Show bonds washington oct 30 attorney 9 general noral garland has ha harriton given iRiTon tin an ion ion to the secretary of the tha treasury that the national banks must depos it interest yielding bonds to secure their circulation and that the called three per cent bonila bonds cannot bo be used as a basis benaia of circulation the attorney generals Genoia ls opinion is ia na as follows Certa curtain irk three per cent bonds ut of the united states bolday its treasur er na as security for I 1 the ha circulation ot of north bond bend indiana ludin nn having boon been called in for redemption and ceased to be ba interest bearing the bank has been notified by the comptroller of the treasury to exchange these bonds for interesting bearing bonila bonds of the united states the bank in reply I 1 asks to know by what authority the demand has baa been made alleging that thai it has boa complied witti wit section 0 of the revised statutes by do da positing with the treasurer interest bearing bonda of the united suites states which are worth par an opinion ia le requested upon th tha 0 question thus presented namely whether tho the topping stopping of interest I 1 I 1 on the bonds bond je posited ted resulting gulting re from the call ot of the secretary of the tha Tre treasury mury authorized the comptroller of currency to re amro u tr e t the h a bank to substitute interest bearing 0 rift bondu bonds for the bonds now cow on aa deposits fositt it is not biou on to question that the bonds deposited by a bank k to secure its circulation must be interest bearing at the abo time the deposit is made on that point the lawis law is explicit it would seem to io be clear thet that whatever w purpose Cour ikea had in view in requiring the bonds 0 ads do deposited posited liy by the national banks to be inter inte erl reet bearing that purpose be has a continued the the same from the uret t law on the subject in down to ti the present time there being an absence of aar legislative do d cl of a change changa in dinten tion lion in that particular irk in to ro solving CK the question whether it is essential to valid deposits of bonds by a national bank that the bonds deposited should be interest bearing during daring the whole time of the deposit it may assist vs us to io yead the act of 1803 under which the national bank system ey stem was introduced in the light 0 of the tha circumstances in which it was passed tho the secretary had already niken men tinned the support to the public credit which inight be expected from tho the proposed associations the importance in por tancie of orthea this polut point may excuse some additional the ri au Izat ions am aa proposed ir if sane tio cloned by congress Cone reBa would require within tt a very low lew vi lars fur for deposit 0 as security for circulation bonds or I 1 tho he united states to ti nn n amount not less leas titan than it jt inay well I 1 inay I 1 bo be expected indeed since tile cincu L lation by uniformity in credit and value and tho the CAP capacity sellY or of quick and cht carup kap transportation will be likely to be used wre extensively than any hitherto issued that tile the demand for fm ands will compass this limit should see BOO fit to restrict the r 1 logo leto of deposit to the bunds bands e known wn V its j the five live twenties authorized by the act of the last fit A session the du do 11 manil ll I 1 would promptly absorb all of that description already issued anti and narke large room for lora a more steady market for the bonds banda A domand ALl w would i uld thus be e established shed and the negotiation of these bonds bonda tie be great rent ly facilitated but it is not iu in the results that the value of this thin support would bo bet chiefly seen there are who desire to sell securities of whatever kind it if the buyers are ar few or uncertain the market value must decline but the plan proposed would decrease tho the constant demand equalling and olten exceeding the supply thus thua a steady uniformity in price would bei ba arid generally at a rate somewhat soine what above those of bonds of equal a I 1 credit but out act avil lable to thy associations it ii 14 I i not ailsy to appreciate the full belie beneata be niata fiti of guati tl conditions to it government obliged to sorrow borrow there fur arrived at that hint it was the intention of congress 11 by tile the national banks should be kept interest intel cat bearing during the whole li kile period of tile the deposits if correct would soom to bo be rendered absolutely cartain by the act july 1882 to Tuena enable blu notional national backing associations to extend I 1 their heir corporate cor ponte and for other section 0 9 provides Tha tany ahny national bank may on depositing the lawful money will tho the treasurer of the united states wAlid rasy a proportionate Ril lount 0 af f its 14 bongsun boni laun deposit depos lt 1 however to fie 1 I that not more ih than it trinh rc 4 willi uns of dollars shall be ba depo depool aUed ted any calendar tit lir for ahli and to the tha further proviso that the provid section shall ahall not apply to bondi fur air by the lie iho of th the to the withdrawal cotea in thereof ThI slark leaves no douht that it wite the intention of congress that where boudi bout deposited to secure tile the afa bunk batik fire called for of them thein In impalli palli the retiring of the itie circulation they secure unless indeed the ho bank ui ai I 1 t may lawfully do wake a now deposit of art an adequate amount of interest bearing bonu bondi i it follows then that unless a i the tha first national Nati unal bank bend substitutes in herpst bearing hoods lioti cli fur the existing of for rodaina shuntae shun the tho proceeds of the ibe bitter t be applied to the retiring n secured by it signed Sl ened A 11 GARLAND 11 |