Savannah morning news. [volume] (Savannah) 1868-1887, 1885-02-11
BANK REFUsALs or SILVER.
Secretary McCullOch Replies to the In.
ferrngnfnrv RaanIntinr, nf tI,., Itnns.,

Secretary McCullOch Replies to the In
terrOgatOry Resolution of the House.
WASHINGTON, Feb. 10.-The Secretary
Of the Treasury to-day transmitted to the
House of Representatives in response to
| a resolution communication from the
Treasurer OF the United States relative to
| the alleged refusal of certain banks to e.
ceive silver dollars and certificates in set
| tlement of the balances. The Treasurer
says:
1T is not known to this Office that the Clear
ing House Association OF New )rk any
national bank, has since the passage of the act
| OF July, 1882, refused to receive silver dollars
| or silver certificates In settlement of their
| balances, or has at any time refused to re-
celve silver dollars or certificates from the
government Ia pay ment of balances due from
| the government to said association. The
| Treasury in January, 1879, became member
| OF the New ! ork Clearing House. a provision
having been inserted in the twelfth section of
the act OF July u, 1882, that no national bank
| ing association shall be a member of any
clearing house which such certificates
gold and silver shall not be receivable in
settlement of clearing house balances, the
associated banks of New York adopted the
following:
'ResoI0ed, That the resolutions adopted by
the Clearing House Association, Nov. u, 1878
be and are hereby modified so far as they con-
nlct with section y of the act of Congress
passed July y, 1852 "
4 uC ultluUtTb Ol the ClbdIl0R mousse nave
continued to settle their balance IN gold coin
or certificates or United States notes, and as
no silver dollars or silver certificates have
been rendered none have been refused.
THE TREAsURY's PRACTICE.
'The Treasury though not a party to anv
understanding that silver dollars or certf
Gates shall not be rendered, and though it has
never in any way waived the right to pay de
mands on 1t in any kind of money that may
be lawfully rendered, has cOnfOrmed to the
practice of the associated banks in paying
balances againsti at the clearing house. The
department has deemed il ineNpedient as
matter OF public policy to force the issue OF
silver dollars or certificates at the chief
financial centre of the country until compelled
to that step by the condition of the Treasury.
Silver certificates have recently been issued
in part payment of the days balance against
the Treasury, and have been accepted by the
clearing house. They will be again used
whenever the state of the funds in the Treas
ury may require 1t.
To the second portion of the resolution
as TO what amount of gold came into the
Treasury in exchange at par Tor silver dol
lars and certificates during the month
Of January, 1885, the Treasurer says: "There
was deposited with the Assistant Treasurer
at New York during January, 1885, $575, 900 in
gold for which drafts payable in silver Ger
ihcates by the Assistant Treasurer at New
Orleans were issued by the Treasurer.
OTHER PAYMENTS IN SILVER.
There was also received during the same
month $4,000 In drafts on New York, which
were cOIecIed through the clearing house. IN
exchange for which silver dollars were for
warded by the Treasury from the mints
These drafts, while not payable in gold, he
came equivalent to gold receipts by reducing
the balance against the Treasury at the New
York Clearing House. Exchange was made
at par. 1t Is not known that any other
amounts of gold came into the Treasury in
exchange for silver dollars or silver cerlii-
Gates"
In reply to another portion of the resolution
the Treasurer says: ''The Treasury not being
a member of any other clearing house than
that at New York has no authentic informa-
tiOn as to the rules or practice of other clear
ing houses in the receipt or payment of silver
dollars or certificates, 1t Is publicly reported
that silver certificates are accepted in settle.
ment of balances at the clearing house of Bos-
ton. Silver certificates are used in the pay
ment of public creditors, including national
banks, at all of the sub Treasures except New
York. This Office has no further information
as to the rule or practice of individual
national banks other than that con-
tanned in the resolution of the New York
Clearing House Association" In response to
that portion of the resolution asking for in
formation as 10 the amount of customs reve-
nues which have been received in silver coin
or certificates, the Treasurer submits a table
showing that during the 40 months beginning
January, 1881, $3.50, 900 in silver and $lS2, ,654,-
goo in silver certificates were paid In for Gus
toms duties.