New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-05
Observation-Disclosures OF CHECKs.
LIABILITY OF NATIONAL BANkS-IMPo"iANi 'i
,oN ov THE ATTORNEY GENERAL,

ION OF THE ATToRNEi-GENEKAL'
FIX TELEGRAPH TO TIE TRIBUNE
WASHINGTON. Dc. 4.-Thit portion OF the Coh-
trolor of ,h Currencys report which treated OF to
oyer-certfcation of checks. has been Withheld from
publication mus far. II embode' the A''o,"'S
Generals opinion that the accepU'nco
checks in excess of dep IS r'a'y ~"
over-certifcation and ,sa violation OF 'aw' 'o""'i
ing the officers of National banks haoie 10 n"o Vi
lmprsOpment or both. The Controller says
the large use of these instruments, ny when
the banks in eject guarantee the contracts OF STOCK
brokers with their Gus .oncrs. has grown TO DO
GREAT obuse during tue past few years ana
cannot 10 defended upon any correct priaciple
OF banking ThlS business IS chiefly
done by nine or ten National banks; although
other banks organized under State laws as well as
National certify similar checks for considerable
amounts"
The Controller recites that passage OF tho pahK-
char or act last session putting penalty on over
cer;iiicauous anu says: no Controller prfpa'ou
"A letter containing the following questions WHICH
at his request WAS submitted by the secretary 10
the Attorney -General Tor his opinion:
"Has Il National bunk the legal right to accept checks
drawn II unless the drawer has the ahouhS ea'c
in tue cACck actually on deposit In the ba"k n nm
4" IL National bank mast ne power w hihhc sum gu
acceptance. " Oud acceptance ut time wheh lle
money WIS not acpOsi enc Crclt or the ufa yer
lmbny 90 1t or money borrowed anu @s Si'n M 81
CURED hunted To unetcn 81 me j ia ia ca
to bank, prUyiIed by secuOD o2Vo Oi tno OH''o'
"T - SaionI blk has tho power 10 accept such
ohrcKs equal III amour any case to Onelehth o
its capita. would tue acceptance OF any hn'lSor o.
tesr cAccks, to amOJLt exceeding III lhe
the q, MS padh cditdl DC III NiVt"IO" vi e'O
uun ., -O2 Unl,e. states Revised : atuteSF
"ino vocation oi section D, zOS Revised Statutes,
subJeo ed a National bank 10 no appointment OF a
receiver Ihs law was not mandatory, and
inft tn
ment and discretion of tn, Controller. The
propcr ground Tor ,he appointment of receiver
IS insolvency. and 1t NAV be questioned whether the
+ s2onsiaility Tor taxing bank from the control OF
uA owners should be exercised III oth.r cases Than
in olyency until the question of violation OF law
shall have been orou INT before the cOurs for deter
,uinatlon No app0i It1e ITS OF receivers have ever
been made since the org nIzttion of the National
banking system except IN cases OF
insolvency; although two large banks
which had previously been found to be
iusolvcnt were placed IN charge OF
receiver for illegal ceriiiic ,tion of checks.
Tue y s,,ge Of the ACT Of March g. 1869 Cs'c-
ton .2OS. Revised tatu'es', and examinations
which foLoNtd, had the eff 10 check and
diminish ths prac Ice OF over-certihcatIon The
practice his however, greatly increased during the
lat three years and ie return, OF the banks for
October g. the date of their lat statement, Dis
close the fact that the amount OF ccrthta ca or
accept lnces made on that day nearli onc-third
greater than FOR corresponding date in tho year
urcyions and that III amount of accept noes iOr
IT. brokers of min Na'i mai banks o. nut day
was moro tnln nluc times the aggregate caPltI
stock of inO-e b tnK IL nav - >c"I fro n ne o.
loving a biz. wucI exhDts the amount 81 cap al
and { tiicd Oh cko or acc.pianc"s out tm,l X oi
al tha National auks of NeN-lord tltJ i0r core
spouuIrg oates from 1879 u 1881, inclusive, ana
ike MONA lun in rc erence 10 nine National
b INK, Tor rae sane daeS: