New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-25

SILVER CERTIFICATES AND THE BANKS.
THE ATTORNEY GENERALS OPINION MlsrNpEE
sTooD-AN EXPLANATION or THE
PRESENT SITUATION.
Editor Of The Tribune

To the Editor Of The Tribune.
Sir The Washington dispatch in our Wednesday
morning papers February o. quoting the Attorney
Generals opinion OF silver certificates aitribu'rI
the Treasury request for that opinion 20 "the dis
inclination OF National banks t. receive silver ccr-
,ihcates" This false notion seems To have obscurcd
the real point ana bettlcs the importance - The
opinion. judging from It's editorial treatment this
morning IN three of New-Yorks dallies.
The opinion is. in fact, the Attorney Generals
sanction of a rejection Of the United States silver
certificates officially by the presen, Assistant Trels-
urer at New-York when rendered by a Nationa.
bank as a deposit in withdrawal Of circulation
The Tribune well says that 1t will not be news to
the banks that silver certificates ARE not lawful
money" in the breadth Of the term. The gold
certificate and silver certificate precisely alike
in this particular in law.
The Attorney-Gen is reported as saying: In
my opinion they silver certificates are not lawful
money within the meaning Of Section Of the Act
Of June 20. 1871. and Section ~ the act Of July
r. 1sS2"
The following statutes appear to conflict WIN
this opinion: The afOr said Section 81 the
act Of July r. 1882, provides That any N"'oiii
banking association. now organized or hereafter
organized desiring to withdraw it, circulating notes
upon a deposit OF lawful money with the Treasurer
OF the United States. provided In section "l
the act of Jane % 1874 entitled An Act. etc, or
as provided in this act. is authorized 10 deposit
lawful money and withdraw propofionate aInoah,
OF the bonds held a. security for its circulating
notes." Section y provides that silver certificates
when held by any National banking association
shall be counted part Of i,s lawful reserve; ana
no National banking association snail De member
Of any clearing house in which such certificates
shall not be receivable in the settlement OF clearing
house balances" The act Of February y. ls's ap-
points the silver dollar 4 legal tender, Section ,
requires the redemption Of silver certificates IN
these dollars demand. and provides that such
certificates shall be receivable for customs. taxes
| and all public dues Section 8 OF IN" act Of
July a. 1880 provides that upon the passage Of this
the balances standing 10 the respective credits Of
| National banks for deposits. made 10 redeem IN"
circulating notes Of such banks. and all deposits
thereafter received for the Ike purpose shall De
covered in the Treasury as miscellaneous re-
ceipt and the Treasurer Of the United States shall
redeem from the general cash IN the Treasury the
! circulating notes Of said banks which may come
into his possession subject to redemption
From all OF which the inference IS legitimate the
Attorney General to the contrary nVtwlthst1nd-
! ing. that. being 'receivable for an pubic dues"
! the silver certificates are lawful money for
! those dues to the United states from National
banks, the payment OF which substitutes the United
States for the National bank the party liable for
the banks utstanding notes, or the National bank
ing system Is jeopardy. Three hundred ana thirty
million dollars Of silver certificates circulating
in and out OF banks. and the 40OyD0O silver dollars
afoat are available for
| WILLIAM T.. ST. JOHN.
New-York City. Feb. % 1894.