Full text of The National-Bank Act as Amended, The Federal Reserve Act, and Other Laws Relating to National Banks

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66TH CONGRESS

2D SESSION

DECEMBER 1, 1919-JUNE 5, 1920

SENATE DOCUMENTS

V ol . 6

WASHINGTON

GOVERNMENT PRINTING OFFICE

1920

6 6 t h C o n g r e s s '!

2d Session

SENATE

/ D ocum ent

1 Xo. 216

THE NATIONAL-BANK ACT
AS AMENDED

THE FEDERAL RESERVE ACT
ANl)

OTHER LAWS RELATING TO
NATIONAL BANKS

Complied under the direction of the Comptroller o f the Currency

FEBRUARY, 1920
i

WASHINGTON
GOVERNMENT PRINTING OFFICE

1920

SENATE RESOLUTION 298.
Reported by Mr. Moses.

the

S e n a t e o f t i ie U n it e d S t a t e s ,

February 6 , 1920.
Resolved, That there be printed one thousand five hundred copies
of the national banking act as amended to date for the use of the
Senate document room.
A ttest:
G e o r g e A. S a n d e rs o n ,
Secretary•

CONTENTS.
rage.
Dates of acts relating to National Banks_________________________________
National-bank act and acts amendatory thereof and supplementary thereto
Bureau of Comptroller of the Currency----------------------------------------------Organization and powers--------------------------------------------------------------------Obtaining and issuing circulating notes----------------------------------------------Regulation of banking business----------------------------------------------------------Dissolution and receivership__________________________________________
Federal reserve act________________________________________________________
Acts of a general nature and sections of the Revised Statutes not included
in national-bank act affecting national banks-----------------------------------------Special acts relating to national banks____________________________________
Opinions of Attorney General on guaranty laws of Oklahoma and Kansas
and on the insurance of bank deposits__________________________________
Index to national-bank act and general and special acts__________________
Index to Federal reserve act______________________________________________
Index to sections of Revised Statutes---------------------------------------------------------

5
11
10
49
CO
00
117
isi
^07
215
221
273
302

DATES OF ACTS RELATING TO NATIONAL
BANKS.
THE NATIONAL BANK ACT AND ACTS AMENDATORY THEREOF AND SUPPLEMENTARY
THERETO.

Page.

Feb. 25,1863. An act to provide a national currency secured by a pledge
of United States stocks, and to provide for the circula
tion and redemption thereof_______________________________181
June 3,1864. Act of February 25, 1863, repealed and reenacted with
certain amendments______________________11-113,131,181,182
Mar. 3,1865. State banks converted may retain and keep in operation
branches_________________________________________________
43
Mar. 3,1865. Issue of circulating notes. See note under section 5171____
59
Feb. 5,1867. Penalty for imitating bank circulation___________________ 66,178
Mar. 2,1867. Refunding excess tax______________________________________
94
Feb. 10,1868. Taxation of shares of national-bank stock_________________
95
Feb. 19,1869. Prohibiting loans on United States or national-bank notes,
or withholding such notes from use_____________________
85
Mar. 3,1869. Reports of condition, and earnings and dividends_____ 90,91,92
Mar. 3,1869. False certification of checks_______________________________
86
Apr. 6,1869. Penalty for embezzlement, abstraction, etc________________
87
July 8,1870. Penalty for embezzlement, abstraction, etc________________
87
July 12,1870. Issue of circulation redeemable in gold___________________ 65, 80
July 14,1870. Liquidating banks to retire circulation____________________
100
Mar. 1,1872. Leavenworth struck out as reserve city___________________
72
June 8,1872. Certificates of deposit for United States notes (repealed
80
Mar. 14, 1900)___________________________________________
Feb. 19,1873. Reports of State banks____________________________________
13
Mar. 3,1873. Examination of plates and dies___________________________
62
Mar. 3,1873. Assessment for impairment of capital_____________________
83
Mar. 3,1873. Use of the word “ national ” _______________________________
113
June 20,1874. Fixing the amount of United States notes, providing for a
redistribution of national-bank currency________ 20,61, 77,102
June 23,1874. Maceration of United States and national-bank notes______
64
June 23,1874. Stamps on bank checks. Repealed March 3, 1883.
Jan. 14,1875. Aggregate amount of circulation not limited______________
63
Jan. 19,1875. Circulating notes of national gold banks__________________
64
Feb. 18,1875. Correcting errors and omissions in the Revised Statutes—
13,
14, 63, 81,101,103
Feb. 19,1875. Appointment and compensation of bank examiners________
112
11
Mar. 3,1875. Salary of Comptroller_____________________________________
Mar. 3,1875. Distinctive paper for printing notes________________________
61
Mar. 3,1875. Clerical force for redemption of circulating notes________
78
June 30,1876. Assessment for failure to pay up capital stock or for im
pairment of capital; receivers, appointment of
83,107-110
Feb. 27,1877. Examination of plates and dies___________________________
62
Feb. 27,1877. Reports to Comptroller____________________________________
91
Feb. 27,1877. Destruction of redeemed notes______________________________
102
Mar. 1,1879. Semiannual duty, abatement of____________________________
94
Feb. 14,1880. Conversion of gold banks__________________________________
65
Feb. 26,1881. Verification of returns of national banks__________________
91
July 12,1882. Corporate existence, extension of__________________________ 28-31
July 12,1882. Issue of gold certificates___________________________________
85
July 12,1882. Punishment for falsely certifying check__________________
86
July 12,1882. Retirement of circulating notes___________________________ 55, 56
Mar. 3,1883. Capital and deposits, repealing tax on_______________ 91,176,178
Mar. 29,1886. Insolvent banks, protection of assets by use of trust
funds__________________________________________________110,111

DATES OF ACTS RELATING TO NATIONAL BANKS.
Page.

May
Mar.
Mar.

1,1886. Increase of capital stock, change of name or location___ 27,28,34
3,1887. Courts, jurisdiction of______________________________________
28
3,1887. Reserve and central reserve cities, providing for additional,
etc____________________________ 1_________________________ 70-73
Aug. 13,1888. Courts, jurisdiction of______________________________________
28
July 14,1890. Disposition of redemption account_________________________
79
July 28,1892. Stolen or lost national-bank notes, redemption of___________
79
Aug. 3,1892. Agent of shareholders of national bank, appointment o f ;
amends act of June 30, 1876_____________________________
108
Jan. 12,1895. Annual Report of Comptroller of the Currency, printing of_
15
Mar. 2,1897. Appointment and qualification of shareholders’ agent;
amends acts June 30, 1876, and August 3, 1892________
108
Mar. 14,1900. Authorizing banks with minimum capital $25,000; bonds,
circulation, taxation, etc_____________________________ 32,60, 92
Mar. 3,1901. National-bank depositaries_________________________________
42
Apr. 12,1902. Authorization of reextension of charter____________________
32
Apr. 28,1902. Annual Report of Comptroller to contain information re
garding failed banks, list of employees, etc_____________
14
Mar. 3,1903. Additional reserve cities; minimum population, 25,000____
72
35
Feb. 28,1905. Qualification of directors, banks with capital of $25,000____
Dec. 21,1905. Taxation of circulation based on Panama Canal bonds____
51
June 22,1906. Amendment section 5200, loan limitation_________________
81
Jan. 26,1907. Political contributions prohibited__________________________
87
Mar. 4,1907. Additional copies of Report of Comptroller________________
15
Mar. 4,1917. Public depositaries_______________________ _________________
42
192
Gold certificates and United States notes, issue of________
Limitation on withdrawal of circulation; consent of Comp
troller of Currency and the Secretary of the Treasury
necessary--------------------------------------------------------------------------56
May 22,1908. Additional Deputy Cmptroller______________________________
12
May 30,1908. Authorizing National Currency Associations, the issue of
additional bank circulation, and creating a National Mon
etary Commission. Expired June 30, 1915.
Mar. 4,1909. Codification of criminal laws______ 66,179,182,185,186,187,188
Mar. 4,1909. Additional Deputy Comptroller_____________________________
12
Oct. 15,1914. Interlocking directorates------------------------------------------------------ 35-39
May 15,1916. Amending act of October 15, 1914, relating to interlocking
directorates______________________________________________
36
May 15,1916. Authorizing the deposit of funds of insolvent banks in any
regular Government depositary__________________________
105
Sept. 7,1916. Amending laws in reference to real estate loans, reserves,
acceptances, and foreign branches, and authorizing bank
to act as insurance agent and as agent in procuring loans
on real estate____________________________________ 21, 23, 24, 25
Apr. 24,1917. No reserve required to be held against United States de
posits-------------------------------------------------------------------------------77,190
Oct. 5,1917. Limit of issue of notes under $5______________ ____________
62
Apr. 5,1918. Liabilities incurred under war finance act, excepted from
restrictions of section 5202______________________________
85
May 22,1918. Authorizes contributions to Red Cross during period of the
war_______________________________________________________
198
Sept. 24,1918. Amend section 5200, Revised Statutes. Limitation of lia
bilities that may be incurred by any one person________
81
Sept. 26,1918. Trust company powers of national banks. Reserve require
ments. Amends section 5208, penalty for falsely certify
ing checks. Amends section 5209, penalty for embezzle
ment, abstraction, willful misapplication, false entries,
etc. Amends section 22. Federal reserve act____ 24, 75, 86, 87
Nov. 7,1918. Consolidation of national banks-----------------------------------------100
Mar. 3,1919. Amends section 5172, printing denomination and forms of
circulating notes_________________________________________
61
Oct. 22,1919. Amending sections 5200 and 5202, U. S. R. S----------------------- 81, 87
Jan. 13,1920. Amending section 5182, U. S. R. S__________________________
63

DATES OF ACTS RELATING TO NATIONAL BANKS.
THE FEDERAL RESERVE ACT.

7
Page.

Dec. 23,1913. Providing for the establishment of Federal reseve banks,
to furnish an elastic currency, to afford means of redis
counting commercial paper, to establish a more effective
supervision of banking in the United States, and for
other purposes__ 11, 21, 22, 23, 25, 34,41, 42,43, 50, 56-58, 74-76,
83, 87,88, 89,112,117-177,189
Aug. 4,1914. Amending section 27 of the Federal reserve act and section
9 of the act of May 30, 1908, relative to issuance of addi
tional circulation_____________________________________ 175,176
Aug. 15,1914. Amending section 19 of the Federal reserve act in reference
to reserve requirements________________________ 75, 76,159,160
Mar. 3,1915. Amended paragraphs 3, 4, and 5 of section 13 of Federal re
serve act superseded by act of September 7, 1916______ 22,145
Sept. 7,1916. Amends sections 11, 13, 14, 16, 24, and 25 of the Federal re
serve act and section 5202, United States Revised Stat
utes_______________ 21, 22, 23, 25,143,144,145,146,147,149,165
June 21,1917. Amends sections 3, 4, 9, 13, 14, 16,17, 19, and 22 of the Fed
eral reserve act___ 22, 50, 74-76, 87, 88, 89, 90,123,128,132-135,
143,145,148,149,150,151,152,155,156,159,160
Sept. 26,1918. Amends section 22, Federal reserve act____ 24, 75, 85,86,87, 88,
90,127,140,153,159,162,163,164
Mar. 3,1919. Amends sections 7, 10, and 11, Federal reserve act__131,136,142
Sept. 17,1919. Amending section 25, Federal reserve act_________________ 25,165
Dec. 24,1919. Amending section 25, Federal reserve act__________________
167
ACTS OF A GENERAL NATURE AFFECTING NATIONAL BANKS.

Feb. 21,1857.
July 7,1838.
June 30,1864.
Mar. 3,1865.
July 13,1866.
Mar. 26,1867.
June 6,1872.
Dec. 24,1872.
Feb. 8,1875.
Feb. 18,1875.
Mar. 1,1879.
Feb. 25,1862.
Mar. 3,1863.
Mar.

3,1864.

June 3 0 ,18G4.
Jan. 28,1865.
Mar.

3,1865.

July 14,1870.
Aug. 13,1894.
July 17,1862.
Feb. 21,1.857.
July 17,1861.
Feb. 12,1862.
Feb. 25,1862.
Feb. 25,1862.
Mar. 17,1862.

Foreign coins______________ *________________________________
186
Issuing circulation of expired association_________________
194
Taxation of State banks_________________________________ 183,184
Taxation of State banks_________________________________ 182,184
Taxation of State banks___________________________ 182,183,184
Taxation of State banks___________________________________
183
Taxation of State banks___________________________________
183
Taxation of State banks________________________________ 183,184
Taxation of State banks..
_____________________________
183
Taxation of State banks___________________________________
184
Taxation of State banks___________________________________
185
Taxation of notes and certificates of United States circulat
ing as currency_________________________________________
185
Taxation of national-bank notes and notes and certificates
of United States circulating as currency_______________
185
Taxation of national-bank notes and notes and certificates
of United States circulating as currency_______________
185
Taxation of national-bank notes and notes and certificates
of United States circulating as currency_______________
185
Taxation of national-bank notes and notes and certificates
185
of United States circulating as currency_______________
Taxation of national-bank notes and notes and certificates
of United States circulating as currency_______________
185
Taxation of national-bank notes and notes and certificates
185
of United States circulating as currency_______________
Taxation of national-bank notes and notes and certificates
of United States circulating as currency_______________
185
Restriction on notes less than one dollar_________________
185
Foreign coins not legal tender____________________________
180
Demand Treasury notes legal tender same as United States
notes_____________________________________________________
187
Demand Treasury notes legal tender same as United States
notes___________________________________________________ 186,187
Demand Treasury notes legal tender same as United States
notes___________________________________________________ 186,187
United States notes legal tender except for duties on im
ports and interest on public debt________________________
187
Demand Treasury notes legal tender same as United States
notes_____________________________________________________
187

DATES OF ACTS RELATING TO NATIONAL BANKS.
Page.

July 11,1862. United States notes legal tender except for duties on im
ports and interest on public debt________________________
186
Jan. 17,1863. United States notes legal tender except for duties on im
ports and interest on public debt________________________
187
Mar. 3,1863. United States notes legal tender except for duties on im
ports and interest on public debt________________________
187
Mar. 3,1863. Interest-bearing notes legal tender to same extent as United
States notes_____________________________________________
187
June 30,1864. Interest-bearing notes legal tender to same extent as United
States notes_________ ____________________________________
187
Feb. 12,1873. Gold coins of United States legal tender__________________
186
Feb. 12,1873. Minor coins of United States legal tender to amount of
twenty-five cents________________________________________
186
Feb. 28,1878. Standard silver dollar legal tender________________________
186
Feb. 28,1878. Silver certificates___________________________________________
199
June 9,1879. Subsidiary silver coins legal tender to amount not exceed
ing ten dollars___________________________________________
186
Mar. 3, 1887. Silver certificates__________________________________________
199
July 12,1882. Gold certificates, for what receivable______________________
187
July 1,1902. Philippine coinage__________________________________________
186
Mar. 2,1903. Philippine coinage_________________________________________
186
195-201
Mar. 14,1900. Currency act_________________________________________ _
Mar. 4,1907. Amending national-bank act_____________________________ 198, 201
June 14,1866. Government depositories__________________ .______________ 188,191
June 8,1872. Government depositories___________________________________
188
Mar. 3,1873. Government depositories___________________________________
188
Feb. 27,1877. Government depositories___________________________________
188
Feb. 3,1879. Government depositories___________________________________
191
Mar. 2,1907. Government depositories___________________________________
188
May 27,1908. Government depositories___________________________________
188
Mar. 4,1909. Misappropriating postal funds_____________________________
189
Mar. 4,1909. Government depositories___________________________________
191
Feb. 25,1863. Counterfeiting national-bank notes________________________
192
June 3,1864. Counterfeiting national-bank notes________________________
192
June 30,1864. Forging or counterfeiting United States securities________
192
June 30,1864. Using plates to print without authority____________________
192
Feb. 5,1867. Penalty for taking unauthorized impression of tools having
such impression or dealing in counterfeit circulation____
194
Mar. 4,1909. Counterfeiting national-bank notes_________________ 192,193,194
June 30,1876. Fraudulent notes to be so marked by United States officers
and officers of national banks____________________________
195
Aug. 5,1909. Panama Canal bonds, issue of, authorized at 3 per cent___
201
Mar. 2,1911. Panama Canal bonds under act of August 5,1909, not avail
able as security for circulation_________________________
203
Mar. 2,1911. Issue of gold certificates on deposit of foreign coin or
bullion___________________________________________________
198
Mar. 2,1911. Certified checks drawn on national and State banks receiv
able for duties on imports and internal taxes________ 198, 203
Mar. 3,1911. Jurisdiction of United States district courts_______________
181
Mar. 3,1913, Certified checks on national and State banks and trust
companies receivable in payment for duties on imports,
internal taxes, and all public dues______________________
204
198
June 12,1916. Issue of gold certificates-----------------------------------------------------July 17,1916. Government deposits in Federal land banks_______________
190
Apr. 24,1917. Deposit of proceeds arising from sale of bonds. No reserve
required to be held against United States deposits______
190
May 22,1918. National banks authorized to subscribe to American Red
Cross during the w ar___________________________________
204
187
Dec. 24,1919. Gold certificates made legal tender________________________
SPECIAL ACTS RELATING TO NATIONAL BANKS.

Apr. 12,1900. National banking laws extended to Porto Rico_____________
207
Apr. 30,1900. National banking laws extended to Hawaii________________
207
Feb. 26, 1913. Granting Fifth-Third National Bank of Cincinnati charter
208
No. 2 0 ___________________________________________________
Fifty-seven acts changing the location or name, or both, of various na
tional banks___________________________________________ 208-211

BUREAU OF THE COMPTROLLER OF THE
CURRENCY.

THE NATIONAL-BANK ACT AND ACTS AMENDATORY THEREOF
AND SUPPLEMENTARY THERETO.
C H A P T E R I.
BUREAU OF THE COMPTROLLER OF THE CURRENCY,

100. 324. Bureau of the Comptroller of
the Currency.
101. 325. Comptroller of the Currency.
102. 326. Qualification of Comptroller
of the Currency. Amount
of bond.
103. 327. Deputy Comptroller of the
Currency.
104. Additional Deputy Comptroller of
the Currency.
105. 328. Clerks.
106. 329. Interest in national banks
prohibited.
107. 330. Seal of Comptroller of the
Currency.
108. 331. Rooms, vaults, and furniture
for Currency Bureau.
109. 332. Banks other than national in

110.
111.

112.
113.

District of Columbia. (See
sec. 714, Code District of
Columbia.)
333. Report of Comptroller.
Act April 28, 1902. Report of
Comptroller to give com
plete list of all employees
of the office, information
about failed banks, em
ployees under receivers,
etc.
Act January 12, 1895. Number of
copies of report to be
printed.
Joint resolution March 4, 1907.
Three thousand additional
copies authorized to be
printed.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

100. Sec. 324.— There shall be in the Department o f the lg^ct Jun®0|*
Treasury a bureau charged with the execution o f all law sSec. i ; 13 stat!
passed by Congress relating to the issue and regulation o f L,,Ac?; Dec. 23,
a national currency secured by United States bonds and, i|i3,g sec. ‘ 10 ■
under the general supervision o f the Federal Reserve 260. a *
Board, o f all Federal reserve notes, the chief officer o f
which bureau shall be called the Comptroller o f the Cur
rency and shall perform his duties under the general
directions o f the Secretary o f the Treasury.
COMPTROLLER OF THE CURRENCY.

101. Sec. 325.— The Comptroller o f the Currency shall lg^ t ^une10^
be appointed by the President, on the recommendation o f sec. 1’ ; 13 stat!
the Secretary o f the Treasury, by and with the adviceL'A?t* Mar. 3,
and consent o f the Senate, and shall hold his office for the
g1^
term o f five years unless sooner removed by the Presi-l',* 398.
dent, upon reasons to be communicated by him to the
Senate; and he shall be entitled to a salary o f five thou
sand dollars a year.
N ote.— Section 10 of the Federal reserve act provides that the
Comptroller of the Currency shall be an ex officio member of the
Federal Reserve Board and shall, in addition to his salary as
Comptroller, receive the sum of $7,000 annually for .his service 011
said board.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

QUALIFICATION OF COMPTROLLER OF THE CURRENCY.
AMOUNT OF BOND.

i8^ct cuni 06
®ec*
Comptroller o f the Currency shall,
i ; 13 stat! within fifteen days from the time o f notice o f his appoint1., 99.
ment, take and subscribe the oath o f office; and he shall
give to the United States a bond in the penalty o f one
hundred thousand dollars, with not less than two respon
sible sureties, to be approved by the Secretary o f the
Treasury, conditioned for the faithful discharge o f the
duties o f his office.

sec.

DEPUTY COMPTROLLER OF THE CURRENCY.
Act June 3,

sec64i ;
L » "•

13 stat!

103. Sec. 327.— There shall be in the Bureau o f the
Comptroller o f the Currency a Deputy Comptroller o f the
Currency, to be appointed by the Secretary, who shall be
entitled to a salary o f twTo thousand five hundred dollars
a year, and who shall possess the power and perform the
duties attached by law to the office o f Comptroller dur
ing a vacancy in the office or during the absence or ina
bility o f the Comptroller. The Deputy Comptroller shall
also take the oath o f office prescribed by the Constitution
and laws o f the United States, and shall give a like bond
in the penalty o f fifty thousand dollars.
N ote.— The salary of the Deputy Comptroller has been fixed at
various amounts by different appropriation bills, as follows: Act
March 3, 1875 (sundry civil bill), 18 Stat. L., 398, $3,000; act
March 3, 1901, 31 Stat. L., 978, $2,800; act March 18, 1904, 33
Stat. L., 103, $3,000; act February 3, 1905, 33 Stat. L., 649, and all
subsequent acts, $3,500.

ADDITIONAL DEPUTY COMPTROLLER OF THE CURRENCY.

Act May 22, 104. Deputy Comptroller, $3,500; Deputy Comptroller,
1., 203.
a *$3*000, who shall be appointed by the Secretary o f the
iooo* 3sastat! Treasury, and shall possess the power and perform the
1., 867.
duties attached by law to the office o f Comptroller dur
ing a vacancy in the office o f Comptroller and Deputy
Comptroller or during the absence or inability o f the
Comptroller and the Deputy Comptroller, and said assist
ant Deputy Comptroller shall give a like bond in the pen
alty o f fifty thousand dollars.
N ote.— The additional Deputy Comptroller was first provided
for in the act of May 22, 1908.

CLERKS.
Act June 3,
105. Sec. 328.— The Comptroller o f the Currency shall
sec^i; ct3 s\at! employ, from time to time, the necessary clerks, to be
1., loo,
appointed and classified by the Secretary o f the Treas
ury, to discharge such duties as the Comptroller shall
direct.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

INTEREST IN NATIONAL BANKS PROHIBITED.

106. Sec. 329.— It shall not be lawful fo r the Comptrol- Act June 3,
ler or the Deputy Comptroller o f the Currency, either sec. i ; 13 stat!
directly or indirectly, to be interested in any association L*» 10°issuing national currency under the laws o f the United
States.
N ote .— Section 10 of the Federal reserve act provides in part
that no member of the Federal Reserve Board shall be an officer
or director of any bank, banking institution, trust company, or
Federal reserve bank, nor hold stock in any bank, banking institu
tion, or trust company. As the Comptroller of the Currency is a
member of the board, he is thus prohibited from being connected
as an officer or shareholder with any bank, banking institution,
or trust company, whether State or national. It would appear
that under section 329 a Deputy Comptroller of the Currency
would be prohibited from being interested not only in any national
bank but in any State bank that should become a member bank
and a shareholder in one of the Federal reserve banks.

SEAL OF COMPTROLLER OF THE CURRENCY.

107. Sec. 330 [as amended 1875].— The seal devised b y lgAct June 3,
the Comptroller o f the Currency for his office, and ap- sec. &; 13 stat!
proved by the Secretary o f the Treasury, shall continue to L*Act.°Feb. is,
be the seal o f office o f the Comptroller, and may be re3U 1®
newed when necessary. A description o f the seal, with a ’ ’*
an impression thereof, and a certificate o f approval by the
Secretary o f the Treasury, shall be filed in the office o f
the Secretary o f State.
ROOMS, YAULTS,
BUREAU.

AND

FURNITURE

FOR

CURRENCY

108. Sec. 331.— There shall be assigned, from time to Act June 3,
time, to the Comptroller o f the Currency, by the Secretary g|c64^. c13 g^at.
o f the Treasury, suitable rooms in the Treasury building L*» 10°for conducting the business o f the Currency Bureau, con
taining safe and secure fireproof vaults, in which the
Comptroller shall deposit and safely keep all the plates
not necessarily in the possession o f engravers or printers,
and other valuable things belonging to his department;
and the Comptroller shall from time to time furnish the
necessary furniture, stationery, fuel, lights, and other
proper conveniences for the transaction o f the business o f
his office.
109. Sec. 332.—
Refers entirely to banks other than national in the District of
Columbia and is incorporated in section 714 of the Code of the
District of Columbia and has been repeatedly amended.

REPORT OF COMPTROLLER.

110. Sec. 333 [as amended 1875].— The Comptroller o f
the Currency shall make an annual report to Congress, at
the commencement o f its session, exhibiting—
First. A summary o f the state and condition o f every Act June 3,
association from which reports have been received th e }I64,stat 6l.|
preceding year, at the several dates to which such reports117

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

isfaf’ sec!'
ref e.r 5 with an abstract o f the whole amount o f banking
'stat.' l.’ capital returned by them, o f the whole amount o f their
Act. Feb. is, debts and liabilities, the amount o f circulating notes outstat.’ l.j^siV.*8 standing, and the total amount o f means and resources,
specifying the amount o f lawful money held by them at
the times o f their several returns, and such other inform a
tion in relation to such associations as, in his judgment,
may be useful.
Second. A statement o f the associations whose business
has been closed during the year, with the amount o f their
circulation redeemed and the amount outstanding.
Third. A ny amendment to the laws relative to banking
by which the system may be improved, and the security
o f the holders o f its notes and other creditors may be
increased.
Fourth. A statement exhibiting under appropriate
heads the resources and liabilities and condition of the
banks, banking companies, and savings banks organized
under the laws o f the several States and Territories; such
inform ation to be obtained by the Comptroller from the
reports made by such banks, banking companies, and
savings banks to the legislatures or officers of the different
States and Territories, and, where such reports can not
be obtained, the deficiency to be supplied from such other
authentic sources as may be available.
F ifth. The names and compensation o f the clerks em
ployed by him, and the whole amount o f the expenses of
the banking department during the year.

17^

COMPTROLLER TO GIVE COMPLETE LIST OF ALL EM
PLOYEES OF THE OFFICE, INFORMATION ABOUT
FAILED BANKS, EMPLOYEES, UNDER RECEIVERS,
ETC. ACT APRIL 28, 1902.

^Act Aprn 28, 111. Provided, That fo r the fiscal year o f nineteen huntive, "executive, dred and two and thereafter, a full and complete list of
prdo3p?i*at?oPn o f f i c e r s , agents, clerks, and other employees o f the
LCt ;i 382 Stat ° ® ce
Comptroller o f the Currency, including bank
examiners, receivers and attorneys fo r receivers, and
clerks employed by such examiners and receivers, or any
other person connected with the work o f said office in
Washington or elsewhere, whose salary or compensation
is paid from the Treasury o f the United States or as
sessed against or collected from existing or failed banks
under their supervision or control, shall be transmitted to
the Secretary o f the Interior in accordance with the pro
visions o f an A ct o f Congress approved January twelfth,
eighteen hundred and eighty-five, relating to the Official
R egister: And provided further, That the Comptroller o f
the Currency is hereby directed to include in his annual
report to the Speaker o f the House o f Representatives,
expenses incurred during each year, in liquidation o f each
failed national bank separately.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

NUMBER OF COPIES OF REPORT TO BE PRINTED.
OF JANUARY 12, 1895.

ACT

112. Sec. 73.— This section provides in part that there lg£ct Jan. 12 ,
shall be printed “ O f the annual report o f the C om p-28stat.L.',6161
troller o f the Currency, ten thousand copies; one thou
sand for the Senate, two thousand for the House, and
seven thousand for distribution by the Comptroller o f
the Currency.”
THREE THOUSAND ADDITIONAL COPIES AUTHORIZED TO
BE PRINTED. PUBLIC RESOLUTION NO. 25, MARCH 4,
1907.

113. That section 73 o f an act “ Providing for the pub- MarU\ R? 9075;
lie printing and binding, and the distribution o f pu blic34^stat. l.’
documents,” approved January 12,1895, be, and the same
is hereby, so amended as to authorize the printing annu
ally hereafter o f ten thousand copies o f the annual report
o f the Comptroller o f the Currency, fo r distribution by
the Comptroller o f the Currency, instead o f seven thou
sand copies as heretofore.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

ORGANIZATION AND POWERS.

164312°—20------ 2

CHAPTER II.
ORGANIZATION AND POWERS.

200. Act June 20, 1874. The nationalbank act.
SOI. 5133. Formation
of
national
banking associations.
202. 5134. Requisites of organization
certificate
203. 5135. How certificate shall be ac
knowledged and filed.
204. 5136. Corporate powers of asso
ciations.
205. Acts December 23, 1913, and Sep
tember 7, 1916. Loans
on improved real estate.
206. Act December 23, 1913, as amend
ed. When national bank
as a member of Federal
reserve system may ac
cept drafts or bills of ex
change.
207. Act September 7, 191G. Accept
ance of drafts or bills of
exchange drawn upon na
tional banks by banks or
bankers in foreign coun
tries or dependencies of
the United States.
208. Act December 23. 1913, as amend
ed. Trust company pow
ers of national banks.
209. Act September 7, 1916. Power of
national bank to act as
insurance agent or as
broker or agent in making
or procuring loans on real
estate.
210. Act December 23, 1913, as amend
ed. Foreign branches.
211. Act May 1, 1886.
Change of
name and location.
212. Act May 1, 1886. Debts not af
fected by change.
213. Act May 1, 1886.
No release
from liabilities.
214. Act August 13, 1888. National
banks deemed citizens of
State in which located.
215. Act July 12, 1882. Extension of
corporate existence.
216. Act July 12, 1882. Consent of
two-thirds necessary.
217. Act July 12, 1882. Special ex
amination of bank and
issue of certificate of ap
proval by Comptroller.
218. Act July 12, 1882. Status not
changed by extension.
Jurisdiction of suits by
or against national banks.
219. Act July 12, 1882. Dissenting
shareholders may with
draw.
220. Act July 12, 1882. Redemption
of circulating notes is
sued prior to extension.

221. Act July 12, 1882. Dissolution
of banks not extending
period of succession.
222. Act April 12, 1902. Reextension
of corporate existence.
223. 5137. Power to hold real prop
erty.
224. 5138. Requisite amount of capital.
225. 5139. Shares of stock and trans
fers.
226. 5140. How payment of capital
stock must be made and
certified.
227. 5141. Proceedings if shareholder
fails to pay installments.
228. 5142. National banks may in
crease capital stock.
229. Act May 1, 1886. Increase of
capital stock.
230. 5143. Reduction of capital stock.
231. 5144. Right of shareholders to
vote.
Proxies author
ized.
232. 5145. Election of directors.
233. 5146. Requisite qualification of
directors.
234. Acts of October 15, 1914, and May
15, 1916. Interlocking di
rectorates— when forbid
den.
235. Act October 15, 1914. Enforce
ment of act in reference
to interlocking director
ates.
236. 5147. Oath required from direc
tors.
237. 5148. Filling vacancies.
238. 5149. Proceedings where no elec
tion is held on the proper
day.
239. 5150. Election of president of the
board.
240. 5151. Individual liability of share
holders.
241. Act December 23, 1913. Indi
vidual liability of share
holders.
Liability
of
shareholders who have
transferred their shares.
242. 5152. Executors, trustees, etc.,
not personally liable.
243. 5153. National banking associa
tions to be depositaries
of public moneys.
244. Act December 23, 1913. Govern
ment deposits in Federal
reserve banks.
245. 5154. Conversion of State banks
into national banking as
sociations.
246. 5155. S t a t e b a n k s h a v i n g
branches.
247. 5156. Reservation of rights of
associations
organi2ed
under act of 1863.
19

ORGANIZATION AND POWERS.

THE NATIONAL BANK ACT.

ACT JUNE 20, 1874.

Act June 20,
200. Sec. 1.— A n act entitled “ A n act to provide a nasec 1l ; is Stet! tional currency secured by a pledge o f United States
1., 123.
bonds, and to provide for the circulation and redemption
thereof,” approved June 3, 1864, shall hereafter be known
as “ the national-bank act.”

FORMATION OF NATIONAL BANKING ASSOCIATIONS.
Act June 3,
201. Sec. 5133.— Associations fo r carrying on the busisec^; 13 &tat! H6SS o f banking under this Title may be form ed by any
1., loo.
number o f natural persons, not less in any case than five.
They shall enter into articles o f association, which shall
specify in general terms the object for which the associa
tion is formed, and may contain any other provisions,
not inconsistent with law, which the association may see
fit to adopt fo r the regulation o f its business and the con
duct o f its affairs. These articles shall be signed by the
persons uniting to form the association, and a copy o f
them shall be forwarded to the Comptroller o f the Cur
rency, to be filed and preserved in his office.

REQUISITES OF ORGANIZATION CERTIFICATE.

cUni 06
®02. Sec. 5134.— The persons uniting to form such an
13 statl association shall, under their hands, make an organizaL” 101‘
tion certificate, which shall specifically state:
First. The name assumed by such association; which
name shall be subject to the approval o f the Comptroller
o f the Currency.
Second. The place where its operations o f discount and
deposit are to be carried on, designating the State, Terri
tory, or district, and the particular county and city, town,
or village.
Third. The amount o f capital stock and the number o f
shares into which the same is to be divided.
Fourth. The names and places o f residence o f the
shareholders and the number o f shares held by each o f
them.
Fifth. The fact that the certificate is made to enable
such persons to avail themselves o f the advantages o f
this Title.
1864*
sec. 6;

N ote.— For authority to change names or locations see act May
1, 1886, post, paragraph 211.

HOW CERTIFICATES SHALL BE ACKNOWLEDGED AND
FILED.
1864 * cUni 06'
®ec*
— ^ e organization certificate shall be
sec. i ; 13 stat! acknowledged before a judge o f some court o f record, or
1., i o i .
notary public; and shall be, together with the acknowl

edgment thereof, authenticated by the seal o f «uch court,
or notary, transmitted to the Comptroller o f the Cur
rency, who shall record and carefully preserve the same
in his office.

ORGANIZATION AND POWERS.

CORPORATE POWERS OF ASSOCIATION.

204. Sec. 5136.— Upon duly making and filing articles Act June 3,
o f association and an organization certificate, the asso- sf<?48 ; 13 stat!
ciation shall become, as from the date o f the execution L*» 101of its organization certificate, a body corporate, and as
such, and in the name designated in the organization
certificate, it shall have power—
First. T o adopt and use a corporate seal.
Second. T o have succession for the period o f twenty
years from its organization, unless it is sooner dissolved
according to the provisions o f its articles or association,
or by the act o f its shareholders owning two-thirds o f its
stock, or unless its franchise becomes forfeited by some
violation o f law.
Third. To make contracts.
Fourth. T o sue and be sued, complain and defend, in
any court o f lawT and equity, as fully as natural persons.
Fifth. T o elect or appoint directors, and by its board
o f directors to appoint a president, vice president, cashier,
and other officers, define their duties, require bonds o f
them and fix the penalty thereof, dismiss such officers or
any o f them at pleasure, and appoint others to fill their
places.
Sixth. T o prescribe, by its board o f directors, by-laws
not inconsistent with law, regulating the manner in
wThich its stock shall be transferred, its directors elected
or appointed, its officers appointed, its property trans
ferred, its general business conducted, and the privileges
granted to it by law exercised and enjoyed.
Seventh. To exercise by its board o f directors, or duly
authorized officers or agents, subject to law, all such inci
dental powers as shall be necessary to carry on the busi
ness o f banking; by discounting and negotiating promis
sory notes, drafts, bills o f exchange, and other evidences
o f debt; by receiving deposits; by buying and selling
exchange, coin, and bullion; by loaning money on per
sonal security; and by obtaining, issuing, and circulating
notes according to the provisions o f this Title.
But no association shall transact any business except
such as is incidental and necessarily preliminary to its
organization, until it has been authorized by the Comp
troller o f the Currency to commence the business o f
banking.
N ote .— See sections f>169 and 5170, paragraphs 320 and 321, post,
relating to issuing and publishing of certificate authorizing asso
ciation to begin business.

LOANS ON IMPROVED REAL ESTATE.

205. Sec. 24.— Any national banking association not
£ec. 2243:
situated in a central reserve city may make loans secured 38 ’stat.* l.’,
by improved and unencumbered farm land situated 27j?ct. Sept. 7,
Avithin its Federal reserve district or within a radius o f ^91^ 439 stat-

ORGANIZATION AND POWERSr

one hundred miles o f the place in which such bank is
located, irrespective o f district lines, and may also make
loans secured by improved and unencumbered real
estate located within one hundred miles o f the place in
which such bank is located, irrespective o f district lines;
but no loan made upon the security o f such farm land
shall be made fo r a longer time than five years, and no
loan made upon the security o f such real estate as dis
tinguished from farm land shall be made for a longer
time than one year nor shall the amount o f any such loan,
whether upon such farm land or upon such real estate,
' exceed fifty per centum o f the actual value o f the prop
erty offered as security. A ny such bank may make
such loans, whether secured by such farm land or such
real estate, in an aggregate sum equal to twenty-five
per centum o f its capital and surplus or to one-third o f
its time deposits and such banks may continue hereafter
as heretofore to receive time deposits and to pay interest
on the same.
The Federal Reserve Board shall have power from time
to time to add to the list o f cities in which national banks
shall not be permitted to make loans secured upon real
estate in the manner described in this section.
WHEN NATIONAL BANK AS A MEMBER BANK OF FED
ERAL RESERYE SYSTEM MAY ACCEPT DRAFTS OR
BILLS OF EXCHANGE.
1913*

sec0’ 1 3 *

mem^er bank may accept drafts or bills o f
six
26Ict Mar. 3, months’ sight to run, exclusive o f days o f grace, which
l919^838 ®tat*grow out
transactions involving the importation or
Act sept. 7, exportation o f goods; or which grow out o f transactions
Stat*involving the domestic shipment o f goods, provided ship1917*sec”! 21*
documents conveying or securing title are attached
*sec’ '
at the time o f acceptance; or which are secured at the
time o f acceptance by a warehouse receipt or other such
document conveying or securing title covering readily
marketable staples. No member bank shall accept,
whether in a foreign or domestic transaction, for any
one person, company, firm, or corporation to an amount
equal at any time in the aggregate to more than ten per
centum o f its paid-up and unimpaired capital stock and
surplus, unless the bank is secured either by attached
documents or by some other actual security growing out
o f the same transaction as the acceptance; and no bank
shall accept such bills to an amount equal at any time in
the aggregate to more than one-half o f its paid-up and
unimpaired capital stock and surplus: Provided, how
ever , That the Federal Reserve Board, under such gen
eral regulations as it may prescribe, which shall apply
to all banks alike regardless o f the amount o f capital
stock and surplus, may authorize any member bank to
accept such bills to an amount not exceeding at any time
88 'stat? l . / exchange drawn upon it having not more than

ORGANIZATION AND POWERS.

in the aggregate one hundred per centum o f its paid-up
and unimpaired capital stock and surplus: Provided, fur
ther, That the aggregate o f acceptances growing out o f
domestic transactions shall in no event exceed fifty per
centum o f such capital stock and surplus.
207. Acceptance of drafts or bills of exchange drawn upon 1QAct JjepJj.J*
national banks by banks or bankers in foreign countries or L., amending
dependencies of the United States.
|eecs* 11°* FedA ny member bank may accept drafts or bills o f ex
change drawn upon it having not more than three months’
sight to run, exclusive o f days o f grace, drawn under
regulations to be prescribed by the Federal Reserve
Board by banks or bankers in foreign countries or de
pendencies or insular possessions o f the United States for
the purpose o f furnishing dollar exchange as required by
the usages o f trade in the respective countries, dependen
cies, or insular possessions. Such drafts or bills may be
acquired by Federal reserve banks in such amounts and
subject to such regulations, restrictions, and limitations
as may be prescribed by the Federal Reserve B oard:
Provided, however, That no member bank shall accept
such drafts or bills o f exchange referred to in this para
graph for any one bank to an amount exceeding in the
aggregate ten per centum o f the paid-up and unimpaired
capital and surplus o f the accepting bank unless the draft
or bill o f exchange is accompanied by documents convey
ing or securing title or by some other adequate security:
Provided further, That no member bank shall accept such
drafts or bills in an amount exceeding at any time the
aggregate o f one-half o f its paid-up and unimpaired
capital and surplus.
TRUST COMPANY POWERS OF NATIONAL BANKS.

208. The Federal Reserve Board is authorized by section 11, paragraph k ,o f the Federal reserve act a to grant 38Stat.L.,28il
by special permit to national banks applying therefor,
when not in contravention o f State or local law, the right
to act as trustee, executor, administrator, registrar o f
stocks and bonds, guardian o f estates, assignee, receiver,
committee o f estates o f lunatics, or in any other fiduciary
capacity in which State banks, trust companies, or other
corporations which come into competition with national
banks are permitted to act under the laws o f the State
in which the national bank is located.
“ Whenever the law's o f such State authorize or permit
the exercise o f any or all o f the foregoing powers by
State banks, trust companies, or other corporations which
compete with national banks, the granting to and the
exercise o f such powers by national banks shall not be
deemed to be in contravention o f State or local law
within the meaning o f this act.
“ National banks exercising any or all o f the powders
enumerated in this subsection shall segregate all assets
held in any fiduciary capacity from the general assets o f

ORGANIZATION AND LOWERS.

the bank and shall keep a separate set o f books and
records showing in proper detail all transactions en
gaged in under authority o f this subsection. Such books
and records shall be open to inspection by the State
authorities to the same extent as the books and records
o f corporations organized under State law which exer
cise fiduciary powers, but nothing in th is . act shall be
construed as authorizing the State authorities to ex
amine the books, records, and assets o f the national bank
which are not held in trust under authority o f this sub
section.
26, “ No national bank shall receive in its trust depart
ment deposits o f current funds subject to check or the
deposit o f checks, drafts, bills o f exchange, or other items
for collection or exchange purposes. Funds deposited or
held in trust by the bank awaiting investment shall be
carried in a separate account and shall not be used by the
bank in the conduct o f its business unless it shall first
set aside in the trust department United States bonds or
other securities approved by the Federal Reserve Board.
“ In the event o f the failure o f such bank the owners
o f the funds held in trust fo r investment shall have a
lien on the bonds or other securities so set apart in addi
tion to their claim against the estate o f the bank.
“ Whenever the laws o f a State require corporations
acting in a fiduciary capacity to deposit securities w^ith
the State authorities fo r the protection o f private or
court trusts, national banks so acting shall be required
to make similar deposits and securities so deposited shall
be held for the protection o f private or court trusts, as
provided by the State law.
“ National banks in such cases shall not be required to
execute the bond usually required o f individuals if State
corporations under similar circumstances are exempt
from this requirement.
“ National banks shall have power to execute such
bond when so required by the laws o f the State.
“ In any case in which the laws o f a State require that
a corporation acting as trustee, executor, administrator,
or in any capacity specified in this section, shall take an
oath or make an affidavit, the president, vice president,
cashier, or trust officer o f such national bank may take
the necessary oath or execute the necessary affidavit.
“ It shall be unlawful for any national banking asso
ciation to lend any officer, director, or employee any
funds held in trust under the powers conferred by this
section. A ny officer, director, or employee making such
loan, or to whom such loan is made, may be finecl not
more than $5,000, or imprisoned not more than five
years, or may be both fined and imprisoned, in the dis
cretion o f the court.
“ In passing upon applications for permission to exer
cise the powers enumerated in this subsection, the F ed
eral Reserve Board may take into consideration the

GftGAttlEATIOK AND POWERS.

amount o f capital and surplus o f the applying bank,
whether or not such capital and surplus is sufficient under
the circumstances o f the case, the needs o f the community
to be served, and any other facts and circumstances that
seem to it proper, and may grant or refuse the applica
tion accordingly: Provided, That no permit shall be
issued to any national banking association having a capi
tal and surplus less than the capital and surplus required
by State law o f State banks, trust companies, and cor
porations exercising such powers.”
209. Power of national bank to act as insurance agent or Act Sept 7t
as broker or agent in making or procuring loans on real
estate.
ing sec. 13 of
That in addition to the powers now vested by law in Fed* Res* Act*
national banking associations organized under the laws
o f the United States any such association located and
doing business in any place the population o f which does
not exceed five thousand inhabitants, as shown by the
last preceding decennial census, may, under such rules
and regulations as may be prescribed by the Comptroller
o f the Currency, act as the agent for any fire, life, or
other insurance company authorized by the authorities
o f the State in which said bank is located to do business
in said State, by soliciting and selling insurance and col
lecting premiums on policies issued by such com pany;
and may receive for services so rendered such fees or
commissions as may be agreed upon between the said
association and the insurance company for which it may
act as agent; and may also act as the broker or agent
for others in making or procuring loans on real estate
located within one hundred miles o f the place in which
said bank may be located, receiving for such services a
reasonable fee or commission: Provided, however, That
no such bank shall in any case guarantee either the prin
cipal or interest o f any such loans or assume or guarantee
the payment o f any premium on insurance policies issued
through its agency by its prin cip al: And provided
further, That the bank shall not guarantee the truth o f
any statement made by an assured in filing his applica
tion for insurance.
FOREIGN BRANCHES [as amended 1919].

210. Sec. 25.— A ny national banking association pos- 19£ct Dec. 23,
sessing a capital and surplus o f $1,000,000 or more may 38 ’stat.* l.’,
file application with the Federal Eeserve Board for p e r -27|ct Sept< 7>
mission to exercise, upon such conditions and under such Jf1 ra f9 stat*
regulations as may be prescribed by the said board, either *Act s'ept. 17,
or both o f the follow ing pow ers:
1919,
First. T o establish branches in foreign countries or
dependencies or insular possessions o f the United States
for the furtherance o f the foreign commerce o f the United
States, and to act if required to do so as fiscal agents o f
the United States.

ORGANIZATION AND POWERS.

Second. T o invest an amount not exceeding in the
aggregate ten per centum o f its paid-in capital stock and
surplus in the stock o f one or more banks or corporations
chartered or incorporated under the laws o f the United
States or o f any State thereof, and principally engaged
in international or foreign banking, or banking in a de
pendency or insular possession o f the United States either
directly or through the agency, ownership, or control o f
local institutions in foreign countries, or in such depend
encies or insular possessions. Until January 1, 1921, any
national banking association, without regard to the
amount o f its capital and surplus, may file application
with the Federal Eeserve Board for permission, upon
such conditions and under such regulations as may be pre
scribed by said board, to invest an amount not exceeding
in the aggregate 5 per centum o f its paid-in capital and sur
plus in the stock o f one or more corporations chartered or
incorporated under the laws o f the United States or o f
any State thereof and, regardless o f its location, princi
pally engaged in such phases o f international or foreign
financial operations as may be necessary to facilitate the
export o f goods, wares, or merchandise from the United
States or any o f its dependencies or insular possessions
to any foreign country: Provided, however, That in no
event shall the total investments authorized by this sec
tion by any one national bank exceed 10 per centum o f its
capital and surplus.
Such application shall specify the name and capital o f
the banking association filing it, the powers applied for,
and the place or places where the banking or financial
operations proposed are to be carried on. The Federal
Eeserve Board shall have power to approve or to reject
such application in whole or in part i f for any reason the
granting o f such application is deemed inexpedient, and
shall also have power from time to time to increase or
decrease the number o f places where such banking opera
tions may be carried on.
Every national banking association operating foreign
branches shall be required to furnish inform ation con
cerning the condition o f such branches to the Comptroller
o f the Currency upon demand, and every member bank
investing in the capital stock o f banks or corporations
described above shall be required to furnish inform ation
concerning the condition o f such banks or corporations
to the Federal Eeserve Board upon demand, and the Fed
eral Eeserve Board may order special examinations o f
the said branches, banks, or corporations at such time or
times as it may deem best.
Before any national bank shall be permitted to pur
chase stock in any such corporation the said corporation
shall enter into an agreement or undertaking with the
Federal Eeserve Board to restrict its operations or con
duct its business in such manner or under such limita-

ORGANIZATION AND POWERS.

tions and restrictions as the said board may prescribe fo r
the place or places wherein such business is to be con
ducted. I f at any time the Federal Reserve Board shall
ascertain that the regulations prescribed by it are not
being complied with, said board is hereby authorized and
empowered to institute an investigation o f the matter and
to send for persons and papers, subpoena witnesses, and
administer oaths in order to satisfy itself as to the actual
nature o f the transactions referred to. Should such in
vestigation result in establishing the failure o f the cor
poration in question, or o f the national bank or banks
which may be stockholders therein, to comply with the
regulations laid down by the said Federal Reserve Board,
such national banks may be required to dispose o f stock
holdings in the said corporation upon reasonable notice.
Every such national banking association shall conduct
the accounts o f each foreign branch independently o f the
accounts o f other foreign branches established by it and
o f its home office, and shall at the end o f each fiscal
period transfer to its general ledger the profit or loss
accrued at each branch as a separate item.
A ny director or other officer, agent, or employee o f
any member bank may, with the approval o f the Federal
Reserve Board, be a director or other officer, agent, or
employee o f any such bank or corporation above men
tioned in the capital stock o f which such member bank
shall have invested as hereinbefore provided, without
being subject to the provisions o f section eight o f the A ct
approved October fifteenth, nineteen hundred and four
teen, entitled “ A n A ct to supplement existing law's
against unlawful restraints and monopolies, and for
other purposes.”
CHANGE OF NAME AND LOCATION OF BANK.
1, 1886.

ACT MAY

211. Sec. 2.— That any national banking association may lgAct May? i,
change its name or the place where its operations o f dis- sec. 2 ; 24 stat!
count and deposit are to be carried on, to any other place u» 18#
within the same State, not more than thirty miles dis
tant, wTith the approval o f the Comptroller o f the Cur
rency, by the vote o f shareholders owning two-thirds o f
the stock o f such association. A duly authenticated
notice o f the vote and o f the new name or location se
lected shall be sent to the office o f the Comptroller o f the
Currency; but no change o f name or location shall be
valid until the Comptroller shall have issued his certifi
cate o f approval o f the same.
DEBTS NOT AFFECTED BY CHANGE. ACT MAY 1, 1886.

212. Sec. 3.— That all debts, liabilities, rights, provi- Act May 1,
.
-1
« .I
1
*i
i i
loob) c. To, sec.
sions, and powers ot the association under its old name 3 ; 24 stat. l.,
shall devolve upon and inure to the association under 19,
its new name.

ORGANIZATION AND POWERS.

NO BELEASE FBOM LIABILITIES.

ACT MAT 1, 1886.

Act May i,

213. Sec. 4.— That nothing in this act contained shall be
construed as in any manner to release any national
” banking association under its old name or at its old loca
tion from any liability, or affect any action or proceeding
in law in which said association may be or become a
party or interested.

4®824 °stat.SLC; so

19.

N ote .— Section 1 of this act relates to increase of capital stock
and is inserted after Section 5142, United States Revised Statutes.

NATIONAL BANKS DEEMED CITIZENS OF STATES IN
WHICH LOCATED. ACT AUGUST 13, 1888.

lsi^'sec T- 24
®eCt — That all national banking associations esstat.’ l., *554. tablished under the laws o f the United States shall, for
1888 * A
cug*8$ ^ e purposes o f all actions by or against them, real, perl c,43&25 Stat‘ sona^ or mixed, and all suits in equity, be deemed citizens
o f the States in which they are respectively located; and
in such cases the circuit and district courts shall not have
jurisdiction other than such as they would have in cases
between individual citizens o f the same State. The p ro
visions o f this section shall not be held to affect the
jurisdiction o f the courts o f the United States in cases
commenced bv the United States or by direction o f any
officer thereof, or cases for winding up the affairs o f any
such bank.
N ote .— See act March 3, 1911, section 24, 36 Stat. L., 1092, para
graph 701, post, as to jurisdiction of United States courts in
national banking cases.

EXTENSION OF COBPOBATE EXISTENCE.
1882.

ACT JULY 12,

1882* JcUly29 o
®ec* **— That any national banking association
gee. i ; 22 stat! organized under the acts o f February twenty-fifth, eightL*» 162*
een hundred and sixty-three, June third, eighteen hun
dred and sixty-four, and February fourteenth, eighteen
hundred and eighty, or under sections fifty-one hundred
and thirty-three, fifty-one hundred and thirty-four, fiftyone hundred and thirty-five, fifty-one hundred and
thirty-six, and fifty-one hundred and fifty-four o f the
Revised Statutes o f the United States, may, at any time
within the two years next previous to the date o f the ex
piration o f its corporate existence under present law, and
with the approval o f the Comptroller o f the Currency, to
be granted, as hereinafter provided, extend its period o f
succession by amending its articles o f association for a
term o f not more than twenty years from the expiration
o f the period o f succession named in said articles o f asso
ciation, and shall have succession for such extended
period, unless sooner dissolved by the act o f shareholders
owning two-thirds o f its stock, or unless its franchise
becomes forfeited by some violation o f lawT, or unless
hereafter modified or repealed.
N ote.— Act of February 14, 1880, relates to the conversion of
gold banks into currency banks, and is inserted after Revised
Statutes 5186.

ORGANIZATION AND POWERS.

CONSENT OF TWO-THIRDS NECESSARY.
1882.

ACT JULY 12,

216. Sec. 2.— That such amendment o f said articles o f
association shall be authorized by the consent in writing sec.
o f shareholders owning not less than twTo-thirds o f the *'
capital stock o f the association; and the board o f direc
tors shall cause such consent to be certified under the seal
o f the association, by its president or cashier, to the
Comptroller o f the Currency, accompanied by an appli
cation made by the president or cashier for the approval
o f the amended articles o f association by the Comp
troller; and such amended articles o f association shall
not be valid until the Comptroller shall give to such asso
ciation a certificate under his hand and seal that the
association has complied with all the provisions required
to be complied wTith, and is authorized to have succession
for the extended period named in the amended articles o f
association.

Jculy29o;
stat!

SPECIAL EXAMINATION OF BANK AND ISSUE OF CER
TIFICATE OF APPROVAL BY COMPTROLLER. ACT
JULY 12, 1882.

217. Sec. 3.— That upon the receipt o f the application Act
and certificate o f the association provided for in the pre- sec. k 22 stat*
ceding section, the Comptroller o f the Currency shallL,> 163,
cause a special examination to be made, at the expense o f
the association, to determine its condition; and i f after
such examination or otherwise it appears to him that
said association is in a satisfactory condition, he shall
grant his certificate o f approval provided for in the pre
ceding section, or if it appears that the condition o f said
association is not satisfactory, he shall withhold such
certificate o f approval.
STATUS NOT CHANGED BY EXTENSION. JURISDICTION
OF SUITS BY OR AGAINST NATIONAL BANKS. ACT
JULY 12, 1882.

218. Sec. 4.— That any association so extending the
^uly29o’
period o f its succession shall continue to enjoy all the sec."4 ; 22 stat!
rights and privileges and immunities granted and shall L” 163#
continue to b£ subject to all the duties, liabilities, and re
strictions imposed by the Revised Statutes o f the United
States and other acts having reference to natiQnal bank
ing associations, and it shall continue to be in all respects
the identical association it was before the extension o f its
period o f succession: Provided, however, That the juris
diction for suits hereafter brought by or against any as
sociation established under any law providing for na
tional banking associations, except suits between them
and the United States, or its officers and agents, shall be
the same as, and not other than, the jurisdiction for suits
by or against banks not organized under any law o f the
United States wThich do or might do banking business
where such national banking associations may be doing
business when such suits may be begun: A nd all laws

ORGANIZATION AND POWERS.

and parts o f laws o f the United States inconsistent with
this proviso be, and the same are hereby, repealed.
N ote.— See also act of August 13, 1888, relating to citizenship of
national banks and jurisdiction of the circuit and district courts,
paragraph 214, ante, and act of Mar. 3, 1911, sec. 24, 36 Stat. L.,
1092, paragraph 701, post, as to jurisdiction of United States
courts in national banking cases.

DISSENTING SHAREHOLDERS
JULY 12, 1882.

MAY

WITHDRAW.

ACT

1882 * Jculy29o
®ec‘ — That when any national banking associascc. 5; 2*2 stat! tion has amended its articles o f association as provided
l., 163.
*n
ac^ an(j ftle Comptroller has granted his certificate
o f approval, any shareholder not assenting to such
amendment may give notice in writing to the directors,
within thirty days from the date o f the certificate o f ap
proval, o f his desire to withdraw from said association,
in which case he shall be entitled to receive from said
banking association the value o f the shares so held by
him, to be ascertained by an appraisal made by a com
mittee o f three persons, one to be selected by such share
holder, one by the directors, and the third by the first
t w o ; and in case the value so fixed shall not be satisfac
tory to any such shareholder, he may appeal to the Com p
troller o f the Currency, who shall cause a reappraisal
to be made, wThich shall be final and bin d in g ; and if said
reappraisal shall exceed the value fixed by said commit
tee, the bank shall pay the expenses o f said reappraisal,
and otherwise the appellant shall pay said expenses; and
the value so ascertained and determined shall be deemed
to be a debt due, and be forthwith paid, to said share
holder from said bank; and the shares so surrendered
and appraised shall, after due notice, be sold at public
sale, withtin thirty days after the final appraisal provided
in this section: Provided, That in the organization o f any
banking association intended to replace any existing
banking association, and retaining the name thereof, the
holders o f stock in the expiring association shall be enti
tled to preference in the allotment o f the shares o f the
new' association in proportion to the number o f shares
held by them respectively in the expiring association.

REDEMPTION OF CIRCULATING NOTES ISSUED PRIOR TO
EXTENSION. ACT JULY 12, 1882.
1882 * cUly29o!
^20. Sec. 6.— That the circulating notes o f any associaLec'i6^22 stat't i ° n so extending the period o f its succession which shall
have been issued to it prior to such extension shall be re
deemed at the Treasury o f the United States, as provided
in section three o f the act o f June twentieth, eighteen
hundred and seventy-four, entitled “ A n act fixing the
amount e f United States notes, providing for redistribu
tion o f national bank currency, and for other purposes,”
and such notes when redeemed shall be forwarded to the
Comptroller o f the Currency, and destroyed as now pro
vided by la w ; and at the end o f three years from the date

ORGANIZATION AND POWERS.

o f the extension o f the corporate existence o f each bank
the association so extended shall deposit lawful money
with the Treasurer o f the United States sufficient to re
deem the remainder o f the circulation which was out
standing at the date o f its extension, as provided in
sections fifty-two hundred and twenty-two, fifty-two
hundred and twenty-four, and fifty-two hundred and
twenty-five o f the Revised Statutes; and any gain that
may arise from the failure to present such circulating
notes fo r redemption shall inure to the benefit o f the
United States; and from time to time, as such notes are
redeemed or lawful money deposited therefor as provided
herein, new circulating notes shall be issued as provided
by this act, bearing such devices, to be approved by the
Secretary o f the Treasury, as shall make them readily
distinguishable from the circulating notes heretofore
issued: Provided, however, That each banking associa
tion which shall obtain the benefit o f this act shall reim
burse to the Treasury the cost o f preparing the plate or
plates for such new circulating notes as shall be issued
to it.
N ote.— For act of June 20, 1874, section 3, mentioned above,
see paragraph 414, post. The destruction of bank notes by burn
ing, as provided in sections 5184, 5225, Revised Statutes, is super
seded by act of June 23, 1874, paragraph 340, post, which requires
bank notes to be macerated.

DISSOLUTION OF BANKS NOT EXTENDING PERIOD OV
SUCCESSION. ACT JULY 12, 1882.

221. Sec. 7.— That national banking associations whose lg£ct July2jt2,
corporate existence has expired or shall hereafter expire sec. 7; 22 stat!
and which do not avail themselves o f the provisions o f L*’ 164,
this act, shall be required to comply with the provisions
o f sections fifty-two hundred and twenty-one and fiftytwo hundred and .twenty-two o f the Revised Statutes in
same manner as if the shareholders had voted to go
into liquidation, as provided in section fifty-two hundred
and twenty o f the Revised Statutes; and the provisions
o f sections fifty-two hundred and twenty-four and fiftytwo hundred and twenty-five o f the Revised Statutes
shall also be applicable to such associations, except as
modified by this act;-and the franchise o f slich associa
tions is hereby extended for the sole purpose o f liquidat
ing their affairs until such affairs are finally closed.
N ote .— Other sections of act of July 12, 1882.
S ec . 8. [Relates to bond deposits and circulating notes. 1

Fol
lows Revised Statutes, section 5167.
S ec . 9.— [Relates to withdrawal of circulating notes.] Follows
Revised Statutes, section 5167.
S ec . 10.— Repealed sections 5171 and 5176, Revised Statutes,
and was superseded by act of March 14, 1900. (See section 5171,
Revised Statutes.)
Sec. 11.— Authorizes the exchange of three per cent bonds for
outstanding three and one-half per cent bonds.
S ec . 12.— Authorizes the issue of gold certificates upon the de

posit of gold coin. Inserted after section 5207.
S ec . 13.— [Relates to false certification of checks.]
by act of Sept. 26, 1918.

Superseded

ORGANIZATION AND POWERS.

REEXTENSION OF
APRIL 12, 1902.

CORPORATE

EXISTENCE.

ACT

1902!* ^pri5032;
102

222. That the Comptroller o f the Currency is hereby
Stat* L‘*auth?r.ize(l 5 in the manner provided bv, and under the
conditions and limitations of, the act o f July 12, 1882, to
extend fo r a further period o f twenty years the charter
o f any national banking association extended under said
act which shall desire to continue its existence after the
expiration o f its charter.
POWER TO HOLD REAL PROPERTY.

is 64* cUni 06
®ec*
^ national banking association may
sec. ’ 2 8 ; liJ purchase, hold, and convey real estate for the follow ing
stat. l., 107. p Urp0SeSj and fo r no others:
First. Such as shall be necessary fo r its immediate ac
commodation in the transaction o f its business.
Second. Such as shall be mortgaged to it in good faith
by way o f security for debts previously contracted.
Third. Such as shall be conveyed to it in satisfaction o f
debts previously contracted in the course o f its dealings.
Fourth. Such as it shall purchase at sales under ju d g
ments, decrees, or mortgages held by the association, or
shall purchase to secure debts due to it.
But no such association shall hold the possession o f any
real estate under mortgage, or the title and possession o f
any real estate purchased to secure any debts due to it,
fo r a longer period than five years.
N o te .— For power to loan on real estate see paragraph 205,
ante.

REQUISITE AMOUNT OF CAPITAL.
1864* f neioi;
224. Sec. 5138 [as amended 1900]— No association shall
sec. 7 ; 13 stat! be organized with a less capital than one hundred thouL’ Act^Mar. 14, sand dollars, except that banks with a capital o f not less
io*;0, 3i 41’stat ^ an
thousand dollars may, with the approval o f the
l .,’48.
* Secretary o f the Treasury, be organized in any place the
population o f which does not exceed six thousand inhab
itants, and except that banks with a capital o f not less
than twenty-five thousand dollars may, with the sanction
o f the Secretary o f the Treasury, be organized in any
place the population o f which does not exceed three
thousand inhabitants. No association shall be organized
in a city the population o f which exceeds fifty thousand
persons with a capital o f less than two hundred thousand
dollars.

SHARES OF STOCK AND TRANSFERS.
1864* cUneio6;
stat l 2 ;i 021^

225. Sec. 5139.— The capital stock o f each association
^e divided into shares o f one hundred dollars each,
and be deemed personal property, and transferable on the
books o f the association in such manner as may be pre-

ORGANIZATION AND POWERS.

scribed in the by-laws or articles o f association. Every
person becoming a shareholder by such transfer shall, in
proportion to his shares, succeed to all rights and lia
bilities o f the prior holder o f such shares; and no change
shall be made in the articles o f association by which the
rights, remedies, or security o f the existing creditors o f
the association shall be impaired.
N ote.— See also section 23, Federal reserve act, following sec
tion 5151, United States Revised Statutes.

HOW PAYMENT OF THE CAPITAL STOCK MUST BE MADE
AND CERTIFIED.
3,
226. Sec. 5140.— A t least fifty per centum o f the capital Act June
c. 106,
stock o f every association shall be paid in before it shall sec. ’ 14; 13
be authorized to commence business; and the remainder stat* L., 103.
o f the capital stock o f such association shall be paid in
installments o f at least ten per centum each, on the whole
amount o f the capital, as frequently as one installment
at the end o f each succeeding month from the time it
shall be authorized by the Comptroller o f the Currency
to commence business; and the payment o f each install
ment shall be certified to the Comptroller, under oath, by
the president or cashier o f the association.

PROCEEDINGS IF SHAREHOLDER FAILS TO PAY INSTALL
MENTS.

227. Sec. 5141.— Whenever any shareholder, or his as- igAct June 3,
c. 106,
signee, fails to pay any installment on the stock when the sec. ’ 15; 13
U, 103.
same is required by the preceding section to be paid, the stat>
directors o f such association may sell the stock o f such
delinquent shareholder at public auction, having given
three weeks’ previous notice thereof in a newspaper pub
lished and o f general circulation in the city or county
where the association is located, or if no newspaper is
published in said city or county, then in a newspaper
published nearest thereto, to any person who will pay the
highest price therefor, to be not less than the amount then
due thereon, with the expenses o f advertisement and sale;
and the excess, if any, shall be paid to the delinquent
shareholder. I f no bidder can be found who will pay for
such stock the amount due thereon to the association, and
the cost o f advertisement and sale, the amount previously
paid shall be forfeited to the association, and such stock
shall be sold as the directors may order, within six months
from the time o f such forfeiture, and if not sold it shall
be canceled and deducted from the capital stock o f the
association. I f any such cancellation and reduction shall
reduce the capital o f the association below the minimum
o f capital required by law, the capital stock shall, within
thirty days from the date o f such cancellation, be in
creased to the required amount; in default o f which a
receiver may be appointed, according to the provisions
164312°- -20------ 8

ORGANIZATION AND POWERS.

o f section fifty-tw o hundred and thirty-four, to close up
the business o f the association.
NATIONAL BANKS MAY INCREASE CAPITAL STOCK.
i&
m 1 cUniO0’
®ec‘
— A ny association form ed under this title
sc<\ ’ 1 3 ; 13 may, by its articles o f association, provide for an increase
stiit. l., 103. 0£ -£S capj£ai f rom time to time, as may be deemed expe
dient, subject to the limitations o f this title. But the
maximum o f such increase to be provided in the articles
o f association shall be determined by the Comptroller o f
the Currency; and no increase o f capital shall be valid
until the whole amount o f such increase is paid in, and
notice thereof has been transmitted to the Comptroller
o f the Currency, and his certificate obtained specifying
the amount o f such increase o f capital stock, with his
approval thereof, and that it has been duly paid in as
part o f the capital o f such association.

INCREASE OF CAPITAL STOCK.

ACT MAY 1, 1886.

Act May i,
229. Sec. 1.— That any national banking association
i ; 24C'stat.SL?i may, with the approval o f the Comptroller o f the Cur18rency, by the vote o f shareholders owning two-thirds o f
the stock o f such association, increase its capital stock, in
accordance with existing laws, to any sum approved by
the said Comptroller, notwithstanding the limit fixed in
its original articles o f association and determined by said
Com ptroller; and no increase o f the capital stock o f any
national banking association either within or beyond the
limit fixed in its original articles o f association shall be
made except in the manner herein provided.
N ote .— For other sections of this act see paragraphs 211, 212,
and 213, ante.

REDUCTION OF CAPITAL STOCK.

230. Sec. 5143.— A ny association formed under this title
may, by the vote o f shareholders owning two-thirds o f
stat. l „ 103.
capital stock, reduce its capital to any sum not below
the amount required by this title to authorize the form a
tion o f associations; but no such reduction shall be allow
able which will reduce the capital o f the association below
Act Dec. 23, the amount required for its outstanding circulation, nor
38 13 btat 2l.! shall any reduction be made until the amount o f the pro274.
* Mposed reduction has been reported to the Comptroller o f
the Currency and such reduction has been approved by
the said Comptroller o f the Currency and by the Federal
Reserve Board, or by the organization committee pend
ing the organization o f the Federal Reserve Board.

Act June 3,
sec64, 1 3 ; 10i 3

RIGHT OF SHAREHOLDERS TO YOTE; PROXIES AUTHOR
IZED.
Act June 3,
se8c!4, i i ; 1 13
stat. l . , 102.

231. Sec. 5144.— In all elections o f directors, and in
deciding all questions at meetings o f shareholders, each
shareholder shall be entitled to one vote on each share o f

ORGANIZATION AND POWERS.

stock held by him. Shareholders may vote by proxies
duly authorized in w ritin g; but no officer, clerk, teller, or
bookkeeper o f such association shall act as proxy; and
no shareholder whose liability is past due and unpaid
shall be allowed to vote.
N ote .— The Circuit Court of the United States, in United States
v. Barry (36 F. R., 246), held that the words “ liability past due
and unpaid ” referred only to unpaid subscriptions for stock.

ELECTION OF DIRECTORS.

232. Sec. 5145.— The affairs o f each association shall b e lgAct June10|>
managed by not less than five directors, who shall be secs. 9, 10; 13
elected by the shareholders at a meeting to be held at any stat L,» 102,
time before the association is authorized by the Comp
troller o f the Currency to commence the business o f bank
ing ; and afterward at meetings to be held on such day in
January o f each year as is specified therefor in the
articles o f association. The directors shall hold office for
one year, and until their successors are elected and have
qualified.
REQUISITE QUALIFICATION OF DIRECTORS.

233. Sec. 5146 [amended 1905].— Every director must, 18^ t ^une10|»
during his whole term of service, be a citizen o f the secs.’ 9, 1 0^ 13
United States, and at least three-fourths of the direc- st ActLFeb.0 28,
tors must have resided in the State, Territory, or District
in which the association is located for at least one year sis.
immediately preceding their election and must be resi
dents therein during their continuance in office. Every
director must own in his own right at least ten shares o f
the capital stock o f the association o f which he is a d i
rector, unless the capital o f the bank shall not exceed
twenty-five thousand dollars, in which case lie must own
in his own right at least five shares o f such capital stock.
A ny director who ceases to be the owner o f the required
number o f shares o f the stock, or who becomes in any
other manner disqualified, shall thereby vacate his place.
INTERLOCKING DIRECTORATES— WHEN FORBIDDEN.

234. Sec. 8.— That from and after two years from the 1^ct ^oct. 15.
date o f the approval o f this act no person shall at the s ta V u ^ ^ ?8
same time be a director or other officer or employee o f
more than one bank, banking association, or trust com
pany, organized or operating under the laws o f the United
States, either o f which has deposits, capital, surplus, and
undivided profits aggregating more than $5,000,000; and
no private banker or person who is a director in any bank
or trust company, organized and operating under the laws
o f a State, having deposits, capital, surplus, and undi
vided profits aggregating more than $5,000,000, shall be
eligible to be a director in any bank or banking associa-

ORGANIZATION AND POWERS.

tion organized or operating under the laws o f the United
States. The eligibility o f a director, officer, or employee
under the foregoing provisions shall be determined by
the average amount o f deposits, capital, surplus, and un
divided profits as shown in the official statements o f such
bank, banking association, or trust company filed as pro
vided by law during the fiscal year next preceding the
date set for the annual election o f directors, and when a
director, officer, or employee has been elected or selected
in accordance with the provisions o f this A ct it shall be
law ful fo r him to continue as such for one year thereafter
under said election or employment.
No bank, banking association, or trust company, or
ganized or operating under the laws o f the United States,
in any city or incorporated town or village o f more than
two hundred thousand inhabitants, as shown by the last
preceding decennial census o f the United States, shall
have as a director or other officer or employee any private
banker or any director or other officer or employee o f
any other bank, banking association, or trust company
located in the same place: Provided, That nothing in this
section shall apply to mutual savings banks not having a
capital stock represented by shares: Provided further,
That a director or other officer or employee o f such bank,
banking association, or trust company may be a director or
other officer or employee o f not more than one other bank
or trust company organized under the laws o f the United
States or any State where the entire capital stock o f one
is owned by stockholders in the other: And 'provided
further, That nothing contained in this section shall forbid
a director o f class A o f a Federal reserve bank, as defined
in the Federal reserve act, from being an officer or
director or both an officer and director in one member
Act Ma 15
:
'provided further, That nothing in this act
1916 ; 39aystat! shall prohibit any officer, director, or employee o f any
L*» 12U
member bank or class A director o f a Federal reserve
bank, who shall first procure the consent o f the Federal
Reserve Board, which board is hereby authorized, at its
discretion, to grant, withhold, or revoke such consent,
from being an officer, director, or employee o f not more
than twTo other banks, banking associations, or trust
companies, whether organized under the laws o f the
United States or any State, if such other bank, banking
association, or trust company is not in substantial com
petition with such member bank.
The consent o f the Federal Reserve Board may be
procured before the person applying therefor has been
elected as a class A director o f a Federal reserve bank or
as a director o f any member bank.
That from and after two years from the date o f the
approval o f this act no person at the same time shall be a
director in any two or more corporations, any one o f
which has capital, surplus, and undivided profits aggre-

ORGANIZATION AND POWERS.

gating more than $1,000,000, engaged in whole or in part
in commerce, other than banks, banking associations,
trust companies and common carriers subject to the
act to regulate commerce, approved February fourth,
eighteen hundred and eighty-seven, if such corporations
are or shall have been theretofore, by virtue o f their
business and location o f operation, competitors, so that
the elimination o f competition by agreement between
them would constitute a violation o f any o f the provisions
o f any o f the antitrust laws. The eligibility o f a director
under the foregoing provision shall be determined by the
aggregate amount o f the capital, surplus, and undivided
profits, exclusive o f dividends declared but not paid to
stockholders, at the end o f the fiscal year o f said corpora
tion next preceding the election o f directors, and when a
director has been elected in accordance with the provi
sions o f this act it shall be lawful for him to continue as
such foi; one year thereafter.
W hen any person elected or chosen as a director or
officer or selected as an employee o f any bank or other
corporation subject to the provisions o f this act is eligible
at the time o f his election or selection to act for such bank
or other corporation in such capacity his eligibility to act
in such capacity shall not be affected and he shall not
become or be deemed amenable to any o f the provisions
hereof by reason o f any change in the affairs o f such bank
or other corporation from whatsoever cause, whether
specifically excepted by any o f the provisions hereof or
not, until the expiration o f one year from the date o f his
election or employment.
N ote.— See Sec. 25, Federal reserve act, page 165, post, in refer
ence to directors of foreign branches.

ENFORCEMENT OF ACT IN REFERENCE TO INTERLOCKING DIRECTORATES.

235.
Sec. 11.— That authority to enforce c o m p l i a n c e 19^ct Oct. 15,
with sections two, three, seven and eight o f this act by 38 stat.* l .’,
the persons respectively subject thereto is hereby vested:734,
in the Interstate Commerce Commission where applicable
to common carriers, in the Federal Reserve Board where
applicable to banks, banking associations and trust com
panies, and in the Federal Trade Commission where ap
plicable to all other character o f commerce, to be exer
cised as follow s:
Whenever the commission or board vested with juris
diction thereof shall have reason to believe that any
person is violating or has violated any o f the provisions
o f sections two, three, seven, and eight o f this act, it shall
issue and serve upon such person a complaint stating its
charges in that respect, and containing a notice o f a
hearing upon a day and at a place therein fixed at least
thirty days after the service o f said complaint. The

ORGANIZATION AND POWERS.

person so complained o f shall have the right to appear
at the place and time so fixed and show cause why an
order should not be entered by the commission or board
requiring such person to cease and desist from the vio
lation o f the law so charged in said complaint. A n y
person may make application, and upon good cause shown
may be allowed by the commission or board, to intervene
and appear in said proceeding by counsel or in person.
The testimony in any such proceeding shall be reduced to
writing and filed in the office o f the commission or board.
I f upon such hearing the commission or board, as the
case may be, shall be o f the opinion that any o f the pro
visions o f said sections have been or are being violated, it
shall make a report in writing in which it shall state its
findings as to the facts, and shall issue and cause to be
served on such person an order requiring such person to
cease and desist from such violations, and divest itself o f
the stock held or rid itself o f the directors chosen con
trary to the provisions o f sections seven and eight* o f this
act, if any there be, in the manner and within the time
fixed by said order. Until a transcript o f the record in
such hearing shall have been filed in a circuit court o f
appeals o f the United States, as hereinafter provided,
the commission or board may at any time, upon such no
tice and in such manner as it shall deem proper, m odify
or set aside, in whole or in part, any report or any order
made or issued by it under this section.
I f such person fails or neglects to obey such order of
the commission or board while the same is in effect, the
commission or board may apply to the circuit court o f
appeals o f the United States, within any circuit where
the violation complained o f was or is being committed
or where such person resides or carries on business, for
the enforcement o f its order, and shall certify and file
with its application a transcript o f the entire record in
the proceeding, including all the testimony taken and the
report and order o f the commission or board. U pon such
filing o f the application and transcript the court shall
cause notice thereof to be served upon such person and
thereupon shall have jurisdiction o f the proceeding and
o f the question determined therein, and shall have power
to make and enter upon the pleadings, testimony, and
proceedings set forth in such transcript a decree affirm
ing, m odifying, or setting aside the order o f the commis
sion or board. The findings o f the commission or board
as to the facts, i f supported by testimony, shall be con
clusive. I f either party shall apply to the court for leave
to adduce additional evidence, and shall show to the satis
faction o f the court that such additional evidence is ma
terial and that there were reasonable grounds for the
failure to adduce such evidence in the proceeding before
the commission or board, the court may order such addi
tional evidence to be taken before the commission or

ORGANIZATION AND POWERS.

board and to be adduced upon the hearing in such man
ner and upon such terms and conditions as to the court
may seem proper. The commission or board may m odify
its findings as to the facts, or make new findings, by rea
son o f the additional evidence so taken, and it shall file
such modified or neAv findings, which, if supported by
testimony, shall be conclusive, and its recommendations,
if any, for the modification or setting aside o f its original
order, with the return o f such additional evidence. The
judgment and decree o f the court shall be final, except
that the same shall be subject to review by the Supreme
Court upon certiorari as provided in section two hundred
and forty o f the Judicial Code.
Any party required by such order o f the commission
or board to cease and desist from a violation charged
may obtain a review o f such order in said circuit court o f
appeals by filing in the court a written petition praying
that the order o f the commission or board be set aside.
A copy o f such petition shall be forthwith served upon
the commission or board, and thereupon the commis
sion or board forthwith shall certify and file in the court
a transcript o f the record as hereinbefore provided.
Upon the filing o f the transcript the court shall have the
same jurisdiction to affirm, set aside, or m odify the order
o f the commission or board as in the case o f an applica
tion by the commission or board for the enforcement o f
its order, and the findings o f the commission or board as
to the facts, if supported by testimony, shall in like man
ner be conclusive.
The jurisdiction o f the circuit court o f appeals o f the
United States to enforce, set aside, or m odify orders o f
the commission or board shall be exclusive.
Such proceedings in the circuit court o f appeals shall
be given precedence over other cases pending therein,
and shall be in every way expedited. No order o f the
commission or board or the judgment o f the court to
enforce the same shall in any wise relieve or absolve any
person from any liability under the antitrust acts.
Complaints, orders, and other processes o f the commis
sion or board under this section may be served by any
one duly authorized by the commission or board, either
(a) by delivering a copy thereof to the person to be served,
or to a member o f the partnership to be served, or to the
president, secretary, or other executive officer or a direc
tor o f the corporation to be served; or (b) by leaving a
copy thereof at the principal office or place o f business o f
such person; or (c) by registering and mailing a copy
thereof addressed to such person at his principal office or
place o f business. The verified return by the person so
serving said complaint, order, or other process setting
forth the manner o f said service shall be proof o f the
same, and the return post-office receipt for said complaint,
order, or other process registered and mailed as aforesaid
shall be proof o f the service o f the same.

ORGANIZATION AND POWERS.

OATH REQUIRED FROM DIRECTORS.
1864 *

l unio6
2 ®®- ®ec- 51^7.— Each director, when appointed or
9 113 stat! elected, shall take an oath that he will, so far as the duty
devolves on him, diligently and honestly administer the
affairs o f such association, and will not knowingly violate,
or willingly permit to be violated, any o f the provisions
o f this title, and that he is the owner in good faith, and in
his own right, o f the number o f shares o f stock required
by this title, subscribed by him, or standing in his name
on the books o f the association, and that the same is not
hypothecated, or in any way pledged, as security fo r any
loan or debt. Such oath, subscribed by the director mak
ing it, and certified by the officer before whom it is taken,
shall be immediately transmitted to the Comptroller o f
the Currency, and shall be filed and preserved in his Office.
FILLING VACANCIES.

isilf cUni 06; 237. Sec. 5148.— A n y vacancy in the board shall be
stat* l ° ’102*3, fiHed by appointment by the remaining directors, and
a' "
’ any director so appointed shall hold his place until the
next election.
PROCEEDINGS WHERE NO ELECTION IS HELD ON THE
PROPER DAY.
1864,* ^uni06
238. Sec. 5149.— I f, from any cause, an election o f distat ii° ioa1^ rec^ors
n°t made at the time appointed, the association
a * * ' shall not for that cause be dissolved, but an election may
be held on any subsequent day, thirty days’ notice thereof
in all cases having been given in a newspaper published
in the city, town, or county in which the association is
located; and if no newspaper is published in .such city,
town, or county, such notice shall be published in a news
paper published nearest thereto. I f the articles o f asso
ciation do not fix the day on which the election shall be
held, or if no election is held on the day fixed, the day for
the election shall be designated by the board o f directors
in their by-laws, or otherwise; or i f the directors fail to
fix the day, shareholders representing two-thirds o f the
shares may do so.

ELECTION OF PRESIDENT OF THE BOARD.

i ^ f June10|’ 239. Sec. 5150.— One o f the directors, to be chosen by
sec. 3; 13 stat! thel)oard, shall be the president o f the board.
l., 102.

INDIVIDUAL LIABILITY OF SHAREHOLDERS.
1864* cUni06
sec. ’ 1 2 ; ri
stat. l., 102.

240. Sec. 5151.— The shareholders o f every national
banking association shall be held individually responsieqUally and ratably, and not one fo r another, for all
contracts, debts, and engagements o f such association, to
the extent o f the amount o f their stock therein, at the
par value thereof, in addition to the amount invested in

ORGANIZATION AND POWERS.

such shares; except that shareholders o f any banking
association now existing under State laws, having not
less than five millions o f dollars o f capital actually paid
in, and a surplus o f twenty per centum on hand, both to
be determined by the Comptroller o f the Currency, shall
be liable only to the amount invested in their shares;
and such surplus o f twenty per centum shall be kept
undiminished, and be in addition to the surplus provided
for in this title; and if at any time there is a deficiency
in such surplus o f twenty per centum, such association
shall not pay any dividends to its shareholders until the
deficiency is made good; and in case o f such deficiency,
the Comptroller o f the Currency may compel the asso
ciation to close its business and wind up its affairs under
the provisions o f chapter fo u r 1 o f this title.
N ote .— See act of June 30, 1876, paragraph 521, post, for en
forcement of liability prescribed by this section in cases of
voluntary liquidation.

INDIVIDUAL LIABILITY OF SHAREHOLDERS— LIABILITY
OF SHAREHOLDERS WHO HAYE TRANSFERRED THEIR
SHARES.

241. Sec 23.— The stockholders o f every national bank- 19^ t Dec. ^23,
ing association shall be held individually responsible for 38^ stat.' l/,
all contracts, debts, and engagements o f such association,
each to the amount o f his stock therein, at the par value
thereof in addition to the amount invested in such stock.
The stockholders in any national banking association who
shall have transferred their shares or registered the trans
fer thereof within sixty days next before the date o f the
failure o f such association to meet its obligations, or with
knowledge o f such impending failure, shall be liable to
the same extent as if they had made no such transfer, to
the extent that the subsequent transferee fails to meet
such liability; but this provision shall not be construed to
affect in any way any recourse which such shareholders
might otherwise have against those in whose names such
shares are registered at the time o f such failure.
EXECUTORS, TRUSTEES, ETC., NOT PERSONALLY LIABLE.

242. Sec. 5152.— Persons holding stock as executors, ad- lg£ct
Q3,
ministrators, guardians, or trustees, shall not be person-sec. ’ 63: 13
ally subject to any liabilities as stockholders; but the stat* L" 118,
estates and funds in their hands shall be liable in like
manner and to the same extent as the testator, intestate,
wTard, or person interested in such trust-funds would be,
if living and competent to act and hold the stock in his
own name.
1 Chapter 5 of this compilation.

