New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-30
ILLEGAL CERrIFICArIoN OF CHECKS.
me MATTER TOUCHED UroS ~ THE CONTROL
LERs REPORT
TBr TELEGRAPH TO THE TRIBUNE.l

HE MATTER TOUCHED UPoS ~ TIE CONTROL
LERs REPORT.
WASHINGTON, Nov. 29.-The completed an
rrnI pot ~ the Controller OF the Currency contains
cb1pfcr on the Illegal ccrtncation OF National ohpk
hcrE The Controller being In doubt TO the proper
cou.trucon Of section ~ Of the Act Of July H. lNS2
f.r the matter 20 tho Attorney General who rem
d.r.d nm opnion on November -, 1882 %. that Ma
tlonnI bank cannot legally accept checks drawn upon u
where the drawer hns not already deposited hcrcW''h W"
amount stated Ia the cncck and, (3 that inc uut III
,.cd by section 52O1 extends To liabilities hcuI"i ny
, crlacaton of checks. and that such accepanc" by
hank without the existence OF funds on deposit To an
,,,onnt exceeding IN the aggregate the amount Of It's
roId I'm cap.taI would be u violation of that section
Tho propo,on for the establishment OF misunderstanding
house such ns Is In operation IN LONDON N'mh' "''"'
and other largo cities In Europe. was tn the "''imo
brought forward and discussed. An organHail"" was
formed and tho plan was twice placed in operauon ana
i, il said 10y those who nrc well acquainted win ''h
transactions to have been practicable twaS ahanuoue"
,,,, the La, few weeks, chiefly II IL snid through IN"
,,r Of s0me OF tho banks and stock hroArI7 tn''
would diminish the magntnd" oI 'n'' "N
pc.. In the month OF August II WA r'n"r'u
that the failure OF firm Of brokers hAh tH'n'en
I'm loss to the stockholders Of the wall street Nhoa
rank by m overcorncatOn acceptance OF chccK7 "
IN ,o,npotiop OF this bank confirmed the rumor' aud
evidence OF au GENERALIZATION OF the cheoK"
o( a firm IN excess Of their ballnoo oil c'h on manu- W
tho amount ot 500 500 Tho Controller thcrehpoh' ON
s,,cucr Of addressed letter TO the Secretary ihclos
~ certified copy Of tho Examiners report with the re-
r,st that he woud transmit the same 10 tho Attorney
| General for hls action. This Information was SUM
hroupt 10 the attention Of the United states DStlcAt
torpcy m the City Of NcwYor the result OF winch was
the indictment of the teller OF the bank VINO "pP'i'u
hfore the United states Commissioner ana was he'u 10
| hail to ulead ut tho December term OF 'h'
! C,urt "A soon "a the proceeding became KNOW"
~ the bank II went into voluntary liquidation on Octooci
II and Immediately thereafter was converted mo
stae bank under the laws of the state OF Now-lork
Ibn trial under thia Indictment VIII teal tne law WIZ" w
r,,Irs ior line or hnb Irnt OF any OHlccl OF va
ni hank ynO shall certify checks III VlOlatioh VI S'e
| ION D. gOS, United state, Revised Statutes H., % q
This plOrcdug should result In the orfill,"n W ~
tork clearing house or other ncton ny 'o &C.
hoard and the banks, through whom nus MN r,, inr
80 - tr,nslrtcd which will render It. unnecessary 10.
H,n,I bDuk. to certify brokers checks or lch1 ln'h
r',, tor such large amounts In tho Ihluc', 80
sn,cfuly submitted that the law hS II nov" a., f,
n a criminal offence for an oilco 90 u uhih ="
ah.ck of dealer who may lntlN'l'"'.,
| oytr,rnw his account Tor low ,u,,,,'''' and
90 uaymrut OF AN ordinary ObllSaiIOHi "lu
il certainly shoud be amended 80 rs 10 eAni,P' irsd
binary business transactions nom the pcnallJ li"
I'm rnrl ,inr Controller Knox calls alichllou W Nv "a,
cr,,ul operation oil the stock clearing holSo r,,sj
All Iutubu uuutiu an assertion OF ne L'"d" L'"ID
that "A, a piece of time AMI LABOR slNllS 'ii,,, al
| h,. undoubtedly achieved success ana hPP,r' ~ mn
,itori arr icr of that journal, ddtcu OOV"oi i ,nnU
,h he saw, II appears that operations OF cQu' uia
,iI. with thO,c IN New York are successfully a "
although the settlements are made IOrthlshVJ' H'''
| IA