New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-25
THE ACCEPTANCE OF CHECKS.

THE EATToRNEY-GENBRAL ASKED FOR AN OPINION ON
THE QUESTION HOW FAR NATIONAL BANKS NAY
GO IN THE PRACTICE
Br TELEGRAPH TO THE TRIBUSE.l
WASHINGTON, Nov. 24.-The great extent to
which the certifcation acceptance" ofthecks
was carried during the estock furry inNew-York re-
Gently, has attracted attention here and revived in
terest in the recent call Of the Controller OF the
Currency upon the Attorney General for an opinion
upon the subject. The Bank Charter act of las
session made it a misdemeanOr punishable
by fine of not more than $1,000 imprisonment
of not more than five years. or both for any
officer clerk agent of National bank TO certify
check which did not represent an equal amount OK
money on deposit. 70 do his already unlaw-
ful, but it had not been made criminal.
The banks have since adopted the practice Of
accepting" the checks instead of certifying them.
They rely the fact that snch acceptances not
specially forbidden in the law and claim the right
10 make them under the powers conferred upon
them III the banking act "To make contracts" I" and
to exercise AL such incidental powers as shall be
necessary to carry the business of banking The
Attorney General has given Iniimation of his prob
able decision but to lie expected that be will
decide tn It such acceptances not in themselves
violations of the law against Over-certiiications.
and that the officers aud employees of the banks
cannot therefore be made crimnally liable.
But that does not end the matter The Controller
submitted three questions to the Attorney General.
The first was whether the banks ha / the tight to
make such acceptances. The second question was:
"If National bank has the power TO make such
an acceptance would such an acceptance at q time
when the money was not ION deposit to
the credit of the drawer be a liza
blty to il for money borrowed, and such
be required 10 be limited to onetenth of the psidiD
.l HAIL ~. Had .t~e ftnn
Uaited States Revised Statutes" The third in-
quiry was " If National bank has the power to
accept such checks. equal in amount in any one
case to one tenth ~ its capital, would the accept
ance of any number of such checks to an amount
exceeding in the aggregate the amount OF its paid
in capital be in violation of section 5,202 United
States Revised Statutes ~
Section 5000 provides that the total La
bilites to any National bank of any per-
son or OF any company corporation
or firm for money borrowed shall at no time exceed
one-teuth of the capital paid III. Section 5,2O2 pro-
vides that bank shall ne indebted or aOie TO an
amount exceeding the amount OF capital actually
paid ILL., except on account OF notes OF crcniitlon.
moneys deposited with or collected by the banks,
bills of exchange or drafts drawn against money
actually deposit and liabilities To stockholders
for dividends and reserved profits. IL is clear then,
that while the acceptance OF checks which do not
represent de posits may be decided To be MT ualaw-
iul, yet the acceptance OF checks nom any
tenth of the capital stock or the acceptance OF
cheS ks amounting IN all To more than the capital
stock may b. unlawful. and it is expected that tho
Atrorney-General Will 10 decide. The penalty IN
this case would be forfeiture of the charter
aud liquidation. either voluntary or through a re-
ceiver.
Cne Attorney y General has been giving ms per-
sonal attention TO this question since his return,
and his opinion looked for daily. The Con-
troer's report, which will discuss the subject
at some length will probably be gwen TO the pa
pers on Monday.
BOURBON FRAUDS IN SOUTH CAROLINA.
A REPORT THAT THE INDEPENDENT CANDIDATE FOR
GOVERNOR WILL CARRY THE CONTEST INTO
THE COURTS.
fBY TELEGRAPH TO THE rRiBUSE.l
WASHINGTON Nov. pa. III. McLane, lDdepend-
ent candidate for Governor of South Carolina, and
his counsel, ex-Judge Willard. were in Washington
few DAYS ago for the purpose Of consulting with
the Attorney General. Their business with him
was not learned at the time, but IL has since been
learned that it Is proposed to bring suit IN tho