ORGANIZATION AND POWERS.

NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA
RIES OP PUBLIC MONETS.
^un i 0g’

243. Sec. 5153 [as amended 1907].— A ll national banking
associations, designated fo r that purpose by the Secre3 , tary o f the Treasury, shall be depositaries o f public
Act. Mar. ■
seel1! ; 3 i s8tat* money 5 under such regulations as may be prescribed by
l.,1448.
'th e Secretary; and they may also be employed as finani 907\' « t S ; cial agents o f the Government; and they shall perform
l c ‘ i 25o.4 Stat
suc^ reasonable duties, as depositaries o f public money
and financial agents o f the Government, as may be re
quired o f them. The Secretary o f the Treasury shall
require the associations thus designated to give satisfac
tory security, by the deposit o f United States bonds and
otherwise, for the safe-keeping and prompt payment o f
the public money deposited with them, and for the faith
ful performance o f their duties as financial agents o f the
Government: Provided, That the Secretary shall, on or
before the first o f January o f each year, make a public
statement o f the securities required during that year for
such deposits. A nd every association so designated as
receiver or depositary o f the public money shall take and
receive at par all o f the national currency bills, by what
ever association issued, which have been paid into the
Government for internal revenue, or for loans or stocks:
Provided, That the Secretary o f the Treasury shall dis
tribute the deposits herein provided for, as far as practi
cable, equitably between the different States and sections.
sec. ’

45;

N ote .— For other provisions relating to duties and liabilities of
depositaries see following sections of the Revised Statutes of the
United States:
Sec. 3640. Transfer of moneys from depositaries to Treasury
authorized.
Sec. 3641. Transfer of postal deposits.
Sec. 3642. Accounts of postal deposits.
Sec. 3643. Entry of each deposit, transfer, and payment.
Sec. 3644. Public moneys in Treasury and depositaries subject
to draft of Treasurer.
Sec. 3645. Regulations for presentment of drafts.
Sec. 3646. Duplicates for lost or stolen checks authorized.
Sec. 3647 and amendments. Duplicate check when officer who
issued is dead.
Sec. 3648 and amendments. Advances of public money pro
hibited.
Sec. 3649. Examination of depositaries.
See also Government Depositaries, paragraphs 730-738, post.

GOYERNMENT DEPOSITS IN FEDERAL RESERYE BANKS.
Act Dec. 23,
244. Sec. 15.— The moneys held in the general fund o f
8813,stat.* ^ t h e Treasury, except the five per centum fund for the
265redemption o f outstanding national-bank notes and the
funds provided in this act fo r the redemption o f Federal
reserve notes may, upon the direction o f the Secretary o f
the Treasury, be deposited in Federal reserve banks,

ORGANIZATION AND POWERS.

which banks, when required by the Secretary o f the
Treasury, shall act as fiscal agents o f the United States;
and the revenues o f the Government or any part thereof
may be deposited in such banks, and disbursements may
be made by checks drawn against such deposits.
No public funds o f the Philippine Islands, or o f the
postal savings, or any Government funds, shall be de
posited in the continental United States in any bank not
belonging to the system established by this act: Pro vided, however, That nothing in this act shall be con
strued to deny the right o f the Secretary o f the Treasury
to use member banks as depositories.
N ote .— Section 7 of the act approve,d April 24, 1917, known as
“An act to authorize an issue of bonds to meet expenditures for
the national security and defense, and, for the purpose of assist
ing in the prosecution of the war, to extend credit to foreign gov
ernments, and for other purposes,” authorizes the Secretary to
deposit proceeds of sale of such bonds in non member banks un
der certain circumstances. For full text of section 7 see page
184, post.

CONVERSION OF STATE BANKS INTO NATIONAL BANK
ING ASSOCIATIONS.

245. Sec. 5154.— A ny bank incorporated by special law l Act ^une10^’
o f any State or o f the United States or organized under sec. ’ 44'; ih
the general laws o f any State or o f the United States and stActLfioc.12s?3,
having an unimpaired capital sufficient to entitle it toi| 13.gt^ c- 8;
become a national banking association under the pro- 258.
visions o f the existing laws may, by the vote o f the
shareholders owning not less than fifty-one per centum
of the capital stock o f such bank or banking association,
with the approval o f the Comptroller o f the Currency
be converted into a national banking association, with
any name approved by the Comptroller o f the Currency:
Provided, however, That said conversion shall not be in
contravention o f the State law. In such case the articles
o f association and organization certificate may be exe
cuted by a majority of the directors of the bank or bank
ing institution, and the certificate shall declare that the
owners o f fifty-one per ccntum o f the capital stock have
authorized the directors to make such certificate and to
change or convert the bank or banking institution into a
national association. A majority o f the directors, after
executing the articles o f association and the organization
certificate, shall have power to execute all other papers
and to do whatever may be required to make its organiza
tion perfect and complete as a national association. The
shares o f any such bank may continue to be for the same
amount each as they were before the conversion, and the
directors may continue to be directors o f the association
until others are elected or appointed in accordance with
the provisions o f the statutes of the United States. When
the Comptroller has given to such bank or banking asso
ciation a certificate that the provisions o f this A ct have

ORGANIZATION AND POWERS.

been complied with, such bank or banking association,
and all its stockholders, officers, and employees, shall
have the same powers and privileges, and shall be subject
to the same duties, liabilities, and regulations, in all re
spects, as shall have been prescribed by the Federal R e
serve A ct and by the national banking A ct for associa
tions originally organized as national banking associa
tions.
N ote.— The act of 1864 authorized any State bank which was a
stockholder in any other bank, by authority of State laws, to con
tinue to hold its stock, although either bank or both might have
become converted into national banks. This provision was incor
porated in section 5154, United States Revised Statutes, but was
stricken out in the revision of this section by the act of December
23, 1913.

STATE BANKS HATING BRANCHES.
1865*c.^78%ec!

246. Sec. 5155.— It shall be law ful for any bank or
®tat* L*’ banking association organized under State laws, and hav
ing branches, the capital being joint and assigned to and
used by the mother bank and branches in definite propor
tions, to become a national banking association in con
form ity with existing laws, and to retain and keep in
operation its branches, or such one or more o f them as it
may elect to retain; the amount o f the circulation re
deemable at the mother bank, and each branch, to be
regulated by the amount o f capital assigned to and used
by each.
RESERYATION OF EIGHTS OF ASSOCIATIONS ORGANIZED
UNDER ACT OF 1863.

1864^ ^uni 06, 247. Sec. 5156.— Nothing in this title shall effect any
Itat* L2;ii813aPP°^n^ en^ ma(le, acts done, or proceedings had or
commenced prior to the third day o f June, eighteen hun
dred and sixty-four, in or toward the organization o f any
national banking association under the act o f February
twenty-five, eighteen hundred and sixty-three; but all
associations which, on the third day o f June, eighteen
hundred and sixty-four, were organized or commenced to
be organized under that act, shall enjoy all the rights and.
privileges granted, and be subject to all the duties, liabili
ties, and restrictions imposed by this title, notwithstand
ing all the steps prescribed by this title for the organiza
tion o f associations were not pursued, i f such associations
were duly organized under that act.

ORGANIZATION AND POWERS.

OBGANIZATION AND POWEBS.

OBTAINING AND ISSUING CIRCULATING NOTES.

CHAPTER III.
OBTAINING AND ISSUING CIRCULATING NOTES.
300. 5157. What associations are gov
erned by provisions of
chapters two, three, and
four.
301. 5158. Registered bonds intended
by the term
“United
States bonds.”
302. Act December 23, 1913, as amend
ed. Deposit of bonds not
required before issuance
of certificate authorizing
t h e commencement of
business.
303. Act December 21, 1905. Two per
cent
Panama
Canal
bonds have all rights and
privileges
accorded
to
other two per cent bonds
of the United States.
304. 5160. Increase or reduction of
deposit
to correspond
with capital.
305. 5161. Exchange of coupon for
registered bonds.
306. 5162. Manner of making trans
fers of bonds.
307. 5163. Registry of transfers.
308. 5164. Notice of transfer to be
given to association in
terested.
300. 5165. Examination of registry
and bonds.
310. 5166. Annual
examination
of
bonds by association.
311. 5167. General provisions respect
ing bonds.
312. Act June 20, 1874. Withdrawal
of circulating notes on
deposit of lawful money
and withdrawal of bonds.
313. Act July 12, 1882. Amount of
bonds required to be on
deposit;
reduction
of
amount or retirement in
full of circulating notes.
314. Act July 12, 1882, and act March
4, 1907.
Limitation on
withdrawal
of bonds;
consent of Comptroller of
Currency and Secretary
of the Treasury neces
sary.
164312°— 20------ 4

315. Act December 23, 1913. Refund
ing of bonds under Fed
eral reserve act; retire
ment of circulating notes.
316. Act December 23, 1913.
Pur
chase of United States
bonds by Federal reserve
banks.
317. Act December 23, 1913. Issue of
circulating notes to Fed
eral reserve banks on se
curity of United States
bonds; circulating notes
so issued obligations of
Federal reserve bank.
318. Act December 23, 1913. Issue of
Treasury gold notes of
the United States in ex
change for certain United
States bonds.
319. 5168. Comptroller to determine
if association can com
mence business.
320. 5169. Certificate of authority to
commence banking to be
issued.
321. 5170. Publication of certificate.
322. 5171. Repealed by act July 12,
1882.
323. Act March 14, 1900, as amended.
D e l i v e r y of circulating
notes.
324. 5172. P r i n t i n g denominations
and form of the circulat
ing nbtes.
325. Act June 20, 1874. Charter num
ber to be printed on
notes.
326. Act March 3, 1875. Distinctive
paper for printing notes.
V/27. 5173. Plates and dies to be under
control of the Comptrol
ler ; expenses of Cur
rency Bureau to be paid
out of proceeds of taxes,
or duties, assessed and
collected on the circula
tion of national banking
asociations.
328. 5174. Examination of plates and
dies.
329. Act October 5, 1917. Limit to
issue of notes under five
dollars.
49

OBTAINING AND ISSUING CIRCULATING NOTES.

330. 5176. Repealed by act July 12,
1882.
331. 5177. Repealed by act January
14, 1875.
332. Act of January 14, 1875. Aggre
gate amount of circulat
ing notes not limited.
333. 5178. Repealed by act January
14, 1875.
334. 5179. Repealed by act January
14, 1875.
335. 5180. Repealed by act January
14, 1875.
336. 5181. Repealed by act January
14, 1875.
337. 5182. For what demands na
tional-bank notes may be
received.
338. 5183. Issue of post notes, etc.,
prohibited.
339. 5184. Destroying and replacing
worn-out and mutilated
notes.

340. Act June 23, 1874. Maceration
of national-bank notes.
341. 5185. Organization of associa
tions to issue gold notes.
342. 5186. Reserve requirements for
gold banks.
343. Act of February 14, 1880. Con
version of national gold
banks into c u r r e n c y
banks.
344. 5187. Penalty for issuing circu
lating ribtes to unauthor
ized associations.
345. Act March 4, 1909, ■section 175,
formerly section 5188,
Revised Statutes. Pen
alty for imitating bank
circulation. Use of same
for advertising purposes.
346. Act March 4, 1909, section 176,
formerly section 5189,
Revised Statutes.
Pen
alty for mutilating cir
culation.

WHAT ASSOCIATIONS ARE GOVERNED BY PROVISIONS
OF CHAPTERS TWO, THREE, AND FOUR.

gee. 5157, r. s.

300. See. 5157.— The provisions of chapters two, three,
and fo u r 1 o f this title, which are expressed without re
strictive words, as applying to “ national banking associ
ations,” or to “ associations,” apply to all associations
organized to carry on the business o f banking under any
act o f Congress.
N ote.— Federal reserve banks are not governed by this act, but
by the Federal reserve act.

REGISTERED BONDS INTENDED BY THE TERM “ UNITED
STATES BONDS.”
186? cUni 06’
®ec< 5158.— The term “ United States bonds,” as
sec. 4; 13 stat! used throughout this chapter, shall be construed to mean
l** 10°*
registered bonds o f the United States.

DEPOSIT OF BONDS NOT REQUIRED BEFORE ISSUANCE
OF CERTIFICATE AUTHORIZING THE COMMENCEMENT
OF BUSINESS.
1913 *

secC’ 1 7 ;
®ec*
— ®° muc^ o;f
provisions o f section
stat.' l .; fifty-one hundred and fifty-nine o f the Eevisecl Statutes
Act June 21, o f the United States, and section four o f the A ct o f June
1917, sec. 9.
twentieth, eighteen hundred and seventy-four, and sec
tion eight o f the A ct o f July twelfth, eighteen hundred
and eighty-two, and o f any other provisions o f existing
statutes as require that before any national banking
association shall be authorized to commence banking
business it shall transfer and deliver to the Treasurer of
the United States a stated amount o f United States
registered bonds, and so much o f those provisions or o f

Chapters three, four, and five of this compilation.

OBTAINING AND ISSUING CIRCtTLA*TING NOTES.

any other provisions o f existing statutes as require any
national banking association now or hereafter organized
to maintain a minimum deposit o f such bonds with the
Treasurer is hereby repealed.
lions.— Section 5159 referred to above is as follows: “ Every as
sociation, after having complied with the provisions of this title,
preliminary to the commencement of the banking business, and
before it shall be authorized to commence banking business under
this title, shall transfer and deliver to the Treasurer of the
United States any United States registered bonds, bearing inter
est, to an amount not less than thirty thousand dollars and not
less than one-third of the capital stock paid in. Such bonds
shall be received by the Treasurer upon deposit, aud shall be
by him safely kept in his office* until they shall be otherwise
disposed of, in pursuance of the provisions of this title.” (See
also note under section 5160.)

TWO PER CENT PANAMA CANAL BONDS HATE ALL
RIGHTS AND PRIVILEGES ACCORDED TO OTHER TWO
PER CENT BONDS OF THE UNITED STATES. ACT DE
CEMBER 21, 1905.
303. Sec. 1.— That the two per cent bonds o f the United Act Dec. 21,
States authorized by section eight o f the act entitled “ An 34°ltWs l.’, £'
act to provide for the construction o f a canal connecting
the waters o f the Atlantic and Pacific oceans,” approved
June twenty-eight, nineteen hundred and two, shall have
all the rights and privileges accorded by law to other two
per cent bonds o f the United States, and every national
banking association having on deposit, as provided by
law, such bonds issued under the provisions o f said sec
tion eight o f said act approved June twenty-eight, nine
teen hundred and two, to secure its circulating notes, shall
pay to the Treasurer o f the United States, in the months
o f January and July, a tax o f one-fourth o f one per cent
each half year upon the average amount o f such o f its
notes in circulation as are based upon the deposit o f said
two per cent bonds; and such taxes shall be in lieu o f ex
isting taxes on its notes in circulation imposed by section
fifty-two hundred and fourteen o f the Revised Statues.
N ote .— Only bonds available as security for national bank circu
lation are the consols of 1930 2 per cent Panama Canal bonds, and
4 per cent bonds of 1925.

INCREASE OR REDUCTION OF DEPOSIT TO CORRESPOND
WITH CAPITAL.
304. Sec. 5160.— [The deposit of bonds made by each as- Act June 3,
sociation shall be increased as its capital may be paid up gf<?4, iq ; 10i63
or increased, so that every association shall at all times stat- L-» i°4have on deposit with the Treasurer registered United
States bonds to the amou/nt of at least one-third of its
capital stock actually paid iri\. A nd any association that

may desire to reduce its capital or close up its business
and dissolve its organization, may take up its bonds
upon returning to the Comptroller its circulating notes
in the proportion hereinafter required, or may take up

OBTAINING AND ISSUING CIRCULATING NOTES,

any excess o f bonds beyond [ one-third of its capital
stock], and upon which no circulating notes have been
delivered.
N ote .— All provisions of law requiring national banking associa
tions to maintain a minimum deposit of bonds were repealed by
the act of June 21, 1917. See paragraph 302 ante. Prior to the
passage of that act provisions of sections 5159 and 5160 requiring
national banks organized prior to December 23, 1913, to deposit
bonds to an amount not less than $30,000 and not less than onethird of the capital stock paid in were held to be modified by the
acts of June 20, 1874, and July 12, 1882. Section 4 of the act of
June 20, 1874, which follows section 5167, provided in part that the
amount of bonds on deposit for circulation should not be reduced
below $50,000. That fixed the amount of bonds required to be de
posited by national banks organized prior to December 23, 1913,
and having a capital of over $150,000. National banks having a
capital of $150,000 or less were not required to keep on deposit
bonds in excess of one-fourth of their capital stock as security
for their circulating notes by act of July 12, 1882, chapter 290, sec
tion 8. This act follows section 5167, Revised Statutes. All na
tional banks having a capital of $150,000 or less and organized
prior to December 23, 1913, were required to keep on deposit bonds
equal to one-fourth of their capital stock, and if any bank of such
capitalization organized since December 23, 1913, desired to take
out circulation it was required to deposit bonds in like amount as
under the old law. Similarly all banks organized prior to Decem
ber 23, 1913, with capital stock of over $150,000 were required to
keep on deposit bonds equal to $50,000, and any bank of such
capitalization organized since December 23, 1913, if it desired to
take out circulation, was required to deposit bonds in that amount.
Section 18 of the Federal Reserve act provides that after De
cember 23, 1915, which is 2 years from the passage of that act,
and at any time during a period of 20 years thereafter, any mem
ber bank desiring to retire the whole or any part of its circulating
notes, may file with the Treasurer of the United States an appli
cation to sell for its account, at par and accrued interest, United
States bonds securing circulation to be retired. This section fur
ther provides that the Federal Reserve Board, may, in its dis
cretion, require the Federal reserve banks to purchase such bonds
from the banks whose applications have been filed with the
Treasurer at least 10 days before the end of any quarterly period
at which the Federal Reserve Board may direct the purchase to
be made: Provided, That Federal reserve banks shall not be
permitted to purchase an amount to exceed $25,000,000 of such
bonds in any one year, and which amount shall include bonds
acquired under section 4 of that act by the Federal reserve bank.

EXCHANGE OF COUPON FOE EEGISTEEED BONDS.
Act June 3,
305. Sec. 5161.— T o facilitate a compliance with the
1864, c iw ’ two preceding sections, the Secretary o f the Treasury is
stat.' l ., 104. authorized to receive from any association, and cancel,
any United States coupon bonds, and to issue in lieu
thereof registered bonds o f like amount, bearing a like
rate o f interest, and having the same time to run.

MANNEE OF MAKING TEANSFEES OF BONDS.
Act June 3,
306. Sec. 5162.— A ll transfers o f United States bonds,
1 9 ; 10Lsmade by any association under the provisions o f this
l ., 105. title, shall be made to the Treasurer o f the United

sec!4,
stat.

States in trust for the association, with a memorandum
written or printed on each bond, and signed by the

OBTAINING AND ISSUING CIRCULATING NOTES.

cashier, or some other officer o f the association making
the deposit. A receipt shall be given to the association,
by the Comptroller o f the Currency, or by a clerk ap
pointed by him for that purpose, stating that the bond
is held in trust for the association on whose behalf the
transfer is made, and as security for the redemption
and payment o f any circulating notes that have been or
may be delivered to such association. No assignment or
transfer o f any such bond by the Treasurer shall be
deemed valid unless countersigned by the Comptroller
o f the Currency.
REGISTRY OF TRANSFERS.

307. Sec. 5163.— The Comptroller o f the Currency shall 18^ t cUni 06
keep in his office a book in which he shall cause to be secs/19-20 3
entered, immediately upon countersigning it, everystat* L* 105‘
transfer or assignment by the Treasurer o f any bonds
belonging to a national banking association, presented
for his signature. H e shall state in such entry the name
of the association from whose accounts the transfer is
made, the name o f the party to whom it is made, and
the par value o f the bonds transferred.
NOTICE OF TRANSFER TO BE GIVEN TO ASSOCIATION
INTERESTED.

308. Sec. 5164.— The Comptroller o f the Currency shall, 18^£t *June10^
immediately upon countersigning and entering any trans- see. * 1 9 ; i;i
fer or assignment by the Treasurer, o f any bonds b elon g-" tat* L-’ 10°'
ing to a national banking association, advise by mail the
association from whose accounts the transfer is made, o f
the kind and numerical designation o f the bonds, and the
amount thereof so transferred.
EXAMINATION OF REGISTRY AND BONDS.

309. Sec. 5165.— The Comptroller o f the Currency shall lgAct Jun®0j*«
have at all times, during office hours, access to the books sec. * 2 0 ; 1:;
o f the Treasurer o f the United States for the purpose o f stat- L-» 10,)ascertaining the correctness o f any transfer or assignment
o f the bonds deposited by an association, presented to the
Comptroller to countersign; and the Treasurer shall have
the like access to the book mentioned in section fifty-one
hundred and sixty-three, during office hours, to ascertair
the correctness o f the entries in the same; and the Comp
troller shall also at all times have access to the bonds on
deposit with the Treasurer, to ascertain their amount and
condition.
ANNUAL EXAMINATION OF BONDS BY ASSOCIATION.

310. Sec. 5166.— Every association having bonds depos- Act June 3,
ited in the office o f the Treasurer o f the United States J®®4, 2 5 ; ]°i^
shall, once or oftener in each fiscal year, examine a n d stat. l . , 100.
compare the bonds pledged by the association with the
books o f the Comptroller o f the Currency and with the

§4

OBTAINING AND ISSUING C IR C U IT IN G NOTES.

accounts o f the association, and, i f they are found correct,
to execute to the Treasurer a certificate setting forth the
different kinds and the amounts thereof, and that the
same are in the possession and custody o f the Treasurer
at the date o f the certificate. Such examination shall be
made at such time or times, during the ordinary business
^ hours, as the Treasurer and the Comptroller, respectively,
* may select, and may be made by an officer or agent o f
such association, duly appointed in writing for that pur
pose; and Jhis certificate before mentioned shall be o f
like force and validity as i f executed by the president or
cashier. A duplicate o f such certificate, signed by the
Treasurer, shall be retained by the association.
GENERAL PROVISIONS RESPECTING BONDS.
Act June 3, 311. Sec. 5167.— The bonds transferred to and deposited
Jlc64, 2 6 ; 10i6^with the Treasurer o f the United States, by any assostat. l., io7. ciation, fo r the security o f its circulating notes, shall be
held exclusively fo r that purpose, until such notes are
redeemed, except as provided in this title. The Com p
troller o f the Currency shall give to any such association
powers o f attorney to receive and appropriate to its own
use the interest on the bonds which it has so transferred
to the Treasurer; but such powers shall become inopera
tive whenever such association fails to redeem its circu
lating notes. Whenever the market or cash value o f any
bonds thus deposited with the Treasurer is reduced below
the amount o f the circulation issued fo r the same, the
Comptroller may demand and receive the amount o f such
depreciation in other United States bonds at cash value,
o r in money, from the association, to be deposited with
the Treasurer as long as such depreciation continues.
A nd the Comptroller, upon the terms prescribed by the
Secretary o f the Treasury, may permit 'an exchange to be
made o f any o f the bonds deposited with the Treasurer
by any association, for other bonds o f the United States
authorized to be received as security for circulating notes,
i f he is o f opinion that such an exchange can be made
without prejudice to the United States; and he may
direct the return o f any bonds to the association wThich
transferred the same, in sums o f not less than one thou
sand dollars, upon the surrender to him and the cancella
tion o f a proportionate amount o f such circulating notes:
Provided, That the remaining bonds which shall have
been transferred by the association offering to surrender
circulating notes are equal to the amount required for the
circulating notes not surrendered by such association, and
that the amount o f bonds in the hands o f the Treasurer is
not diminished below the amount required to be kept on
deposit with him, and that there has been no failure by
the association to redeem its circulating notes, nor any
other violation by it. o f the provisions o f this title, and

OBTAINING AND ISSUING CIRCULATING NOTES.

that the market or cash value o f the remaining bonds is
not below the amount required fo r the circulation issued
for the same.
N ote.— All provisions of law requiring national banking asso
ciations to maintain a minimum deposit of bonds were repealed by
the act of June 21, 1917. See paragraph 302, ante.

WITHDRAWAL OF CIRCULATING NOTES ON DEPOSIT OF
LAWFUL MONEY AND WITHDRAWAL OF BONDS. ACT
JUNE 20, 1874.

312. Sec. 4.— That any association organized under this 18^ct Jcune;?20,
act, or any o f the acts o f which this is an amendment, sec. 4; is stat!
desiring to withdraw its circulating notes, in whole or in L” 124,
part, may, upon the deposit o f lawful money with the
Treasurer o f the United States in sums o f not less than
nine thousand dollars, take up the bonds which said asso
ciation has on deposit with the Treasurer for the security
o f such circulating notes; which bonds shall be assigned
to the bank in the manner specified in the nineteenth sec
tion o f the national-bank a ct; and the outstanding notes
of said association, to an amount equal to the legal-tender
notes deposited, shall be redeemed at the Treasury o f the
United States, and destroyed as now provided by law :
Provided, That the amount o f the bonds on deposit fo r
circulation shall not be reduced below fifty thousand
dollars.
N ote.— Other sections of this act referred to under paragraphs
401 and 402, post. Section 19 of the national-bank act is incor
porated in Revised Statutes, sections 5162-5164. See also note
under section 5160, paragraph 304, ante.

AMOUNT OF BONDS REQUIRED TO BE ON DEPOSIT; REDUCTION OF AMOUNT OR RETIREMENT IN FULL OF
CIRCULATING NOTES. ACT JULY 12, 1882.

313. Sec. 8.— That national banks now organized {or Act July 12 ,
herafter organized) , having a capital o f one hundred ^e8c82^ £2
and fifty thousand dollars, or less, shall not be r e q u i r e d L-»
to keep on deposit or deposit with the Treasurer o f the
United States United States bonds in excess o f onefourth o f their capital stock as security for their circu
lating notes; but such banks shall keep on deposit or
deposit with the Treasurer o f the United States the
amount o f bonds as herein required. A nd such o f those
banks having on deposit bonds in excess o f that amount
are authorized to reduce their circulation by the deposit
o f lawful money as provided by law ; [provided That the

amount of such circulating notes shall not in any case
emceed ninety per centum of the par value of the bonds
deposited as herein provided:] Provided further, That
the national banks which shall hereafter make deposits
o f law ful money for the retirement in full o f their circu
lation shall at the time o f their deposit be assessed for
the cost o f transporting and redeeming their notes then
outstanding, a sum equal to the average cost o f the re-

104."

OBTAINING AND ISSUING CIRCULATING NOTES.

demption o f national-bank notes during the preceding
year, and shall thereupon pay such assessment. A nd
all national banks which have heretofore made or shall
hereafter make deposits o f lawful money for the reduc
tion o f their circulation shall be assessed and shall pay
an assessment in the manner specified in section three o f
the act approved June 20, 1874, for the cost o f transport
ing and redeeming their notes redeemed from such de
posits subsequently to June 30, 1881.
N ote.— The limitation of the circulation not to exceed ninety
per cent of the bonds deposited is superseded by act March 14,
1900, which follows Revised Statutes 5171. For act June 20, 1874,
section 3, mentioned in this section, see paragraph 414, post.
All provisions of law requiring national banking associations to
maintain a minimum deposit of bonds were repealed by the act of
June 21, 1917, paragraph 302, ante.

LIMITATION ON WITHDRAWAL OF BONDS— CONSENT OF
COMPTROLLER OF CURRENCY AND SECRETARY OF THE
TREASURY NECESSARY.
1882 * JcUly29o
314. Sec. 9.— That any national banking association
sec. 9; 22 stat! now organized, or hereafter organized, desiring to withAct^Mar. 4 , draw its circulating notes, upon a deposit o f lawful
34° 7 fetat.c* l .; money with the Treasurer o f the United States, as pro1290.
* ’’ vided in section four o f the act o f June twentieth, eigh
teen hundred and seventh-four, or as provided in this
act, is authorized to deposit law ful money and, with the
consent o f the Comptroller o f the Currency and the
approval o f the Secretary o f the Treasury, withdraw a
proportionate amount o f the bonds held as security for
its circulating notes in the order o f such deposits: Pro
vided, That not more than nine millions o f dollars o f
lawful money shall be deposited during any calendar
month for this purpose: And provided further, That the
provisions o f this section shall not apply to bonds called
for redemption by the Secretary o f the Treasury, nor to
withdrawal o f circulating notes in consequence thereof.

REFUNDING OF BONDS UNDER THE FEDERAL RESERYE
ACT; RETIREMENT OF CIRCULATING NOTES.
1913**sec°'is*
®ec* — A fter ^W0 years from the passage o f this
38 stat.’ L.’, act, and at any time during a period o f twenty years
6*
thereafter, any member bank desiring to retire the whole
or any part o f its circulating notes, may file with the
Treasurer o f the United States an application to sell for
its account, at par and accrued interest, United States
bonds securing circulation to be retired.

PURCHASE OF UNITED STATES BONDS BY FEDERAL
RESERYE BANKS.

ijAct Dec. 23, 316. The Treasurer shall, at the end o f each quarterly
38 ’stat0.’ l /, period, furnish the Federal Eeserve Board with a list o f
268,%
such applications, and the Federal Reserve Board may,
in its discretion, require the Federal reserve banks to pur
chase such bonds from the banks whose applications have

OBTAINING AND ISSUING CIRCULATING NOTES.

been filed with the Treasurer at least ten days before the
end o f any quarterly period at which the Federal Reserve
Board may direct the purchase to be made: Provided,
That Federal reserve banks shall not be permitted to pur
chase an amount to exceed $25,000,000 o f such bonds in
any one year, and which amount shall include bonds ac
quired under section four o f this act by the Federal
reserve bank.
Provided further, That the Federal Reserve Board
shall allot to each Federal reserve bank such proportion
o f such bonds as the capital and surplus o f such bank
shall bear to the aggregate capital and surplus o f all the
Federal reserve banks.
Upon notice from the Treasurer o f the amount o f bonds
so sold fo r its account, each member bank shall duly
assign and transfer, in writing, such bonds to the Federal
reserve bank purchasing the same, and such Federal re
serve bank shall, thereupon, deposit lawful money with
the Treasurer o f the United States for the purchase price
o f such bonds, and the Treasurer shall pay to the member
banks selling such bonds any balance due after deducting
a sufficient sum to redeem its outstanding notes secured
by such bonds, which notes shall be canceled and perma
nently retired when redeemed.
ISSUE OF CIRCULATING NOTES TO FEDERAL RESERVE
BANKS ON SECURITY OF UNITED STATES BONDS;
CIRCULATING NOTES SO ISSUED OBLIGATIONS OF
FEDERAL RESERVE BANK.

317. The Federal reserve banks purchasing such bonds Act Dec.
shall be permitted to take out an amount o f circulating 3813,stat.’
notes equal to the par value o f such bonds.
269*
U pon the deposit with the Treasurer o f the United
States o f bonds so purchased, or any bonds with the cir
culating privilege acquired under section four o f this act,
any Federal reserve bank making such deposit in the
manner provided by existing law, shall be entitled to
receive from the Comptroller o f the Currency circulating
notes in blank, registered and countersigned as provided
by law, equal in amount to the par value o f the bonds so
deposited. Such notes shall be the obligations o f the
Federal reserve bank procuring the same, and shall be in
form prescribed by the Secretary o f the Treasury, and to
the same tenor and effect as national bank notes now pro
vided by law. They shall be issued and redeemed under
the same terms and conditions as national bank notes,
except that they shall not be limited to the amount o f the
capital stock o f the Federal reserve bank issuing them.

23,

ISSUE OF TREASURY GOLD NOTES OF THE UNITED
STATES IN EXCHANGE FOR CERTAIN UNITED STATES
BONDS.

318. Upon application o f any Federal reserve bank, ap- Act Dec. 23,
proved by the Federal Reserve Board, the Secretary o f 3813,stat.’ ^
the Treasury may issue, in exchange for United States269-

OBTAINING AND ISSUING CIRCULATING NOTES.

two per centum gold bonds bearing the circulation privi
lege, but against which no circulation is outstanding, oneyear gold notes o f the United States without the circula
tion privilege, to an amount not to exceed one-half o f
the two per centum bonds so tendered for exchange, and
thirty-year three per centum gold bonds without the cir
culation privilege fo r the remainder o f the two per cen
tum bonds so tendered: Provided, That at the time o f
such exchange the Federal reserve bank obtaining such
one-year gold notes shall enter into an obligation with
the Secretary o f the Treasury binding itself to purchase
from the United States for gold at the maturity o f such
one-year notes, an amount equal to those delivered in ex
change for such bonds, if so requested by the Secretary,
and at each maturity o f one-year notes so purchased by
such Federal reserve bank, to purchase from the United
States such an amount o f one-year notes as the Secretary
may tender to such bank, not to exceed the amount issued
to such bank in the first instance, in exchange fo r the
two per centum United States gold bonds; said obliga
tion to purchase at maturity such notes shall continue
in force for a period not to exceed thirty years.
.. For the purpose o f making the exchange herein pro
vided for, the Secretary o f the Treasury is authorized
to issue at par Treasury notes in coupon or registered
form as he may prescribe in denominations o f one hun
dred dollars, or any multiple thereof, bearing interest
at the rate o f three per * centum per annunj, payable
quarterly, such Treasury notes to be payable riot more
than one year from the date o f their issue in gold ooiri pf
the present standard value, and to be exempt as to prin
cipal and interest from the payment o f all taxes and
duties o f the United States except as provided by this
act, as well as from taxes in any form by or under State,
municipal, or local authorities. A nd fo r the same pur
pose, the Secretary is authorized and empowered to issue
United States gold bonds at par, bearing three per centum
interest payable thirty years from date o f issue, such
honds to oe o f the same general tenor and effect and to be
issued under the same general terms and conditions as
the United States three per centum bonds without the
circulation privilege now issued and outstanding.
Upon application o f any Federal reserve batik, ap
proved by the Federal Reserve Board, the Secretary may
issue at par such three per centum bonds in exchange fo r
the. one-year gold notes herein provided for.
3 COMPTROLLER TO DETERMINE IF
COMMENCE BUSINESS.

ASSOCIATION CAN

’ '

319. Sec. 5168.— Whenever a ^certificate i£ 4raiis!nitted
to the Comptroller o f the Currency, as provid&f itf ;this
title, and the association transmitting the $am0 igrtifies
the Comptroller that at least fifty peE.cepitum o f its capi-

OBTAINING AND ISSUING CIRCULATING NOTES,

59,

tal stock has been duly paid in, and that such association
has complied with all the provisions o f this title required
to be complied with before an association shall be author
ized to commence the business o f banking, the Comp
troller shall examine into the condition o f such associa
tion, ascertain especially the amount o f money paid in on
account o f its capital, the name and place o f re§idei*c$ o f
each o f its directors, and the amount o f the capital stock
o f which each is the owner in good faith, and generally
whether such association has complied with all the pro
visions o f this title required to entitle it to engage in
the business o f banking; and shall cause to be made and
attested by the oaths o f a m ajority o f the directors, and
by the president or cashier o f the association, a statement
o f all the facts necessary to enable the Comptroller to
determine whether the association is lawfully entitled to
commence the business o f banking.
CERTIFICATE OF AUTHORITY TO COMMENCE BANKING
TO BE ISSUED.

320. Sec. 5169.— I f , upon a careful examination o f the Act June 3,
facts so reported, and o f any other facts which may c o m e g e ^ ^ is l 0^
to the knowledge o f the Comptroller, whether by means o f !<*t. l., 102,
a special commisison appointed by him for the purpose of
inquiring into the condition o f such association, or other
wise, it appears that such association is lawfully entitled
to commence the business o f banking, the Comptroller
shall give to such association a certificate, under his hand
and official seal, that such association has complied with
all the provisions required to be complied with before
commencing the business o f banking, and that such'asso
ciation is authorized to commence such business. But the
Comptroller may withhold from an association his cer
tificate authorizing the commencement o f business, when
ever he has reason to suppose that the shareholders have
formed the same fo r any other than the legitimate ob
jects contemplated by this title.
PUBLICATION OF CERTIFICATE.

321. Sec. 5170.— The association shall cause the certifi- Act June 3 ,
cate issued under the preceding section to be published in Jfc64’ ^ 10fy
some newspaper printed in the city or county where the stat. l., 104.
association is located, for at least sixty days next after
the issuing thereof; or, if no newspaper is published in
such city or county, then in the newspaper published
nearest thereto.
322. Sec. 5171.—
This section was originally section 21 of the act of June 3, 1864.
It was amended by the act of March 3, 1865, and was later in
corporated in the Revised Statutes as section 5171. This section

OBTAINING AND ISSUING CIRCULATING NOTES.
was repealed by the act of July 12, 1882, and the repealing section
was superseded by section 12 of the act of March 14, 1900, which
follows:

DELIVERY OF CIRCULATING NOTES. ACT OF MARCH 14,
1900. AS AMENDED OCTOBER 5, 1917.
Act Mar. 14,
323. Sec. 12.— That upon the deposit with the Treasurer
ll^i^stat slc‘, ^ e United States, by any national banking association,
m 7act 0c*‘ 5* an7 k°nds
the United States in the manner provided
be existing law, such association shall be entitled to re
ceive from the Comptroller o f the Currency circulating
notes in blank, registered and countersigned as provided
by law, equal in amount to the par value o f the bonds so
deposited; and any national banking associations now
having bonds on deposit for the security o f circulating
notes, and upon which an amount o f circulating notes has
been issued less than the par value o f the bonds, shall be
entitled, upon due application to the Comptroller o f the
Currency, to receive additional circulating notes in blank
to an amount which will increase the circulating notes
held by such association to the par value o f the bonds
deposited, such additional notes to be held and treated
in the. same way as circulating notes o f national banking
associations heretofore issued, and subject to all the pro
visions o f law affecting such notes: Provided, That
nothing herein contained shall be construed to m odify or
repeal the provision o f section fifty-one hundred and
sixty-seven o f the Revised Statutes o f the United States,
authorizing the Comptroller o f the Currency to require
additional deposits o f bonds or o f lawful money in case
the market value o f the bonds held to secure the circulat
ing notes shall fall below the par value o f the circulat
ing notes outstanding fo r which such bonds may be de
posited as security: And provided further, That the cir
culating notes furnished to national banking associations
under the provisions o f this act shall be o f the denomina
tions prescribed by la w : And provided further, That the
total amount o f such notes issued to any such associa
tion may equal at any time but shall not exceed the
amount at such time o f its capital stock actually paid i n :
And provided further, That under regulations to be
prescribed by the Secretary o f the Treasury any national
banking association may substitute the two per centum
bonds issued under the provisions o f this act for any o f
the bonds deposited with the Treasurer to secure circula
tion or to secure deposits o f public m oney; and so much
o f an act entitled “ A n act to enable national banking
associations to extend their corporate existence, and
fo r other purposes,” approved July twelfth, eighteen
hundred and eighty-two2 as prohibits any national bank
which makes any deposit o f lawful money in order to
withdraw its circulating notes from receiving any in
crease o f its circulation for the period o f six months
from the time it made such deposit o f lawful money for

OBTAINING AND ISSUING CIRCULATING NOTES.

the purpose aforesaid, is hereby repealed, and all other
acts or parts o f acts inconsistent with the provisions o f
this section are hereby repealed.
PRINTING DENOMINATIONS AND FORM OF THE CIRCU
LATING NOTES.

324. Sec. 5172.— That in order to furnish suitable notes lg^ t June0|»
for circulation, the Comptroller o f the Currency shall, sec. ’ 2 2 ; li
under the direction o f the Secretary o f the Treasury, stActLXiar.5,3,
cause plates and dies to be engraved, in the best m anner1919*
to guard against counterfeiting and fraudulent altera
tions, and shall have printed therefrom and numbered
such quantity o f circulating notes in blank, or bearing
engraved signatures o f officers as herein provided, of the
denominations o f $1, $2, $5, $10, $20, $50, $100, $500, and
$1,000, as may be required to supply the associations en
titled to receive the same. Such notes shall express upon
their face that they are secured by United States bonds
deposited with the Treasurer o f the United States, by the
written or engraved signatures o f the Treasurer and R eg
ister, and by the imprint o f the seal o f the Treasury; and
shall also express upon their face the promise o f the as
sociation receiving the same to pay on demand, attested
by the written or engraved signatures of the president or
vice president and cashier; and shall bear such devices
and such other statements and shall be in such form as the
Secretary o f the Treasury shall, by regulation, direct.
CHARTER NUMBER TO BE PRINTED ON NOTES.
JUNE 20, 1874.

ACT

325. Sec. 5.— That the Comptroller o f the Currency lgAct Jcune32o,
shall, under such rules and regulations as the Secretary sec. r>: is stat!
o f the Treasury may prescribe, cause the charter numbers L-» 124o f the association to be printed upon all national-bank
notes which may be hereafter issued by him.
N ote.— Other sections of this act will be found in note under
paragraphs 401 and 402, post.

DISTINCTIVE PAPER FOR PRINTING NOTES. ACT MARCH
3, 1875.

326. Sec. 1.— * * * That the national-bank notes 18^ t ^ ari 3o
shall be printed under the direction o f the Secretary o f sec. i ; 18 stat’
the Treasury, and upon the distinctive or special paper §J'y c3mi; bii?.n
which has been, or may hereafter be, adopted by him for
printing United States notes.
PLATES AND DIES TO BE UNDER THE CONTROL OF THE
COMPTROLLER. EXPENSES OF CURRENCY BUREAU
TO BE PAID OUT OF PROCEEDS OF TAXES, OR DUTIES,
ASSESSED AND COLLECTED ON THE CIRCULATION OF
NATIONAL BANKING ASSOCIATIONS.

327. Sec. 5173.— The plates and special dies to be pro- lg£ct June10^
cured by the Comptroller o f the Currency for the print- sec. * 4 1 ; 1£
ing o f such circulating notes shall remain under his con- stat L*’ m *

02)

OBTAINING AND ISSUING CIRCULATING NOTES.

trol and direction, and the expanses necessarily incurred
in: executing rthe laWs^ respecting the procuring o f such
notes, and all other expenses o f the Bureau o f the Cur
rency, shall be paid out o f the proceeds o f the taxes or
dmfcteg &sSefe3ed[ftn& fctollfected on the cirtuM rott'of illti^nai
banking associations under this title.
Note.— See act ^unje'20, 1874, paragraph 414, post, and act July
12;, 1882,,paragraph 220, ante* requiring banks to pay cost of their
plates. Ojk April 30, 1914, at the request of the Comptroller of the
Currency, the .Secretary,of the Treasury designated the Director
of Bureau of Engraving and Printing as custodian of the dies,
roll’s, raind plates, eta, used for the printing of circulating notes of
the Federal reserve and national banks. -.

EXAMINATION OT PLATES AND DIES.

v 328. Sec. 5174 [as amended 1877],— The Comptroller o f
s^at!the Currency shall cause to be examined, each year, the
L Act ^Feb 27 P^tes, dies, bed pieces, and other material from which the
1877, c. 69; id n&tioiial-bank circulation is printed, in whole or in part,
stat. l., 252. an^ g j e ^ y g 0fgce annuaiiy a correct list of, the same.
Such material as shall have been used in the printing o f
the notes o f associations which are in liquidation, or have
closed business, shall be destroyed, under such regulations
as shall be prescribed by the Comptroller o f the Currency
and approved by the Secretary o f the Treasury. The ex
penses o f any such examination or destruction shall be
paid out o f any appropriation made by Congress fo r the
special examination o f national banks and bank-note
plates.
Act

Mar. 3,

sec73! ; i 7

LIMIT TO ISSUE OF NOTES UNDER FITE DOLLARS.
Act Oct.

191’7,

,329. Sec. 3. That from and after the passage o f this
A ct any, national banking association, upon compliance
with the provisions o f law applicable thereto, shall be en
titled to receive from the Comptroller o f the Currency,
or to issue or reissue, or place in circulation notes in
denominations o f $1, $2, $5, $10, $20, $50, and $100 in
such proportion as to each o f said denominations as the
bank may elect: Provided, however, That no bank shall
receive or have in circulation at any one time more than
$25,000 in notes o f the denominations o f $1 and $2.
N ote.— Section 5175, Revised Statutes, providing that not more
than one-sixth part of the notes furnished to any association
should be of a less denomination than $5 was repealed by section
2 of the act of October 5, 1917. Section 5172, Revised Statutes,
as amended March 3, 1919, authorizes the issuance of notes of the
denomination of $500 and $1,000.

330. Sec. 5176.—
Repealed by act July 12, 1882, which in turn was superseded by
act March 14, 1900. (See section 5171.)

331. Sec. 5177.—
Repealed by act January 14, 1875.

o b t a i & i n 'g

An d isstrnTG

circxtl At i i ^g

tes.

i& G liE & ftE AMOUNT OF CIRCULATING 'NOTES; NOT LIM
ITED. ACT JANUARY 14, 1875.

335}. Sec. S.— That section 5177 o f the Revised Statutes
o f the United States, lim iting the aggregate amount o f
circulating notes o f national banking associations, be and
is hereby, repealed; and each existing banking association
may increase its circulating notes in accordance ^vith exexis£ing law without respect to said aggregate lim it; and
new banking associations may be organized in accordr
ancef with existing law without respect to said aggregate
lim it; and the provisions o f law fo r the withdrawal and
redistribution o f national bank currency , among the sev
eral States and Territories are hereby repealed.

seel
stat. l *

333. Sec. 5178.—
Repealed by act January 14, 1875.

334. Sec. 5179.—
Repealed by act January 14, 1875.

335. Sec. 5180.—
Repealed by act January 14, 1875.

336. Sec. 5181.—
. Repealed by act January. 14* 1875,

FOR WHAT DEMANDS NATIONAL-BANK NOTES MAY BE
RECEIVED.

337. Sec. 5182 [as amended 1919].— A ny association re*19£,ct Jan* l3»
ceiving circulating notes under this title may, if its prom
ise to pay such notes on demand is expressed thereon at
tested by the written or engraved signatures o f the presi
dent or vice president and the cashier thereof in such
manner as to make them obligatory promissory notes p a y
able on demand at its place o f business, issue, and circu
late the same as money. Such written or engraved signa
tures o f the president or vice president and the cashier o f
such association may be attached to such ilotes either be
fore or after the receipt o f such notes by such association.
And such notes shall be received at par in all parts o f the
United States in payment o f taxes, excises, public lands,
and all other dues to the United States, except duties on
im ports; and also for all salaries and other debts and de
mands owTing by the United States to individuals, cor
porations, and associations within the United States, ex
cept interest on the public debt, and in redemption o f the
national currency.
ISSUE OF POST NOTES, ETC., PROHIBITED.

338. Sec. 5183 [as amended 1875].— No national banking
c.uneio6
association shall issue post notes or any other notes to|et£t l 3^ 1^
circulate as money than such as are authorized by the Act #eb. is,
provisions o f this Title.
stat.'S^&b.18

OBTAINING AND ISSUING CIRCULATING NOTES.

DESTROYING AND REPLACING WORN-OUT AND MUTI
LATED NOTES.
1864* cUnio6
sec. ’ 2 4 ; 13
stat. L.f 106.

®ec* 5*84.— ^ shall ke
duty
^he Comptroller
o f the Currency to receive worn-out or mutilated circujating notes issued by any banking association, and
also, on due p roof o f the destruction o f any such circulat
ing notes, to deliver in place thereof to the association
other blank circulating notes to an equal amount. Such
worn-out or mutilated notes, after a memorandum has
been entered in the proper books, in accordance with such
regulations as may be? established by the Comptroller, as
well as all circulating notes which shall have been paid or
surrendered to be canceled [shall be burned to ashes] in
presence o f four persons, one to be appointed by the Sec
retary o f the Treasury, one by the Comptroller o f the
Currency, one by the Treasurer o f the United States, and
one by the association, under such regulations as the Sec
retary o f the Treasury may prescribe. A certificate o f
[such burning'] signed by the parties so appointed, shall
be made in the books o f the Comptroller, and a duplicate
thereof forwarded to the association whose notes are thus
canceled.
N ote.— Act June 23, 1874, provides for maceration in place of
burning.

MACERATION OF NATIONAL-BANK NOTES.

23, 1874.

ACT JUNE

5 ain ®^®‘ * * * F or the maceration o f national bank
propriation a ct notes * * * ; and that all such issues hereafter dei W
I |stroyed may be destroyed by maceration instead o f burn18 stat. l , 206. jng t0 ashes, as now provided by la w ; and that so much
o f sections twenty-four and forty-three o f the national
currency act as requires national bank notes to be burned
to ashes is hereby repealed; that the pulp from such mac
erated issue shall be disposed o f only under the direction
o f the Secretary o f the Treasury.

su n d rv iciv

ORGANIZATION
NOTES.

ASSOCIATIONS

ISSUE

GOLD

1870* JcUly282!
®^* ®ec* 5185 [as amended 1875].— Associations may be
LC,25i 16 Stat‘ org anized
manner prescribed by this Title for the
Act Jan. 19, purpose o f issuing notes payable in g o ld ; and upon the
i ! 75,stat. L.! deposit o f any United States bonds bearing interest pay302.
able in gold with the Treasurer o f the United States, in
the manner prescribed for other associations, it shall be
lawful for the Comptroller o f the Currency to issue to
the association making the deposit circulating notes o f
different denominations, but none o f them less than
five dollars, and not exceeding in amount eighty per
centum o f the par value o f the bonds deposited, which
shall express the promise o f the association to pay them,
upon presentation at the office at which they are issued, in
gold coin o f the United States, and shall be so redeemable.

OBTAINING AND ISSUING CIRCULATING NOTES.

(But no such association shall have a circulation of more
than one million of dollars.)
N ote.— The limitation of circulation of banking associations is
suing notes payable in gold was repealed by the act of January
19, 1875.

RESERVE REQUIREMENTS FOR GOLD BANKS.

342. Sec. 5186.— Every association organized under th e18^
preceding section shall at all times keep on hand not lessees/
than twenty-five per centum o f its outstanding circula- 253/
tion, in gold or silver coin o f the United States; and shall
receive at par in the payment o f debts the gold notes o f
every other such association which at the time o f such
payment is redeeming its circulating notes in gold coin
o f the United States, and shall be subject to all the pro
visions o f this T itle: Provided, That, in applying the
same to associations organized for issuing gold notes, the
terms “ lawful money ” and “ lawful money o f the United
States ” shall be construed to mean gold or silver coin o f
the United States; and the circulation o f such association
shall not be within the limitation o f circulation men
tioned in this Title.

CONVERSION OF NATIONAL GOLD BANKS INTO CUR
RENCY BANKS. ACT FEBRUARY 14, 1880.
343. That any national gold bank organized under the Act Feb. 14.
provisions o f the laws o f the United States, may, in the gf®*; £ 2g6; 21
manner and subject to the provisions prescribed by sec
tion fifty-one hundred and fifty-four o f the Revised Stat
utes o f the United States, for the conversion o f banks in
corporated under the laws o f any State, cease to be a gold
bank, and become such an association as is authorized by
section fifty-one hundred and thirty-three, for carrying
on the business o f banking, and shall have the same pow
ers and privileges, and shall be subject to the same duties,
responsibilities, and rules, in all respects, as are by law
prescribed for such associations: Provided, That all
certificates o f organization which shall be issued under
this act shall bear the date o f the original organization o f
each bank respectively as a gold bank.

PENALTY FOR ISSUING CIRCULATING NOTES TO UNAU
THORIZED ASSOCIATIONS.

344. Sec. 5187.— No officer acting under the provisions Act June 3,
o f this title shall countersign or deliver to any associa27 ; 10ia
tion, or to any other company or person, any circulating stat. L-» 107.
notes contemplated by this title, except in accordance
with the true intent and meaning o f its provisions.
Every officer who violates this section shall be deemed
guilty o f a high misdemeanor, and shall be fined not more
than double the amount so countersigned and delivered,
and imprisoned not less than one year and not more than
fifteen years.
164312°— 2 0 ------5

OBTAINING AND ISSUING CIRCULATING NOTES.

PENALTY FOR IMITATING BANK CIRCULATION.
SAME FOR ADVERTISING PURPOSES.

USE OF

.Act Mar. 4 , 345. Sec. 5188.— Superseded by section 175 o f the act
sec09,1 75 ; 3 3d o f March 4, 1909.
s t ThisL'section
S e c t i o n 175. It shall not be lawful to design, engrave,
originally en print, or in any manner make or execute, or to utter.
acted Feb. 5, f
t j •i_ j.
•
i j
i
•
1867.
issue, distribute, circulate, or use any business or pro
fessional card, notice, placard, circular, hand-bill, or ad
vertisement in the likeness or similitude o f any circulat
ing note or other obligation or security o f any banking
association organized or acting under the laws o f the
United States which has been or may be issued under
any act o f Congress, or to write, print, or otherwise
impress upon any such note, obligation, or security, any
business or professional card, notice or advertisement, or
any notice or advertisement o f any matter or thing what
ever. W hoever shall violate any provision o f this sec
tion shall be fined not more than one hundred dollars,
or imprisoned not more than six months, or both.
PENALTY FOR MUTILATING CIRCULATION.

lono1 Mar,*9 i’ 346. Sec. 5189.— Superseded by section 176 o f the act
176 ; 35 o f March 4, 1909.
St Thi^seitfon S ection 176. W hoever shall mutilate, cut, deface, disenacte0dri^June ®Sure? or Perf ° ra^ with holes, or unite or cement to3, 1864.
gether, or do any other thing to any bank bill, draft,
note, or other evidence o f debt, issued by any national
banking association, or shall cause or procure the same
to be done, with intent to render such bank oill, draft,
note, or other evidence o f debt unfit to be reissued by
said association, shall be fined not more than one hundred
dollars, or imprisoned not more than six months, or both.

sec!

REGULATION OF THE BANKING BUSINESS.

CHAPTER IV.
REGULATION OF THE BANKING BUSINESS.
400. 5190. Place of business.
401. Central reserve cities.— Explana
tory note.
402. Reserve cities.— Explanatory note.
403. Act Dec. 23, 1913, as amended.
Demand and time depos
its defined.
404. Act Dec. 23, 1913, as amended.
R ese rv e requirements—
when effective.
405. Act Dec. 23, 1913, as amended.
Reserve requirements for
banks not in reserve cities.
406. Act Pec. 23, 1913, as amended.
Reserve requirements for
banks in reserve cities.
407. Act Dec. 23, 1913, as amended.
Reserve requirements for
banks in central reserve
cities
408. Act Dec. 23, 1913, as amended.
Member bank forbidden to
keep on deposit with non
member bank a sum in
excess of 10 per cent of its
own capital and surplus
or to secure discounts for
nonmember bank.
409. Act Dec. 23, 1913, as amended.
Withdrawal of reserve by
member bank.
410. Act Dec. 23, 1913, as amended.
Reserve
requirements—
how estimated.
411. Act Dec. 23, 1913, as amended.
Reserve requirements for
national banks located in
Alaska or outside the con
tinental United States.
412. Act December 23, 1913. Redemp
tion fund not counted as
reserve.
413. No reserve required to be held
against United States de
posits.
414. Act June 20, 1874. Provisions for
r edeemi ng circulation.
Five per cent redemption
fund.
415. Act March 3, 1875. Clerical force
for redemption of circu
lating notes.
416. Act July 14, 1890. Disposition of
redemption account.
417. Act July 28, 1892. Redemption of
lost or stolen notes and of
notes not properly signed.

418. 5193. Repealed by act March 14,
1900.
419. 5194. Superseded by repeal of sec
tion 5193.
420. 5195. Place for redemption of cir
culating notes to be desig
nated.
421. 5196. National banks to take notes
of other national banks*
at par.
422. 5197. Limitation upon rate of in
terest w h i c h may be
taken.
423. 5198. Penalty for taking unlawful
interest. Jurisdiction of
. suits by or against na
tional banks.
424. 5199. Dividends.
425. 5200. Li mi t a t i o n of liabilities
which may be incurred by
any one person, company,
etc.
426. 5201. Associations must not loan
on or purchase their own
stock.
427. 5202. Restriction on bank’s in
debtedness.
428. 5203. Restriction upon use of cir
culating notes.
429. 5204. Prohibition u p o n w i t hdrawal of capital. Une a r n e d dividends pro
hibited.
430. 5205. Assessment for failure to
pay up capital stock or for
impairment of capital.
431. 5206. Prohibition agaii^t uncur
rent notes.
432. 5207. United States notes not to
be held as collateral.
433. Act July 12, 1882. Issue of gold
certificates.
434. 5208. Penalty for falsely certify
ing checks.
435. Act July 12, 1882. Punishment
fo r
falsely certifying
checks.
436. 5209. Penalty for embezzlement,
abstraction, willful mis
application, false entries,
etc.
437. Act January 26, 1907. National
banks not permitted to
make contributions in con
nection with election to
political office.
69

REGULATION OF THE BANKING BUSINESS.

438a. Member bank can not make loan
or grant a gratuity to any
national bank examiner.
438b. National bank examiner can not
perform any services for
* compensation f o r a n y
bank or officer. Exam
iner can not disclose the
names of borrowers or
collateral without first ob
taining written consent of
Comptroller.
438c. Penalty for officer, director, or
employee of member bank
who receives any commis
sion or gift in connection
with any loan.
438d. Purchase of securities or prop
erty from one of its di
rectors, or sales to a di
rector by a member bank.
438e. Rate of interest paid directors,
officers, or employees not
to exceed that paid to
other depositors.

438f. Penalty for violation of any of
the provisions of section
22 of the Federal reserve
act.
439. 5210. List of shareholders.
440. 5211. Reports to Comptroller of
Currency.
441. Act February 26, 1881. Verifica
tion of reports.
442. 5212. Report of dividends.
443. 5213. Penalty for failure to make
reports.
444-445. 5214 and act March 14, 1900.
Taxes on circulation pay
able to the United States.
446. 5215. Half-yearly return of circu
lation.
447. 5216. Penalty for failure to make
return.
448. 5217. Enforcing tax on circula
tion.
449. 5218. Refunding excess tax.
450. Act March 1, 1879. No tax to be
paid by insolvent banks.
451. 5219. State taxation.

PLACE OF BUSINESS.

400.
Sec. 5190.— The usual business of each nat
cuni 06 banking association shall be transacted at an office or
sec. &; 13 stat! banking house located in the place specified in its organil „ ioi.
zation certificate.
1864*

N ote.— See act May 1, 1886, paragraph 211, ante, in reference
to change in place of business. For authority of national bank to
establish branches in foreign countries or dependencies of the
United States, see section 25, Federal reserve act.

CENTRAL RESERYE CITIES—EXPLANATORY NOTE.

401.
[E a ch association organized in any o f the ci
^ planatory named in section 5191, United States Revised Statutes,
was authorized by section 5195, United States Revised
Statutes, to select, subject to the approval o f the Com p
troller o f the Currency, an association in the city o f
New Y ork where it might keep one-half o f its lawful
money reserve. This section originally provided for the
redemption o f circulating notes at such selected bank in
that city, but all provisions other than that authorizing
the keeping o f a portion o f the reserve with such bank
were repealed by the act o f June 20, 1874. Since the
passage o f the act o f June 21, 1917, however, a member
bank can not count any balances as reserve except those
due from the Federal reserve bank o f its district.
Under the provisions o f section 2 o f the act o f March
3, 1887, whenever three-fourths in number o f the na
tional banks located in any city o f the United States hav
ing a population o f 200,000 shall have made application
to the Comptroller o f the Currency, asking that such

REGULATION OF THE BANKING BUSINESS.

city be made a central reserve city, like the city o f New
York, the Comptroller o f the Currency, with the ap
proval o f the Secretary o f the Treasury, was authorized
to grant such request, and under the provisions o f this
section the cities o f St. Louis and Chicago were desig
nated as additional central reserve cities on March 18
and May 2, 1887, respectively.
The Federal reserve act confers authority upon the
Federal Reserve Board to add to the number o f cities
classified as central reserve cities, to reclassify existing
reserve and central reserve cities, or to terminate their
designation as such.
(See section 11, paragraph E,
Federal reserve a c t .)]
N ote .— Section 5195 and section 2 of the act of March 3, 1887,
heretofore referred to, are as follows:
“ S ec . 5195. Each association organized in any of the cities
named in section fifty-one hundred and ninety-one shall select,
subject to the approval of the Comptroller of the Currency, an
association in the city of New York, at which it will redeem its
circulating notes at par, and may keep one-half of its lawful
money reserve in cash deposits in the city of New York. But the
foregoing provision shall not apply to associations organized and
located in the city of San Francisco for the purpose of issuing
notes payable in gold. Each association not organized within the
cities named shall select, subject to the approval of the Comp
troller, an association in either of the cities named, at which it
will redeem its circulating notes at par. The Comptroller shall
give public notice of the names of the associations selected, at
which redemptions are to be made by the respective associations,
and of any change that may be made of the association at which
the notes of any association are redeemed. Whenever any asso
ciation fails either to make the selection or to redeem its notes
as aforesaid, the Comptroller of the Currency may, upon receiving
satisfactory evidence thereof, appoint a receiver, in the manner
provided for in section fifty-two. hundred and thirty-four, to wind
up its affairs. But this section shall not relieve any association
from its liability to redeem its circulating notes at its own counter,
at par, in lawful money on demand.”
Section 3 of the act of June 20, 1874, amending section 5195,
Revised Statutes, provides—
“ That so much of section thirty-two (section 5195, Revised
Statutes) of said national-bank act requiring or permitting the
redemption of its circulating notes elsewhere than at its own
counter, except as provided for in this section, is hereby repealed.”
Section 2, act of March 3, 1887, provides:
“ That whenever three-fourths in number of the national banks
located in any city of the United States having a population of
two hundred thousand people shall make application to the Comp
troller of the Currency, in writing, asking that such city may be a
central reserve city, like the city of New York, in which one-half
of the lawful-money reserve of the national banks located in other
reserve cities may be deposited, as provided in section fifty-one
hundred and ninety-five of the Revised Statutes, the Comptroller
shall have authority, with the approval of the Secretary of the
Treasury, to grant such request, and every bank located in such
city shall at all times thereafter have on hand, in lawful money
of the United States, twenty-five per centum of its deposits, as
provided in section fifty-one hundred and ninety-one of the
Revised Statutes.*’

REGULATION OF THE BANKING BUSINESS.

RESERYE CITIES— EXPLANATORY NOTE.
notefplanatory

402. [Section 5191, United States Revised Statutes,
names certain cities in which national banks located
therein were required to have on hand in lawful money
an amount equal to at least twenty-five per cent o f the
aggregate amount o f their deposits, and provided that
every other association should have on hand in lawful
money an amount equal to fifteen per cent o f the aggre
gate amount o f its deposits. Section 5191 further provided
that the Comptroller o f the Currency, with the concur
rence o f the Secretary o f the Treasury, might appoint a
receiver for any association for failure to make good any
deficiency in its reserve within thirty days after the date
when the Comptroller o f the Currency has notified the
association to make good the deficiency. Section 5192,
United States Revised Statutes, provided that threefifths o f the reserve o f fifteen per cent required to be kept
by country banks might consist o f balances due to such
associations from associations approved by the Com p
troller o f the Currency in one o f the reserve cities men
tioned in said section. Since the passage o f the act o f
June 21,1917, however, a member bank can not count any
balances as reserve except those due from the Federal
Reserve Bank o f its district.
The follow ing are the reserve cities designated in sec
tions 5191 and 5192:
Albany, Baltimore, Boston, Cincinnati, Chicago, Cleve
land, Detroit, Louisville, Milwaukee, New Orleans, New
Y ork, Philadelphia, Pittsburgh, St. Louis, San Fran
cisco, and Washington.
In addition to the cities listed in the preceding para
graph, the city o f Leavenworth, Kansas, was named in
sections 5191 and 5192, but this designation was repealed
by special act o f date March 1, 1872. The cities o f
Charleston and Richmond were also named as reserve
cities in section 5192, but were not included in the list o f
reserve cities enumerated in section 5191. The Com p
troller o f the Currency, therefore, did not approve any
banks in those cities as reserve agents. On A pril 27,
1914, however, three-fourths o f the banks in Richmond
having requested that that city be designated as a reserve
city, it was so designated under authority o f the act o f
March 3, 1887.
The Comptroller o f the Currency was authorized under
the act o f March 3, 1887, to designate additional reserve
cities whenever three-fourths in number o f national
banks located in any city o f the United States having a
population o f 50,000 requested that the city in question
be so designated. This limit o f population was reduced
to 25,000 by the act o f March 3,1903.
The city o f New Y ork listed as a reserve city in sections
5191 and 5192 was designated as a central reserve city by
section 5195, and the cities o f St. Louis and Chicago

REGULATION OF THE BANKING BUSINESS.

named as reserve cities under sections 5191 and 5192 were
designated, on March 18 and May 2,1887, respectively, as
central reserve cities by the Comptroller o f the Currency
with the concurrence o f the Secretary o f the Treasury,
under the authority granted by the act o f March 3, 1887.
In conform ity with the provisions o f the acts o f March
3, 1887, and March 3, 1903, the follow ing cities have been
designated by the Comptroller as additional reserve
cities: Atlanta, Brooklyn, Cedar Rapids, Columbus, D al
las, Denver, Des Moines, Dubuque, Fort W orth, Galves
ton, Houston, Indianapolis, Kansas City (K ans.), Kansas
City (M o.), Lincoln, Los Angeles, Minneapolis, Musko
gee, Oklahoma City, Omaha, Portland, Pueblo, Rich
mond, Salt Lake City, San Antonio, Savannah, Seattle,
Sioux City, South Omaha, Spokane, St. Joseph, St. Paul,
Tacoma, Topeka, W aco, Wichita. On June 26, 1915,
South Omaha was consolidated with Omaha.
The Federal reserve act confers authority upon the
Federal Reserve Board to add to the number o f cities
classified as reserve cities, to reclassify existing reserve
and central reserve cities, or to terminate their designa
tion as such. (See sec. 11, paragraph E, Federal reserve
act.)
A cting under the authority o f this section the Federal
Reserve Board has designated the follow ing additional
reserve cities: Birmingham, A la.; Charleston, S. C .:
Chattanooga and Nashville, T enn.; Tulsa, Okla.; and
Ogden, U tah.]
N ote .— Sections 5191 and 5192 have not been repealed, but the
provisions with respect to specific reserve requirements for banks
in the continental United States are superseded by section 19 of
the Federal reserve act as amended June 21, 1917, these sections,
however, remaining in full force and effect for national banks
located in Alaska or in a dependency or insular possession or any
part of the United States outside the continental United States,
provided said national banks remain nonmember banks. The sec
tions in question are as follows, the italicized portion being super
seded, as far as banks in the continental United States are con
cerned, by later legislation, the remaining portions of these sec
tions being still in force.
S ec . 5191. Every national banking association in either of the
following cities: Albany, Baltimore, Boston, Cincinnati, Chicago,
Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York,
Philadelphia, Pittsburgh, St. Louis, San Francisco, and Washing
ton,, shall at all times have on hand, in lawful money of the
United States, an amount equal to at least twenty-five per centum
of the aggregate amount of its notes in circulation and its de
posits; and every other association shall at all times have on hand>
in lawful money of the United States, an amount equal to at least
fifteen per centum of the aggregate amount of its notes in circular
tion, and of its deposits.
Whenever the lawful money of any association in any of the
cities named shall be below the amount of twenty-five per centum
of its circulation and deposits and whenever the lawful money
of any other association shall be (below fifteen per centum of its
circulation and deposits), such associations shall not increase its
liabilities by making any new loans or discounts otherwise than
by dicounting or purchasing bills of exchange payable at sight,
nor make any dividends of its profits until the required propor-

REGULATION OF THE BANKING BUSINESS.
tion, between the aggregate amount of its outstanding notes of
circulation and deposits and its lawful money of the United
States, has been restored. And the Comptroller of the Currency
may notify any association, whose lawful money reserve shall
be below the amount above required to be kept on hand, to make
good such reserve; and if such association shall fail for thirty
days thereafter so to make good its reserve of lawful money, the
Comptroller may, with the concurrence of the Secretary of the
Treasury, appoint a receiver to wind up the business of the asso
ciation, as provided in section fifty-two hundred and thirty-four.
S ec. 5192. Three-fifths of the reserve of fifteen per centum required by the preceding section to be kept, may consist of balances
due to an association, available for the redemption of its circulat
ing notes, from associations approved by the Comptroller of the
Currency, organized under the act of June three, eighteen hun
dred and sixty-four, or under this title, and doing business in
the cities of Albany, Baltimore, Boston, Charleston, Chicago, Cin
cinnati, Cleveland, Detroit, Louisville, Milwaukee, New Orleans,
New York, Philadelphia, Pittsburgh, Richmond, St. Louis, San
Francisco, and Washington. Clearing-house certificates, repre
senting specie or lawrful money specially deposited for the purpose,
of any clearing-house association, shall also be deemed to be law
ful money in the possession of any association belonging to such
clearing house, holding and owning such certificate, within the
preceding section.
The provisions in section 5191 requiring reserve to be held
against circulation were repealed by section 2, act of June 20,
1874, which provides “ that section 81 of the National Bank act
{sections' 5191 and 5192 R. S.) be so amended that the several
associations therein provided for shall not hereafter be required
to keep on hand any amount of money whatever, by reason of the
amount of their respective circulations; but the moneys required
by said section to be kept at all times on hand shall be determined
by the amount of deposits in all respects, as provided for in the
said section.
Additional reserve cities (act of March 8, 1908, amending act of
March 8, 1887).— Sec. 1. That whenever three-fourths in num
ber of the national banks located in any city of the United States
having a population of twenty-five thousand people shall make
application to the Comptroller of the Currency, in writing, asking
that the name of the city in which such banks are located shall
be added to the cities named in sections fifty-one hundred and
ninety-one and fifty-one hundred and ninety-two of the Revised
Statutes, the Comptroller shall have authority to grant such re
quest, and every bank located in such city shall at all times there
after have on hand, in lawful money of the United States, an
amount equal to at least twenty-five per centum of its deposits,
as provided in sections fifty-one hundred and ninety-one and fiftyone hundred and ninety-five of the Revised Statutes•
BAN K RESERVES.

DEMAND AND TIME DEPOSITS DEFINED.

403. Sec. 19.— Demand deposits within the meaning o f
this act shall comprise all deposits payable within thirty
27ict June 2i" ^ay s? anc^
deposits shall comprise all deposits pay1917, sec? 10. ’ able after thirty days, all savings accounts and certificates
o f deposit which are subject to not less than thirty days’
notice before payment, and all postal savings deposits.
Act Dec.

23,

38 13’staetc;

REGULATION OF THE BANKING BUSINESS.

RESERVE REQUIREMENTS.

404. Every bank, banking association, or trust com- Act Dec. 23,
pany which is or which becomes a member of any Federal 3813’stSatc‘ XL.i
reserve bank shall establish and maintain reserve bal- 27<^ct ^ ”
ances with its Federal reserve bank as follow s:
1917,1 sec?eio. *
RESERVE REQUIREMENTS FOR BANKS NOT IN RESERVE
CITIES.

405. (a) I f not in a reserve or central reserve city, as Act Dec. 23,
now or hereafter defined, it shall hold and maintain with Jl^tat.*
the Federal reserve bank of its district an actual net bal- 2™ct June 21
ance equal to not less than seven per centum of the 1917, sec. 10. ’
aggregate amount of its demand deposits and three per
centum of its time deposits.
RESERVE
CITIES.

REQUIREMENTS FOR

BANKS IN RESERVE

406. (b) I f in a reserve city, as now or hereafter de- Act DeCi 23,
fined, it shall hold and maintain with the Federal reserve 3g13,s^^* 19 ;
bank of its district an actual net balance equal to not less 270.
than ten per centum of the aggregate amount of its de- 19f^ 38gsti.t!
mand deposits and three per centum of its time deposits:
2i
Provided, however, That if located in the outlying d is -1917, sec. 10. ’
tricts of a reserve city or in territory added to such a city
Sept* 26,
by the extension of its corporate charter, it may, upon
the affirmative vote of five members of the Federal Re
serve Board, hold, and maintain the reserve balances
specified in paragraph (a) hereof.
RESERVE REQUIREMENTS FOR BANKS IN CENTRAL RESERVE CITIES.

407. ( c ) I f in a central reserve city, as now or here- 19^|t Dec. 2^3,
after defined, it shall hold and maintain with the Federal 38 ’stat.’ l.;
reserve bank of its district an actual net balance equal t o 27i ‘ct Aug. 15,
not less than thirteen per centum of the aggregate amount J91! ^ 38 ®tatof its demand deposits and three per centum of its time "’Act June 21,
deposits: Provided, however, That if located in the out- 19Act ¥ept?26f
lying districts of a central reserve city or in territory 191S*
added to such city by the extension of its corporate char
ter, it may, upon the affirmative vote of five members of
the Federal Reserve Board, hold and maintain the reserve
balances specified in paragraphs (a) or ( 6 ) thereof.
MEMBER BANK FORBIDDEN TO KEEP ON DEPOSIT WITH
NONMEMBER BANK A SUM IN EXCESS OF TEN PER
CENT OF ITS OWN CAPITAL AND SURPLUS OR TO
SECURE DISCOUNTS FOR NONMEMBER BANK.

408. No member bank shall keep on deposit with any 19^«t ^ec. 293:
State bank or trust company which is not a member bank 38 ’stat* l.’,
a sum in excess of ten per centum of its own paid-up 271#

REGULATION OF THE BANKING BUSINESS.

1914 ! 38 gstat! capita.l and surplus.
No member bank shall act as the
l., 69i*.
*medium or agent o f a nonmember bank in applying for or
1917,1sec.1110.1’ receiving discounts from a Federal reserve bank under the
provisions o f this act, except by permission o f the Fed
eral Eeserve Board.

WITHDRAWAL OF RESERVE BY MEMBER BANK.
19131 sec?* i 93;
^ e required balance carried by a member bank
38 1’stat.’ L.lwith a Federal reserve bank may, under the regulations
27Ict Aug. 15, and subject to such penalties as may be prescribed by the
l 916^i38 stat Federal Eeserve Board, be checked against and withAct June 21, drawn by such member bank for the purpose o f meeting
1917, sec. io. existing liabilities: Provided, however, That no bank
shall at any time make new loans or shall pay any divi
dends unless and until the total balance required by law
is fully restored.

RESERVE REQUIREMENTS— HOW ESTIMATED.
4 1 0 . In estimating the balances required by this act
stat- L >the net difference o f amounts due to and from other banks
Act Aug. 15, shall be taken as the basis for ascertaining the deposits
l 9,1! ^ 88 stat'against which required balances with Federal reserve
1
Q^ct June 2 i, banks shall be determined.
1917, sec. 10.

1913 * sec?' i 93;

RESERYE REQUIREMENTS FOR NATIONAL BANKS LO
CATED IN ALASKA OR OUTSIDE THE CONTINENTAL
UNITED STATES.
1913,* sec?* i 93;
411. National banks, or banks organized under local
p j stat- L-» laws, located in Alaska or in a dependency or insular posAct Aug. 15, session or any part o f the United States outside the conl 9,1! ^ 38 Stat‘ tinental United States may remain nonmember banks,
m ^ sec^ o21, an(^
event maintain reserves and comply with
all the conditions now provided by law regulating them;
or said banks may, with the consent o f the Eeserve Board,
become member banks o f any one o f the reserve districts,
and shall in that event take stock, maintain reserves, and
be subject to all the other provisions o f this act.

REDEMPTION FUND NOT COUNTED AS RESERYE.
1913 * secC*2 0 *
38 ’stat.* l .’, act

271*

®ec‘
muc^
sections two and three o f the
o f June twentieth, eighteen hundred and seventyfour, entitled “ A n act fixing the amount o f United States
notes, providing for a redistribution o f the national-bank
currency, and for other purposes,” as provides that the
fund deposited by any national banking association with
the Treasurer o f the United States for the redemption o f
its notes shall be counted as a part o f its lawful reserve as
provided in the act aforesaid, is hereby repealed. A nd
from and after the passage o f this act such fund o f five
per centum shall in no case be counted by any national
banking association as a part o f its lawful reserve.

REGULATION OF THE BANKING BUSINESS.

NO RESERVE REQUIRED TO BE HELD AGAINST UNITED
STATES DEPOSITS.

413. Sec. 7.— * * * That the provisions o f section 1QAct ^Apr.^24,
fifty-one hundred and ninety-one o f the Revised Statutes,
as amended by the Federal reserve act and the amend
ments thereof, with reference to the reserves required to
be kept by national banking associations and other mem
ber banks o f the Federal Reserve System, shall not apply
to deposits o f public moneys by the United States in des
ignated depositaries.
PROVISIONS FOR REDEEMING CIRCULATION. FITE PER
CENT REDEMPTION FUND. ACT JUNE 20, 1874.

414. Sec. 3.— That every association organized, or to be
Jcune343 ’
organized, under the provisions o f the said act, and o f sec. a ; is stat!
the several acts amendatory thereof, shall at all times
123*
keep and have on deposit in the Treasury o f the United
States, in lawful money o f the United States, a sum equal
to five per centum o f its circulation, to be held and used
for the redemption o f such circulation; [ which sum shall
be counted as a part of its laivful reserve, as provided, in
section tivo of this actf\ and when the circulating notes
o f any such associations, assorted or unassorted, shall be
presented for redemption, in sums o f one thousand dol
lars, or any multiple thereof, to the Treasurer o f the
United States, the same shall be redeemed in United
States notes. A ll notes so redeemed shall be charged
by the Treasurer o f the United States to the respec
tive associations issuing the same, and he shall notify
them severally, on the first day o f eacli month, or oftener,
at his discretion, o f the amount o f such redemptions; and
whenever such redemptions for any association shall
amount to the sum o f five hundred dollars, such associa
tion so notified shall forthwith deposit with the Treas
urer o f the United States a sum in United States notes
equal to the amount o f its circulating notes so redeemed.
And all notes o f national banks worn, defaced, mutilated,
or otherwise unfit for circulation shall, when received by
any assistant treasurer, or at any designated depository
o f the United States, be forwarded to the Treasurer
o f the United States for redemption as provided herein.
A nd when such redemptions have been so reimbursed, the
circulating notes so redeemed shall be forwarded to the
respective associations by which they were issued; but if
any o f such notes are worn, mutilated, defaced, or ren
dered otherwise unfit for use, they shall be forwarded to
the Comptroller o f the Currency and destroyed and re
placed as now provided by la w : Provided, That each o f
said associations shall reimburse to the Treasury the
charges for transportation, and the costs for assorting
such notes; and the associations hereafter organized shall

REGULATION OF THE BANKING BUSINESS.

also severally reimburse to the Treasury the cost o f en
graving such plates as shall be ordered by each associa
tion, respectively; and the amount assessed upon each
association shall be in proportion to the circulation re
deemed, and be charged to the fund on deposit with the
Treasurer: And provided further, That so much o f sec
tion thirty-two o f said national-bank act requiring or
permitting the redemption o f its circulating notes else
where than at its own counter except as provided for in
this section, is hereby repealed.
N ote.— Under section 4 of the act of June 20, 1874, chapter 343,
a national banking association, desiring to withdraw its circulat
ing notes and take up the bonds deposited with the United States
Treasurer as security therefor, may do so by depositing with the
Treasurer the required amount in lawful money, whether this
consists of coin or of legal-tender notes. The Treasury, while
privileged under sections 3 and 4 of that act to redeem such cir
culation in United States notes, has also the right to redeem the
same circulation in coin. (Opinion Attorney General, vol. 17,
121.)

Section 32 of national-bank act is section 5195, Revised Statutes.
The provision permitting the redemption fund to be counted as
part of the lawful reserve was repealed by section 20 of the
Federal reserve act.
Other sections of act of June 20, 1874,
Section 1 precedes Revised Statutes, 5133.
Section 2. See note under paragraph 402, ante.
Section 4 follows Revised Statutes, 5167.
Section 5 follows Revised Statutes, 5172.
Section 6 relates to United States notes only.
Sections 7-9 superseded by act of January 14, 1875, which
follows, Revised Statutes, 5177.

CLERICAL FORCE FOR REDEMPTION OF CIRCULATING
NOTES. ACT MARCH 3, 1875.
1875^ i i a stat’

cari7 into effect the provisions o f section three o f the act entitled “ A n act fixing the amount
c i vn Sappro- ° f United States notes, providing for a redistribution o f
priation act.
the national-bank currency, and for other purposes,”
approved June twentieth, eighteen hundred and seventyfour, the Secretary o f the Treasury is authorized to ap
point the follow ing force, to be employed under his direc
tion, namely: In the Office o f the Treasurer: * * *
In the Office o f the Comptroller o f the Currency * * *
And at the end o f each month, the Secretary o f the Treas
ury shall reimburse the Treasury to the full amount paid
out under the provisions o f this section by transfer o f
said amount from the deposit o f the national banking as
sociations with the Treasury o f the United States; and at
the end o f each fiscal year he shall transfer from said
deposit to the Treasury o f the United States such sum
as may have been actually expended under his direction
fo r stationery, rent, fuel, light, and other necessary inci
dental expenses which have been incurred in carrying
l .,

399;

part

REGULATION OF THE BANKING BUSINESS.

into effect the provisions o f the said section o f the abovenamed act.
N ote.— The appropriation bill for each year fixes the number
and compensation of the clerks employed in the offices of the
Treasurer of the United States and Comptroller of the Currency
in connection with the redemption of circulating notes.

DISPOSITION OF REDEMPTION ACCOUNT.
1890.

ACT JULY 14,

416. Sec. 6.— That upon the passage o f this act the lg^ !t c"ly7o|;
balances standing with the Treasurer o f the United sec. 6; 26 stat
States to the respective credits o f national banks for de- L" 289*
posits made to redeem the circulating notes o f such
banks, and all deposits thereafter received for like pur
pose, shall be covered into the Treasury as a miscellane
ous receipt, and the Treasury o f the United States shall
redeem from the general cash in the Treasury the circu
lating notes o f said banks which may come into his pos
session subject to redemption; and upon the certificate
o f the Comptroller o f the Currency that such notes have
been received by him and that they have been destroyed
and that no new notes will be issued in their place, reim
bursement o f their amount shall be made to the Treas
urer, under such regulations as the Secretary o f the
Treasury may proscribe, from an appropriation hereby
created, to be known as “ national-bank notes; Redemp
tion account,” but the provisions o f this act shall not
apply to the deposits received under section three o f the
act o f June twentieth, eighteen hundred and seventyfour, requiring every national bank to keep in lawful
money with the Treasurer o f the United States a sum
equal to five per centum o f its circulation, to be held
and used for the redemption o f its circulating notes:
and the balance remaining o f the deposits so covered
shall, at the close o f each month, be reported on the
monthly public debt statement as debt o f the United
States bearing no interest.
N ote.— The other sections of this act relate to the purchase of
silver bullion and issue of Treasury notes.

REDEMPTION OF LOST OR STOLEN NOTES, AND OF NOTES
NOT PROPERLY SIGNED. ACT JULY 28, 1892.

417. That the provisions o f the Revised Statutes o f the Act July
United States, providing for the redemption o f national l ., 322.
bank notes, shall apply to all national bank notes that
have been or may be issued to, or received by, any na
tional bank, notwithstanding such notes may have been
lost by or stolen from the bank and put in circulation
without the signature or upon the forged signature o f the
president or vice president and cashier.

m,
a *

REGULATION OF THE BANKING BUSINESS.

418. Sec. 5193.—
Repealed by act March 14, 1900.
N ote.— This section as enacted June 8, 1872 (17 Stat. L., 337),
authorized the Secretary of the Treasury to receive on deposit
from national banking associations United States notes in sums
of not less than ten thousand dollars and to issue certificates
therefor payable on demand in denominations of not less than
five thousand dollars. This was repealed by act March 14, 1900,
section 6, paragraph 752, post, which provides for issue of gold
certificates payable to order in denominations of ten thousand
dollars.

419. Sec. 5194.—
Dependent on 5193 and superseded by its repeal.

PLACE FOR REDEMPTION OF CIRCULATING NOTES TO BE
DESIGNATED.

420. Sec. 5195.—
See note under paragraph 401, ante.

NATIONAL BANKS TO TAKE NOTES OF OTHER NATIONAL
BANKS AT PAR.

igAct June1Q|» 421. Sec. 5196.— Every national banking association
s eV 3 2 ; 13 formed or existing under this Title; shall take and receive
StActIjui1y)9i 2>at Pa r 5 f ° r any debt or liability to it, any and all notes or
1870, c. 282^ bills issued by any law fully organized national banking
l.?‘ 253.16 tat*association. But this provision shall not apply to any
association organized for the purpose o f issuing notes
payable in gold.
LIMITATION UPON RATE OF INTEREST WHICH MAY BE
TAKEN.
1864 * f^ioe*
®ec* &197.— A ny association may take, receive,
s e c.’ 3 0 1 3 reserve, and charge on any loan or discount made, or upon
stat. l . , 108.
n 0 £e? k m 0 f exchange, or other evidences o f debt,
interest at the rate allowed by the laws o f the State, T er
ritory, or District where the bank is located, and no more,
except that where by the laws o f any State a different
rate is limited fo r banks o f issue organized under State
laws, the rate so limited shall be allowed for associations
organized or existing in any such State under this Title.
W hen no rate is fixed by the laws o f the State, or Terri
tory, or District, the bank may take, receive, reserve, or
charge a rate not exceeding seven per centum, and such
interest may be taken in advance, reckoning the days for
which the note, bill, or other evidence o f debt has to run.
A nd the purchase, discount, or sale o f a bona fide bill o f
exchange, payable at another place than the place o f such
purchase, discount, or sale, at not more than the current
rate o f exchange for sight drafts in addition to the in
terest, shall not be considered as taking or receiving a
greater rate o f interest.

any

BEGULATION OP THE BANKING BUSINESS.

