDERS
be made. In this connection it should be
stated that no apprehension of unfavorable re-
suits need be entertained in this matter. Since
the 25th ult. the department has paid out for
bonds purchased about Sc, 500, 900 and is to-day
paving out on like account an additional
amount of S500,000. In addition to these
payments there have been advanced from the
treasury since the 1st inst, to meet
payments of arrearages of pensions, the
amount of $3.50, ,S44, and on the first proXimo
there will fall due of interest more than ST.
000, 900, and there are on hand of incomplete
national bank notes WHICH can be issued at
once to banks an amount of "a, 100000, which
in the aggregate, it will be observed, will take
an amount from the treasury largely in excess
of the amount of legal tender notes which
have been deposited by banks since the 10Th
ult., and which it is now desired should be
returned.
Letters have also been received asking if the
Identical United States bonds held as security
for circulating notes which were recently with
drawn by national banks can be redeposited
without transfer. This request will be granted
if the bond bears no assignment except that of
the treasurer of the United States to the bank
returning it. Very respectfully,
[signed.l H. F. FRENCH, Acting Secy.
The decision, although signed by Secretary
French, was actually rendered by Secretary
Window. Owing to the pressure Of business
upon the secretary, Assistant Secretary French
signed to-day's business. It's rule OF the de-
partment that the entire business of the de-
partment of any given day shall be signed by
one person.