The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-08

gaining their old volume of business
are under discussion, but will require
some time for definite conclusions
The temporary scarcity of currency
is being met very generally, according
to reports reaching New York, by the
issue of printed certified checks or tenn
porary interest-bearing notes, and in
some cases by scrip issued by manu-
featuring and other non-banking cor
poraJiOns.
Scrip Resorted to in 1898.
This recourse was very generally re-
sorted to in the panic of 1893, and prac-
ticaIly no trouble arose from any such
issues. Most of the scrip issued at that
time was payable after a specified pc
riod, as ninety days or six months
but where issued by the banks with
support of the clearing house, usually
specified that the paper would be re-
ceived on deposit at clearing house
banks. Some question arose at that
time as to whether this paper would be
subject to the tax of 10 per cent i'm
posed upon the issue of notes to cir
culate as money by individuals or in
situations other than national banks.
The question was settled by Attorney
General Olney after the panic was
practically over, in an opinion of Nov.
q, 1893. The captions of that opinion
pretty We'll express its text-that 1.-THE
tax on state banks imposed by the act
of Feb. 8, 1875, chapter 80, section 49,
applies only TO promissory notes, and
not to other negotiable or quasi-nego-
table paper"
Not Notes, but Checks.
The attorney general advised that
rhraG n ha in 90
him We're plainly not notes, but checks
and might be left out of consideration
The test case was on certificate OF
the clearing house of Albany, Ga
which stated that there had been de-
post of securities to double the amount
of the obligation to the bank which
was responsible for the note. and that
these securities were deposited for the
payment to the bank or bearer in law
full money of the United States at six
months from date, or earlier, at the
option of said bank. The attorney gen.
eral not only laid down a rule that
such paper was not subject to the II
per cent tax, but he also cited the gen.
eral rule of law. which will undoubted-
ly afford an adequate protection for al
such use in the present case, that il
there is any doubt as to the meaning
of the statute imposing the tax. the
doubt must be resolved in favor of ex-
emption."
Depositors Paid Off.
The individual depositors of the
Trust Company of America. both al
the main and branch offices. were al
paid off today.
The board of directors of the jenkins
Trust company of Brooklyn, which
suspended over two weeks ago, today
issued a formal statement announcing
they are taking measures to insure its
reopening.
That the end of the movement of gold
from England to America has not beer
reached was shown today, when Gold
man, Sachef& Co. announced the en-
gagement of 81 $50 900 for import from
London. Kuhn. Loeb & Co. also an
nounced that they had secured $780, 900
in Europe. This makes the total for
the movement s3s.175.000
The Illinois Trust & Savings bank OF
chicago today engaged $500, coo gold for
import, and announced that it would
negotiate for 100000 additional
The sub-treasury today transferred
Tor banks currency to the amount OF
Sl'lS'OO0. OF this amount $S50,0O0 went
to San Francisco. 49,. 900 to Philadel-
Continued on Page 2.