PENALTY FOB TAKING UNLAWFUL INTEREST. JURISDICTION OF SUITS BY OB AGAINST NATIONAL BANKS.

Act June 3,

Wi i
Stat. L

108.

423. Sec. 5198 [as amended 1875].— The taking, receiv- 1375,‘ cl o; m
ing, reserving, or charging a rate o f interest greater than stat- L » 320*
is allowed by the preceding section, when knowingly done,
shall be deemed a forfeiture o f the entire interest which
the note, bill, or other evidence o f debt carries with it, or
which has been agreed to be paid thereon. In case the
greater rate o f interest has been paid, the person by
whom it has been paid, or his legal representative, may
recover back, in an action in the nature o f an action o f
debt, twice the amount o f the interest thus paid from the
association taking or receiving the same; provided such
action is commenced within two years from the time the
usurious transaction occurred. That suits, actions, and
proceedings against any association under this Title may
be had in any circuit, district, or territorial court o f the
United States held within the district in which such asso
ciation may be established, or in any State, county, or
municipal court in the county or city in which said asso
ciation is located having jurisdiction in similar cases.
N o t e .— Additional provisions relating to jurisdiction of actions
by and against national banks are contained in act July 12, 1882,
paragraph 218, ante, and act of August 13, 1888, paragraph 214,
ante. See also section 24, judiciary act passed March 3, 1911,
paragraph 701, post, and section 736, Revised Statutes of the
United States, paragraph 702, post, as to jurisdiction of district
courts to enjoin Comptroller under section 5237, Revised Statutes,
United States.

DIVIDENDS.

424. Sec. 5199.— The directors o f any association may Act June
semiannually, declare a dividend o f so much o f the net 1I6*/ 3 3 .
profits o f the association as they shall judge expedient; stat. l.,Y o 9 .
but each association shall, before the declaration o f a
dividend, carry one-tenth part o f its net profits o f the
preceding half year to its surplus fund until the same
shall amount to twenty per centum o f its capital stock.

3,
1

LIMITATION OF LIABILITIES WHICH MAY BE INCURRED
BY ANY ONE PERSON, COMPANY, ETC.

425. Sec. 5200 [as amended 1919],— The total liabilities Act
to any association o f any person or o f any company, co r-1919'
poration, or firm for money borrowed, including in the
liabilities o f a company or firm the liabilities o f the sev

Oct.

22,

BEGULATION OF THE BANKING BUSINESS.

eral members thereof, shall at no time exceed 10 per
centum o f the amount o f the capital stock o f such asso
ciation, actually paid in and unimpaired, and 10 per
centum o f its unimpaired surplus fu n d : Provided, how
ever• That (1) the discount o f bills o f exchange drawn in
good faith against actually existing values, including
drafts and bills o f exchange secured by shipping docu
ments conveying or securing title to goods shipped, and
including demand obligations when secured by docu
ments covering commodities in actual process o f ship
ment, and also including bankers’ acceptances o f the kinds
described in section 13 o f the Federal reserve act, (2) the
discount o f commercial or business paper actually owned
by the person, company, corporation, or firm negotiating
the same, (3) the discount o f notes secured by shipping
documents, warehouse receipts, or other such documents
conveying or securing title covering readily marketable
nonperishable staples, including live stock, when the
actual market value o f the property securing the obliga
tion is not at any time less than 115 per centum o f the
face amount o f the notes secured by such documents and
when such property is fully covered by insurance, and
(4) the discount o f any note or notes secured by not less
than a like face amount o f bonds or notes o f the United
States issued since A pril 24, 1917, or certificates o f in
debtedness o f the United States, shall not be considered
as money borrowed within the meaning o f this section.
The total liabilities to any association, o f any person or
o f any corporation, or firm, or company, or the several
members thereof upon any note or notes purchased or dis
counted by such association and secured by bonds, notes,
or certificates o f indebtedness as described in (4) hereof
shall not exceed (except to the extent permitted by rules
and regulations prescribed by the Comptroller o f the
Currency, with the approval o f the Secretary o f the
Treasury) 10 per centum o f such capital stock and sur
plus fund o f such association and the total liabilities to
any association o f any person or o f any corporation, or
firm, or company, or the several members thereof for
money borrowed, including the liabilities upon notes
secured in the manner described under (3) hereof, except
transactions (1 ), (2 ), and (4 ), shall not at any time ex
ceed 25 per centum o f the amount o f the association’s
paid-in and unimpaired capital stock and surplus. The
exception made under (3) hereof shall not apply to the
notes o f any one person, corporation or firm or company,

REGULATION OF THE BANKING BUSINESS.

or the several members thereof fo r more than six months
in any consecutive twelve months.
N o t e .— See Act March 3, 1919. “ Victory Liberty Loan Act,”
section 1, which provides that the word “ bonds,” where it ap
pears in section 5200 of the Revised Statutes, as amended, shall
be deemed to include notes issued under the “ Victory Liberty
Loan Act.”

ASSOCIATIONS MUST NOT LOAN ON OR PURCHASE THEIR
OWN STOCK.

426. Sec. 5201.— No association shall make any loan or Act June 3,
discount on the security o f the shares o f its own capitals®6*’ 3*5; 10i3
stock, nor be the' purchaser or holder o f any such shares,stat* L* 110*
unless such security or purchase shall be necessary to
prevent loss upon a debt previously contracted in good
faith ; and stock so purchased or acquired shall, within
six months from the time o f its purchase, be sold or dis
posed o f at public or private sale; or, in default thereof,
a receiver may be appointed to close up the business o f
the association, according to section fifty-two hundred
and thirty-four.
RESTRICTION ON BANK’S INDEBTEDNESS.

427. Sec. 5202 [as amended 1919].— No national banking lgAct J™*ese3>
association shall at any time be indebted, or in any way 36; 13’ stat. lc;
liable, to an amount exceeding the amount o f its capital UACt Dec. 23,
stock at such time actually paid in and remaining un- gJJ
diminished by losses or otherwise, except on account o f Act Apr.' 5,
demands o f the nature follow in g:
19^ct 0 ct. 22,
First. Notes o f circulation.
1919Second. Moneys deposited with or collected by the asso
ciation.
Third. Bills o f exchange or drafts drawn against
money actually on deposit to the credit o f the association,
or due thereto.
Fourth. Liabilities to the stockholders o f the associa
tion for dividends and reserve profits.
Fifth. Liabilities incurred under the provisions o f the
Federal Reserve Act.
Sixth. Liabilities incurred under the provisions o f the
W ar Finance Corporation Act.
Seventh. Liabilities created bv the indorsement o f ac
cepted bills o f exchange payable abroad actually owned
by the indorsing bank and discounted at home or abroad.

REGULATION OF THE BANKING BUSINESS.

RESTRICTION UPON USE OF CIRCULATING NOTES.
185 %
* cUni 06
®ec# ®®>3.— No association shall, either directly or
s e c.’ 3 7 ; li indirectly, pledge or hypothecate any o f its notes or cirstat. l . , no. cui ation, fo r the purpose o f procuring money to be paid
in on its capital stock, or to be used in its banking oper
ations, or otherwise; nor shall any association use its cir
culating notes, or any part thereof, in any manner or
form , to create or increase its capital stock.

PROHIBITION UPON WITHDRAWAL OF CAPITAL.
EARNED DIVIDENDS PROHIBITED.

1864 * cUni06
^ec‘
association, or any member thereof,
sec/ 3 8 ; li shall, during the time it shall continue its banking opstat. l ., no. erations, withdraw, or permit to be withdrawn, either in
the form o f dividends or otherwise, any portion o f its
capital. I f losses have at any time been sustained by
any such association, equal to or exceeding its undivided
profits then on hand, no dividend shall be m ade; and no
dividend shall ever be made by any association, while it
continues its banking operations, to an amount greater
than its net profits then on hand, deducting therefrom its
losses and bad debts. A ll debts due to any association,
on which interest is past due and unpaid for a period o f
six months, unless the same are well secured, and in proc
ess o f collection, shall be considered bad debts within
the meaning o f this section. But nothing in this section
shall prevent the reduction o f the capital stock o f the as
sociation under section fifty-one hundred and fortythree.

ASSESSMENT FOR FAILURE TO PAY UP CAPITAL frTOCK
OR FOR IMPAIRMENT OF CAPITAL.
Act Mar. 3,
430. Sec. 5205 [as amended 1876].— Every association
secPi; 17 s2tat! which shall have failed to pay up its capitai stock, as reL*A6ct3june 30 <luire(l by law, and every association whose capital stock
187V % 156’ shall have become impaired by losses or otherwise, shall.
l.% 4! 1 Stat within three months after receiving notice thereof from
the Comptroller o f the Currency, pay the deficiency in
the capital stock, by assessment upon the shareholders
pro rata for the amount o f capital stock held by each;
and the Treasurer o f the United States shall withhold
the interest upon all bonds held by him in trust for any
such association, upon notification from the Comptroller
o f the Currency, until otherwise notified by him. I f any
such association shall fail to pay up its capital stock, and
shall refuse to go into liquidation, as provided by law,
for three months after receiving notice from the Comp
troller, a receiver may be appointed to close up the busi
ness o f the association, according to the provisions o f
section fifty-two hundred and thirty-fou r: And pro
vided, That if any shareholder or shareholders o f such
bank shall neglect or refuse, after three months’ notice, to

REGULATION OF THE BANKING BUSINESS.

pay the assessment, as provided in this section, it shall be
the duty o f the board o f directors to cause a sufficient
amount o f the capital stock o f such shareholder or share
holders to be sold at public auction (after thirty days’
notice shall be given by posting such notice o f sale in the
office o f the bank, and by publishing such notice in a news
paper o f the city or town in which the bank is located, or
in a newspaper published nearest thereto), to make good
the deficiency, and the balance, if any, shall be returned
to such delinquent shareholder or shareholders.
PROHIBITION AGAINST UNCURRENT NOTES.

431. Sec. 5206.— No association shall at any time p a y 18^ cUneioo!
out on loans or discounts, or in purchasing drafts or bills |e c.’
o f exchange, or in payment o f deposits, or in any other a ’ "
mode pay or put in circulation, the notes o f any bank or
banking association which are not, at any such time,
receivable, at par, on deposit, and in payment o f debts by
the association so paying out or circulating such notes;
nor shall any association knowingly pay out or put in
circulation any notes issued by any bank or banking asso
ciation which at the time o f such paying out or putting in
circulation is not redeeming its circulating notes in law
ful money o f the United States.
UNITED STATES NOTES NOT TO BE HELD AS COLLAT
ERAL.

432. Sec. 5207.— No association shall hereafter offer or 18g9* CF3 2 .
receive United States notes or national-bank notes a s stat-’ L » 27’°*
security or as collateral security for any loan o f money,
or for a consideration agree to withhold the same from
use, or offer or receive the custody or promise o f custody
o f such notes as security, or as collateral security, or
consideration for any loan o f money. A ny association
offending against the provisions o f this section shall be
deemed guilty o f a misdemeanor, and shall be fined not
more than one thousand dollars and a further sum equal
to one-third o f the money so loaned. The officer or offi
cers o f any association who shall make any such loan
shall be liable for a further sum equal to one-quarter o f
the money loaned; and any fine or penalty incurred by a
violation o f this section shall be recoverable for the bene
fit o f the party bringing such suit.
ISSUE OF GOLD CERTIFICATES.

ACT JULY 12, 1882.

433. Sec. 12.— That the Secretary o f the Treasury is Act July 12,
authorized and directed to receive deposits o f gold coin 2282,stat.‘ "l.*,
* * * and issue certificates therefor * * *. S u c h 165certificates * * * , when held by any national bank
ing association, shall be counted as part o f its lawful
reserve; and no national banking association shall be a

REGULATION OF THE BANKING BUSINESS.

member o f any clearing house in which such certificates
shall not be receivable in the settlement o f clearing-house
balances: * * * A n d the provisions o f section fiftytwo hundred and seven o f the Revised Statutes shall be
applicable to the certificates herein authorized and di
rected to be issued.
N ote.— This section given in full, paragraph 729, post. See also
currency act of March 14, 1900, as amended March 4, 1907, March
2, 1911, and June 12, 1916, paragraph 754, post, relating to gold
certificates, and making ten dollars lowest denomination.

PENALTY FOR FALSELY CERTIFYING CHECKS.

1 8»% ¥ fi’;1!k . 434- Sec- 5208‘— It shall be unlawful for any officer,
stat.’ C 335 director, agent, or employee o f any Federal reserve bank,
1918. ep
’ or o f any member bank as defined in the act o f December
twenty-third, nineteen hundred and thirteen, known as
the Federal reserve act, to certify any check drawn upon
such Federal reserve bank or member bank unless the
person, firm, or corporation drawing the check has on
deposit with such Federal reserve bank or member bank,
at the times such check is certified, an amount o f money
not less than the amount specified in such check. A n y
check so certified by a duly authorized officer, director,
agent, or employee shall be a good and valid obligation
against such Federal raserve bank or member bank; but
the act o f any officer, director, agent, or employee o f any
such Federal reserve bank or member bank in violation
o f this section shall, in the discretion o f the Federal Ee
serve Board, subject such Federal reserve bank to the
penalties imposed by section eleven, subsection (h ), o f the
Federal reserve act, and shall subject such member bank
i f a national bank to the liabilities and proceedings on the
part o f the Comptroller o f the Currency provided for in
section fifty-two hundred and thirty-four, Revised
Statutes, and shall, in the discretion o f the Federal Re
serve Board, subject any other member bank to the penal
ties imposed by section nine o f said Federal reserve act
fo r the violation o f any o f the provisions o f said act.
A n y officer, director, agent, or employee o f any Federal
reserve bank or member bank who shall w illfully violate
the provisions o f this section, or who shall resort to any
device, or receive any fictitious obligation, directly or
collaterally, in order to evade the provisions thereof, or
who shall certify a check before the amount thereof shall
have been regularly entered to the credit o f the drawer
upon the books o f the bank, shall be deemed guilty o f a
misdemeanor and shall, on conviction thereof in any dis
trict court o f the United States, be fined not more than
$5,000, or shall be imprisoned for not more than five
years, or both, in the discretion o f the court.

REGULATION OF THE BANKING BUSINESS.

PUNISHMENT FOR FALSELY CERTIFYING CHECKS.
JULY 12, 1882.

ACT

435. Sec. 13.—
Superseded by act of Sept. 26, 1918.
PENALTY FOR EMBEZZLEMENT, ABSTRACTION, WILLFUL
MISAPPLICATION, FALSE ENTRIES, ETC.

436. Sec. 5209.— Any officer, director, agent, or em- Act June s,
ployee of any Federal reserve bank, or of any member seV 55; 1 i:j
bank as defined in the act of December twenty-third, stAct LAPr.16G,
nineteen hundred and thirteen, known as the Federal rey ;™
serve act, who embezzles, abstracts, or w illfully misap- Act July 8,
plies any of the moneys, funds, or credits of such Federal if 7% tat. 22l.;,
reserve bank or member bank, or who, without authority 195.^
^
from the directors of such Federal reserve bank or mem-1918. ep ‘ ’
ber bank, issues or puts in circulation any of the notes
of such Federal reserve bank 01* member bank, or who,
without such authority, issues or puts forth any certifi
cate of deposit, draws any order or bill of exchange,
makes any acceptance, assigns any note, bond, draft, bill
of exchange, mortgage, judgment, or decree, or who
makes any false entry in any book, report, or statement of
such Federal reserve bank or member bank, with intent
in any case to injure or defraud such Federal reserve
bank or member bank, or any other company, body politic
or corporate, or any individual person, or to deceive any
officer of such Federal reserve bank or member bank, or
the Comptroller of the Currency, or any agent or exam
iner appointed to examine the affairs of such Federal
reserve bank or member bank, or the Federal Reserve
B o ard ; and every receiver of a national banking associa
tion who, with like intent to defraud or injure, embezzles,
abstracts, purloins, or w illfully misapplies any of the*
moneys, funds, or assets of his trust, and every person 1
who, with like intent, aids or abets any officer, director,
agent, employee, or receiver in any violation of this sec
tion shall be deemed guilty of a misdemeanor, and upon
conviction thereof in any district court of the United
States shall be fined not more than $5,000 or shall be
imprisoned for not more than five years, or both, in the
discretion of the court.
A ny Federal reserve agent, or any agent or employee
of such Federal reserve agent, or of the Federal Reserve
Board, who embezzles, abstracts, or w illfully misapplies
any moneys, funds, or securities intrusted to his care, or
without complying with or in violation of the provisions
of the Federal reserve act, issues or put in circulation any
Federal reserve notes shall be guilty of a misdemeanor
and upon conviction in any district court of the United
States shall be fined not more than $5,000 or imprisoned
for not more than five years, or both, in the discretion
o f the court.

REGULATION OF THE BANKING BUSINESS.

NATIONAL BANKS NOT PERMITTED TO MAKE CONTRIBU
TIONS IN CONNECTION WITH ELECTION TO POLITICAL
OFFICE. ACT JANUARY 26, 1907.
Act Jan. 26,
437. That it shall be unlawful fo r any national bank, or
l.,° 8 &4?4 Stat’ any corporation organized by authority o f any laws o f
Congress, to make a money contribution in connection
with any election to any political office. It shall also be
unlawful for any corporation whatever to make a money
contribution in connection with any election at which
Presidential and Vice-Presidential electors or a Repre
sentative in Congress is to be voted for or any election by
any State legislature o f a United States Senator. Every
corporation which shall make any contribution in viola
tion o f the foregoing provisions shall be subject to a fine
not exceeding five thousand dollars, and every officer or
director o f any corporation who shall consent to any con
tribution by the corporation in violation o f the foregoing
provisions shall upon conviction be punished by a fine o f
not exceeding one thousand and not less than two hun
dred and fifty dollars, or by imprisonment for a term o f
not more than one year, or both such fine and imprison
ment in the discretion o f the court.

MEMBER BANK CAN NOT MAKE LOAN OR GRANT A GRA
TUITY TO ANY NATIONAL BANK EXAMINER.
1913 * Dec' 23i
438a. No member bank and no officer, director, or em381 'stat/ 2L.|ployee thereof shall hereafter make any loan or grant
27Act June 21 any gratuity to any bank examiner. A ny bank officer,
*9^7,t sec.^ii. ’ director, or employee violating this provision shall be
1918. ept* 20, deemed guilty o f a misdemeanor and shall be impris
oned not exceeding one year or fined not more than
$5,000, or both; and may be fined a further sum equal
to the money so loaned or gratuity given.
A ny examiner accepting a loan or gratuity from any
bank examined by him or from an officer, director, or
employee thereof shall be deemed guilty o f a misde
meanor and shall be imprisoned one year or fined not
more than $5,000, or both, and may be fined a further
sum equal to the money so loaned or gratuity given, and
shall forever thereafter be disqualified from holding office
as a national bank examiner.

NATIONAL BANK EXAMINER CAN NOT PERFORM ANY
SERYICE FOR COMPENSATION FOR ANY BANK OR OFFICER. EXAMINER CAN NOT DISCLOSE THE NAMES
OF BORROWERS OR COLLATERAL WITHOUT FIRST
OBTAINING WRITTEN CONSENT OF COMPTROLLER.
secC*22 *

438b. No national bank examiner shall perform any
other service for compensation while holding such office
27lct June 21, f ° r any bank or officer, director, or employee thereof.
19Ict S eV W
exam^ner? Public or private, shall disclose the
1918.
ep ' ' names o f borrowers or the collateral for loans o f a mem
ber bank to other than the proper officers o f such bank
1913*

'stat/

l/,

REGULATION OF THE BANKING BUSINESS.

without first having obtained the express permission in
writing from the Comptroller o f the Currency, or from
the board o f directors o f such bank, except when ordered
to do so by a court o f competent jurisdiction, or by direc
tion o f the Congress o f the United States, or o f either
House thereof, or any committee o f Congress, or o f either
House duly authorized. A ny bank examiner violating the
provisions o f this subsection shall be imprisoned not
more than one year or fined not more than $5,000, or
both.
PENALTY FOR OFFICER, DIRECTOR, OR EMPLOYEE OF
MEMBER BANK WHO RECEIVES ANY COMMISSION OR
GIFT IN CONNECTION WITH ANY LOAN.

438c. Except as herein provided, any officer, director, 19^3ct ^ c- 2223:
employee, or attorney o f a member bank who stipulates p stat.' l . ’,
for or receives or consents or agrees to receive any fee, Act June 21,
commission, gift, or thing o f value from any person, 19^t iept/ie,
firm, or corporation, for procuring or endeavoring to pro- 1918.
cure for such person, firm, or corporation, or for any
other person, firm, or corporation, any loan from or the
purchase or discount o f any paper, note, draft, check, or
bill o f exchange by such member bank shall be deemed
guilty o f a misdemeanor and shall be imprisoned not
more than one year or fined not more than $5,000, or
both.
PURCHASE OF SECURITIES OR PROPERTY FROM ONE OF
ITS DIRECTORS, OR SALES TO A DIRECTOR BY A MEM
BER BANK.

438d. A ny member bank may contract for, or purchase 19^ * ^ c- 2223:
from, any o f its directors or from any firm o f which any 38 ’stat.* l.|
o f its directors is a member, any securities or other p r o p - 27Act June 21,
erty, when (and not otherwise) such purchase is made in 19^ ’t lept1^*
the regular course o f business upon terms not less fa v o r - 1918.
able to the bank than those offered to others, or when
such purchase is authorized by a majority o f the board
o f directors not interested in the sale o f such securities
or property, such authority to be evidenced by the a f
firmative vote or written assent o f such directors: Pro
vided, however, That when any director, or firm o f
which any director is a member, acting for or on behalf
o f others, sells securities or other property to a member
bank, the Federal Reserve Board by regulation may, in
any or all cases, require a full disclosure to be made, on
forms to be prescribed by it, o f all commissions or other
considerations received, and whenever such director or
firm, acting in his or its own behalf, sells securities or
other property to the bank the Federal Reserve Board,
by regulation, may require a full disclosure o f all profit
realized from such sale.
A ny member bank may sell securities or other prop
erty to any o f its directors, or to a firm o f which any of

REGULATION OF THE BANKING BUSINESS,

its directors is a member, in the regular course o f busi
ness on terms not more favorable to such director or firm
than those offered to others, or when such sale is author
ized by a m ajority o f the board o f directors o f a member
bank to be evidenced by their affirmative vote or written
assent: Provided, however, That nothing in this subsec
tion contained shall be construed as authorizing member
banks to purchase or sell securities or other property
which such banks are not otherwise authorized by law to
purchase or sell.
RATE OF INTEREST PAID DIRECTORS, OFFICERS, OR
EMPLOYEES NOT TO EXCEED THAT PAID TO OTHER
DEPOSITORS.
1913* sec?* 2 2 1 438e. No member bank shall pay to any director, officer,
3|2 ’stat.’ l . ' attorney, or employee a greater rate o f interest on the
Act June 21, deposits o f such director, officer, attorney, or employee
19lct Sept 126 ^ an that Pa^
other depositors on similar deposits
1918.
’ 'w ith such member bank.

PENALTY FOR VIOLATION OF ANY OF THE PROVISIONS
OF SECTION 22 OF THE FEDERAL RESERVE ACT.
1913,* sec?* 22*;
^38f. I f the directors or officers o f
382 'stat.* l .) shall knowingly violate or permit any

any member bank
o f the agents, offiAct June 2if cers, or directors o f any member bank to violate any o f
19Ict Sept/^e,
provisions o f this section or regulations o f the board
1918.
* ' made under authority thereof, every director and officer
participating in or assenting to such violation shall be
held liable in his personal and individual capacity for all
damages which the member bank, its shareholders, or
any other persons shall have sustained in consequence o f
such violation.
LIST OF SHAREHOLDERS.

1864,4

cUni06
^39. Sec. 5210.— The president and cashier o f every
stat l4^ in 1^nati°nal banking association shall cause to be kept at all
times a? full ancl correct list o f the names and residences
o f all the shareholders in the association, and the number
o f shares held by each, in the office where its business is
transacted. Such list shall be subject to the inspection
o f all the shareholders and creditors o f the association,
and the officers authorized to assess taxes under State
authority, during business hours o f each day in which
business may be legally transacted. A copy o f such list,
on the first M onday o f July o f each year, verified by the
oath o f such president or cashier, shall be transmitted to
the Comptroller o f the Currency.
REPORTS TO COMPTROLLER OF THE CURRENCY.
1864* cUni06
s e c / 34 ; id
stat. l., 109.

®eo*
tas amended 1877].— E very association
shall make to the Comptroller o f the Currency not less
£han five reports during each year, according to the form

REGULATION OF THE BANKING BUSINESS.

which may be prescribed by him, verified by the oath or
affirmation o f the president or cashier o f such association,
and attested by the signature o f at least three o f the
directors. Each such report shall exhibit, in detail and
under appropriate heads, the resources and liabilities o f
the association at the close o f business on any past day by
him specified; and shall be transmitted to the Comptrol
ler within five days after the receipt o f a request or requi
sition therefor from him, and in the same form in which
it is made to the Comptroller shall be published in a
newspaper published in the place where such association
is established, or if there is no newspaper in the place,
then in the one published nearest thereto in the same
county, at the expense o f the association; and such proof
o f publication shall be furnished as may be required by
the Comptroller. The Comptroller shall also have power
to call fo r special reports from any particular association
whenever in his judgment the same are necessary in
order to a full and complete knowledge o f its condition.

^ ari3<j;
stat'
Act Feb. 27,
£;t62&.19

N ote.— Section 713 of the Code of Laws of the District of Colum
bia provides: “ That all publications authorized or required by
said section fifty-two hundred and eleven of the Revised Statutes,
and all other publications authorized or required by existing law
to be made in the District of Columbia, shall be printed in two
or more daily newspapers of general circulation, published in the
City of Washington, one of which shall be a morning newspaper.”
The Federal Reserve Board is authorized by section 11 of the
Federal reserve act to examine at its discretion the accounts,
books, and affairs of each Federal reserve bank and of each mem
ber bank and to require such statements and reports as it may
deem necessary.

VERIFICATION OF REPORTS.

ACT FEBRUARY 26, 1881.

441. That the oath or affirmation required by section
fifty-two hundred and eleven o f the Revised Statutes,
verifying the returns made by national banks to the
Comptroller o f the Currency, when taken before a notary
public properly authorized and commissioned by the
State in which such notary resides and the bank is lo
cated, or any other officer having an official seal, author
ized in such State to administer oaths, shall be a sufficient
verification as contemplated by said section fifty-two hun
dred and eleven: Provided, That the officer administering
the oath is not an officer o f the bank.

Btat/ l „ 352.

REPORT OF DIVIDENDS.

442. Sec. 5212.— In addition to the reports required by 18f^t ^ari 3o;
the preceding section, each association shall report to the ^ c,32;715 stat*
Comptroller o f the Currency, within ten days after de- **
darin g any dividend, the amount o f such dividend, and
the amount o f net earnings in excess o f such dividend.
Such reports shall be attested by the oath o f the president
or cashier o f the association.

REGULATION OF THE BANKING BUSINESS.

PENALTY FOR FAILURE TO MAKE REPORTS.
1869* cIari 30*
®ec* 5213.— Every association which fails to make
secs.’ i,c*2 ; l i and transmit any report required under either o f the two
stat. l ., 326. preceding sections shall be subject to a penalty o f one
hundred dollars fo r each day after the periods, respec
tively, therein mentioned, that it delays to make and
transmit its report. Whenever any association delays or
refuses to pay the penalty herein imposed, after it has
been assessed by the Comptroller o f the Currency, the
amount thereof may be retained by the Treasurer o f the
United States, upon the order o f the Comptroller o f the
Currency, out o f the interest, as it may become due to the
association, on the bonds deposited with him to secure
circulation. A ll sums o f money collected for penalties
under this section shall be paid into the Treasury o f the
United States.

TAXES PAYABLE TO THE UNITED STATES.

Sec. 5214, u. 444. Sec. 5214.— In lieu o f all existing taxes, every asso^ Act^June 3, ciation shall pay to the Treasurer o f the United States,
se6c* 4 i * 10i6^ n ^ e months o f January and July, a duty o f onestat. l ., in . half o f one per centum each half year upon the average
amount o f its notes in circulation, [ and a duty of one-

quarter of one per centum each half year upon the aver
age amownt of its deposits, and a duty of one-quarter of
one per centum each half year on the average amount of
its capital stock, beyoTid the amount invested in United
States bonds].
1900* sec^is*
^ec*
31 stat. l ., 49! having on

— That every national banking association
deposit, as provided by law, bonds o f the
United States bearing interest at the rate o f two per
centum per annum, issued under the provisions o f this
Act, to secure its circulating notes, shall pay to the
Treasurer o f the United States, in the months o f Janu
ary and July, a tax o f one-fourth o f one per centum
each half year upon the average amount o f such o f its
notes in circulation as are based upon the deposit o f said
two per centum bonds; and such taxes shall be in lieu
o f existing taxes on its notes in circulation imposed by
section fifty-two hundred and fourteen o f the Revised
Statutes.
N ote.— The provisions of section 5214, covering taxes on the
average amount of deposits and capital, were repealed by the act
of March 3, 1883. The 2 per cent Panama Canal bonds were
given all rights and privileges accorded to other 2 per cent bonds
of the United States by the act of December 21, 1905.
On May 30, 1908, section 5214 was reenacted so as to cover
the provisions of the original section as modified by the acts
of March 3, 1883, March 14, 1900, and December 21, 1905, and in
addition thereto there was added provisions for the taxation of
the additional circulation issued under the act. The act of May
30, 1908, however, expired on June 30, 1914, and while it was ex
tended by section 27 of the act of December 23, 1913, to June
30, 1915, it was expressly provided in the latter act that on the

REGULATION OF THE BANKING BUSINESS.

expiration of the act of May 30, 1908, section 5214 should be re
enacted to read as such section read prior to May 30,1908. The acts
of December 23, 1913, and August 4, 1914, amended the provisions
in this section of the act of May 30, 1908, relative to the taxa
tion of emergency currency. All the provisions for the emer
gency currency expired on June 30, 1915.
The following is section 5214 as it stood prior to the expiration
of the Emergency Currency Act on June 30, 1915, with all amend
ments :
“ S ec . 5214. National banking associations having on deposit
bonds of the United States, bearing interest at the rate of two
per centum per annum, including the bonds issued for the con
struction of the Panama Canal, under the provisions of section
eight of ‘An Act to provide for the construction of a canal con
necting the waters of the Atlantic and Pacific oceans,’ approved
June twenty-eighth, nineteen hundred and twTo, to secure its
circulating notes, shall pay to the Treasury of the United States,
in the months of January and July, a tax of one-fourth of one
per centum each half year upon the average amount of such of its
notes in circulation as are based upon the deposit of such bonds;
and such associations having on deposit bonds of the United
States bearing interest at a rate higher than two per centum
per annum shall pay a tax of one-half of one per centum each
half year upon the average amount of such of its notes in circula
tion as are based upon the deposit of such bonds.
“ National banking associations having circulating notes secured
otherwise than by bonds of the United States, shall pay for the
first three months a tax at the rate of three per centum per annum
upon the average amount of such of their notes in circulation as
are based upon the deposit of such securities, and afterwTards an
additional tax rate of one-half of one per centum per annum for
each month until a tax of six per centum per annum is reached,
and thereafter such tax of six per centum per annum upon the
average amount of such notes. Every national banking associa
tion having outstanding circulating notes secured by a deposit of
other securities than United States bonds shall make monthly
returns, under oath of its president or cashier, to the Treasurer
of the United States, in such form as the Treasurer may prescribe,
of the average monthly amount of its notes so secured in circula
tion ; and it shall be the duty of the Comptroller of the Currency
to cause such reports of notes in circulation to be verified by
examination of the bank’s records. The taxes received on circu
lating notes secured otherwise than by bonds of the United States
shall be paid into the Division of Redemption of the Treasury and
credited and added to the reserve fund held for the redemption of
United States and other notes.”
HALF-YEARLY RETURN OF CIRCULATION
capital stock'].

[deposits and

446. Sec. 5215.— In order to enable the Treasurer t o 18£|t
assess the duties imposed by the preceding section, each s e c.’ 4 1 ; li
association shall, within ten days from the first days o f stat* L,» m *
January and July o f each year, make a return, under the
oath o f its president or cashier, to the Treasurer o f the
United States, in such form as the Treasurer may pre
scribe, o f the average amount o f its notes in circulation,

\ancl of the average amount of its deposits, and of the
average amount of its capital stock, beyond the amount
invested in United States bonds], fo r the six months next
preceding the most recent first day o f January or July.
Every association which fails so to make such return
shall be liable to a penalty o f two hundred dollars, to be

REGULATION OF THE BANKING BUSINESS.

collected either out o f the interest as it may become due
such association on the bonds deposited with the Treas
urer, or, at his option, in the manner in which penalties
are to be collected o f other corporations under the laws
o f the United States.
N ote .—The taxes on the average amount of deposits and capital
stock were repealed by the act of March 3,1883.

PENALTY FOR FAILURE TO MAKE RETURN.
Act Jane 3,
447. Sec. 5216.— Whenever any association fails to make
s e6c / 4 i ; 10i5 the half-yearly return required by the preceding section,.
stat l., in . the duties to be paid by such association shall be assessed
upon the amount o f notes delivered to such association
by the Comptroller o f the Currency, [ and upon the high
est amount of its deposits and capital stock, to be ascer

tained in such manner as the Treasurer may deem best.']
N ote .—See note under section 5215 stating that tax on deposits
and capital stock had been repealed.

ENFORCING TAX ON CIRCULATION.

Act June 3, 448. Sec. 5217.— Whenever an association fails to pay
sec/ 4 i ; 1(5&the duties imposed by the three preceding sections, the
stat. l., in . gums due may be collected in the manner provided fo r the
collection o f United States taxes from other corpora
tions ; or the Treasurer may reserve the amount out o f the
interest, as it may become due, on the bonds deposited
with him by such defaulting association.
REFUNDING EXCESS TAX.

'MaRreS20lui 867n
®ec# 5218 —In all cases where an association has
No. ’ 4 9 ; i i paid or may pay in excess o f what may be or has been
asaamended7in found due from it, on account o f the duty required to be
r. s. 5218.
paid to the Treasurer o f the United States, the associa
tion may state an account therefor, which, on being certi
fied by the Treasurer o f the United States, and found
correct by the First Comptroller o f the Treasury, shall
be refunded in the ordinary manner by warrant on the
Treasury.
NO TAX TO BE PAID BY INSOLYENT BANKS.
1, 1879.

ACT MARCH

®e c *
whenever and after any bank has
i ue 1879, s2£ ceased to do business by reason o f insolvency or banki l l .20 stat' L" ruptcy, no tax shall be assessed or collected, or paid into
the Treasury o f the United States, on account o f such
bank, which shall diminish the assets thereof necessary
fo r tne full payment o f all its depositors; and such tax
shall be abated from such national banks as are found by
the Comptroller o f the Currency to be insolvent; * * *.
nue te«ictal Mar"

REGULATION OF THE BANKING BUSINESS.

STATE TAXATION.

451. Sec. 5219.— Nothing herein shall prevent all the 1S^ cUni 06
shares in any association from being included in the valu- s e c.’ 4 i ; 13
at ion o f the personal property o f the owner or holder o f stict.Ltfeb* 10,
such shares, in assessing taxes imposed by authority o f
£•
15
the State within which the association is located; but the
legislature o f each State may determine and direct the
manner and place o f taxing all the shares o f national
banking associations located within the State, subject
only to the two restrictions, that the taxation shall not be
at a greater rate than is assessed upon other moneyed
capital in the hands o f individual citizens o f such State,
and that the shares o f any national banking association
owned by nonresidents o f any State shall be taxed in the
city or town where the bank is located, and not elsewhere.
Nothing herein shall be construed to exempt the real
property o f associations from either State, county, or mu
nicipal taxes, to the same extent, according to its value,
as other real property is taxed.

DISSOLUTION AND RECEIVERSHIP.

164312°— 20------7

CHAPTER V.
DISSOLUTION AND RECEIVERSHIP.

500. 5220. Two-thirds vote required
for liquidation.
501. 5221. Notice of voluntary liqui
dation.
502. 5222. Deposit of lawful money to
redeem circulation.
503. 5223. No deposit required for
consolidation.
503a. Act November 7, 1918. Consoli
dation of national banks.
504. 5224. Reassignment of bonds and
redemption of notes of
liquidating banks.
505. Act June 20, 1874.
Duty of
Treasurer, A s s i s t a n t
Treasurer, etc., to return
notes of failed or liquidat
ing banks to Treasury for
redemption.
506. 5225. Destruction of redeemed
notes.
507. 5226. Protest of bank circulation.
508. 5227. Bonds forfeited if circula
tion is dishonored. Exa m i n a t i o n by special
agent.
509. 5228. Suspension
of
business
after default.
510. 5229. Notice to present circula
tion
for
redemption.
Cancellation of bonds.
511. 5230. Sale of bonds at auction.
First lien for redeeming
circulation.
512. 5231. Bonds may be sold at pri
vate sale.
513. 5232. Disposal of r e d e e m e d
notes.
Regulations for
redemption records.

514. 5233. Redeemed notes to be can
celed.
515. 5234. Appointment and duties of
receivers.
516. 5235. Notice to creditors of in
solvent banks to present
claims.
517. 5236. Dividends. Distribution of
assets of insolvent banks.
518. 5237. When bank may enjoin fur
ther proceedings.
519. 5238. Fees and expenses.
520. Act June 30, 1876.
When re
ceiver may be appointed.
521. Act June 30, 1876.
Creditor’s
bill against shareholders.
522. Act June 30, 1876, as amended
1892.
1897.
Appoint
ment, qualification, and
duties of shareholders’
agent.
523. Act March 29, 1886. Receiver
may purchase property to
protect his trust.
524. Act March 29, 1886. Approval of
request.
525. Act March 29, 1886. Payment.
526. 5239. Penalty for violation of
this title. Forfeiture of
charter.
Individual lia
bility of directors.
527. 5240. Appointment of examiners.
Compensation.
528. 5241. Limitation
of
visitorial
powers.
529. 5242. Transfers, when void. Il
legal preference of credi
tors.
530. 5243. Use of the title “ Na
tional.”

TWO-THIRDS TOTE REQUIRED FOR LIQUIDATION.

500. Sec. 5220.— A ny association may go into liquida-18^ cUnio6!
tion and be closed by the vote o f its shareholders o w n i n g see ’ 4 2 ; 13
two-thirds o f its stock.
8tat L- 112‘
N ote .— For enforcement of shareholders’ liability when bank is
in liquidation see act of June 30, 1876, following Revised Statutes,
5238.

NOTICE OF VOLUNTARY LIQUIDATION.

501. Sec. 5221.— Whenever a vote is taken to go in to is f^ l unei06;
liquidation it shall be the duty o f the board o f d i r e c t o r s ^ 42 ,-^ 1 3
to cause notice o f this fact to be certified, under the seal

100

DISSOLUTION AND RECEIVERSHIP.

o f the association, by its president or cashier, to the
Comptroller o f the Currency, and publication thereof to
be. made fo r a period o f two months in a newspaper pub
lished in the city o f New York, and also in a newspaper
published in the city or town in which the association is
located, or i f no newspaper is there published, then in the
newspaper published nearest thereto, that the association
is closing up its affairs, and n otifying the holders o f its
notes and other creditors to present the notes and other
claims against the association for payment.
DEPOSIT OF LAWFUL MONEY TO REDEEM CIRCULATION.
Act Juno 3,
502. Sec.
secs4, 42, 4°36; the vote to

5222.— W ithin six months from the date o f
go into liquidation, the association shall dei32 stat. l., posit with the Treasurer o f the United States, lawful
Act July 14, money o f the United States sufficient to redeem all its
W °’stat. 25l.; outstanding circulation. The Treasurer shall execute
274*
duplicate receipts for money thus desposited and deliver
one to the association and the other to the Comptroller o f
the Currency, stating the amount received by him, and the
purpose for which it has been received; and the money
shall be paid into the Treasury o f the United States, and
placed to the credit o f such association upon redemption
account.
NO DEPOSIT REQUIRED FOR CONSOLIDATION.
1870 1 c1112574:
®ec* 5 ^ 3 .— A n association which
16 stat. L.j winding up its business for the purpose

274,

is in good faith
o f consolidating
with another association shall not be required to deposit
lawful money for its outstanding circulation; but its as
sets and liabilities shall be reported by the association
with which it is in process o f consolidation.
CONSOLIDATION OF NATIONAL BANKS.

1918.*

Nov 7*
— That any two or more national banking associa
tions located within the same county, city, town, or village
may, with the approval o f the Comptroller o f the Cur
rency, consolidate into one association under the charter
o f either existing banks, on such terms and conditions as
may be law fully agreed upon by a m ajority o f the board
o f directors o f each association proposing to consolidate,
and be ratified and confirmed by the affirmative vote o f
the shareholders o f each such association owning at least
two-thirds o f its capital stock outstanding, at a meeting
to be held on the call o f the directors after publishing
notice o f the time, place, and object o f the meeting for
four consecutive weeks in some newspaper published in
the place where the said association is located, and i f no
newspaper is published in the place, then in a paper
published nearest thereto, and after sending such notice to
each shareholder o f record by registered mail at least ten
days prior to said m eeting: Provided, That the capital
stock o f such consolidated association shall not be less

DISSOLUTION AND RECEIVERSHIP.

101

than that required under existing law for the organization
o f a national bank in the place in which it is located:
And provided further, That when such consolidation
shall have been effected and approved by the comptroller
any shareholder o f either o f the associations so consoli
dated who has not voted for such consolidation may give
notice to the directors o f the association in which he is
interested within twenty days from the date o f the cer
tificate o f approval o f the comptroller that he dissents
from the plan o f consolidation as adopted and approved,
whereupon he shall be entitled to receive the value o f the
shares so held by him, to be ascertained by an appraisal
made by a committee o f three persons, one to be selected
by the shareholder, one by the directors, and the third by
the two so chosen; and in case the value so fixed shall not
be satisfactory to the shareholder he may within five days
after being notified o f the appraisal appeal to the Comp
troller o f the Currency, who shall cause a reappraisal to
be made, which shall be final and binding; and if said
reappraisal shall exceed the value fixed by said committee,
the bank shall pay the expenses o f the reappraisal; other
wise the appellant shall pay said expenses, and the value
so ascertained and determined shall be deemed to be a
debt due and be forthwith paid to said shareholder from
said bank, and the share so paid shall be surrendered and
after due notice sold at public auction within thirty days
after the final appraisement provided for in this Act.
Sec. 2. That associations consolidating with another
association under the provisions o f this A ct shall not be
required to deposit lawful money for their outstanding
circulation, but their assets and liabilities shall be re
ported by the association with which they have consoli
dated. A nd all the rights, franchises, and interests o f the
said national bank so consolidated in and to every species
o f property, personal and mixed, and choses in action
thereto belonging, shall be deemed to be transferred to
and vested in such national bank into which it is con
solidated without any deed or other transfer, and the
said consolidated national bank shall hold and enjoy the
same and all rights o f property, franchises, and interests
in the same manner and to the same extent as was held
and enjoyed by the national bank so consolidated there
with.
REASSIGNMENT OF BONDS AND REDEMPTION OF NOTES
OF LIQUIDATING BANKS.

504. Sec. 5224 [as amended 1875].— Whenever a
cUnio6’
cient deposit o f lawful money to redeem the outstanding s e c.’ 42; 13
circulation o f an association proposing to close its busi- stAct LFebn i8,
ness has been made, the bonds deposited by the associa- J|70>gt£ 8£ ;
tion to secure payment o f its notes shall be reassigned to 320. a ’
it, in the manner prescribed by section fifty-one hundred
and sixty-two. A nd thereafter the association and its

102

DISSOLUTION AND RECEIVERSHIP.

shareholders shall stand discharged from all liabilities
upon the circulating notes, and those notes shall be re
deemed at the Treasury o f the United States. A nd if
any such bank shall fail to make the deposit and take up
its bonds for thirty days after the expiration o f the time
specified, the Comptroller o f the Currency shall have
power to sell the bonds pledged fo r the circulation o f
said bank, at public auction in New Y ork City, and, after
providing fo r the redemption and cancellation o f said
circulation and the necessary expenses o f the sale, to
pay over any balance remaining to the bank or its legal
represci tatives.
DUTY OF TREASURER, ASSISTANT TREASURERS, ETC., TO
RETURN NOTES OF FAILED OR LIQUIDATING BANKS TO
TREASURY FOR REDEMPTION. ACT JUNE 20, 1874.
1874,* Jcune343, 505. Sec, 8.— * * * A nd it shall be the duty o f the
Ia?*12b.*8 ^tat*Treasurer, assistant treasurers, designated depositaries,
and national bank depositaries o f the United States
* * * to assort and return to the Treasury fo r re
demption the notes o f such national banks as have failed,
or gone into voluntary liquidation fo r the purpose o f
w inding up their affairs, and o f such as shall hereafter so
fail or go into liquidation.

DESTRUCTION OF REDEEMED NOTES.
1864* cUD106; 506. Sec. 5225 [as amended 1877] .— Whenever the Treasitat' L * \i2 * urer has redeemed any o f the notes o f an association
Act. Feb. 27, which has commenced to close its affairs under the five
stat/ l.,625;219 preceding sections, he shall cause the notes to be mu
tilated and charged to the redemption account o f the
association; and all notes so redeemed by the Treasurer
shall, every three months, be certified to and [ burned]
in the manner prescribed in section fifty-one hundred and
eighty-four.
N ote.— See act of June 23, 1874, following Revised Statutes, sec
tion 5184, directing that bank notes be macerated and not burned.

PROTEST OF BANK CIRCULATION.

507.
Sec. 5226.— Whenever any national banking
cUn106’ ciati°n f a^s to redeem in the lawful money o f the United
s e o.’ 46; li States any o f its circulating notes, upon demand o f paystat. l., ii3. ment duly made during the usual hours o f business, a t‘the
office o f such association, or at its designated place o f re
demption, the holder may cause the same to be protested,
in one package, by a notary public, unless the president or
cashier o f the association whose notes are presented for
payment, \or the president or cashier of the association at
the place at which they are redeemable~\ offers to waive
demand and notice o f the protest, and, in pursuance o f
1864*

DISSOLUTION AND RECEIVERSHIP.

103

such offer, makes, signs, and delivers to the party mak
ing such demand an admission, in writing, stating the
time o f the demand, the amount demanded, and the fact
o f the nonpayment thereof. The notary public, on mak
ing such protest, or upon receiving such admission, shall
forthwith forw ard such admission or notice o f protest to
the Comptroller o f the Currency, retaining a copy there
of. I f, however, satisfactory proof is produced to the
notary public that the payment o f the notes demanded
is restrained by order o f any court o f competent juris
diction, he shall not protest the same. When the holder
o f any notes causes more than one note or package to
be protested on the same day, he shall not receive pay
fo r more than one protest.
N ote .— Circulation redeemable only at Treasury or over own
counter. Designated places of redemption have not existed since
act June 20, 1874. (See note under paragraph 401, ante.)

BONDS FORFEITED IF CIRCULATION IS DISHONORED.
EXAMINATION BY SPECIAL AGENT.

508. Sec. 5227.— On receiving notice that any national 18^
cUne10g*
banking association has failed to redeem any o f its circu- s e c.’ 4 7 ; li
lating notes, as specified in the preceding section, the stat L,> 114,
Comptroller o f the Currency, with the concurrence o f the
Secretary o f the Treasury, may appoint a special agent,
o f whose appointment immediate notice shall be given to
such association, who shall immediately proceed to ascer
tain whether it has refused to pay its circulating notes in
the law ful money o f the United States, when demanded,
and shall report to the Comptroller the fact so ascer
tained. I f, from such protest, and the report so made,
the Comptroller is satisfied that such association has re
fused to pay its circulating notes and is in default, he
shall, within thirty days after he has received notice o f
such failure, declare the bonds deposited by such associa
tion forfeited to the United States, and they shall there
upon be so forfeited.
SUSPENSION OF BUSINESS AFTER DEFAULT.

509. Sec. 5228 [as amended 1875].— A fter a default o n 18^ cUne10;j’
the part o f an association to pay any o f its circulating s e c / 46; l.j
notes has been ascertained by the Comptroller, and notice fit*' Feb. 11ih,
thereof has been given by him to the association, it shall
£• 832;018
not be lawful for the association suffering the same to
pay out any o f its notes, discount any notes or bills, or
otherwise prosecute the business o f banking, except to
receive and safely keep money belonging to it, and to
deliver special deposit^.

104

DISSOLUTION AND RECEIVERSHIP.

NOTICE TO PRESENT CIRCULATION FOR REDEMPTION.
CANCELLATION OF BONDS.
1864,* cUneioi;
®ec# 5229.— Immediately upon declaring the bonds
s e c.’ 4 7 ; 13 o f an association forfeited for nonpayment o f its notes,
stat.
ii4.
Comptroller shall give notice, in such manner as the
Secretary o f the Treasury shall, by general rules or other
wise, direct, to the holders o f the circulating notes o f such
association, to present them fo r payment at the Treasury
o f the United States; and the same shall be paid as pre
sented in law ful money o f the United States, whereupon
the Comptroller may, in his discretion, cancel an amount
o f bonds pledged by such association equal at current
market rates, not exceeding par, to the notes paid.

SALE OF BONDS AT AUCTION.
ING CIRCULATION.

FIRST LIEN FOR REDEEM

Act June 3,
511. Sec. 5230.— Whenever the Comptroller has become
sec6s4’ 47, 4O80; satisfied, by the protest or the waiver and admission
13^ stat. l . , specified in section fifty-two hundred and twenty-six, or
by the report provided for in section fifty-tw o hundred
and twenty-seven, that any association has refused to
pay its circulating notes, he may, instead o f canceling its
tyonds, cause so much o f them as may be necessary to
redeem its outstanding notes to be sold at public auction
in the city o f New York, after giving thirty days’ notice
o f such sale to the association. F or any deficiency in the
proceeds o f all the bonds o f an association, when thus
sold, to reimburse to the United States the amount
expended in paying the circulating notes o f the associa
tion, the United States shall have a paramount lien upon
all its assets; and such deficiency shall be made good out
o f such assets in preference to any and all other claims
whatsoever, except the necessary costs and expenses o f
administering the same.

BONDS MAY BE SOLD AT PRIYATE SALE.
1864*

cuni 06

®ec*

Comptroller may, i f he deems it

s e c/ 4 9 ; 13 for the interest o f the United States, sell at private sale

stat. l „ 114. a
0£ fas bonds o f an association shown to have made
default in paying its notes, and receive therefor either
money or the circulating notes o f the association. But
no such bonds shall be sold by private sale for less than
par, nor fo r less than the market value thereof at the
time o f sale; and no sales o f any such bonds, either public
or private, shall be complete until the transfer o f the
bonds shall have been made with the formalities pre
scribed by sections fifty-one hundred and sixty-two,
fifty-one hundred and sixty-three, and fifty-one hundred
and sixty-four.

DISSOLUTION AND RECEIVERSHIP.

105

DISPOSAL OF REDEEMED NOTES; REGULATIONS TOR
REDEMPTION RECORDS.

513. Sec. 5232.— The Secretary of the Treasury may, lgAct ^une1(3,
from time to time, make such regulations respecting the s e c/ 4 7 ; 1$
disposition to be made o f circulating notes after presen- stat- L*» 114*
tation at the Treasury o f the United States fo r payment,
and respecting the perpetuation o f the evidence o f the
payment thereof, as may seem to him proper.
REDEEMED NOTES TO BE CANCELED.
514. Sec. 5233.— A ll notes o f national banking associa- lgAct June 3,
tions presented at the Treasury o f the United States for s e c.’ 4 7 ; i6d
payment shall, on being paid, be canceled.
stat* L,» 114*

APPOINTMENT AND DUTIES OF RECEIVERS.
515. Sec. 5234. — On becoming satisfied, as specified in lg£ct June10|»
sections fifty-tw o hundred and twenty-six and fifty-two s e c.’ 5 0 ; li
hundred and twenty-seven, that any association has re- stat* L'* 114*
fused to pay its circulating notes as therein mentioned,
and is in default, the Comptroller o f the Currency may
forthwith appoint a receiver, and require o f him such
bond and security as he deems proper. Such receiver,
under the direction o f the Comptroller, shall take pos
session o f the books, records, and assets o f every descrip
tion o f such association, collect all debts, dues, and claims
belonging to it, and, upon the order o f a court o f record
o f competent jurisdiction, may sell or compound all bad
or doubtful debts, and, on a like order, may sell all the
real and personal property o f such association, on such
terms as the court shall direct; and may, if necessary to
pay the debts o f such association, enforce the individual
liability o f the stockholders. Such receiver shall pay
over all money so made to the Treasurer o f the United
States, subject to the order o f the Comptroller, and also
make report to the Comptroller o f all his acts and pro
ceedings. Provided, That the Comptroller may, if he Act May 15,
deems proper, deposit any o f the money so made in any
Stat
regular Government depositary, or in any State or
national bank either o f the city or town in which the
insolvent bank was located, or o f a city or town as adja
cent thereto as practicable; if such deposit is made he
shall require the depositary to deposit United States
bonds or other satisfactory securities with the Treasurer
o f the United States for the safe-keeping and prompt
payment o f the money so deposited. Such depositary
shall pay upon such money interest at such rate as the
Comptroller may prescribe, not less, however, than two
per centum per annum upon the average monthly amount
o f such deposits.
N ote.— Other provisions authorizing the appointment of re
ceivers of national banks and relating to powers and duties of
receivers and agents will be found in the act of June 30, 1876, as

106

DISSOLUTION AND BECEIVERSHIP.
amended August 3, 1892, and March 2, 1897, and the act of March
29, 1886. Both these acts are set forth following section 5238,
Revised Statutes.
A receiver may also be appointed, under the provisions of sec
tion 5234 of the Revised Statutes of the United States, for the
following violations of law:
Where the capital stock of a national bank has not been fully
paid in and it is thus reduced below the legal minimum and
remains so for thirty days. (Sec. 5141, R. S.)
For failure. to make good the lawful money reserve within
thirty days after notice. (Sec. 5191, R. S.)
Where a bank purchases or acquires its own stock to prevent
loss upon a debt previously contracted in good faith, and the same
is not sold or disposed of within six months from the time of its
purchase. (Sec. 5201, R. S.)
For failure to make good any impairment in its capital stock
and refusing to go into liquidation within three months after
receiving notice. (Sec. 5205, R. S.)
For false certification of checks by any officer, clerk, or agent.
(Sec. 5208, R. S.)

NOTICE TO CREDITORS OF INSOLVENT BANKS TO PRE
SENT CLAIMS.

1864* cUni06
®ec<
— ^ e Comptroller shall, upon appoints e c.’ so; 13 ing a receiver, cause notice to be given, by advertisement
stat. l ., 114. j n
newspapers as he may direct, for three consecu
tive months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof.
DIVIDENDS; DISTRIBUTION OF ASSETS OF INSOLVENT
BANKS.

1864^ cUnioi;
®ec* 5236.— From time to time, after fu ll provision
stat *L5^ii413 ^as keen
made for refunding to the United States
a ’ '* * any deficiency in redeeming the notes of such association,
the Comptroller shall make a ratable dividend of the
money so paid over to him by such receiver on all such
claims as may have been proved to his satisfaction or ad
judicated in a court of competent jurisdiction, and, as
the proceeds of the assets of such association are paid
over to him, shall make further dividends on all claims
previously proved or adjudicated; and the remainder of
the proceeds, if any, shall be paid over to the shareholders
of such association or their legal representatives, in pro
portion to the stock by them respectively held.
WHEN BANK MAY ENJOIN FURTHER PROCEEDINGS.

1864* cUneioi’
®ec‘ ®^37.— Whenever an association against which
sec.’ 50; 13 proceedings have been instituted, on account of any alstat. l . , i i 4. Jege(j refusal to redeem its circulating notes as aforesaid,
denies having failed to do so, it may, at any time within
ten days after it has been notified of the appointment of
an agent, as provided in section fifty-two hundred and
twenty-seven, apply to the nearest circuit, or district, or
Territorial court of the United States to enjoin further
proceedings in the premises; and such court, after citing

DISSOLUTION AND RECEIVERSHIP.

107

the Comptroller of the Currency to show cause why fur
ther proceedings should not be enjoined, and after the
decision of the court or finding of a jury that such asso
ciation has not refused to redeem its circulating notes,
when legally presented, in the lawful money of the
United States, shall make an order enjoining the Comp
troller, and any receiver acting under his direction, from
all further proceedings on account of such alleged refusal.
N ote .— See also sections 24, judiciary act passed March 31,1911,
and 736, Revised Statutes, paragraphs 701 and 702, post.

FEES AND EXPENSES.

519. Sec. 5238.— A ll fees for protesting the notes issued £ct June10|’
by any national banking association shall be paid by the s e c.’ 5i ; li
person procuring the protest to be made, and such asso-stat* Li* 115,
ciation shall be liable therefor; but no part of the bonds
deposited by such association shall be applied to the pay
ment of such fees. A ll expenses of any preliminary or
other examinations into the condition of any association
shall be paid by such association. A ll expenses of any
receivership shall be paid out of the assets of such asso
ciation before distribution of the proceeds thereof.
WHEN RECEIVER MAY BE APPOINTED.
1876.

ACT JUNE 80,

520. Section 1.— That whenever any national banking
J<?nei 56|
association shall be dissolved, and its rights, privileges,^. U 19 stat!
and franchises declared forfeited, as prescribed in section **
fifty-two hundred and thirty-nine of the Revised Statutes
of the United States, or whenever any creditor of any
national banking association shall have obtained a judg
ment against it in any court of record, and made appli
cation, accompanied by a certificate from the clerk of the
court stating that such judgment has been rendered and
has remained unpaid for the space of thirty days, or
whenever the Comptroller shall become satisfied of the
insolvency of a national banking association, he may,
after due examination of its affairs, in either case, appoint
a receiver, who shall proceed to close up such association,
and enforce the personal liability of the shareholders, as
provided in section fifty-two hundred and thirty-four of
said statutes.
CREDITOR’S BILL AGAINST SHAREHOLDERS.
80, 1876.

ACT JUNE

521. Sec. 2.— That when any national banking associa- lgAct Jcune1|§»
tion shall have gone into liquidation under the provisions sec. 2; 19 stat!
of section five thousand two hundred and twenty of L,» 63*
said statutes, the individual liability of the shareholders
provided for by section fifty-one hundred and fifty-one
of said statutes may be enforced by any creditor of such
association, by bill in equity, in the nature of a creditor’s

108

DISSOLUTION AND RECEIVERSHIP.

bill, brought by such creditor on behalf of himself and of
all other creditors of the association, against the share
holders thereof , in any court of the United States having
original jurisdiction in equity for the district in which
such association may have been located or established.
APPOINTMENT, QUALIFICATION, AND DUTIES OF SHARE
HOLDERS’ AGENT. ACT JUNE 30, 1876, AS AMENDED
1892, 1897.

1876* JcUneiic
^ec* — ^hat whenever any association shall have
stat! been or shall be placed in the hands of a receiver, as proam ended’ Aug!vide(l
section fifty-two hundred and thirty-four and
itat 18l 2, 3457 °ther sections of the Revised Statutes of the United
a n d j M ar.
2! States, and when, as provided in section fifty-two hunl 8,960<>!9 Stat' dred an(l thirty-six thereof, the Comptroller of the Cur
rency shall have paid to each and every creditor of such
association, not including shareholders who are creditors
of such association, whose claim or claims as such creditor
shall have been proved or allowed as therein prescribed,
the full amount of such claims, and all expenses of the
receivership and the redemption of the circulating notes
of such association shall have been provided for by de
positing lawful money of the United States with the
Treasurer of the United States, the Comptroller of the
Currency shall call a meeting of the shareholders of such
association by giving notice thereof for thirty days in a
newspaper published in the town, city, or county where
the business of such association was carried on, or if no
newspaper is there published, in the newspaper published
nearest thereto. A t such meeting the shareholders shall
determine whether the receiver shall be continued and
shall wind up the affairs of such association, or whether
an agent shall be elected for that purpose, and in so de
termining the said shareholders shall vote by ballot, in
person or by prqxy, each share of stock entitling the
holder to one vote, and the majority of the stock in value
and number of shares shall be necessary to determine
whether the said receiver shall be continued, or whether
an agent shall be elected. In case such majority shall
determine that the said receiver shall be continued, the
said receiver shall thereupon proceed with the execution
of his trust, and shall sell, dispose of, or otherwise collect
the assets of the said association, and shall possess all the
powers and authority, and be subject to all the duties and
liabilities originally conferred or imposed upon him by his
appointment as such receiver, so far as the same remain
applicable. In case the said meeting shall, by the vote
o f a majority of the stock in value and number of shares,
determine that an agent shall be elected, the said meeting
shall thereupon proceed to elect an agent, voting by bal
lot, in person or by proxy, each share of stock entitling
the holder to one vote, and the person who shall receive
votes representing at least a majority of stock in value
sec. 3 ; lb

DISSOLUTION AND RECEIVERSHIP.

and number shall be declared the agent for the purposes
hereinafter provided; and whenever any of the share
holders of the association shall, after the election of such
agent, have executed and filed a bond to the satisfaction
of the Comptroller of the Currency, conditioned for the
payment and discharge in full of each and every claim
that may thereafter be proved and allowed by and before
a competent court, and for the faithful performance of
all and singular the duties of such trust, the Comptroller
and the receiver shall thereupon transfer and deliver to
such agent all the undivided or uncollected or other as
sets of such association then remaining in the hands or
subject to the order and control of said Comptroller and
said receiver, or either of them ; and for this purpose said
Comptroller and said receiver are hereby severally em
powered and directed to execute any deed, assignment,
transfer, or other instrument in writing that may be nec
essary and proper; and upon the execution and delivery
of such instrument to the said agent the said Comptroller
and the said receiver shall by virtue of this act be dis
charged from any and all liabilities to such association
and to each and all the creditors and shareholders thereof.
Upon receiving such deed, assignment, transfer, or
other instrument the person elected such agent shall hold,
control, and dispose of the assets and property of such
association which he may receive under the terms hereof
for the benefit of the shareholders of such association,
and he may, in his own name, or in the name of such
association, sue and be sued and do all other lawful acts
and things necessary to finally settle and distribute the
assets and property in his hands, and may sell, compro
mise, or compound the debts due to such association, with
the consent and approval of the circuit or district court
of the United States for the district where the business of
such association was carried on, and shall at the conclu
sion of his trust render to such district or circuit court a
full account of all his proceedings, receipts, and expendi
tures as such agent, which court shall, upon due notice,
settle and adjust such accounts and discharge said agent
and the sureties upon said bond. And in case any such
agent so elected shall refuse to serve, or die, resign, or
be removed, any shareholder may call a meeting of the
shareholders of such association in the town, city, or vil
lage where the business of the said association was car
ried on, by giving notice thereof for thirty days in a
newspaper published in said town, city, or village, or if
no newspaper is there published, in the newspaper pub
lished nearest thereto, at which meeting the shareholders
shall elect an agent, voting by ballot, in person or by
proxy, each share of stock entitling the holder to one
vote, and when such agent shall have received votes rep
resenting at least a majority of the stock in value and
number of shares, and shall have executed a bond to the

110

DISSOLUTION AND RECEIVERSHIP.

shareholders conditioned for the faithful performance
o f his duties, in the penalty fixed by the shareholders at
said meeting, with two sureties, to be approved by a
judge o f a court o f record, and file said bond in the office
o f the clerk o f a court o f record in the county where the
business o f said association was carried on, he shall have
all the rights, powers, and duties o f the agent first elected
as hereinbefore provided. A t any meeting held as here
inbefore provided administrators or executors o f de
ceased shareholders may act and sign as the decedent
might have done if living, and guardians o f minors and
trustees o f other persons may so act and sign fo r their
ward or wards or cestui que trust. The proceeds o f -the
assets or property o f any such association which may be
undistributed at the time o f such meeting or may be sub
sequently received shall be distributed as follow s:
First. T o pay the expenses o f the execution o f the
trust to the date o f such payment.
Second. T o repay any amount or amounts which have
been paid in by any shareholder or shareholders o f such
association upon and by reason o f any and all assess
ments made upon the stock o f such association by the
order o f the Comptroller o f the Currency in accordance
with the provisions o f the statutes o f the United States;
and
Third. The balance ratably among such stockholders,
in proportion to the number o f shares held and owned by
each. Such distribution shall be made from time to time
as the proceeds shall be received and as shall be deemed
advisable by the said Comptroller or said agent.
N ote .— Other sections of act June 30, 1876:
Section 4 amends Revised Statutes, 5205.
Section 5 relates to counterfeit notes.
Section 6 relates to savings banks and trust companies, organ
ized under act of Congress.

RECEITER MAY PURCHASE PROPERTY TO PROTECT HIS
TRUST. ACT MARCH 29, 1886.

— That whenever the receiver o f any nai ; 24Cstat. L.,tional bank duly appointed by the Comptroller o f the
8#
Currency, and who shall have duly qualified and entered
upon the discharge o f his trust, shall find it in his opinion
necessary, in order to fu lly protect and benefit his said
trust, to the extent o f any and all equities that such trust
may have in any property, real or personal, by reason
o f any bond, mortgage, assignment, or other proper legal
claim attaching thereto, and which said property is to be
sold under any execution, decree o f foreclosure, or proper
order o f any court o f jurisdiction, he may certify the
facts in the case, together with his opinion as to the value
o f the property to be sold, and the value o f the equity his
said trust may have in the same, to the Comptroller o f
the Currency, together with a request for the right and
i 8 8 ? c M2 8 's e c ’

DISSOLUTION AND RECEIVERSHIP.

I ll

authority to use and employ so much of the money of
said trust as may be necessary to purchase such property
at such sale.
APPROVAL OF REQUEST.

ACT MARCH 29, 1386.

524. Sec. 2.— That such request, if approved by the Act. Mar 29,
Comptroller of the Currency, shall be, together with the 28;82kcstat.SLi;
certificate of facts in the case, and his recommendation as 8to the amount of money which, in his judgment, should be
so used and employed, submitted to the Secretary of the
Treasury, and if the same shall likewise be approved by
him, the request shall be by the Comptroller of the Cur
rency allowed, and notice thereof, with copies of the re
quest, certificate of facts, and indorsement of approvals,
shall be filed with the Treasurer of the United States.
PAYMENT.

ACT MARCH 29, 1886.

525. Sec. 3.— That whenever any such request shall be iss^c^l'sec’
allowed as hereinbefore provided, the said Comptroller of 3 ; 24 stat. l.|
the Currency shall be, and is, empowered to draw upon *
and from such funds of any such trust as may be depos
ited with the Treasurer of the United States for the
benefit of the bank in interest, to the amount as may be
recommended and allowed and for the purpose for which
such allowance was made: Provided, however, That all
payments to be made for or on account of the purchase of
any such property and under any such allowance shall be
made by the Comptroller of the Currency direct, with the
approval of the Secretary of the Treasury, for such pur
pose only and in such manner as he may determine and
order.
PENALTY FOR VIOLATION OF THIS TITLE; FORFEITURE
OF CHARTER; INDIVIDUAL LIABILITY OF DIRECTORS.

526. Sec. 5239.— I f -the directors of any national bankcUnioi’
ing association shall knowingly violate, or knowingly s e c.’ 53; li
permit any of the officers, agents, or servants of the asso- stat* L*’ 116‘
ciation to violate any of the provisions of this title, all
the rights, privileges, and franchises of the association
shall be thereby forfeited. Such violation shall, how
ever, be determined and adjudged by a proper circuit,
district, or Territorial court of the United States, in a
suit brought for that purpose by the Comptroller of the
Currency, in his own name, before the association shall be
declared dissolved. And in cases of such violation, every
director who participated in or assented to the same shall
be held liable in his personal and individual capacity for
all damages which the association, its shareholders, or any
other person, shall have sustained in consequence of such
violation.

112

DISSOLUTION AND RECEIVERSHIP.

APPOINTMENT OF EXAMINEES, COMPENSATION.

1864,* c!*n<106* ®^7. Sec. 5240 [as amended 1913].— The Comptroller o f
stat* L^ne 1^ * 10 Currency, with the approval o f the Secretary o f the
Act Feb. 19 , Treasury, shall appoint examiners, who shall examine
stat.’ £, 32b.18 e v e ry member bank at least twice in each calendar year
19i3#
t £ecc-A3.’ and oftener if considered necessary: Provided, however,
38 ’stat.' L.’. T hat the Federal Eeserve Board may authorize exam271*
ination by the State authorities to be accepted in the
case of State banks and trust companies and may at any
time direct the holding of a special examination of
State banks or trust companies that are stockholders in
any Federal reserve bank. The examiner making the
examination of any national bank, or of any other mem
ber bank, shall have power to make a thorough exami
nation of all the affairs of the bank, and in doing so he
shall have power to administer oaths and to examine
any of the officers and agents thereof under oath and
shall make a fu ll and detailed report o f the condition of
said bank to the Comptroller of the Currency.
The Federal Eeserve Board, upon the recommendation
of the Comptroller of the Currency, shall fix the salaries
of all oank examiners and make report thereof to Con
gress. The expense of the examinations herein provided
for shall be assessed by the Comptroller of the Currency
upon the banks examined in proportion to assets or re
sources held by the banks upon the dates of examination
o f the various banks.
In addition to the examinations made and conducted
by the Comptroller of the Currency, every Federal reserve
bank may, with the approval of the Federal reserve agent
or the Federal Eeserve Board, provide for special exami
nation of member banks within its district. The expense
of such examinations shall be borne by the bank ex
amined. Such examinations shall be so conducted as to
inform the Federal reserve bank of the condition of its
member banks and of the lines of credit which are being
extended by them. Every Federal reserve bank shall at
all times furnish to the Federal Eeserve Board such in
formation as may be demanded concerning the condition
of any member bank within the district of the said
Federal reserve bank.
No bank shall be subject to any visitatorial powers
other than such as are authorized by law, or vested in
the courts of justice or such as shall be or shall have
been exercised or directed by Congress, or by either House
thereof or by any committee of Congress or of either
House duly authorized.
The Federal Eeserve Board shall, at least once each
year, order an examination of each Federal reserve bank,
and upon joint application of ten member banks the
Federal Eeserve Board shall order a special examination
and report of the condition of any Federal reserve bank.

DISSOLUTION AND BECEIVEBSHEP.

113

LIMITATION OF YISITORIAL POWEBS.
528. Sec. 5241.— No association shall be subject to any lgAet .TuneQ3,
visitorial powers other than such as are authorized by s e c .’ 5 4 ; 1.4
this Title, or are vested in the courts of justice.
stat L’’ 11G'
N ote .— See also the fourth paragraph in section 5240, im m edi
ately preceding.

TRANSFERS, WHEN YOID; ILLEGAL PREFERENCE OF
CREDITORS.

529. Sec. 5242.— A ll transfers of the notes, bonds, bills lgAct June10|*
of exchange, or other evidences of debt owing to any sec/ 52; li
national bunking association, or of deposits to its credit ; stat- L*» 115*
all assignments of mortgages, sureties on real estate, or
o f judgments or decrees in its favor; all deposits o f
money, bullion, or other valuable thing for its use, or fo r
the use o f any o f its shareholders or creditors; and all
payments o f money to either, made after the commission
o f an act o f insolvency, or in contemplation thereof, made
with a view to prevent the application o f its assets in the
manner prescribed by this chapter, or with a view to the
preference o f one creditor to another, except in payment
o f its circulating notes, shall be utterly null and void ;
and no attachment, injunction or execution, shall be is
sued against such association or its property before final
judgment in any suit, action, or proceeding, in any State,
county, or municipal court.
USE OF THE TITLE “ NATIONAL.”

530. Sec. 5243.— A ll banks not organized and transact- Act Mar. 3,
ing business under the national currency laws, or under geZV, 17 stat!
this Title, and all persons or corporations doing the busi- L-» 603ness o f bankers, brokers, or savings institutions, except
savings banks authorized by Congress to use the word
“ national ” as a part o f their corporate name, are pro
hibited from using the word “ national ” as a portion o f
the name or title o f such bank, corporation, firm, or
partnership; and any violation o f this prohibition com
mitted after the third day o f September, eighteen hun
dred and seventy-three, shall subject the party charge
able therewith tc a penalty o f fifty dollars for each day
during which it is committed or repeated.
164312°—20------8

114

DISSOLUTION AND EECE1VEBSHIP.

FEDERAL RESERVE ACT.

CHAPTER VI.
THE FEDERAL RESERVE ACT.

A s amended by the acts approved August 4 and August 15, 1914,
March 3, 1915, September 7, 1916, June 21, 1917, and March 3,
1919.
600.
601.
602.

Title of act.
Definition of terms.
Federal reserve districts— or
ganization committee.
602a. Authority of committee.
602b. Acceptance of terms of act.
602c. Subscriptions to capital stock.
602d. Responsibility of shareholders.
602e. Failure of national banks to ac
cept terms of act— penalty.
602f. Failure of national banks to
become member banks— pen
alty.
602g. Public subscriptions— when ac
cepted.
6021i. Limit to stock held by any in
dividual copartnership or cor
poration other than a mem
ber bank. Public stock, how
transferable.
602i. Allotment of stock to United
States.
602j. Voting power.
602k. Transfer of stock.
(>021. Minimum capital of Federal re
serve bank.
602m. Reserve cities, status of.
602n. Authority of organization com
mittee to employ assistants.
603. Branches of Federal reserve
banks.
604. Organization of Federal reserve
banks. Application for stock
by national banks.
604a. Organization certificate.
604b. Powers of Federal reserve
banks.
604c. Directors of Federal reserve
banks.
604d. Classification of directors.
604e. Election of class A and class B
directors.
604f. Appointment of class O direc
tors. Federal reserve agent,
duties of.
604g. Compensation of directors.
604h. Organization of Federal reserve
banks. Authority of organi
zation committee.

604i. First meeting of directors. Des
ignation of terms of office.
605. Increase and decrease of capital
stock.
605a. Stock not transferable.
605b. Increase of capital stock.
605c. Applications for capital stock.
603d. Certificate of increase in stock
of Federal reserve bank.
605e. Reduction of capital stock.
606.
Insolvency of member bank.
(KF Division of earnings.
607a. Tax exemptions.
608. Conversion of State banks into
national banks.
609.
State banks may subscribe.
609a. Applications for membership.
G09b. Regulations and restrictions.
609c. Member banks required to make
reports to Federal Reserve
Board and subject to exami
nation by examiners
ap
pointed by the board and such
banks’ officers, agents, and em
ployees subject to penalties of
section 5209.
609d. Failure to comply with regula
tions— penalty.
609e. Withdrawal from membership
in Federal reserve bank by
State bank oi* trust company.
609f. Amount of capital required to
enable State bank to become
member bank.
609g. Rights, powers, and liabilities
of State banks which become
member banks.
610. Appointment, compensation, and
qualification of members of
Federal Reserve Board.
610a. Governor and vice governor;
officers; qualification of mem
bers.
610b. Provision for expenses.
610c. First meeting of board; Secre
tary of Treasury chairman of
board.
117

118

the

federal

610(1. Member of Federal Reserve
Board not to be officer, direc
tor, or stockholder in any
banking institution or trust
company.
610e. Vacancies on board— how filled.
610f. Powers of Secretary of Treas
ury.
610g. Federal Reserve Board to make
annual report to Speaker of
the House of Representatives.
61 Oh. Comptroller of the Currency.
611. Powers of Federal Reserve
Board.
611a. Examination of books of Fed
eral reserve banks and mem
ber banks.
Board may re
quire reports.
611b. Rediscounts.
611c. Suspension of reserve require
ments.
611 d. Issue and retirement of Fed
eral reserve notes.
611e. Reserve cities.
611f. Suspension or removal of offi
cer or director of a Federal
reserve bank.
611 g. Writing off doubtful or worth
less assets.
611h. Suspension of operations of
Federal reserve bank.
611i. Requirement of bonds from
Federal reserve agents and
authority to make necessary
regulations under this act.
611j. General supervision.
611k. Permit to national banks to act
as trustee, executor, admin
istrator, or registrar of stocks
and bonds.
6111. Employment of a t t o r n e y s ,
clerks, etc., and provisions for
payment of salaries.
611m. Discount by Federal reserve
bank of paper secured by
United States bonds issued
since April 24, 1917.
612.
Federal advisory council.
612a. Powers of Federal advisory
council.
613.
P o w e r s of Federal reserve
banks.
613a. Rediscounts— notes, drafts, and
bills of exchange.
613b. Acceptances a n d limitations
thereof.
613c. Exceptions as to limit of indebt
edness. Power to act as in
surance agent, as real-estate
loan broker, and to accept
drafts, etc.
614.
Open-market operations.
615.
Government deposits.
616.
Federal reserve notes author
ized.
616a. Applications for Federal reserve
notes.— Collateral security.

RESERVE ACT.
616b. Reserve requirements for Fed
eral reserve banks.
616c. Issue and redemption of Fed
eral reserve notes. No Fed
eral reserve bank permitted to
pay out notes issued through
another Federal reserve bank.
616d. Deposits of gold with Treasurer
for redemption of Federal re
serve notes.
616e. Federal Reserve Board may
grant or reject application of
Federal reserve bank for Fed
eral reserve notes. Federal
reserve notes first lien on all
the assets of the bank.
*616f. Reduction of note issues.
616g. Substitution of collateral.
616h. Preparation of Federal reserve
notes. Plates and dies to be
under control of Comptroller
of Currency. Where notes are
to be deposited.
616i. Appropriation for expense of
printing national-bank notes
may be used for printing Fed
eral reserve notes.
616j. When Federal reserve bank
shall receive checks and drafts
on deposit at par.
616k. Charges for collection and for
sale of exchange.
6161. Federal Reserve Board may ex
ercise functions of a clearing
house and may require Fed
eral reserve banks to exercise
such functions.
616m. Secretary of the Treasury to re
ceive deposits of gold coin or
gold certificates w i t h t h e
Treasurer or Assistant Treas
urer of the United States when
tendered by any Federal re
serve bank or Federal reserve
agent for credit to its or his
account with the Federal Re
serve Board.
617.
National banks not required to
make deposit of United States
bonds prior to commencement
of business.
618.
Refunding bonds. Retirement
of circulating notes.
618a. P u r c h a s e of United States
bonds by F e d e r a l reserve
banks.
618b. Issue of circulating notes to
Federal reserve banks on se
curity of United States bonds.
Circulating notes so issued
obligations of Federal reserve
bank.
618c. Issue of one-year gold notes and
3 per cent bonds of the United
States in exchange for 2 per
cent United States bonds.

THE FEDERAL RESERVE ACT.
618d. Exchange of 3 per cent bonds
■for one-year gold notes.
619.
Bank reserves. Demand and
time deposits defined. Reserve
requirements, when effective.
619a. Reserve requirements for banks
not in reserve cities.
619b. Reserve requirements for banks
in reserve cities.
619c. Reserve requirements for banks
in central reserve cities.
619d Member bank forbidden to keep
on deposit with nonmember
bank a sum in excess of 10
per cent of its own capital and
surplus or to secure discounts
for nonmember bank.
619e. Withdrawal of reserve by mem
ber bank.
619f. Reserve requirement, how esti
mated.
619g. Reserve requirements for na* tional banks located in Alaska
or o u t s i d e the continental
United States.
620. Redemption fund with Treas
urer not to be counted as re
serve.
621. Bank examinations.
Appoint
ment and powers of examin
ers. Acceptance of reports of
examinations by State au
thority.
621a. Salaries of bank examiners.
621b. Examinations by Federal re
serve bank.
621c. Examinations of Federal re
serve banks.
622a. Member bank can not make loan
or grant a gratuity to any
national bank examiner.
622b. National bank examiner can
not perform any service for
compensation for any bank or

622c.

622d.

622e.

622f.
623.
624.
625.
626.
627.

627a.

628.

119

officer.
Examiner can not
disclose the names of bor
rowers or collateral without
first obtaining written con
sent of Comptroller.
Penalty for officer, director, or
employee of member bank
who receives any commission
or gift In connection with any
loan.
Purchase of securities or prop
erty from one of its directors,
or sales to a director by a
member bank.
Rate of interest paid directors,
officers, or employees not to
exceed that paid to other de
positors.
Penalty for violation of any of
the provisions of section 22
of the Federal reserve act.
Liability of stockholders of na
tional banks.
Loans on real estate.
Foreign branches.
Repeal of provisions of law in
consistent with the provisions
of the Federal reserve act.
Act of May 30, 1908, extended
to June 30, 1915. Reenact
ment of certain sections of
Revised Statutes.
Rate of taxation on circulating
notes secured otherwise than
by bonds of the United
States. When Secretary of
Treasury authorized to sus
pend limitations of act of
May 30, 1908.
Reduction of capital of national
banks.

629.
630.

Invalidation of clause, etc., in
act not to invalidate remain
der of act.
Reservation of right to amend
or repeal.

TITLE OF ACT.

600. Be it enacted by the Senate and House of Representatives of the United States of America in Congresses
assembled, That the short title o f this A ct shall be th e 251,

^ec. 23^
s ta t.' l.|

“ Federal Reserve A ct.”
DEFINITION OF TERMS.

601. Wherever the word “ b an k ” is used in this Act, Act. Dec. 23,
the word shall be held to include State bank, banking 38 stat?' l.!
assogiation, and trust company, except where national251*
banks or fe d e ra l reserve banks are specifically referred to.

120

THE FEDERAL RESERVE ACT.

The terms “ national b a n k ” and * national banking
association ” used in this Act shall be held to be synony
mous and interchangeable. The term “ member ban k ”
shall be held to mean any national bank, State bank, or
bank or trust company which has become a member o f
one o f the reserve banks created by this Act. The term
“ board ” shall be held to mean Federal Eeserve B oa rd ;
the term “ district ” shall be held to mean Federal reserve
district; the term “ reserve ban k ” shall be held to mean
Federal reserve bank.
FEDERAL RESERVE
MITTEE.
Act Dec.
1913, s e c .
38 Stat.
251.

DISTRICTS— ORGANIZATION

COM-

602.
Sec. 2.— A s soon as practicable, the Secretary o f
L.lthe Treasury, the Secretary o f Agriculture and the
Comptroller o f the Currency, acting as “ The Reserve
Bank Organization Committee,” shall designate not less
than eight nor more than twelve cities to be known as
Federal reserve cities, and shall divide the continental
United States,, excluding Alaska, into districts, each dis
trict to contain only one o f such Federal reserve cities.
The determination o f said organization committee shall
not be subject to review except by the Federal Eeserve
Board when organized: Provided, That the districts
shall be apportioned with due regard to the convenience
and customary course o f business and shall not neces
sarily be coterminous with any State or States. The dis
tricts thus created may be readjusted and new districts
may from time to time be created by the Federal Eeserve
Board, not to exceed twelve in all. Such districts shall
be known as Federal reserve districts and may be desig
nated by number. A m ajority o f the organization com
mittee shall constitute a quorum with authority to act.
AUTHORITY OF COMMITTEE.

Act Dec. 23,
3813’stat?’ l/,

252*

602a. Said organization committee shall be authorized
to employ counsel and expert aid, to take testimony, to
send for persons and papers, to administer oaths, and to
make such investigation as may be deemed necessary by
the said committee in determining the reserve districts
and in designating the cities within such districts where
such Federal reserve banks shall be severally located.
The said committee shall supervise the organization in
each o f the cities designated o f a Federal reserve bank,
which shall include in its title the name o f the city in
which it is situated, as “ Federal Eeserve Bank o f
Chicago.”
ACCEPTANCE OF TERMS OF ACT.

Act Dec. 23,
38 13’statc‘
252.
*

602b. Under regulations to be prescribed by the organi-

l ' za^ on committee, every national banking association in
” the United States is hereby required, and every eligible
bank in the United States and every trust company

THE FEDERAL RESERVE ACT.

121

within the District o f Columbia, is hereby authorized to
signify in writing, within sixty days after the passage o f
this act, its acceptance o f the terms and provisions
hereof.
SUBSCRIPTIONS TO CAPITAL STOCK.

