The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-05-04
General Weaver to Comptroller Knox.
From the Iowa Tribunal

from the Iowa Tribunal
CEDAR RAPIDS, Iowa, March p, 1ss2.
EDIToR TRIBUNE: In recent num-
Der of the Racine (Wis-) Aduocate, l
find letter from Hon. John jay Knox,
Comptroller of the Currency, in which
he attempts to critieise some of my re-
cent utlerances, as follows:
"TEEASURY DEPARTMENT. OFFICE OF THE
COMPTROLLER OF THE CuRRESCY,
WASHINGTON. March 3, 1882. J
SIR: am in receipt OF your letter of the
2,tl ult., IN reference to the amount of circu-
latIon which National Banks are entitled to
receive up,n United States bonds deposited
which is enclosed an extract from General
Viewers speech, and one from an article in
seems to lie made by General We iver, and py
Mr.. Go ifrey, I'd tor of the WISCONSIN StdndIrd
seems % be that the National Banks receive
n nety per cent upon the m irket value of the
bonds deposited with the Unit d States Treas
ureT. Tn misappr ahenSion is based, first
upon a misunderstood ng of the law. Section
5,i1l provides tn 1t upon the post of bonds
. the ass )ciatiDn making The same Shall
be entitla to receive from the Comptroller of
the Currency circulating notes equal in
amount 70 ninety per cent Of the current
market value of the Un ted States bonds SO
transferred and delivered, but not exceeding
n nety p centum of the amount of the bonds
at the par value thereof.
This law W IS pissed at time when it was
feared that the market value of the United
and the object of il was to prevent the Ma
iJnal Banks from receiving more tlan ninety
per cent upon such actual m 'rket lue. The
expression not exceeding nety per cent. of
th1 amount of the bonds at the par yat'Ie
thereof clearly indicates this, and this is the
way which this law has always been con-
strued. Although, contrary to the expectation
Of the lawmakers, the market value OF tne
United States bonds has generally exceeded
the par value, in no case has circulation ever
been issued to an amount exceeding ninety per
cent of the par value.
From this you will see that the statements
extracted from General Weaver's speech are
misrepresentation both of the law and the
facts.
~ also enclose a copy of the address of the
Comptroller of the Currency, at the annual
on. at Saratoga, in 1879. in which, on page Il,
YOU W II find some of the arguments, VIII ch
were tn n in use by the Greenb,ek orttors,
are referred to and their unsoundn ess point
ed out. JOHN JAY KNOX. Comptroller.
"A. c. sANDFoRD,
/" Ed. Advocate, Racine, Wis"
Ii Mr.. Knox had quoted the whole
law relating to the controversy between
US, this reply would be unnecessary and
the public would have seen at a glance
that he was wrong and that l was right.
The following is the law which Mr..
Knox garbled:
"Sec. SIN. Upon deposit OF bonds, as
prescribed by sect ons fifty-one hundred and
ffty-nine and hfty-one hundred and sixty,
the association making the same shall be en-
I tied to receive fro n the Comptroller OF the
Currency circulating notes of different de-
nominations. in blank, registered and coun-
ter5igned as hereinafter provided, equal in
am unt to ninety per centum of the current
m lrket value of the United States bonds so
transferred and delivered, but no5 exc leding
ninety per centum of the amount of the bonds
at the par value thereof If bearing interest at a
rate not less than fre per centum per dnnuna."
4. e., =
| in italic Mr.. Knox makes a radical
change in the meaning of the whole
| section. The reader will see at once,
by reading the whole law quoted, that
| if bond does not bear interest ct a
rate less then five per centum per
annum, the bank can not receive in notes
more than ninety per centum of the
| par value of the bond. But if bearing
| interest at rate less than five
per centum,. then they are entitled,
under the law, to ninety per cent,inl
| of the current market value of said
bonds. The privilege is confined tc
bonds drawing less than five per cen
tum, such as the 41's. How shall ]
characterize this feeble letter of the at
torney OF the associated banks? Mr.
| Knox says the statements in my Joliet
| speech ''are misrepresentation both oi
the law and the facts" Let an intelli
| gent public read his letter and the whole
law quoted above, and then Judge be
tween us. But how does Mr.. kno,
stand in this controversy? 1 convic
him of prevarication and of garbling ;
plain section of the statute under which
he holds his Office. Why did he om
the fourteen words? Can it be deniec
that they are important in ascertainins
the true meaning of the section?
But Mr.. Knox is troubled about green
back orators. Let him take copy o
the Chicago platform of 1880 and poin
out its fallacies, and what he says shall
be published in every Greenback news
paper in America, together with my an
swer to the same. Here, now, is al
opportunity for Mr.. Knox to deal tn
National party fatal blow. VIII h
improve it? Very truly yours,
j. B. WEAVER.