New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-16
DEALING WITH SILVER CERTIFICATES.
THE ACTION OF THE CLEARINGHOUSE associate!

DEALING WITH SILVER CERTIFICATES.
THE ACTION OF THE CLEARINGHOUSE ASSOCIATION
VIEWS OF BANKS.
| well-attended meeting of the Clearing House
Association was held Yesterday to consider what
action was necessary for the banks in view of the
clause relating TO silver certificates contained IN
| the new Bank Charter law. William DOwd, pres-
dent Of the Bank of North America took the chaif
in the absence of President +. ID. Tappau. The fol-
lowing resolution proposed by o. d. baldwin pres-
dent of the Fourth National Bank, and seconded by
George +. Baker president OF the First National
Bank, was unanimously adopted
Resolred That resolutions adopted by the Clearing
House Association 18th OF November, 1873, be
and hereby modified 80 far as they conflict with
2 OF the act of Congress passed July u, 1892
The resolutions referred to above were adopted
after a conference between several prominent bank
presidents and Secretary sherman, prior 10 the res
tOratlon of specie payments. They were intended,
according TO the open avowal OF the banks at the
time, % protect them from dealings IN SILVER dollars
except in special accounts. The resolutions pro-
vlded that after January l, 1879, the associated
banks of the city should:
Ql Decline receiving gold coins special deposits
but accept and treat theul a. lawful money
2) ADOllsh special exchanges Of gold checks at the
Cle1ring-dOuse.
81 Paw and receive balances between banks Clear
ing House either In god or United states letender
nOuA
"a Receive SILVER dollars upon deposit, only under
special contract 10 Withdraw the same IN kind
90 ProAb ments OF balances at Clearing House IN
silver certificates dollars excepting sub
slOlAry coin IA small sums-say under So
dealers Oh lst OF January next to terminate them.
Bank officers concede tuat tine intention of sec
ton 10 OF the new law was to compel National
banks 10 accept silver certificates on par with
gold through their settlement of Clearing House
balances. They claln however. that the law Is so
loosely worried that It's pernlclOus deslgG Will not
Carried out. The section authorizes the issue OF
certificates Uy the secretary OF he Treasury Tor
gold deposited with hin. With one exception the
language used after the first clause, II Is asserted
CD un.er all ru.es of grammar and logc,refer only
these gold certificates. Inc exception Is the sen
tence winch prOgides that " SAID certificates shall
Oe receivable for customs taxes and all public
dues. ana when SO received may be reiSSued aud
sucn certificates, also silver certificates when
neld by any National banking association, snail be
counted as part OF Its legal reserve The banks
tnat only M allowing silver certlhcateh 10 ne
used legal tn law, as IL Is framed, al
feet the pTesen pracLces OF the banks On account
of the ambiguity of lau guage of the law and In
| order TO protect their own pO-
sIIIon the Clearing House members yesterday de-
clned TO interpret the law, and worded their reso-
luton 50 as no speclnc mod lncatlOn OF their
acuOn OF November, lo1S, and yer allow for any
modification that 1t may De officially decided here
after the law requires. The ioilo"lng remarks Oh
a prominent Broadway bank president give the
genera sentiment OF bank officers expressed yes
| terdaV to a TRIBUNE reporter:
ne law will have little effect, practically, on
| the conduct of the banks They have few transac-
tiOns III silver cer,ircates, anH are hof IAely 10
have any more simply a result OF the law. mat
the object OF the advocates OF section II vas 10 IN
hIct a blow on the National banks is undoubtedly
true but they failed TO accomplish 10 ~ the
| wretched wording OF tue law No one can tell Just
exactly what the law means. Hence the BANKS
have decided 10 he the safe side, 10 formally an
nOunce tnen compliance with It, and then
10 let the future determine how III IS 10
be interpreted. AS there are several pro-
visions IN the resolutions of November, 1878,
il was thought best 10 modify no one IN particular
but TO modify all IN general way, IN so tar AS they
conflict with the new law For Instance, one OF our
OLD regulations forbIds the payment of balances be-
| tween National banks III anything except goa OF
legal-Iender notes. he new Law loroIds NdDonai
bank TO remain member OF 4 Clearinghouse in
which such meaning, assume, godI certneates
shall not he receivable the settlement OF clearing
house balances. Possibly the law may only require
the mOdi OF that particular regulation Oh No
vemOer 1875, winch have lnstanced, III addition
to allowing silver certificates TO be used as legal re-
serve-a privilege that Is not sought and that Will
not De used by The banks"
An officer OF the Clearing House Association said
Inc technical lOOseness the language OF the law
can be seen in Ito referring to National banks thai
may be members OF Clearing houses NOW, the
banks here are members of Clearing AssOcl-
alton. The clearinghouse Is simply me rooms n THIS
building where the clerical Work OF the association
Is zone IL Is the stones mortar and DICK OF the
building
The discussion at the meeting Of the banks yes
terday was brief and related soielv TO the proper
wording OF their resolution. The State banks cor
daily cooperated with the Natlonal banks, al
though the former are not necessarily affected by
the new law Except IL might affect them as mem
beers OF the Clearing House Association.