602c. When the organization committee shall h a v e ^ c t Dec. 23,
designated the cities in which Federal reserve banks are 38 stat.’ u|
to be organized, and fixed the geographical limits o f the 252*
Federal reserve districts, every national banking asso
ciation within that district shall be required within
thirty days after notice from the organization commit
tee, to subscribe to the capital stock o f such Federal
reserve bank in a sum equal to six per centum o f the
paid-up capital stock and surplus o f such bank, onesixth o f the subscription to be payable on call of the
organization committee or o f the Federal Reserve Board,
one-sixth within three months and one-sixth within six
months thereafter, and the remainder o f the subscrip
tion, or any part thereof, shall be subject to call when
deemed necessary by the Federal Reserve Board, said
payments to be in gold or gold certificates.
RESPONSIBILITY OF SHAREHOLDERS.

602d. The shareholders o f every Federal reserve bank ^ 13 * g|c.‘ 2£\
shall be held individually responsible, equally and ratastat- L »
bly, and not one for another, for all contracts, debts, and
engagements o f such bank to the extent o f the amount
o f their subscriptions to such stock at the par value
thereof in addition to the amount subscribed, whether
such subscriptions have been paid up in whole or in part,
under the provisions o f this Act.
FAILURE OF NATIONAL BANKS TO ACCEPT TERMS OF
ACT— PENALTY.

602e. A ny national bank failing to signify its accept- 19^ t
223:
ance o f the terms o f this A ct within the sixty days afore- 38^ ’s ta t.’ l . !
said, shall cease to act as a reserve agent, upon thirty
days’ notice, to be given within the discretion o f the said
organization committee or o f the Federal Reserve Board.
FAILURE OF NATIONAL BANKS TO BECOME MEMBER
BANKS— PENALTY.

602f. Should any national banking association in the Act Dec. 23,
United States now organized fail within one year after 38 'stat?’ l.;
the passage o f this Act to become a member bank or f a i l 252,
to comply with any o f the provisions o f this A ct appli
cable thereto, all o f the rights, privileges, and franchises
o f such association granted to it under the national-bank
Act, or under the provisions o f this Act, shall be thereby

122

THE FEDERAL RESERVE ACT.

forfeited. A ny noncompliance with or violation o f this
A ct shall, however, be determined and adjudged by any
court o f the United States o f competent jurisdiction in a
suit brought for that purpose in the district or territory
in which such bank is located, under direction o f the
Federal Reserve Board, by the Comptroller o f the Cur
rency in his own name before the association shall be
declared dissolved. In cases o f such noncompliance or
violation, other than the failure to become a member
bank under the provisions o f this A ct, every director
who participated in or assented to the same shall be held
liable in his persona] or individual capacity for all dam
ages which said bank, its shareholders, or any other
person shall have sustained in consequence o f such
violation.
Such dissolution shall not take away or impair any
remedy against such corporation, its stockholders or
officers, fo r any liability or penalty which shall have been
previously incurred.
PUBLIC SUBSCRIPTIONS— WHEN ACCEPTED.
Act Dec.
602g. Should
1913, sec. 223:
38 Stat. l.; o f said Federal
253.

the subscriptions by banks to the stock
reserve banks or any one or more o f them
be, in the judgment o f the organization committee, in
sufficient to provide the amount o f capital required there
for, then and in that event the said organization com
mittee may, under conditions and regulations to be pre
scribed by it, offer to public subscription at par such
an amount o f stock in said Federal reserve banks, or any
one or more o f them, as said committee shall determine,
subject to the same conditions as to payment and stock
liability as provided fo r member banks.

LIMIT TO STOCK HELD BY ANY INDIVIDUAL, COPART
NERSHIP, OR CORPORATION OTHER THAN A MEMBER
BANK. PUBLIC STOCK, HOW TRANSFERABLE.
Act Dec. 23,
602h. No individual, copartnership, or corporation
1913, sec.
L.j other than a member bank o f its district shall be per
38 Stat.
253.
mitted to subscribe fo r or to hold at any time more than

$25,000 par value o f stock in any Federal reserve bank.
Such stock shall be known as public stock and may be
transferred on the books o f the Federal reserve bank by
the chairman o f the board o f directors o f such bank.
ALLOTMENT OF STOCK TO UNITED STATES.
Act Dec. 23:
602i. Should the
1913, sec.
38 Stat. l .; public to the stock
253.

total subscriptions by banks and the
o f said Federal reserve banks, or any
one or more o f them, be, in the judgment o f the organiza
tion committee, insufficient to provide the amount o f
capital required therefor, then and in that event the said
organization committee shall allot to the United States
such an amount o f said stock as said committee shall de-

THE FEDERAL RESERVE ACT.

123

termine. Said United States stock shall be paid for at
par out o f any money in the Treasury not otherwise ap
propriated, and shall be held by the Secretary o f the
Treasury and disposed o f for the benefit o f the United
States in such manner, at such times, and at such price,
not less than par, as the Secretary o f the Treasury shall
determine.
VOTING POWER.

602j. Stock not held by member banks shall not be en- 19^ t Dec. 2^3,
titled to voting power.
38^ stat.' L\
TRANSFER OF STOCK.

602k. The Federal Reserve Board is hereby
Dec- 23:
powered to adopt and promulgate rules and regulations 38 stat.c‘ L\
governing the transfers o f said stock.
253*
MINIMUM CAPITAL OF FEDERAL RESERVE BANK.

6021. No Federal reserve bank shall commence business 19^ ®ec. 2g:
with a subscribed capital less than $4,000,000.
|8^ stat. * l.|
RESERVE CITIES, STATUS OF.

602m. The organization o f reserve districts and Federal
23:
reserve cities shall not be construed as changing the ||3 stat. ’ l.|
present status o f reserve cities and central reserve cities,
except in so far as this A ct changes the amount o f
reserves that may be carried with approved reserve
agents located therein.
AUTHORITY OF ORGANIZATION COMMITTEE TO EMPLOY
ASSISTANTS.

602n. The organization committee shall have power to 19^ct Dec. 2^3,
appoint such assistants and incur such expenses in carry- 38 * stat.* l|
ing out the provisions o f this A ct as it shall deem neces- 253,
sary, and such expenses shall be payable by the Treasurer
o f the United States upon voucher approved by the Secre
tary o f the Treasury, and the sum o f $100,000, or so
much thereof as may be necessary, is hereby appropri
ated, out o f any moneys in the Treasury not otherwise
appropriated, fo r the payment o f such expenses.
BRANCH OFFICES.

BRANCHES OF FEDERAL RESERVE BANKS.

603. Sec. 3.— The Federal Reserve Board may permit or Act Dec. 23,
require any Federal reserve bank to establish branch ss^’stat0, iii
banks within the Federal reserve district in which it i s 253ct June 21
located or within the district o f any Federal reserve bank 19 17 , 'soc. 1 j
which may have been suspended. Such branches, su b- 132, fhap. 32"”

124

THE FEDERAL RESERVE ACT.

ject to such rules and regulations as the Federal Reserve
Board may prescribe, shall be operated under the super
vision o f a board o f directors to consist o f not more than
seven nor less than three directors, o f whom a m ajority
o f one shall be appointed by the Federal reserve bank o f
the district, and the remaining directors by the Federal
Reserve Board. Directors o f branch banks shall hold
office during the pleasure o f the Federal Reserve Board.
FEDERAL RESERVE BANKS.

ORGANIZATION OF FEDERAL RESERVE BANKS.
CATION FOR STOCK BY NATIONAL BANKS.

APPLI-

Act Dec. 23f
604. Sec. 4.— When the organization committee shall
1913, sec.
38 Stat. L.’, have established Federal reserve districts as provided in
254.

section two o f this A ct, a certificate shall be filed with the
Comptroller o f the Currency showing the geographical
limits o f such districts and the Federal reserve city
designated in each o f such districts. The Comptroller o f
the Currency shall thereupon cause to be forwarded to
each national bank located in each district, and to such
other banks declared to be eligible by the organization
committee which may apply therefor, an application
blank in form to be approved by the organization com
mittee, which blank shall contain a resolution to be
adopted by the board o f directors o f each bank executing
such application, authorizing a subscription to the capital
stock o f the Federal reserve bank organizing in that dis
trict in accordance with the provisions o f this Act.
ORGANIZATION CERTIFICATE.

Act Dec.
1913, sec.
38 Stat.
254.

604a. When the minimum amount o f capital stock preL.’, scribed by this A ct for the organization o f any Federal
reserve bank shall have been subscribed and allotted, the
organization committee shall designate any five banks
o f those whose applications have been received, to
execute a certificate o f organization, and thereupon the
banks so designated shall, under their seals, make an
organization certificate which shall specifically state the
name o f such Federal reserve bank, the territorial extent
o f the district over which the operations o f such Federal
reserve bank are to be carried on, the city and State in
which said bank is to be located, the amount o f capital
stock and the number o f shares into which the same is
divided, the name and place o f doing business o f each
bank executing such certificate, and o f all banks which
have subscribed to the capital stock o f such Federal re
serve bank and the number o f shares subscribed by each,
and the fact that the certificate is made to enable those
banks executing same, and all banks which have sub
scribed or may thereafter subscribe to the capital stock
o f such Federal reserve bank, to avail themselves o f the
advantages o f this Act.

THE FEDERAL RESERVE ACT.

125

The said organization certificate shall be acknowl
edged before a judge o f some court o f record or notary
p u blic; and shall be, together with the acknowledgement
thereof, authenticated by the seal o f such court, or no
tary, transmitted to the Comptroller o f the Currency,
who shall file, record and carefully preserve the same in
his office.
POWERS OF FEDERAL RESERYE BANKS.
604b. Upon the filing o f such certificate with the 1QA c t Dec. 23
Comptroller o f the Currency as aforesaid, the said Fed- 38 ’stat?' u\
eral reserve bank shall become a body corporate, and as 254#
such, and in the name designated in such organization
certificate, shall have power—
First. T o adopt and use a corporate seal.
Second. T o have succession fo r a period o f twenty
years from its organization unless it is sooner dissolved
by an A ct o f Congress, or unless its franchise becomes
forfeited by some violation o f law.
Third. T o make contracts.
Fourth. T o sue and be sued, complain and defend, in
any court o f law or equity.
- Fifth. T o appoint by its board o f directors such offi
cers and employees as are not otherwise provided for in
this act, to define their duties, require bonds o f them and
fix the penalty thereof, and to dismiss at pleasure such
officers or employees.
Sixth. T o prescribe by its board o f directors, by-laws,
not inconsistent with law, regulating the manner in
which its general business may be conducted, and the
privileges granted to it by law may be exercised and
enjoyed.
Seventh. T o exercise by its board o f directors, or duly
authorized officers or agents, all powers specifically
granted by the provisions o f this act and such incidental
powers as shall be necessary to carry on the business o f
banking within the limitations prescribed by this act.
Eighth.1 Upon deposit with the Treasurer o f the
United States o f any bonds o f the United States in the
manner provided by existing law relating to national
banks, to receive from the Comptroller o f the Currency
circulating notes in blank, registered and countersigned
as provided by law, equal in amount to the par value o f
the bonds so deposited, such notes to be issued under the
same conditions and provisions o f law as relate to the
issue o f circulating notes o f national banks secured by
bonds o f the United States bearing the circulating priv
ilege, except that the issue o f such notes shall not be
limited to the capital stock o f such Federal reserve bank.
1 See section 18. Also section 5 of act approved Apr. 23, 1918,
authorizing issuance of Federal Reserve Bank notes in any de
nominations (including $1 and $2) against security of United
States certificates of indebtedness.

126

THE FEDERAL RESERVE ACT.

But no Federal reserve bank shall transact any business
except such as is incidental and necessarily preliminary
to its organization until it has been authorized by the
Comptroller o f the Currency to commence business under
the provisions o f this act.
DIRECTORS OF FEDERAL RESERVE BANKS.

604c. Every Federal reserve bank shall be conducted
L ’ im(^er the supervision and control o f a board o f directors.
The board o f directors shall perform the duties usually
appertaining to the office o f directors o f banking associa
tions and all such duties as are prescribed by law.
Said board shall administer the affairs o f said bank
fairly and impartially and without discrimination in
favor o f or against any member bank or banks and shall,
subject to the provisions o f law and the orders o f the
Federal Reserve Board, extend to each member bank
such discounts, advancements and accommodations as
may be safely and reasonably made with due regard for
the claims and demands o f other member banks.

1913 * sec.' 43;
255

Stat’

CLASSIFICATION OF DIRECTORS.
1913* ?ec.' 243;
604d.
38 stat. ’ l .’, inafter

2B5*

Such board o f directors shall be selected as herespecified and shall consist o f nine members, holding office fo r three years, and divided into three classes,
designated as classes A , B, and C.
Class A shall consist o f three members, who shall be
chosen by and be representative o f the stock-holding
banks.
Class B shall consist o f three members, who at the time
o f their election shall be actively engaged in their dis
trict in commerce, agriculture or some other industrial
pursuit.
Class C shall consist o f three members who shall be
designated by the Federal Reserve Board. W hen the
necessary subscriptions to the capital stock have been
obtained for the organization o f any Federal reserve
bank, the Federal Reserve Board shall appoint the class
C directors and shall designate one o f such directors as
chairman o f the board to be selected. Pending the desig
nation o f such chairman, the organization committee
shall exercise the powers and duties appertaining to the
office o f chairman in the organization o f such Federal
reserve bank.
No Senator or Representative in Congress shall be a
member o f the Federal Reserve Board or an officer or a
director o f a Federal reserve bank.
No director o f class B shall be an officer, director, or
employee o f any bank.
No director o f class C shall be an officer, director,
employee, or stockholder o f any bank.

THE FEDERAL RESERVE ACT.

127

ELECTION OF CLASS A AND CLASS B DIRECTORS.

604e. Directors o f class A and class B shall be chosen 19^
243:
in the follow ing m anner:
||6 stat. l .*,
The Federal Reserve Board shall classify the member
banks o f the district into three general groups or divi
sions, designating each group by number. Each group
shall consist as nearly as may be o f banks o f similar
capitalization. Each member bank shall be permitted to Act gept 2e,
nominate to the chairman o f the board o f directors o f 1918«
the Federal reserve bank o f the district one candidate for
director o f class A and one candidate for director o f class
B. The candidates so nominated shall be listed by the
chairman, indicating by whom nominated, and a copy o f
said list shall, within fifteen days after its completion, be
furnished by the chairman to each member bank. Each
member bank by a resolution o f the board or by an
amendment to its by-laws shall authorize its president,
cashier, or some other officer to cast the vote o f the mem
ber bank in the elections o f class A and class B directors.
W ithin fifteen days after receipt o f the list o f candi
dates the duly authorized officer o f a member bank shall
certify to the chairman his first, second, and other choices
fo r director o f class A and class B, respectively, upon
a preferential ballot upon a form furnished by the chair
man o f the board o f directors o f the Federal reserve
bank o f the district. Each such officer shall make a
cross opposite the name o f the first, second, and other
choices for a director o f class A and for a director o f
class B, but shall not vote more than one choice for any
one candidate. No officer or director o f a member bank
shall be eligible to serve as a class A director unless nomi
nated and elected by banks which are members o f the
same group as the member bank o f which he is an officer
or director.
A n y person who is an officer or director o f more than
one member bank shall not be eligible fo r nomination as
a class A director except by banks in the same group as
the bank having the largest aggregate resources o f any
o f those o f which such person is an officer or director.
A n y candidate having a m ajority o f all votes cast in
the column o f first choice shall be declared elected. I f
no candidate have a majority o f all the votes in the first
column, then there •shall be added together the votes
cast by the electors fo r such candidates in the second col
umn and the votes cast fo r the several candidates in the
first column. I f any candidate then have a m ajority o f
the electors voting, by adding together the first and
second choices, he shall be declared elected. I f no can
didate have a m ajority o f electors voting when the first
and second choices shall have been added, then the votes
cast in the third column for other choices shall be added
together in like manner, and the candidate then having

128

THE FEDERAL RESERVE ACT.

the highest number o f votes shall be declared elected.
A n immediate report o f election shall be declared.
APPOINTMENT OF CLASS C DIRECTORS.
SERVE AGENTS, DUTIES OF.

FEDERAL RE’

1913!

?lc.’ 43; 604f. Class C directors shall be appointed by the FedStat‘ L*’ eral R eserve Board. They shall have been for at least
two years residents o f the district for which they are ap
pointed, one o f whom shall be designated by said board
as chairman o f the board o f directors o f the Federal rem'Tsec11! 21’ serve bank and as ‘ Federal reserve agent.’ H e shall be a
person o f tested banking experience, and in addition to
his duties as chairman o f the board o f directors o f the
Federal reserve bank he shall be required to maintain,
under regulations to be established by the Federal E e
serve Board, a local office o f said board on the premises
o f the Federal reserve bank. He shall make regular re
ports to the Federal Eeserve Board and shall act as its
official representative for the performance o f the func
tions conferred upon it by this act. He shall receive an
annual compensation to be fixed by the Federal Eeserve
Board and paid monthly by the Federal reserve bank to
which he is designated. One o f the directors o f class C
shall be appointed by the Federal Eeserve Board as
deputy chairman to exercise the powers o f the chairman
o f the board when necessary. In case o f the absence o f
the chairman and deputy chairman, the third-class C
director shall preside at meetings o f the board.
Subject to the approval o f the Federal Eeserve Board,
the Federal reserve agent shall appoint one or more, as
sistants. Such assistants, who shall be persons o f tested
banking experience, shall assist the Federal reserve agent
in the performance o f his duties and shall also have
power to act in his name and stead during his absence or
disability. The Federal Eeserve Board shall require
such bonds o f the assistant Federal reserve agents as it
may deem necessary fo r the protection o f the United
States. Assistants to the Federal reserve agent shall re
ceive an annual compensation, to be fixed and paid in
the same manner as that o f the Federal reserve agent.

2I0

COMPENSATION OF DIRECTORS.

604ff. Directors o f Federal reserve
banks
shall receive,
S6C
4'
•
T
•
• T T
’stat.* L.’, in addition to any compensation otherwise provided, a
257,
reasonable allowance fo r necessary expenses in attend
ing meetings o f their respective boards, which amount
shall be paid by the respective Federal reserve banks.
A n y compensation that may be provided by boards o f
directors o f Federal reserve banks fo r directors, officers
or employees shall be subject to the approval -of the Fed
eral Eeserve Board.
Act Dec. 23

19 13

129

THE FEDERAL RESERVE ACT.

ORGANIZATION OF FEDERAL RESERVE BANKS.
THORITY OF ORGANIZATION COMMITTEE.

604h. The Reserve Bank Organization Committee may,
^ec. 2*\
in organizing Federal reserve banks, call such meetings 38 fetat. ‘ u\
o f bank directors in the several districts as may be neces
sary to carry out the purposes o f this Act, and may
exercise the functions herein conferred upon the chair
man o f the board o f directors o f each Federal reserve
bank pending the complete organization o f such bank.
FIRST MEETING OF
TERMS OF OFFICE.

DIRECTORS.

DESIGNATION

604i. A t the first meeting o f the full board o f directors lgAct Dec. 23,
o f each Federal reserve bank, it shall be the duty o f the 38 ’stat?* L.J
directors o f classes A , B and C, respectively, to designate 257#
one o f the members o f each class whose term o f office
shall expire in one year from the first o f January nearest
the date o f such meeting, one whose term o f office shall
expire at the end o f two years from said date, and one
whose term o f office shall expire at the end o f three years
from said date. Thereafter every director o f a Federal
reserve bank chosen as hereinbefore provided shall hold
office fo r a term o f three years. Vacancies that may
occur in the several classes o f directors o f Federal reserve
banks may be filled in the manner provided for the origi
nal selection o f such directors, such appointees to hold
office fo r the unexpired terms o f their predecessors.
STOCK ISSUES; INCREASE AND DECREASE OF CAPITAL.

INCREASE AND DECREASE OF CAPITAL STOCK.

605. Sec. 5.— The capital stock o f each Federal reserve
253:
bank shall be divided into shares o f $100 each. The out- 38^ stat.* L.I
standing capital stock shall be increased from time to 0 ’
time as member banks increase their capital stock and
surplus or as additional banks become members, and may
be decreased as member banks reduce their capital stock
or surplus or cease to be members.
STOCK NOT TRANSFERABLE.

605a. Shares o f the capital stock o f Federal reserve 19Act Dec.
banks owned by member banks shall not be transferred 38 stat°‘
or hypothecated.
257-

23,
l .;,

INCREASE OF CAPITAL STOCK.

605b. When a member bank increases its capital stock 19^gt Dec. 23,
or surplus, it shall thereupon subscribe for an additional 38 ’stat0* l .!
amount o f capital stock o f the Federal reserve bank o f 257#
its district equal to six per centum o f the said increase,
one-half o f said subscription to be paid in the manner
hereinbefore provided fo r original subscription, and oneh alf subject to call o f the Federal Eeserve Board.
164312°— 20------ 9

130

THE FEDERAL RESERVE ACT.

APPLICATIONS FOR CAPITAL STOCK.
Act Dec.
1913, sec.
38 Stat.
257.

2^3, 605c. A bank applying for stock in a Federal reserve
l.| bank at any time after the organization thereof must sub
scribe fo r an amount o f the capital stock o f the Federal
reserve bank equal to six per centum o f the paid-up capi
tal stock and surplus o f said applicant bank, paying
therefor its par value plus one-half o f one per centum
a month from the period o f the last dividend.
CERTIFICATE OF INCREASE IN STOCK OF FEDERAL RE
SERYE BANK.

Act Dec.
1913, sec.
38 Stat.
257.

253»
l .’,

605d. When the capital stock o f any Federal reserve
bank shall have been increased either on account o f the
increase o f capital stock o f member banks or on account
o f the increase in the number o f member banks, the board
o f directors shall cause to be executed a certificate to the
Comptroller o f the Currency showing the increase in
capital stock, the amount paid in, and by whom paid.
REDUCTION OF CAPITAL STOCK.

Act Dec.
1913, sec.
38 Stat.
257.

2g3:
l /,

605e. When a member bank reduces its capital stock it
shall surrender a proportionate amount o f its holdings
in the capital o f said Federal reserve bank, and when a
member bank voluntarily liquidates it shall surrender all
o f its holdings o f the capital stock o f said Federal reserve
bank and be released from its stock subscription not pre
viously called. In either case the shares surrendered
shall be canceled and the member bank shall receive in
payment therefor, under regulations to be prescribed by
the Federal Eeserve Board, a sum equal to its cash-paid
subscriptions on the shares surrendered and one-half o f
one per centum a month from the period o f the last divi
dend, not to exceed the book value thereof, less any lia
bility o f such member bank to the Federal reserve bank.
INSOLYENCY OF MEMBER BANK.

Act Dec. 23,
1913, sec.
38 Stat. L.j
258.

606. Sec. 6.— I f any member bank shall be declared insolvent and a receiver appointed therefor, the stock held
by it in said Federal reserve bank shall be canceled, with
out impairment o f its liability, and all cash-paid sub
scriptions on said stock, with one-half o f one per centum
per month from the period o f last dividend, not to ex
ceed the book value thereof, shall be first applied to all
debts o f the insolvent member bank to the Federal re
serve bank, and the balance, if any, shall be paid to the
receiver o f the insolvent bank. Whenever the capital
stock o f a Federal reserve bank is reduced, either on ac
count o f a reduction in capital stock o f any member bank
or o f the liquidation or insolvency o f such bank, the
board o f directors shall cause to be executed a certificate
to the Comptroller o f the Currency showing such reduc
tion o f capital stock and the amount repaid to such bank.

THE FEDERAL RESERVE ACT.

131

DIVISION OF EARNINGS.

607. Sec. 7.— A fter all necessary expenses o f a Federal 19^jt ^ec. 2^3,
reserve bank have been paid or provided for, the stock- 38 statc' l.\
holders shall be entitled to receive an annual dividend o f 258’
six per centum on the paid-in capital stock, which divi
dend shall be cumulative.
A fter the aforesaid dividend claims have been fully 19^ Mar# 3»
met, the net earnings shall be paid to the United States
as a franchise tax except that the whole o f such net
earnings, including those for the year ending December
thirty-first, nineteen hundred and eighteen, shall be paid
into a surplus fund until it shall amount to one hundred
per centum o f the subscribed capital stock o f such bank,
and that thereafter ten per centum o f such earnings shall
be paid into the surplus.
The net earnings derived by the United States from
Federal reserve banks shall, in the discretion o f the Secre
tary, be used to supplement the gold reserve held against
outstanding United States notes, or shall be applied to
the reduction o f the outstanding bonded indebtedness o f
the United States under regulations to be prescribed by
the Secretary o f the Treasury. Should a Federal reserve
bank be dissolved or go into liquidation, any surplus re
maining, after the payment o f all debts, dividend require
ments as hereinbefore provided, and the par value o f the
stock, shall be paid to and become the property o f the
United States and shall be similarly applied.
TAX EXEMPTIONS.

607a. Federal reserve banks, including the capital stock 19^ t Dec.
and surplus therein, and the income derived therefrom 38 ’stat.’
shall be exempt from Federal, State, and local taxation,258,
except taxes upon real estate.

23,
l .)

CONVERSION OF STATE BANKS INTO NATIONAL BANKS.

608. Sec. 8.— Section fifty-one hundred and fifty-four, lg^|t ^un^0|»
United States Revised Statutes, is hereby amended to sec. ’ 44; 13
read as fo llo w s:
StActLDec.1223,
A ny bank incorporated by special law o f any State or 3sls’st2Sf" l.;
o f the United States or organized under the general laws 258.
o f any State or o f the United States and having an unim
paired capital sufficient to entitle it to becpme a national
banking association under the provisions o f the existing
laws may, v y the vote o f the shareholders owning not less
than fifty-one per centum o f the capital stock o f such
bank or banking association, with the approval o f tho
Comptroller o f the Currency be converted into a national
banking association, with any name approved by the
Comptroller o f the Currency: Provided, however, That

132

THE FEDERAL RESERVE ACT.

said conversion shall not be in contravention o f the State
law. In such case the articles o f association and organi
zation certificate may be executed by a m ajority o f the
directors o f the bank or banking institution, and the cer
tificate shall declare that the owners o f fifty-one per
centum o f the capital stock have authorized the directors
to make such certificate and to change or convert the
bank or banking institution into a national association.
A m ajority o f the directors, after executing the articles o f
association and the organization certificate, shall have
ower to execute all other papers and to do whatever may
e required to make its organization perfect and com
plete as a national association. The shares o f any such
bank may continue to be for the same amount each as they
were before the conversion, and the directors may con
tinue to be the directors o f the association until others are
elected or appointed in accordance with the provisions o f
the statutes o f the United States. When the Comptroller
has given to such bank or banking association a certificate
that the provisions o f this A ct have been complied with,
such bank or banking association, and all its stockholders,
officers, and employees, shall have the same powers and
privileges, and shall be subject to the same duties, lia
bilities, and regulations, in all respects, as shall have
been prescribed by the Federal Reserve A ct and by the
national banking A ct for associations originally organized
as national banking associations.

STATE RANKS AS MEMBERS.

STATE BANKS MAT SUBSCRIBE.
Act Dec. 23,
609. Sec. 9.— A n y bank incorporated by special law o f
3813,statc* ujany State, or organized under the general laws o f any
25Act June 21 State or 0;f the United States, desiring to become a mem1917 , sec. 3 •ber o f the Federal Reserve System, may make application
232. Stat* Lmto the Federal Reserve Board, under such rules and regu
lations as it may prescribe, for the right to subscribe to
the stock o f the Federal reserve bank organized within
the district in which the applying bank is located. Such
application shall be fo r the same amount o f stock that
the applying bank would be required to subscribe to as
a national bank. The Federal Reserve Board, subject
to such conditions as it may prescribe, may permit the
applying bank to become a stockholder o f such Federal
reserve bank.

APPLICATIONS FOR MEMBERSHIP.
1913*seceC9 233£
609a.
stat.* L .,' 259. Reserve

acting upon such applications the Federal
Board shall consider the financial condition o f
1917* sec?e321, the applying bank, the general character o f its manage
ment, and whether or not the corporate powers exercised
are consistent with the purposes o f this act.

THE FEDERAL RESERVE ACT.

133

Whenever the Federal Reserve Board shall permit
the applying bank to become a stockholder in the Fed
eral reserve bank o f the district its stock subscription
shall be payable on call o f the Federal Reserve Board,
and stock issued to it shall be held subject to the pro
visions o f this act.
REGULATIONS AND RESTRICTIONS.

609b. A ll banks admitted to membership under authority o f this section shall be required to comply with the stat.* l 8,c'259.
reserve and capital requirements o f this act and to con
form to those provisions o f law imposed on national 19i 7 *Sec.n! . 21,
banks which prohibit such banks from lending on or
purchasing their own stock, which relate to the with
drawal or impairment o f their capital stock, and which
relates to the payment o f unearned dividends.
MEMBER BANKS REQUIRED TO MAKE REPORTS TO FEDERAL RESERVE BOARD AND SUBJECT TO EXAMINA
TION BY EXAMINERS APPOINTED BY THE BOARD AND
SUCH BANKS’ OFFICERS, AGENTS, AND EMPLOYEES
SUBJECT TO PENALTIES OF SECTION 5200.

609c. Such banks and the officers, agents, and employees 19^jjt Dec. 2^3,
thereof shall also be subject to the provisions o f and t o 38 stat.’ l.’,
the penalties prescribed by section fifty-two hundred and 260,
nine o f the Revised Statutes, and shall be required to Act June 21
make reports o f condition and o f the payment o f d iv i- 1917, sec. 3. '
dends to the Federal reserve bank o f which they become
a member. Not less than three o f such reports shall be
made annually on call o f the Federal reserve bank on
dates to be fixed by the Federal Reserve Board. Failure
to make such reports within ten days after the date they
are called for shall subject the offending bank to a penalty
o f $100 a day for each day that it fails to transmit such
report; such penalty to be collected by the Federal re
serve bank by suit or otherwise.
As a condition o f membership such banks shall like
wise be subject to examinations made by direction o f the
Federal Reserve Board or o f the Federal reserve bank by
examiners selected or approved by the Federal Reserve
Board.
Whenever the directors o f the Federal reserve bank
shall approve the examinations made by the State
authorities, such examinations and the reports thereof
may be accepted in lieu o f examinations made by exam
iners selected or approved by the Federal Reserve B oard:
Provided, however, That when it deems it necessary the
board may order special examinations by examiners o f its
own selection and shall in all cases approve the form o f the
report. The expenses o f all examinations, other than
those made by State authorities, shall be assessed against
and paid by the banks examined.

134

THE FEDERAL RESERVE ACT.

FAILURE TO COMPLY WITH REGULATIONS— PENALTY.
Act Dec. 23,
609d. I f at any time it shall appear to the Federal Re1913, sec.
38 Stat. L .’, serve Board that a member bank has failed to com ply
260.
with the provisions o f this section or the regulations o f
Act June 21>the Federal Reserve Board
1917, sec. 2 ’ shall be within the power o f

made pursuant thereto, it
the board after hearing to
require such bank to surrender its stock in the Federal
reserve bank and to forfeit all rights and privileges o f
membership. The Federal Reserve Board may restore
membership upon due p roof o f compliance with the con
ditions imposed by this section.

WITHDRAWAL FROM MEMBERSHIP IN FEDERAL RE
SERVE BANK BY STATE BANK OR TRUST COMPANY.
Act June
1917, sec. 3 21»

609e. A n y State bank or trust company desiring to
withdraw from membership in a Federal reserve, bank
may do so, after six months’ written notice shali have
been filed with the Federal Reserve Board, upon the sur
render and cancellation o f all o f its holdings o f capital
stock in the Federal reserve bank: Provided, however,
That no Federal reserve bank shall, except under express
authority o f the Federal Reserve Board, cancel within the
same calendar year more than twenty-five per centum o f
its capital stock for the purpose o f effecting voluntary
withdrawals during that year. A ll such applications
shall be dealt with in the order in which they are filed
with the board. Whenever a member bank shall surrender
its stock holdings in a Federal reserve bank, or shall be
ordered to do so by the Federal Reserve Board, under
authority o f law, all o f its rights and privileges as a
member bank shall thereupon cease and determine, and
after due provision has been made for any indebtedness
due or to become due to the Federal reserve bank it shall
be entitled to a refund o f its cash paid subscription with
interest at the rate o f one-half o f one per centum per
month from date o f last dividend, if earned, the amount
refunded in no event to exceed the book value o f the stock
at that time, and shall likewise be entitled to repayment
o f deposits and o f any other balance due from the Fed
eral reserve bank.

AMOUNT OF CAPITAL REQUIRED TO ENABLE STATE
BANK TO BECOME MEMBER BANK.
Act Dec. 23,
6O0f. No applying bank shall be admitted to member1913, sec.
38 Stat. l/, ship in a Federal reserve bank unless it possesses a paid259.
Act June 21 up, unimpaired capital sufficient to entitle it to become a
1917, sec. < *national banking association in the place where it is situ

ated under the provisions o f the national-bank act.

THE FEDERAL RESERVE ACT.

RIGHTS, POWERS, AND LIABILITIES OF STATE BANKS
WHICH BECOME MEMBER BANKS.

609g. Banks becoming members o f the Federal Reserve
System under authority o f this section shall be subject
to the provisions o f this section and to those o f this
act which relate specifically to member banks, but shall
not be subject to examination under the provisions o f the
first two paragraphs o f section fifty-two hundred and
forty o f the Revised Statutes as amended by scction
twenty-one o f this act.1 Subject to the provisions o f this
act and to the regulations o f the board made pursuant
thereto, any bank becoming a member o f tho Federal
Reserve System shall retain its full charter and statutory
rights as a State bank or trust company, and may con
tinue to exercise all corporate powers granted it by the
State in which it was created, and shall be entitled to all
privileges o f member banks: Provided, however, That no
Federal reserve bank shall be permitted to discount for
any State bank or trust company notes, drafts, or bills o f
exchange o f any one borrower who is liable for borrowed
money to such State bank or trust company in an amount
greater than ten per centum o f the capital and surplus o f
such State bank or trust company, but the discount of
bills o f exchange drawn against actually existing value
and the discount o f commercial or business paper actually
owned by the person negotiating the same shall not be
considered as borrowed money within the meaning o f this
section. The Federal reserve bank, as a condition o f the
discount o f notes, drafts, and bills of exchange for such
State bank or trust company, shall require a certificate or
guaranty to the effect that the borrower is not liable to
such bank in excess o f the amount provided by this sec
tion, and will not be permitted to become liable in excess
o f this amount while such notes, drafts, or bills o f ex
change are under discount with the Federal reserve bank.
It shall be unlawful for any officer, clerk, or agent of
any bank admitted to membership under authority of this
section to certify any check drawn upon such bank unless
the person or company drawing the check has on deposit
therewith at the time such check is certified an amount o f
money equal to the amount specified in such check. A ny
check so certified by duly authorized officers shall be a
good and valid obligation against such bank, but the act
of any such officer, clerk, or agent in violation of this
section may subject such bank to a forfeiture o f its mem
bership in the Federal Reserve System upon hearing by
the Federal Reserve Board.
1Amending section 21

o£ this

act.

135

136

THE FEDERAL RESERVE ACT.
F

ederal

eserve

oard.

APPOINTMENT, COMPENSATION, AND QUALIFICATION
OF MEMBERS OF FEDERAL RESERVE BOARD.

loisf sDecC* io3;
^ Federal Eeserve Board is hereby cre38 stat.* L.lated which shall consist o f seven members, including
260,
the Secretary o f the Treasury and the Comptroller o f the
Currency, who shall be members ex officio, and five mem
bers appointed by the President o f the United States, by
and with the advice and consent o f the Senate. In
selecting the five appointive members o f the Federal E e
serve Board, not more than one o f whom shall be selected
from any one Federal reserve district, the President shall
have due regard to a fair representation o f the different
commercial, industrial and geographical divisions o f the
country. The five members o f the Federal Eeserve
Board appointed by the President and confirmed as afore
said shall devote their entire time to the business o f the
Federal Eeserve Board and shall each receive an annual
salary o f $12,000, payable monthly together with actual
necessary traveling expenses, and the Comptroller o f the
Currency, as ex officio member o f the Federal Eeserve
Board, shall, in addition to the salary now paid him as
Comptroller o f the Currency, receive the sum o f $7,000
annually fo r his services as a member o f said board.
Act Mar. 3,
The Secretary o f the Treasury and the Comptroller of
1919#
the Currency shall be ineligible during the time they are
in office and for two years thereafter to hold any office,
position, or employment in any member bank. The ap
pointive members o f the Federal Eeserve Board shall be
ineligible during the time they are in office and for two
years thereafter to hold any office, position, or employ
ment in any member bank, except that this restriction
shall not apply to a member who has served the full term
fo r which he was appointed. O f the five members thus
appointed by the President at least two shall be persons
experienced in banking or finance. One shall be desig
nated by the President to serve for two, one for four, one
fo r six, one for eight, and one fo r ten years, and there
after each member so appointed shall serve for a term
o f ten years unless sooner removed for cause by the Presi
dent.
GOVERNOR AND VICE GOVERNOR; OFFICERS; QUALIFI
CATION OF MEMBERS.
610a. O f the five persons thus appointed, one shall be
L.’, designated by the President as governor and one as vice
governor o f the Federal Eeserve Board. The governor
o f the Federal Eeserve Board, subject to its supervision,
shall be the active executive officer. The Secretary o f

i 9 i 3fc secC* i2<?!

38 'stat
26°*

1 See section ‘5209, Revised Statutes, as amended by act of Sept.
26, 1918 (p. 88 ante), for penalty for false certification of checks
by officers of Federal reserve banks and national banks.

THE FEDERAL RESERVE ACT.

137

the Treasury may assign offices in the Department o f the
Treasury for the use o f the Federal Eeserve Board. Each
member o f the Federal Reserve Board shall within fifteen
days after notice of appointment make and subscribe to
the oath o f office.
PROVISION FOR EXPENSES.

610b. The Federal Reserve Board shall have power to Act Dec. 23,
levy semiannually upon the Federal reserve banks, in pro- 38 13,stSat.’
portion to their capital stock and surplus, an assessment 26i.
sufficient to pay its estimated expenses and the salaries
o f its members and employees for the half year succeed
ing the levying o f such assessment, together with any
deficit carried forw ard from the preceding half year.
FIRST MEETING OF BOARD.
CHAIRMAN OF BOARD.

SECRETARY OF TREASURY

610c. The first meeting o f the Federal Reserve Board Act Dec. 23,
shall be held in Washington, District o f Columbia, as soon 3813’stat "l.’,
as may be after the passage o f this act, at a date to b e 261*
fixed by the Reserve Bank Organization Committee. The
Secretary o f the Treasury shall be ex officio chairman
o f the Federal Reserve Board.
MEMBER OF FEDERAL RESERVE BOARD NOT TO BE
OFFICER, DIRECTOR, OR STOCKHOLDER IN ANY BANK
ING INSTITUTION OR TRUST COMPANY.

610d. No member o f the Federal Reserve Board shall Act Dec.
be an officer or director o f any bank, banking institution, 38 13’stat.c'
trust company, or Federal reserve bank nor hold stock261in any bank, banking institution, or trust com pany; and
before entering upon his duties as a member o f the Fed
eral Reserve Board he shall certify under oath to the
Secretary o f the Treasury that he has complied with this
requirement.

23,
l .’,

VACANCIES ON BOARD— HOW FILLED.

610e. Whenever a vacancy shall occur, other than by Act Dec. 23,
expiration of term, among the five members o f the Federal 3813,stat.’ "l.)
Reserve Board appointed by the President, as above p r o -261vided, a successor shall be appointed by the President,
with the advice and consent o f the Senate, to fill such
vacancy, and when appointed he shall hold office for the
unexpired term o f the member whose place he is selected
to fill.
The President shall have power to fill all vacancies
that may happen on the Federal Reserve Board during
the recess o f the Senate, by granting commissions which
shall expire thirty days after the next session o f the
Senate convenes.
POWERS OF SECRETARY OF TREASURY.

610f. Nothing in this A ct contained shall be construed 19^
as taking away any powers heretofore vested by law in 38 'stat.*
the Secretary o f the Treasury which relate to the super-261,

.’,

138

THE FEDERAL EESERVE ACT.

vision, management, and control o f the Treasury Depart
ment and bureaus under such department, and wherever
any power vested by this A ct in the Federal Eeserve
Board or the Federal reserve agent appears to conflict
with the powers o f the Secretary o f the Treasury, such
powers shall be exercised subject to the supervision and
control o f the Secretary.
FEDERAL RESERVE BOARD TO MAKE ANNUAL REPORT
TO SPEAKER OF THE HOUSE OF REPRESENTATIVES.
Act Dec.
1913, sec.
38 Stat.
261.

610g. The Federal Reserve Board shall annually make
L-’»a full report o f its operations to the Speaker o f the House
o f Representatives, who shall cause the same to be
printed for the information o f the Congress.
COMPTROLLER OF THE CURRENCY.

Act Dec.
610h.
1913, sec. ^o3:
38 Stat.
l.! Revised
261.

Section three hundred and twenty-four o f the
Statutes o f the United States shall be amended
so as to read as follow s: There shall be in the Depart
ment o f the Treasury a bureau charged with the execu
tion o f all laws passed by Congress relating to the issue
and regulation o f national currency secured by United
States bonds and, under the general supervision o f the
Federal Reserve Board, o f all Federal reserve notes, the
chief officer o f which bureau shall be called the Comp
troller o f the Currency and shall perform his duties under
the general directions o f the Secretary o f the Treasury.
POWERS OF FEDERAL RESERVE BOARD.

Act Dec.
1913, sec.
38 Stat.
261.

u;
611. Sec. 11.— The Federal Reserve Board shall be auL-» thorized and em powered:
EXAMINATION OF BOOKS OF FEDERAL RESERVE BANKS
AND MEMBER BANKS BY FEDERAL RESERVE BOARD.
BOARD MAY REQUIRE REPORTS.

Act Dec. 2®:
611a. (a) T o examine at its discretion
1913, sec.
38 Stat. l .’, books and affairs o f each Federal reserve
261.

the accounts,
bank and o f
each member bank and to require such statements and
reports as it may deem necessary. The said board shall
publish once each week a statement showing the condi
tion o f each Federal reserve bank and a consolidated
statement for all Federal reserve banks. Such state
ments shall show in detail the assets and liabilities o f the
Federal reserve banks, single and combined, and shall
furnish full inform ation regarding the character o f the
money held as reserve and the amount, nature and
maturities o f the paper and other investments owned or
held by Federal reserve banks.

139

THE FEDERAL RESERVE ACT.

REDISCOUNTS.

611b. (&) T o permit, or, on the affirmative vote o f a t 19^
least five members o f the Reserve Board to req u ire 38
Federal reserve banks to rediscount the discounted paper
o f other Federal reserve banks at rates o f interest to be
fixed by the Federal Reserve Board.

'stat.

l /,

SUSPENSION OF RESERVE REQUIREMENTS.

611c. (c) T o suspend for a period not exceeding thirty 19^
days, and from time to time to renew such suspension for 38^
periods not exceeding fifteen days, any reserve require
ment specified in this a ct: Provided, That it shall estab
lish a graduated tax upon the amounts by which the
reserve requirements o f this A ct may be permitted to fall
below the level hereinafter specified: And provided fur
ther*, That when the gold reserve held against Federal
reserve notes falls below forty per centum, the Federal
Reserve Board shall establish a graduated tax o f not
more than one per centum per annum upon such defi
ciency until the reserves fall to thirty-two and one-half
per centum, and when said reserve falls below thirty-two
and one-half per centum, a tax at the rate increasingly o f
not less than one and one-half per centum per annum
upon each two and one-half per ctntum or fraction
thereof that such reserve falls below thirty-two and onehalf per centum. The tax shall be paid by the reserve
bank, but the reserve bank shall add an amount equal to
said tax to the rates o f interest and discount fixed by the
Federal Reserve Board.

***•
’stat.

L.*f

ISSUE AND RETIREMENT OF FEDERAL RESERVE NOTES.

611d. (d) To supervise and regulate through the bureau Act Dec.
under the charge o f the Comptroller o f the Currency the 38 1 stat0.’
issue and retirement o f Federal reserve notes, and to pre- 262#
scribe rules and regulations under which such notes may
be delivered by the Comptroller to the Federal reserve
agents applying therefor.

23,
l .’,

RESERVE CITIES.

611e. (e) T o add to the number o f cities classified as 1{Act Dec.
reserve and central reserve cities under existing law in 38 stat.'
which national banking associations are subject to th e 262,
reserve requirements set forth in section twenty o f this
act; or to reclassify existing reserve and central reserve
cities or to terminate their designation as such.

23,
l /,

SUSPENSION OR REMOVAL OF OFFICER OR DIRECTOR
OF A FEDERAL RESERVE BANK.

61 If. ( / ) T o suspend or remove any officer or director Act Dec. 23,
o f any Federal reserve bank, the cause o f such removal 3813,stat.' ^.i
to be forthwith communicated in writing by the F ederal262*
Reserve Board to the removed officer or director and to
said bank.

140

THE FEDERAL RESERVE ACT.

WRITING OFF DOUBTFUL OR WORTHLESS ASSETS.

m i* secC‘ ii;
611g. ( 9 ) T o require the writing off o f doubtful or
38 stat.' l .) worthless assets upon the books and balance sheets o f
262'
Federal reserve banks.
SUSPENSION OF OPERATIONS OF FEDERAL RESERVE
BANK.
1913* ?ecC‘ ii\
61 lh. ( h ) T o suspend, for the violation o f any o f the
38 ’stat.' l.| provisions o f this Act, the operations o f any Federal re262‘
serve bank, to take possession thereof, administer the
same during the period o f suspension, and, when deemed
advisable, to liquidate or reorganize such bank.

REQUIREMENT OF BONDS FROM FEDERAL RESERVE
AGENTS AND AUTHORITY TO MAKE NECESSARY REGU
LATIONS UNDER THIS ACT.

lots* secC* i i : 611i. ( i) T o require bonds o f Federal reserve agents,
38 stat.' l.’ to make regulations for the safeguarding o f all collateral,
262‘
bonds, Federal reserve notes, money or property o f any
kind deposited in the hands o f such agents, and said
board shall perform the duties, functions, or services
specified in this Act, and make all rules and regulations
necessary to enable said board effectively to perform the
same.
GENERAL SUPERVISION.

Ec0, i i 61 lj. (j) T o exercise general supervision over said
38 ’stat.’ l .’, Federal reserve banks.

1913*
262.

PERMIT TO NATIONAL BANKS TO ACT AS TRUSTEE, E X
ECUTOR, ADMINISTRATOR, OR REGISTRAR OF STOCKS
AND BONDS.

i i 1 611k. ( k ) To grant by special permit to national banks
stat! l.) applying therefor, when not in contravention of State or
26l'ct sept. 26, l° cal law5 the right to act as trustee, executor, adminis1913* secC‘

1918.

*trator, registrar of stocks and bonds, guardian of estates,
assignee, receiver, committee of estates of lunatics, or in
any other fiduciary capacity in which State banks, trust
companies, or other corporations which come into com
petition with national banks are permitted to act under
the laws of the State in which the national bank is
located.
Whenever the laws o f such State authorize or permit
the exercise o f any or all o f the foregoing powers by
State banks, trust companies, or other corporations which
compete with national banks, the granting to and the
exercise o f such powers by national banks shall not be
deemed to ba in contravention o f State or local law
within the meaning o f this Act.

National banks exercising any or all of the powers
enumerated in this subsection shall segregate all assets

THE FEDERAL RESERVE ACT.

held in any fiduciary capacity from the general assets o f
the bank and shall keep a separate set o f books and rec
ords showing in proper detail all transactions engaged
in under authority o f this subsection. Such books and
records shall be open to inspection by the State authori
ties to the same extent as the books and records o f cor
porations organized under State law which exercise fidu
ciary powers, but nothing in this A ct shall be construed
as authorizing the State authorities to examine the books,
records, and assets o f the national bank which are not
held in trust under authority o f this subsection.
No national bank shall receive in its trust department
deposits o f current funds subject to check or the deposit
o f checks, drafts, bills o f exchange, or other items for
collection or exchange purposes. Funds deposited or
held in trust by the bank awaiting investment shall be
carried in a separate account and shall not be used by the
bank in the conduct o f its business unless it shall first set
aside in the trust department United States bonds or
other securities approved by the Federal Reserve Board.
In the event o f the failure o f such bank the owners o f
the funds held in trust for investment shall have a lien
on the bonds or other securities so set apart in addition
to their claim against the estate o f the bank.

Whenever the laws of a State require corporations act
ing in a fiduciary capacity, to deposit securities with the
State authorities for the protection of private or court
trusts, national banks so acting shall bo required to make
similar deposits and securities so deposited shall be held
for the protection of private or court trusts, as provided
by the State law.
National banks in such cases shall not be required to
execute the bond usually required o f individuals if State
corporations under similar circumstances are exempt
from this requirement.
National banks shall have power to execute such bond
when so required by the laws o f the State.
In any case in which the laws o f a State require that a
corporation acting as trustee, executor, administrator, or
in any capacity specified in this section, shall take an
oath or make an affidavit, the president, vice president,
cashier, or trust officer o f such national bank may take
the necessary oath or execute the necessary affidavit.
It shall be unlawful for any national banking associa
tion to lend any officer, director, or employee any funds
held in trust under the powers conferred by this section.
A ny officer, director, or employee making such loan, or to
whom such loan is made, may be fined not more than
$5,000, or imprisoned not more than five years, or may
be both fined and imprisoned, in the discretion o f the
court.
In passing upon applications for permission to exercise
the powers enumerated in this subsection, the Federal

142

THE FEDERAL RESERVE ACT.

Reserve Board may take into consideration the amount
o f capital and surplus o f the applying bank, whether or
not such capital and surplus is sufficient under the cir
cumstances o f the case, the needs o f the community to be
served, and any other facts and circumstances that seem
to it proper, and may grant or refuse the application
accordingly: Provided, l h a t no permit shall be issued to
any national banking association having a capital and
surplus less than the capital and surplus required by
State law o f State banks, trust companies, and corpora
tions exercising such powers.
EMPLOYMENT OF ATTORNEYS, CLERKS, ETC., AND PRO
VISION FOR PAYMENT OF SALARIES.
191? secC' n3:
611-1. (I) T o employ such attorneys, experts, assistants,
38 stat0.' l.; clerks, or other employees as may be deemed necessary to
262,
conduct the business o f the board. A ll salaries and fees
shall be fixed in advance by said board and shall be paid
in the same manner as the salaries o f the members o f said
board. A ll such attorneys, experts, assistants, clerks,
and other employees shall be appointed without regard to
the provisions o f the act o f January sixteenth, eighteen
hundred and eighty-three (volume twenty-two. United
States Statutes at Large, page four hundred and three),
and amendments thereto, or any rule or regulation made
in pursuance thereof: Provided, That nothing herein
shall prevent the President from placing said employees
in the classified service.

DISCOUNT BY FEDERAL RESERYE BANK OF PAPER SE
CURED BY UNITED STATES BONDS ISSUED SINCE
AfcRIL 24, 1017.
1919.*

Mar* 3*
(m ) U pon the affirmative vote o f not less than
. five o f its members, the Federal Reserve Board shall have
power to permit Federal reserve banks to discount for any
member bank notes, drafts, or bills, o f exchange bearing
the signature or endorsement o f any one borrower in excess
o f the amount permitted by section nine and section thir
teen o f this act, but in no case to exceed twTenty per
centum o f the member bank’s capital and surplus: Pro
vided, however, That all such notes, drafts, or bills o f
exchange discounted for any member bank in excess o f
the amount permitted under such sections shall be se
cured by not less than a like face amount o f bonds or
notes or the United States issued since A p ril twentyfourth, nineteen hundred and seventeen, or certificates o f
indebtedness o f the United States: Provided further,
That the provisions o f this subsection (m ) shall not be
operative after December thirty-first, nineteen hundred
and twenty.

THE FEDERAL RESERVE ACT.

143

FEDERAL ADVISORY COUNCIL.

612. Sec. 12.— There is hereby created a Federal A d - 19^
223:
visory Council, which shall consist o f as many members 38 stat.* l.*,
as there are Federal reserve districts. Each Federal re- 26 '
serve bank by its board o f directors shall annually select
from its own Federal reserve district one member o f said
council, who shall receive such compensation and allow
ances as may be fixed by his board o f directors subject to
the approval o f the Federal Reserve Board. The meet
ings o f said advisory council shall be held at W ashing
ton, District o f Columbia, at least four times each year,
and o f tenor if called by the Federal Reserve Board. The
council may in addition to the meetings above provided
for hold such other meetings in Washington, District o f
Columbia, or elsewhere, as it may deem necessary, may
select its own officers and adopt its own methods o f pro
cedure, and a majority of its members shall constitute a
quorum for the transaction o f business. Vacancies in the
council shall be filled by the respective reserve banks, and
members selected to fill vacancies, shall serve for the un
expired term.
POWERS OF FEDERAL ADVISORY COUNCIL.

612a. The Federal Advisory Council shall have power, ]0^ct Dec 23,
by itself or through its officers, ( 1 ) to confer directly with :*« 1 stat. l .’,
the Federal Reserve Board on general business condi- 263,
tions; (2) to make oral or written representations con
cerning matters within the jurisdiction o f said board;
(3) to call for information and to make recommendations
in regard to discount rates, rediscount business, note is
sues, reserve conditions in the various districts, the pur
chase and sale o f gold or securities by reserve banks,
open-market operations by said banks, and the general
affairs o f the reserve banking system.
POWERS OF FEDERAL RESERVE BANKS.

613. Sec. 13.— A ny Federal reserve bank may receive 19^ ^5* 233:
from any o f its member banks, and from the United 3»# stat.* l.I
States,1 deposits' o f current funds in lawful money, 26ACt Sept. 7,
national-bank notes, Federal reserve notes, or checks, L91?g239 Stat’
and drafts, payable upon presentation, and also, for Act June 21 ,
collection, maturing notes and bills; or, solely for p u r -1917, sec* 4*
poses o f exchange or o f collection, may receive from
other Federal reserve banks deposits o f current funds in
lawful money, national-bank notes, or checks upon
other Federal reserve banks, and checks and drafts, pay
able upon presentation within its district, and maturing
notes and bills payable within its district; or, solely for
1 Under authority of war finance act, approved Apr. 5, 1918,
as amended by act of Mar. 3, 1919, may receive deposits from War
Finance Corporation.

144

THE FEDERAL RESERVE ACT.

the purposes o f exchange or o f collection, may receive
from any nonmember bank or trust company deposits
o f current funds in lawful money, national-bank notes,
Federal reserve notes, checks and drafts payable upon
presentation, or maturing notes and bills: Provided,
Such nonmember bank or trust company maintains with
the Federal reserve bank o f its district a balance sufficient
to offset the items in transit held for its account by the
Federal reserve bank: Provided, further, That nothing
in this or any other section o f this act shall be construed
as prohibiting a member or nonmember bank from mak
ing reasonable charges, to be determined and regulated
by the Federal Reserve Board, but in no case to exceed
10 cents per $100 or fraction thereof, based on the total
o f checks and drafts presented at any one time, fo r col
lection or payment o f checks and drafts and remission
therefor by exchange or otherwise; but no such charges
shall be made against the Federal reserve banks.
REDISCOUNTS — NOTES, DRAFTS, AND BILLS
CHANGE.

OF EX-

1913*
i33; 813a. U pon the indorsement o f any o f its member
||3 stat L *banks, which shall be deemed a waiver o f demand, notice
Act sept. 7 , and protest by such bank as to its own indorsement exStat*clusively, any Federal reserve bank may discount notes,
drafts, and bills o f exchange arising out o f actual com
mercial transactions; that is, notes, drafts, and bills o f
exchange issued or drawn fo r agricultural, industrial, or
commercial purposes, or the proceeds o f which have been
used, or are to be used, fo r such purposes, the Federal
Reserve Board to have the right to determine or define
the character o f the paper thus eligible for discount,
within the meaning o f this Act. Nothing in this A ct
contained shall be construed to prohibit such notes,
drafts, and bills o f exchange, secured by staple agricul
tural products, or other goods, ware's, or merchandise
from being eligible fo r such discount; but such definition
shall not include notes, drafts, or bills covering merely
investments or issued or drawn fo r the purpose o f carry
ing or trading in stocks, bonds, or other investment
securities, except bonds and notes o f the Government o f
the United States.1 Notes, drafts, and bills admitted to
discount under the terms o f this paragraph must have a
maturity at the time o f discount o f not more than ninety
days, exclusive o f days o f grace: Provided , That notes,
drafts, and bills drawn or issued for agricultural pur
poses or based on live stock and having a maturity not
exceeding six months, exclusive o f days o f grace, may be
discounted in an amount to be limited to a percentage
o f the assets o f the Federal reserve bank, to be ascer
tained and fixed by the Federal Reserve Board.
1 Or bonds of the War Finance Corporation.
Apr. 5, 1918.

See act approved

THE FEDERAL RESERVE ACT.

145

The aggregate o f such notes, drafts, and bills bearing
the signature or indorsement o f any one borrower, whether
a person, company, firm, or corporation, rediscounted fo r
any one bank shall at no time exceed ten per centum o f
the unimpaired capital and surplus o f said bank; but this
restriction shall not apply to the discount o f bills o f ex
change drawn in good faith against actually existing
values.
ACCEPTANCES AND LIMITATIONS THEREOF.

613b. A ny Federal reserve bank may discount accept- Act Dec. a ,
ances o f the kinds hereinafter described, which have a 38 'stat l.S
maturity at the time o f discount o f not more than three 26£-ct Mar 3
months’ sight, exclusive o f days o f grace, and which are
38 stat!
indorsed by at least one member bank.
*Act Sept. 7,
Any member bank may accept drafts or bills o f exStat'
change drawn upon it having not more than six months ^ c t June 21,
sight to run, exclusive o f days o f grace, which grow out
’ 8ec
o f transactions involving the importation or exporta
tion o f g ood s; or which grow out o f transactions involv
ing the domestic shipment o f goods provided shipping
documents conveying or securing title are attached at
the time o f acceptance; or which are secured at the time
o f acceptance by a warehouse receipt or other such
document conveying or securing title covering readily
marketable staples.
No member bank shall accept,
whether in a foreign or domestic transaction, for any
one person, company, firm, or corporation to an amount
equal at any time in the aggregate to more than ten per
centum o f its paid-up and unimpaired capital stock and
surplus, unless the bank is secured either by attached
documents or by some other actual security growing out
o f the same transaction as the acceptance; and no bank
shall accept such bills to an amount equal at any time
in the aggregate to more than one-half o f its paid-up
and unimpaired capital stock and surplus: Provided,
however, That the Federal Reserve Board, under such
general regulations as it may prescribe, which shall
apply to all banks alike regardless o f the amount o f
capital stock and surplus, may authorize any member
bank to accept such bills to an amount not exceeding at
any time in the aggregate one hundred per centum o f
its paid-up and unimpaired capital stock and surplus:
Provided further, That the aggregate o f acceptances
growing out o f domestic transactions shall in no event
exceed fifty per centum o f such capital stock and surplus.
A n y Federal reserve bank may make advances to its
member banks on their promissory notes for a period not
exceeding fifteen days at rates to be established by such
Federal reserve banks, subject to the review and determi
nation o f the Federal Reserve Board, provided such
promissory notes are secured by such notes, drafts, bills
o f exchange, or bankers’ acceptances as are eligible fo r
164312 °—

20 ------- 10

146

THE FEDERAL RESERVE ACT.

rediscount or fo r purchase by Federal reserve banks
under the provisions o f this Act, or by the deposit or
pledge o f bonds or notes o f the United States.1
EXCEPTIONS AS TO LIMIT OF INDEBTEDNESS. POWER
TO ACT AS INSURANCE AGENT, AS REAL ESTATE LOAN
BROKER, AND TO ACCEPT DRAFTS, ETC.
a9Act Dec. 23 ,

613c. Section fifty-two hundred and two o f the Revised
Statutes o f the United States is hereby amended so as to
264*
read as follow s: No national banking association shall at
any time be indebted, or in any way liable, to an amount
exceeding the amount o f its capital stock at such time
actually paid in and remaining undiminished by losses or
otherwise, except on account o f demands o f the nature
fo llo w in g :
First. Notes o f circulation.
Second. Moneys deposited writh or collected by the
association.
Third. Bills o f exchange or drafts drawn against
money actually on deposit to the credit o f the association,
or due thereto.
Fourth. Liabilities to the stockholders o f the associa
tion for dividends and reserve profits.
Fifth. Liabilities incurred under the provisions o f the
Federal reserve A ct.2
1916* 39Pstat!
The discount and rediscount and the purchase and sale
l ., 753.
by any Federal reserve bank o f any bills receivable and
o f domestic and foreign bills o f exchange, and o f accept
ances authorized by this A ct, shall be subject to such
restrictions, limitations, and regulations as may be im
posed by the Federal Reserve Board.
That in addition to the powers now vested by law in
national banking associations organized under the laws
o f the United States any such association located and do
ing business in any place the population o f which does
not exceed five thousand inhabitants, as shown by the last
preceding decennial census, may, under such rules and
regulations as may be prescribed by the Comptroller o f
the Currency, act as the agent for any fire, life, or other
insurance company authorized by the authorities o f the
State in which said bank is located to do business in said
State, by soliciting and selling insurance and collecting
premiums on policies issued by such com pany; and may
receive fo r services so rendered such fees or commissions
as may be agreed upon between the said association and
the insurance company fo r which it may act as agent;
and may also act as the broker or agent for others in
making or procuring loans on real estate located within
38

stat

l .’,

1 Or by bonds and notes of War Finance Corporation. See sec
tion 13, War Finance Corporation Act, approved Apr. 5. 1918.
2 Also liabilities incurred under the provisions of the War
Finance Corporation Act. See section 20, War Finance Corpora
tion Act, approved Apr. 5, 1918.

THE FEDERAL RESERYE ACT.

147

one hundred miles o f the place in which said bank may
be located, receiving for such services a reasonable fee
or commission: Provided, however, That no such bank
shall in any case guarantee either the principal or inter
est o f any such loans or assume or guarantee the payment
o f any premium on insurance policies issued through its
agency by its principal: And provided further, That
the bank shall not guarantee the truth o f any statement
made by an assured in filing his application for insur
ance.
A ny member bank may accept drafts or bills o f ex
change drawn upon it having not more than three months’
sight to run, exclusive o f days o f grace, drawn under
regulations to be prescribed by the Federal Reserve Board
by banks or bankers in foreign countries or dependencies
or insular possessions o f the United States fo r the pur
pose o f furnishing dollar exchange as required by the
usages o f trade in the respective countries, dependencies,
or insular possessions. Such drafts or bills may be ac
quired by Federal reserve banks in such amounts and
subject to such regulations, restrictions, and limitations
as may be prescribed by the Federal Reserve B oard:
Provided, however, That no member bank shall accept
such drafts or bills o f exchange referred to this para
graph for any one bank to an amount exceeding in the
aggregate ten per centum o f the paid-up and unimpaired
capital and surplus
the accepting bank unless the
draft or bill o f exchange is accompanied by documents
conveying or securing title or by some other adequate
security: Provided further, That no member bank shall
accept such drafts or bills in an amount exceeding at any
time the aggregate o f one-half o f its paid-up and unim
paired capital and surplus.
OPEN MARKET OPERATIONS.

614.
Sec. 14.— A ny Federal reserve bank may, under Act Dec. 23,
rules and regulations prescribed by the Federal Reserve 3813’stat.‘
Board, purchase and sell in the open market, at home or 264^
t ^
abroad, either from or to domestic or foreign banks, firms, 1916; 39Pstat!
corporations, or individuals, cable transfers and bankers’ L” 754,
acceptances and bills o f exchange o f the kinds and ma
turities by this A ct made eligible fo r rediscount, with or
without the indorsement o f a member bank.
Every Federal reserve bank shall have power:
(a)
To deal in gold coin and bullion at home or abroad,
to make loans thereon, exchange Federal reserve notes
for gold, gold coin, or gold certificates, and to contract for
loans o f gold coin or bullion, giving therefor, when neces
sary, acceptable security, including the hypothecation o f
United States bonds or other securities which Federal
reserve banks are authorized to h old;

148

THE FEDERAL RESERVE ACT.

(b) T o buy and sell, at home or abroad, bonds and notes
o f the United States, and bills, notes, revenue bonds, and
warrants with a maturity from date o f purchase o f not
exceeding six months, issued in anticipation o f the col
lection o f taxes or in anticipation o f the receipt o f assured
revenues by any State, county, district, political subdivi
sion, or municipality in the continental United States, in
cluding irrigation, drainage and reclamation districts,
such purchases to be made in accordance with rules and
regulations prescribed by the Federal Reserve Board ;
( c) T o purchase from member banks and to sell, with
or without its indorsement, bills o f exchange arising out
o f commercial transactions, as hereinbefore defined;
( d ) T o establish from time to time, subject to review,
and determination o f the Federal Reserve Board, rates
o f discount to be charged by the Federal reserve bank fo r
each class o f paper, which shall be fixed with a view o f
accommodating commerce and business;
Act June 21 ,
( e ) T o establish accounts with other Federal reserve
1917, sec. 6.
banks for exchange purposes and, with the consent or
upon the order and direction o f the Federal Reserve
Board and under regulations to be prescribed by said
board, to open and maintain accounts in foreign coun
tries, appoint correspondents, and establish agencies in
such countries wheresoever it may be deemed best for
the purpose o f purchasing, selling, and collecting bills o f
exchange, and to buy and sell, w ith e r without its indorse
ment, through such correspondents or agencies, bills o f
exchange (or acceptances) arising out o f actual commer
cial transactions which have not more than ninety days
to run, exclusive o f days o f grace, and which bear the
signature o f two or more responsible parties, and, with
the consent o f the Federal Reserve Board, to open and
maintain banking accounts fo r such foreign correspond
ents or agencies. Whenever any such account has been
opened or agency or correspondent has been appointed
by a Federal reserve bank, with the consent o f or under
the order and direction o f the Federal Reserve Board,
any other Federal reserve bank may, with the consent
and approval o f the Federal Reserve Board, be permitted
to carry on or conduct, through the Federal reserve bank
0 7 ning such account or appointing such agency or
correspondent, any transaction authorized by this sec
tion under rules and regulations to be prescribed by the
board
GOVERNMENT DEPOSITS.
i 0Act Dec. 23 ,
615. Sec. 15.— The moneys held in the general fund o f
38 ’stat.* l/, the Treasury, except the five per centum fund for the re265'
demption o f outstanding national-bank notes and the
funds provided in this act fo r the redemption o f Federal
reserve notes may, upon the direction o f the Secretary o f

THE FEDERAL RESERVE ACT.

149

the Treasury, be deposited in Federal reserve banks,
which banks, when required by the Secretary o f the
Treasury, shall act as fiscal agents o f the United States;1
and the revenues o f the Government or any part thereof
may be deposited in such banks, and disbursements may
be made by checks drawn against such deposits.
No public funds o f the Philippine Islands, or o f the
postal savings, or any Government funds, shall be de
posited in the continental United States in any bank not
belonging to the system established by this a c t :2 Pro
vided, however, That nothing in this act shall be con
strued to deny the right o f the Secretary o f the Treasury
to use member banks as depositories.
NOTE ISSUES.

FEDERAL RESERVE NOTES AUTHORIZED.

616. Sec. 16.— Federal reserve notes, to be issued at the 19^
discretion o f the Federal Reserve Board for the purpose 3g ’stat.’ l.;
o f making advances to Federal reserve banks through the “ *
Federal reserve agents as hereinafter set forth and fo r no
other purpose, are hereby authorized. The said notes
shall be obligations o f the United States and shall be re
ceivable by all national and member banks and Federal
reserve banks and for all taxes, customs, and other public
dues. They shall be redeemed in gold on demand at the
Treasury Department o f the United States, in the city o f
Washington, District o f Columbia, or in gold or lawful
money at any Federal reserve bank.
COLLATERAL SECURITY.

APPLICATIONS FOR FEDERAL RESERVE NOTES.

616a. A ny Federal reserve bank may make application 19^ct Dec. 2^3,
to the local Federal reserve agent fo r such amount o f the 38 'stat/ l.;
Federal reserve notes hereinbefore provided for as it may 26 Act Sept. 7 ,
require. Such application shall be accompanied with a J?1^ 39 s*attender to the local Federal reserve agent o f collateral in Act June 21,
amount equal to the sum o f the Federal reserve notes1917, sec> 7*
thus applied fo r and issued pursuant to such application.
The collateral security thus offered shall be notes, drafts,
bills o f exchange, or acceptances acquired under the pro
visions o f section thirteen o f this act, or bills o f exchange
indorsed by a member bank o f any Federal reserve dis1Under War Finance Corporation act approved Apr. 5, 1918, as
amended by act of Mar. 3, 1919, Federal reserve banks may also
act as fiscal agents of the War Finance Corporation.
* Under section 7 of the act approved Apr. 24, 1917, section 8 of
the act approved Sept 24, 1917, and section 8 of the act approved
Apr. 4, 1918, the proceeds of sale of Liberty bonds of the first,
second, and third issues may be deposited in nonmember banks.
The act of May 18, 1916, amending the postal savings act, author
izes the deposit of postal savings funds in nonmember banks.

150

THE FEDERAL RESERVE ACT.

trict and purchased under the provisions o f section fou r
teen o f this act, or bankers’ acceptances purchased under
the provisions o f said section fourteen, or gold or gold
certificates; but in no event shall such collateral security,
whether gold, gold certificates, or eligible paper, be less
than the amount o f Federal reserve notes applied for.1
The Federal reserve agent shall each day notify the F ed
eral Reserve Board o f all issues and withdrawals o f Fed
eral reserve notes to and by the Federal reserve bank to
which he is accredited. The said Federal Reserve Board
may at any time call upon a Federal reserve bank fo r
additional security to protect the Federal reserve notes
issued to it.
RESERVE
BANKS.

REQUIREMENTS

FOR

FEDERAL

RESERVE

1913* secC' iq:
616b. Every Federal reserve bank shall maintain re38 ’stat.* l .) serves in gold or lawful money o f not less than thirty26Act June 2 i, fiye Per centum against its deposits and reserves in gold
1917, sec. 7. ’ o f not less than forty per centum against its Federal re
serve notes in actual circulation: Provided, however,
That when the Federal reserve agent holds gold or gold
certificates as collateral for Federal reserve notes issued
to the bank such gold or gold certificates shall be counted
as part o f the gold reserve which such bank is required
to maintain against its Federal reserve notes in actual
circulation.

ISSUE AND REDEMPTION OF FEDERAL RESERVE NOTES.
NO FEDERAL RESERVE BANK PERMITTED TO PAY OUT
NOTES ISSUED THROUGH ANOTHER FEDERAL RESERVE
BANK.
Act Dec. 23,

616c. Notes so paid out shall bear upon their faces a
distinctive letter and serial number which shall be as26\ct June 21
by the Federal Reserve Board to each Federal
1917, sec. 7. 'reserve bank.
Whenever Federal reserve notes issued
through one Federal reserve bank shall be received by
another Federal reserve bank, they shall be promptly re
turned for credit or redemption to the Federal reserve
bank through which they were originally issued or, upon
direction o f such Federal reserve bank, they shall be fo r
warded direct to the Treasurer o f the United States to be
retired. No Federal reserve bank shall pay out notes
issued through another under penalty o f a tax o f ten per
centum upon the face value o f notes so paid out. Notes
presented for redemption at the Treasury o f the United
States shall be paid out o f the redemption fund and re
turned to the Federal reserve banks through which they
were originally issued, and thereupon such Federal re3813’stat.'

1 Under section 13 of War Finance Corporation act approved
Apr. 5, 1918, notes secured by War Finance Corporation bonds
may be used to same extent as collateral, as notes secured by
United States bonds.

THE FEDERAL RESERVE ACT.

151

serve bank shall, upon demand o f the Secretary o f the
Treasury, reimburse such redemption fund in lawful
money or, if such Federal reserve notes have been re
deemed by the Treasurer in gold or gold certificates, then
such funds shall be reimbursed to the extent deemed
necessary by the Secretary o f the Treasury in gold or
gold certificates, and sucli Federal reserve bank shall, so
long as any o f its Federal reserve notes remain outstand
ing, maintain with the Treasurer in gold an amount suffi
cient in the judgment o f the Secretary to provide for all
redemptions to be made by the Treasurer. Federal re
serve notes received by the Treasurer otherwise than
for redemption may be exchanged for gold out o f the re
demption fund hereinafter provided and returned to the
reserve bank through which they were originally issued,
or they may be returned to such bank for the credit o f
the United States. Federal reserve notes unfit for circu
lation shall be returned by the Federal reserve agents to
the Comptroller o f the Currency for cancellation and
destruction.
DEPOSITS OF GOLD WITH TREASURER FOR REDEMPTION
OF FEDERAL RESERVE NOTES.

616d. The Federal Eeserve Board shall require each ^ jj* ®®cFederal reserve bank to maintain on deposit in the Treas- 38 ’stat.' l . ’,
ury o f the United States a sum in gold sufficient in th e26ict June 21,
judgment o f the Secretary o f the Treasury for the r e -1917» sec- 7demption o f the Federal reserve notes issued to such bank,
but in no event less than five per centum o f the total
amount o f notes issued less the amount o f gold or gold
certificates held by the Federal reserve agent as collateral
security; but such deposit o f gold shall be counted and
included as part o f the forty per centum reserve herein
before required.
FEDERAL RESERVE BOARD MAY GRANT OR REJECT APPLICATION OF FEDERAL RESERVE BANK FOR FED
ERAL RESERVE NOTES. FEDERAL RESERVE NOTES
FIRST LIEN ON ALL THE ASSETS OF THE BANK.

616e. The board shall have the right, acting through 19^<jt Dec. 23,
the Federal reserve agent, to grant in whole or in part, 38 ’stat.' l.|
or to reject entirely the application o f any Federal r e -2GACt June 2i,
serve bank for Federal reserve notes; but to the extent1917* sec- 7*
that such application may be granted the Federal Eeserve
Board shall, through its local Federal reserve agent, sup
ply Federal reserve notes to the banks so applying, and
such bank shall be charged with the amount o f notes
issued to it and shall pay such rate o f interest as may be
established by the Federal Eeserve Board on only that
amount o f such notes which equals the total amount o f
its outstanding Federal reserve notes less the amount o f
gold or gold certificates held by the Federal reserve agent
as collateral security. Federal reserve notes issued to any

152

THE FEDERAL RESERVE ACT.

such bank shall, upon delivery, together with such notes
o f such Federal reserve bank as may be issued under sec
tion eighteen o f this act upon security o f United States
two per centum Government bonds, become a first and
paramount lien on all the assets o f such bank.
SEDUCTION OF NOTE ISSUES.

616f. A n y Federal reserve bank may at any time reduce
liability fo r outstanding Federal reserve notes by
26ict June 21 depositing w*th the Federal reserve agent its Federal re1917, aec?e7. *serve notes, gold, gold certificates, or lawful money o f the
United States. Federal reserve notes so deposited shall
not be reissued, except upon compliance with the condi
tions o f an original issue.
The Federal reserve agent shall hold such gold, gold
certificates, or lawful money available exclusively fo r ex
change fo r the oustanding Federal reserve notes when
offered by the reserve bank o f which he is a director.
Upon the request o f the Secretary o f the Treasury the
Federal Reserve Board shall require the Federal reserve
agent to transmit to the Treasurer o f the United States
so much o f the gold held by him as collateral security fo r
Federal reserve notes as may be required for the exclusive
purpose o f the redemption o f such Federal reserve notes,
but such gold when deposited with the Treasurer shall be
counted and considered as if collateral security on deposit
with the Federal reserve agent.
Act Dec. 23,

38 18’statc.* XL.| its

SUBSTITUTION OF COLLATERAL.

616g. A n y Federal reserve bank may at its discretion
*l ' w^hdraw collateral deposited with the local Federal re" serve agent fo r the protection o f its Federal reserve notes
1917,4 sec?e7.21, issued to it and shall at the same time substitute therefor
other collateral o f equal amount with the approval o f the
Federal reserve agent under regulations to be prescribed
by the Federal Reserve Board. A n y Federal reserve bank
may retire any o f its Federal reserve notes by depositing
them with the Federal reserve agent or with the Treasurer
o f the United States, and such Federal reserve bank shall
thereupon be entitled to receive back the collateral de
posited with the Federal reserve agent for the security o f
such notes. Federal reserve banks shall not be required
to maintain the reserve or the redemption fund hereto
fore provided fo r against Federal reserve notes which
have been retired. Federal reserve notes so deposited
shall not be reissued except upon compliance with the
conditions o f an original issue.
A ll Federal reserve notes and all gold, gold certificates,
and lawful money issued to or deposited with any Fed
eral reserve agent under the provisions o f the Federal re
serve act shall hereafter be held fo r such agent, under
Act Dec. 23,

38 13'stat *
267.
‘

THE FEDERAL RESERVE ACT.

153

such rules and regulations as the Federal Reserve Board
may prescribe, in the joint custody o f himself and the
Federal reserve bank to which he is accredited. Such
agent and such Federal reserve bank shall be jointly
liable fo r the safe-keeping o f such Federal reserve notes,
gold, gold certificates, and lawful money. Nothing
herein contained, however, shall be construed to prohibit
a Federal reserve agent from depositing gold or gold
certificates with the Federal Reserve Board, to be held
by such board subject to his order, or with the Treasurer
0 1 the United States for the purposes authorized by law.
PREPARATION OF FEDERAL RESERVE NOTES. PLATES
AND DIES TO BE UNDER CONTROL OF COMPTROLLER
OF CURRENCY. WHERE NOTES ARE TO BE DEPOSITED.
616h. In order to furnish suitable notes fo r circulation Act Dec. 23,
as Federal reserve notes, the Comptroller o f the Cur- S813pstat/ ^
rency shall, under the direction o f the Secretary o f the 267^ct Se t 26*
Treasury, cause plates and dies to be engraved in the m s fs e c fi *
best manner to guard against counterfeits and fraudu
lent alterations, and shall have printed therefrom and
numbered such quantities o f such notes o f the denomina
tions o f $5, $10, $20, $50, $100, $500, $1,000, $5,000, $10,000,
as may be required to supply the Federal reserve banks.
Such notes shall be in form and tenor as directed by the
Secretary o f the Treasury under the provisions o f this
A ct and shall bear the distinctive numbers o f the several
Federal reserve banks through which they are issued.
W hen such notes have been prepared, they shall be
deposited in the Treasury, or in the subtreasury or mint
o f the United States nearest the place o f business o f each
Federal reserve bank and shall be held for the use o f
such bank subject to the order o f the Comptroller o f the
Currency for their delivery, as provided by this Act.
The plates and dies to be procured by the Comptroller
o f the Currency for the printing o f such circulating
notes shall remain under his control and direction, and
the expenses necessarily incurred in executing the laws
relating to the procuring o f such notes, and all other
expenses incidental to their issue and retirement, shall
be paid by the Federal reserve banks, and the Federal
Reserve Board shall include in its estimate o f expenses
levied against the Federal reserve banks a sufficient
amount to cover the expenses herein provided for.
The examination o f plates, dies, bed pieces, and so
forth, and regulations relating to such examination o f
plates, dies, and so forth, o f national-bank notes provided
for in section fifty-one hundred and seventy-four Revised
Statutes, is hereby extended to include notes herein pro
vided for.

154

THE FEDERAL RESERVE ACT.
APPROPRIATION FOR EXPENSE OF PRINTING NATIONALBANK NOTES MAY BE USED FOR PRINTING FEDERAL
RESERYE NOTES.

Act Dec.
1913, sec.
38 Stat.
267.

616i. A n y appropriation heretofore made out o f the
L-! general funds .of the Treasury fo r engraving plates and
dies, the purchase o f distinctive paper, or to cover any
other expense in connection with the printing o f na
tional-bank notes or notes provided for by the A ct o f
May thirtieth, nineteenth hundred and eight, and any
distinctive paper that may be on hand at the time o f the
passage o f this A ct may be used in the discretion o f the
Secretary for the purposes o f this A ct, and should the
appropriations heretofore made be insufficient to meet
the requirements o f this A ct in addition to circulating
notes provided fo r by existing law, the Secretary is here
by authorized to use so much o f any funds in the Treas
ury not otherwise appropriated for the purpose o f fu r
nishing the notes aforesaid: Provided, however, That
nothing in this section contained shall be construed as
exempting national banks or Federal reserve banks from
their liability to reimburse the United States for any ex
penses incurred in printing and issuing circulating notes.
WHEN FEDERAL
RESERYE
BANK
SHALL
RECEIVE
CHECKS AND DRAFTS ON DEPOSIT AT PAR.

Act Dec.
1913, sec.
38 Stat.
268.

^ : 616j. Every Federal reserve bank shall receive on deLi posit at par from member banks or from Federal reserve
banks checks and drafts drawn upon any o f its depos
itors, and when remitted by a Federal reserve bank,
checks and drafts drawn by any depositor in any other
Federal reserve bank or member bank upon funds to the
credit o f said depositor in said reserve bank or member
bank.
CHARGES FOR
CHANGE.

Act Dec.
1913, sec.
38 Stat.
268.

23.
l .’,

COLLECTION

AND

FOR

SALE

616k. Nothing herein contained shall be construed as
prohibiting a member bank from charging its actual
expense incurred in collecting and remitting funds, or
for exchange sold to its patrons. The Federal Eeserve
Board shall, by rule, fix the charges to be collected by
the member banks from its patrons whose checks are
cleared through the Federal reserve bank and the charge
which may be imposed for the service o f clearing or col
lection rendered by the Federal reserve bank.
FEDERAL RESERYE BOARD MAY EXERCISE FUNCTIONS
OF A CLEARING HOUSE AND MAY REQUIRE FEDERAL
RESERYE BANKS TO EXERCISE SUCH FUNCTIONS.

6161. The Federal Eeserve Board shall make and pro
mulgate from time to time regulations governing the
transfer o f funds and charges therefor among Federal

THE FEDERAL RESERVE ACT.

155

reserve banks and their branches, and may at its dis
cretion exercise the functions o f a clearing house for
such Federal reserve banks, or may designate a Federal
reserve bank to exercise such functions, and may also
require each such bank to exercise the functions o f a
clearing house for its member banks.
SECRETARY OF THE TREASURY TO RECEIVE DEPOSITS
OF GOLD COIN OR GOLD CERTIFICATES W ITH THE
TREASURER OR ASSISTANT TREASURER OF UNITED
STATES WHEN TENDERED BY ANY FEDERAL RESERVE
BANK OR FEDERAL RESERVE AGENT FOR CREDIT TO
ITS OR HIS ACCOUNT W ITH THE FEDERAL RESERVE
BOARD.

616m. That the Secretary o f the Treasury is hereby
authorized and directed to receive deposits o f gold coin or
o f gold certificates with the Treasurer or any assistant
treasurer o f the United States when tendered by any
Federal reserve bank or Federal reserve agent for credit
to its or his account with the Federal Reserve Board.
The Secretary shall prescribe by regulation the form o f
receipt to be issued by the Treasurer or Assistant Treas
urer to the Federal reserve bank or Federal reserve agent
making (lie deposit, and a duplicate o f such receipt shall
be delivered to the Federal Reserve Board by the Treas
urer at Washington upon proper advices from any as
sistant treasurer that such deposit has been made. De
posits so made shall be held subject to the orders o f
the Federal Reserve Board and shall be payable in gold
coin or gold certificates on the order o f the Federal
Reserve Board to any Federal reserve bank or Federal
reserve agent at the "Treasury or at the Subtreasury o f
the United States nearest the place o f business o f such
Federal reserve bank or such Federal reserve agent: Pro vided, however, That any expense incurred in shipping
gold to or from the Treasury or sub treasuries in order to
make such payments, or as a result o f making such pay
ments, shall be paid by the Federal Reserve Board and
assessed against the Federal reserve banks. The order
used by the Federal Reserve Board in making such pay
ments shall be signed by the governor or vice governor,
or such other officers or members as the board may by
regulation prescribe. The form o f such order shall be
approved by the Secretary o f the Treasury.
The expenses necessarily incurred in carrying out these
provisions, including the cost o f the certificates or re
ceipts issued for deposits received, and all expenses inci
dent to the handling o f such deposits shall be paid by
the Federal Reserve Board and included in its assess
ments against the several Federal reserve banks.
Gold deposits standing to the credit o f any Federal
reserve bank with the Federal Reserve Board shall, at
the option o f said bank, be counted as part o f the lawful
reserve which it is required to maintain against outstand-

Act June 21 ,

*sec* *

THE FEDERAL RESERVE ACT.

