Evening star., 1923-10-31
WOULD CLOSE BANK
| FOR MARK draft
Local Lawyer Says Law Vio-
I lated by Issuing Check on
German Paper.

A situation unique in the history
of modern banking has arisen with
Walter Holland, Washington attor-
ney. seeking revocation of the Com
mercial Banks charter on the ground
that 1T refuses to deposit at their
par value ten million German marks.
purchased of it by him. The par
value of the marks would be $2,3S3.-
900. The institution, he asserts in a
protest filed with the office of the
controller general of the Treasury,
act, which will compel every national
bank in the country which has
passed German marks over its count
ers to redeem them at par.
The subject of Hollands Protest
is section 5206 of the act. which is
entitled, prohibition against under
current notes" The section reads:
No association shall AT any time
pay out on loans or discounts, in
purchasing drafts or bills of ex-
charge, or in payment of deposits, or
In any other way pay or put in cir
Culation the notes of any bank or
banking association which are not,
at any such time, receivable, at par,
on deposit, and in payment of debts
by the association so paying out or
circulating such notes; or snail any
association knowingly pay out or
put in circulation any notes issued
by any bank or banking association
which at the time of such paying
out or putting in circulation is not
redeeming its circulating notes in
lawful money of the United States.
Purchase of Marks.
Events leading up to the controversy
are as follows: On August II Holland
purchased from the Commercial Ma
tional Bank it's draft drawn on the
Direction der Disconto Gesellschaft,
Berlin, Germany, for 100000 rks,
paying the bank therefor $3.50.
On October Is last Holland came
into the Commercial National and
presented two deposit tickets TO the
receiving teller's window, made out
for $2,3S2. 900. according to the banks
recollection. along with the CONNER
Cial National Banks check on Berlin
for 0,000. 900 marks.
The receiving teller, not under
standing just what Holland wanted
TO do, referred him to one of the
officers. Holland told this officer
that marks were worth 1882 cents
each. and that he wished to deposit
the banks draft to his credit at this
rate of exchange.
He was then ask ed II the draft had
been presented in Berlin. and replied
that it had not. Upon being informed
the check was payable in Berlin he
replied that there was no use in pre-
senting it there because he had posi-
tive knowledge that the bank In
Germany was not in a position, legal
ly, to honor it. Holland then asked
if the bank would redeem the draft
for $2,382.00O, and upon being in
formed that it would not, he went
away.
On the following morning the bank
received notice of protest of its check
(the draft on Berlin) for 100000
marks, the notice of protest being
signed by F. T. Stephenson, notary
public, who showed on his notice that
he was entitled to fees amounting to
$357,301.11, this sum representing Is
per cent of the protest. The bank
took the matter up with it's attorney,
who suggested that they obtain TO-
600, 900 marks. German currency, and
tender 1t to Holland in place of its
check. This was done and Holland
returned the check to the bank and
accepted the paper currency.
1t is understood Holland holds sew
eraI other local bank checks of a SIM
liar kind.
Washington bankers are inclined
to regard the protest as joke.