Hon. Thomas E. Watson, New York.
Dear Sir: There it is, in Watson’s Magazine for January 1906, page 276. Report of Wm. H. English; “a large sum to our credit for lost and destroyed bills.”
Now the question I would ask—tried to ask once before, but failed to make it plain—is: By whose authority and to what extent or per cent. do National Banks profit by bills supposed to be destroyed through the carelessness of you and I and others, not accustomed to handling money?
We know many bills are lost, and it seems to me that, if the value cannot be restored to the original losers, it ought to result in profit to the general public, the Government. Why should the bank get any credit, did I not have to pay them for my loan?
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ANSWER
Referring to page 108 of November number of the Magazine, I find that our correspondent was informed that the Government made good to the National Banks all old notes which were worn out, mutilated or destroyed, and that this was done by virtue of Section 24 of the National Bank Law.
I really do not know how to give a plainer answer.
Old bank notes which become worn out, mutilated, or destroyed are replaced by new notes. The Comptroller of the Currency issues the new notes under and by virtue of the law. The entire National Bank act is a disgrace to the Statute Book, and section 24 is simply one of its clauses.