156

ing Federal reserve n/>tes, or as part o f the reserve it is
required to maintain against deposits.
Nothing in this section shall be construed as amend
ing section six o f the act o f March fourteenth, nineteen
hundred, as amended by the acts o f March fourth, nine
teen hundred and seven, March second, nineteen hundred
and eleven, and June twelfth, nineteen hundred and six
teen, nor shall the provisions o f this section be construed
to apply to the deposits made or to the receipts or cer
tificates issued under those acts.
NATIONAL BANKS NOT REQUIRED TO MAKE DEPOSIT OF
UNITED STATES BONDS PRIOR TO COMMENCEMENT OF
BUSINESS.

see' ii*
much
provisions o f section
38 'stat!' l/, fifty-one hundred and fifty-nine o f the Revised Statutes
26ict June 21,
the United States, and section four o f the act o f June
1917, sec. 9. " twentieth, eighteen hundred and seventy-four, and sec
tion eight o f the act o f July twelfth, eighteen hundred
and eighty-two, and o f any other provisions o f existing
statutes as require that before any national banking asso
ciation shall be authorized to commence banking busi
ness it shall transfer and deliver to the Treasurer o f the
United States a stated amount o f United States regis
tered bonds, and so much o f those provisions or o f any
other provisions o f existing statutes as require any na
tional banking association now or hereafter organized to
maintain a minimum deposit o f such bonds with the
Treasurer is hereby repealed.
191?

REFUNDING BONDS.

RETIREMENT OF CIRCULATING NOTES.
191? secC‘ is*
38 ’stat.* L.’, A ct,

Sec. 18.— A fter two years from the passage o f this
and at any time during a period o f twenty years
thereafter, any member bank desiring to retire the whole
or any part o f its circulating notes, may file with the
Treasurer o f the United States an application to sell for
its account, at par and accrued interest, United States
bonds securing circulation to be retired.

208‘

PURCHASE OF UNITED STATES BONDS BY FEDERAL RESERVE BANKS.

m3* secC* is*
38

268‘

’stat.*

l .)

The Treasurer shall, at the end o f each quarterly
period, furnish the Federal Reserve Board with a list o f
such applications, and the Federal Reserve Board may,
in its discretion, require the Federal reserve banks to
purchase such bonds from the banks whose applications
nave been filed with the Treasurer at least ten days before
the end o f any quarterly period at which the Federal
Reserve Board may direct the purchase to be made:
Provided, That Federal reserve banks shall not be per
mitted to purchase an amount to exceed $25,000,000 o f
guch bonds in any one year, and which amount shall

THE FEDERAL RESERVE ACT.

157

include bonds acquired under section four o f this A ct by
the Federal reserve bank.
Provided further, That the Federal Reserve Board
shall allot to each Federal reserve bank such proportion
o f such bonds as the capital and surplus o f such bank
shall bear to the aggregate capital and surplus o f all the
Federal reserve banks.
U pon notice from the Treasurer o f the amount o f bonds
so sold for its account, each member bank shall duly
assign and transfer, in writing, such bonds to the Federal
reserve bank purchasing the same, and such Federal
reserve bank shall, thereupon, deposit lawful money with
the Treasurer o f the United States for the purchase price
o f such bonds, and the Treasurer shall pay to the member
bank selling such bonds any balance due after deducting
a sufficient sum to redeem its outstanding notes secured
by such bonds, which notes shall be canceled and perma
nently retired when redeemed.
ISSUE OF CIRCULATING NOTES TO FEDERAL RESERTE
BANKS ON SECURITY OF UNITED STATES BONDS. CIR
CULATING NOTES SO ISSUED OBLIGATIONS OF FEDERAL RESERYE BANK.

618b. The Federal reserve banks purchasing such bonds igAct Dec. 23,
shall be permitted to take out an amount o f circulating 38 ’stat.' l.|
notes equal to the par value o f such bonds.
269,
Upon the deposit with the Treasurer o f the United
States o f bonds so purchased, or any bonds with the cir
culating privilege acquired under section four o f this act,
any Federal reserve bank making such deposit in the
manner provided by existing law, shall be entitled to
receive from the Comptroller o f the Currency circulating
notes in blank, registered and countersigned as provided
by law, equal in amount to the par value o f the bonds so
deposited.1 Such notes shall be the obligations o f the
Federal reserve bank procuring the same, and shall be in
form prescribed by the Secretary o f the Treasury, and to
the same tenor and effect as national-bank notes now
provided by law. They shall be issued and redeemed
under the same terms and conditions as national-bank
notes except that they shall not be limited to the amount
o f the capital stock o f the Federal reserve bank issuing
them.
ISSUE OF ONE-YEAR GOLD NOTES AND THREE PER CENT
BONDS OF THE UNITED STATES IN EXCHANGE FOR
TWO PER CENT UNITED STATES BONDS.

618c. Upon application o f any Federal reserve bank, 19^
is3;
approved by the Federal Reserve Board, the Secretary 38^ stat. l.\
o f the Treasury may issue, in exchange for United States
1Under act of Apr. 23, 1918, Federal reserve banks may issue
Federal reserve bank notes in any denominations, including $1
and $2, against the security of United States certificates of in
debtedness to the extent permitted by that act.

THE FEDERAL RESERVE ACT.

two per centum gold bonds bearing the circulation privi
lege, but against which no circulation is outstanding,
one-year gold notes o f the United States without the
circulation privilege, to an amount not to exceed onehalf o f the two per centum bonds so tendered for ex
change, and thirty-year three per centum gold bonds
without the circulation privilege for the remainder o f the
two per centum bonds so tendered: Provided, That at
the time o f such exchange the Federal reserve bank ob
taining such one-year gold notes shall enter into an obli
gation with the Secretary o f the Treasury binding itself
to purchase from the United States for gold at the ma
turity o f such one-year notes, an amount equal to those
delivered in exchange for such bonds, if so requested by
the Secretary, and at each maturity o f one-year notes so
purchased by such Federal reserve bank, to purchase
from the United States such an amount o f one-year notes
as the Secretary may tender to such bank, not to exceed
the amount issued to such bank in the first instance, in
exchange for the two per centum United States gold
bonds; said obligation to purchase at maturity such
notes shall continue in force for a period not to exceed
thirty years.
F or the purpose o f making the exchange herein pro
vided for, the Secretary o f the Treasury is authorized to
issue at par Treasury notes in coupon or registered form
as he may prescribe in denominations o f one hundred
dollars, or any multiple thereof, bearing interest at the
rate o f three per centum per annum, payable quarterly,
such Treasury notes to be payable not more than one year
from the date o f their issue in gold coin o f the present
standard value, and to be exempt as to principal and
interest from the payment o f all taxes and duties o f the
United States except as provided by this act, as well as
from taxes in any form by or under State, municipal, or
local authorities. A nd for the same purpose, the Secre
tary is authorized and empowered to issue United States
gold bonds at par, bearing three per centum interest pay
able thirty years from date o f issue, such bonds to be o f
the same general tenor and effect and to be issued under
the same general terms and conditions as the United
States three per centum bonds without the circulation
privilege now issued and outstanding
EXCHANGE OF THREE PER CENT BONDS FOR ONE-YEAR
GOLD NOTES.

618d. U pon application o f any Federal
approved by the Federal Reserve Board,
may issue at par such three per centum
change for the one-year gold notes herein

reserve bank,
the Secretary
bonds in ex
provided for.

THE FEDERAL RESERVE ACTBANK

159

RESERVES.

DEMAND AND TIME DEPOSITS DEFINED— RESERVE RE
QUIREMENTS— WHEN EFFECTIVE.

619.
Sec. 19.— Demand deposits within the meaning o f 19^
this act shall comprise all deposits payable within thirty |«Q ’stat.* l.\
days, and time deposits shall comprise all deposits pay- A ct June 21,
able after thirty days, all savings accounts and ce r-1917» sec- 10*
tificates o f deposit which are subject to not less than
thirty days’ notice before payment, and all postal savings
deposits.1
Every bank, banking asociation, or trust company
which is or which becomes a member o f any Federal re
serve bank shall establish and maintain reserve balances
with its Federal reserve bank as follow s:
RESERVE REQUIREMENTS FOR BANKS NOT IN RESERVE
CITIES.

619a. (a) I f not in a reserve or central reserve city, 1QA ct Dec. 23,
as now or hereafter defined, it shall hold and maintain 38 stat.'
with the Federal reserve bank o f its district an actual net27Jct June 2if
balance equal to not less than seven per centum o f theiai?. sec. 1 0 /
aggregate amount o f its demand deposits and three per
centum o f its time deposits.
RESERVE
CITIES.

REQUIREMENTS

FOR

BANKS

RESERVE

619b. (&) I f in a reserve city, as now or hereafter 19^jjt Dec. 2^3,
defined, it shall hold and maintain with the Federal 38 ’stat.' l.\
reserve bank o f its district an actual net balance equal t o 27ACt Aug. 15,
not less than ten per centum o f the aggregate amount o f Jf166i38 ^tat’
its demand deposits and three per centum o f its time A ct June 21,
deposits: Provided, however, That if located in the outly- 19ilt lept.^e,
ing districts o f a reserve city or in territory added to such 1918>sec*
a city by the extension o f its corporate charter, it may,
upon the affirmative vote o f five members o f the Federal
Reserve Board, hold and maintain the reserve balances
specified in paragraph (a) hereof.
RESERVE REQUIREMENTS FOR BANKS IN CENTRAL RE
SERVE CITIES.

619c. (c) I f in a central reserve city, as now or here- A ct Dec. 23,
after defined, it shall hold and maintain with the Federal 3813,stat 2l.!
reserve bank o f its district an actual net balance equal 27^ct ^ 15’
to not less than thirteen per centum o f the aggregate 1914; 38 stat
amount o f its demand deposits and three per centum o f ^ A ct^ J u n e 21,
its time deposits: Provided, however, That if located i n 19^7»t
the outlying districts o f a central reserve city or in te r r i- 1918, secfi '
1 Government deposits other than postal savings deposits are
not subject to reserve requirements. See section 7 of First Lib
erty Bond act, approved Apr. 24,1917; section 8 of Second Liberty
Bond act, approved Sept. 24, 1917, and section 8 of Third Liberty
Bond act, approved Apr. 4, 1918.

160

THE FEDERAL RESERVE ACT.

tory added to such city by the extension o f its corporate
charter, it may, upon the affirmative vote o f five members
o f the Federal Eeserve Board, hold and maintain the
reserve balances specified in paragraphs (a) or (&)
thereof.
MEMBER BANK FORBIDDEN TO KEEP ON DEPOSIT WITH
NONMEMBER BANK A SUM IN EXCESS OF TEN PER
CENT OF ITS OWN CAPITAL AND SURPLUS OR TO SE
CURE DISCOUNTS FOR NONMEMBER BANK.
1913! sec?' i29 ;
619d. No member bank shall keep on deposit with any
38 ’stat.* L.j State bank or trust company which is not a member bank
Act Aug. 15, a sum in excess o f ten per centum o f its own paid-up
L ^ liif8 stat'capital and surplus. No member bank shall act as the
1017tsecI1io21, me(^ um or ag ent
a nonmember bank in applying fo r
’ sec* ’ or receiving discounts from a Federal reserve bank under
the provisions o f this A ct, except by permission o f the
Federal Eeserve Board.

WITHDRAWAL OF RESERVE BY MEMBER BANK.
1913* se?’
38 'stat.*

19:

®l®e. The required balance carried by a member bank
l .’, with a Federal reserve bank may, under the regulations
27Ict. Aug. 15, and subject to such penalties as may be prescribed by the
L91e6i38 ®tat-Federal Eeserve Board, be checked against and with"A ct June 2 i, drawn by such member bank fo r the purpose o f meeting
1017, sec. 10. existing liabilities: Provided, however, That no bank
shall at any time make new loans or shall pay any divi
dends unless and until the total balance required by law
is fully restored.
RESERVE REQUIREMENT— HOW ESTIMATED.

lfiAct i>ec. 23, 619f. In estimating the balances required by this A ct,
38 'stat.* L.’f the net difference o f amounts due to and from other
27ic t Aug. 15, banks shall be taken as the basis fo r ascertaining the
l 91 6&238 ®tat*deposits against which required balances with Federal
Act June 21, reserve banks shall be determined.
1017, sec. 10.

RESERVE REQUIREMENTS FOR NATIONAL BANKS LO
CATED IN ALASKA OR OUTSIDE THE CONTINENTAL
UNITED STATES.

101?
10; 619S- National banks, or banks organized under local
88 'stat.* l .’, laws, located in Alaska or in a dependency or insular
27ic t Aug. 15, possession or any part o f the United States outside the
l?16&238 Stat*continental United States may remain nonmember banks,
’Act June 21, and shall in that event maintain reserves and com ply
101 , sec.
.
con(jitions now provided by law regulating
them ; or said banks may, with the consent o f the Eeserve
Board, become member banks o f any one o f the reserve
districts, and shall in that event take stock, maintain
reserves, and be subject to all the other provisions o f this

act

THE FEDERAL RESERVE ACT.

REDEMPTION FUND WITH
COUNTED AS RESERYE.

TREASURER

161

NOT TO BE

620. Sec. 20.— So much o f sections two and three o f the
JJ®* 2208:
A ct o f June twentieth, eighteen hundred and s e v e n ty - 38 ’stat L.|
four, entitled “ A n A ct fixing the amount o f United States
notes, providing for a redistribution o f the national-bank
currency, and for other purposes,” as provides that the
fund deposited by any national banking association with
the Treasurer o f the United States for the redemption o f
its notes shall be counted as a part o f its lawful reserve
as provided in the A ct aforesaid, is hereby repealed. A nd
from and after the passage o f this A ct such fund o f five
per centum shall in no case be counted by any national
banking association as a part o f its lawful reserve.
BANK EXAMINATIONS.

APPOINTMENT AND POWERS OF EXAMINERS— ACCEPTANCE OF REPORTS OF EXAMINATIONS BY STATE
AUTHORITY.

621. Sec. 21.— Section fifty-two hundred and forty,
United States Revised Statutes, is amended to read as 38 stat.*
fo llo w s:
271‘
The Comptroller o f the Currency, with the approval o f
the Secretary o f the Treasury, shall appoint examiners
who shall examine every member ban k1 at least twice in
each calendar year and oftener if considered necessary:
Provided, however, That the Federal Reserve Board may
authorize examination by the State authorities to be
accepted in the case o f State banks and trust companies
and may at any time direct the holding o f a special ex
amination o f State banks or trust companies that are
stockholders in any Federal reserve bank. The examiner
making the examination o f any national bank, or o f any
other member bank, shall have power to make a thorough
examination o f all the affairs o f the bank, and in doing so
he shall have power to administer oaths and to examine
any o f the officers and agents thereof under oath and
shall make a full and detailed report o f the condition o f
said bank to the Comptroller o f the Currency.

SALARIES OF BANK EXAMINERS.

621a. The Federal Reserve Board, upon the r e c o m - 19Act Dec. 23,
mendation o f the Comptroller o f the Currency, shall fix 38 ’stat.' l.;
the salaries o f all bank examiners and make report thereof 272#
to Congress. The expense o f the examinations herein
provided fo r shall be assessed by the Comptroller o f the
Currency upon the banks examined in proportion to
assets or resources held by the banks upon the dates o f
examination o f the various banks.
1 Except banks admitted to membership in the system under au
thority of section 9 of this act. See section 9 of this act as
amended by act approved June 21, 1917.
164312°—20------ 11

162

THE FEDERAL EESERVE ACT.

EXAMINATIONS BY FEDERAL RESERVE BANK.
1913! sec? 2 1 ;
621b. In addition to the examinations made and con112 stat* L-» ducted by the Comptroller o f the Currency, every Fed
eral reserve bank may, with the approval o f the Federal
reserve agent or the Federal Reserve Board, provide for
special examination o f member banks within its district.
The expense o f such examinations shall be borne by the
bank examined. Such examinations shall be so con
ducted as to inform the Federal reserve bank o f the con
dition o f its member banks and o f the lines o f credit
which are being extended by them. Every Federal re
serve bank shall at all times furnish to the Federal R e
serve Board such inform ation as may be demanded con
cerning the condition o f any member bank wTithin the
district o f the said Federal reserve bank.
No bank shall be subject to any visitatorial powers
other than such as are authorized by law, or vested in the
courts o f justice or such as shall be or shall have been
exercised or directed by Congress, or by either House
thereof or by any committee o f Congress or o f either
House duly authorized.

EXAMINATIONS OF FEDERAL RESERVE BANKS.
1913* secC’ 2 i :
Federal Reserve Board shall, at least once
38 'stat.’ l .’, each year, order an examination o f each Federal reserve
272,
bank, and upon joint application o f ten member banks
the Federal Reserve Board shall order a special examina
tion and report o f the condition o f any Federal reserve
bank.

MEMBER BANK CAN NOT MAKE LOAN OR GRANT A
GRATUITY TO ANY NATIONAL BANK EXAMINER.

622. Sec. 22a.— No member bank and no officer, direc1 Act Dec. 23 ,
38 ’stat.’ l .’, tor, or employee thereof shall hereafter make any loan or
27Act se t 26 Srant an7 gratuity to any bank examiner. A ny bank
1918, sec?5. ’ officer, director, or employee violating this provision
shall be deemed guilty o f a misdemeanor and shall be
imprisoned not exceeding one year or fined not more than
$5,000, or b oth ; and may be fined a further sum equal to
the money so loaned or gratuity given. A ny examiner
accepting a loan or gratuity from any bank examined by
him or from an officer, director, or employee thereof shail
be deemed guilty o f a misdemeanor and shall be im
prisoned one year or fined not more than $5,000, or both,
and may be fined a further sum equal to the money so
loaned or gratuity given, and shall forever thereafter
be disqualified from holding office as a national-bank
examiner.

THE FEDERAL RESERVE ACT.

163

NATIONAL BANK EXAMINER CAN NOT PERFORM ANT
SERVICE FOR COMPENSATION FOR ANY BANK OR
OFFICER. EXAMINER CAN NOT DISCLOSE THE NAMES
OF BORROWERS, OR COLLATERAL WITHOUT FIRST
OBTAINING WRITTEN CONSENT OF COMPTROLLER.

622b. No national bank examiner shall perform any igAct ^Sept. 26,
other service for compensation while holding such office
* sec’
for any bank or officer, director, or employee thereof.
No examiner, public or private, shall disclose tho
names o f borrowers or the collateral for loans o f a mem
ber bank to other than the proper officers o f such bank
without first having obtained the express permission in
writing from the Comptroller o f the Currency, or from
the board o f directors o f such bank, except when ordered
to do so by a court o f competent jurisdiction, or by
direction o f the Congress o f the United States, or o f
either House thereof, or any committee o f Congress, or
o f either House duly authorized. Any bank examiner
violating the provisions o f this subsection shall be im
prisoned not more than one year or fined not more than
$5,000, or both.
PENALTY FOR OFFICER, DIRECTOR, OR EMPLOYEE OF
MEMBER BANK WHO RECEIVES ANY COMMISSION OR
GIFT IN CONNECTION WITH ANY LOAN.

622c. Except as herein provided, any officer, director Act Sept. 26,
employee, or attorney o f a member bank who stipulates1918, sec* 5*
for or receives or consents or agrees to receive any fee,
commission, gift, or thing o f value from any person, firm,
or corporation, for procuring or endeavoring to procure
for such person, firm, or corporation, or for any other
person, firm, or corporation, any loan from or the pur
chase or discount o f any paper, note, draft, check, or
bill o f exchange by such member bank shall be deemed
guilty o f a misdemeanor and shall be imprisoned not
more than one year or fined not more than $5,000, or
both.
PURCHASE OF SECURITIES OR PROPERTY FROM ONE OF
ITS DIRECTORS, OR SALES TO A DIRECTOR BY A MEM
BER BANK.

622d. A n y member bank may contract for, or purchase Act Sept. 20,
from, any o f its directors or from any firm o f which a n y 1918, sec* 5*
o f its directors is a member, any securities or other
property, when (and not otherwise) such purchase is
made in the regular course o f business upon terms not
less favorable to the bank than those offered to others,
or when such purchase is authorized by a majority o f the
board o f directors not interested in the sale o f sucli
securities or property, such authority to be evidenced
by the affirmative vote or written assent o f such directors:
Provided, however, That when any director, or firm o f
which any director is a member, acting fo r or on behalf

164

THE FEDERAL RESERVE ACT.

o f others, sells securities or other property to a member
bank, the Federal Reserve Board by regulation may,
in any or all cases, require a full disclosure to be made,
on forms to be prescribed by it, o f all commissions or
other considerations received, and whenever such director
or firm, acting in his or its own behalf, sells securities
or other property to the bank the Federal Reserve Board
by regulation, may require a full disclosure o f all profit
realized from such sale.
A ny member bank may sell securities or other property
to any o f its directors, or to a firm o f which any o f its
directors is a member, in the regular course o f business
on terms not more favorable to such director or firm
than those offered to others, or when such sale is author
ized by a m ajority o f the board o f directors o f a member
bank to be evidenced by their affirmative vote or written
assent: Provided, however, That nothing in this subsec
tion contained shall be construed as authorizing member
banks to purchase or sell securities or other property
which such banks are not otherwise authorized by law
to purchase or sell.
KATE OF INTEREST PAID DIRECTORS, OFFICERS, OR
EMPLOYEES NOT TO EXCEED THAT PAID TO OTHER
DEPOSITORS.

m s,4 lee*'i?’

622e. No member bank shall pay to any director, officer,
attorney, or employee a greater rate o f interest on the
deposits o f such director, officer, attorney, or employee
than that paid to other depositors on similar deposits
with such member bank.
PENALTY FOR VIOLATION OF ANY OF THE PROVISIONS
OF SECTION 22 OF THE FEDERAL RESERVE ACT.

1918,Recife.26,

622f. I f the directors or officers o f any member bank
shall knowingly violate or permit any o f the agents,
officers, or directors o f any member bank to violate any
o f the provisions o f this section or regulations o f the
board made under authority thereof, every director and
officer participating in or assenting to such violation
shall be held liable in his personal and individual ca
pacity fo r all damages which the member bank, its share
holders, or any other persons shall have sustained in con
sequence o f such violation.
LIABILITY OF STOCKHOLDERS OF NATIONAL BANKS.

sec?’ 2 3 ;

®^3. Sec. 23.— The stockholders o f every national bank-

Stat* L'

associati°n shall be held individually responsible fo r
all contracts, debts, and engagements o f such association,
each to the amount o f his stock therein, at the par value
thereof in addition to the amount invested in such stock.
The stockholders in any national banking association
who shall have transferred their shares or registered the
transfer thereof within sixty days next before the date o f

1913?
273

THE FEDERAL RESERVE ACT.

165

the failure o f such association to meet its obligations, op
with knowledge o f such impending failure, shall be liable
to the same extent as if they had made no such transfer,
to the extent that the subsequent transferee fails to
meet such liability; but this provision shall not be con
strued to affect in any way any recourse which such
shareholders might otherwise have against those in whose
names such shares are registered at the time o f such
failure.
LOANS ON REAL ESTATE.

624. Sec. 24.— Any national banking association not
2248:
situated in a central reserve city may make loans secured 38^ 'stat. l /,
by improved and unencumbered farm land situated with- Act Sept. 7,
in its Federal reserve district or within a radius of one^91? ^ 9 stat*
hundred miles of the place in which such bank is located,
irrespective of district lines, and may also make loans se
cured by improved and unencumbered real estate located
within one hundred miles of the place in which such
bank is located, irrespective of district lines: but no loan
made upon the security of such farm land snail be made
for a longer time than five years, and no loan made upon
the security of such real estate as distinguished from
farm land shall be made for a longer time than one year
nor shall the amount of any such loan, whether upon such
farm land or upon such real estate, exceed fifty per
centum of the actual value of the property offered as se
curity. Any such bank may make such loans, whether
secured by such farm land or such real estate, in an ag
gregate sum equal to twenty-five per centum of its capital
an(f surplus or to one-third of its time deposits and such
banks may continue hereafter as heretofore to receive
time deposits and to pay interest on the same.
The Federal Eeserve Board shall have power from
time to time to add to the list of cities in which national
banks shall not be permitted to make loans secured upon
real estate in the manner described in this section.
FOREIGN BRANCHES.

625. Sec. 25 [as amended 1919].— Any national banking Act Dec. 23,
association possessing a capital and surplus of $ 1 ,0 0 0 ,0 0 0 3813,stat.' l . !
or more may file application with the Federal Reserve273*
Board for permission to exercise, upon such conditions Act# Sept 7f
and under such regulations as may be prescribed by the Jf1^ 39 s*atsaid board, either or both of the following powers:
First. To establish branches in foreign countries or Act Sept. 17,
dependencies or insular possessions of the United States 1919,
for the furtherance of the foreign commerce of the
United States, and to act if required to do so as fiscal
agents of the United States.
Second. To invest an amount not exceeding in the
aggregate ten per centum of its paid-in capital stock and

THE FEDERAL RESERVE ACT.

surplus in the stock o f one or more banks or corporations
chartered or incorporated under the laws o f the United
States or o f any State thereof , and principally engaged in
international or foreign banking, or banking in a depend
ency or insular possession o f the United States either
directly or through the agency, ownership, or control o f
local institutions m foreign countries, or in such depend
encies or insular possessions. Until January 1, 1921, any
national banking association, without regard to the
amount o f its capital and surplus, may file application
with the Federal Reserve Board for permission, upon
such conditions and under such regulations as may be pre
scribed by said board, to invest an amount not exceeding
in the aggregate 5 per centum o f its paid-in capital and
surplus in the stock o f one or more corporations chartered
or incorporated under the laws o f the United States or o f
any State thereof and, regardless o f its location, princi-

engaged in such phases of international or foreign
Eally
nancial operations as may be necessary to facilitate the

export of goods, wares, or merchandise from the United
States or any of its dependencies or insular possessions
to any foreign country: Provided, however, That in no
event shall the total investments authorized by this
section by any one national bank exceed 10 per centum
o f its capital and surplus.
Such application shall specify the name and capital o f
the banking association filing it, the powers applied for,
and the place or places where the banking or financial
operations proposed are to be carried on. The Federal
Reserve Board shall have power to approve or to reject
such application in whole or in part i f for any reason the
granting o f such application is deemed inexpedient, and
shall also have power from time to time to increase or
decrease the number o f places where such banking opera
tions may be carried on.
Every national banking association operating foreign
branches shall be required to furnish inform ation con
cerning the condition o f such branches to the Com p
troller o f the Currency upon demand, and every member
bank investing in the capital stock o f banks or corpora
tions described above shall be required to furnish in for
mation concerning the condition o f such banks or cor
porations to the Federal Reserve Board upon demand,
and the Federal Reserve Board may order special exami
nations o f the said branches, banks, or corporations at
such time or times as it may deem best.
B efore any national bank shall be permitted to pur
chase stock in any such corporation the said corporation
shall enter into an agreement or undertaking with the
Federal Reserve Board to restrict its operations or con
duct its business in such manner or under such limita
tions and restrictions as the said board may prescribe for
the place or places wherein such business is to be con
ducted. I f at any time the Federal Reserve Board shall

THE FEDERAL RESERVE ACT.

167

ascertain that the regulations prescribed by it are not
being complied with, said board is hereby authorized and
empowered to institute an investigation o f the matter and
to send for persons and papers, subpoena witnesses, and
administer oaths in order to satisfy itself as to the actual
nature o f the transactions referred to. Should such in
vestigation result in establishing the failure o f the cor
poration in question, or o f the national bank or banks
which may be stockholders therein, to comply with the
regulations laid down by the said Federal Reserve Board,
such national banks may be required to dispose o f stock
holdings in the said corporation upon reasonable notice.
Every such national banking association shall conduct
the accounts o f each foreign branch independently o f the
accounts o f other foreign branches established by it and
o f its home office, and shall at the end o f each fiscal period
transfer to its general ledger the profit or loss accrued
at each branch as a separate item.
Any director or other officer, agent, or employee o f any
member bank may, with the approval o f the Federal
Reserve Board, be a director or other officer, agent, or
employee o f any such bank or corporation above men
tioned in the capital stock o f which such member bank
shall have invested as hereinbefore provided, without
being subject to the provisions o f section eight o f the
A ct approved October fifteenth, nineteen hundred and
fourteen, entitled “ A n A ct to supplement existing laws
against unlawful restraints and monopolies, and for
other purposes.”
BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN
BANKING BUSINESS.
625a. Sec. 25 (a).— Corporations to be organized for thc^®* Dec- 24»
purpose o f engaging in international or foreign banking
or other international or foreign financial operations, or
in banking or other financial operations in a dependency
or insular possession o f the United States, either di
rectly or through the agency, ownership, or control o f
local institutions in foreign countries, or in such de
pendencies or insular possessions as provided by this sec
tion, and to act when required by the Secretary o f the
Treasury as fiscal agents o f the United States, may be
formed by any number o f natural persons, not less in
any case than five.
Such persons shall enter into articles o f association
which shall specify in general terms the objects for
which the association is formed and may contain any
other provisions not inconsistent with law which the
association may see fit to adopt for the regulation o f its
business and the conduct o f its affairs.
Such articles o f association shall be signed by all o f
the persons intending to participate in the organization
o f the corporation and, thereafter, shall be forwarded to
the Federal Reserve Board and shall be filed and pre
served in its office. The persons signing the said articles

168

THE FEDERAL RESERVE ACO?.

o f association shall, under their hands, make an organi
zation certificate which shall specifically state:
First. The name assumed by such corporation, which
shall be subject to the approval o f the Federal Reserve
Board.
Second. The place or places where its operations are
to be carried on.
Third. The place in the United States where its home
office is to be located.
Fourth. The amount o f its capital stock and the num
ber o f shares into which the same shall be divided.
Fifth. The names and places o f business or residence o f
the persons executing the certificate and the number o f
shares to which each has subscribed.
Sixth. The fact that the certificate is made to enable
the persons subscribing the same, and all other persons,
firms, companies, and corporations, who or which may
thereafter subscribe to or purchase shares o f the capital
stock o f such corporation, to avail themselves o f the ad
vantages o f this section.
The persons signing the organization certificate shall
duly acknowledge the execution thereof before a judge
o f some court o f record or notary public, who shall
certify thereto under the seal o f such court or notary,
and thereafter the certificate shall be forwarded to the
Federal Reserve Board to be filed and preserved in its
office. U pon duly making and filing articles o f asso
ciation and an organization certificate, and after the
Federal Reserve Board has approved the same and issued
a permit to begin business, the association shall become
and be a body corporate, and as such and in the name
designated therein shall have power to adopt and use a
corporate seal, which may be changed at the pleasure
o f its board 0 1 directors; to have succession for a period
o f twenty years unless sooner dissolved by the act o f the
shareholders owning two-thirds o f the stock or by an
act o f Congress or unless its franchises become forfeited
by some violation o f la w ; to make contracts; to sue and
be sued, complain, and defend in any court o f law or
equity; to elect or appoint directors, all o f whom shall be
citizens o f tjhe United States; and, by its board o f direc
tors, to appoint such officers and employees as may be
deemed proper, define their authority and duties, require
bonds o f them, and fix the penalty thereof, dismiss such
officers or employees, or any thereof, at pleasure and ap
point others to fill their places; to prescribe, by its board
o f directors, by-laws not inconsistent with law or with
the regulations o f the Federal Reserve Board regulating
the manner in which its stock shall be transferred, its
directors elected or appointed, its officers and employees
appointed, its property transferred, and the privileges
granted to it by law exercised and enjoyed.
Each corporation so organized shall have power, under
such rules and regulations as the Federal Reserve Board
may prescribe:

Th e

f e d e r a l r e se r v e a c t .

(a) To purchase, sell, discount, and negotiate, with or
without its indorsement or guaranty, notes, drafts,
checks, bills of exchange, acceptances, including bank
ers5 acceptances, cable transfers, and other evidences of
indebtedness; to purchase and sell, with or without its
indorsement or guaranty, securities, including the obli
gations of the United States or of any State thereof but
not including shares of stock in any corporation except
as herein provided; to accept bills or drafts drawn upon
it subject to such limitations and restrictions as the Fed
eral Reserve Board may impose; to issue letters o f
credit; to purchase and sell coin, bullion, and exchange;
to borrow and to lend money; to issue debentures, bonds,
and promissory notes under such general conditions as to
security and such limitations as the Federal Reserve
Board may prescribe, but in no event having liabilities
outstanding thereon at any one time exceeding ten times
its capital stock and surplus; to receive deposits outside
of the United States and to receive only such deposits
within the United States as may be incidental to or for
the purpose of carrying out transactions in foreign coun
tries or dependencies or insular possessions of the United
States; and generally to exercise such powers as are in
cidental to the powers conferred by this act or as may
be usual, in the determination of the Federal Reserve
Board, in connection with the transaction of the business
of banking or other financial operations in the countries,
colonies, dependencies, or possessions in which it shall
transact business and not inconsistent with the powers
specifically granted herein. Nothing contained in this
section shall be construed to prohibit the Federal Reserve
Board, under its power to prescribe rules and regula
tions, from limiting the aggregate amount of liabilities
of any or all classes incurred by the corporation and
outstanding at any one time. Whenever a corporation
organized under this section receives deposits in the
United States authorized by this section it shall carry
reserves in such amounts as the Federal Reserve Board
may prescribe, but in no event less than 10 per centum
of its deposits.
(b) To establish and maintain for the transaction of
its business branches or agencies in foreign countries,
their dependencies or colonies, and in the dependencies
or insular possessions of the United States, at such places
as may be approved by the Federal Reserve Board and
under such rules and regulations as it may prescribe, in
cluding countries or dependencies not specified in the
original organization certificate.
(c) W ith the consent of the Federal Reserve Board to
purchase and hold stock or other certificates of owner
ship in any other corporation organized under the pro
visions of this section, or under the laws of any foreign
country or a colony or dependency thereof, or under the
laws of any State, dependency, or insular possession of
the United States but not engaged in the general business

THE FEDERAL RESERVE ACT.

o f buying or selling goods, wares, merchandise or com
modities in the United States, and not transacting any
business in the United States except such as in the ju d g
ment o f the Federal Reserve Board may be incidental to
its international or foreign business: Provided, however,
That, except with the approval o f the Federal Reserve
Board, no corporation organized hereunder shall invest
in any one corporation an amount in excess o f 10 per
centum o f its own capital and surplus, except in a cor
poration engaged in the business o f banking, when 15
per centum o f its capital and surplus may be so invested:
Provided further, That no corporation organized here
under shall purchase, own, or hold stock or certificates
o f ownership in any other corporation organized here
under or under the laws o f any State which is in sub
stantial competition therewith, or which holds stock or
certificates o f ownership in corporations which are in
substantial competition with the purchasing corporation.
Nothing contained herein shall prevent corporations
organized hereunder from purchasing and holding stock
in any corporation where such purchase shall be neces
sary to prevent a loss upon a debt previously contracted
in good faith ; and stock so purchased or acquired in
corporations organized under this section shall within
six months from such purchase be sold or disposed o f at
public or private sale unless the time to so dispose o f
same is extended by the Federal Reserve Board.
No corporation organized under this section shall carry
on any part o f its business in the United States except
such as, in the judgment o f the Federal Reserve Board,
shall be incidental to its international or foreign busi
ness : And provided further, That except such as is inci
dental and preliminary to its organization no such cor
poration shall exercise any o f the powers conferred by
this section until it has been duly authorized by the
Federal Reserve Board to commence business as a cor
poration organized under the provisions o f this section.
No corporation organized under this section shall
engage in commerce or trade in commodities except as
specifically provided in this section, nor shall it either
directly or indirectly control or fix or attempt to control
or fix the price o f any such commodities. The charter o f
any corporation violating this provision shall be sub
ject to forfeiture in the manner hereinafter provided
m this section. It shall be unlawful for any director,
officer, agent, or employee o f any such corporation to use
or to conspire to use the credit, the funds, or the power o f
the corporation to fix or control the price o f any such
commodities, and any such person violating this provi
sion shall be liable to a fine o f not less than $1,000 and
not exceeding $5,000 or imprisonment not less than one
year and not exceeding five years, or both, in the discre
tion o f the court.
No corporation shall be organized under the provisions
o f this section with a capital stock o f less than $2,000,000,

THE FEDERAL RESERVE ACT.

one-quarter o f which must be paid in before the corpora
tion may be authorized to begin business, and the re
mainder o f the capital stock o f such corporation shall
be paid in installments o f at least 10 per centum on the
whole amount to which the corporation shall be limited
as frequently as one installment at the end o f each suc
ceeding two months from the time o f the commencement
o f its business operations until the whole o f the capital
stock shall be paid in. The capital stock o f any such
corporation may be increased at any time, with the ap
proval o f the Federal Reserve Board, by a vote o f twothirds o f its shareholders or by unanimous consent in
writing o f the shareholders without a meeting and with
out a Formal vote, but any such increase o f capital shall
be fully paid in within ninety days after such approval;
and may be reduced in like manner, provided that in no
event shall it be less than $2,000,000. No corporation,
except as herein provided, shall during the time it shall
continue its operations withdraw or permit to be with
drawn, either in the form o f dividends or otherwise,
any portion o f its capital. A ny national banking asso
ciation may invest in the stock o f any corporation or
ganized under the provisions o f this section, but the ag
gregate amount o f stock held in all corporations engaged
in business o f the kind described in this section and in
section 25 o f the Federal Reserve A ct as amended shall
not exceed 10 per centum o f the subscribing bank’s capi
tal and surplus.
A m ajority o f the shares o f the capital stock o f any
such corporation shall at all times be held and owned by
citizens o f the United States, by corporations the con
trolling interest in which is owned by citizens o f the
United States, chartered under the laws o f the United
States or o f a State o f the United States, or by firms or
companies, the controlling interest in which is owned by
citizens o f the United States. The provisions o f section
8 o f the act approved October 15, 1914, entitled ‘An act
to supplement existing laws against unlawful restraints
and monopolies, and for other purposes,’ as amended by
the acts o f May 15, 1910, and September 7, 1916, shall be
construed to apply to the directors, other officers, agents,
or employees o f corporations organized under the pro
visions o f this section: Provided, however, That nothing
herein contained shall (1) prohibit any director or other
officer, agent or employee o f any member bank, who has
procured the approval o f the Federal Reserve Board
from serving at the same time as a director or other offi
cer, agent or employee o f any corporation organized
under the provisions o f this section in whose capital
stock such member bank shall have invested; or (2) pro
hibit any director or other officer, agent, or employee o f
any corporation organized under the provisions o f this
section, who has procured the approval o f the Federal
Reserve Board, from serving at the same time as a direc
tor or other officer, agent or employee o f any other cor

£H E FEDERAL RESERVE ACT.

poration in whose capital stock such first-mentioned cor
poration shall have invested under the provisions of this
section.
No member of the Federal Reserve Board shall be an
officer or director of any corporation organized under
the provisions of this section, or of any corporation en
gaged in similar business organized under the laws of
any State, nor hold stock in any such corporation, and
beiore entering upon his duties as a member of the Fed
eral Reserve Board he shall certify under oath to the
Secretary of the Treasury that he has complied with
this requirement.
Shareholders in any corporation organized under the
provisions of this section shall be liable for the amount
o f their unpaid stock subscriptions. No such corporation
shall become a member of any Federal reserve bank.
Should any corporation organized hereunder violate or
fa il to comply with any of the provisions of this section,
all of its rights, privileges, and franchises derived here
from may thereby be forfeited. Before any such cor>oration shall be declared dissolved, or its rights, privieges, and franchises forfeited, any noncompliance with,
or violation of such laws shall, however, be determined
and adjudged by a court of the United States of com
petent jurisdiction, in a suit brought for that purpose in
the district or territory in which the home office of such
corporation is located, which suit shall be brought by the
United States at the instance of the Federal Reserve
Board or the Attorney General. Upon adjudication of
such noncompliance or violation, each director and offi
cer who participated in, or assented to, the illegal act or
acts, shall be liable in his personal or individual capacity
for all damages which the said corporation shall have
sustained in consequence thereof. No dissolution shall
take away or impair any remedy against the corporation,
its stockholders, or officers for any liability or penalty
previously incurred.
A n y such corporation may go into voluntary liquida
tion and be closed by a vote of its shareholders owning
two-thirds of its stock.
Whenever the Federal Reserve Board shall become
satisfied of the insolvency of any such corporation, it
may appoint a receiver who shall take possession of all
o f the property and assets of the corporation and exer
cise the same rights, privileges, powers, and authority
with respect thereto as are now exercised by receivers of
national banks appointed by the Comptroller of the
Currency of the United States: Provided, however, That
the assets of the corporation subject to the laws of other
countries or jurisdictions shall be dealt with in accord
ance with the terms o f such laws.
Every corporation organized under the provisions of
this section shall hold a meeting of its stockholders an
nually upon a date fixed in its by-laws, such meeting to
be held at its home office in the United States. Every

{

THE FEDERAL RESERVE ACT.

such corporation shall keep at its home office books con
taining the names of all stockholders thereof, and the
names and addresses of the members of its board of di
rectors, together with copies of all reports made by it to
the Federal Eeserve Board. Every such corporation
shall make reports to the Federal Reserve Board at such
times and in such form as it may require; and shall be
subject to examination once a year and at such other
times as may be deemed necessary by the Federal Reserve
Board bv examiners appointed by the Federal Reserve
Board, the cost of such examinations, including the com
pensation of the examiners, to be fixed by the Federal
Kesefrve Board and to be paid by the corporation
examined.
The directors of any corporation organized under the
provisions of this section may, semiannually, declare a
dividend of so much of the net profits of the corporation
as they shall judge expedient; but each corporation shall,
before the declaration of a dividend, carry one-tenth of
its net profits of the preceding half year to its surplus
fund until the same shall amount to 20 per centum of its
capital stock.
A n y corporation organized under the provisions of this
section shall be subject to tax by the State within which
its home office is located in the same manner and to the
same extent as other corporations organized under the
laws of that State which are transacting a similar char
acter of business. The shares of stock m such corpora
tion shall also be subject to tax as the personal property
of the owners or holders thereof in the same manner and
to the same extent as the shares of stock in similar State
corporations.
A n y corporation organized under the provisions of
this section may at any time within the two years next
previous to the date of the expiration of its corporate
existence, by a vote of the shareholders owning twothirds of its stock, apply to the Federal Reserve Board
for its approval to extend the period of its corporate
existence for a term of not more than twenty years, and
upon certified approval of the Federal Reserve Board
such corporation shall have its corporate existence for
such extended period unless sooner dissolved by the act
of the shareholders owning two-thirds of its stock, or by
an A ct of Congress or unless its franchise becomes for
feited by some violation of law.
Any bank or banking institution, principally engaged
in foreign business, incorporated by special law of any
State or of the United States or organized under the
general laws of any State or of the United States and
having an unimpaired capital sufficient to entitle it to
become a corporation under the provisions of this sec
tion may, by the vote of the shareholders owning not less
than two-thirds of the capital stock of such bank or
banking association, with the approval of the Federal
Reserve Board, be converted into a Federal corporation

THE FEDERAL RESERVE ACT.

o f the kind authorized by this section with any name
approved by the Federal Reserve B oard: Provided, how
ever, That said conversion shall not be in contravention
o f the State law. In such case the articles o f association
and organization certificate may be executed by a ma
jority o f the directors o f the bank or banking institution,
and the certificate shall declare that the owners o f at
least two-thirds o f the capital stock have authorized the
directors to make such certificate and to change or con
vert the bank or banking institution into a Federal cor
poration. A majority o f the directors, after executing
the articles o f association and the organization certifi
cate, shall have power to execute all other papers and to
do whatever may be required to make its organization
perfect and complete as a Federal corporation. The
shares o f any such corporation may continue to be for
the same amount each as they were before the conver
sion, and the directors may continue to be directors o f
the corporation until others are elected or appointed in
accordance with the provisions o f this section. W hen
the Federal Reserve Board has given to such corpora
tion a certificate that the provisions o f this section have
been complied wTith, such corporation and all its stock
holders, officers, and employees, shall have the same pow
ers and privileges, and shall be subject to the same duties,
liabilities, and regulations, in all respects, as shall have
been prescribed by this section for corporations origi
nally organized hereunder.
Every officer, director, clerk, employee, or agent o f any
corporation organized under this section who embezzles,
abstracts, or w illfully misapplies any o f the moneys,
funds, credits, securities, evidences o f indebtedness or
assets o f any character o f such corporation; or who,
without authority from the directors, issues or puts forth
any certificate o f deposit, draws any order or bill o f
exchange, makes any acceptance, assigns any note, bond,
debenture, draft, bill o f exchange, mortgage, judgment,
or decree; or who makes any false entry in any book, re
port, or statement o f such corporation with intent, in
either case, to injure or defraud such corporation or any
other company, body politic or corporate, or any indi
vidual person, or to deceive any officer o f such corpora
tion, the Federal Reserve Board, or any agent or ex
aminer appointed to examine the affairs o f any such
corporation; and every receiver o f any such corporation
and every clerk or employee o f such receiver who shall
embezzle, abstract, or w illfully misapply or w rongfully
convert to his own use any moneys, funds, credits, or
assets o f any character which may come into his posses
sion or under his control in the execution o f his trust or
the performance o f the duties o f his employment; and
every such receiver or clerk or employee o f such receiver
who shall, with intent to injure or defraud any person,
body politic or corporate, or to deceive or mislead the
Federal Reserve Board, or any agent or examiner ap

THE FEDERAL RESERVE ACT.

175

pointed to examine the affairs o f such receiver, shall
make any false entry in any book, report, or record o f
any matter connected with the duties o f such receiver;
and every person who with like intent aids or abets any
officer, director, clerk, employee, or agent o f any corpora
tion organized under this section, or receiver or clerk or
employee o f such receiver as aforesaid in any violation
o f this section, shall upon conviction thereof be impris
oned for not less than two years nor more than ten years,
and may also be fined not more than $5,000, in the dis
cretion o f the court.
Whoever being connected in any capacity with any
corporation organized under this section represents in
any way that the United States is liable for the payment
o f any bond or other obligation, or the interest thereon,
issued or incurred by any corporation organized here
under, or that the United States incurs any liability in
respect o f any act or omission o f the corporation, shall
be punished by a fine o f not more than $10,000 and by im
prisonment for not more than five years.
REPEAL OF PROVISIONS OF LAW INCONSISTENT WITH
THE PROVISIONS OF THE FEDERAL RESERVE ACT.

626. Sec. 26.— A ll provisions o f law inconsistent with ^ A c t Dec.
or superseded by any o f the provisions o f this A ct are to as ’stat.*
that extent and to that extent only hereby repealed: 274.
Provided, Nothing in this A ct contained shall be con
strued to repeal the parity provision or provisions con
tained in an A ct approved March fourteenth, nineteen
hundred, entitled “ An Act to define and fix the standard
o f value, to maintain the parity o f all forms o f money
issued or coined by the United States, to refund the public
debt, and for other purposes,” and the Secretary o f the
Treasury may, for the purpose o f maintaining such parity
and to strengthen the gold reserve, borrow gold on the
security o f United States bonds authorized by section two
o f the A ct last referred to or for one-vear gold notes
bearing interest at a rate o f not to exceed three per
centum per annum, or sell the same if necessary to obtain
gold. When the funds o f the Treasury on hand justify,
he may purchase and retire such outstanding bonds and
notes.

23,
l. |

ACT OF MAY 80, 1908, EXTENDED TO JUNE 30, 1915.
REENACTMENT OF CERTAIN SECTIONS OF REVISED
STATUTES.

627. Sec. 27.— The provisions o f the A ct o f May thir- 19Act Dec. 2S,
tieth, nineteen hundred and eight, authorizing national 38 stat.* l . ’,
currency associations, the issue o f additional national- 27i ct Aug. 4,
bank circulation, and creating a National Monetary Com- l91^ * 8 Stat*
mission, which expires by limitation under the terms o f
such A ct on the thirtieth day o f June, nineteen hundred
and fourteen, are hereby extended to June thirtieth, nine
teen hundred, and fifteen, and sections fifty-one hundred

176

THE FEDERAL RESERVE ACT.

and fifty-three, fifty-one hundred and seventy-two, fiftyone hundred and ninety-one, and fifty-two hundred and
fourteen of the Revised Statutes of the United States,
which were amended by the A ct of May thirtieth, nine
teen hundred and eight, are hereby reenacted to read as
such sections read prior to May thirtieth, nineteen hun
dred arid eight, subject to such amendments or modifica
tions as are prescribed in this A c t :
BATE OF TAXATION ON CIRCULATING NOTES SECURED
OTHERWISE THAN BY BONDS OF THE UNITED STATES.
WHEN SECRETARY OF TREASURY AUTHORIZED TO
SUSPEND LIMITATIONS OF ACT OF MAY 30, 1908.
1013 ,1
1 sec?’

27;

627a. Provided , however, That section nine of the A ct

38^ ’stat.’ l . ’ first referred to in this section is hereby amended so as to
Act Aug. 4, change the tax rates fixed in said A ct by making the por-

’ tion applicable thereto read as follow s:
National banking associations having circulating notes
secured otherwise than by bonds of the United States,
shall pay for the first three months a tax at the rate o i
three per centum per annum upon the average amount
of such of their notes in circulation as are based upon
the deposit of such securities, and afterwards an addi
tional tax rate of one-half of one per centum per annum
for each month until a tax of six per centum per annum
is reached, and thereafter such tax of six per centum
per annum upon the average amount of such notes: P ro
vided further, That whenever in his judgment he may
deem it desirable, the Secretary of the Treasury shall
have power to suspend the limitations imposed by sec
tion one and section three of the A ct referred to in this
section, which prescribe that such additional circulation
secured otherwise than by bonds of the United States
shall be issued only to National banks having circulating
notes outstanding secured by the deposit of bonds of the
United States to an amount not less than forty per
centum of the capital stock of such banks, and to suspend
also the conditions and limitations of section five of said
A ct except that no bank shall be permitted to issue circu
lating notes in excess of one hundred and twenty-five per
centum of its unimpaired capital and surplus. He shall
require each bank and currency association to maintain
on deposit in the Treasury of the United States a sum in
gold sufficient in his judgment for the redemption of such
notes, but in no event less than five per centum. He may
permit National banks, during the period for which
such provisions are suspended, to issue additional circula
tion under the terms and conditions of the A ct referred
to as herein amended: Provided further, T hat the Secre
tary of the Treasury, in his discretion, is further author
ized to extend the benefits o f this A ct to all qualified
State tmnks and trust companies, which have joined the
Federal reserve system, or which may contract to join
within fifteen days after the passage of this Act.

THE FEDERAL RESERVE ACT.

177

REDUCTION OF CAPITAL OF NATIONAL BANKS.

628. Sec. 28.— Section fifty-one hundred and forty-three 19ig* 2c?’ $i\
o f the Revised Statutes is hereby amended and reenacted 38^ ’stat. u,
to read as follow s: A ny association formed under this
title may, by the vote o f shareholders owning two-thirds
o f its capital stock, reduce its capital to any sum not be
low the amount required by this title to authorize the
formation o f associations; but no such reduction shall be
allowable which will reduce the capital o f the association
below the amount required for its outstanding circula
tion, nor shall any reduction be made until the amount
o f the proposed reduction has been reported to the Comp
troller o f the Currency and such reduction has been ap
proved by the said Comptroller o f the Currency and by
the Federal Reserve Board, or by the organization com
mittee pending the organization o f the Federal Reserve
Board.
INVALIDATION OF CLAUSE, ETC., IN ACT NOT TO INVALI
DATE REMAINDER OF ACT.

629. Sec. 29.— I f any clause, sentence, paragraph, or 1QAct Dec. 23,
part o f this A ct shall for any reason be adjudged by any 38 ’stat.’
court o f competent jurisdiction to be invalid, such judg- 275*
ment shall not affect, impair, or invalidate the remainder
o f this Act, but shall be confined in its operation to the
clause, sentence, paragraph, or part thereof directly in
volved in the controversy in which such judgment shall
have been rendered.
RESERVATION OF RIGHT TO AMEND OR REPEAL.

•i
_ _
_ . Act Dec. 23,
630. Sec. 30.— The right to amend, alter, or repeal this 3i9i3^sec 30;
A ct is hereby expressly reserved.
275. a
164312°— 20------ 12

THE FEDERAL RESERVE ACT.

ACTS OF GENERAL NATURE.

178

CHAPTER VII.
A C T S O F A G E N E R A L N A T U R E A N D S E C T IO N S O F T H E R E V IS E D S T A T U T E S ,
N O T IN C L U D E D IN T H E N A T IO N A L B A N K A C T , A F F E C T I N G N A T IO N A L
BANKS.

700. District attorney to conduct suits
when United States is a party.
701. Jurisdiction of district court to en
join Comptroller.
702. Where such proceedings must be
brought.
703. Sealed certificates of Comptroller
competent evidence.
704. Certified copy of organization cer
tificate as evidence.
705-715. Tax on State bank circulation.
716-717. Tax on United States and na
tional bank notes.

718. Restrictions on notes less than one
dollar.
719-729. Legal tender.
730-738. Government depositaries.
739-748. Offenses against the currency.
749-762. Currency act March 14, 1900.
763-766. Act March 4, 1907.
767-768. Panama Canal bonds.
769-770. Certified checks when receiva
ble for duties and taxes.
771. Subscriptions to Red Cross.

ALL SUITS UNDER BANKING LAW IN WHICH THE UNITED
STATES OR ANY OF ITS OFFICERS OR AGENTS ARE
PARTIES TO BE CONDUCTED BY DISTRICT ATTOR
NEYS UDER THE SUPERVISION OF THE SOLICITOR
OF THE TREASURY.

700. Sec. 380.— All suits and proceedings arising out
of the provisions of law governing national banking associations, in which the United States or any of its officers
or agents shall be parties, shall be conducted by the district attorneys of the several districts under the direction
and supervision of the Solicitor of the Treasury.

18£3C* 5|c*e-c 25,
55.
i2 Stat.L.,68o.
igM^.iwJSo.5^
13stat*L*»116*

N o t e . —The United States Supreme Court decided in the case of
Gibson v. Peters (150 U. S., 342) that a district attorney could not
receive any compensation for services in conducting a suit arising
out of the provisions of the national banking laws in which the United
States or any of its officers or agents are parties.

JURISDICTION OF DISTRICT COURT TO ENJOIN COMP
TROLLER.

701.
Sec. 24.—
The district court shall have original
5i i K ! 9}1
•
•
i* 11
S8C.44, o v o ta liii*!
j unsdiction as iollow s:
1092.
Sixteenth. Of all cases commenced by the United
States, or by direction of any officer thereof, against any
national banking association, and cases for winding up
the affairs of any such bank; and of all suits brought by
any banking association established in the district for
which the court is held, under the provisions of title
“ National Banks,” Revised Statutes, to enjoin the
Comptroller of the Currency, or any receiver acting under
his direction, as provided by said title. And all national
banking associations established under the laws of the
United States shall, for the purposes of all other actions
by or against them, real, personal, or mixed, and all suits

181

ACTS OF GENERAL NATURE.

182

in equity, be deemed citizens of the States in which they
are respectively located.
N o t e .—Proceedings to enjoin Comptroller are those authorized by
section 5237, United States Revised Statutes. Until the passage of the
act of March 3, 1911, the circuit courts had this jurisdiction under sec
tion 629, United States Revised Statutes.

WHERE SUCH PROCEEDINGS MUST BE BROUGHT.
iM 4Ctc.io 6 esecs’
60,57; 13 stat. l .,
115, lie.

®eCf 7**6.— ^ proceedings by any national banking association to enjoin the Comptroller of the Currency, under the provisions of any law relating to national
banking associations, shall be had in the district where
such association is located.
SEALED CERTIFICATES OF COMPTROLLER COMPETENT
EVIDENCE.

1864*0

iSmc

13 stat. l .’ ioo.‘ ’

Sec. 884.— Every certificate, assignment, and conveyance executed by the Comptroller of the Currency, in
ursuance of law, and sealed with his seal of office, shall
e received in evidence in all places and courts; and all
copies of papers in his office, certified by him and authen
ticated by the said seal, shall in all cases be evidence
equally with the originals. An impression of such seal
directly on the paper shall be as valid as if made on wax
or wafer.

CERTIFIED COPY OF ORGANIZATION CERTIFICATE AS
EVIDENCE.
1864*0 lolTsec 613stat. l.,*ioi.* ’

Sec. 885.— Copies of the organization certificate of
any national banking association, duly certified by the
Comptroller of the Currency, and authenticated by his
seal of office, shall be evidence in all courts and places
within the jurisdiction of the United States of the exist
ence of the association, and of every matter which could
be proved by the production of the original certificate.
T A X ON STATE B AN K CIRCU LATIO N .

TAX ON CIRCULATION.

705. Sec. 3408.—
N o t e .— The tax on circulation was originally provided for in the act
of June 30, 1864. The taxation provisions were amended by section 6
of the act of March 3,1865, by section 9 of the act of July 13, 1866, and
by the act of June 6,1872, section 37. The provisions as thus amended
were incorporated in the Revised Statutes as section 3408. This sec
tion included three subsections, the first imposing a tax on deposits,
the second on capital, and the third on circulation of banking institu
tions. The first and second subsections of this section were repealed
by the act of March 3,1883, and the third subsection was superseded by
the act of February 8, 1875.

CIRCULATION—WHEN EXEMPTED FROM TAX.

c
mo ’ i418?i
®ec* 3411.— Whenever the outstanding circulation
stst/L. 486.' of any bank, association, corporation, company, or person
i866Ctc. iw ls e c 1*); is reduced to an amount not exceeding five per centum of
14 sUt. L.’f 146. ^he chartered or declared capital existing at the time the
same was issued, said circulation shall be free from taxa-

183

ACTS OF GENERAL NATURE.

tion; and whenever any bank which has ceased to issue
notes for circulation deposits in the Treasury of the United
States, in lawful money, the amount of its outstanding
circulation, to be redeemed at par, under such regulations
as the Secretary of the Treasury shall prescribe, it shall
be exempt from any tax upon such circulation.
707. Secs. 3412, 3413.—
Superseded by act February 8, 1875.

TAX ON CIRCULATION—ACT FEBRUARY 8, 1875.

708. Sec. 19.— That every person, firm, association c
other than national bank associations, and every corpora- s'tat.X 311.'
tion, State bank, or State banking association, shall pay a
tax of ten per centum on the amount of their own notes
used for circulation and paid out by them.
TAX ON NOTES OF STATE BANKS, MUNICIPAL CORPO
RATIONS, ETC., USED AS CIRCULATION AND PAID
OUT BY BANKS. ACT FEBRUARY 8, 1875.

709. Sec. 20.— That
every
such person,
firm, associa-n
^ •^1.87,5j
ni i
i
i i - i *
•
c. 36, sec. 20; 18
tion, corporation, State bank, or State banking associa- stat. l., 311.
tion, and also every national banking association, shall
pay a like tax of ten per centum on the amount of notes
of any person, firm, association other than a national
banking association, or of any corporation, State bank, or
State banking association, or of any town, city, or munici
pal corporation, used for circulation and paid out by them.
BANKS' RETURNS; PAYMENT OF TAX PENALTIES.
FEBRUARY 8, 1875.

ACT

710. Sec. 21.— That the amount of such circulating se^ 2l Fi8bstit8if'
notes, and of the tax due thereon, shall be returned, and 311!
the tax paid at the same time, and in the same manner,
and with like penalties for failure to return and pay the
same, as provided by law for the return and payment of
taxes on deposits, capital, and circulation, imposed by the
existing provisions of internal-revenue law.
SEMIANNUAL RETURN BY BANKS.

711. Sec. 3414.— A true and complete return of the 18^ctc Jj“ e
monthly amount of circulation, [of deposits, and of capi- 110;'13 ‘ stat. l.',
tal], as aforesaid, and of the m onthly amount of notes of 27Act July 13,
persons, town, city, or municipal corporations, State
banks, or State banking associations paid out as aforesaid Act *Mar. 26,
for the previous six months, shall be made and rendered in Jsstat.*I’. X ' 2’
duplicate on the first day of December and the first day 18^ctc
^
of June, by each of such banks, associations, corporations, 37; ' 17*stat. l .‘,
companies, or persons, with a declaration annexed thereto, ^Act Dec 24,
under the oath of such person, or of the president or Jf|{act* j|;
5;
cashier of such bank, association, corporation, or com
pany, in such form and manner as may be prescribed by
the Commissioner of Internal Revenue, that the same
contains a true and faithful statement of the amounts

184

ACTS OF GENERAL NATURE.

subject to tax, as aforesaid; and one copy shall be trans
mitted to the collector of the district in which any such
bank, association, corporation, or company is situated, or
in which such person has his place of business, and one
copy to the Commissioner of Internal Revenue.
N ote .—Italicized words repealed b y act March 3, 1883. “ That the
taxes herein specified imposed by the laws now in force be, and the same
are hereby, repealed, as hereinafter provided, namely: On capital and
deposits of banks, bankers, and national banking associations, except
such taxes as are now due and payable.”

FAILURE TO MAKE RETURN.
MATE.

COMMISSIONER TO ESTI

sw.
Sec. 3415.— In default of the returns provided in
no;' 13 sta{. l.* the preceding section, the amount of circulation, [deposit,
27Act July 13, capital], and notes of persons, towns, city, and municipal
Ifstat xl *we9; corporations, State banks, and State banking associations
Act *d «c. 24, paid out, as aforesaid, shall be estimated by the Commis£ , 4<S.2: sioner of Internal Revenue, upon the best information he
can obtain. And for any refusal or neglect to make
return and payment, any such bank, association, corpora
tion, company, or person so in default shall pay a penalty
of two hundred dollars, besides the additional penalty and
forfeitures provided in other cases.
N ote .—See note under preceding section.

STATE BANKS CONVERTED INTO NATIONAL BANKS;
RETURNS, HOW MADE.

c
stat/L., 486. *
i866Ctc.
14stat. l . ' 1*6.

®ec* 3416.— Whenever any State bank or banking
association has been converted into a national banking
association, and such national banking association has
assumed the liabilities of such State bank or banking
association, including the redemption of its bills, by any
agreement or understanding whatever with the representa
tives of such State bank or banking association, such
national banking association shall be held to make the
required return and payment on the circulation outstand
ing, so long as such circulation shall exceed five per
centum of the capital before such conversion of such State
bank or banking association.
TAX PROVISIONS RESTRICTED.

iuwctc.Ji73® s®cl ^14:. Sec. 3417 [as amended 1875].— The provisions of
no;'13 sut. l.\ this chapter relating to the tax on the [deposits, capital,
mAct July 13, and] circulation of banks and to their returns, except as
9^1 statjl' 146*contained in sections thirty-four hundred and ten, thirty’Act Fib.* is) four hundred and eleven, thirty-four hundred and twelve,
18Stat’ thirty-four hundred and thirteen, and thirty-four hun
dred and sixteen, and such parts of sections thirty-four
hundred and fourteen and thirty-four hundred and fif
teen as relate to the tax of ten per centum on certain notes,
shall not apply to associations which are taxed under and
b y virtue o f Title “ National Banks.”
N ote .—See note under section 3414 stating that taxes on deposits
and capital were repealed by act March 3, 1883.

ACTS OF GENERAL NATURE.

TAXES ON INSOLVENT BANKS.

185

ACT MARCH 1, 1879.

715. Sec. 22.— That whenever and after any bank has c
ceased to do business by reason of insolvency or bank- stat. L, 351. '
ruptcy, no tax shall be assessed or collected, or paid into
the Treasury of the United States, 011 account of such
bank, which shall diminish the assets thereof necessary
for the full payment of all its depositors; and such tax
shall be abated from such national banks as are found by
the Comptroller of the Currency to be insolvent; and the
Commissioner of Internal Revenue, when the facts shall
so appear to him, is authorized to remit so much of said
tax against insolvent State and savings banks as shall be
found to affect the claims of their depositors.
N o t e .—Part

of section omitted superseded by act of March 3, 1883.

TA X ON UNITED STATES AND NATIONAL BANK NOTES.

OBLIGATIONS OF UNITED STATES EXEMPT FROM TAXA
TION.

716. Sec. 3701.— All stocks, bonds, Treasury notes, and 18£2ctc
other obligations of the United States, shall be exempt 12 dt&t. L, 34a!
from taxation by or under State or municipal or local £ct73?a^ ' IfS
authority.
sec. 1; 13 Stat. L., 13. Act June 30,1864, c. 172, sec. 1; 13 Stat. L., 218. Act Jan. 28, 1865,
c. 22, sec. 1; 13 Stat. L., 425. Act Mar. 3,1865, c. 77, sec. 2; 13 Stat. L., 469. Act July 14,
1870, c. 256, sec. 1; 16 Stat. L., 272.

NATIONAL-BANK NOTES AND NOTES AND CERTIFICATES
OF THE UNITED STATES CIRCULATING AS CURRENCY
SUBJECT TO STATE TAXATION. ACT AUGUST 13,1894.

717. Sec. 1.— That circulating notes of national bank- 18^cts^ ugi. ^5
ing associations and United States legal-tender notes and stat. l . , 278. ’
other notes and certificates of the United States payable
on demand and circulating or intended to circulate as
currency and gold, silver or other coin shall be subject
to taxation as money on hand or on deposit under the
laws of any State or Territory: Provided, That any such
taxation shall be exercised in the same manner and at the
same rate that any such State or Territory shall tax money
or currency circulating as money within its jurisdiction.
S e c. 2. That the provisions of this act shall not be 18^ct
^
deemed or held to change existing laws in respect of the stat. l ., m ’
taxation of national banking associations.
RESTRICTIONS ON NOTES LESS THAN ONE DOLLAR.

718. Sec. 3583.—
Superseded by section 178, act March 4, 1909.
S ec. 178. No person shall make, issue, circulate, or lg**

pay out any note, check, memorandum, token, or other
obligation for a less sum than one dollar, intended to c. 321
circulate as money or to be received or used in lieu of statlawful money of the United States; and every person so
offending shall be fined not more than five hundred dol
lars, or imprisoned not more than six months, or both.
N o t e .— This restriction is held to apply only to checks issued for
the purpose of circulating as money and not to checks issued in the
ordinary course of business.

s £ '“ife; 35

1122«

186

ACTS OF GENERAL NATURE.
LEGAL TEN DER.

FOREIGN COINS.
1857*0. 5 6 mc 2\*
11 stat. l ! , 163. ’

®ec. 3584.— No foreign gold or silver coins shall
be a legal tender in payment of debts.
Note.—The coinage by the government of Philippine Islands of the
various silver and minor coins for use in the islands is authorized and
the legal-tender quality of such coins as well as of the gold coins of the
United States in the islands is prescribed by the act of July 1, 1902,
c. 1369, secs. 76-83; 32 Stat. L., 710; and the act of March 2, 1903, c.
980, sec. 4; 32 Stat. L., 953.
GOLD COIN OF THE UNITED STATES.

israfc/m, se£
14; *17 stat. L.‘,

^ 0 . Sec. 3585.— The gold coins of the United States
shall be a legal tender in all payments at their nominal
value when not below the standard weight and limit of
tolerance provided b y law for the single piece, and when,
reduced in weight below such standard and tolerance,
shall be a legal tender at valuation in proportion to their
actual weight.
721. Sec. 3586.—
[Superseded by res. July 22, 1876, No. 17, sec. 2; act Feb. 28, 1878,
c. 20, sec. 1; act June 9, 1879, c. 12, sec. 3.]
AUTHORIZING COINAGE OF STANDARD SILVER DOLLARS
AND MAKING THEM LEGAL TENDER. ACT OF FEB
RUARY 28, 1878.

1878*0. M^sec.2?!
20 stat. l ’., 25. ’

^ 2 . Sec. I.— 1That there shall be coined, at the several
mints of the United States, silver dollars of the weight of
412J grains Troy of standard silver, as provided in the
act of January 18, 1837, on which shall be the devices
and superscriptions provided b y said act; which coins
together with all silver dollars heretofore coined b y the
United States, of like weight and fineness, shall be a
legal tender, at their nominal value, for all debts and
dues public and private, except where otherwise ex
pressly stipulated in the contract.
SUBSIDIARY SILVER COINS.

1879*0

ACT JUNE 9, 1879.

i^ec. 3* ?23. Sec. 3.— That the present silver coins of the United
8. * ’ States of smaller denominations than one dollar shall
hereafter be a legal tender in all sums not exceeding ten
dollars in full payment of all dues public and private.

21 stat. l ! ,

MINOR COINS.
i 873Ctc Fm, sec!
16; 17 ‘ stat. l . ‘,

^ 4 . Sec. 3587.— The minor coins of the United States
shall be a legal tender, at their nominal value for any
amount not exceeding twenty-five cents in any one pay
ment.
UNITED STATES NOTES.

^®5. Sec. 3588.— United States notes shall be lawful
money, and a legal tender in payment of all debts, public
i 862^c. 142, sec.^i; and private, within the United States, except for duties
Res Jan i7’i863* on imPorts and interest on the public debt.
i 862*c. S baec*ij
12 stat. l.\ 345. ’

No. 9,12 Stat. L .’ 823. Act Mar. 3,1863, c. 73, sec. 3; 12 Stat. L., 711.

187

ACTS OF GENERAL NATURE.

DEMAND TREASURY NOTES.

Act

July

17,

726. Sec. 3589.— Demand Treasury notes authorized by
the act o f July 17, 1861, chapter 5 , and the act o f Febru- Act Feb. 12,
ary 12, 1862, chapter 20, shall be lawful money and a stat/ CL, W
legal tender in like manner as United States notes.
^
CF|3*. “ j;
1; 12 Stat. L., 345. Act Mar. 17, 1862, c. 46, sec. 2; 12* Stat. L., 37.*

INTEREST-BEARING NOTES.

727. Sec. 3590.— Treasury notes issued under the au
thority o f the acts o f March 3,1863, chapter 73, and June
30, 1864, chapter 172, shall be legal tender to the same
extent as United States notes, for their face value, ex- Act Mar. 3.
eluding interest: Provided, That Treasury notes issued 2®1
under the act last named shall not be a legal tender in 710.^
^
payment or redemption o f any notes issued by any bank, 1864, c!nei 72,*
banking association, or banker, calculated and intended L .^ 2i k 13 S ta t*
to circulate as money.
FOR WHAT DEMANDS NATIONAL-BANK NOTES MAY BE
RECEIYED.

728. Sec. 5182.—
N

—See section 5182, national-bank act, paragraph 337, ante.

ote.

GOLD CERTIFICATES. ACT JULY 12, 1882.

A ct Ju ly 12,

729. Sec. 12.— That the Secretary o f the Treasury is |8|^t s£c- ^
authorized and directed to receive deposits o f gold coin
a ' *’
with the Treasurer or assistant treasurers o f the United
States, in sums o f not less than twenty dollars, and to
issue certificates therefor in denominations o f not less
than twenty dollars each, corresponding with the de
nominations o f United States notes. The coin deposited
for or representing the certificates o f deposits shall be
retained in the Treasury for the payment o f the same on
demand. Said certificates shall be receivable for cus
toms, taxes, and all public dues, and when so received
may be reissued; and such certificates, as also silver cer
tificates, when held by any national banking association,
shall be counted as part o f its lawful reserve; and no
national banking association shall be a member o f any
clearing house in which such certificates shall not be re
ceivable in the settlement o f clearing-house balances:
Provided, That the Secretary o f the Treasury shall sus
pend the issue o f such gold certificates whenever the
amount o f gold coin and gold bullion in the Treasury
reserved for the redemption o f United States notes falls
below one hundred millions o f dollars; and the provi
sions o f section fifty-two hundred and seven o f the Re
vised Statutes shall be applicable to the certificates herein
authorized and directed to be issued.
730. Sec. 1.— That gold certificates o f the United 19^9ct Dec* 24*
States payable to bearer on demand shall be and are
hereby made legal tender in payment o f all debts and
dues, public and private.

188

ACTS OF GENERAL NATURE.

Sec. 2. That all acts or parts o f acts which are incon
sistent with this act are hereby repealed.
N o t e .—See section 6 of the currency act of March 14, 1900, as
amended March 4,1907, March 2,1911, and June 12,1916, paragraph 754,
post, for additional provisions relating to gold certificates and making
$10 lowest denomination. Gold and silver certificates are not legal
tender, but are receivable for all public dues.
GOVERNMENT DEPOSITARIES.

DUTY OF DISBURSING OFFICERS.

Act

730. Sec. 3620 [as amended 1877].— I t shall be the duty

lec. i ; 14 stat! o f every disbursing officer having any public money in-

L”Act* Peb 27, trusted to him for disbursement, to deposit the same with
18c 7i 19 stat*
Treasurer or some one o f the assistant treasurers o f
L^'249.1 ta the United States, and to draw fo r the same only as it
may be required for payments to be made by him m pur
suance o f la w ; and draw fo r the same only in favor o f
the persons to whom payment is made, and all transfers
from the Treasurer o f the United States to a disbursing
officer shall be by draft or warrant on the Treasury or
an assistant treasurer o f the United States. In places,
however, where there is no Treasurer or assistant treas
urer, the Secretary o f the Treasury may, when he deems
it essential to the public interest, specially authorize in
writing the deposit o f such public money in any other
public depository, or, in writing, authorize the same to be
kept in any other manner, and under such rules and
regulations as he may deem most safe and effectual to
facilitate the payments to public creditors.
N ote.— See also act March 2, 1907, 34 Stat. L., 1166, author
izing Army officers to keep in their possession restricted amounts
of public funds. See also act December 23, 1913, section 15, para
graph 734, post.

PROVISIONS FOR DEPOSIT BY CERTAIN POSTMASTERS.
Act Mar. 3, 731. Sec. 3847 [as amended 1908].— A ny postmaster,
i?73,stat. 27l.! having public money belonging to the'Government, at an
60Act May 27
within a city or town where there is no Treasurer or
1908
.r t xc.. i . 206
; Assistant Treasurer o f the / United OStates, or designated
OF
r
415.
* ’’ depositary, may deposit the same temporarily, at his own
risk and in his official capacity, in any national or State
bank in the State in which the said postmaster resides,
or in which his office is located, or within a reasonable
radius o f his post office in an adjacejit State, but no
authority or permission is or shall be given for the pay
ment to or receipt by a postmaster or any other person,
o f interest, directly or indirectly, on any deposit made
as herein described.
MISAPPROPRIATING POSTAL FUNDS OR PROPERTY;
PUNISHMENT FOR; PRIMA FACIE EVIDENCE; DEPOS
ITS, ETC., PERMITTED.

732. Sec. 4046.— (Originally enacted June 8, 1872.)
Superseded by sec. 225, act of March 4, 1909.

ACTS OF GENERAL NATURE.

189

Sec. 225.— Whoever, being a postmaster or other per- 19^ctc
se£
son employed in or connected with any branch o f the 225; 35’ stat. l . ;
postal service, shall loan, use, pledge, hypothecate, or 1133‘
convert to his own use, or shall deposit in any bank, or
exchange for other funds or property, except as author
ized by law, any money or property coming into his hands
or under his control in any manner whatever, in the exe
cution or under color o f his office, employment, or service,
whether the same shall be the money or property of the
United States or not; or shall fail or refuse to remit to or
deposit in the Treasury of the United States or in a desig
nated depository, or to account for or turn over to the
proper officer or agent, any such money or property,
when required so to do by law or the regulations of the
Post Office Department, or upon demand or order of the
Postmaster Genera1 111
or through a duly
authorized officer
deemed guilty of
embezzlement; and every such person, as well as every
other person advising or knowingly participating therein,
shall be fined in a sum equal to the amount or value of the
money or property embezzled, or imprisoned not more
than ten years, or both. A ny failure to produce or to pay
over any such money or property, when required so to do
as above provided, shall be taken to be prima facie evi
dence of such embezzlement; and upon the trial of any
indictment against any person for such embezzlement, it
shall be prima facie eviaence of a balance against him to
produce a transcript from the account books of the Audi
tor for the Post Office Department. But nothing herein
shall be construed to prohibit any postmaster depositing,
under the direction of the Postmaster General, m a na
tional bank designated by the Secretary of the Treasury
for that purpose, to his own credit as postmaster, any
funds in his charge, nor prevent his negotiating drafts or
other evidences of debt through such bank, or through
United States disbursing officers, or otherwise, when in
structed or required so to do by the Postmaster General,
for the purpose of remitting surplus funds from one post
office to another.
NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA
RIES OF PUBLIC MONEYS.

733. Sec. 5153 [as amended 1907].—
N o t e .— See section 5153 under “ National-bank act.,?

GOVERNMENT DEPOSITS.

734. Sec. 15.— The moneys held in the general fund of
the Treasury, except the five per centum fund for the l.,*265.’
redemption of outstanding national-bank notes and the
funds provided in this A ct for the redemption of Federal
reserve notes may, upon the direction of the Secretary of
the Treasury, be deposited in Federal reserve banks, which
banks, when required by the Secretary of the Treasury,
shall act as fiscal agents of the United States; and the
revenues of the Government or any part thereof may be

190

ACTS OF GENERAL NATURE.

deposited in such banks, and disbursements may be made
by checks drawn against such deposits.
No public funds o f the Philippine Islands, or o f the
postal savings, or any Government funds, shall be de
posited in the continental United States in any bank
not belonging to the system established by this A c t:
Provided, however, That nothing in this A ct shall be con
strued to deny the right of the Secretary of the Treasury
to use member banks as depositories.
DEPOSIT OF PROCEEDS ARISING FROM SALE OF BONDS,
NO RESERVE REQUIRED TO BE KEPT AGAINST UNITED
STATES DEPOSITS.

i9nctsecA?r* 241

735. Sec. 7.— That the Secretary of the Treasury, in his
discretion, is hereby authorized to deposit in such banks
and trust companies as he may designate the proceeds, or
any part thereof, arising from the sale of the bonds and
certificates o f indebtedness authorized by this Act, or the
bonds previously authorized as described in section four
of this Act, and such deposits may bear such rate of in
terest and be subject to such terms and conditions as the
Secretary of the Treasury may prescribe: Provided, That
the amount so deposited shall not in any case exceed
the amount withdrawn from any such bank or trust com
pany and invested in such bonds or certificates of indebt
edness plus the amount so invested by such bank or
trust company, and such deposits shall be secured in the
manner required for other deposits by section fifty-one
hundred and fifty-three, Revised Statutes, and amend
ments thereto: Provided further. That the provisions of
section fifty-one hundred and ninety-one of the Revised
Statutes, as amended by the Federal Reserve A ct and the
amendments thereof, with reference to the reserves re
quired to be kept by national banking associations and
other member banks of the Federal Reserve System, shall
not apply to deposits of public moneys by the United
States in designated depositaries.
GOVERNMENT DEPOSITS IN FEDERAL LAND BANKS.

i s o c Uly6; *39

stat*. l ., 3d5.’

^ 6 . Sec. 6 . — That all Federal land banks and joint stock
land banks organized under this Act, when designated for
that purpose by the Secretary of the Treasury, shall be
depositaries of public money, except receipts from cus
toms, under such regulations as may be prescribed by
said Secretary; and they may also be employed as finan
cial agents of the Government; and they shall perform
all su<3i reasonable duties, as depositaries of public money
and financial agents of the Government, as may be re
quired of them. And the Secretary of the Treasury shall
require of the Federal land banks and joint stock land
banks thus designated satisfactory security, by the deposit
of United States bonds or otherwise, for the safekeeping
and prompt payment of the public money deposited with
them, and for the faithful performance of their duties as
financial agents of the Government. No Government

ACTS OF GENERAL NATURE.

191

funds deposited under the provisions o f this section shall
be invested in mortgage loans or farm loan bonds.
PENALTY FOE UNAUTHORIZED DEPOSIT OF PUBLIC
MONEY.

737. Sec. 5488.—
Originally enacted Juno 34, 1860, see 14 Stat. L. 64.
by sec. 87 o f the act o f March 4, 1909.

Superseded

Sec. 87.— Whoever, being a disbursing officer of the
gJJl
United States, or a person acting as such, shall in any 2; stat. t<n'.
manner convert to his own use, or loan with or without 1909?c.
am,
interest, or deposit in any place or in any manner, except JJjg36 statas authorized b y law, any public money intrusted to him;
or shall, for any purpose not proscribed by law, withdraw
from the Treasurer or any assistant treasurer, or any au
thorized depositary, or transfer, or apply, any portion of
the public money intrusted to him, shall be deemed guilty
of an embezzlement of the money so converted, loaned,
deposited, withdrawn, transferred, or applied, and shall be
fined not more than the amount embezzled, or imprisoned
not more than ten years, or both.
N ote .— Sections 5489 to 5496 do not refer to national banks.

PENALTY FOR UNAUTHORIZED RECEIPT OR USE OF
PUBLIC MONEY.

738. Sec. £497.—
Originally enacted June 14, 1866 (14 Stat. L. 65), and amended by
act of February 3,1879 (20 Stat. L. 280). Superseded by sec. 96 of the
act of March 4, 1909.

Sec. 96.— Every banker, broker, or other person not an 19^ctsecMaj6. ^
authorized depositary of public moneys, who shall know- stat. l.,are.'
ingly receive from any disbursing officer, or collector of
internal revenue, or other agent of the United States, any
public money on deposit, or by way of loan or accommo
dation, with or without interest, or otherwise than in pay
ment of a debt against the United States, or shall use,
transfer, convert*, appropriate, or apply any portion of the
public m oney for any purpose not prescribed by law; and
every president, cashier, teller, director, or other officer of
any bank or banking association who shall violate any
provision of this section is guilty of embezzlement of the
public money so deposited, loaned, transferred, used, con
verted, appropriated, or applied, and shall be fined not
more than the amount embezzled, or imprisoned not more
than ten years, or both.
N ote .—For duties and liabilities of depositaries see note under sec.
5153, paragraph 243, ante.
OFFENSES AGAINST THE CURRENCY.

OBLIGATION OR OTHER SECURITY OF THE UNITED
STATES DEFINED.

739. Sec. 147.— The wrords “ obligation or other security 19^ctc
sec
of the United States” shall be held to mean all bonds, cer- 147;*35’ stat. l .;
tificates of indebtedness, national-bank currency, cou- ^c5*54i3^ s . des
pons, United States notes, Treasury notes, gold c e r t i f i - ^ ^ ’1^ 1^
silver certificates, fractional notes, certificates of ism.
Digitized forcates,
FRASER

192

ACTS OF GENERAL NATURE.

deposit, bills, checks, or drafts fo r money, drawn by or
upon authorized officers o f the United States, stamps and
other representatives o f value, o f whatever denomination,
which have been or may be issued under any A ct o f
Congress.
FORGING OR COUNTERFEITING SECURITIES; PUNISH
MENT FOR.

wojjfc. an* sec! *^0. Sec. 148.— Whoever, with intent to defraud, shall
148;'35*sta{. L.', falsely make, forge, counterfeit, or alter any obligation or
8ec5'54u“S r^
other security of the United States shall be fined not more
wiacte^ June'U ^ a n ^ve thousand dollars and imprisoned not more than
1864.
’ fifteen years.
COUNTERFEITING NATIONAL-BANK NOTES;
MENT FOR.

PUNISH

i909Ctc 321 *sec*
®ec*
— W hoever shall falsely make, forge, or
i49;'35'sta£ ^.counterfeit, or cause or procure to be made, forged, or
sec. 5415, IRj 3des counterfeited, or shall willingly aid or assist in falsely
enacted Feb .125 making, forging, or counterfeiting, any note in imitation
1863. Reenacted of; or purporting to be in imitation of, the circulating
June 3, 1864.
notes issued b y any banking association now or hereafter
authorized and acting under the laws of the United States;
or whoever shall pass, utter, or publish, or attempt to
pass, utter, or publish, any false, forged, or counterfeited
note, purporting to be issued by any such association do
ing a oanking business, knowing tne same to be falsely
made, forged, or counterfeited; or whoever shall falsely
alter, or cause or procure to be falsely altered, or shall
willingly aid or assist in falsely altering, any such circulat
ing notes, or shall pass, utter, or publish, or attempt to
pass, utter, or publish as true, any falsely altered or
spurious circulating note issued, or purporting to have
been issued, b y any such banking association, knowing
the same to be falsely altered or spurious, shall be fined not
more than one thousand dollars and imprisoned not more
than fifteen years.
USING PLATES TO PRINT NOTES WITHOUT AUTHORITY,
ETC.; DISTINCTIVE PAPER WITHOUT AUTHORITY;
PUNISHMENT FOR.

isrof c. an,' sec!
®ec* 1®®*— Whoever, having control, custody, or
uo; V st&t. l .*, possession of any plate, stone, or other thing, or any part
sec6*543o?Sfsdes thereof, from which has been printed, or which may be
enactecf June 3<? prepared by direction of the Secretary of the Treasury for
1864.
* the purpose of printing, any obligation or other security
of the United States, shall use such plate, stone, or other
thing, or any part thereof, or knowingly suffer the same to
be used for the purpose of printing any such or similar ob
ligation or other security, or any part thereof, except as
may be printed for the use of the United States b y order
of the proper officer thereof; or whoever by any way, art,
or means shall make or execute, or cause or procure to be
made or executed, or shall assist in making or executing
any plate, stone, or other thing in the likeness of any plate
designated for the printing of such obligation or other se
curity; or whoever shall sell any such plate, stone, or other
thing, or bring into the United States or any place subject

ACTS OF GENEKAL NATURE.

193

to the jurisdiction thereof, from any foreign place, any
such plato, stone, or other thing, except under the direc
tion of the Secretary of the Treasury or other proper offi
cer, or with any other intent, in either case, than that such
plate, stone, or othor thing be used for the printing of the
obligations or other securities of the United States; or
whoever shall have in his control, custody, or possession
any plate, stone, or other thing in any manner made after
or in the similitude of any plate, stone, or other thing,
from which any such obligation or other security has been
printed, with intent to use such plate, stone, or other
thing, or to suffer the same to be used in forging or coun
terfeiting any such obligation or other security, or any
part thereof; or whoever shall have in his possession or
custody, except under authority from the Secretary of the
Treasury or other proper officer, any obligation or other
security made or executed, in whole or in part, after the
similitude of any obligation or other security issued under
the authority of the United States, with intent to sell or
otherwise use the same; or whoever shall print, photo
graph, or in any other manner make or execute, or cause
to be printed, photographed, made, or executed, or shall
aid in printing, photographing, making, or executing any
engraving, photograph, print, or impression in the like
ness of any such obligation or other security, or any part
thereof, or shall sell any such engraving, photograph,
print, or impression, except to the United States, or shall
bring into the United States or any place subject to the
jurisdiction thereof, from any foreign place any such en
graving, photograph, print, or impression, except by direc
tion of some proper officer of the United States; or who
ever shall have or retain in his control or possession, after
a distinctive paper has been adopted by the Secretary of
the Treasury for the obligations and othor securities of the
United States, any similar paper adapted to the making
of any such obligation or other security, except under the
authority of the Secretary of the Treasury or some other
proper officer of the United States, shall be fined not more
than five thousand dollars, or imprisoned not more than
fifteen years, or both.
UTTERING, ETC., FORGED OBLIGATIONS; PUNISHMENT
FOR.

743. Sec. 151.— Whoever, with intent to defraud, shall 19^ f c. ^2Y' sec!
pass, utter, publish, or sell, or attempt to pass, utter, pub- isi.-V sta£ l.*,
lish, or sell, or shall bring into the United States or any sec6543Si??i.rss.des
place subject to the jurisdiction thereof, with intent to enwtidjSnV^
pass, publish, utter, or sell, or shall keep in possession or 1864.
conceal with like intent, any falsely made, forged, coun
terfeited, or altered obligation or other security of the
United States, shall be fined not more than five thousand
dollars and imprisoned not more than fifteen years.
164312°— 20------ 13

ACTS OF GENERAL NATURE.

194

TAKING IMPRESSIONS OF TOOLS, IMPLEMENTS, ETC.;
PUNISHMENT FOR.
1909*0. a a ’ sec!
JSec*
— W h o e v e r , w ith o u t a u th o r ity fr o m th e
i 52; V s t a f . l . ‘, U n i t e d S t a t e s , s h a l l t a k e , p r o c u r e , o r m a k e , u p o n l e a d ,
E k S W

fo il, w a x , p la s t e r , p a p e r , o r a n

oth er su b sta n ce or m a te -

e n ^ jt i/V e b 11/
a n im p r e s s io n , s t a m p , o r im p r in t o f, fr o m , o r b y t h e
1867.
' * u s e o f a n y b e d p la t e , b e d p ie c e , d ie , r o ll, p la t e , s e a l, t y p e , o r
o th e r t o o l, im p le m e n t, in s tr u m e n t, o r th in g u s e d o r fitte d
o r in t e n d e d t o b e u s e d in p r in t in g , s t a m p in g , o r im p r e s s
in g , o r in m a k in g o t h e r t o o ls , im p le m e n t s , in s tr u m e n t s , o r
t h in g s t o b e u s e d o r fit t e d o r in t e n d e d t o b e u s e d in p r in t
in g , s t a m p in g , o r im p r e s s in g a n y k in d
o b lig a tio n

oth er

s e c u r ity

a u th o r iz e d

o r h e re a fte r to

th e

o r d e s c r ip tio n

U n ite d

b e a u th o r iz e d

S ta te s

now

th e U n ite d

S ta te s , o r c ir c u la tin g n o t e o r e v id e n c e o f d e b t o f a n y b a n k
in g a s s o c ia t io n u n d e r t h e la w s t h e r e o f, s h a ll b e fin e d n o t
m o r e th a n fiv e th o u s a n d d o lla r s , o r im p r is o n e d n o t m o r e
th a n te n y e a rs, o r b o th .

HAVING UNLAWFUL POSSESSION
PUNISHMENT FOR.

OF IMPRESSIONS;

1909*c a a ’ sec!
®e c *
— W h o e v e r , w it h in t e n t t o d e fr a u d , s h a ll
153;'35' stai!. l . ’, h a v e i n h i s p o s s e s s i o n , k e e p i n g , c u s t o d y , o r c o n t r o l , w i t h sec.75 4 3 3 ^ ^ s f 68 o u t a u t h o r i t y f r o m t h e U n i t e d S t a t e s , a n y i m p r i n t , s t a m p ,
e n a c t© /^ e b !1/ or imPression, t a k e n o r m a d e u p o n a n y s u b s t a n c e o r m a t e 1867.
* ’ r ia l w h a ts o e v e r , o f a n y t o o l, im p le m e n t , in s tr u m e n t , o r
th in g , u s e d , o r fit t e d o r in t e n d e d t o b e u s e d , f o r a n y o f t h e
p u r p o s e s m e n t io n e d in t h e p r e c e d in g s e c t i o n ; o r w h o e v e r ,
w it h in t e n t t o d e fr a u d , s h a ll s e ll, g iv e , o r d e l i v e r a n y s u c h
im p r in t , s t a m p , o r im p r e s s io n t o a n y o t h e r p e r s o n , s h a ll
b e fin e d n o t m o r e t h a n fiv e t h o u s a n d d o lla r s , o r im p r is
o n e d n o t m o re th a n ten y ea rs, or b o th .

DEALING IN COUNTERFEIT SECURITIES; PUNISHMENT
FOR.
19^*0. an * sec!
S ec*
— W hoever
154;’ 35' sta£ l . ‘, t r a n s f e r , r e c e i v e , o r d e l i v e r

s h a ll b u y , s e ll, e x c h a n g e ,
a n y fa ls e , fo r g e d , c o u n t e r -

fe it e d , o r a lte r e d o b lig a t io n o r o t h e r s e c u r it y o f th e U n it e d
enactedg iFeb.U / S t a t e s , o r c i r c u l a t i n g n o t e o f a n y b a n k i n g a s s o c i a t i o n o r 1867.
* ' g a n iz e d o r a c t in g u n d e r t h e la w s t h e r e o f, w h ic h h a s b e e n
o r m a y h e r e a fte r b e is s u e d b y v ir t u e o f a n y A c t o f C o n
g re ss, w ith th e in te n t th a t th e s a m e b e p a s s e d , p u b lis h e d ,
o r u s e d as tr u e a n d g e n u in e , s h a ll b e fin e d n o t m o r e t h a n
fiv e th o u s a n d

d o lla r s , o r im p r is o n e d n o t m o r e t h a n

ten

years, or b oth .

CIRCULATING BILLS OF EXPIRED BANKS; PUNISHMENT
FOR; CIRCULATION PERMITTED.
1909*0 32?' sec!
®e c '
a^ ca ses w h e re th e ch a rte r o f a n v c o r174; V staf l . ’ p o r a t i o n w h i c h h a s b e e n o r m a y b e c r e a t e d b y A c t o f C o n g re s s h a s e x p ir e d o r m a y h e r e a fte r e x p ir e , if a n y d ir e c t o r ,
eaactw iJuiy ^ ° f f i c e r > o r a g © n t o f t h e c o r p o r a t i o n , o r a n y t r u s t e e t h e r e o f ,
1838.
' o r a n y a g e n t o f s u c h t r u s t e e , o r a n y p e r s o n h a v in g in h is
p o s s e s s io n o r u n d e r h is c o n t r o l t h e p r o p e r t y o f th e c o r p o -

ACTS OF GENERAL NATURE.

195

ration for the purpose of paying or redeeming its notes
and obligations, shall knowingly issue, reissue, or utter as
money, or in any other way knowingly put in circulation
any bill, note, check, draft, or other security purporting
to have been made by any such corporation whose charter
has expired, or by any officer thereof, or purporting to
have been made under authority derived therefrom, or if
any person shall knowingly aid in any such act, he shall be
fined not more than ten thousand dollars, or imprisoned
not more than five years, or both. But nothing herein
shall be construed to make it unlawful for any person, not
being such director, officer, or agent of the corporation,
or any trustee thereof, or any agent of such trustee, or any
person having in his possession or under his control the
property of the corporation for the purpose hereinbefore
set forth, who has received or may hereafter receive such
bill, note, check, draft, or other security, bona fide and in
the ordinary transactions of business, to utter as money or
otherwise circulate the same.
FRAUDULENT NOTES TO BE SO MARKED BY UNITED
STATES OFFICERS AND OFFICERS OF NATIONAL
BANKS. ACT JUNE 30, 1876.

748.
Sec. 5.— That all United States officers charged
with the receipt or disbursement of public moneys, and stat'. l ., k
all officers of national banks, shall stamp or write in plain
letters the word “ counterfeit” “ altered” or “ worthless,”
upon all fraudulent notes issued in the form of, and in
tended to circulate as money, which shall be presented at
their places of business; and if such officer shall wrong
fully stamp any genuine note of the United States, or of
the national banks, they shall, upon presentation, redeem
such notes at the face value thereof.

’

CURRENCY ACT, APPROVED MARCH 14, 1900.
749. Section 1. Gold dollar declared to be
standard unit of value.
750. Sec. 2. Secretary of Treasury to set
apart and maintain gold reserve
of one hundred and fifty million
dollars in gold coin and bullion
for the redemption of United
States notes and notes issued
under the act of July 14, 1890.
May sell bonds to replenish re
serve.
751. Sec. 3. Silver dollar to remain legal
tender.
752. Sec. 4. Divisions of issue and edemption established.
753. Sec. 5. When silver dollars are
coined from bullion purchased
under act of July 14, 1890, an
equal amount of Treasury notes
to be canceled and silver certifi
cates issued.

754 Sec. 6. Issue of gold certificates.
Issue of gold certificates payable
to order.
755. Sec. 7. Issue of silver certificates.
756. Sec. 8. Subsidiary silver coinage.
757. Sec. 9. Recoinage of uncurrent sub
sidiary silver coin.
758. Sec. 10. Amends section 5138, Re
vised Statutes. (See said sec
tion under national-bank act.)
759. Sec. 11. Refunding of United States
bonds.
760. Sec. 13. This section is inserted in
national-bank act following sec
tion 5171, which it supersedes.
761. Sec. 13. See sec. 5214, Revised Stat
utes, under national-bank act.
762. Sec. 14. International bimetallism.

An Act To define and fix the standard of value, to maintain the parity
of all forms of money issued or coined by the United States, to refund
the public debt, and for other purposes.

196

ACTS OF GENERAL NATURE.

GOLD DOLLAR DECLARED TO BE STANDARD UNIT OP
VALUE.
Act Mar.
1900, sec. 1;
Stat. L., 45.

749. Be it enacted by the Senate and House of Repre
sentatives of the United States of ’ America in Congress
assembled,, That the dollar consisting of twenty-five and
eight-tenths grains of gold nine-tenths fine, as established
by section thirty-five hundred and eleven of the Revised
Statutes of the United States, shall be the standard unit
of value, and all forms of money issued or coined by the
United States shall be maintained at a parity of value
with this standard, and it shall be the duty of the Secre
tary of the Treasury to maintain such parity.
SECRETARY OF TREASURY TO SET APART AND MAIN
TAIN A GOLD RESERVE OF ONE HUNDRED AND FIFTY
MILLION DOLLARS IN GOLD COIN AND BULLION FOR
THE REDEMPTION OF UNITED STATES NOTES AND
NOTES ISSUED UNDER ACT OF JULY 14, 1890. MAY
SELL BONDS TO REPLENISH RESERVE.

Act Mar.
1900, sec. 2;
Stat. L., 45.

750. Sec. 2.— That United States notes, and Treasury
notes issued under the A ct of July fourteenth, eighteen
hundred and ninety, when presented to the Treasury for
redemption, shall be redeemed in gold coin of the stand
ard fixed in the first section of this Act, and in order to
secure the prompt and certain redemption of such notes
as herein provided it shall be the duty of the Secretary of
the Treasury to set apart in the Treasury a reserve fund
of one hundred and fifty million dollars in gold coin and
bullion, which fund shall be used for such redemption
purposes only, and whenever and as often as any of said
notes shall be redeemed from said fund it shall be the
duty of the Secretary of the Treasury to use said notes so
redeemed to restore and maintain such reserve fund in
the manner following, to w^it: First, by exchanging the
notes so redeemed for any gold coin in the general fund of
the Treasury; second, by accepting deposits of gold coin
at the Treasury or at any subtreasury in exchange for the
United States notes so redeemed; third, by procuring gold
coin by the use of said notes, in accordance with the pro
visions of section thirty-seven hundred of the Revised
Statutes of the United States. If the Secretary of the
Treasury is unable to restore and maintain the gold coin
in the reserve fund by the foregoing methods, and the
amount of such gold coin and bullion in said fund shall at
any time fall below one hundred million dollars, then it
shall be his duty to restore the same to the maximum sum
of one hundred and fifty million dollars by borrowing
money on the credit of the United States, and for the
debt thus incurred to issue and sell coupon or registered
bonds of the United States, in such form as he may pre
scribe, in denominations of fifty dollars or any multiple
thereof, bearing interest at the rate of not exceeding three
er centum per annum, payable quarterly, such bonds to
e payable at the pleasure of the United States after one
year from the date of their issue, and to be payable, prin-

ACTS OF GENERAL NATURE.

197

cipal and interest, in gold coin of the present standard
value, and to be exempt from the payment of all taxes or
duties of the United States, as well as from taxation in
any form by or under State, municipal, or local author
ity ; and the gold coin received from the sale of said bonds
shall first be covered into the general fund of the Treas
ury and then exchanged, in the manner hereinbefore pro
vided, for an equal amount of the notes redeemed and
held for exchange, and the Secretary of the Treasury
may, in his discretion, use said notes in exchange for
gold, or to purchase or redeem any bonds of the United
States, or for any other lawful purpose the public in
terests may require, except that they shall not be used to
meet deficiencies in the current revenues. That United
States notes when redeemed in accordance with the pro
visions of this section shall be reissued, but shall be held
in the reserve fund until exchanged for gold, as herein
)rovided; and the gold coin and bullion in the reserve
und, together with the redeemed notes held for use as
provided in this section, shall at no time exceed the
maximum sum of one hundred and fifty million dollars.

N ote.— Section 7 of the Federal reserve act provides that the net
earnings derived by the United States from Federal reserve banks shall,
in the discretion of the Secretary, be used to supplement the gold reserve
held against outstanding United States notes, or shall be applied to the
reduction of the outstanding bonded indebtedness of the United States
under regulations to be prescribed by the Secretary of the Treasury.

SILVER DOLLAR TO REMAIN LEGAL TENDER.

751. Sec. 3.— That nothing contained in this A ct shall
^
be construed to effect the legal-tender quality as now pro- stat. l., 46.’
vided b y law of the silver dollar, or of any other money
coined or issued by the United States.
DIVISIONS OF ISSUE AND REDEMPTION ESTABLISHED.

752. Sec. 4.— That there be established in the Treasury 19^ct
^
Department, as a part of the office of the Treasurer of the stat l . , 46. ’
United States, divisions to be designated and known as
the division of issue and the division of redemption, to
which shall be assigned, respectively, under such regula
tions as the Secretary of the Treasury may approve, all
records and accounts relating to the issue and redemption
of United States notes, gold certificates, silver certificates,
and currency certificates. There shall be transferred
from the accounts of the general fund of the Treasury of
the United States, and taken up on the books of said di
visions, respectively, accounts relating to the reserve fund
for the redemption of United States notes and Treasury
notes, the gold coin held against outstanding gold certifi
cates, the United States notes held against outstanding
currency certificates, and the silver dollars held against
outstanding silver certificates, and each of the funds rep
resented by these accounts shall be used for the redemp
tion of the notes and certificates for which they are
respectively pledged, and shall be used for no other pur
pose, the same being held as trust funds.

ACTS OP GENERAL NATURE.

WHEN SILVER DOLLARS ARE COINED FROM BULLION
PURCHASED UNDER ACT OP JULY 14, 1890, AN EQUAL
AMOUNT OF TREASURY NOTES TO BE CANCELED AND
SILVER CERTIFICATES ISSUED.

l34{

753. Sec. 5.— That it shall be the duty of the Secretary
of the Treasury, as fast as standard silver dollars are
coined under the provisions of the Acts of July four
teenth, eighteen hundred and ninety, and June thirteenth,
aighteen hundred and ninety-eight, from bullion pur
chased under the A ct of July fourteenth, eighteen hun
dred and ninety, to retire and cancel an equal amount of
Treasury notes whenever received into the Treasury,
either b y exchange in accordance with the provisions of
this A ct or in the ordinary course of business, and upon
the cancellation of Treasury notes silver certificates shall
be issued against the silver dollars so coined.
ISSUE OF GOLD CERTIFICATES. ISSUE OF GOLD CER
TIFICATES PAYABLE TO ORDER.

754. Sec. 6 [as amended by acts of March 4,1907, March 2,
1911, and June 12, 1916].— That the Secretary of the Treasl!; ury is hereby authorized and directed to receive deposits of
2 gold coin with the Treasurer, or any assistant treasurer of
l.; the United States, in sums of not less than twenty dollars,
12, and to issue gold certificates therefor in denominations
L >of not less than ten dollars, and the coin so deposited shall
be retained in the Treasury and held for the payment of
such certificates on demand, and used for no other pur
pose. Such certificates shall be receivable for customs,
taxes, and all public dues, and when so received may be
reissued, #and when held by any national banking asso
ciation may be counted as a part of its lawful reserve:
Provided, That whenever and so long as the gold coin
and bullion held in the reserve fund m the Treasury for
the redemption of United States notes and Treasury
notes shall fall and remain below one hundred million
dollars the authority to issue certificates as herein pro
vided shall be suspended: And provided further, That
whenever and so long as the aggregate amount of United
States notes and silver certificates in the general fund of
the Treasury shall exceed sixty million dollars the Secre
tary of the Treasury may, in his discretion, suspend the
issue of the certificates herein provided for: And pro
vided further, That of the amount of such outstanding
certificates one-fourth at least shall be in denominations
of fifty dollars or less: And provided further. That the
Secretary of the Treasury may, in his discretion, issue
such certificates in denominations of ten thousand dollars,
payable to order: And provided further, That the Secre
tary of the Treasury may, in his discretion, receive, with
the assistant treasurer in New York and the assistant
treasurer in San Francisco, deposits of foreign gold coin
at their bullion value in amounts of not less than one
thousand dollars in value and issue gold certificates there-

ACTS OF GENERAL NATURE.

199

for of the description herein authorized: And provided
further, That the Secretary of the Treasury may, in his
discretion, receive, with the Treasurer or any assistant
treasurer of the United States, deposits of gold bullion
bearing the stamp of the coinage mints of the United
States, or the assay office in New York, certifying their
weight, fineness, and value, in amounts of not less than
one thousand dollars in value, and issue gold certificates
therefor of the description herein authorized. But the
amount of gold bullion and foreign coin so held shall not
at any time exceed two thirds of the total amount of gold
certificates at such time outstanding. And section fiftyone hundred and ninety-three of the Revised Statutes of
the United States is hereby repealed.
ISSUE OF SILVER CERTIFICATES.

755. Sec. 7.— That hereafter silver certificates shall be 19^ctse“ arf ^
issued only of denominations of ten dollars and under, stat. l „ 47. ’
except that not exceeding in the aggregate ten per centum
of the total volume of said certificates, in the discretion
of the Secretary of the Treasury, may be issued in denom
inations of twenty dollars, fifty dollars, and one hundred
dollars; and silver certificates of higher denomination
than ten dollars, except as herein provided, shall, when
ever received at the Treasury or redeemed, be retired and
canceled, and certificates of denominations of ten dollars
or less shall be substituted therefor, and after such sub
stitution, in w^hole or in part, a like volume of United
States notes of less denomination than ten dollars shall
from time to time be retired and canceled, and notes of
denominations of ten dollars and upward shall be reis
sued in substitution therefor, with like qualities and re
strictions as those retired and canceled.
N o t e . — The act of February 28, 1878, authorized the issue of silver
certificates in sums of not less than ten dollars. The act of March 3,
1887, authorized the issue of one, two, and five dollar certificates.
This section supersedes these acts as to all new issues.

SUBSIDIARY SILVER COINAGE.

756. Sec. 8.— That the Secretary of the Treasury is 1Q^ct
hereby authorized to use, at his discretion, any silver stat. l „
bullion in the Treasury of the United States purchased
under the A ct of July fourteenth, eighteen hundred and
ninety, for coinage into such denominations of subsidiary
silver coin as may be necessary to meet the public require
ments for such coin: Provided, That the amount of sub
sidiary silver coin outstanding shall not at any time ex
ceed in the aggregate one hundred millions of dollars.
Whenever any silver bullion purchased under the Act of
July fourteenth, eighteen hundred and ninety, shall be
used in the coinage of subsidiary silver coin, an amount
of Treasurv notes issued under said A ct equal to the cost
of the bullion contained in such coin shall be canceled
and not reissued.

^
4 7 .'

200

a c t s of

general

nature.

RECOINAGE OF UfrCURRENT SUBSIDIARY SILVER COIN.

woo* sec*8®; a
®ec* ®*— That the Secretary of the Treasury is
stat. l., k * hereby authorized and directed to cause all worn and uncurrent subsidiary silver coin of the United States now
in the Treasury, and hereafter received, to be recoined,
and to reimburse the Treasurer of the United States for
the difference between the nominal or face value of such
coin and the amount the same will produce in new coin
from any moneys in the Treasury not otherwise appro
priated.
758. Sec. 10.—
Amends section 5138, Revised Statutes.
National-bank act.)

(See said section under

REFUNDING OF UNITED STATES BONDS.

i90t)Ctsec^ii; si ^9* Sec. 11.— That the Secretary of the Treasury is
k '
hereby authorized to receive at the Treasury any of the
outstanding bonds of the United States bearing interest
at five per centum per annum, payable February first,
nineteen hundred and four, and any bonds of the United
States bearing interest at four per centum per annum,
payable July first, nineteen hundred and seven, and any
bonds of the United States bearing interest at three per
centum per annum, payable August first, nineteen hun
dred and eight, and to issue in exchange therefor an equal
amount of coupon or registered bonds of the United
States in such form as he may prescribe, in denomina
tions of fifty dollars or any multiple thereof, bearing
interest at the rate of two per centum per annum, payable
quarterly, such bonds to be payable at the pleasure of
tne United States after thirty years from the date of
their issue, and said bonds to be payable, principal and
interest, in gold coin of the present standard value, and
to be exempt from the payment of all taxes or duties
of the United States, as well as from taxation in any
form by or under State, municipal, or local authority:
Provided, That such outstanding bonds may be received
in exchange at a valuation not greater than their present
worth to yield an income of two and one-quarter per
centum per annum ; and in consideration of the reduction
of interest effected, the Secretary of the Treasury is au
thorized to pay to the holders of the outstanding bonds
surrendered for exchange, out of any money in the Treas
ury not otherwise appropriated, a sum not greater than
the difference between their present worth, computed as
aforesaid, and their par value, and the payments to be
made hereunder shall be held to be payments on account
of the sinking fund created by section thirty-six hundred
and ninety-four of the Revised Statutes: And provided
further, That the two per centum bonds to be issued un
der the provisions of this A ct shall be issued at not less
than par, and they shall be numbered consecutively in
the order of their issue, and when payment is made the

stat. l . ,

ACTS OF GENERAL NATURE.

201

last numbers issued shall be first paid, and this order shall
be followed until all the bonds are paid, and whenever
any of the outstanding bonds are called for payment in*
terest thereon shall cease three months after such call;
and there is hereby appropriated out of any money in
the Treasury not otherwise appropriated, to effect the
exchanges of bonds provided for in this Act, a sum not
exceeding one-fifteenth of one per centum of the face
value of said bonds, to pay the expense of preparing and
issuing the same and other expenses incident thereto.
760. Sec. 12.—
This section is inserted in the national-bank act following section
5171 wh^ch it supersedes.

761. Sec. 13.—
See paragraph 445.

INTERNATIONAL BIMETALLISM.

762. Sec. 14.— That the provisions of this A ct are not 19^ctse^ai4. ^
intended to preclude the accomplishment of inter- stat. l ., 49. ’
national bimetallism whenever conditions shall make it
expedient and practicable to secure the same by concur
rent action of the leading commercial nations of the
world and at a ratio which shall insure permanence of
relative value between gold and silver.
ACT MARCH 4, 1907.

763. Sec. 1. Amends section 6 of act of
March 14, 1900.
764. Sec. 2. Issue of Treasury notes.
765. Sec. 3. Amends section 5153 of the
Revised Statutes.

766. Sec. 4. Amends section 9 of act of
July 12, 1882. The amended
section follows section 5167 of
the Revised Statutes.

763. Sec. 1, Act March 4, 1907.
Amends section 6 of act of March 14, 1900. This amended section
is incorporated in said act, paragraph 754, ante.

ISSUE OF TREASURY NOTES.

ACT MARCH 4, 1907.

764. Sec. 2.— That whenever and so long as the outse^^:
standing silver certificates of the denominations of one stat. l . , i289.
dollar, two dollars, and five dollars, issued under the
provisions of section seven of an Act entitled “ An Act
to define and fix the standard of value, to maintain the
parity of all forms of money issued or coined by the
United States, to refund the public debt, and for other
purposes,” approved March fourteenth, nineteen hun
dred, shall be, in the opinion of the Secretary of the
Treasury, insufficient to meet the public demand there
for, he is hereby authorized to issue United States notes
of the denominations of one dollar, two dollars, and five
dollars, and upon the issue of United States notes of such
denominations an equal amount of United States notes of
higher denominations shall be retired and canceled: Pro
vided, however, That the aggregate amount of United
States notes at any time outstanding shall remain as at

ACTS OF GENERAL NATURE.

202

present fixed b y law: And provided further, That nothing
in this A ct shall be construed as affecting the right of any
national bank to issue one-third in amount of its circu
lating notes of the denomination of five dollars, as now
provided b y law.
765. Sec. 3.—
Amends section 5153, Revised Statutes, paragraph 243, ante.

766. Sec. 4.—
Amends section 9 of act of July 12, 1882, as amended by act of March
14, 1900. See paragraph 314, ante.
PANAM A

CANAL

BOND S.

PANAMA CANAL BONDS—ADDITIONAL ISSUE AUTHOR
IZED AT RATE OF INTEREST NOT TO EXCEED 3 PER
CENT PER ANNUM.

i9^ f secAU39; k
sta£,L., 117.’

767. Sec. 39.— That the Secretary of the Treasury is
hereby authorized to borrow on the credit of the United
States, from time to time, as the proceeds may be required
to defray expenditures on account of the Panama Canal
and to reimburse the Treasury for such expenditures
already made and not covered b y previous issues of bonds,
the sum of two hundred and ninety million five hundred
and sixty-nine thousand dollars (which sum together
with the eighty-four million six hundred and thirty-one
thousand nine hundred dollars already borrowed upon
issues of two per cent bonds under section eight of the
A ct of June twenty-eight, nineteen hundred and two,
equals the estimate of the Isthmian Canal Commission
to cover the entire cost of the Canal from its inception to
its completion), and to prepare and issue therefor coupon
or registered bonds of the United States in such form as
he may prescribe, and in denominations of one hundred
dollars, five hundred dollars, and one thousand dollars,
payable fifty years from the date of issue, and bearing
interest payable quarterly in gold coin at a rate not ex
ceeding three.per centum per annum; and the bonds
herein authorized shall be exempt from all taxes or duties
of the United States, as well as from taxation in any form
by* or under State, municipal, or local authority: Pro
vided, That said bonds may be disposed of by the Secre
tary of the Treasury at not less than par, under such
regulations as he m ay prescribe, giving to all citizens of
the United States an equal (
therefor, but no commissions
thereon; and a sum not exceeding one-tenth of one per
centum of the amount of the bonds herein authorized is
hereby appropriated, out of any money in the Treasury
not otherwise appropriated, to pay the expenses of pre
paring, advertising, and issuing the same; and the au
thority contained in section eight of the A ct of June
twenty-eight, nineteen hundred and two, for the issue of
bonds bearing interest at two per centum per annum, is
hereby repealed.

203

ACTS OF GENERAL NATURE.

PANAMA CANAL BONDS ISSUED UNDER ACT OP AUGUST
5, 1909, NOT RECEIVABLE AS SECURITY FOR THE
ISSUE OF CIRCULATING NOTES TO NATIONAL BANKS.

768. Be it enacted by the Senate and House of Repre- Act Mar.
sentatives of the United States of America in Congress stat. l?,’ 1013.'
assembled, That the Secretary of the Treasury be, and he
is hereby, authorized to insert in the bonds to be issued
by him under section thirty-nine of an A ct entitled ‘ ‘An
Act to provide revenue, equalize duties, and encourage
the industries of the United States, and for other pur
poses,” approved August fifth, nineteen hundred and
nine, a provision that such bonds shall not be receivable
by the Treasurer of the United States as security for
the issue of circulating notes to national banks; ana the
bonds containing such provision shall not be receivable
for that purpose.
C E R T IF IE D

CH ECKS

W HEN

R E C E IV A B L E

FOR

D U T IE S

AND

TAXES.

CERTIFIED CHECKS DRAWN ON NATIONAL AND STATE
BANKS RECEIVABLE FOR DUTIES ON IMPORTS AND
INTERNAL TAXES. ACT MARCH 2, 1911.

769. Be it enacted by the Senate and House of Repre
sentatives of the United States of America in Congress
assembled, That it shall be lawful for collectors of customs and of internal revenue to receive for duties on imports and internal taxes certified checks drawTn on na
tional and State banks, and trust companies during such
time and under such regulations as the Secretary of the
Treasury may prescribe. No person, however, who may
be indebted to the United States on account of duties on
imports or internal taxes who shall have tendered a cer
tified check or checks as provisional payment for such
duties or taxes, in accordance with the terms of this Act,
shall be released from the obligation to make ultimate
payment thereof until such certified check so received has
been duly paid; and if any such check so received is not
duly paid by the bank on which it is drawn and so certi
fying, the United States shall, in addition to its right to
exact payment from the party originally indebted there
for, have a lien for the amount of such check upon all the
assets of such bank; and such amount shall be paid out of
its assets in preference to any or all other claims whatso
ever against said bank, except the necessary costs and ex
penses of administration and the reimbursement of the
United States for the amount expended in the redemption
of the circulating notes of such bank.
Sec. 2. That this A ct shall be effective on and after
June first, nineteen hundred and eleven.
CERTIFIED CHECKS—WHEN RECEIVABLE FOR DUTIES
AND TAXES. ACT MARCH 3, 1913.

770. Be it enacted by the Senate and House of Repre
sentatives of the United States of America in Congress

Act

Mar.

stat. l? ,'9J5! ’

204

ACTS OF GENERAL NATURE.

w w f c.Mu 9 37

assembled, That it shall be lawful for collecting officers

stac. l ‘., 733*

to receive certified checks drawn on national and State
banks and trust companies, during such time and under
such regulations as the Secretary of the Treasury may
prescribe, in payment for duties on imports, internal taxes,
and all public dues, including special customs deposits;
and the A ct of March second, nineteen hundred and
eleven, entitled “ A n A ct to authorize the receipt of certi
fied checks for duties on imports and internal taxes,” is
hereby amended accordingly.
AMERICAN NATIONAL RED CROSS.

NATIONAL BANKS AUTHORIZED TO SUBSCRIBE TO
AMERICAN NATIONAL RED CROSS DURING THE WAR.
19^

771. Be it enacted by the Senate and House of Repre
sentatives of the United States of America in Congress
assembled, That during the continuance of the state of

May 22>

war now existing it shall be lawful for any national bank
ing association to contribute to the American National
R ed Cross, out of any net profits otherwise available
under the law for the declaration of dividends, such sum
or sums as the directors of said association shall deem
expedient. Each association shall report to the Comp
troller of the Currency within ten days after the making
of any such contribution, the amount of such contribu
tion, and the amount of net earnings in excess of such
contribution. Such report shall be attested by the presi
dent or cashier of the association in like manner as the
report of the declaration of any dividend.
S ec 2 . That all sums so contributed shall be utilized
b y the American National R ed Cross in furnishing vol
unteer aid to the sick and wounded of the combatant
armies, the voluntary relief of the Arm y and N avy of the
United States, and the relief and mitigation of the suffer
ing caused by the war to the people of the United States
and their allied nations.

SPECIAL ACTS.

205

CHAPTER VIII.
SPECIAL ACTS RELATING TO NATIONAL BANKS.

800. Act April 12,1900. National bank
ing laws applicable to Porto
Rico.
801. Act April 30, 1900. National bank
ing laws applicable to Hawaii.

802. Granting Fifth-Third National Bank
of Cincinnati, Ohio, the right to
use original charter No. 20.
803. Special acts authorizing change of
name or location of national
banks.

NATIONAL BANKING LAWS APPLICABLE TO PORTO RICO.
ACT APRIL 12, 1900.

800. Sec. 14.— That the statutory laws of the U n itedsecJ^istatx!;
States not locally inapplicable, except as hereinbefore or sa
hereinafter otherwise provided, shall have the same force
and effect in Porto Rico as in the United States, except
the internal-revenue laws, which, in view of the pro
visions of section 3, shall not have force and effect in
Porto Rico.
Note.—The Attorney General of the United States in an opinion
rendered June 2, 1900, held “ There seems to be in the structure of the
national banking laws no general provisions which can not be carried
into force and effect in Porto Rico equally with all of the various States
and Territories to which the laws were originally applied. I can find
no reason to hold that the statutes relative to the organization and pow
ers of national banks have not, by section 14 of the Porto Rican act,
above referred to, been extended to that island. The language of that
section is broad enough, and in my opinion does authorize the organ
ization and carrying on of national banks in Porto Rico.”

NATIONAL BANKING LAWS APPLICABLE TO HAWAII.
ACT APRIL 30, 1900.

801. Sec. 5.— That the Constitution, and except as
herein otherwise provided, all the laws of the United
States which are not locally inapplicable, shall have the
same force and effect within the said Territory as else
where in the United States: Provided, That sections
eighteen hundred and fifty and eighteen hundred and
ninety of the Revised Statutes of the United States shall
not apply to the Territory of Hawaii.

S6£pf,:.
stat l ., 'mi

Note.—The Attorney General of the United States in an opinion
rendered June 23, 1900, held “ That the act of April 30, 1900, * * *
extended the national banking acts to the Territory of Hawaii, and
would authorize the Comptroller to grant permission for the organiza
tion of national banks therein. (See my opinion of June 2, 1900, rela
tive to the same question as applied to Porto Rico.) But I do not think
that the provisions of section 5154 apply to banks existing in Hawaii
prior to the passage of the act of April 30, 1900. Sections 5154 and 5155
seem, by their especial terms, to refer only to banking institutions organ
ized under special or general laws of a State, and do not seem to apply at
all to banks organized under the laws of any Territory. I think the
object of these two sections was to enable the banks that were previously
strictly State institutions to become national corporations, and the
operation of the act in that respect is to be so restricted."

207

208

SPECIAL ACTS.

GRANTING FIFTH-THIRD NATIONAL BANK, OF CINCIN
NATI, OHIO, THE RIGHT TO USE ORIGINAL CHARTER
NUMBER TWENTY.

Act Feb.
1913; 37 Stat
1378.

802. Be it enacted by the Senate and House o f Repre
sentatives o f the United States o f America in Congress
assembled, That the Comptroller of the Currency be, and
he is hereby, authorized and directed to issue to the FifthThird National Bank, of Cincinnati, Ohio, charter num
bered twenty in lieu of their present charter numbered
twenty-seven hundred and ninety-eight, said charter
numbered twenty being the original charter number of
the Third National Bank, of Cincinnati, Ohio, which bank,
was merged and consolidated with the Fifth National
Bank, of Cincinnati, Ohio, in the year nineteen hundred
and eight, under the name of the Fifth-Third National
Bank, of Cincinnati, Ohio, said consolidated bank having
succeeded to all the assets, good will, rights, privileges,
and emoluments of the said Third National Bank, of
Cincinnati, Ohio.
SPECIAL ACTS AUTHORIZING CHANGE OF NAME OR
LOCATION. ACT JUNE 7, 1872.

A ct June
1872, sec. 1;
Stat. L., 281.

Act June
1872, sec. 2;
Stat. L., 282.

Act June
1872, sec. 3;

8tat. L., 282.

A ct June
1872, sec. 4:
Stat. L., 282.

803. Sec. 1.— That the First National Bank of An
napolis, now located in the city of Annapolis and State
of Maryland, is hereby authorized to change its location
to the city of Baltimore, in said State. Whenever the
stockholders representing three-fourths of the capital
of said bank, at a meeting called for that purpose, deter
mine to make such change, the president and cashier shall
execute a certificate, under the corporate seal of the bank,
specifying such determination, and shall cause the same
to be recorded in the office of the Comptroller of the Cur
rency, and thereupon such change of location shall be
effected, and the operations of discount and deposit of
said bank shall be carried on in the city of Baltimore.
^
S e c . 2. That nothing in this act contained shall be so
construed as in any manner to release the said bank from
any liability or affect any action or proceeding in law in
which the said bank may be a party or interested. And
when such change shall have been determined upon, as
aforesaid, notice thereof and of such change shall be
published in two weekly papers in the city of Annapolis
not less than four weeks.
Sec. 3. That whenever the location of said bank shall
have been changed from the city of Annapolis to the city
of Baltimore, in accordance with the first section of this
act, its name shall be changed to The Traders’ National
Bank of Baltimore, if the board of directors of said bank
shall accept the new name by resolution of the board,
and cause a copy of such resolution, duly authenticated,
to be filed with the comptroller of the currency.
Sec. 4. That all the debts, demands, liabilities, rights,
privileges, and powers of the First National Bank of
Annapolis shall devolve upon the Traders’ National

SPECIAL ACTS.

Bank of Baltimore whenever such change of name is
effected.
S e c . 5. That this act shall take effect and be in force
from and after its passage.
N o t e . —Acts of a similar nature to the one preceding have been
enacted by Congress for the following purposes:
Authorizing The Manufacturers’ National Bank of New York to
change its location from the city of New York to the city of Brooklyn.
(Approved July 27, 1868.)
Authorizing The City National Bank of New Orleans, Louisiana, to
change its name to The Germania National Bank of New Orleans
(Approved March 1, 1869.)
Authorizing The Second National Bank of Plattsburgh, New York,
to change its name to The Vilas National Bank of Plattsburgh.
(Approved March 1, 1869.)
Authorizing The First National Bank of Delhi, New York, to change
its location and name to The First National Bank of Port Jervis, New
York. (Approved May 5, 1870.)
Authorizing The First National Bank of Fort Smith, Arkansas, to
change its location and name to the First National Bank of Camden,
Arkansas. (Approved July 1, 1870.)
Authorizing the Jersey Shore National Bank, Pennsylvania, to
change its location and name to The Williamsport National Bank,
Pennsylvania. (Approved December 22, 1870.)
Authorizing the Worcester County National Bank of Blackstone,
Massachusetts, to change its location and name to The Franklin
National Bank, Massachusetts. (Approved February 9, 1871.)
Authorizing The Farmers’ National Bank of Fort Edward, New York,
to change its location and name to The North Granville National Bank,
New York. (Approved February 18, 1871.)
Authorizing The Worthington National Bank of Cooperstown, New
York, to change its location and name to The First National Bank of
Oneonta, New York. (Approved February 27, 1871.)
Authorizing The Warren National Bank of South Danvers, Massa
chusetts, to change its name to The Warren National Bank of Peabody,
Massachusetts. (Approved March 12, 1872.)
Authorizing The First National Bank of Seneca, Illinois, to changeits
location and name to The First National Bank of Morris, Illinois.
(Two acts, approved April 5, 1872, and June 18, 1874.)
Authorizing The Railroad National Bank oi Lowell, Massachusetts,
to change its location and name to The Railroad National Bank of
Boston, Massachusetts. (Approved May 31, 1872.)
Authorizing The National Bank of Lyons, Michigan, to change its
location and name to The Second National Bank of Ionia, Michigan.
(Approved December 24, 1872.)
Authorizing The East Chester National Bank of Mount Vernon, New
York, to change its location and name to The German National Bank
of Evansville, Indiana. (Approved January 11, 1873.)
Authorizing The First National Bank of Newnan, Georgia, to change
its location and name to The National Bank of Commerce, Atlanta,
Georgia. (Approved January 23, 1873.)
Authorizing The First National Bank of Watkins, New York, to
change its location and name to The First National Bank of Penn Yan,
New York. (Approved February 19, 1873.)
Authorizing The National Bank of Springfield, Missouri, to change
its name to The First National Bank of Springfield Missouri. (Ap
proved March 3, 1873.)
Authorizing The Kansas Valley National Bank of Topeka, Kansas,
to change its name to The First National Bank of Topeka, Kansas.
( Approved March 3, 1873.)
Authorizing The First National Bank of Saint Anthony, Minnesota,
to change its location and name to The Merchants' National Bank of
Minneapolis, Minnesota. (Approved January 8, 1874.)
Authorizing The Second National Bank of Havana, New York, to
change its name to The Havana National Bank of Havana, New York.
(Approved January 9, 1874.)

10-1312°— 20------ 14

209

A ct June 7,
1872, sec. 5; 17
Stat. L., 282.

SPECIAL ACTS.

210

Authorizing The Passaic County National Bank of Paterson, New
Jersey, to change its name to The Second National Bank of Paterson,
New Jersey. (Approved April 15, 1874.)
Authorizing The Citizens National Bank of Hagerstown, Maryland,
to change its location and name to The Citizens’ National Bank of
Washington City, District of Columbia. (Approved May 1, 1874.)
Authorizing The Irasburg National Bank of Orleans, at Irasburg,
Vermont, to change its location and name to The Barton National Bank,
Vermont. (Approved June 3, 1874.)
Authorizing The Farmers’ National Bank of Greensburg, Pennsyl
vania, to change its location and name to The Fifth National Bank of
Pittsburg, Pennsylvania. (Approved June 23, 1874.)
Authorizing The Citizens’ National Bank of Sanbomton, New Hamp
shire, to change its name to The Citizens’ National Bank of Tilton, New
Hampshire. (Approved February 19, 1875.)
Authorizing the Second National Bank of Jamestown, New York, to
change its name to The City National Bank of Jamestown, New York.
(Approved March 3, 1875.)
Authorizing The Second National Bank of Watkins, New York, to
change its name to The Watkins National Bank, New York. (Ap
proved March 3, 1875.)
Authorizing The Slater National Bank of North Providence, Rhode
Island, to change its name to The Slater National Bank of'Pawtucket,
Rhode Island. (Approved March 3, 1875.) .
Authorizing The Auburn City National Bank of Auburn, New York,
to be consolidated with The First National Bank of Auburn, New York.
(Approved March 3, 1875.)
Authorizing The Miners’ National Bank of Braid wood, Illinois, to
change its location and name to The Commercial National Bank of Wil
mington, Illinois. (Approved January 31, 1878.)
Authorizing The Windham National Bank, Windham, Connecticut,
to change its location to the village of Willimantic, Connecticut.
(Approved February 10, 1879.)
Authorizing the National Bank of Commerce of Cincinnati, Ohio, to
change its name to The National Lafayette and Bank of Commerce.
(Approved April 29, 1879.)
Authorizing the City National Bank of Manchester, New Hampshire,
to change its name to The Merchants’ National Bank of Manchester.
(Approved June 11, 1880.)
Authorizing The Blue Hill National Bank of Dorchester, Massachu
setts, to change its location and name to the Blue Hill National Bank of
Milton, Massachusetts. (Approved January 13, 1881.)
Authorizing The First National Bank of Meriden, West Meriden,
Connecticut, to change its name to The First National Bank of Meriden,
Connecticut. (Approved March 1, 1881.)
Authorizing The National Mechanics’ Banking Association of New
York, New York, to change its name to Wall Street National Bank.
(Approved February 14, 1882.)
Authorizing The Lancaster National Bank of Lancaster, Massachu
setts, to change its location and name to The Lancaster National Bank
of Clinton, Massachusetts. (Approved February 25, 1882.)
Authorizing the National Bank of Kutztown, Pennsylvania, to
change its location and name to The Keystone National Bank of
Reading, Pennsylvania. (Approved June 27, 1882.)
Joint resolution authorizing The National Bank of Winterset, Iowa,
to change its name to The First National Bank of Winterset, Iowa.
(Approved January 18, 1883.)
Authorizing The Second National Bank of Xenia, Ohio, to increase
its capital stock. (Approved February 17, 1883.)
Authorizing The First National Bank of West Greenville, Pennsyl
vania, to change its name to The First National Bank of Greenville,
Pennsylvania. (Approved February 26, 1883.)
Authorizing The West Waterville National Bank of Oakland, Maine,
to change its title to The Messalonskee National Bank of Oakland,
Maine. (Approved April 15, 1884.)
Authorizing the Hillsborough National Bank, of Hillsboro, Ohio, to
change its name to The First National Bank of Hillsborough, Ohio,
(Approved December 18, 1884.)

SPECIAL ACTS.

Authorizing The Slater National Bank of North Providence, Rhode
Island, to change its name. (Approved January 8, 1885.)
Authorizing tne First National Bank of Omaha, Nebraska, to increase
its capital stock. (Approved January 10, 1885.)
Authorizing The National Bank of Bloomington, Illinois, to change
its name to the First National Bank of Bloomington, Illinois. (Ap
proved January 27, 1885.)
Authorizing The Manufacturers’ National Bank of New York to
change its name to The Manufacturers’ National Bank of Brooklyn,
New York. (Approved February 20, 1885.)
Authorizing The Commercial National Bank of Chicago, Illinois, to
increase its capital stock. (Approved February 28, 1885.)
Authorizing The First National Bank of Larned, Kansas, to increase
ita capital stock. (Approved March 3, 1885.)
Authorizing The First National Bank of Fort Benton, Montana, to
change its location and name. (Approved December 18, 1890.)
Authorizing the National Safe Deposit Company of Washington to
change its title to The National Safe Deposit, Savings and Trust Com
pany of the District of Columbia. (Approved February 18, 1892.)
Authorizing a national bank of Cnicago, Illinois, to establish a
branch office upon the grounds of the World’s Columbian Exposition,
(Approved May 12, 1892.)
Authorizing The First National Bank of Sprague, Washington, to
change ita location and name. (Approved March 20, 1896.)
Authorizing the Interstate National Bank of Kansas City, Kansas, to
change its location. (Approved March 2, 1897.)
Authorizing any bank or trust company located in the State of Mis
souri to conduct a banking office on tne Louisiana Exposition grounds
at St. Louis, Mo. (Approved March 3, 1901.)
Authorizing The American National Bank of Graham, Virginia, to
change its location and name. (Approved February 15, 1906.)
Authorizing the National Safe Deposit SavingB and Trust Company
of the District of Columbia to change its title to National Savings and
Trust Company. ■ (Approved January 31, 1907.)

211

212

SPECIAL ACTS.

OPINIONS OF THE ATTORNEY GENERAL.

213

CHAPTER IX.
OPINIONS OF THE ATTO RN EY GENERAL ON GUARANTY LAW S OF OKLA
HOMA AND KANSAS, AND ON THE INSURANCE OF BAN K DEPOSITS.

900. Opinion of Attorney General of
United States on Oklahoma
deposit guaranty law.
901. Opinion of Attorney General of
United States on Kansas de
posit guaranty law.
902. Opinion of Attorney General of
the United States on power of
a national bank to enter into a
contract with an insurance com
pany guaranteeing the solvency
of the bank.

903. Opinion of Attorney General of
United States on power of a
national bank to make a con
tract with an insurance com
pany by which the company
insures and guarantees • each
depositor in the bank the full
payment of his deposit therein.

THE OKLAHOMA DEPOSIT GUARANTY LAW.

900. The Attorney General of the United States, in an
opinion rendered July 28, 1908, said:
The business of insuring deposits is a wholly separate business from
that of banking * * *. A national bank has no power to guarantee
the obligations of a third party, unless in connection with the sale or
transfer of its own property and as an incident to the business of the
bank * * *.
But a contract guaranteeing the payment by another corporation or
individual of obligations in nowise connected with the business of the
bank is entirely ultra vires. I hold * * * that it is illegal for the
officers of a national bank to enter into any such agreement as that con
templated by section 4 of the Oklahoma statutes, and any willful action
to this effect on the part of any national bank is sufficient cause for the
forfeiture of charter.

THE KANSAS DEPOSIT GUARANTY LAW.

901. The Attorney General of the United States, in an
opinion rendered April 6, 1909, said:
The question of the power of a national bank to avail of the invita
tion extended to it by this act involves primarily a consideration of
the nature of the agreement contemplated by it. Attorney General
Bonaparte, in an opinion rendered to the Secretary of the Treasury,
under date of July 28, 1908, considering an act of the Legislature of
the State of Oklahoma (27 Op. A. G., p. 38), determined that a national
bank could not lawfully enter into the plan or scheme contemplated
bv that act, because it involved essentially a guaranty to the depositors
of all State banks in Oklahoma, and other national banks in that State
which might accept the terms of the law, that their respective depos
itors should be paid in full; a contract wnich he deemed to be clearly
ultra vires.
The act now under consideration attempts to avoid this objection
by limiting the amount for which any bank may become liable, but
within such limitation the same principle is involved, for to the extent
of the contribution and liability required by the statute each bank
becomes liable to creditors of the other banks which are parties to the
plan. But even if a proper construction of the act would, as contended,
make it a guaranty by each bank of payments to its own depositors, ana
not a general guaranty within the limits of contribution prescribed by
the act, of all deposits in all the banks which are parties to the scheme,
nevertheless I am strongly of the opinion that a national bank is with
out corporate power to expend its moneys for the purpose of providing
insurance that its depositors shall be paid in full. It may, of coursfe,
insure its own property against loss or destruction; it may insure itself
against loss of property through theft or other dishonesty, but the appli-

215

216

OPINIONS OF THE ATTORNEY GENERAL.

cation of its funds for the purpose of securing a collateral guaranty by
third parties that it will pay in full its debts to its depositors is, it
appears to me, beyond its corporate power.
Such contract would fall within the principles asserted in Commer
cial National Bank v. Pirie (82 Fed., 799), Bowen v. Needles National
Bank (94 Fed., 925), for if, as is well established, a national bank has no
power to guarantee the obligation of another, it certainly has no power
to employ another to guarantee its own obligation to a third person.

POWER OP NATIONAL BANK TO ENTER INTO A CONTRACT
WITH AN INSURANCE COMPANY GUARANTEEING THE
SOLVENCY OF THE BANK.

902.
The Attorney General of the United States, in an
opinion rendered May 7, 1909, said:
Replying to yours of the 29th ultimo, in which, at the request of the
Comptroller of the Currency, you ask for an opinion as to the power of
a national bank to enter into a contract with an insurance company
guaranteeing the solvency of the bank, and transmitting to me a form
of policy which is proposed to be issued by an insurance company pro
posed to be organized, I beg to say that, as a general principle, I have
no doubt that it is entirely within the powers of a national bank to
contract for the insurance of its assets against loss. The form of the
proposed policy submitted in your letter is somewhat peculiar. It
purports to insure to the bank the payment of “ a sum of money suffi
cient to indemnify the bank for any and all losses suffered by it by
reason of theft, embezzlement, losses in realizing upon loans and in
vestments, shrinkage in value of assets or otherwise, in an amount
equal to but not exceeding the net excess of its obligations, other than
by reason of the stock of the bank, over the total aggregate value of the
assets of the bank thus reduced by such losses; provided that there
shall be included in the assets of the bank all net sums which have
been realized by reason of the additional liability of the stockholders
of the bank.”
Such contract is, in effect, an agreement to pay to the bank any defi
ciency in its assets upon ultimate realization necessary to enable it to
pay all of its liabilities of every kind. The policy is to run for a period
of three months, but to be renewable thereafter for periods of three
months each with the consent of the insurance company, and at such
premiums as the insurance company may fix at least one month before
the expiration of the then current term of the insurance, the premium
in every case to be a percentage of the average indebtedness of the bank
during the period covered by such renewal, with the provision that, if
such rate shall be in excess of one-sixteenth of 1 per cent upon such
average indebtedness, then and in such event the insurance company
shall be liable to account to the bank for the application of such pre
mium paid by the bank in excess of one-sixteenth of 1 per cent. ‘ ‘ which
excess shall be applicable only to the payment of actual losses incurred
by the company by reason of claims under this and similar policies, and
any excess over such extra claims shall be divided pro rata among the
banks paying such extra rate of premium as a participation in the prof
its dunng which period such extra rate of premium has been paid.”
It is somewhat uncertain precisely what this paragraph means and
what its effect may be. It seems to me to be objectionable as com
mitting the bank to a profit-sharing feature, which might be contended
to entail a corresponding liability for losses; and, as the attorney for
the promoters of the proposed insurance company informs me that this
is not regarded as an essential part of the plan, I should advise that it
had better be eliminated from the policy.
Another provision contained in the policy subjects the bank to a
periodical examination by the examiners of the insurance company
without notice and at such times as the company may elect, one of
such examinations to be within each period of six months covered by
the policy and all renewals thereof. This period is probably inadver
tently placed at six months, as the policy is proposed to be written for
periods of three months only. Aside from that, I very much question
the legality of this clause, or at least its enforceability. Section 5241
of the Kevised Statutes provides that, “ No association shall be subject

OPINIONS OF THE ATTORNEY GENERAL.

to any visitorial powers other than such as are authorized by this title,
or are vested in the courts of justice/1
While this statute does not prohibit the bank from permitting an
examination of its books, in my opinion it does operate to prohibit it
from obligating itself to permit sucn examination; and if the covenant
to insure can be considered as in any respect dependent upon this
agreement to permit examinations, it might be vitiated by the unlaw
ful provision. I should advise that the clause be reframed so as to
make it clear that the agreement to insure is not dependent upon the
failure to permit the examination, although it might be stipulated that
in case, at any time, the examiner of the company should not be
allowed access to the books of the bank for the purpose of making an
examination the company should have the option, upon reasonable
notice, to terminate the contract.
In my opinion, therefore, it is a matter for the discretion of the
directors and officers of a bank to determine whether or not they will
enter into any such contract in any given instance, this discretion to
be exercised in view of the solvency and general financial condition of
the company making the insurance and the reasonableness of the rate
of premium; and the form of the policy being modified to conform to
the foregoing suggestions, I see no legal reason why a bank may not
enter into it.
POWER OF A NATIONAL BANK TO MAKE A CONTRACT
WITH AN INSURANCE COMPANY BY WHICH THE COM
PANY INSURES AND GUARANTEES EACH DEPOSITOR
IN THE BANK THE FULL PAYMENT OF HIS DEPOSIT
THEREIN.

903.
The Attorney General of the United States, in an
opinion rendered March 31, 1915, said:
I have the honor to acknowledge the receipt of your letter of Feb
ruary 12, 1915, inclosing letter of the Comptroller of the Currency,
opinion of the Acting Solicitor of the Treasury, and brief filed with
the Comptroller on behalf of a guaranty company and certain national
banks, in which the question is raised as to whether a national bank
may enter into a contract with a guaranty company under which, in
consideration of premiums paid by the bank, the company “ insures
and guarantees each depositor in the bank the full payment of his de
posit therein.” You ask my opinion upon this question.
In my opinion, it is within the power of a national bank to enter into
such a contract.
The law confers upon national banks such incidental powers as are
required to meet all legitimate demands of the banking business, and
to enable them to conduct their affairs safely and prudently within the
scope of their charters. Section 5136, Revised Statutes; First National
Bank v. National Exchange Bank (92 U. S. 122, 127). The power to
give security for deposits seems to be recognized by section 5153,
Revised Statutes, as among these incidental powers. The section last
mentioned, after providing that all associations created under the act,
shall, when so designated by the Secretary of the Treasury, be deposi
taries, further provides that “ The Secretary of the Treasury shall re
quire the associations thus designated to give satisfactory security, by
the deposit of United States bonds and otherwise, for the safe keeping
and prompt payment of the public money deposited with them,” etc.
It is believed that this section is more reasonably construed as a recog
nition of the existence of the power on the part of national banks to
give security for deposits than as a grant by implication of authority to
give security for Government deposits alone.
The power of banks to give security for deposits or for payment of
their debts has been frequently recognized. It has been held that the
property of a bank may be pledged as security for a debt ( United States
v. Robertson (1831), 5 Pet., 641, 650); that a bond with sureties may be
given to prevent depositors from withdrawing their accounts ( Wylie v.
Commercial & Farmers' Bank (1902), 41 S. E., 504, 509; 63 S. C., 406);
and that a national bank may give its bond with sureties to secure a
deposit of State funds (State of Nebraska v. First National Bank of
Orleans (1898), 88 Fed., 947, 951).

217

218

OPINIONS OF THE ATTORNEY GENERAL.
The power to contract for guaranteeing or securing depositors arises
from the nature of the relation existing between the banks and their
depositors. The relation created between the bank and a depositor by
the receipt of deposits is that of debtor and creditor. (National Bank
v. Millard (1869), 10 Wall., 152, 155; Davis v. Elmira Savings Bank
(1896), 161 U .S ., 275, 288.) The power to receive deposits, expressly
granted to every national bank (sec. 5136, R. S.), is, of course, indispensible to the conduct of the business of banking: and the extent of
its exercise is in a degree the measure of the success of the bank. The
of depositors, or the belief tliat their deposits are secure. Loss of such
confidence on the part of depositors is usually attended with loss and
inconvenience to tnem, to the bank, and to the public. The law ac
cordingly imposes upon the bank an imperative duty not only to repay
deposits but to keep them secure. For the protection of depositors, its
revenues and property are pledged, its stockholders are made subject
to a double liability, and its directors may be held liable for a viola
tion of their duties.
The means by which depositors are to be protected and secured are
not expressly limited or restricted by statute. A large discretion is left
to the officers and directors. They may use such means for the purpose
as are not prohibited by or inconsistent with the provisions of the law
and as they may reasonably find to be suitable and proper and not incon
sistent with the prudent conduct of the affairs of the bank within the
scope of its charter. “ Whatever protects the depositors,” it has been
said, “ protects the bank, because it assures confidence in the bank.”
(Noble State Bank v. Haskell (1908), 22 Okla., 48, 89.)
A contract of insurance or guaranty, such as described in the ques
tion submitted, may afford protection to depositors by securing the per
formance of an obligation on the part of the bank which otherwise
might not be performed. And it is not unreasonable to believe that
such a contract, at the same time, may prove valuable to the bank be
cause of the confidence it may assure. No reason is perceived for pro
hibiting a national bank, in the discretion of its directors, from so se
curing its depositors, or for denying to the bank such benefits as they
believe may accrue in the form of increased confidence resulting from
such a contract.
Opinions of former Attorneys General, dated, respectively, July 28,
1908 (27 Op., 37), and April 6 , 1909 (27 Op., 272), are referred to in the
inclosures as having been construed by the Comptroller of the Currency
as holding that national banks are without authority to pay, as part of
their legitimate expenses, premiums on policies insuring their deposi
tors against loss.
As I view these opinions, the conclusion in neither of them is inconristent with the conclusion reached herein. The opinion of July 28,
1908, construing the Oklahoma State banking act, determined that a
national bank could not lawfully participate in the plan contemplated
by the act for the guarantee of deposits, because it involved essentially
a guarantee to the depositors of other banks that they should be paid in
full—a contract which was deemed beyond the powers of the bank to
make. The opinion of April 6 , 1909, held that national banks in the
State of Kansas could not avail themselves of the bank depositor’s
guaranty law of that State. The inquiry, upon the answer to which
the decision rests, was whether an acceptance of the provisions of
the Kansas law “ would so control the conduct of the affairs of national
banks as to expressly conflict with the laws of the United States.”
As pointed out in the opinion of the Solicitor of the Treasury, the
more recent opinion of May 7, 1909 (27 Op., 324), in which the form of
a policy of insurance guaranteeing the assets of a national bank against
loss was approved provided certain suggested modifications should be
made, is more nearly in point on the question now under consideration,
and is in harmony with the views herein expressed.
The language employed in the opinions of July 28, 1908, and April
6,1909, to the effect that national banks are without power to contract
for insuring that depositors shall be paid in full, was used in the course
of argument merely, applied to a question which it was not necessary
to determine, and may be disregarded so far as inconsistent with this
opinion.

INDEX.

INDEX TO NATIONAL-BANK ACT, ETC.
(Index to Federal reserve act, p. 251.1

Paragraph.
Abstract of report of condition to be included in annual report............................
110
Abstraction, penalty for.................................................................................................
436
Acceptance of drafts or bills of exchange by member banks of Federal Reserve
System....................................................................................................................... 206,207
Acknowledgment. (See Oath.)
Acknowledgment of organization certificate..............................................................
203
Acting Comptroller of the Currency............................................................................
103
Act, the national-bank...................................................................................................
200
Acts:
Of a general nature, not included in national-bank act, affecting national
banks.................................................................................................................. 700-770
803
Special, authorizing change of name or location of national bank................
Additional Deputy Comptroller...................................................................................
104
Administrator, power of national banks to act as.....................................................
208
Administrators, not personally liable..........................................................................
242
Advertisements (see also Publication, Printing):
Imitation of circulation in, penalty for...............................................................
345
Notice to creditors of insolvent banks.................................................................
516
Agency, National Bank Redemption, provisions for........................................... 414, 415
Agent:
Association as fiscal, of Government....................................................................
243
Bonds, examination by..........................................................................................
310
Central reserve city.................................................................................................
401
Central reserve city, additional............................................................................
401
Circulation, to witness destruction......................................................................
339
Foreign branches of national banks as fiscal, of United States.......................
210
Insurance, when national bank may act as.........................................................
209
Liquidating bank.....................................................................................................
522
Reserve.................................................................................................................. 401-407
Reserve, city, additional central, provisions for...............................................
401
Shareholders, appointment and qualifications of..............................................
522
Shareholders, duties of............................................................................................
522
Special, to examine bank failing to redeem notes............................................
508
Witnessing destruction of circulation bv............................................................
339
Aggregate amount of circulation not limited.............................................................
332
Aiding misdemeanors of officers...................................................................................
430
Alaska, reserve requirements, etc., for national banks in.......................................
411
Allotment. (See Shares.)
316
Allotment of United States bonds to be purchased by Federal reserve bank___
Amendments:
Proposed, to national-bank act to be made in Comptroller’s report..............
110
Restriction of, to articles of association...............................................................
225
Suggested, to improve system, to appear in annual report.............................
110
Amount:
Of bond of Comptroller of Currency.....................................................................
102
Of bond of Deputy Comptroller of Currency......................................................
103
Of bonds required to be on deposit.................................................................. 302, 313
Of capital required..................................................................................................
224
Of circulation obtainable.......................................................................................
323
Of circulation that may be redeemed at one time, minimum........................
414
Of dividends that may be declared.....................................................................
429
Of redemption fund required................................................................................
414
Of reserve required to be held by—
Banks elsewhere than in reserve city..........................................................
405
Central reserve city banks.............................................................................
407
Country banks..................................................................................................
405
Reserve city banks..........................................................................................
406

221

222

INDEX TO NATIONAL-BANK ACT, ETC.

Amount—Continued.
Paragraph.
Of tax on circulation...............................................................................................
444
Of United States bonds that may be refunded in one year.............................
316
423
Recoverable for usurious interest charges...........................................................
That national banks may borrow..........................................................................
427
Annual examination of bonds by association.............................................................
310
Annual meeting of shareholders..................................................................................
232
Annual report of Comptroller of the Currency...........................................................
110
Appointment:
Agent, shareholders..................................................................................................
522
Agent to examine bonds.........................................................................................
310
Agent to witness destruction of circulation........................................................
339
Clerks of Comptroller’s office.................................................................................
105
Committee to examine plates, etc.........................................................................
328
Committee to witness destruction of circulation................................................
339
Comptroller................................................................................................................
101
Deputy Comptroller.................................................................................................
103
Directors of associations...........................................................................................
204
Dissenting shareholders, committee of apprisal.................................................
219
Examiners of associations........................................................................................
527
Officers of associations.............................................................................................
204
Receivers of associations..................................................................................... 515,520
Shareholders’ agent..................................................................................................
522
Special commission for preliminary examinations of associations................
320
Vacancies in board of directors..............................................................................
237
Appraisal. (See Shares.)
Appraisal of value of stock to be purchased from shareholders dissenting to ex
tension of charter..........................................................................................................
219
Approval of Comptroller of Currency required for extension of charter..............
217
Approval of request for receiver to buy property...................................................... . 524
Articles of association:
Amendment of, for extension of corporate existence.................................... 215,216
Amendment of, restricted.......................................................................................
225
Converted State bank, execution of, by..............................................................
245
Increase of capital stock by amendment of...................................................
229
Proceedings in regard to, and form of..................................................................
201
Provisions for elections when not provided for in.............................................
238
Reduction of capital stock......................................................................................
230
Assessments:
For examination.......................................................................................................
527
Impairment of capital.............................................................................................
430
Plates, engraving o f........................................................................................... 220,414
Redemption of circulation.....................................................................................
313
Repayment of tax.....................................................................................................
449
Reports of circulation, failure to make............................................................ 447,448
443
Reports of condition and earnings and dividends, failure to make...............
Semiannual duty......................................................................................................
446
Shareholder’s personal liability.............................................................................
240
Tax on unauthorized circulation....................................................................... 708-710
Transportation of notes............ ..............................................................................
414
Assessors, shareholders* lists accessible to...................................................................
439
Assets:
Comptroller’s annual report to contain statement of national banks.............
110
Expense of receiver paid from..............................................................................
519
Failed bank, may be turned over to agent.........................................................
522
Insolvent banks, distribution of............................................................................
517
Of consolidated banks.............................................................................................
503
Receiver to collect, etc...........................................................................................
515
Receiver to sell on order of court..........................................................................
515
Report of condition to contain statement of.......................................................
440
Shareholders’ agent to distribute..........................................................................
522
United States has paramount lien on...................................................................
511
Assignee, failure to pay installments.........................................................................
227
Assignment (see also Treasurer United States; Bonds, United States):
Of assets after insolvency void..............................................................................
529
Register of bonds......................................................................................................
307
United States bonds as security for circulation.................................................
306

INDEX TO NATIONAL-BANK ACT, ETC.

228

Paragraph.
Assistant Deputy Comptroller.....................................................................................
104
Assistant Treasurer of United States:
Circulation of liquidated and insolvent banks, duty of...................................
505
414
Circulation, unfit, to be sent to Treasurer for redemption..............................
Fraudulent notes to be marked by......................................................................
746
Public moneys to be deposited with................................................................ 730, 731
Unauthorized withdrawal of public money from..............................................
737
Associations:
Defined......................................................................................................................
300
National banking, provisions for formation of....................................................
201
Organized under act of 1863 not affected............................................................
247
To be notified of transfer of bonds.......................................................................
308
To issue gold notes................. ......... ......................................................................
341
Assorting charges for redeemed circulation................................................................
414
Attachment, not to issue prior to final judgment of court......................................
529
Attorney General, opinions of................................................................................... 900-903
Auction:
Bonds of expiring associations........................................................................... 221,504
Bonds of liquidating associations.......... ............................ .............................. 221, 504
Bonds, sale of, when association has failed to pay its circulating notes___
511
Enforcement of assessment, impaired capital....................................................
430
Purchase of property by receiver.........................................................................
523
Sale of delinquent national-bank stock...............................................................
430
Sale of dissenting shareholders’ stock..................................................................
219
Authority:
To commence business...........................................................................................
320
To coin silver dollars...............................................................................................
722

224

INDEX TO NATIONAL-BANK ACT, ETC.

B.
Paragraph.
Bad debts defined............................................................................................................
429
Ballot. (See Elections; Shareholders.)
Bank balances, net to or from to be used in reserve calculations..........................
410
Bank circulation. (See Circulation.)
Bank examiners................................................................................................................
527
Bank examinations..........................................................................................................
527
Banking house:
Association may own...............................................................................................
223
Location....................................................... . ................. ...........................................
400
Banking powers (see also Real estate and national banking associations):
Corporate....................................................................................................................
204
Incidental..................................................................................................................
204
Banks not in reserve cities. (See Country banks.)
Banks other than national, statement to be given in annual report........................
110
Bills of exchange:
Discount of.............. . ...............................................................................................
422
Illegal transfer of, void............................................................................................
529
Interest on.................................................................................................................
422
Member bank of Federal Reserve System may acrept.....................................
206
Not considered borrowed money...........................................................................
425
Penalty for official malfeasance, relative to........................................................
436
Restrictions on loans, not applicable to...............................................................
425
Restriction on associations, liability, not applicable to.....................................
427
Transfer of, to create a preference, void.............................................................
529
Bimetalism........................... .............................................................................................
762
Board of directors. (See Directors.)
Bonds, official:
Comptroller...............................................................................................................
102
Deputy Comptroller.................................................................................................
103
Officers of associations.............................................................................................
204
Public depositaries..................................................................................................
243
Receiver....................................................................................................................
515
Shareholders’ agent.................................................................................................
522
Shareholders’, on election of agent.......................................................................
522
Bonds, others, to secure deposits..................................................................................
243
Bonds, United States:
Annual examination of, provided for.................................................................
310
Assignment or transfer of, to be countersigned by Comptroller........................
306
Association to be notified of transfer or assignment...........................................
308
Cancellation of, forfeited, for circulation redeemed...........................................
510
Circulation issuable on................................................................................ 304, 317, 323
Circulation obtainable on............................................................................ 304, 317, 323
Comptroller, access to records of, and deposit with Treasurer.......................
309
Coupon, to be exchanged for registered................................................................
305
Deficiency in proceeds from sale of, what first lien...........................................
511
Defined......................................................................................................................
301
Deposit of, not required to begin business..........................................................
302
Depositaries required to deposit............................................................................
243
Depreciation in value of, how made good............................................................
311
Exchange of, for Treasury gold notes..................................................................
318
Exchange of, permitted..........................................................................................
311
Forfeiture of, for failure to redeem circulation...................................................
508
General provisions respecting................................................................................
311
Gold, banks to deposit............................................................................................
341
Government depositaries, deposit of, required...................................................
243
Increase of deposit of..............................................................................................
304
Interest on, liable for penalty for fsdlure to make reports to Comptroller.. .
443
Interest on, liable for penalty for failure to make returns and pay taxes___
425
Interest on, withheld on impaired capital..........................................................
430
Lawful money, deposit of, to retire circulation and withdraw.........................
312

INDEX TO NATIONAL-BANK ACT, ETC.

225

Bonds, United States—Continued.
Paragraph.
Liquidating bank, reassignment of......................................................................
504
Minimum amount to be deposited................................................................... 302, 313
Maximum circulation issuable on.......................................................................
323
Obligations of the United States, including, defined.........................................
739
Panama Canal, available as security for circulation.........................................
303
Panama Canal, additional issue of, authorized.................................................
767
Panama Canal, authorized by act of August 5, 1909, not receivable as se
curity for circulation...........................................................................................
768
Penalty for illegal dealing in counterfeit. . . ............... . . ................................
746
Penalty for illegal possession or use of material for printing..........................
741
Penalty for passing counterfeit.............................................................................
743
Penalty for taking or possessing unauthorized impressions of tools, etc.,
used in printing............................................................................................... 745, 746
307
Record of transfer or assignment of, to be kept by Comptroller.......................
Reduction of deposit of..........................................................................................
304
Refunding under provisions of Federal reserve act..........................................
304
Refunding of.........................................................................................................316, 757
Registered, to be deposited with Treasurer United States.......................... 301, 302
Relation of, on deposit to capital.........................................................................
304
Return of, to association........................................................................................
311
Sale of, at auction for failure to redeem circulation.........................................
511
Sale of, privataly, at not less than par, for failure to redeem circulation..
512
Secretary of Treasury authorized to sell, to make good gold reserve..........
750
Taxation, exempt from..........................................................................................
716
Tax on circulation secured b y ..............................................................................
444
Tax on circulation secured by Panama Canal bonds.................................... 303,444
To secure deposits...................................................................................................
243
306
Transfer of, how effected.......................................................................................
Treasurer of United States to have access to records of Comptroller relative to
309
Treasurer United States to hold, in trust for association.................................
306
Withdrawal of, and of circulation.................................................................. * 312,414
Withdrawal of..........................................................................................................
304
Bookkeeper. (See Officers.)
Books. (See Comptroller; Treasurer United States.)
Borrowed money (see Liability of association; Loans):
Limit of amount......................................................................................................
427
To make good gold reserve, by Secretary of Treasury, authorized................
750
Branch banks:
Chicago World’s Fair..............................................................................................
803
Louisiana Exposition..............................................................................................
803
State banks entering system by conversion may retain...................................
246
Branches, foreign, authorized.......................................................................................
210
Broker, when national bank may act as broker in procuring loans on real estate.
209
Bureau of Comptroller of Currency.............................................................................
100
Bureau of Currency, expense of...................................................................................
327
Bureau of Engraving and Printing, Director of, designated as custodian of
plates, dies, etc., of Federal reserve and national bank notes...........................
327
Business:
Authorization of association to begin, when................................................... 226, 319
Place of . ....................................................................................................................
400
Suspension of, after default to pay circulation..................................................
509
Business paper:
Discount of............................................................................................................ 422,427
Excepted from limit on loans...............................................................................
425
By-laws prescribed by directors of national banks...................................................
204
164312°— 20------ 15

226

INDEX TO NATIONAL-BANK ACT, ETO.

Paragraph.

Call for report of condition.............................................................................................
440
Cancellation. (See Bonds, United States, circulation.)
Cancellation of bonds forfeited......................................................................................
510
Cancellation of circulation redeemed..........................................................................
514
Capital stock:
Agent of shareholders to distribute assets ratably.............................................
522
Amount required......................................................................................................
224
Amount to be paid before association begins business................................. 226,319
Appointment and qualification of shareholders’ agent.....................................
522
Assessment for impairment of................................................................................
430
Association to begin business, amount to be paid.............................................
226
Borrowed money must not exceed........................................................................
427
Branches of converted State banks......................................................................
246
Certificate of officers and directors required relative to payment of.......... 226,319
Circulation not to be used to create increase of.................................................
428
Circulation outstanding not exceeding 5 per cent of, free from taxation___
706
Circulation, proportion to.......................................................................................
304
Conversion of State banks authorized..................................................................
245
Creditors’ bill against shareholders.......................................................................
521
Deposit of United States bonds based on............................................................
302
Directors, individual liability of...........................................................................
526
Directors, qualification of.......................................................................................
233
Disposition of, delinquent shareholders..............................................................
227
Dividends declared on, and net earnings in excess of dividends to be
reported..................................................................................................................
442
Dividends on, and creation of surplus.................................................................
424
Dividends on, when prohibited............................................................................
429
Division of, into shares, and number and value of each..................................
225
Enforcement of assessment, to make good impairment of...............................
430
Enforcing individual liabilities of shareholders of, by receiver....................
520
Enforcing payment of..............................................................................................
227
Holders of shares of, in expiring associations to be extended or reorganized,
to have preference in allotment of shares........................................................
219
Holding of shares of, required by directors..................................................... 233,236
Impairment of, assessment for...............................................................................
430
520
Impairment of, receiver may be appointed for failure to make good...........
Increase of, provisions for........................................................................... 228, 229, 304
Individual liability of shareholders.....................................................................
240
Liability of association not to exceed, except on account of certain demands.
427
Liquidation, shareholders owning two-thirds of, may vote to go into..........
500
List of shareholders of, to be transmitted to the Comptroller.........................
439
426
Loans on security of shares, or purchase of, prohibited...................................
Loans restricted to 10 per cent of, including surplus, etc................................
425
Minimum amount, required of national banks...................................................
224
Minimum of bonds to..............................................................................................
302
Number of shares and amount of, stated in organization certificate..............
202
Of national banks held by converted State banks............................................
245
Payment of, provisions for....................................................................................
226
Penalty for failure to make good impairment of................................................
430
Personal liability of shareholders..........................................................................
240
Population to govern minimum amount.............................................................
224
Purchase of, prohibited...........................................................................................
426
Receiver may be appointed when, impaired.....................................................
430
Receiver may be appointed when, not fully paid in.......................................
227
Reduction of, provisions for............................................................................... 230, 304
Relation of bond deposit to....................................................................................
304
Restoration of, when below the minimum required.........................................
227
Shareholders of, list to be kept and subject to inspection...............................
439
Shareholders owning two-thirds of, may place an association in liquidation..
500

INDEX TO NATIONAL-BANK ACT, ETC.

227

Capital stock— Continued.
Paragraph.
Shareholders owning two-thirds of, may change title and location................
211
Shareholders owning two-thirds of, may increase......................................... 228,229
Shareholders owning two-thirds of, may reduce...............................................
230
Shareholders owning two-thirds of, may extend corporate existence...........
216
Shareholders entitled to one vote on each share of, held by..........................
231
Shareholders of, converted State banks not liable, when................................
240
Shareholders of, not consenting to an extension may withdraw....................
219
Shares of, acquired for debt to be disposed of, when.......................................
426
State taxation of shares of......................................................................................
451
226
Subscriptions to, when payable...........................................................................
Surplus fund to be created to the amount of 20 per cent of...........................
424
Transfer of shares.............................................. .....................................................
241
United States registered bonds to be deposited as security for circulation
to be based on......................................................................................................
302
When increase of, becomes valid.........................................................................
228
Withdrawal of bonds on reduction of, or closing of business...........................
304
Withdrawal of bonds, limited...............................................................................
311
Withdrawal of, prohibited.....................................................................................
429
Cashier (see also President; Officers):
Appointment of.......................................................................................................
204
Bank examiner may examine, on oath...............................................................
527
Bond assignment by ...............................................................................................
306
Certificate of officers and directors.......................................................................
319
Certificate of stock payment.................................................................................
226
Circulating notes, to sign................................................................................... 324, 337
204
Election or appointment of...................................................................................
Embezzlement by...................................................................................................
436
Examiner of own bank, can not b e ....................................................................
527
Expiration of corporate existence, certification by......................................
221
Extension of corporate existence, certification by............................................
216
False certification of checks..................................................................................
436
Incomplete circulation, provisions relative to...................................................
417
Increase of stock, certification of..........................................................................
228
Liquidating bank, duty in....................................................................................
501
Penalty for—
Countersigning or delivering circulation improperly................................
344
False certification of checks....................................................................... 434,439
Issuing circulation of expired associations..................................................
747
Official malfeasance.........................................................................................
436
Pledging, etc., circulation..............................................................................
432
738
Unauthorized receipt of public money.......................................................
Protest of circulation, waiving notice of.............................................................
507
Proxy, not to act as.................................................................................................
231
Reports of condition, verified by...................................................................... 440,441
Reports of earnings and dividends, verified by................................................
442
Shareholders, lists of, by........................................................................................
439
Signature of, forged or wanting, not to invalidate circulation........................
417
Taxable circulation, returns by............................................................................
446
Unauthorized circulation, returns by..................................................................
710
Voluntary liquidation, certified by......................................................................
501
Cash reserve-required:
Banks elsewhere than in reserve city..................................................................
405
Central reserve city.................................................................................................
407
Reserve city banks..................................................................................................
406
Central reserve agents. (See Agents; Reserve; Reserve agents.)
Central reserve cities:
Cash reserve required..............................................................................................
407
Number and classification of.................................................................................
401
Certificate:
Certified copy of organization, evidence.............................................................
704
Comptrollers, of authority.....................................................................................
320
Converted State banks............................................................................................
245
Destruction of circulation on retirement account..............................................
416
Destruction of notes.................................................................................................
339
Execution of organization......................................................................................
203
Extension of corporate existence..........................................................................
217

228

INDEX TO NATIONAL-BANK ACT, ETO.

Certificate— Continued.
Paragraph.
Increase of stock valid, when................................................................................ .....228
%May be withheld, when.......................................................................................... ..... 320
Officers and directors to attest............................................................................... .....319
Of deposit as time deposits.......................................................................................... 403
Of payment of stock...................................................................................................... 226
Organization, to specify............................................................................................... 202
Payment of installments of stock to be certified............................................... .....226
Publication of Comptroller’s, of authority.......................................................... .....321
Purchase of property by receiver, required........................................................ .....523
Reduction of stock valid, when..................................................................................230
Sealed, of Comptroller, evidence.......................................................................... .....703
To be made by*association, showing bonds deposited with Treasurer.......... .....310
Voluntary liquidation...................................................................................................501
Certificates:
Gold, issue of..................................................................................................................433
Gold............................................................................................................................ .....754
Silver.......................................................................................................................... .....755
United States, subject to State tax............................................................................717
Certification of checks, when forbidden, penalty for........................................... 434,435
Certified checks, receivable under certain conditions for duties on imports,
internal taxes, etc.................................................................................................... 769,770
Certified copies of reports, etc................................................................................... 703, 704
Change of location, special acts authorizing....................................................................803
Change of title and location........................................................................................... .....211
Change of title and location, debts not affected by.................................................. .....212
Charges for transportation and assorting of circulation for redemption..................... 414
Charter (see also Corporate existence):
Certificate of Comptroller authorizing the bank to begin business known as. 320
Extension of.............................................................................................................. .....215
Forfeiture of................................................................................................................... 526
Issue of, to national banks.......................................................................................... 320
Reextension of.......................................................................................................... .... 222
Term for which issued.............. .................................................................................. 204
Charter number of Fifth-Third National Bank of Cincinnati, Ohio, changed.. . 802
Charter number to be printed on circulation............................................................. .... 325
Checks:
Certified, receivable for duties on imports and internal taxes.................... 769, 770
False certification of, unlawful.................................................................................. 434
Falsely certified, an obligation of association......................................................... 434
Penalty for false certification of............................................................................ .... 435
Chicago, 111., designated as central reserve city............................................................ 401
Cincinnati, Ohio, change of charter number of Fifth-Third National Bank....... .... 802
Circulation:
Aggregate amount not limited............................................................................... .... 332
Amount of, obtainable................................................................................................. 323
Amount of, obtainable by gold banks...................................................................... 341
Association may issue.................................................................................................. 204
Association to receive interest on bonds as long as, honored.......................... .... 311
Associations consolidating, deposit of lawful money to retire, unnecessary. 503
Associations to redeem, in lawful money on demand....................................... .... 401
Banks other than national, tax on.................................................................... 708-710
Bonds in excess of amount required may be withdrawn................................. .... 304
Bonds forfeited when, dishonored.............................................................................508
Bonds having been forfeited.................................................................................. ....508
Bonds, United States, to secure............................................................................ .... 302
Capital not to be reduced below amount of outstanding................................. ....230
Cancellation of redeemed............................................................................................514
Certificates of destruction, by whom executed.................................................. ....339
Charter number on................................................................................................... ....325
Collection of tax on......................................................................................................448
Consolidating banks................................................................................................. ....503
Cost of plates to be paid by association............................................................... ....414
Counterfeiting, etc........................................................................ 344, 346, 740, 741, 747
Countersigning unlawfully..................................................................................... ....344
Denominations, minimum...................................................................................... ....329
Deposit of lawful money to withdraw......................................................................314

INDEX TO NATIONAL-BANK ACT, ETC.

229

Circulation— Continued.
Paragraph.
Deposit of United States bonds to secure...........................................................
302
Deposit of bonds to be increased when capital is increased...........................
304
Destroyed, to be replaced by an equal amount of new notes........................
414
Disposition of redemption account balances......................................................
416
Enforcing payment of tax on................................................................................
448
Examination of bank upon request of, by agent of Comptroller....................
508
Expense of plates for new notes of extended banks.........................................
220
Expenses of redemption, how paid......................................................................
414
Expired associations, penalty for issuing............................................................
747
Extended bank, shall differ from prior issue.....................................................
220
Failed banks, redemption of.................................................................................
505
Failure to redeem....................................................................................................
507
Federal reserve banks.............................................................................................
317
For what, is receivable...........................................................................................
337
Fraudulent notes to be so stamped......................................................................
748
Gain from lost and destroyed................................................................................
220
Gold banks, amount not limited..........................................................................
342
Gold bank, to be redeemed in gold coin............................................................
341
Government depositaries to receive, at par.......................................................
243
Imitation of, prohibited........................................................................................
345
Increasing capital stock, use of, prohibited.......................................................
428
Inscription on....................................................................................................... 324, 341
Lawful money deposit to retire circulation limited..........................................
314
Limit on aggregate amount of................................................ ..............................
323
Liquidating banks, redemption of.......................................................................
505
Liquidating bank to deposit lawful money to redeem.....................................
504
Maceration of........................................................................................................ 339, 340
Minimum amount that may be withdrawn........................................................
312
Minimum denominations.......................................................................................
329
Minimum deposit of bonds required....................................................................
302
Mutilation of, prohibited........................................................................................
346
Not considered borrowed money..........................................................................
427
Notice of redemption of, to be forwarded to bank............................................
414
Notice to present, for redemption when bonds have been forfeited.............
510
Of converted State bank, where redeemable....................................................
246
Other, prohibited for national bank....................................................................
338
Panama Canal bonds to secure..............................................................................
303
Paper for printing....................................................................................................
326
Penalty for engraving, etc., without authority.................................................
742
Penalty for failure to make return of, taxable...................................................
447
Place for redemption of..........................................................................................
414
Plates and dies for printing of...............................................................................
327
Plates and dies to be engraved for.......................................................................
324
Pledging, as security prohibited..........................................................................
428
Profit on unredeemed, inures to the United States..........................................
220
Proceedings when return is not made.................................................................
712
Prohibition against circulating uncurrent notes................................................
431
Proportion to bonds deposited..............................................................................
323
Proportion to capital...............................................................................................
302
Protest of...................................................................................................................
507
Receivable at par by all national banks............................................................
425
Receivable for what................................................................................................
337
Redeemed, to be canceled.....................................................................................
514
Redemption fund.....................................................................................................
414
Redemption of, closed banks............................................................................ 505, 506
Redemption of, extended banks..........................................................................
220
Redemption of, incomplete...................................................................................
417
Redemption of, in United States notes...............................................................
414
Redemption of, liquidating banks................................................................... 505, 506
Redemption records................................................................................................
513
Reduction or retirement of....................................................................................
313
Refunding excess tax..............................................................................................
449
Register of Treasury’s signature to be on............................................................
324
Reserve not determined by...................................................................................
402
Reserve not to be kept on......................................................................................
402
Reserve requirement repealed..............................................................................
402

230

INDEX TO NATIONAL-BANK ACT, ETC.

Circulation—Continued.
Paragraph.
Restriction of tax provisions..................................................................................
714
Restriction on notes less than $ 1 ............................................. ............................
718
329
Restriction on notes less than $5............................................. ............................
Restriction on notes of $5.......................................................................................
323
Retirement account..................................................................................................
416
Retirement of........................................................................................................ 314, 315
Retiring, under provisions of Federal reserve act..............................................
304
Semiannual return of, subject to tax................................................................ 446, 711
Signing........................................................................................................... 324,337,417
Statement concerning, of closed banks to appear in annual report of Comp
troller.......................................................................................................................
110
Tax on.........................................................................................................................
444
Tax on converted bank......... ..................................................................................
713
Tax on, insolvent banks remitted . *................................................................ 451, 715
Tax on, secured by Panama Canal bonds............................................................
303
Tax on, State bank issue..................................................................................... 705, 712
Tax on, subject to State law...................................................................................
717
Treasurers and public depositaries to return all, of closed banks..................
505
When exempt from tax............................................................................................
706
When issuable...........................................................................................................
337
Withdrawal of, by depositing lawful money, limitation of.................. 312, 314, 414
Worn or mutilated, to be redeemed......................................................................
414
Worn out or mutilated, destroyed.................................................................... 339, 340
Citizens’ national banking associations; where..........................................................
214
516
Claims (see Insolvency; Receiver), notice to present, against insolvent banks..
Classification of central reserve cities............................................. •............................
401
Clearing house, receipt in settlement of balances of gold and silver certificates
by.....................................................................................................................................
433
Clerks:
Appointment and qualification of, by the Secretary........................................
105
Clerical force for the redemption of circulating notes......................................
415
Duties of, fixed by the Comptroller......................................................................
105
105
Employment of, for the bureau, by the Comptroller.......................................
Names and compensation of, in annual report and Official Register........ 110, 111
231
Of banks can not act as proxy...............................................................................
Closed associations (see Insolvency), statement to appear in annual report........
110
Coin (see Gold; Silver), right to redeem circulation in ............................................
414
Coins, Philippine Islands, legal tender......................................................................
719
Collection of penalty for failure to make semiannual return of circulation.........
446
Collection of tax on circulation, enforcement o f.......................................................
448
Commencement of business, provisions to be complied with, prior to.................
319
Commercial paper:
Discount of............................................................................................................ 422, 427
Excepted from limit on loans.................................................................................
425
Commission, not to be paid officer, director or employee of member bank___ 438c
Commissioner of Internal Revenue, tax on circulation of insolvent banks to be
remitted by....................................................................................................................
715
Commissioner of Internal Revenue, returns of circulation other than national,
to be made to............................................................................................................ 711,712
Committee:
Of appraisal...............................................................................................................
219
Of destruction, provisions for.................................................................................
339
Compounding debts of insolvent national banks.......................................................
515
Comptroller of Currency:
Action as to agent of shareholders.........................................................................
522
Agent, special, to be appointed for association failing to redeem circulation.
508
Annual report to be made to Congress by...........................................................
110
Appointment, term, and salary* or........................................................................
101
Approval required for extension of charter.........................................................
217
Approve receiver’s purchase of property......................................................... 524, 525
Approve reserve agent.............................................................................................
401
Articles of association and organization certificate of national banks to be
filed with............................................................................................................ 201,202
Assessment of tax on circulation when bank fails to make return.................
447
Bond of.......................................................................................................................
102
Bonds and records of, with Treasurer, access to................................................
309

INDEX TO NATIONAL-BANK ACT, ETC.

231

Comptroller of Currency—Continued.
Paragraph.
Bonds, sale of, privately or at public auction, by........................................ 511,512
Bond transfers to be recorded by.........................................................................
307
Capital stock, increase or reduction of, to be approved by................. 228,229,230
Certificate to begin business..................................................................................
320
Certificates of destruction of circulation on retirement account....................
416
Certified copy of organization certificate, evidence.........................................
704
Charter number of bank, to be put on circulating notes by ...........................
325
Circulation—
Of extended banks to be destroyed by.......................................................
220
324
Plates and dies to be engraved by order of................................................
To be issued by................................................................................................
323
Worn, mutilated, destruction of............................................................... 339, 340
Cited in injunction of receiver.............................................................................
518
Clerks.........................................................................................................................
105
Creditors of failed banks, dividends to be paid to, by.....................................
517
Distribution of annual report of........................................................................ 112,113
Duties of...................................................................................................................
100
Enforce stockholders’ liability.............................................................................
240
Engraving of plates for printing of circulation to be ordered by...................
324
Enjoined by bank, how.........................................................................................
518
Evidence, sealed certificates.................................................................................
703
Examiners, appointed by......................................................................................
527
Examiners’ salary, recommended by..................................................................
527
Examiners’ reports to.............................................................................................
527
Exchange of bonds to secure circulation............................................................
311
Expense of examinations assessed by .................................................................
527
Expense of bureau..................................................................................................
327
Extension of corporate existence, approval of, by............................................
215
Federal Reserve Board, ex officio member of....................................................
101
Fine for failure to make reports to.......................................................................
443
Forfeit, cancel, or sell bonds for default in payment of notes........................
512
Forfeiture of charter, suit to be brought by.......................................................
526
Impairment of capital, action to be taken by...................................................
430
Interest in banks, prohibited................................................................................
106
Jurisdiction of district court to enjoin................................................................
701
Liquidation of associations, to be notified of.....................................................
501
List of shareholders, copy to be sent to..............................................................
439
National bank examiners appointed by..............................................................
527
Notice to banks short in reserve...........................................................................
402
Notice to creditors of insolvent banks.................................................................
516
Notice to present circulation for redemption when bonds have been for
feited......................................................................................................................
510
Oath of directors to be filed with.........................................................................
236
Oath to be taken and bond to be given by........................................................
102
Organization certificate to be filed with.............................................................
203
Payment of capital to be certified to...................................................................
226
Plates and dies, exanfination of............................................................................
328
Printing annual report of................................................................................... 112,113
Proceedings to enjoin.......................................................................................... 701,702
Qualification of........................................................................................................
102
Reappraisal of value of stock of shareholders by..............................................
219
Receivers appointed by.............................................................................. 402, 515,520
Reports of banks, other than national, to be obtained and published, b y ..
110
Reports to be made to........................................................................................ 440,441
Report to be made annually to Congress............................................................
110
Rooms, etc................................................................................................................
108
Salary of....................................................................................................................
101
Seal of........................................................................................................................
107
Shareholders’ agent, action as to..........................................................................
522
State banks converted, approved by...................................................................
245
Term of....................................................................................................................
101
Title and location, change of, to be approved by.............................................
211
Title of national banks subject to approval of...................................................
202
Transfer and assignment of bonds to be countersigned by..............................
306
To determine if association can commence business........................................
319
Withdrawal of circulation to have consent of....................................................
314

232

INDEX TO NATIONAL-BANK ACT, ETC.
Paragraph.

Comptroller of Treasury, refunding of excess payment of tax on circulation to
be approved b y ...........................................................................................................
449
Condition, report o f ........................................................................................................
440
Congress:
Comptroller’s annual report to be made t o ................................................... 110, 111
Visitatorial powers o f..................................... ........................................................
527
216
Consent of two-thirds necessary for extension of charter.....................................
Consolidation of national banks, provisions fo r ................................................. 503, 503a
Contract insuring or guaranteeing deposits by national banks.............................
903
Contracts, power for association to make..................................................................
204
Contributions, political, prohibited............................................................................
437
Conversion of national gold banks into currency banks.......................................
343
Conversion, State banks...............................................................................................
245
Corporate existence:
Expiration o f ...........................................................................................................
221
Extension o f......................................................................................................... 215-217
Reextension of.........................................................................................................
222
Term of.......................................................................................................................
204
Corporate powers. (See Powers.)
Corporate seal, power to adopt and use......................................................................
204
Corporation (see also Liability of associations), association becomes, when___
204
Coporations, interlocking directorates forbidden................................................. 234, 235
Cost. (See Expense.)
Cost of plates............................................................................................................... 220,414
Counterfeits (see Fraudulent notes, e tc .)...................................................................
748
Counterfeiting, making or using notes, plates, tools, etc..................................... 740, 748
Counterfeiting, plates and dies, to be guarded against............................................
324
Country banks:
Cash reserve required..............................................................................................
405
Distribution of reserve............................................................................................
405
Reserve required to be held with Federal reserve bank..................................
405
Reserve requirements for........................................................................................
405
Reserve that may be held with bank in reserve or central reserve cities...
405
Coupon bonds, to be exchanged for registered...........................................................
305
Courts. (See Crimes, jurisdiction, etc.)
Creditors:
Bill in equity by, against shareholders................................................................
521
436
Checks falsely certified a valid obligation of association...............................
Directors’ liability....................................................................................................
526
Expiration of existence, notice to........................................................................
221
Insolvency, notice of, to.........................................................................................
516
Nonpayment of circulation, notice of, to............................................................
510
Payment of assets of failed banks.........................................................................
517
Preference of, illegal................................................................................................
529
Rights not to be impaired......... ............ ...............................................................
529
Shareholders, list of, subject to inspection by...................................................
439
Shareholders, personal liability of, to............................. ....................................
240
Voluntary liquidation, notice of, to.....................................................................
501
Creditor’s bills; against shareholders..........................................................................
521
Crimes, jurisdiction, etc.:
Abstraction of money, funds, etc..........................................................................
436
Aiders and abettors..................................................................................................
436
Counterfeiting circulation, etc........................................................................... 740, 744
Dealing in counterfeit circulation........................................................................
746
Embezzlement...................................................................................... 436,732,737,738
Enjoining of Comptroller and receiver.......... .....................................................
518
Evidence, certified copy of organization certificate.........................................
704
Evidence, sealed certificate of Comptroller competent....................................
703
False certification of checks............................................................................... 434, 435
False entries..............................................................................................................
436
Forging or counterfeiting United States securities..........................................
740
Having or taking unauthorized impressions of tools, etc....... ..................... 744, 745
Illegal possession or use of material for circulation...........................................
742
Imitating circulation for advertising purposes.. ................................................
345
Improper countersigning or delivering circulation...........................................
344
Interlocking directorates forbidden......................................................................
235

INDEX TO NATIONAL-BANK ACT, ETC.

233

Crimes, jurisdiction, etc.— Continued.
Paragraph.
Issuing circulation without authority..................................................................
436
Issuing circulation of expired associations..........................................................
747
Jurisdiction, general, of national-bank cases.................................................. 214, 218
Jurisdiction to enjoin Comptroller or receiver...................................................
701
Misapplication, willful............................................................................................
436
Mutilating circulation.............................................................................................
346
Obligations of the United States defined............................................................
739
Official malfeasance.................................................................................................
436
Passing counterfeit circulation..............................................................................
743
Pledging United States notes or bank circulation.............................................
432
Political contributions............................................................................................
437
Suits in which United States or its officers are parties.....................................
700
Taking unauthorized impression of tools, etc....................................................
744
Violation of national-bank act...............................................................................
526
Currency. (See Circulation; Gold; Gold certificates; Silver; Silver certifi
cates; Lawful money; United States note certificates; Federal reserve notes.)
Currency Bureau:
Designation of Office of Comptroller of Currency..............................................
100
Expense of.................................................................................................................
327
Expense of, in liquidating failed banks..............................................................
I ll
Offices, vaults, etc., for...........................................................................................
108
Submission of list of employees........................................................................ 110, 111
Custodian of plates and dies, etc., for Federal reserve and national-bank notes..
327

234

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph,
Date of election of directors........................................................................................... .....£38
Date upon which an association becomes a body corporate......................................... 204
Date when application for extension of charter may oe made............................... ..... 215
Dates for payment of tax on circulation...................................................................... ..... 303
Dealing in counterfeit circulation, penalty for.......................................................... .....746
Debts, compounding of:
Not affected by change of title or location............................................................... 212
Real estate held for....................................................................................................... 223
Declaration of dividends................................................................................................ ..... 428
Default in payment of circulation............................................................................ 507, 509
Deficiency. (See Bonds; Capital; Circulation; Receiver; Reserve.)
Definitions:
Bad debts........................................................................................................................429
Central reserve cities............................................................................................... .....401
Demand and time deposits.......................................................................................... 403
Of national banking associations and associations............................................. ..... 300
Of United States bonds........................................................................................... ..... 301
Reserve cities................................................................................................................. 402
Delinquent shareholders, sale of stock of.................................................................... ..... 430
Delivery of circulating notes......................................................................................... ..... 323
Demand deposits defined............................................................................................... ..... 403
Demands for which national-bank notes are receivable........................................... .....337
Denominations:
Circulation of gold banks........................................................................................ .....341
Circulation of national banks................................................................................. .....324
Converted State-bank shares................................................................................ ..... 245
Gold certificates................................................................................................... 433,754
Panama Canal bonds...................................................................................................767
Shares of national-bank stock............................................................................ 225,245
Silver certificates.........................................................................................................755
Treasury notes......................................................................................................... .....764
Depositaries of public moneys................................................................................ 243, 244
Depositaries of the United States, circulation of liquidating and insolvent
banks, duty of, to return........................................................................................ —
505
Deposit guaranty law:
Kansas........................................................................................................................ .....901
Oklahoma........................................................................................................................900
Deposit not required in consolidation............................................................................... 503
Deposit of United States bonds not required............................................................. ..... 302
Deposit of lawful money:
For circulation of extending banks............................................................................ 220
To redeem circulation of liquidating banks............................................................. 502
To withdraw circulation............................................................................................... 311
Deposits:
Insolvent banks, deposit of funds of....................................... ............................ .....515
Insurance or .guaranty of, by national banks...........................'............................... 903
Not considered borrowed money........................................................................... ..... 427
Public money................................................................................................ 243,244, 730
Postmasters’ .................................................................................................................... 731
Reserve to be kept on.......................................................................... 405, 407,414, 744
Reserve determined by....................................................................................... 402, 410
To redeem circulation, disposition of........................................................................ 416
United States, no reserve required to be held against......................................... 413
Various kinds defined................................................................................................... 403
With nonmember banks limited........................................................................... ..... 408
Depreciation (see Bonds; Circulation) in value of bonds to secure circulation.. 311
Deputy Comptroller of Currency:
Additional, bond of....................................................................................................... 104
Appointed by Secretary of the Treasury.......................................................... 103,104
Appointment.................................................................................................................. 103

INDEX TO NATIONAL-BANK ACT, ETC.

235

Deputy Comptroller of Currency—Continued.
Paragraph.
Bond...........................................................................................................................
103
Duties.........................................................................................................................
103
Interest in bank prohibited...................................................................................
106
Oath to be taken......................................................................................................
103
Salary of.....................................................................................................................
103
Deputy comptroller, additional:
Bond of......................................................................................................................
104
Powers of....................................................................................................................
104
Salary of....................................................................................................................
104
Description of national-bank notes..............................................................................
324
Designation of central reserve cities............................................................................
401
339
Destruction committee provided for...........................................................................
Destruction of circulation of extended banks............................................................
220
Destruction of worn out and mutilated notes........................................................ 339,340
Dies. (See Plates.)
Director of Bureau of Engraving and Printing designated as custodian of dies,
plates, etc., of Federal reserve and national-bank notes.....................................
327
Directors:
Appointment or election of...................................................................................
204
Assessment for impairment of capital, provisions for enforcement of............
430
Attestation of reports to Comptroller by.............................................................
440
Capital impaired, duties in....................................................................................
227
Certificate of officers and........................................................................................
319
Certification of, to extension.................................................................................
216
Conversion of State banks, action by..................................................................
245
Dividends, declaration of, by...............................................................................
428
Duties of....................................................................................................................
204
Election of................................................................................................................
204
Election postponed..................................................................................................
238
Embezzlement, penalty.........................................................................................
436
Enforcing payment of capital...............................................................................
227
Failure to hold annual election............................................................................
238
Forfeiture of charter for violation, etc., by........................................................
526
Interlocking, prohibited.........................................................................................
234
Liquidated bank, duties in...................................................................................
501
Liability of................................................................................................................
526
Names and residences of, to be ascertained by Comptroller...........................
319
Not to be appointed by the Comptroller to examine own bank....................
527
Number and election of..........................................................................................
232
Number, constituting board of.............................................................................
232
Oath of.......................................................................................................................
236
Penalty for issuing circulation of expired association.....................................
747
Penalty for official malfeasance............................................................................
436
Penalty for political contributions.......................................................................
437
Penalty for unauthorized receipt of public money...........................................
738
President...................................................................................................................
239
President of board to be a......................................................................................
239
Powers of....................................................................................................................
204
Provisions for............................................................................................................
232
Proxy can not act as...............................................................................................
231
Purchase of securities from or sale to director................................................... 438d
233
Qualifications of........................................... ...........................................................
Rate of interest paid directors.............................................................................
438e
Restrictions as to interlocking..............................................................................
234
Sale of stock acquired from delinquent shareholders.....................................
227
Shareholders dissenting to extension to give notice, etc...............................
219
Term of......................................................................................................................
232
Three-fourths to be resident of State...................................................................
233
Vacancies in board of.............................................................................................
237
Disbursing funds of United States officers, depositing with national-bank
depositaries..................................................................................................................
730
Disbursing officers, penalty for unauthorized deposit of public money, by___
737
Discount. (See Loans; Liability of association; Interest.)
Dismissal of officers.........................................................................................................
204
Disposal of redeemed circulating notes......................................................................
513
Disposition of assets of insolvent banks......................................................................
517

236

INDEX TO NATIONAL-BANK ACT, ETC.
Paragraph.

Disposition of earnings, by United States, from Federal reserve banks................... 750
Disposition of redemption account.............................................................................. ..... 416
Dissenting shareholders, withdrawal of, on extension.............................................. ..... 219
Dissolution (see Expiration of corporate existence; Forfeiture; Insolvency;
Liquidation) of banks not extending period of succession.................................. ..... 221
Distinctive paper:
National-bank circulation, etc., to be printed on................................................... 326
Unauthorized possession or use of......................................................................... ..... 742
Distribution of assets by shareholders’ agent................................................................... 522
Distribution of reserve:
Banks elsewhere than in reserve cities................................................................ ..... 405
Central reserve cities, banks in..................... - ........................................................... 407
Reserve cities, banks in.......................................................................................... ..... 406
District attorney, suits in which United States or its officers are parties,,to be
conducted by ................................................................................................................ ..... 700
District court, jurisdiction of, to enjoin Comptroller..................................................... 701
Dividends:
Comptroller to make ratable, of assets of insolvent banks............................... ..... 517
Directors may declare, when................................................................................. ..... 424
Earnings and, to be reported................................................................................. ..... 442
Not to be paid by certain converted State banks when surplus is impaired. .
240
Penalty for failure to report earnings and........................................................... ..... 443
Prohibited when reserve is short................................................................................ 409
Restriction on association’s liability.................................................................... ..... 427
Unearned, prohibited.............................................................................................. ..... 429
Unpaid, not considered borrowed money........................................................... ..... 427
Divisions of Issue and Redemption established in office of United States Treas
urer................................................................................................................................. ..... 752
Drafts:
Against deposits not considered borrowed money............................................. ..... 427
Liability of association, relative to....................................................................... ..... 427
Member banks of Federal Reserve System may accept................................... ..... 206 .
Obligations of United States, including.................................................................... 739
Official malfeasance....................................................................................................... 436
Penalty for mutilating............................................................................................. ..... 346
Dues. (See Tax; Duties.)
Duties:
Associations organized under the act of February 25, 1863............................. ..... 247
Circulation—
Converted State banks.......................................................................................... 713
Enforcing payment of, on............................................................................... ..... 448
Exempt from..................................................................................................... ..... 706
Not receivable for customs......................................................................1 ...
337
Refunding excess on........................................................................................ .....449
Restrictions on.................................................................................................. ..... 714
Semiannual on............................................................................................... 444, 447
Unauthorized................................................................................................. 705, 710
Comptroller’s............................................................................................................. ..... 100
Deputy Comptroller’s.............................................................................................. . 103
Directors’ ........................................................................................................ 204,232, 236
Disbursing officers’ ................................................................................................... ..... 730
Examiners’ ........................................f . .........................................................................527
Gold certificates receivable for.............................................................................. ..... 754
Imports and internal taxes may be paid by certified check....................... 769, 770
Officers’...................................................................................................................... .....204
On imports, certified checks receivable for, under certain conditions..........
770
Public depositaries, designation and....................................................................
243
Receiver, appointment and....................................................................................
515
Shareholders’ agent....................................................................................................... 522
Duty of Treasurer in regard to circulation of liquidating and insolvent banks. 505

INDEX TO NATIONAL-BANK ACT, ETC.

237

Paragraph.
Earnings and dividends to be reported......................................................................
442
Earnings by United States from Federal reserve banks, disposition of................
750
Election of president of the board...............................................................................
239
Election or appointment of directors, appointment officers................................ 204,232
Elections:
Change of title or location........................................................................ . ...........
211
Corporate powers........................................................................................ .............
204
Extension of corporate existence..........................................................................
215
Failure to hold annual............................................................................................
238
Failure to hold at appointed time........................................................................
238
Increase of stock......................................................................................................
229
Number of directors................................................................................................
232
Oath of directors......................................................................................................
236
Qualifications of directors......................................................................................
233
Qualifications of shareholders................................................................................
231
Reduction of stock..................................................................................................
230
Shareholders’ agent.................................................................................................
522
Voluntary liquidation.............................................................................................
500
Embezzlement, misapplication of funds, etc.:
Money-order funds..................................................................................................
732
Penalty for................................................................................................................
436
Unauthorized deposit of public money by disbursing officer..................... 737, 738
Employees and expenses........................................................................................... 110,327
Employees, rate of interest paid..................................................................................
438e
Enforcing payment of capital stock, provisions for..................................................
227
Enforcing payment of tax on circulation...................................................................
448
235
Enforcement of act in reference to interlocking directorates.................................
Engraving. (See Circulation; Plates and dies.)
Enjoining Comptroller or receiver from further proceedings..................................
518
Equity, bills in, against shareholders.........................................................................
521
Estates, liability of, as shareholders............................................................................
242
Estimate of reserve requirements................................................................................
410
Evidence....................................................................................................................... 703, 704
Examination of organization proceedings preliminary to granting authority to
begin business..............................................................................................................
319
Examinations:
Annual, of bonds.....................................................................................................
310
Ascertainment of value of stock of dissenting shareholders............................
219
Assessment for..........................................................................................................
527
Bonds and records, provisions for.........................................................................
309
Compensation of examiners...................................................................................
527
Examiners to make.................................................................................................
527
Expense of................................................................................................................
527
Federal reserve banks.............................................................................................
527
Foreign branches of national banks.....................................................................
210
Limitation of visitatorial powers..........................................................................
528
439
List of shareholders subject to..............................................................................
Member banks.........................................................................................................
527
National banks.........................................................................................................
527
Number to be made................................................................................................
527
Plates and dies, annually.......................................................................................
328
319
Preliminary, to begin business.............................................................................
Preliminary, expense of.........................................................................................
519
Qualification of examiners.....................................................................................
527
Special, of extended associations.........................................................................
217
State banks and trust companies..........................................................................
527

238

INDEX TO NATIONAL-BANK ACT, ETC.

Examiners:
Paragraph.
Appointment o f.......................................................................................................
527
Member bank not to make loan or grant any gratuity to................................
438a
Not to perform any service for compensation for any bank or officer
438b
Not to disclose name of borrowers or collateral without first obtaining
438b
written consent of the Comptroller..................................................................
Powers of....................................................................................................................
527
Qualifications of........................................................................................................
527
Reports of..................................................................................................................
527
Salaries of.......... ........................................................................................................
527
Special commission..................................................................................................
320
Exceptions:
Associations organized under the act of 1863.....................................................
319
Converted State bank may continue to hold stock of other national banks..
245
Converted State banks may retain branches......................................................
246
Converted State banks, par value of stock..........................................................
245
Indebtedness of national banks, restriction on...................................................
427
Insolvent national banks not required to pay tax.............................................
450
Tax on obligations of United States.....................................................................
716
Tax on circulation secured by Panama Canal bonds........................................
303
To limit on amount of loans...................................................................................
425
To restriction on amount of borrowed money.....................................................
427
Excessive loans.................................................................................................................
425
Excess payment of tax on circulation, refunding of.................................................
449
Exchange, bills of, member banks of the Federal Reserve System may accept.. .
206
Exchange of bonds..........................................................................................................
323
Exchange of bonds to secure circulation.....................................................................
311
Exchange of certain United States bonds for Treasury gold notes by Federal
reserve banks.................................................................................................................
318
Exchange of coupon for registered bonds...................................................................
305
Execution. (See Suit.)
Executor, power of national bank to act as................................................................
208
Executors, not personally liable...................................................................................
242
Existence:
Expiration of.............................................................................................................
221
Extension of..............................................................................................................
215
Reextension of..........................................................................................................
222
Term of corporate, of national banks....................................................................
204
Expenditures on account of Panama Canal................................................................
767
Expenses:
Bureau of the Currency..........................................................................................
327
Bureau, to be stated in Comptroller’s annual report..................................... 110, 111
Circulation, redemption of.....................................................................................
414
Circulation, transportation and redemption of retired......................................
313
522
Duties of shareholders’ agent relative to.............................................................
Examinations............................................................................................................
527
Examinations, dissenting shareholders................................................................
219
Examinations, special....... .....................................................................................
217
Examiners..................................................................................................................
527
Liquidation of failed national banks....................................................................
I ll
Of examinations.......................................................................................................
527
Plates, cost of........................................................................................................ 220, 414
Plates and dies, examination of............................................................................
328
Reappraisal for dissenting shareholders...............................................................
219
Receivership, how paid..........................................................................................
519
Receivership, paid prior to election of shareholders’ agent............................
522
Sale of bonds..............................................................................................................
511
Sale of delinquent stock..........................................................................................
227
Expiration of charter.......................................................................................................
221
Expired associations, penalty for issuing circulation of...........................................
747
Extension of charter.........................................................................................................
215
Extension of charter, provisions for redemption of circulation..............................
220

INDEX TO NATIONAL-BANK ACT, ETC.

239

P.
Failed national banks:
Paragraph.
Redemption of circulation.....................................................................................
505
Report of expenses................................................................................................... ■ 111
Failure (see Insolvency):
Of shareholder to pay installments.......................................................................
227
To hold election at appointed time......................................................................
238
To make reports to Comptroller............................................................................
443
To make return on circulation other than national...........................................
712
To pay up capital, assessment for.........................................................................
430
To redeem circulation.............................................................................................
507
To redeem circulation of extended bank?...........................................................
220
False entry, penalty for, official malfeasance............................................................
436
Falsely certifying checks...............................................................................................
434
Penalty for...........................................•....................................................................
435
Farm lands, loans on.......................................................................................................
205
Federal reserve agent:
Information concerning member banks to be furnished Federal Reserve
Board by................................................................................................................
527
527
Special examination of member banks to be approved by.............................
Federal reserve banks:
Circulation may be issued to.................................................................................
317
Examination of.........................................................................................................
527
440
Examinations of, by Federal Reserve Board.....................................................
Fiscal agents of United States.............................. ...............................................
615
Government depositaries........................................................................................
615
Government deposits in.........................................................................................
244
Reserve required to be held with, by banks elsewhere than in reserve
cities.......................................................................................................................
405
Reserve required to be held by reserve city banks..........................................
406
Reserve required to be held by central reserve city banks............................
407
Reserve, withdrawal of, by member banks........................................................
409
Special examination of member banks may be ordered by ............................
527
Statements and reports by.....................................................................................
440
Treasury gold notes may be obtained in exchange for certain United States
bonds......................................................................................................................
318
United States bonds, purchase of, by..................................................................
316
Federal Reserve Board:
Approval required for exchange of United States bonds for Treasury gold
notes.......................................................................................................................
318
401
Central reserve cities may be changed or added to, by...................................
Comptroller of the Currency ex officio member of............................................
101
Examination of Federal reserve banks ordered by...........................................
527
Examiners’ salaries fixed by.................................................................................
527
Federal reserve banks may be required to purchase United States bond? by.
316
Federal reserve notes to be issued by Comptroller of Currency under the
supervision of........................................................................................................
100
Information concerning member banks to be furnished by Federal reserve
agents.....................................................................................................................
527
Interlocking directorate act as to banks and trust companies to be enforced
by............................................................................................................................
235
Issue of Federal reserve notes under supervision of.........................................
100
May change or add to central reserve cities.......................................................
401
Permission for member bank to secure discounts for nonmember banks may
be granted b y .......................................................................................................
408
Reduction of capital to be approved by.............................................................
230
Reserve cities may be changed or added to by.................................................
40 L
Reserve withdrawals under regulations b y ........................................................
409
Special examination of member banks to be approved by.............................
527
Statements and reports from Federal reserve banks and member banks may
be required by......................................................................................................
440

240

INDEX TO NATIONAL-BANK ACT, ETC.

Federal reserve notes:
Paragraph.
Comptroller of Cunency to issue, under supervision of Federal Reserve
Board.......................................................................................................................
100
Execution of laws relating to..................................................................................
100
Issue of........................................................................................................................
317
Federal Trade Commission, enforcement of part of interlocking directorate act
by ....................................................................................................................................
235
519
Fees (see Examiners; Receivers), protesting circulation.........................................
Fees not to be paid officers, directors, or employees of member bank..............
438
Fifth-Third National Bank, Cincinnati, Ohio, charter number changed.............
802
Filling vacancies..............................................................................................................
237
Fine. (See Penalty.)
Firm. (See Liability of association.)
First lien, United States has, on all assets..................................................................
511
Fiscal agents (see Agent; Government depositaries), Federal reserve banks as..
615
Five per cent redemption fund.....................................................................................
414
Not counted as reserve............................................................................................
412
Foreign branches, national banks may establish.......................................................
210
Foreign coins not legal tender.......................................................................................
719
Issue of certificates on gold....................................................................................
754
Forfeiture of bonds when association refuses to redeem circulation......................
508
Forfeiture of charter, suit to be brought for, by Comptroller of the Currency___
526
Forged signatures on bank notes not to prevent redemption of.............................
417
Forgery of United States securities...............................................................................
740
Formation of national banking associations................................................................
201
Form of report of condition............................................................................................
440
Franchise, forfeiture of....................................................................................................
526
Fraudulent notes, United States and national-bank officers to mark....................
748
Furniture for Currency Bureau......................................................................................
108

INDEX TO NATIONAL-BANK ACT, ETC#

241

Paragraph.
Gain from failure to redeem circulation of extended banks...................................
220
General fund of United States may be deposited in Federal reserve banks.. . .
615
Gifts, not to be made to officer, director, or employee of member bank..........
438
Gold:
Banks not required to take circulation of other banks at par.........................
421
Certificates not to be issued when reserve of gold coin and bullion is depleted.
754
Certificates, when part of national-bank reserve...............................................
433
Circulation of gold banks redeemable in.............................................................
341
Deposit of, for certificates................................................................................... 433,754
Dollar, standard unit of value...............................................................................
749
Issue of certificates of deposit of....................................................................... 433, 754
Organization of gold banks.....................................................................................
341
Reserve of one hundred and fifty millions.........................................................
750
Reserve of gold banks to be silver and................................................................
342
Taxation of, gold certificates, etc., by State......................................................
717
Gold banks:
Circulation of, issuable...........................................................................................
341
Conversion of............................................................................................................
343
Deposit of bonds by................................................................................................
341
Exempted from provisions relative to other bank circulation........................
421
Organization of.........................................................................................................
341
Reserve required for............................................................................................ 342,401
Tax on circulation..................................................................................................
444
Gold bank notes..............................................................................................................
341
Gold certificates:
Deposit of gold for.............................................................................................. 729, 754
Deposit of foreign gold coin for.............................................................................
754
Issue of, prohibited, when.....................................................................................
729
Minimum denominations................................................................................... 729, 754
Payable to order......................................................................................................
754
Receivable for.............................................................................................. 433, 719, 754
Gold coins:
Foreign, not legal tender........................................................................................
719
United States, legal tender....................................................................................
720
United States, legal tender in Philippine Islands............................................
719
318
Gold notes, issue of, in exchange for certain United States bonds.......................
Gold reserve in Treasury, gold certificates not to be issued wlien depleted..........
754
Government deposits.....................................................................................................
615
Government depositaries:
Deposit ana withdrawal of public moneys..........................................................
730
Deposits by certain postmasters...........................................................................
731
Designation and duties of......................................................................................
243
Federal reserve bank as.........................................................................................
244
National banks as....................................................................................................
243
National-bank circulation to be received by.....................................................
243
National banks as financial agents of the Government....................................
243
Penalty for misapplication of money-order funds.............................................
732
Penalty for unauthorized deposit of public moneys.........................................
737
Penalty for unauthorized receipt or use of public moneys.............................
738
Reserves on. (See Federal Reserve act, par. 619.)
Secretary of the Treasury to designate................................................................
243
Securities to be deposited by................................................................................
243
Government’s funds to be deposited, where..................................... .......................
615
Gratuity—Bank not to grant gratuity to any national-bank examiner................
438a
Guaranty law:
Kansas........................................................................................................................
901
Oklahoma.................................................................................................................
900
Guaranty of deposits by national banks....................................................................
903
Guaranty of solvency of bank.....................................................................................
902
Guardian, power of national bank to act as..............................................................
208
Guardians, not personally liable.................................................................................
242

164312°—20------16

242

INDEX TO NATIONAL-BANK ACT, ETC.

Hawaii:
Paragraph.
National banking laws applicable to...................................................................
801
Reserve requirements, etc., for national banks i n .........................................
411
House of Representatives, Comptroller’s report to be sent t o ..............................
112
Hypothecation:
Of capital stock by directors restricted.............................................................
233
Of circulation prohibited......................................................................................
428
Of stock by directors, prohibited.........................................................................
236

INDEX TO NATIONAL-BANK ACT, ETC.

243

P aragraph .

Illegal preference of creditors.......................................................................................
529
Illegal use of title “ National” ......................................................................................
530
Impairment of capital, assessment for.........................................................................
430
Imports and internal taxes, duties on, may be paid by certified check............... 769,770
Incomplete circulation (see also Circulation); Redemption of...............................
417
Increase of capital................................................................................................ 228,229,304
Individual liability, enforcement of...........................................................................
515
Individual liability of shareholders.......................... ..................................................
240
Information concerning member banks to be furnished Federal Reserve Board
527
by Federal reserve agent...........................................................................................
Injunction. (See Comptroller; Suits.)
Insolvency:
Assets, distribution of, by receiver......................................................................
517
Expenses incident to, report of............................................................................
I ll
Funds of, where deposited.....................................................................................
515
Impairment of capital.............................................................................................
430
Jurisdiction of courts to enjoin Comptroller.......................................................
701
Jurisdiction of national-bank cases...................................................................214,218
Notice to creditors of associations in...................................................................
516
Penalty for issuing circulation of associations in...............................................
747
Preference of creditors............................................................................................
529
Receiver, appointment of......................................................................................
515
Receiver, duties of..................................................................................................
515
Receiver, when may be appointed.................................................................. 515,520
Redemption of circulation of associations in....................................................
505
Shareholders’ agent.................................................................................................
522
Taxes on banks in, remitted.............................................................................. 450, 715
Inspection of list of shareholders.................................................................................
439
Installments, capital stock may be paid in...............................................................
226
Installments, failure to pay...........................................................................................
227
Insurance agent, when national bank may act as agent for insurance company..
209
Insurance company, insurance of solvency of bank by...........................................
902
Insurance of deposits by national banks....................................................................
903
Interest-bearing Treasury notes are legal tender.......................................................
727
Interest in national banks prohibited:
By Comptroller........................................................................................................
106
By Deputy Comptroller.........................................................................................
106
Interest. (See also Usury):
On bonds deposited with Treasurer.....................................................................
311
Rate of, chargeable by national banks................................................................
422
Interlocking directorates, when forbidden............................................................. 234,235
Internal Revenue, Commissioner of:
Penalty for failure to make returns to, of taxable circulation.......................
712
Remission of tax against insolvent State banks............................................. 450, 715
Semiannual return to, of taxable circulation other than national..................
711
Internal taxes, certified checks receivable for, under certain conditions............
770
International bimetalism, act March 14, 1900, relative to......................................
762
Interstate Commerce Commission, enforcement of act in reference to interlock
ing directorates, as to common carriers, by............................................................
235
Issue and Redemption Divisions established, Treasurer’s Office..........................
752
Issue of:
Circulation by Comptroller of Currency.............................................................
323
Circulation to Federal reserve banks................................ 1................................
317
Gold certificates.......................................................................................................
433
Gold certificates and gold certificates payable to order...................................
754
Gold notes, provision for........................................................................................
341
Notes under $5 limited...........................................................................................
329
Post notes, etc., prohibited...................................................................................
338
Silver certificates.....................................................................................................
755
Treasury gold notes in exchange for certain United States bonds................
318
Issuing circulation of expired associations, penalty for...........................................
747
Isthmian Canal Commission, estimate of cost of Panama Canal............................
767

244

INDEX TO NATIONAL-BANK ACT, ETC.

Judgment (see also Suits):
Paragraph.
Appointment of receiver when judgment obtained against bank............
520
Illegal preference of creditors......................................................................
529
Jurisdiction (seeCrimes, jurisdiction, etc.) of suits by or against national banks. 218,423

K.
Kansas, deposits guaranty law.....................

901

INDEX TO NATIONAL-BANK ACT, ETC.

245

Larceny. (See Crimes, jurisdiction, etc.)
Lawful money:
Paragraph.
Defined................................................................................................................... 342,414
Defined for gold banks............................................................................................
342
Deposit of, to retire United States bond-secured circulation.............. 312, 313,314
706
Exemption of circulation from taxation, when, deposited..............................
Expiring associations to deposit...........................................................................
221
Extended banks to deposit....................................................................................
220
Five per cent fund...............................................................................................414,416
Forfeiture of bonds for failure to redeem circulation in...................................
508
Limit of amount, to be deposited monthly........................................................
314
Liquidating associations to deposit......................................................................
502
Liquidating associations, consolidating not to deposit.....................................
503
Payment of protested circulation in ....................................................................
510
Protest of circulation for failure to redeem in....................................................
507
Receiver to be appointed for failure to maintain reserve of...........................
402
Redemption account, disposition of.....................................................................
416
Reserve to be............................................................................................................
402
Withdrawing circulation, deposit of................................................. 312, 313, 314,414
Lawful-money reserve, determined by deposits.................................................... 342,410
Legal-tender coins, Philippine Islands......................................................................
719
Legal tender:
Foreign coins not accepted as...............................................................................
719
Gold coins.................................................................................................................
720
724
Minor coins...............................................................................................................
Silver dollars......................................................................................................... 722, 751
Subsidiary silver coins............................................................................................
723
United States notes..................................................................................... 725, 726, 727
Liability:
Association’s, for pledging, etc., United States notes, etc..............................
432
Converted State bank, for old notes.....................................................................
713
Creditor’s bill against shareholders.......................................................................
521
Enforcement of individual, by receiver..............................................................
515
Estates owning stock subject to............................................................................
242
False certification of checks..................................................................................
434
Individual, of directors..........................................................................................
526
Individual, of shareholders...................................................................................
240
Limited to amount of capital, except..................................................................
427
Of stockholders who have transferred their shares............................................
241
Shareholder’s, debars from voting........................................................................
231
Shareholders of certain banks exempt from.......................................................
240
Trustees, exempt from, when................................................................................
242
Liabilities:
Associations organized under the act of February 25, 1863............................
247
Change of title or location not to affect........................................................... 212, 213
Comptroller’s annual report to contain statement of national banks............
110
Converted State banks............................................................................................
713
Deficiency in reserve not to increase...................................................................
402
Deposit of lawful money relieves from, on circulation.....................................
504
Duties of receiver....................................................................................................
515
Exceptions to limitation........................................................................................
427
Extended associations............................................................................................
218
Incurred under provisions of Federal reserve act, not considered borrowed
money....................................................................................................................
427
Limit of, for national banks...................................................................................
427
Liquidating associations, on consolidation.........................................................
503
Loans, restrictions on..............................................................................................
425
Reports of condition to show.................................................................................
440
Restrictions on.........................................................................................................
427
Statements of condition to show...........................................................................
440
To stockholders for unpaid dividends not considered borrowed money.......
427
Lien, United States has paramount, on assets of association................................511,769

246

INDEX TO NATIONAL-BANK ACT, ETC.

Limitations:
Paragraph.
Associations, corporate existence..........................................................................
204
Bonds, withdrawal of...........................................................................................311, 312
Borrowed money not to exceed capital................................................................
427
245
Capital, converted State banks.............................................................................
Capital stock—
Increase of...................................................................................................... 228, 229
Payment of........................................................................................................
226
Reduction of......................................................................................................
230
Requisite amount of.........................................................................................
224
Circulation—
Denominations..................................................................................................
324
Deposit of lawful money on withdrawing...................................................
312
Exempt from tax, when. ✓..............................................................................
706
Obtainable..........................................................................................................
323
Obtainable by gold banks...............................................................................
341
Tax on............................................................................................................. 444, 714
To be taken at par............................................................................................
421
Unauthorized, tax on................................................................................... 708-710
Corporate existence of converted gold banks......................................................
343
Creditors of insolvent banks, notice to..........................................................
516
Creditors of insolvent banks, illegal preference..................................................
529
Directors, number of................................................................................................
232
Dividends.............................................................................................................. 424, 429
Expiration of corporate existence.......................................................................
221
Extension of corporate existence..................................................................... 215, 222
Gold certificates, denominations o f.....................................................................
433
Impairment of capital............................................................................................
430
Interest rate..............................................................................................................
422
Isssue of notes under $5...........................................................................................
329
Jurisdiction, general, of national-bank cases........................................ 214,218, 701
Lawful money deposited to retire circulation..................................................
313
Liability of national banks.....................................................................................
427
Location of associations, change of.......................................................................
211
Loans to one individual, e t c .................................................................................
425
“ National,” in title of bank.................................................................................
530
Place of business......................................................................................................
400
Public depositaries..................................................................................................
243
Real estate holdings.................................................................................................
223
Reserve, gold banks.................................................................................................
342
Receiver, appointment of.......................................................................................
520
Receiver, purchase of property to protect trust.................................................
523
Reports of condition, transmitted.........................................................................
440
Reports of earnings and dividends, transmitted................................................
442
Reserve requirements..............................................................................................
402
Reserve with central reserve agents......................................................... 401,405,406
Reserve with Federal reserve banks.....................................................................
405
Reserve with reserve agents............................................................................... 402,405
Shareholders, personal liability of........................................................................
240
Shareholders, personal liability of shareholders of certain converted banks..
240
Shares of stock, par value.......................................................................................
225
Shares of stock, directors to own...........................................................................
233
State taxation of money..........................................................................................
717
State taxation of national banks...........................................................................
451
Stock purchased or acquired..................................................................................
426
Suits, conduct of.......................................................................................................
700
Time for which own stock taken for debt may be held....................................
426
Time in which recovery may be made for usurious interest charges..........
423
United States bonds deposited..............................................................................
302
Visitorial powers.....................................................................................................
528
Voluntary liquidation, vote...................................................................................
500
Voluntary liquidation, deposit of lawful money................................................
502
Voters at elections...................................................................................................
231

INDEX TO NATIONAL-BANK ACT, ETC.

247

Liquidation:
Paragraph.
Bonds withdrawn....................................................................................................
504
Creditor’s bill against shareholders......................................................................
521
Consolidation.................................................... .......................................................
503
221
Expiring associations to comply with provisions for........................................
Lawful money to be deposited..............................................................................
502
Notice of, to be published.....................................................................................
501
Penalty for issuing circulation of associations in...............................................
747
Redemption of circulation of associations in.................................................. 505,506
Sale of bonds, when................................................................................................
504
Vote required...........................................................................................................
500
Liquidation and receivership (see also Liquidation: Receiver):
Bonds, deficiency in, first lien on assets for redemption of circulation........
511
Bonds, forfeiture of.................................................................................................
508
Bonds, sale of, at auction.......................................................................................
511
Bonds, sale of, privately........................................................................................
512
Bonds, withdrawal of..............................................................................................
504
Charter, forfeiture of...............................................................................................
526
Circulation, protest of.............................................................................................
507
Consolidation, provisions for.................................................................................
503
Creditor’s bill against shareholders....................................................................
521
Deposit of collections by receiver......................................................................
515
Deposit of lawful money on liquidation............................................................
502
Distribution of assets of insolvent associations.................................................
517
Enjoining proceedings...........................................................................................
518
Enjoining proceedings, where brought..............................................................
702
Expiring associations.............................................................................................
221
Illegal preference of creditors..............................................................................
529
Jurisdiction, general, of national-bank cases.....................................................
214
Jurisdiction of district courts................................................................................
701
Notice of vote to liquidate.....................................................................................
501
Notice to creditors of insolvent associations.......................................................
516
Notice to present circulation for redemption.....................................................
510
Penalty for issuing circulation of expired associations.....................................
747
Receiver, appointment of......................................................................................
515
Receiver, purchase of property to protect trust................................................
523
Receiver, when may be appointed......................................................................
520
Receivership, expenses of......................................................................................
519
Shareholders’ agent, appointment of...................................................................
522
Shareholders’ agent, duties of...............................................................................
522
Suits, conduct of......................................................................................................
700
Suspension of business for nonpayment of circulation.....................................
509
Taxes on insolvent associations remitted........................................................ 150, 715
Vote required for liquidation................................................................................
500
List of shareholders.........................................................................................................
439
Loans:
Associations’ liability restricted............................................................................
427
Bank not to grant loan to any national bank examiner................................. 438a
Circulation as collateral for, restricted..............................................................
428
Limitation of, to one individual, etc..................................................................
425
No officer, director, or employee to receive any commission for any loan.. 438c
On farm lands...................................................................................................... 205, 223
Prohibited on security of own stock....................................................................
426
Prohibited when reserve is short..........................................................................
409
Real estate, prohibited.........................................................................................
223
Location (see also Title and location):
Change of.............................................................................................................. 211,803
Of banking house.....................................................................................................
400
Organization certificate, to state..........................................................................
202
Losses, bad debts and, to be deducted from profits before declaring dividend..
429
Lost or stolen national-bank notes, redemption of...................................................
417

248

INDEX TO NATIONAL-BANK ACT, ETC.

M.
Maceration:
Paragraph.
Redeemed circulation to be disposed of by........................................................
340
Redeemed circulation of failed and liquidated banks to be disposed of by.
506
Management by directors...............................................................................................
232
Maximum. (See Bonds; Capital; Circulation; Limitations.)
May change name and location, how...........................................................................
211
232
Meetings, annual..............................................................................................................
Member bank examiners................................................................................................
527
Member banks:
Depositaries of United States.................................................................................
615
Examinations by Federal Reserve Board...........................................................
527
Limit to deposit that may be kept with nonmember bank.............................
408
Officer, director, or employee not to receive any fee, commission, etc___
438
Prohibited from securing discounts from Federal reserve banks for non
member banks.......................................................................................................
408
Provisions for national banks outside of continental United States to become
411
Reserve requirements.................................................................................. 403-412-413
Reserve, withdrawal of, from Federal reserve banks.......................................
409
Statement and reports by.......................................................................................
441
Method of refunding United States bonds as permitted by Federal reserve act.
316
Minimum (see Bonds; Capital; Circulation; Limitation) amount of capital..........
224
Minor coins:
Philippine Islands, legal tender............................................................................
719
724
United States, when legal tender.............. ...........................................................
Misapplication:
Money-order funds...................................................................................................
732
Penalty for................................................................................................................
436
Misdemeanor. (See Crimes: Penalty; Official malfeasance.)
Money-order funds, misapplication of.........................................................................
732
Moneys. (See Lawful money; Legal tender; Circulation; Public moneys.)
Monthly installments, capital may be paid in ..........................................................
226
Mortgages:
Assignment of, when illegal...................................................................................
529
Assignment, when official malfeasance................................................................
436
Real estate, possession, etc., of, by association..................................................
223
Mutilated, circulation of failed and liquidated to be...............................................
506
Mutilated or worn circulation, redemption of........................................................ 339,414

INDEX TO NATIONAL-BANK ACT, ETO.

249

Paragraph.

Name, change of, by national bank...........................................................................211,803
202
Name of association to be approved of by Comptroller of Currency.....................
N ational, use of the word, in titles of associations other than national, prohibited.
530
National-bank act:
Authority for title....................................................................................................
200
Provides for a national currency, etc..................................................................
200
Status of national banks organized under the act of February 25, 1863 ___
247
N ational-bank examiners...............................................................................................
527
National Banking Association defined........................................................................
300
National Banking Associations:
206
Acceptance of drafts and bills of exchange........................................................
Amendment of articles of association restricted................................................
225
Articles of association entered into by.................................................................
201
Borrowed money restricted....................................................................................
427
Branches may be retained by converted State banks......................................
246
Capital required.......................................................................................................
224
Cancellation of redeemed circulation..................................................................
514
Certificate of officers and directors.......................................................................
319
Change of name and location................................................................................
803
Change of title and location............................................................................... 211-213
Charter forfeiture.....................................................................................................
526
Charter number to be printed on circulation of................................................
325
Circulation obtainable by......................................................................................
323
Circulation of, tax on................................................................................... 444-450, 717
Circulation of, to be redeemed in United States notes....................................
414
Circulation to be taken at par................................................ : .............................
421
Circulation of, for what receivable.......................................................................
337
Circulation unsigned or with forged signatures to be redeemed.....................
417
Closed bank circulation...................................................................................... 505, 506
Comptroller and Deputy Comptroller not to be interested in, issuing circu
lation......................................................................................................................
106
Consolidation, no deposit required for circulation of liquidated banks___
503
Conversion of State banks into..............................................................................
245
Corporate and incidental powers of......................................................................
204
Defined......................................................................................................................
300
Depositaries of public money................................................................................
243
Deposit of bonds by, requirement repealed.......................................................
302
Directors of, individually liable, when...............................................................
526
Directors, number and election of........................................................................
232
Directors, oath of.....................................................................................................
236
Directors, qualifications of.....................................................................................
233
Election, holding annual.................................................................................... 232,238
Enjoining proceedings............................................................................................
518
Examination of, prior to being authorized to begin business..................... 319, 320
Examiners of.............................................................................................................
527
Excepted from certain taxes on circulation.......................................................
714
221
Expiration of corporate existence, provisions on..............................................
Extended bank circulation....................................................................................
220
Exchange of bonds..................................................................................................
305
Extension of corporate existence of.................................................................. 215,217
Foreign branches.....................................................................................................
210
General provisions respecting bonds....................................................................
311
Gold bank circulation, provisions for issuing.....................................................
341
Gold banks may be organized...............................................................................
341
Gold banks, conversion of......................................................................................
343
Increase of capital stock by............................................................................... 228,229
Insurance or guaranty of deposits by...................................................................
903
Lending on own stock prohibited.........................................................................
426

250

INDEX TO NATIONAL-BANK ACT, ETC.

National Banking Associations— Continued.
Paragraph.
Liquidating bank circulation............................................................................. 502-506
Liquidation, provisions for................................................................................. 500-504
Loans on farm lands................................................................................................
205
Lost or stolen notes of, to be redeemed................................................................
417
Not required to deposit United States bonds.....................................................
302
Organization certificate to specifically state...................... ................................
202
Payment of stock prior to beginning business....................................................
226
Place of business.......................................................................................................
400
Political contributions prohibited.........................................................................
437
Post notes, issue of, prohibited..............................................................................
338
Power to act as trustee, administrator, executor, or registrar of stocks and
bonds.......................................................................................................................
208
Power to insure solvency of bank.........................................................................
902
Preparation of bank circulation.............................................................................
324
President of, to be chosen by board.....................................................................
239
Publication of certificate of authority..................................................................
321
Purchasing own stock prohibited..........................................................................
426
Receiver may be appointed for failure to restore capital.................................
227
Reduction of capital stock......................................................................................
230
Receiver for, when may be appointed.................................................................
520
Redemption and destruction of circulation of........................................ 339, 340, 414
Redemption account, disposition of.....................................................................
416
Regulation of business of........................................................................................
400
Relation of bond deposit to capital of..................................................................
304
Reserve requirements.......................................................................................... 403- 412
411
Reserve requirements outside of continental United States...........................
Security for circulation........................................................................................ 302, 303
Shares of stock...........................................................................................................
225
Shareholders of, qualifications of, at election.....................................................
231
Shareholders’ agent..................................................................................................
522
Shareholders of, personally liable.........................................................................
240
Shareholders of, when not personally liable.......................................................
240
Status of, organized under the act of February 25, 1863..................................
247
Subscribed stock not paid for, forfeited to..........................................................
227
Suspension of business after default to pay circulation....................................
509
Taxation of circulation of, by States, etc........................................................ 716, 717
Tax provisions restricted.........................................................................................
714
Taxes on insolvent, remitted.............................................................................. 450, 715
Transfer of shares of stock........................................ .............................................
241
Where proceedings to enjoin must be brought...................................................
702
Withdrawing circulation.............................................................................. 312, 313, 314
National banks deemed citizens of States in which located...................................
214
National banking laws applicable to Hawaii..............................................................
801
National banking laws applicable to Porto Rico.......................................................
800
739
National-bank notes obligations of the United States..............................................
National-bank notes, penalty for counterfeiting........................................................
714
Newspaper:
Certificate of authority to commence business to be published in ................
321
Election notice to be given in...............................................................................
238
Impairment of capital, notice to be published in.............................................
430
Liquidation notice to be published in.................................................................
501
Notice of meeting to elect shareholders’ agent to be published in................
522
Notice to creditors of insolvent banks to be advertised in..............................
516
Reports of condition to be published in...............................................................
440
Sale of stock of delinquent shareholders to be published in...........................
227
New York City:
Associations in, reserve agents........................................................................... 402. 420
Bonds of liquidated banks that failed to make deposit, to be sold in..........
504
Bonds, sale of forfeited, in......................................................................................
511
Designated as central reserve city........................................................................
401
Notice of expiration of corporate existence to be published in paper in___
221
Notice of voluntary liquidation to be published in paper in..........................
501
Net profits. (See Dividends.)

INDEX TO NATIONAL-BANK ACT, ETC.

251

Nonmember banks:
Paragraph.
Amount of deposit that may be kept with, by member banks, restricted. .
408
Discounts from Federal reserve banks not allowed through member banks..
408
Reserve requirements for national banks that are............................................
411
Nonresidents:
Directors....................................................................................................................
233
State, etc., taxation of stock of.............................................................................
451
No release from liabilities by change of title or location.........................................
213
Notary public:
Acknowledgment of organization certificate before..........................................
203
Acknowledgment of reports............................................................................... 440-442
Protest of circulation by .......................................................................................
507
Notes (see Circulation) of the United States are legal tender............................. 725-727
Notice (see Publication; Printing):
Creditors of insolvent banks to present claim....................................................
516
Of election................................................................................................................
238
Of sale of bonds.......................................................................................................
511
Of transfer of bonds to be given association......................................................
308
To present circulation for redemption when bonds have been forfeited___
510
414
Notification of redemption of circulation by United States Treasurer.................
Number of:
Central reserve cities..............................................................................................
401
Copies of annual report....................................................................................... 112,113
Examinations to be made......................................................................................
527
Reports of condition that may be called for......................................................
440
Null and void, illegal preference.................................................................................
529

252

INDEX TO NATIONAL-BANK ACT, ETC.

Oath:
Paragraph.
Certificate of officers and directors.................................................................... 226,319
Directors.....................................................................................................................
236
Examiners may take statement under.................................................................
527
Execution of organization certificate................................................................ 203, 245
Official, by Comptroller..........................................................................................
102
103
Official, by Deputy Comptroller...........................................................................
Payment of installments.........................................................................................
226
Reports of condition, and earnings and dividends........................................ 440-442
Semiannual return of circulation..........................................................................
446
Shareholders, list of.................................................................................................
439
Obligations of the United States:
Defined.......................................................................................................................
739
Exempt from taxation.............................................................................................
716
Penalty for—
Dealing in counterfeit......................................................................................
746
Illegal possession or use of material for........................................................
742
Passing counterfeit...........................................................................................
743
Pledging.............................................................................................................
432
Taking or having unauthorized impression of tools, etc................... 745, 746
Office force for redemption of circulation...................................................................
415
Officers (see also President; Cashier):
Bonds assigned to be signed by cashier or other................................................
306
Certificate of directors and.....................................................................................
319
Certificate of payment of increase of stock.........................................................
228
Certification of payment of stock by president or cashier...............................
226
337
Circulation properly signed by, issuable................................... ........................
Disqualified to examine national banking associations in which interested
as..............................................................................................................................
527
Election or appointment of, by directors............................................................
204
Examination of, under oath...................................................................................
527
False certification of checks, forbidden...............................................................
434
Forfeiture of charter, provisions for......................................................................
526
Forged signatures of, to circulation, not to invalidate......................................
417
Fraudulent notes to be marked by.......................................................................
748
Interest rate of paid officers.................................................................................. 438e
Oath, administration of, to reports.......................................................................
441
Official malfeasance, penalty for...........................................................................
436
Penalty for false certification of checks...............................................................
435
Penalty for improperly countersigned, etc., circulation..................................
344
Penalty for issuing circulation of'expired associations....................................
747
Penalty for official malfeasance............................................................................
436
Penalty for pledging, etc., circulation................................................................
432
Penalty for political contributions......................................................................
437
Penalty for receiving commission for a loan.......................................................
438c
Penalty for unauthorized receipt of public money...........................................
738
Preference of creditors.............................................................................................
529
President of board a director..................................................................................
239
President or cashier—
Certification of extension............^..................................................................
216
Certification of expiration of existence.......................................................
221
Certification of liquidation............................................................................
501
Waiving notice of protest................................................................................
507
President or vice president and cashier to sign circulation.............................
324
Proxy, not to act as..................................................................................................
231
520
Receiver, appointment of, for violation of national-bank act by...................
Redemption of unsigned circulation.................................... ...............................
415
Reports of condition, verification of, by president or cashier............... .
440, 441
Reports of earnings and dividends, attestation of, by president or cashier . .
442
Shareholders’ lists verified by president or cashier...........................................
439
Taxation, circulation subject to, returns by president or cashier.................
446
Taxation, unauthorized circulation, returns by president or cashier...........
711
Officers, United States:
Deposit and withdrawal of public money...........................................................
730
Penalty for improper countersigning or delivering circulation......................
344
Penalty for unauthorized deposit of public money...........................................
737
Receiving or disbursing public money to mark fraudulent............................
748
Offices, vaults, ete., assignment of, to the Comptroller by the Secretary...................108

INDEX TO NATIONAL-BANK ACT, ETC,

253

Official:
Paragraph.
Malfeasance, penalty for.........................................................................................
436
Register, information for........................................................................................
I ll
Seal of Comptroller of the Currency.....................................................................
107
Oklahoma, deposit guaranty law .................................................................................
900
Organization and powers of national banks:
Amendment of articles of association...................................................................
225
Articles of association.............................................................................................
201
246
Branches of converted State banks.....................................................................
Capital stock.............................................................................................................
202
Capital stock requirements....................................................................................
224
Certificate of authority to begin business............................................................
320
Certificate of officers and directors.......................................................................
319
Change in title and location..................................................................................
211
Conversion of gold banks.......................................................................................
343
Conversion of State banks......................................................................................
245
Corporate powers......................................................................................................
204
Deposit of bonds......................................................................................................
302
Directors, election of...............................................................................................
238
Directors, number and election of........................................................................
232
Directors, oath of.....................................................................................................
236
Directors, qualification of......................................................................................
233
Directors, to choose president...............................................................................
239
Directors, vacancy, how filled..............................................................................
237
Enforcing payment of stock..................................................................................
227
Examination preliminary to beginning business...............................................
319
Execution of organization certificate...................................................................
203
Extension of corporate existence..........................................................................
215
Failure to hold election..........................................................................................
238
Gold banks, conversion of......................................................................................
343
Gold banks, organization of...................................................................................
341
Incidental powers........................ ...........................................................................
204
Increase of capital stock, provisions for.......................................................... 228, 229
Increase of capital stock, when valid..................................................................
228
Liquidation...............................................................................................................
500
Location and title, change of.................................................................................
211
Location.....................................................................................................................
202
Organization certificate..........................................................................................
202
Payment of stock.....................................................................................................
226
President, election of, by board...........................................................................
239
President, qualification of.....................................................................................
239
Publication of certificate of authority to begin business.................................
321
Reduction of capital stock, provisions for..........................................................
230
Restoration of capital stock...................................................................................
227
Shareholders.............................................................................................................
202
Shareholders, personal liability of........................................................................
240
Shareholders, qualification of, at election..........................................................
231
Shareholders, when personally liable..................................................................
240
Shares of stock..........................................................................................................
225
State banks, conversion of.....................................................................................
245
State banks, converted, may retain branches....................................................
246
247
Status of associations organized under act of Feb. 25, 1863...........................
Title...........................................................................................................................
202
Title and location, change of.................................................................................
211
Vacancies in board, how filled..............................................................................
237
Organ ization certificate:
Acknowledgment of................................................................................................
203
Certified copy of, evidence....................................................................................
704
Comptroller to grant or withhold..........................................................................
320
Conversion of gold banks.......................................................................................
343
Conversion of State banks......................................................................................
245
Execution of........................................................ ....................................................
203
Sealed certificate of Comptroller, evidence......................................................
703
Specifications in.......................................................................................................
202
Other bonds to secure deposits.....................................................................................
243
Other real estate owned............................................... .................................................
223
Other cities may be designated as central reserve cities.........................................
401
Other reserve cities. (See Reserve cities.)
Overdue paper.................................................................................................................
429

254

INDEX TO NATIONAL-BANK ACT, ETC.

Panama Canal bonds:
Paragraph.
Additional issue........................................................................................................
767
Available and nonavailable as security for circulation.............................. 303, 768
Issued under act Aug. 5, 1909, not receivable as security for circulation..
768
Tax on circulation secured by........................................................................... 303,444
Panama, reserve requirements, etc., for national banks in.....................................
’ 411
Paper for printing circulating notes.............................................................................
326
Paper used for United States securities, penalty for use of without authority.. 742
Par, bonds not to be sold at less than...........................................................................
512
Par, national banks to take notes of other national banks at..................................
425
Par value of capital stock of converted State banks................................................
245
Par value of stock............................................................................................................
225
Passing counterfeit circulation, penalty for................................................................
743
Past due paper..................................................................................................................
429
Payment of:
Assessment for impaired capital............................................................................
430
Capital stock, provisions relative to.....................................................................
226
517
Claims against insolvent banks.............................................................................
Tax on circulation....................................................................................................
444
Tax on circulation other than national................................................................
710
Payments for:
Purchase of property by receiver provided for..................................................
525
Which, national bank notes are receivable..........................................................
337
Penalty:
Appointment of receiver for violations of act................................................. 515, 520
Bond of Comptroller................................................................................................
102
Bond of Deputy Controller................................................................................. 103,104
Circulating notes less than $1, issue of.................................................................
718
Commission, penalty for receiving commission for a loan................................
438c
Counterfeiting circulation, e tc......................................................................... 740, 747
Dealing in counterfeit circulation.......................................................................
746
Embezzlement? abstraction, willful misapplication, false entries, etc.........
436
False certification of checks...................................................................................
435
Failure to make reports..........................................................................................
443
227
Failure to pay installment on stock.....................................................................
Failure to redeem circulation.................................................................................
508
Forfeiture of charter for violations of bank act..................................................
526
Forging or counterfeiting United States securities............................................
740
Illegal possession or use of material for circulation............................................
742
345
Imitating bank circulation for advertising purposes................................... ...
Improper countersigning or delivering circulation............................................
344
Interest, unlawful....................................................................................................
423
Interlocking directorates......................................................................................
235
Issuing circulation of expired associations.........................................................
747
Jurisdiction of the United States courts........................................................ 214,218
Mutilating circulation............................................................................................
346
Misapplication of money-order funds...................................................................
732
•* National, ’ ’ unlawful use of the word................................................................
530
Official malfeasanc e..................................................................................................
436
Passing counterfei t circulation..............................................................................
743
Pledging United States notes or bank circulation.............................................
432
Reports to Comptroller, failure to make.............................................................
443
Reserve, maintenance of........................................................................................
402
Reserve, shortage......................................................................................................
409
Semiannual return of circulation, failure to make....................................... 446-449
Taking or having unauthorized impression of tools, etc.............................. 744, 745
Unauthorized deposits of public money.............................................................
737
Unauthorized receipt or use of public money...................................................
738
Usury..................................................................................................................... 422,423
Violations of any of the provisions of the bank act.........................................
526
Violations of section 22, Federal reserve act.....................................................
438f
Period for which real estate may be held...................................................................
223
Personal liability. (See Shareholders; Trustees; Liability.)
Personal property, shares of stock of national banks taxed as...............................
451
Philippine Islands, legal-tender coins.................................................................... —
719

INDEX TO NATIONAL-BANK ACT, ETC.

255

Philippine Islands:
raragraph.
Public funds in the United States to be deposited in member banks..........
615
Reserve requirements, etc., for national banks i n . .........................................
411
Photographing United States securities without authority, penalty for.........
742
Place of business, organization certificate to state................................................ 202, 400
Place for redemption of circulation............................................................................
414
Place where proceedings to enjoin Comptroller must be brought.........................
702
Place where tax on shares in national banks is to be paid.....................................
451
414
Places where circulation may be redeemed..............................................................
Plates:
Control of...................................................................................................................
327
Cost of engraving.......................................................................................... 220, 327, 414
Custody oi.................................................................................................................
108
Engraving of.............................................................................................................
324
Examination annually..........................................................................................
328
Expense of examination and destruction of.......................................................
328
Extended banks......................................................................................................
220
Liquidating bank, to be destroyed.............. . .....................................................
328
Penalty for counterfeiting or having possession of counterfeit................... 742, 744
Penalty for taking unauthorized impression of tools, etc................................
744
Penalty for having false impressions of tools, etc..............................................
745
Pledging or hypothecating circulation prohibited...................................................
428
Political contributions prohibited...............................................................................
437
Population, relation of capital stock to......................................................................
224
Porto Rico:
National banking laws applicable to...................................................................
800
Reserve requirements, etc., for national banks in............................................
411
Postal savings funds to be deposited in member banks..........................................
615
Postmasters:
Deposit of public funds by ...................................................................................
731
Misapplication of money-order funds b y . .........................................................
732
Postmaster General, deposit of funds by authority of..............................................
732
Post notes, national banking associations prohibited from using..........................
338
Power:
443
Comptroller to assess fine for failure to make reports.......................................
Of attorney to receive interest on bonds............................................................
311
Of national banks to act as trustee, executor, etc.............................................
208
Of national banks to insure deposits...................................................................
903
To hold real property.............................................................................................
223
Powers (see also Comptroller) :
Granted to national banks.....................................................................................
204
Incidental, of national banks...............................................................................
204
Of examiners............................................................................................................
527
Of national banks to insure solvency of bank...................................................
902
Receiver................................................................................................................ 515 523
Shareholders’ agent.................................................................................................
522
Trust company, powers of national banks..........................................................
208
Visitatorial, limitations of.....................................................................................
528
Preference:
Tn allotment of shares in succeeding association...............................................
219
Of creditors illegal...................................................................................................
529
Preliminary examinations, expense of........................................................................
519
Preparation of circulation, provisions for...................................................................
324
President (see also Officers):
Certificate of officers and directors.....................................................................
319
Certificate of stock payment.................................................................................
319
Countersigning or delivering circulation improperly.......................................
344
Director to be.............................................................. *..........................................
239
Election or appointment of, by directors........... ......................................... 204,239
False certification of checks by, and penalty for.......................................... 134,435
Liquidating bank, duty in....................................................................................
501
Of the board, election of........................................................................................
239
Official malfeasance, penalty for..........................................................................
436
Proxy, not to act as................................................................................................
231
Public money, unauthorized receipt of, by.......................................................
738
Reports of condition, verified b y .......................................................................
440
Reports of earnings and dividends to be verified by.......................................
442
Signature of, forged, not to invalidate circulation............................................
417

256

INDEX TO NATIONAL-BANK ACT, ETC.

President (see also Officers)— Continued.
Paragraph.
Signature of, on circulation................................................................................ 324,337
Violations of act, by, penalty for...................................................................... 436,526
President of the United States, appointment of Comptroller by...........................
101
Printing:
Annual report of the Comptroller, number printed and distribution o f .. 110-112
Certificate of authority to begin business............................................................
321
325
Charter number on circulation...............................................................................
Circulating notes on distinctive paper..................................................................
326
Circulation of associations.......................................................................................
324
Circulation of extend ed banks................................................................................
220
Creditors of insolvent associations, notice to......................................................
516
Notice of special annual election.........................................................................
238
Notice of sale of delinquent stock.................................................................... 227,430
Notice of sale of bonds at public auction............................................................
511
Notice of liquidation...............................................................................................
501
Notice of expiration...............................................................................................
221
Penalty for counterfeiting circulation........................ ........................................
741
Penalty for illegal possession or use of material tor circulation......................
742
Penalty for imitating circulation....... ..................................................................
345
Penalty for taking or having unauthorized impression of tools, etc., for. . . 744, 745
Reports of condition..............................................................................................
440
Shareholders agent, notice of election o f ...........................................................
522
Voluntary liquidation, notice o f .........................................................................
501
Private sale of bonds to secure circulation.................................................................
512
Proceedings:
If shareholder fails to pay installments...............................................................
227
To enjoin Comptroller......................................................................................... 701, 702
Where no election is held on the proper day.....................................................
238
Profits, undivided, not considered borrowed money................................................
427
Prohibitions:
Borrowed money in excess of capital....... ..........................................................
427
Business not to be transacted until authorized by Comptroller......................
204
Circulation, pledging of..........................................................................................
428
Comptroller or Deputy Comptroller from being interested in any association
issuing national currency...................................................................................
106
Counterfeiting, etc............................................................................................... 740, 746
Deposit of Government money in banks not belonging to Federal Reserve
System...................................................................................................................
244
Imitation of circulation..........................................................................................
345
Interlocking directorates.......................................................................................
234
Issuing circulation to unauthorized associations...............................................
344
Loaning on own stock___........................................................................................
426
Loans in excess of a certain limit............... ....... ..................................................
425
Member bank limited in amount of deposit with, and forbidden to secure
discounts from, Federal reserve banks for nonmember banks....................
408
Mutilation of circulation........................................................................................
346
432
National-bank notes not to be used as security for loans.................................
Notes less than $1................... .................................................................................
718
Officers of bank not to administer oath for reports of condition.....................
441
Political contributions................................... .......................................................
437
Postmasters not to receive interest on deposits..................................................
731
Posts notes, issue of. . . . . . . ....................................................................................
338
Public funds of Philippine Islands, postal savings or any Government
funds not to be deposited in banks other than member...............................
615
Purchase of own stock.............................................................................................
426
Reserve shortage......................................................................................................
409
Restriction as to visitatorial powers....... ............ ................................................
528
Sale of bonds for default of payment of circulation at less than par.............
512
Unauthorized deposit of public money...............................................................
737
Unauthorized receipt of public money..............................................................
738
Uncurrent notes not to be put in circulation.....................................................
431
United States notes not to be used as security for loans..................................
436
Use of title ‘ ‘ National ” ....... ..................................................................................
530
Using plates to print notes without authority....................................................
742
Usunous rate of interest..........................................................................................
422
Voters at elections....................................................................................................
231
Withdrawal of capital..............................................................................................
421

INDEX TO NATIONAL-BANK ACT, ETO.

257
Pa ra gra p h .

Proof of publication, report of condition.................................................................... ..... 440
Protest of circulation:
Bonds forfeited, when.......................................................................................... ...... 508
Bonds, sale of, when........ . ................................................................................. 511, 512
Failure to redeem circulation..................................................................................... 507
Provisions:
Appointment of receiver.. ................................................. .................................. .....515
Assessment when bank fails to make return on circulation............................ .....447
Dividends............................................. - ................................................................. .....424
Enforcing payment of tax on circulation................................................................. 448
Examination of bonds and records.................. ................................................ 309-311
Excess payment of tax on circulation, refunding: of.............................................. 449
Federal Reserve Board to sell United States bonds to Federal reserve
banks....... ............. . .............................................................................................. .....316
For changes in deposit of bonds........................................................................... .....304
For deposits by disbursing officers....................................................................... .....730
For deposits by postmasters......... .......... . ........................................................... .....731
For destruction and replacing of circulation.................................................. 339, 340
For liquidation of banks at expiration of charter...................................................221
For national banks outside the continental United States to become mem
ber banks................ : .................................................................................................411
For obtaining circulation....................................................................................... .....323
For organization of gold banks...................................................................................341
For redeeming circulation. ............................. ..................................................... .....414
For redemption of circulation when charter is extended................................ .....220
For reimbursement of expenses for redemption of circulation....................... .....415
For withdrawal of circulating notes..........................................................................312
Gold certificates, issue of....................................................................................... .....433
Impairment of capital............................................................................................ .....430
Inspection of list of shareholders...............................................................................439
Liquidation.......................................................................................................... 500. 501
Of articles of association............................................................................................. 20 L
Of by-laws............................ .................................................................................... .... 204
Payment of tax on circulation.............................................................................. .... 444
Reports of condition............................................................................................... .... 440
Respecting bonds, general..................... .............................................................. .... 311
Retirement of circulation by sale of United States bonds.............................. .... 315
Shareholders’ agent, election of........................................................................... .... 522
Surplus....... ........ . .................................. ............. ................................................... .... 424
To be complied with before commencing business....................................... 302. 319
Proxies authorized.......................................................................................................... .... 231
Proxies can vote for shareholders’ agent.................................................................... .... 522
Publication (see also Printing):
Annual election, notice of holding special......................................................... .... 238
Certificate of authority to begin business........................................................... .... 321
Creditors of insolvent associations, notice to.......................................................... 516
Nonpayment of circulation, notice to present................................................... ....510
Reports of condition of national banks............................................................... .... 440
Sale of bonds, notice of.......................................................................................... .... 511
Sale of delinquent stock, notice of................................................................... 227,430
Shareholders’ agent, notice of election of........................................................... ....522
Voluntary liquidation, notfce o f............................... ..............................................501
Public debt, national-bank circulation receivable for, with certain exceptions. 337
Public deposits (see also Deposits):
Banks to give security for..........................................................................................243
Duty of disbursing officers.........................................................................................730
Duty of postmasters................................................................................................ ....731
Postmasters............................................................................................................... ....731
Purchase of real estate.................................................................................................. ....223
Public dues, certified checks receivable for, under certain conditions....................770
Public sale of stock purchased from dissenting shareholders................................. ....219
Pulp from macerated circulation................................................................................. ....340
Purchasing own stock prohibited.....................................................................................426
Purchase of property by receiver............................................................................. 523,525
Purchase of United States bonds by Federal reserve banks...................................... 316
Purpose of organization certificate to be stated therein......................................... ... 202
li . i l ° - 2 0 ----- 17

258

INDEX TO NATIONAL-BANK ACT, ETC.

Q ualification:

Paragraph.

Comptroller of the Currency..................................................................................
Deputy Comptroller.................................................................................................
Directors of national banks.....................................................................................
Examiners of associations.......................................................................................
Shareholders’ agent..................................................................................................
Quarters for Currency Bureau.......................................................................................

102
103
233
527
522
108

INDEX TO NATIONAL-BANK ACT, ETC.

259

R.
Rate. (See Interest; Tax; Usury.)
Paragraph.
Rate of interest which may be charged.....................................................................
422
Ratio. (See Bonds; Capital and circulation.)
Real estate:
Investments and holdings restricted.....................................................................
223
Loans on, permitted with certain restrictions....................................................
205
223
Mortgages, limited.............. . ..................................................................................
Subject to State, etc., taxation............................................ ................................
451
Real estate broker, when national bank may act as broker in procuring loans
on real estate................ ...............................................................................................
209
Reassignment of bonds, liquidating bank..................................................................
504
Receipt for bonds transferred.........................................................................................
306
Receiver:
Appointment and duties of...................................................................................
515
Appointment of—
For failure to dispose of own stock..............................................................
515
For failure to restore diminished capital.....................................................
515
For false certification of checks....................................................................
515
For nonpayment of circulation.....................................................................
515
For impairment of capital..............................................................................
515
For insolvency..................................................................................................
520
For nonmaintenance of reserve.....................................................................
515
When capital reduced by failure to pay installments.............................
227
Courts may enjoin...................................................................................................
518
Deposit of collections by.......................................................................................
515
Expenses of, how paid...........................................................................................
519
214
General jurisdiction of national-bank cases......................................................
Jurisdiction of district courts to enjoin Comptroller or...................................
701
National bank as receiver under trust company powers.................................
208
Purchase of property by, to protect trust..........................................................
523
Receiverships. (See Liquidation and receivership; Receiver.)
Recoinage of uncurrent subsidiary silver..................................................................
757
Records, regulations for redemptions.........................................................................
513
Red Cross, subscriptions to...........................................................................................
771
Redeeming circulation...................................................................................................
414
Redemption:
Cancellation of circulation sent for......................................................................
514
Deposit of lawful money for, of associations in liquidation.............................
502
Division, Treasurer’s Office, established.............................................................
752
Disposition of, account...........................................................................................
416
Enjoining Comptroller............................................................................................
518
Extended bank circulation....................................................................................
220
First lien on assets...................................................................................................
511
Five per cent fund for—
To be maintained.............................................................................................
414
Not part of lawful reserve...........................................................................412, 414
Forfeiture of bonds..................................................................................................
508
Forged signatures not to prevent..........................................................................
417
General provisions respecting................................................................................
414
Incomplete circulation...........................................................................................
417
Issue and Redemption divisions established.....................................................
752
Lawful money, of circulation................................................................................
414
Liquidating bank circulation............................................................................ 504, 505
Lost national-bank notes........................................................................................
417
Notice to present circulation for..........................................................................
510
Of circulating notes issued prior to extension....................................................
220
Of circulation, place for..........................................................................................
414
Proceeds from sale of bonds for. of circulation..................................................
504
Profit on circulation not presented for................................................................
220
Protest of circulation, for failure to redeem........................................................
507
Records of..................................................................................................................
513
Retirement account.................................................................................................
416

260

INDEX TO NATIONAL-BANK ACT, ETC.

Redemption— Continued.
Paragraph.
Sale of bonds.......................................................................................................... 511, 512
State bank circulation.............................................................................................
706
Stolen national-bank notes.....................................................................................
417
United States notes, of circulation, in.................................................................
414
United States and Treasury notes, to be in gold...............................................
750
Unsigned circulation to be redeemed..................................................................
417
Withdrawn circulation......................................................................................... 312, 313
Worn or mutilated circulation........................................................................... 339, 340
Redemption account, disposition of.............................................................................
414
Redemption of United States notes, gold coin and bullion to be set apart as
reserve for......................................................................................................................
750
Reduction of—
Bonds to secure circulation........................... ........................................................
311
Capital.................................................................................................................. 230, 304
Circulating notes.....................................................................................................
313
Reextension of charter...................................................................................................
222
Refunding—
Bonds under provision of Federal reserve act.................................................
315
Excess payment tax on circulation.....................................................................
449
Of United States bonds..........................................................................................
759
Of United States bonds under Federal reserve act.........................................
315
Register of the Treasury, signature on circulation.................................................
324
Registered bonds, intended by term “ United States bonds” ...........................
301
Registered bonds, exchange of coupon bonds for.....................................................
305
Registrar of stock and bonds, power of national banks to act as..........................
208
Registry of transfer of bonds..........................................................................................
307
Regulations for exchange of bonds...............................................................................
323
Regulations for redemption records..............................................................................
513
Regulation of banking business:
Assessment, enforcement of....................................................................................
430
Circulation, improper use of................................................: .................................
428
Dividends...................................................................................................................
424
Dividends prohibited, when..................................................................................
429
Examiners, appointment of....................................................................................
527
Examiners, compensation of..................................................................................
527
Impairment of capital..............................................................................................
430
Interest, limited.......................................................................................................
422
Interest, unlawful, penalty for..............................................................................
423
Laws governing certain associations.....................................................................
300
Liability of association restricted..........................................................................
427
Loans, restrictions on...............................................................................................
425
Net profits..................................................................................................................
424
Place of business.......................................................................................................
400
Real estate, purchasing, etc...................................................................................
223
Reports of condition.................................................................................................
440
Reports, failure to make.........................................................................................
443
Reports, verification of........................................................................................ 441, 442
Reports of dividends and earnings........................................................................
442
Reserve cities...................... .....................................................................................
402
Reserve cities, balances with agents....................................................................
406
Reserve cities, central......................................................................................... 401, 402
Reserve cities, requirements..................................................................................
402
Reserve requirements, gold banks........................................................................
342
Shareholders, list of..................................................................................................
439
State taxation of associations.................................................................................
451
Stock, holding, etc...................................................................................................
426
Surplus and dividends............................................................................................
424
Uncurrent notes, use of, prohibited......................................................................
431
Unearned dividends prohibited............................................................................
429
Visitatorial powers, limitation of...........................................................................
528
Reimbursement (see Circulation; Expense; Plates and dies) of expenses for
redemption of circulation...........................................................................................
415
Removal of Comptroller of the Currency....................................................................
101
Replacing worn-out and mutilated circulation..........................................................
339

INDEX TO NATIONAL-BANK ACT, ETC.

261

Reports:
Paragraph.
Amendments proposed in Comptroller’s annual................................................
110
Animal, number to be printed.......................................................................... 112.113
Annual, to be made to Congress...........................................................................
110
Banks’ , other than national...................................................................................
110
Circulation, semiannual return of.........................................................................
446
Closed banks......................................................................................................... 110.111
Condition of national banks in annual................................................................
110
Distribution of annual........................................................................................ L12. IL3
Dividends and earnings...................................................................................... 442. 443
Failure to make, to Comptroller...........................................................................
443
List of shareholders.................................................................................................
439
Of examiners............................................................................................................
527
Payment of capital stock................................................................................... 226, 227
Printed, number of copies of annual................................................................ 112, 113
Receiver, to Comptroller........................................................................................
515
Statement of condition of national banks. Federal reserve banks, and
member banks.................................................................................................. 440, 441
Requirements prior to commencing business............................................................
319
Requisite:
Amount of capital....................................................................................................
224
Qualifications of directors......................................................................................
233
Requisites of organization certificate..........................................................................
202
Reservation of rights of associations organized under act of 1803..........................
247
Reserve:
Clearing-house certificates.....................................................................................
402
Deposits to govern amount of................................................................................
410
Determined by deposits, not circulation............................................................
402
Federal reserve banks, that may be held with.............................................. 405-407
Five per cent fund not counted as................................................................... 412. 414
Gold and silver, held by gold banks....................................................................
312
Gold certificates.......................................................................................................
433
Lawful money...................................................................................................... 402,414
Maintenance of.........................................................................................................
402
None required to be held against United States deposits...............................
413
On circulation not required...................................................................................
402
Penalty for failure to maintain.............................................................................
402
Proportion of, with agents.......................................................................... 401, 405, 406
Proportion of, with Federal reserve bank...........................................................
405
Requirements....................................................................................................... 402-412
Required to be held with Federal reserve bank..............................................
407
Requirements for gold banks................................................................................
342
Silver certificates.....................................................................................................
729
Withdrawal of, from Federal reserve bank.........................................................
409
Reserve agents (see also Agent), balance with................................................. 401, 405. 406
Reserve cities:
* Additional, provisions for.................................................................................. 401,402
(’ash reserve required.............................................................................................
406
Central, deposits in.............................................................................. 401, 402, 405, 406
Central, provisions for............................................................................................
401
Classification of........................................................................................................
402
Designation of..........................................................................................................
402
Distribution of reserve to be held by banks in.................................................
40;»
Names of...................................................................................................................
402
Requirements, not applicable to gold banks in San Francisco.........................
40 L
Requirements of associations in........................................................................ 402, 406
Reserve requirements.............................................................................................
406
Reserve that may be held with, by banks elsewhere than in reserve cities . ..
405
Reserve requirements:
Banks not in reserve or central reserve cities....................................................
405
Central reserve cities.......................................................................................... 401.407
Country banks..........................................................................................................
405
Estimate of...............................................................................................................
410
Five per cent redemption fund not counted as reserve...................................
412
How estimated.........................................................................................................
410
Reserve cities other than central..................................................................... 402, 406
When effective.........................................................................................................
404

262

INDEX TO NATIONAL-BANK ACT, ETC.

Residences:

Paragraph.

List of shareholders and, reported annually.........................................................
439
List of shareholders and, in organization certificate............................................
202
National bancs..........................................................................................................
214
Qualifications of directors of associations............................................................
233
Resources. (See Assets.)
Restoration of capital stock, provisions for............................................................. 227, 430
Restrictions:
Amount of lawful money that may be deposited to withdraw circulation..
314
Gold certificates, issue of........................................................................................
729
Notes less than $1.....................................................................................................
718
On banks’ indebtedness..........................................................................................
427
On loans.....................................................................................................................
425
State tax on national-bank shares.........................................................................
451
Tax on circulation....................................................................................................
714
Upon use of circulating notes................................................................................
428
Visitatorial powers limited.....................................................................................
528
Resumption of specie payments...................................................................................
329
Retirement account, circulation for which deposits made to redeem......................
416
Retirement of:
Circulating notes.......................................................................................................
313
Circulation by deposit of lawful money...............................................................
314
Circulation by sale of United States bonds.........................................................
315
Retiring circulation under provisions of Federal reserve act.....................................
315
Returns. (See Circulation; Reports; Taxation.)
Right of shareholders to vote........................................................................................
231
Rooms, vaults, and furniture for Currency Bureau...................................................
103

INDEX TO NATIONAL-BANK ACT, ETC.

263

S.
Para gra p h .

St. Louis designated as a central reserve city...........................................................
401
Salaries of examiners......................................................................................................
527
Sale:
Assets of insolvent association, by receiver........................................................
515
Assets of insolvent associations, by shareholders’ agent.....................................
522
Bonds, for failure to redeem circulation.......................................... 504, 508, 511, 512
Of stock purchased from dissenting shareholders...........................................
219
Stock, for delinquent payment of installment.................................................
227
Stock, for impairment of capital..........................................................................
430
Stock taken for debt...............................................................................................
426
Savings accounts as time deposits..............................................................................
403
Savings banks, statements to be given in annual report.......................................
110
Seal, power of association to adopt and use...............................................................
204
Seal of Office of Comptroller:
Certified copy of organization certificate under, evidence................................
704
Certificates under, competent evidence..............................................................
703
Description, impression of, and certificate of approval by Secretary of the
Treasury, to be filed with the Secretary of State.............................................
107
Devised by Comptroller and approved by Secretary.......................................
107
Secretary of Interior, report to, of bureau employees.................................................
I ll
Secretary of State, description, impression, and certificate of seal of Comp
troller to be filed with................................................................................................
107
Secretary of the Treasury:
Agent, special, to be appointed for associations failing to redeem circula
tion.........................................................................................................................
508
Appointment of clerical force, for redemption of circulation, by......................
415
^ ppointment of Comptroller on recommendation of..........................................
101
Appointment and classification of clerks by......................................................
105
Appointment of Deputy Comptroller by........................................................ 103,104
Assignment of rooms, etc., for the Comptroller by............................................
108
Authorized to exchange registered for coupon bonds.........................................
305
Authorized to issue 3 per cent gold bonds and Treasury gold notes..............
3L8
Certified checks may be received for duties, internal taxes, and all public
dues upon regulations prescribed by................................................................
770
Circulating notes printed under direction of......................................................
326
Circulation, worn or mutilated, destruction of, by......................................... 339, 340
i 05
Clerks for Comptroller of the Currency appointed by.........................................
Deposit of Government moneys upon direction of............................................
(>L5
Depositaries of public moneys designated by....................................................
243
Duties of Comptroller under general direction of..............................................
100
Earnings from Federal reserve banks, disposition of, by.................................
750
Examiners, appointments to be approved by....................................................
527
Exchange of bonds, terms of, prescribed by.................................................. 3J1, 323
Gold certificates, authority to issue................................................................. 433, 729
Gold certificates to be issued by...........................................................................
754
Gold dollar to be maintained as standard unit of value by.................................
749
Gold notes may be issued by, in exchange for certain United States bonds...
318
Gold reserve for redemption of United States and Treasury notes to be
maintained by .....................................................................................................
750
May prescribe rules for printing charter numbers on circulation................
325
National bank examiners, appointments to be approved by........................
527
Notice to present circulation for redemption when bonds have been for
feited ......................................................................................................................
510
Organization of national banks with capital less than $100,000 to be approved
by...........................................................................................................................
224
Panama Canal bonds, additional issue by..........................................................
767
Plates and dies, regulations for, examination of, to be approved by..........
328
Post-office money-order funds placed in national banks designated b y .. .
732

264

INDEX TO NATIONAL-BANK ACT, ETC.

Secretary of the Treasury—Continued.
Paragraph.
Public-money deposits............................................................................................
730
Pulp from maceration to be disposed of by........................................................
340
Purchase of property by receiver to be approved by................................ 524, 525
101
Recommendation of appointment of Comptroller by___! ...............................
Receivers, appointment of, by Comptroller, concurrence in by, in certain
cases........................................................................................................................
402
Refunding United States bonds............................................................................
759
Regulations for redemption records......................................................................
513
Regulations for reimbursement of circulation retirement account..............
416
Seal of office of Comptroller to be approved by................................................
107
State-bank circulation, regulations for redemption of, to be prescribed by.
706
Sureties on bond of Comptroller of Currency to be approved by................
102
Sureties on bond of Deputy Comptroller to be approve b y ........................ 103,104
When silver dollars are coined, Treasury notes to be canceled, and silver
certificates to be issued by................................................................................
753
Withdrawal of circulation to be approved by....................................................
314
Sections of Revised Statutes, not included in the national-bank act, affecting
national banks.......................................................................................................... 700-770
Security for circulation {see Bonds, United States), United States bonds a s.. 302, 303
Security for Government deposits................................................................................
243
Security for loans:
Personal......................................................................................................................
204
United States notes and national bank notes not to be used as.....................
432
Semiannual return of circulation..................................................................................
446
Senate:
Comptroller appointed by the President, by and with the advice of..........
101
Comptroller’s report to be sent to.........................................................................
112
Shareholders:
Agent of, to return to, assets of insolvent associations......................................
522
Annual meeting.......................................................................................................
232
Appointment and qualification of agent of.........................................................
522
Assessment for impairment of capital..................................................................
430
Assets of insolvent association to be returned to, ratably after debts are paid.
517
Consent of, necessary to extension.......................................................................
216
Conversion of State banks, requirements............................................................
245
Creditor’s bill against..............................................................................................
521
Directors, election or appointment of, by....................................................... 204, 232
Dissenting to extension, may withdraw..............................................................
219
Duties of agent of.....................................................................................................
522
Enforcement of assessment for impairment of capital stock......................
430
Enforcing payment by, of installments...............................................................
227
Estates and funds with trustee liable for assessment........................................
242
Extension of corporate existence...................................................................... 215, 216
Failure to pay installments....................................................................................
227
Impairment of capital, assessment.......................................................................
430
Increase of capital stock by............................................................................... 228, 229
Individual liability of.............................................................................................
240
Liability, enforcement of, by receiver............................................................. 515,520
Liability of, who have transferred their shares..................................................
241
List of, to be kept and sent to Comptroller........................................................
439
List of, subject to inspection.................................................................................
439
Location, change of, b y ..........................................................................................
211
Names, residences, and number of shares held by each in organization
certificate...............................................................................................................
202
Personal liability of, in certain converted State banks....................................
240
Provision for election by, when............................................................................
238
Proxies, votir g by...................................................................................................
231
Qualifications of directors.......................................................................................
233
Red uction of capital stock by ...............................................................................
230
Rights, and liabilities of, on transfer of shares...................................................
225
Title and location of association, change of, by.................................................
211
Vote of, necesary to place association in liquidation........................................
500
Voters, qualification of............................................................................................
231

INDEX TO NATIONAL-BANK ACT, ETC.

265

Shares:
Paragraph.
Association not to own or hold its own, except...................... ^.............. ........... ......426
Capital stock number, and name of holders to be stated in organization
certificate.............................................................................................................. ......202
Consent of owners of two-thirds, necessary to extension................................. ..... 216
Converted State bank to be the same as prior to conversion............................... 245
Disposition of, taken for debt............................................................................... ......426
Fifty per cent of aggregate value of, to be paid in prior to beginning busi
ness .................................................................................... ................................... ..... 226
Holding of, in other banks by converted banks authorized........................... ..... 245
Installments, payment, and certification of............................................................ 226
List of owners of, to be kept and copy sent to Comptroller................................. 439
Loan on security of, prohibited............................................................................ ..... 426
Oath of director relative to......................................................................................... 236
Owners of two-thirds may place association in liquidation.................................. 500
Organization certificate to state capital and number of........................................ 202
Personal property................................................................................................. 225,451
Preference in allotment of, in succeeding associations..........................................219
Purchased or acquired..................................................................................................426
Qualifications of directors...................................................................................... ..... 233
Receiver may be appointed for failure to dispose of, taken........................ 426, 515
Sale or forfeiture of, for failure to pay installments due....................................... 227
Sale of, when necessary.............................................................................. 219, 426, 430
State taxation of............................................................................................................451
Transfer of................................................................................................................ .....225
Value of, of shareholders dissenting to extension, how ascertained.............. ..... 219
Value, par, of each.............................................................................................. 225, 245
Voting.................................................: ..................................................................... .....231
Signature on circulation:
Not required for redemption of.................................................................................. 417
President or vice president and cashier................................................................... 324
Treasurer and Register, United States................................................................ ..... 324
Silver:
Construed to be lawful money, when....................................................................... 342
Reserve of gold banks to gold and....................................................................... ..... 342
Silver certificates:
Clearing-house balances payable in..................................................................... ..... 729
Denominations of.......................................................................................................... 755
Issue of, in place of Treasury notes, when......................................................... ..... 753
Issue of, when...................................................................................................... 753, 755
Reserve of national banks may be....................................................................... ..... 729
Silver coinage:
Dollars................................................................................................................... 751,753
Subsidiary............................................................................................................. 756, 757
Silver coins:
Foreign, not legal tender.............................................................................................719
Philippine Islands, legal tender........................................................................... .....719
United States, are legal tender......................................................................... 722, 723
Silver dollars to remain legal tender. ................... ........ ....................................... 722, 751
Solicitor of the Treasury, conduct of suits under direction and supervision of. . .
700
Special acts relating to national banks....................................................................... ..... 803
Special agent. (See Agent.)
Special customs deposits, certified checks receivable for, under certain condi
tions............................................................................................................................... .....770
Special examination for extension of charter.......................................................... .....217
Special reports, authority for.......................................................... ........................... .....440
Specie payments, no notes under $5 to be issued after resumption of................. .....329
Standard unit of value, gold dollar declared to be........................................................749
State banks:
Branches of, converted........................... .............................................................. .....246
Circulation of, when exempt from taxation....................................................... .....706
Conversion of.................................................................................................................245
Examination (member banks).......................... ........... ........................................ .....527
Penalty for failure to make return of tax on circulation................................. .....712
Penalty for unauthorized receipt of public money................................................738
Reports of, provided for......................................................................................... .....110

266

INDEX TO NATIONAL-BANK ACT, ETC.

State banks— Continued.
Paragraph.
Return of taxable circulation................................................................................
711
Shareholders’ personal liability, exceptions.......................................................
240
Shares of, converted.................................................................................................
245
Statement of condition............................................................................................
110
Tax on circulation....................................................................................................
705
Tax on circulation of converted............................................................................
713
Tax on unauthorized circulation....................................................................... 708-710
State courts. (See Comptroller; Suits.)
State, Territory, or District:
Change of title or location of associations............................................................
211
245
Conversion of bank organized under authority of laws of................................
Interest, national banks not to take, etc., in excess of legal rate in..............
422
“ National, ” use of the word in titles...................................................................
530
Qualification of directors........................................................................................
233
Proceedings to enjoin Comptroller or receiver to be brought in district in
which association is located...............................................................................
702
Taxation of circulation of State, etc., associations........................................ 705,715
Taxation of money by......................................................................................... 710,717
Taxation of national banks by...............................................................................
451
Stationery, etc.................................................................................................................
108
Status not changed by extension of charter...............................................................
218
Status of associations organized under the act of 1863.............................................
247
Statutory bad debts defined..........................................................................................
429
Stock:
Amount of capital, to be stated in organization certificate.............................
202
Increase of capital....................................................................................................
228
245
Of national banks may be held by converted State banks.............................
Par value of................. ............................................................................................
225
Payment and certification of..................................................................................
226
Purchased or acquired.............................................................................................
430
Reduction of capital................................................................................................
230
Transfer of shares......................................................................................................
225
Stocks, United States, exempt from taxation............................................................
716
Stolen national-bank notes, redemption of.................................................................
417
Subsidiary silver coinage............................................................................................ 756, 757
Succession:
Expired associations................................................................................................
219
Period of, national banks........................................................................................
204
Suits:
Against United States officers or agents...............................................................
700
Certified copy of organization certificate evidence in......................................
704
Circuit and district courts, jurisdiction of...............................................214, 218, 701
Corporate powers of associations............................................................................
204
Creditors’ bill against shareholders.......................................................................
521
Crimes, jurisdiction, etc. (See Crimes.)
701
District courts, jurisdiction of , to enjoin Comptroller......................................
Enjoining Comptroller or receiver........................................................................
518
Forfeiture of charter.................................................................................................
526
Proceedings to enjoin Comptroller to be brought, where.................................
702
Sealed certificate of Comptroller competent evidence.....................................
703
Shareholders’ agent..................................................................................................
522
Shareholders’ liability, to enforce........................................................................
515
Solicitor of the Treasury to direct and supervise certain.................................
700
Surplus:
Converted State banks with capital of $5,000,000.............................................
240
Creation of.................................................................................................................
424
425
Loans, limit of, measured by capital and................................ ..........................
Surplus and dividends, provisions for surplus and payment of dividends..........
424
Surrender of bonds. (See Bonds, United States.)
Suspension of business after refusal to pay circulation.............................................
509

INDEX TO NATIONAL-BANK ACT, ETC.

267

Paragraph.
Taking unauthorized impressions of tools, penalty for............................................
744
Tax:
Circulation —
Enforcing payment of.....................................................................................
448
Exempt from....................................................................................................
706
Failure to make returns..................................................................................
447
Of converted State banks...............................................................................
713
■Rate and time of payment.............................................................................
444
Refunding excess.............................................................................................
449
Secured by Panama Canal bonds.................................................................
303
Semiannual return of......................................................................................
446
Money of all kinds subject to, by States, etc.....................................................
717
Notes" State banks, corporation, company, or persons......................... 705-708, 710
Notes, State banks, corporation, company, or persons, failure to make
712
returns..................................................................................... ............................
Notes, State banks, corporation, company, or persons, semiannual return..
711
Provisions restricted on circulation.....................................................................
714
Remission of, on insolvent national banks..................................................... 450, 715
State taxation of national banks...........................................................................
451
Taxation. (See Tax.)
Taxes:
Internal-revenue, on imports may be paid by certified checks.....................
769
Teller. (See Officers.)
Term:
Of office for directors..............................................................................................
232
For which charter is issued...................................................................................
204
For which real estate may be held......................................................................
224
Territorial court. (See Comptroller: Redemption; State, etc.)
The national-bank act, authority for title..................................................................
200
Time:
Allowed for transmission of reports of condition...............................................
440
Deposits defined......................................................................................................
403
430
For payment of assessment for impairment of capital.....................................
For payment of tax on circulation.......................................................................
444
In which liquidating banks must deposit lawful money............................. 502. 504
In which United States bonds may be refunded..............................................
315
Title and location, change of, by national banks.......................................... 211, 213, 803
Title of association to be approved by Comptroller of Currency...........................
202
Transfer of bonds.............................................................................................................
306
Association to be notified.......................................................................................
308
Record of...................................................................................................................
307
Transfer of shares of capital stock, effect of...............................................................
241
Transfer of shares of stock.............................................................................................
225
Transfers (see Treasurer, United States; Bonds, United States), when void.......
529
Transportation charges for redeemed circulation......................................................
414
Treasurer, United States:
Application to sell bonds to be filed with..........................................................
315
Circulation of liquidating and insolvent banks, duty of............................. 505, 506
Circulation, tax on, to be paid to.........................................................................
444
Circulation, withdrawal of, provisions for..................................... ‘....................
314
Deposits of bonds with...........................................................................................
302
Deposit of bonds with, to secure circulation......................................................
323
Deposit of lawful money with, by liquidating bank........................................
502
Disposition of redemption account......................................................................
416
Enforcing tax on circulation.................................................................................
448
Examination of bonds and records, provisions for................................ 309, 310,311
Federal Reserve Board to be furnished with list of applications to sell bonds.
316
Fine for failure to make reports to Comptroller to be retained by................
443
Interest on bonds to be retained by, when.................................................... 430,448

268

INDEX TO NATIONAL-BANK ACT, ETO.

Treasurer, United States— Continued.
Paragraph.
Lawful money to redeem circulation of extended banks to be deposited
with.........................................................................................................................
220
Proceedings on default in making return on circulation subject to d u ty .. .
448
Public moneys to be deposited with Assistant Treasurer, Government de
positaries, or...................................................................................................... 730, 731
524
Purchase of property by receiver, approval to be filed with..........................
Receiver to pay all money received to................................................................
515
Redemption—
Fund to be kept with......................................................................................
414
Of circulation by..............................................................................................
414
Of circulation in United States notes by.....................................................
414
Semiannual return to, of circulation subject to duty.......................................
446
Signature of, on circulation....................................................................................
324
Tax, excess, refunding............................................................................................
449
Tax on circulation, to be paid to..........................................................................
444
Transfer of bonds in trust for associations to be made to.................................
306
Treasury, extended banks to reimburse, cost of new plates...................................
220
Treasury notes:
Cancellation of...................................................................................................... 753, 756
Demand, legal tender..............................................................................................
726
Interest-bearing........................................................................................................
727
Issue of................................................................................................................... 318, 764
Redeemable in gold.................................................................................................
750
Tax, exempt from....................................................................................................
716
Treasury, United States (see also Treasurer, United States):
Association to reimburse, for cost of redemption of circulation and plates..
414
Currency Bureau in.................................................................................................
100
Divisions of Issue and Redemption established................................................
752
Notice to present circulation at.............................................................................
510
Penalty for failure of associations to report, to be paid into....................... 443, 446
Redemption account, disposition of.....................................................................
416
Redemption fund, 5 per cent, in..........................................................................
414
Redemption of circulation at..................................................... 312, 414, 505, 513, 514
235
Trial for violation of interlocking directorate act...................................................
Trust companies:
Examinations (member)........................................................................................
527
Trust, purchase of property by receiver to protect.................................................
523
Trustees:
Not personally liable.............................................................................................
242
Power of national banks to act as........................................................................
208

INDEX TO NATIONAL-BANK ACT, ETC.

tr.

269

T ara graph.

Unauthorized deposit of public money, by disbursing officer...............................
737
Unauthorized receipt or use of public money by banks, etc.................................
738
Uncurrent notes, issue of, prohibited..........................................................................
431
Uncurrent subsidiary silver, recoinage of..................................................................
757
Undivided profits not considered borrowed money..................................................
429
Unearned dividends prohibited...................................................................................
429
Unfit circulation, redemption of..................................................................................
414
United States (see also Officers of the United States; Crimes, jurisdiction, etc.):
Bonds. (See Bonds.)
Coins are legal tender......................................................................................... 720 724
Courts of, may enjoin proceedings.......................................................................
518
Courts, jurisdiction of, not affected.....................................................................
214
416
Debt, deposits to redeem circulation to be reported monthly as...................
Deposits in Federal reserve banks.......................................................................
615
Deposits. (See Government depositaries.)
Gam by failure to redeem notes by extended banks.......................................
220
Obligations, exempt from taxation......................................................................
716
Obligation of, defined.............................................................................................
739
Securities, penalty for counterfeiting or forging................................................
740
Suits in which, is a party......................................................................................
700
United States disbursing officers:
Fraudulent notes to be marked by......................................................................
748
Penalty for unauthorized deposit of public money...................................... 737, 738
Withdrawal of public money................................................................................
730
United States notes:
Are legal tender.......................................................................................................
725
Circulation of banks redeemable in.....................................................................
414
Fraudulent, to be marked.....................................................................................
748
Issue of......................................................................................................................
764
Obligations of United States defined...................................................................
739
Penalty for:
Dealing in counterfeit.....................................................................................
746
Illegal use or possession of material for printing.......................................
745
Passing counterfeit..........................................................................................
743
Pledging, etc....................................................................................................
432
Taking or having unauthorized impressions of tools, etc..................... 744, 745
Redeemable in gold................................................................................................
750
Subject to taxation by States, etc........................................................................
717
Unit of value, gold dollar to be standard...................................................................
749
Unpaid dividends not considered borrowed money.................................................
427
Unsigned national bank currency, redemption of....................................................
417
Using plates to print notes without authority...........................................................
742
Use of circulation, restricted.........................................................................................
428
Use of title “ National” prohibited..............................................................................
530
Usury:
Interest, when not...................................................................................................
422
Penalty for................................................................................................................
423

270

INDEX TO NATIONAL-BANK ACT, ETO.

V.
Paragraph.

Vacancies, board of directors, filling...........................................................................
237
Value of capital stock of converted State banks, par...............................................
245
Value of capital stock, par.............................................................................................
225
Vaults for Currency Bureau...........................................................................................
108
Verification of report of condition................................................................................
441
Vice president (see also Officers):
Bonds, United States, may sign transfer of.........................................................
306
Circulation, may sign........................................................................................... 324, 337
Election or appointment of....................................................................................
204
Proxy, not to act as..................................................................................................
231
Violations of provisions of national-bank act, forfeiture of charter for..................
526
Visitatorial powers restricted........................................................................................
528
Visitatorial powers, limitation o f..................................................................................
528
Void, illegal preference...................................................................................................
529
Voluntary liquidation. (See Liquidation.)
Vote required:
For change of title or location................................................................................
211
For conversion of State bank.................................................................................
245
For increase...............................................................................................................
229
For liquidation..................................................................................................... 204,500
For reduction............................................................................................................
230
For shareholders’ agent...........................................................................................
522
For voluntary liquidation.......................................................................................
500
To fix date of election.............................................................................................
238
Voters, qualifications of shareholders at elections.....................................................
231

INDEX TO NATIONAL-BANK ACT, ETC.

271

Paragraph.

When receiver may be appointed................................................................................
520
Where proceedings to enjoin Comptroller must be brought....................................
702
Withdrawal:
Bonds, general provisions respecting............................................................... 311, 414
Circulation, provisions for................................................................... 312, 313, 314, 414
Deposit and, of public moneys......................................................................... 730, 737
Dissenting shareholders..........................................................................................
219
Expired associations, bonds of..............................................................................
221
Illegal preference of creditors................................................................................
529
Liquidating associations, bonds of.......................................................................
504
Of reserve from Federal reserve bank.................................................................
409
Reduction of capital................................................................................................
230
Unearned dividends................................................................................................
429
Worn-out circulation, destroying and replacing........................................................
339

INDEX TO THE FEDERAL RESERVE ACT.
A.
Acceptance:
Paragraph.
Failure of national banks to signify................................ .......................... 602e, 602f
Of terms of act.......................................................................................................... 602b
Acceptances, bankers’ ......................................................................................... 613b, 614
Acceptances rediscounted by Federal reserve banks..................................... 613b, 613c
Accommodation extended to member banks............................................................. 604c
Accounts:
Foreign...................................................................................................................... 614
With other Federal reserve banks for exchange purposes............................... 614
Acknowledgment of organization certificate of Federal reserve banks................. 004a
Act of March 14, 1900, parity provisions reaffirmed................................................. 626
Act of May 30, 1908, certain provisions extended, etc............................................ 627
Additional national-bank circulation.......................................................................... 627
Tax rate changed..................................................................................................... 627a
Additional reserve and central reserve cities............................................................ 611e
Administrators, national banks as............................................................................... 611k
Advancements extended to member banks............................................................... 604c
Advisory council..................................................................................................... 612,612a
Agencies, foreign............................................................................................................. 614
Agent, when bank may act as insurance agent or as broker in procuring loans
on real estate................................................................................................................ 613c
Agent, Federal reserve................................................................................................... 604f
Alaska........................................................................................................................ 602, 619g
Reserve requirements for national banks in...................................................... 6!9g
Aldrich-Vreeland Act, effect on................................................................................... 627
Amending section 5154, United States Revised Statutes....................................... 608
Amendment to section 5202, United States Revised Statutes, liability of
national banks............................................................................................................. 613c
Amount of capital required for Federal reserve banks............................................ 6021
Amount of capital stock required to be subscribed to............................................. 602c
Amount:
Of Federal reserve bank circulating notes not limited.................................... 618b
Of Federal reserve notes that may be issued..................................................... 616a
Of gold notes that may be issued to Federal reserve banks............................ 618c
Of redemption fund required for Federal reserve notes................................... 616(1
Of reserve required for Federal reserve notes.................................................... 616b
Of reserve required to be held by—
Banks elsewhere than in reserve cities........................................................ 619a
Central reserve city banks............................................................................. 619c
Country banks.................................................................................................. 619a
Reserve city banks.......................................................................................... 619b
Of United States bonds that may be purchased by Federal reserve banks
from member banks........................... ................................................................. 618a
That may be loaned on farm lands.............................. * ..................................... 624
Annual report of Federal Reserve Board to House of Representatives................ 610g
Application for Federal reserve notes......................................................................... 616a
Application for Federal reserve notes subject to action of Federal Reserve
Board............................................................................................................................. 616e
Application for membership after organization of Federal reserve banks............ 605
Appointment of:
Employees of Federal Reserve Board.................................................................. 6111
Examiners................................................................................................................. 621
Members of Federal Reserve Board..................................................................... 610

164312°—20------18

273

274

INDEX TO FEDERAL RESERVE ACT.

Appropriation:
Paragraph.
For expenses of organization committee...................................................... 602n
For expenses of printing Federal reserve notes........................................... 616i
Assessments for examiners.................................................................................. 621a
Assessment on Federal reserve banks:
To pay cost of Federal reserve notes............................................................ 616h
To pay salaries and expenses of board...............................................610b, 6111
Assistants to organization committee.............. .................................................. 602n
Attorneys not to receive fee or other consideration other than usual fee or salary. 622b
Authority of Reserve Bank Organization Committee......................................... 602a

INDEX TO FEDERAL RESERVE ACT.

275,

B.
Bank:
Paragraph,
Balances, net, to or from to be used in reserve calculations...........................^I9f
Defined...................................................................................................................... 601
Examinations............................................................................................ 621-622,
Bank examiners:
Appointment of........................................................................................................ 621
Gratuities to, prohibited........................................................................................ 622a
Loans to, prohibited................................................................................................ 622a,
Powers of................................................................................................................... 621
Salaries of.................................................................................................................. 621.1
Secrecy enjoined of............ ................................................................................... 622aService to banks and their directors, officers, etc., restricted to official
duties...................................................................................................................... 622
Bankers’ acceptances............................................................................................ 613b- 614
Banks1
Eligible............................................................................................ 602b, 608, 609 609d
May become national, how.................................................................................... 608
Not in reserve cities. (See Country banks )
Outside continental United States....................................................................... 6I9g
Bed pieces for Federal reserve notes........................................................................... $16U
Bills of exchange:
Acceptable by member banks............................................................................... 613b
Bought by Federal reserve banks from member banks................................... 614
Foreign............................^......................................................................................... 614
Limit to liability of national banks not to include........................................... 613c
Open-market operations......................................................................................... 614
Rediscounted by Federal reserve banks................................................. 613a-613c
Bills of State and subdivisions thereof dealt in by Federal reserve banks............614
Bills receivable, subject to rediscount.............................................................. 613a-613c
Board, held to mean Federal Reserve Board............................................................ 601
Board of directors of Federal reserve bank (see also Federal reserve bank,
directors of)............................................. ........................................................... 604c-604i
Certificate to be made by, when capital is increased or reduced.......... 605d, 606
Bond, Federal reserve agent......................................................................................... 611i
Bonds, United States:
Dealt in by Federal reserve banks....................................................................... 614
Hypothecation of, by Federal reserve banks..................................................... 614
National banks not required to deposit prior to commencement of business.. 617
Purchase of, by Federal reserve banks................................................................ 618a
Refunding.......................................................................................................... 6l8-618c
To secure Federal reserve bank notes.................................................................. 004b
“ Two’s” exchange for 1-year gold notes and 30-year gold bonds.................. 018c
Thirty-year 3 per cent gold, without circulating privileges............................ 618c
In exchange for 1-year 3 per cent Treasury notes............................................. 618d
Branch:
Federal reserve banks............................................................................................. 603
National banks—
Foreign............................................................................................................... 625
In dependencies............................................................................................... 625
By-laws of Federal reserve banks................................................................................. 604b

276

INDEX TO FEDERAL RESERVE ACT.

Paragraph.
Cable transfers, purchase and sale of, in open market............................................. 614
Cancellation of Federal reserve notes.......................................................................... 616c
Capital, amount required to enable State bank to become member bank........ 609f
Capital stock of Federal reserve banks:
Allotment of.................................................................................................... 602c, 604a
Cancellation and redemption of.................................................................. 605e, 606
Dividends.................................................................................................................. 607
Hypothecation of, prohibited when owned by member bank........................ 605a
Increase and decrease of.................................................................................. 605-606
Liability of holders........ ^.............................................................................. 602d. 606
Maximum amount permitted to be held by any one individual or corpo
ration.................................................... .................................................................. 602h
Minimum amount of, before organization......................................................... 6021
Net earning, apportionment of.............................................................................. 607
Payment for........................................................................................... 602c, 602g, 609
Shares of $100 each.................................................................................................. 605
Subscriptions to—
After organization of Federal reserve banks............................................... 605b
By banks........................................................................................... 602c, 604, 619g
By public................................................................................................. 602g, 602h
By State banks.................................................................................. 604, 609, 609a
By trust companies........................................................................... 604, 609, 609a
By trust companies in District of Columbia............................. 604, 602b, 602c
By United States.............................................................................................. 602i
Transfer of............................................................................................. 602h, 602k, 605a
Voting power of, limited......................................................................................... 602j
Cash reserve required:
Banks elsewhere than in reserve cities................................................................ 619a
Central reserve city banks...................................................................................... 619c
Reserve city banks................................................................................................... 619b
Central reserve cities....................................................................................................... 602 m
Cash reserve required.............................................................................................. 619c
Number may be increased or decreased.............................................................. 611e
Reserve board to control......................................................................................... 611e
Status of..................................................................................................................... 602 m
Certificate of:
Increase of capital of Federal reserve banks....................................................... 605d
Organization of Federal reserve banks................................................................. 604a
Reduction of capital of Federal reserve banks................................................... 606
Certificates of deposit as time deposits........................................................................ 619
Chairman of board of directors of Federal reserve banks............................... 604d, 604f
Changing collateral for Federal reserve notes............................................................. 616g
Charter forfeited by national banks not accepting terms of this act..................... 602f
Charter of Federal reserve banks to be for 20 years.................................................. 604b
Checks receivable at par by Federal reserve banks, when..................................... 616j
Circulating notes of:
Federal reserve banks, issue of.............................................................................. 618b
Member banks, retirement of......................................................................... 618, 618a
Circulation (see Federal reserve bank notes and Federal reserve notes):
Federal reserve notes........................................................................................ 616, 616a
Limit to liability of national banks not to include........................................... 613c
Civil service, President may place employees of Federal Reserve Board under.. 6111
Class A directors..................................................................................................... 604d, 604e
Class B directors..................................................................................................... 604d, 604e
Class C directors..................................................................................................... 604d, 604i
Clearing house for Federal reserve banks and member banks................................ 6161
Collateral for Federal reserve notes.............................................................................. 616a
Substitution of.......................................................................................................... 616g

INDEX TO FEDERAL RESERVE ACT.

277
P ara gra p h .

Collection charges............................................................................................................ ..616k
Collateral, limit to liability of national banks not to include................................ ..613c
Commercial paper:
Eligible for rediscount............................................................................................ ..613a
Foreign....................................................................................................................... .614
Purchase and sale of..................................................................................................614
Security for Federal reserve notes....................................................................... ..616a
Comptroller of the Currency:
Duties performed under direction of the Secretary of the Treasury............. ..610h
Duties when Federal reserve districts have been established........................ ..004
Examination of member banks............................................................................. ..021
Examiners’ salaries, recommended by..................................................................621a
Examiners’ reports to............................................................ ................................ ..621
Expense of examination, assessed by....................................................................621a
Federal reserve notes, issued by.............................................................................61 Id
Federal reserve notes, unfit for circulation, to be returned to....................... ..616o
May permit examiners to disclose information in regard to member banks.. 622b
Member of Federal Reserve Board.........................................................................610
Member of Reserve Bank Organization Committee............................................602
National-bank examiners appointed by................................................................62 L
Organization certificate of Federal reserve banks to be filed with...................604a
Plates, dies, etc., for Federal reserve notes under supervision and control of. 616h
Powers of................................................................................................................... ..61Oh
Salary of.................................................................................................................... ..610
Suits against national banks not complying with terms of this act...................602f
Congressman not allowed to be member of Federal Reserve Board or officer or
director.......................................................................................................................... ..604d
Congress, visitatorial powers of......................................................................................621b
Contracts, powers of Federal reserve banks to make..................................................604b
Conversion of State banks............................................................................................. .608
Corporate seal, Federal reserve banks..........................................................................604b
Correspondents, foreign...................................................................................................614
Council, Federal advisory...................................................................................... 612, 612a
Country banks:
Cash reserve required............................................................................................. .619a
Distribution of reserve.............................................................................................619a
Reserve requirements for.........................................................................................619a
Reserve required to be held with Federal reserve bank................................. ..619a
Reserve that may be held with bank in reserve or central reserve city............619a
County bonds, etc., dealt in by Federal reserve banks............................................614
Currency act of Mar. 14, 1900, parity provisions reaffirmed....................................626
Currency associations........................................................................................................627
Customs, Federal reserve notes receivable for........................................................... ..616

J
278

INDEX TO FEDERAL RESERVE ACT.

Paragraph.
Daily report by Federal reserve agent of Federal reserve notes............................. 616a
Definitions......................................................................................................................... 601
Demand and time deposits..................................................................................... 619
Demand deposits defined............................................................................................... 619
Dependencies:
Branches of national banks in............................................................................... 625
National banks in..................................................................................................... 619g
Depositories....................................................................................................................... 615
Deposits:
In Federal reserve banks........................................................................ 613, 614, 615
Reserves against................................................................................................ 616b
In member banks, reserves against.............................................................. 619, 619f
Limit to liability of national banks not to include........................................... 613c
Of Government funds.................................................................................. ... 613, 615
Secretary of Treasury to receive deposits of gold coin or gold certificates
tendered by Federal reserve bank or agent................................................... 616m
Various kinds defined.............................................................................................. 619
With Federal reserve agent of Federal reserve notes, gold, etc., by Federal
reserve banks............................................................................................... 6L6f, 616g
With nonmember banks, limited.......................................................................... 619a
Denomination of gold notes issuable to Federal reserve banks .s............................ 618c
Deputy Federal reserve agent....................................................................................... 604f
Description of Federal reserve notes.................................................................. G16c, 616h
Destruction of Federal reserve notes............................................................................ 616c
Dies, etc., for Federal reserve notes............................................................................. 616h
Directors (see Federal reserve banks, directors of):
Branch Federal reserve banks............................................................................... 603 •
Liability for violation of this act by national banks......................................... 602f
Not to receive fee or other considerations for loan........................................... 622c
Of Federal reserve banks, suspension or removal of......................................... 611f
iDiscount rates:
Established................................................................................................................ 614
Increased by tax on deficiency in reserve requirements................................. 611c
Recommendations by council................................................................................ 612a
[Discounts:
By Federal reserve banks....................................................................................... 613a
Extended to member banks................................................................................... 604c
'solution of:
federal reserve bank..................................................................................... 604b, 607
£ T&tional member banks.......................................................................................... 602f
DistriL ^ !fcion of reserve:
BaL ^ elsewhere ^an in reserve city.................................................................. 619a
t \ai reserve city, banks in............................................................................... 619c
Reser
city, banks in..................................... ...................................................... 619b
District.
^ ^dealt in by Federal reserve banks................................................. .614
fWHfiod*
showing geographical lines of Federal reserve.............................. .604
Held to m ' an Federal reserve district................................................................. .601
District of Colui
trust comPanies in> eligible.................................................... .602b
Dividends:
__
,
,
n/v_
Of Federal res ^ v e banks.........................................................................................607
Prohibited wht * reserve is short............................................................................619e
TTrmairl Urnif L
liability of national banks not to include............................. .613c
Doubt?ulasseteof Pec W al reserve banks, written off.............................................. .611g
Drafts *
Limit to liability to national banks, not to include...........................................613c

Receivable at par by Fe? eral re8T e ^
’ whe“ ..................................... ^
Rediscounted by Fedi ^ reserve banks.........
.................................... 613a
Drainage, bonds, etc , dealt 111 by Pederal reserve banks.................................. 614
Duties:
Of Federal advisory cornu
Committee.'.'.'.'.'.'.! ! ! ! ! ! ! . ' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 602
Of Reserve Bank Orgamzai
Interest rate of paid directo.
...............................................ftoof
Securities, purchase of and t ^
directors...............................................622e

INDEX TO FEDERAL BESEBVE ACT.

279

Paragraph.
Earnings, division of....................................................................................................... 607
Election of directors of Class A and Class B .............................................................. 604e
Eligible banks........................................................................................ 602b, 608,60&-609d
Employees not to receive fee or other consideration other than usual salary----- 622c
Employees not to receive a greater rate of interest than other depositors.......... 622e
Employees of Federal reserve banks.......................................................................... 604b
Employees of Federal Reserve Board........................................................................ 6111
Estimate of reserve requirements............................................................................... 619f
Examiners:
Appointment of......................................................................................................621
Examiner, member bank not to make loan or grant any gratuity to.......... 622a
Examiner not to perform any service for compensation for any bank or
officer..................................................................................................................... 622b
Examiner not to disclose names of borrowers or collateral without first ob
taining written consent of Comptroller.......................................................... 622b
Powers of................................................................................................................... 621
Qualifications of....................................................................................................... 621
Reports of.................................................................................................................. 621
Salaries of.................................................................................................................. 621a
Examinations:
Assessments for......................................................................................................... 621a
Bank........................................................................................................... 621-622,625
Examiners to make................................................................................................. 621
Expense of................................................................................................................. 621a
Federal reserve banks.............................................................................................621c
Member banks.................................................................................................. 621,621b
National banks......................................................................................................... 621
Number to be made.................................................................................................621
Of foreign branches of national banks................................................................. 625
Of plates, dies, bed pieces, etc.. of Federal reserve notes............................... 616h
Qualifications of examiners....................................................................................621
State bank and trust companies............................................................................ 621
Exceptions to limit to liability of national banks.................................................... 613c
Exchange, account with other Federal reserve banks for purposes of.................. 614
Exchange charges.................................................................................................. 616k, 6161
Exchange of certain United States bonds for gold notes......................................... 618d
Executive officers of Federal Reserve Board............................................................. 610
Executors, national banks as......................................................................................... 611k
Exempt from taxes except real estate......................................................................... 607a
Exempt from taxes, gold notes issued in exchange for gold bonds....................... 618c
Expenses:
For Federal reserve notes.............................................................................616h, 616i
Of examiners............................................................................................................. 621a
Of Federal advisory council.................................................................................. 612
Of Federal Reserve Board...................................................................................... 610b
Exports, acceptances on, eligible as discounts by Federal reserve and member
banks..............................................................................................................................613b
Extension of additional currency act to June 30, 1915............................................ 627

280

INDEX TO FEDERAL EESERVE ACT.

Paragraph.
Failure to accept terms of this act...................................................................... 602e, 602f
Failure to make report, penalty ...................................................................... 609c-609d
Farm lands, loans on....................................................................................................... 624
Federal advisory council........................................................................................ 612,612a
Federal reserve agent...................................................................................................... 604f
Bond required of...................................................................................................... 611i
Daily report on issue and withdrawal of Federal reserve notes......................616a
Deposits with, of Federal reserve notes, gold, etc., by Federal reserve
banks.............................................................................................................. 616f, 616g
Deputy....................................................................................................................... 604f
Federal reserve notes issued to Federal reserve banks through...................... 616
Federal reserve notes, applications for, made to............................................... 616a
Gold coin or gold certificates to be received as deposits by Secretary of
Treasury when tendered by Federal reserve bank or agent...................... 616m
Information concerning member banks to be furnished Federal Reserve
Board by................................................................................................................. 621b
Powers of, second to those of Secretary of Treasury......................................... 610f
Salary of..................................................................................................................... 604f
Special examination of member banks to be approved by............................. 621b
Federal reserve banks.................................................................... ”................................ 602a
Acceptances, purchase and sale of, in open market..........................................614
Rediscount of.......................................................................................... 613b, 613c
Account with other Federal reserve banks......................................... 613, 614, 6161
Advances to, by means of Federal reserve notes............................................... 616
Amount of capital stock to be subscribed to....................................................... 602c
Application for Federal reserve notes subject to action of Federal Reserve
Board....................................................................................................................... 616e
Bankers’ acceptances, purchase and sale of, in open market......................... 614
Bills of exchange—
Purchase and sale of........................................................................................ 614
Purchase from member banks........................................................................ 614
Bills of State and political subdivision thereof dealt in................................... 614
Branches..................................................................................................................... 603
Foreign connections......................................................................................... 614
By-law's....................................................................................................................... 604b
Cable transfers, purchase and sale of.................................................................... 614
Capital stock of......................................................................................................... 6021
Certificate of organization....................................................................................... 604
Charter, term of........................................................................................................ 604b
Checks received at par. when................................................•...............................616j
Circulating notes, issue of....................................................................................... 618b
Circulating notes, redemption of........................................................................... 618b
Clearing-house provisions........................................................................................ 6161
Collateral deposited with Federal reserve agent for Federal reserve notes.. 616a
Increasing, to reduce liability for notes....................................................... 616f
Substitution of................................................................................................... 616g
Withdrawal of.................................................................................................... 616g
Collection charges........................................................................................... 6161", 6161
Commercial paper—
Purchase and sale of......................................................................................... 614
Rediscount of........................................................................................... 613a-613c
Security for Federal reserve notes.............................................. 616a, 616f, 616g
Contracts, power to make........................................................................................ 604b
Corporate body.......................................................................................................... 604b
Powers of............................................................................................................. 604b
Council, recommendations by................................................................................ 612a
Depository, Government............................................................... ................. 613,615

INDEX TO FEDERAL RESERVE ACT.

281

Federal reserve banks— Continued.
Deposits—
Paragraph.
Defined and classified..................................................................................... 619
From member banks................................................................................ 613, 616j
From or in other Federal reserve banks..................................... 613,614,616j
From the United States.......................................................................... 613, 615
Reserves against............................................................................................... 616b
With Federal reserve agent of Federal reserve notes, gold, etc. . . 616f, 616g
Directors.......................................................................................................... 604c-604i
Chairman of (Federal reserve agent).................................................. 604d, 604f
Bond required of...................................................................................... 611i
Chosen, how................................................................................... 604d, 604e, 604f
Classification of................................................................................................. 604d
Compensation of............................................................................................... 604g
Duties of............................................................................................................ 604c
Extension of discount, advancement and accommodations by.............. 604c
Number and classification of......................................................................... 604d
Qualifications of............................................................................................... 604d
Removal of........................................................................................................ 61If
Suspension of.................................................................................................... 611f
Term of.................................................................................................... 604d, 604i
Vacancies........................................................................................................... 604i
Discount rates to be established................................................................ 611c, 614
Discount by Federal reserve bank of paper secured by United States bonds
issued since April 24,1917................................................................................. 611m
Dissolution of.................................................................................................. 604b, 607
Dividends of............................................................................................................. 607
Doubtful assets of, to be written off...................................................................... 611g
Drafts, received at par, when................................................................................ 616]
Earnings, divisions of............................................................................................. 607
Employees................................................................................................................ 604b
Establishment of, to be officially announced by Secretary of Treasury-----619
Examination of........................................................................................................ 621c
Examination of member banks by....................................................................... 621b
Exchange charges.................................................................................................... 616k
Exempt from taxes.................................................................................................. 607a
Expense of Federal Reserve Board to be paid by............................................. 610b
Federal reserve notes. (See Federal reserve notes.)
Fiscal agent of the United States......................................................................... 615
Foreign connections................................................................................................ 614
Franchise tax............................................................................................................ 607
Gold bond, 30-year 3 per cent without circulating privilege................. 618c, 618d
Under same general terms as United States threes without circulating
privilege now issued.................................................................................... 618c
Gold coin or gold certificates to be received as deposits by Secretary of
Treasury when rendered by Federal reserve bank or agent......................616m
Gold loans, made of, and contracted for............................................................. 614
Gold, purchase and sale of........................................................................... 612a, 614
Gold notes, 1-year 3 per cent without circulating privilege.................. 618c, 618d
Exempt from taxes......................................................... ! .............................. 618c
Government deposits.......................................................................................613, 615
Hypothecation of United States bonds for gold loans...................................... 614
Individual liability of shareholders..................................................................... 602d
Liquidation of................................................................................................... 607, 611h
Loans made of, and contracted for....................................................................... 614
Municipal securities dealt in................................................................................. 614
National banks must become shareholders of................................. 602b. 602e, 602f
Net earnings of, apportionment of........................................................................ 607
Notes of (see Federal reserve notes)............................................................ 604b, 611d
Notes of State and political subdivisions thereof dealt in............................... 614
Officers and employees........................................................................................... 604b
Officers of, may be removed or suspended......................................................... 611f
Open-market operations......................................................................................... 614
Organization of..................................................................................... 602a, 604a, 604h
Official announcement of, by Secretary of Treasury................................ 619
Powers of.................................................................................................. .604b, 613-614

282

INDEX TO FEDERAL RESERVE ACT.

Federal reserve banks— Continued.
Paragraph.
Purchase of United States bonds from member banks..................................... 618a
Redemption fund................................................................................ 616c-616d, 616f
Rediscount—
Of acceptances.................................................................................................. 613b
Of bills receivable............................................................................................ 613a
Of notes, drafts, and bills of exchange......................................................... 613a
Of paper of other Federal reserve banks...................................................... 611b
Recommendations by council........................................................................ 612a
Regulations by board............................................................................ 611b, 613c
Refunding United States bonds held by member banks.......................... 618-618b
Reorganization of...................................................................................................... 611h
Reserve required to be held with—
By banks elsewhere than in reserve cities................................................. 619a
By central reserve cities.................................................................................. 619c
By reserve city banks..................................................................................... 619b
Reserve requirements for Federal reserve notes...................................... 616b, 616d
May be suspended by board.......................................................................... 611c
Tax on deficiency in........................................................................................ 611c
Reserve, withdrawal of, by member banks........................................................ 619e
Reserves—
Against deposits................................................................................................ 616b
Against Federal reserve notes.............................................................. 616b. 616d
Of member banks...................................................................................... 619-619g
Revenue bonds of State and political subdivisions, dealt in.......................... 614
Safeguarding bonds, notes, collateral, funds, etc............................................... 611i
Salaries and expenses of board paid by..................................................... 610b, 611e
Seal, corporate.......................................................................................................... 604b
Senators, Representatives, prohibited from being directors of....................... 604d
Special examinations of member banks may be ordered by........................... 621b
State banks may become members............ .................................................. 609-609(1
State bills, notes, bonds, and warrants dealt in................................................. 614
Statement of condition to be published weekly by board............................... 611a
Stockholders of, responsibility and liability of........................................ 602d, 606
Stock of. (See Capital stock.)
Succession of............................................................................................................. 604b
Suits, by or against.................................................................................................. 604b
Supervision of, by board.............................................................................. 611a-611j
Surplus funds............................................................................................................ 607
Suspension of............................................................................................................ 611 h
Taxes, free from, except on real estate................................................................ 607a
Transfer of funds among, and charges therefor................................................... 616k
United States bonds—
. Dealt in.............................................................................................................. 614
Hypothecated for gold loans.......................................................................... 614
United States bonds of member banks purchased by............................. 618a, 618b
United States deposits.......................................................................................613, 615
Warrants of State and political subdivisions thereof dealt in......................... 614
Worthless assets to be written off.......................................................................... 611g
Federal Reserve Board:
Admission of banks other than national...................................................... 609-609d
Annual report of....................................................................................................... 610g
Application for Federal reserve notes may be granted or rejected b y ............ 616e
Approval of, required for issue of bonds in exchange for 1-year gold notes... 618c
Authorized to review decisions of Reserve Bank Organization Committee. 602
Chairman of............................................................................................................... 610c
Class C directors designated by................................................................... 604d, 604f
Clearing house—
For reserve banks, designation by................................................................. 6161
For member banks, designation by.............................................................. 6161
Creation of..................................................................................................................610
Directors of Federal reserve banks may be suspended or removed b y ......... 611f
Discounts by Federal reserve banks, character to be determined b y ...........613a
Discount rates subject to approval of...................................................................614
Doubtful or worthless assets of Federal reserve banks to be ordered written
off books of Federal reserve banks.................................................................... 611g

INDEX TO FEDERAL RESERVE ACT.

283

Federal Reserve Board— Continued.
Paragraph.
Employees of, not in classified service................................................................ 6111
Examinations of Federal reserve banks and member banks........................... 611a
Examinations ordered by............................................................................... 621-621c
Examiners ’ salary fixed by................................................................................... 621a
Expenses of, how paid................................................................................. 610b, 01 le
Extension of discounts etc., by directors, subject to orders of....................... 604c
Federal advisory council, expenses to be approved by................................... 012
Federal reserve banks may be required to purchase United States bonds
by.................................................................................................................. 618a, 618b
Federal reserve notes issued under the supervision of..................................... 610h
Federal reserve notes issued and retirement regulated by.............................. 61 Id
Foreign branches of national banks..................................................................... 625
Foreign business to be approved by.................................................................... 614
Governor of............................................................................................................... 610a
Information concerning Federal reserve banks to be furnished to, by Fed
eral reserve agent..........................................................................'..................... 621b
Issue of Federal reserve notes regulated by.................................................. 616, 616a
Interest on rediscounts to be fixed by................................................................. 611b
Making farm loans................................................................................................... 624
Meetings of............................................................................................................... 610c
Members of................................................................................................................ 610
Conditions precedent on......................................................................... 610, 610d
Oath of office............................................................................................. 610, 610d
Qualifications of............................................................................................... 610a
Removal of, by President.............................................................................. 610
Restriction on, during and after term of office................................... 6 J0, 610d
Salaries of.......................................................................................................... 610
Term of.............................................................................................................. 610
National banks to act as trustee, etc., by permission of.................................. 611k
Offices........................................................................................................................ 610a
Open-market operation operated by.................................................................... 614
Permission for member banks to secure discounts for nonmember banks
may be granted by.............................................................................................. 619d
Powers of........................................................................................................... 611-61 le
Powers secondary to those of Secretary of Treasury, when............................. 610f
Power to add to list of cities prohibited from making farm loans..................624
Purchase of United States bonds by Federal reserve banks on order of........... 618a
Redemption fund for Federal reserve notes to be required by...................... 616d
Rediscounting of paper of Federal reserve banks by other Federal reserve
banks..................................................................................................................... 611b
Report of, to House of Representatives................................................................ 610g
Safeguarding assets of Federal reserve banks by................................................ 611 i
Special examination of member banks to be approved by................................. 621b
Substitution of collateral for Federal reserve notes to be regulated by............ 616g
Suits against national banks not complying with terms of this act................... 602f
Suspension of reserve requirements by................................................................. 61 lc
Transfer of public stock in Federal reserve banks to be regulated by............. 602k
Vacancies.................................................................................................................. 610e
Vice governor...................................... .................................................................... 610a
Violations of act, of Federal reserve banks, duty of............................................. 61 Ih
Federal reserve cities.............................................................................................. 602, 604
Federal reserve banks therein.............................................................................. 602a
Federal reserve districts......................................................................................... 602, 004
Designation by number.......................................................................................... 602
Farm land loans confined to.................................................................................. 624
How apportioned..................................................................................................... 602
Increase in number of............................................................................................ 602
Readjustment of...................................................................................................... 602
Federal reserve notes (obligations of United States):
Acceptable for.......................................................................................................... 616
Application for..................................................................................... 611b, 616a, 616e
Authorization of....................................................................................................... 616
Cancellation and destruction of............................................................................ 616c
Character of..................................................................................................... 616c, 616h
Collateral for.......................................................................... .................................. 616a
Cost of making, etc......................................................................................... 616h, 616i

284

INDEX TO FEDERAL RESERVE ACT.

Federal reserve notes (obligations of United States)— Continued.
Paragraph.
Daily report of issue and withdrawal of................................................................ 616a
Denominations of..................................................................................................... 616h
Deposit by bank of issue with Federal reserve agent.......................................616f
Description of................................................................................................. 616c, 616h
Destruction of........................................................................................................... 616c
Examination of plates, dies, etc............................................................................ 616h
Expense for making, issue, and redemption paid by Federal reserve
banks............................................................................................................ 616h, 616i
Form of...................................................................................................................... 616h
Held for distribution, where.................................................................................. 616h
Identification marks on................................................................................. 616c, 616h
Interest paid to United States on account of..................................................... 616e
Issue and retirement of, regulated by board............................................ 611d, 616
Liability for, may be reduced............................................................................... 616f
Lien on assets........................................................................................................... 616e
Paper for..........: ........................................................................................................ 616i
Penalty for paying out, by Federal reserve bank, other than bank of issue.. 616c
Plates, dies, paper, etc..................................................................................616h, 616i
Printing of....................................................................................................... 616h, 616i
Purpose of.................................................................................................................. 616
Receivable for.......................................................................................................... 616
Received by Federal reserve bank other than bank of issue.............................. 616c
Recommendations concerning, by council.......................................................... 612a
Redeemed in gold on demand................................................................................ 616
Redemption fund................................................................................. 616c, 616d, 616f
Redemption of......................................................................................... 616, 616c, 616f
Reduction of, liability for...................................................................................... 616f
Reissue of notes deposited with Federal reserve agent.................................... 616f
Reserves against............................................................................................ 616b, 616d
Return to bank of issue........................................................................................... 616c
Securities for................................................................................................... 616a, 616b
Substitution of collateral for.................................................................................. 616g
Supervision of........................................................................................................... 611d
Federal reserve notes (circulating, obligations of Federal reserve banks)............... 604b
For United States bonds purchased of member banks by Federal reserve
banks............................................................................................................ 604b, 618b
For United States bonds with circulation privilege against which no cir
culation is outstanding.............................................................................. 604b, 618b
Issued and redeemed as national-bank notes........................................... 604b, 618b
Fiscal agent of United States:
Federal reserve banks a s........................................................................................ 615
In foreign countries, dependencies....................................................................... 625
Five per cent redemption fund not counted as reserve........................................... 620
Foreign acceptances........................................................................................................ 614
Foreign agencies of Federal reserve banks................................................................... 614
Foreign branches of national banks.............................................................................. 625
Foreign correspondents................................................................................................... 614
Forfeiture of charter by national banks for not accepting terms of this act......... 602f
Franchise tax on Federal reserve banks..................................................................... 607

INDEX TO FEDERAL EESERVE ACT.

285

Paragraph

General fund of United States may be deposited in Federal reserve banks----- 615
General fund of United States Treasury may be deposited in Federal reserve
banks.............................................................................................................................. 615
General repealing clause................................................................................................ 626
General supervision of Federal reserve banks by board.......................................... 611j
Gold bonds, 30-year 3 per cent, without circulation privilege............................. 618c
Under same conditions as United States 3 per cent without circulation
privilege now issued............................................................................................ 618c
Gold deposits for reduction of Federal reserve notes............................................... 616f
Gold loans by Federal reserve banks.......................................................................... 614
Gold notes, 3 per cent, 1 year, without circulation privilege............................... 618c
Exempt from taxes.................................................................................................. 618c
May be exchanged for 30-year 3 per cent gold bonds............................ 018c, 618d
Gold, purchase and sale of, by Federal reserve banks..................................... 612a, 614
Gold, redemption fund for Federal reserve notes to be in...................................... 616d
Gold reserve required for Federal reserve notes....................................................... 616b
Government deposits.............................................................................................. 613, 615
Government funds to be deposited, where................................................................. 615
Governor of Federal Reserve Board............................................................................ 610a
Granting of application for Federal reserve notes..................................................... 616e
Gratuities to bank examiners prohibited...............................................................
622a

Paragraph.

Hawaii, reserve requirements, etc., for national banks in...................................... 619g
House of Representatives, annual report of Federal Reserve Board to.................61Og
Hypothecation:
Of Federal reserve bank stock by member banks prohibited....................... 605a
Of United States bonds by Federal reserve banks for gold loans...................614

286

INDEX TO FEDERAL RESERVE ACT.

Paragraph.

Imports, acceptances on, eligible as discounts by Federal reserve and member
banks.............................................................................................................................. 613b
Incidental powers necessary to comply with this act............................................... 604b
Income from Federal reserve bank exempt from taxation...................................... 607a
Increase of capital of Federal reserve banks...................................................... 605-605d
Individual liability of shareholders............................................................................. 602d
Individual liability of stockholders of national banks............................................. 623
Information concerning member banks to be furnished Federal Reserve Board
by Federal reserve agent............................................................................................ 621b
Information, examiners not to disclose....................................................................... 622b
Insolvent member banks................................................................................................ 606
Interest rate for rediscount fixed by board.........................................................611b, 613c
Interest rate increased by tax on deficiency in reserve requirements.................. 611c
Interest rates on Federal reserve notes........................................................................ 616e
Invalidating clause.......................................................................................................... 629
Investment securities not eligible for discount by Federal reserve banks.......... 613a
Irrigation bonds, etc., dealt in by Federal reserve banks....................................... 614
Issue of circulating notes by Federal reserve banks................................................. 618b
Issue of Federal reserve notes............................................................................... 616, 616a
Issue of gold notes of United States in exchange for certain United States bond®. 618d

INDEX TO FEDERAL RESERVE ACT.

287

L.
Paragraph.

Lawful money deposits for reduction of liability for Federal reserve notes........ 616b
Liabilities, rights and powers of State banks when member banks..................... 609g
Liabilities incurred under the provisions of this act................................................ 613c
Liabilities of national banks......................................................................................... 613c
Liability for Federal reserve notes, reduction of...................................................... 616f
Liability of director of national banks violating this act......................................... 602f
Liability of stockholders:
Of Federal reserve banks................................................................................ 602d, 606
Of national banks.................................................................................................... 623
Lien on assets amount of Federal reserve notes first................................................ 616e
Limitations, none on amount of Federal reserve bank notes................................. 604b
Limit not placed on amount of Federal reserve bank circulating notes.............. 618b
Limit to amount of acceptance on imports and exports.......................................... 613b
By Federal reserve banks...................................................................................... 613b
By member banks................................................................................................... 613b
Limit to amount of gold notes issuable to Federal reserve banks.......................... 618c
Limit to amount of public stock in Federal reserve bank held by one individual,
etc.................................................................................................................................. 602h
Limit to amount of United States bonds that Federal reserve banks may pur
chase from member banks......................................................................................... 618a
Limit to maturity of discounts by Federal reserve banks...............................613a, 613b
Liquidating of member banks...................................................................................... 605e
Liquidating of Federal reserve banks................................................................. 607, 611h
Loans of gold by Federal reserve banks..................................................................... 614
Loans on farm lands....................................................................................................... 624
Loans prohibited when reserve is short...................................................................... (ilQe
Loans to bank examiners prohibited........................................................................... 022a
Loan, no officer, director, or employee to receive a commission for any loan... 622c

288

INDEX TO FEDERAL RESERVE ACT.

M.
Paragraph.
Manager branch Federal reserve banks....................................................................... 603
Market operations open.................................................................................................. 614
Maturity of discounts of Federal reserve banks limited.................................. 613a, 613b
Maximum amount of public stock in Federal reserve bank held by one indi
vidual, etc..................................................................................................................... 602h
Meetings of Federal reserve council............................................................................. 612
Member banks (see also National banks)........................................... 601, 602b, 608, 609
Acceptance rediscounted by Federal reserve bank........................................... 613b
Acting as agent for nonmember banks, restrictions.......................................... 619d
Alaska.................................................................................................................. 602, 619g
Application for membership as, after organization of Federal reserve bank 605c
Balances in Federal reserve banks, considered as reserve............................... 619f
Bills of exchange—
Acceptable......................................................................................................... 613b
Rediscounted by Federal reserve banks........................................... 613a, 613b
Sold to Federal reserve banks........................................................................ 614
Capital, amount required of State bank to become member bank.............. 609f
Collection charges.................................................................................................... 618a
Depositories of United State.................................................................................. 615
Deposits in Federal reserve bank......................................................................... 613
Deposits, reserves against............................................................................... 619-619b
Deposits with nonmember bank........................................................................... 619d
Directors not to accept fees for loans.................................................................. 622c
Dividends are not to De paid when reserves are below requirements.......... 619e
Drafts—
Acceptable....................................................................................................... 613b
Rediscounted by Federal reserve banks............................................. 613a, 613b
Examiners................................................................................................................. 621
Examinations of....................................................................................................... 621b
Examinations of Federal reserve banks on request of 10 member banks___ 621c
Exchange charges.................................................................................................... 616k
Hypothecation of stock of Federal reserve banks prohibited......................... 605a
Individual liability of............................................................................................. 602d
Insolvency of............................................................................................................ 606
Insurance agent, when may act as....................................................................... 613c
Limit to deposits that may be kept with nonrnember banks..........................619d
Liquidation of.................................................... ..................................................... 605e
Loans and gratuities to bank examiners prohibited ......................................... 622a
Loans may not be made when reserves are below requirements.................... 619e
Loans on real estate..... .......................................................................................... 624
National banks (see National banks).......................................................... 602c-602f
608
Notes rediscounted by Federal reserve banks......................................... 613a, 613b
Officers and employees not to accept fees, etc................................................... 622c
Outside continental United States....................................................................... 619g
Prohibited from securing discounts from Federal reserve banks for nonmember banks.................................................................................................... 619d
Provisions for national banks outside continental United States to become.. 6I9g
Real estate, when bank may act as broker in procuring loans on....................613c
Refunding United States bonds securing circulation................................618,618a

INDEX TO FEDERAL RESERVE ACT.

289
Paragraph.

Report of condition by................................................................................................... 609c
Report of earnings and dividends b y .................................................................. 609c
Reserve requirements.............................................................................. 611m, 619-620
Reserve, withdrawal of, from Federal reserve banks....................................... 619e
Reserves............................................................................................................ 619-619f
Against deposits........................................................................................ 619-619f
Balances in Federal reserve banks considered as..................................... 619f
Banks in central reserve cities......................................................................619c
Banks in reserve cities.................................................................................... 619b
Banks not in central reserve or reserve citi es............................................... 619a
Checking against, in Federal reserve banks............................................... 619e
Net balance due to and from other banks considered in estimating........ 619f
State banks as........................................................................................................... 609
Withdrawal from Federal reserve bank...................................................... 609e
Deposits with nonmember banks.................................................................. 619d
Examinations of...............................................................................................621
Member banks, rights, powers, and liabilities o f..................................... 609g
Stock in Federal reserve banks................................................................... 602c, 604
605
Transfer of stock in Federal reserve banks............................................... 602k, 605a
Trust companies as.................................................................................................. 609
Deposits with nonmember banks.................................................................. 619d
Examinations of...............................................................................................621
Withdrawal from Federal reserve bank...................................................... 609e
Trust companies in District of Columbia............................................................ 602b
Members, Federal advisory council............................................................................. 612
Minimum amount of capital of Federal reserve banks............................................ 6021
Mints, Federal reserve notes may be deposited in ...................................................616h
Mortgages on farm lands................................................................................................ 624
Municipal securities dealt in by Federal reserve banks......................................... 614
164312°— 20------ 1'9

290

INDEX TO FEDERAL RESERVE ACT.

N.
National banking associations:
Paragraph.
Defined....................................................................................................................... 601
Examiners of.............................................................................................................. 621
Reserve requirements....... . ..................................................................................... 619
Reserve requirements outside continental United States................................ 619g
National-bank examiners (see also Examiners'):
Prohibited from performing other services for banks, etc................................ 622b
Prohibited from receiving loans or gratuities from member banks.................. 622a
National banks (see also Member banks)..................................................................... 601
Administrators........................................................................................................... 611k
Alaska................................. .............................................................................. 602, 619g
Branches in foreign countries and dependencies............................................... 625
Capital stock—
Decrease of............................................................................................... 605d, 606
628
Increase of................................................................................................ 605a, 605d
Charter bonds no longer required.......................................................................... 617
Circulation—
Act of May 30, 1908, extended....................................................................... 627
Retirement of.................................................................................................... 618
Tax rate for certain circulating notes changed........................................... 627a
Commencing business, provisions for deposit of United States bonds with
Treasury repealed................................................................................................. 617
Dependencies............................................................................................................ 619g
Deposits, time, and interest thereon.................................................................... 624
Directors’ liability.................................................................................................... 602f
Dissolution for failure to enter system................................................................. 602f
Executors................................................................................................................... 611k
Foreign branches...................................................................................................... 625
Hypothecation of stock in Federal reserve banks............................................. 605a
Liability of.................................................................................................................613c
Loans on farm lands................................................................................................. 624
Mortgages on farm lands....................................... .................................................. 624
Must become member banks............................... ........................................ 602b, 602e
Notes of—
Liability for cost of, unaffected..................................................................... 616i
May be retired........................................................................................... 618,618a
Other banks may become....................................................................................... 608
Outside continental United States....................................................................... 619g
Penalty for failure to enter system............................................................. 602e, 602?
Philippine Islands.................................................................................................... 619g
Redemption fund for notes not counted as reserve........................................... 620
Refunding bonds.............................................................................................. 618, 618a
Registrar of stocks and bonds................................................................................ 611k
Required to become member banks........................................................... 602b, 602e
602f
Retirement of circulating notes..................................................................... 618, 618a
State banks may convert to.................................................................................... 608
Stock in Federal reserve bank..................................................................... 602c, 604
605
Stockholders, responsibility and liability.................................................. 602f, 623
Surplus, increase or decrease of.............................................................................605
Time deposits and interest thereon....................................................................... 624
Transfer of stock in Federal reserve banks............................................... 602k, 605a
Trustees...................................................................................................................... 611k
National currency association........................................................................................ 627

INDEX TO FEDERAL RESERVE ACT.

291

Nonmember banks:
Paragraph.
Alaska........................................................................................................................ 619g
Amount of deposits that may be kept with nonmember banks restricted___ 619d
Deposits with............................................................................................................ 619d
Discounts from Federal reserve banks not allowed through member banks.. 619d
Member banks may not act as agents for, in applying for or receiving dis
counts from Federal reserve banks............................ ...................................... 619d
Outside continental United States....................................................................... 619g
Nonmember national banks, reserve requirements................................................... 619g
Notes:
Federal reserve. (See Federal reserve notes.)
Of State or political subdivisions thereof dealt in by Federal reserve banks. 614
Rediscounted by Federal reserve banks.................................................... 613a, 613b
Treasury, 1-year 3 per cent, coupon or registered............................................. 618c
Exempt from taxes........................................................................................... 618c
May be changed for 30-year 3 per cent gold bonds......................... 618c, 618d
Number of examinations to be made.......................................................................... 621
Number of Federal reserve cities.................................................................................. 602

292

INDEX TO FEDERAL RESERVE ACT.

o.
Paragraph.

Obligation of Federal reserve banks to purchase gold notes...................................
Obligations of Federal reserve banks, circulating notes are....................................
Obligations of United States, Federal reserve notes.................................................
Officers and employees of Federal reserve banks......................................................
Officers not to receive fee or other consideration for loan....................- ...............
Officers, rate of interest paid on deposits................................................. - ...............
Officers of Federal reserve banks, suspension or removal of....................................
Open-market operations.............. ...................................................................................
Recommendations by council................................................................................
Organization certificate of Federal reserve banks.....................................................
Organization committee. (See Reserve Bank Organization Committee.)
Other reserve cities. (See Reserve cities.)

618c
618b
616
604b
622c
622e
611f
614
612a
604a

INDEX TO FEDERAL EESERVE ACT.

293

P.
Paragraph.

Panama, reserve requirements, etc., for national banks in................................. 619g
Paper for Federal reserve notes................................................................................... 6 I 61
Parity maintained.......................................................................................................... 626
Par, when checks and drafts receivable by Federal reserve banks at................ 616j
Payment of expenses of organization committee.................................................... 602n
Payments of capital stock subscriptions.................................................................... 602c
Penalties:
Acceptance of fees, etc., by directors, officers, and employees of member
banks...................................................................................................................... 622c
Divulging information by bank examiners........................................................ 622b
Failure to make report................................................................................. 609c, 609d
Gratuities to bank examiners................................. .............................................. 622a
Loans to bank examiners....................................................................................... 622a
Member banks not national banks for failure to comply with conditions,
etc................................................................................................................ 609c, 609d
National banks failing to comply with provisions of this act.............. 602e, 602f
Paying out Federal reserve notes by Federal reserve banks other than bank
of issue.................................................................................................................. 616c
Reserve shortage..................................................................................................... 619e
Violation of section 22 , Federal reserve act...................................................... 622f
Violations of act by Federal reserve banks...................................................... 61 lh
Period for which Federal reserve bank charter is issued....................................... 604b
Philippine Islands:
Bank in, may not become member bank.......................................................... 619g
Public funds in United States to be deposited in member banks................615
Reserve requirements for national banks in.................................................... 619g
Plates, dies, etc., for Federal reserve notes.............................................................. 616h
Political subdivisions, bonds, etc., dealt in by Federal reserve banks..............614
Porto Rico, reserve requirements, etc., for national banks in............................. 619g
Postal savings funds to be deposited in member banks ....................................... 615
Powers of:
Examiners................................................................................................................ 621
Federal advisory council....................................................................................... 612a
Federal reserve banks.......................................................................... 604b, 613-614
Federal Reserve Board................................................................................. 611-6111
Not to conflict with those of Secretary of Treasury................................. 61Of
Reserve Bank Organization Committee............................................................ 602
State bank as member bank................................................................................. 609g
President may place Federal Reserve Board employees under civil service... 6111
President of United States, members of Federal Reserve Board appointed
b y .......................................................................................................................... 610, 610e
Printing Federal reserve notes................................................................................... 616h
Prohibitions:
Central reserve city banks from making farm loans....................................... 624
Gratuities and loans to bank examiners............................................................ 622a
Member banks limited in amount of deposits with and forbidden to secure
discounts from Federal reserve banks for nonmember banks.................... 619d
Members of Federal Reserve Board, Assistant Secretary of Treasury, and
Comptroller of Currency not to hold office in any member bank... 610, 610d
National-bank examiners not to perform other services for banks, etc___ 622b
Officers and employees, from receiving fee for loan....................................... 622c
Public funds of Philippine Islands, postal savings, or any Government
funds not to be deposited in any bank other than member bank............ 615
Reserve shortage.................................................................................................... 619e
Restrictions as to visitatorial powers.................................................................. 621b
Senators and Representatives not allowed to be members of Federal Re
serve Board or director of Federal reserve bank.......................................... 604d
Transacting business by Federal reserve bank until authorized by Comp
troller......................................................................................... .......................... 604b

294

INDEX TO FEDERAL RESERVE ACT.
Paragraph.

Profits^ undivided, limit to liability of national bank not to include.................. 613c
Provisions for national banks outside continental United States to become
member banks.............................................................................................................. 619g
Public dues, Federal reserve notes receivable for..................................................... 616
Public Federal reserve bank stock............................................................................... 602e
Amount of, limited to any one individual or corporation............................... 602h
Liability of holders of................................................................................... 602d, 602g
Par value of..................................................................................................... 602g, 605
Payment for..................................................................................................... 602c, 602g
Tax free...................................................................................................................... 607a
Transfer of................................................................................................................. 602h
Voting power, none.................................................................................................. 602j
Purchase of:
Bills of exchange from member banks................................................................. 614
Gold notes by Federal reserve banks................................................................... 618c
United States bonds by Federal reserve banks.............................................
618a

Paragraph.

Qualification of examiners............................................................................................. 621

INDEX TO FEDERAL RESERVE ACT.

295

R.
Paragraph.

Rate of taxation on “ additional currency” ............................................................... 627a
Rates of discount......................................................................................... 611b, 611c, 614
Rates of interest on Federal reserve notes.................................................................. 616e
Real estate loans.............................................................................................................. 624
Reclamation bonds, etc., dealt in by Federal reserve bank................................... 614
Redemption fund:
In United States Treasury for Federal reserve note 3.................... 616c, 616d, 616f
Not counted as reserve (5 per cent, of national banks).................................... 620
Of Federal reserve notes......................................................................................... 618b
Redemption of Federal reserve bank circulating notes........................................... 618 b
Rediscount by Federal reserve banks:
Acceptances.............................................................................................................. 613b
Bills of exchange..................................................................................................... 613a
Bills receivable........................................................................................................ 613a
Drafts......................................................................................................................... 613a
Notes.......................................................................................................................... 613a
Paper discounted by other Federal reserve banks.......................................... 611b
Paper, rediscounted, as collateral for Federal reserve notes........................... 616a
Recommendations by council............................................................................... 612a
Regulations by board................................................................................... 611b, 613c
Reduction:
Of capital of Federal reserve bank..................................................... 605, 605d, 606
Of liability for Federal reserve notes................................................................. 616f
Refunding bonds..................................................................................................... 618-618c
Registrar of stock and bonds, national bank as......................................................... 611k
Regulations:
For Federal reserve notes...................................................................................... 611d
For transfer of funds and charges therefor among Federal reserve banks___ 616k
For transfer of public stock in Federal reserve banks...................................... 602k
To be prescribed by organization committee..................................................... 602b
Reissue of Federal reserve notes deposited with Federal reserve agent..............616f
Rejection of application for Federal reserve notes................................................... 616e
Removal or suspension of officer or director of Federal reserve bank................. 61 If
Reorganization of Federal reserve banks................................................................... 611 h
Repealing clause, general.............................................................................................. 626
Report of board to House of Representatives............................................................ 610g
Report of condition by Federal reserve banks, weekly............................... *......... 611a
Report of condition by member banks....................................................................... 609c
Report of earnings and dividends by member banks.............................................. 609^
Reports:
Of examination........................................................................................................ 621
Of foreign branches of national banks................................................................. 625
Representatives not allowed to become members of Federal Reserve Board or
directors of Federal reserve banks........................................................................... 604d
Requiring national banks to become member banks............................................... 602b
Reserve banks held to mean Federal reserve banks................................................ 601
Reserve bank organization committee........................................................................ 602
Admission of banks other than national banks.......................................... 609,609a
Allots stock of Federal reserve banks to United States................................... 602i
Appropriation for expenses of.............................................................................. 602n
Certificates showing districts to be filed with Comptroller..............................604
Designates Federal reserve cities and districts.......................................... 602, 602a
Exercises powers of chairman of Federal Reserve Board until such is
appointed........................................................................................ 604d, 604e, 604h
General powers of.......................................................................................... 602a, 602n
How constituted...................................................................................................... 602
Majority a quorum................................................................................................... 602
Offers stock of Federal reserve bank to public.................................................. 602g
Organizes each Federal reserve bank.................................................................. 602a

296

INDEX TO FEDERAL RESERVE ACT.
Paragraph.

Reserve cities.................................................................................................................... 602m
Cash reserve required.............................................................................................. 619b
Distribution of reserve............................................................................................ 619b
Federal Reserve Board to control......................................................................... 61 le
Number may be increased or decreased.............................................................. 611e
Reserve requirements..............................................................................................619b
Reserve that may be held with, by banks elsewhere than in reserve cities. 619a
Reserve districts. (See Federal reserve districts.)
Reserve requirements of Federal reserve banks *
Against deposits........................................................................................................ 616b
Against Federal reserve notes...................................................................... 616b, 616d
Suspension of, by board.......................................................................................... 611c
Tax on deficiency in................................................................................................ 611c
Reserve requirements of member banks............................................................... 619-619f
Banks in central reserve cities.............................................................................. 619c
Banks in reserve cities............................................................................................ 619b
Banks not in central reserve or reserve cities.................................................... 619a
Country banks.......................................................................................................... 619a
Central reserve cities.................................................. ............................................ 619c
Estimate of................................................................................................................ 619f
Redemption fund not counted as reserve........................................................... 620
Recommendations by council................................................................................612a
Reserve cities other than central........................... .............................................. 619b
To be held with Federal reserve banks............................................................... 619d
When effective.......................................................................................................... 619
Reserve:
That may be held with member banks..................................................... 619a, 619b
Withdrawal of, from Federal reserve banks......... .............................................. 619e
Reserves, tax on deficiency in......................................................................................611c
Increase rates of interest and discount................................................................ 611c
Restriction, visitatorial powers limited....................................................................... 621b
Retirement of:
Federal reserve notes............................................................................................... 611d
National-bank notes......................................................................................... 618, 618a
Revenue bonds of State or political subdivisions thereof dealt in by Federal
reserve banks................................................................................................................ 614
Rights of State bank when member bank.................................................................. 609f

INDEX TO FEDERAL RESERVE ACT.

297

Paragraph.
Safeguarding assets of Federal reserve banks.............................................................611i
Salaries:
Of examiners............................................................................................................. 621a
Of Federal Reserve Board employees.................................................................. 6111
Of members of Federal Reserve Board................................................................610
Salary:
Director Federal reserve bank.............................................................................. 604g
Federal reserve agent.............................................................................................. 604f
Savings accounts as time deposits............................................................................... 619
Seal of Federal reserve bank......................................................................................... 604b
Secretary of Agriculture, member of Reserve Bank Organization Committee... 602
Secretary of Treasury:
Amount of redemption fund for Federal reserve notes determined by ........ 616d
Assistant, restrictions on, subject to term.......................................................... 610
Circulating notes of Federal reserve banks, form to be prescribed by..........618b
Chairman of Federal Reserve Board....................................................................610c
Deposit of Government funds upon direction of............................................. 615
Deposit of gold coin or certificates to be received when tendered by Fed
eral reserve bank or agent..................................................................................616m
Earnings from Federal reserve banks to be used under regulations pre
scribed by.............................................................................................................. 607
Examiners’ appointment to be approved by.................................................... 621
Gold notes and bonds issued in exchange for certain United States bonds
b y ..................................................................................................................618c, 618d
Maintaining of parity.............................................................................................. 626
Member of Federal Reserve Board....................................................................... 610
Member of Reserve Bank Organization Committee.......................................... 602
Payment of expenses of Organization Committee to be approved by........... 602n
Plates, dies, etc., for Federal reserve notes engraved by direction of.......... 616h
Powers heretofore vested in, unchanged.............................. ■............................. 610f
Redemption fund for Federal reserve notes controlled b y ..............................616c
Redemption fund required by.............................................................................. 615
Strengthening gold reserves...................................................................................626
Section 5154, United States Revised Statutes, amended........................................ 608
Section 5202, United States Revised Statutes, amended........................................ 613c
Securities:
Dealt in by Federal reserve banks....................................................................... 614
Purchase and sale of, recommended by council............................................... 612a
Security:
For Federal reserve notes............................................................................. 616a, 616b
For gold transactions............................................................................................... 614
Senate, members of Federal Reserve Board to be confirmed by........................... 610
Senators and Representatives not allowed to be members of Federal Reserve
Board or officers or directors of Federal reserve banks....................................... 604d
Shareholders of Federal reserve banks, liability of........................................ 602d, 606
Short title, 4‘ Federal Reserve Act” ............................................................................ 600
Special examination of foreign branches of national banks................................... 625
State banks as member banks....................................................................... 601, 609, 609d
Amount capital required to become member bank......................................... 609f
Deposits with nonmember banks......................................................................... 619d
Examinations of....................................................................................................... 621
Requirements precedent........................................................................................ 609a
Requirements subsequent........................................................................... 609b, 609c
Withdrawal from membership in Federal reserve bank................................. 609e
Subscription to stock...................................................................................................... 609
Surrender of privileges........................................................................................... 609d

298

INDEX TO FEDERAL RESERVE ACT.

Paragraph.
State banks may become national banks.................................................................... 608
State revenue bonds, warrants, etc., dealt in by Federal reserve banks............. 614
Statement of condition of Federal reserve banks, weekly....................................... 611a
Strengthening gold reserves of the United States...................................................... 626
Stock of Federal reserve banks. (See Capital stock.)
Stockholders of Federal reserve banks, liability of........................................ 602d, 606
Stockholders of national banks, responsibility and liability of..................... 602f, 623
Subscription to capital stock of Federal reserve banks:
After organization of Federal reserve banks....................................................... 605b
By banks.......................................................................................................... 602c, 604
By public................................................................................................................... 602g
By State banks.......................................................................................... 604, 609, 609a
By trust companies.................................................................................. 604, 609, 609a
By trust companies in the District of Columbia...................................... 602c, 604
By United States...................................................................................................... 602i
Substitution of collateral for Federal reserve notes.................................................. 616g
Sub treasury, Federal reserve notes may be deposited in....................................... 616h
Succession of Federal reserve banks............................................................................ 604b
Suits against national banks not complying with terms of this act....................... 602f
Suits by or against Federal reserve banks.................................................................. 604b
Supervision of:
- Federal reserve banks by board............................................................................ 611j
Federal reserve notes............................................................................................... 611d
Surplus funds of Federal reserve banks....................................................................... 607
Free from taxation................................................................................................... 607a
On dissolution or liquidation................................................................................. 607
Suspension:
Of Federal reserve banks........................................................................................ 611h
Of reserve requirements by Federal Reserve Board......................................... 611c
Or removal of officers or directors of Federal reserve banks............................611f

INDEX TO FEDERAL RESERVE ACT.

299

T.
Taxes:
Paragraph.
Federal reserve banks free from, except on real estate.................................... 607a
Federal reserve notes receivable for..................................................................... 616
For paying out Federal reserve notes by bank other than bank of issue___ 616c
Franchise, on Federal reserve banks................................................................... 607
Gold notes, 1 year, 3 per cent, without circulation privilege, free from___ 618c
Income on capital stock and surplus of Federal reserve banks free from.. . 607a
On deficiency in reserve requirements................................................................ 611c
Rates of, for certain circulating notes of national banks, changed................ 627a
Term of office for directors of Federal reserve banks....................................... 604d, 604i
Time deposits defined.................................................................................................... 619
Time deposits in national banks.................................................................................. 624
Title “ Federal reserve act” .......................................................................................... COO
Transfer of Federal reserve stock............................................................. 602h, 602k, 605a
Transfer of national bank stock, effect of, on liability of stockholder.................. 623
Treasurer of United States:
Application to, for retirement of circulating notes by member banks.. 618, 618a
Expenses of organization committee payable by.............................................. 602n
Federal reserve notes received by........................................................................ 616c
Quarterly report to Federal Reserve Board of applications to sell bonds.. . 618a
Treasury Department:
Federal reserve notes redeemable at.................................................................... 616
Federal reserve notes may be deposited in........................................................ 616h
Treasury gold notes issuable to Federal reserve banks in exchange for certain
United States bonds........................................................................................ 618c, 618d
Trust companies:
As member banks. (See State banks as member banks)....... 601, 602b, 608, 609d
In District of Columbia.......................................................................................... 602b
(Member) examinations.......................................................................................... 621
Withdrawal from membership in Federal reserve bank................................. 609e
Trustees, national banks as........................................................................................... 611k

300

INDEX TO FEDERAL RESERVE ACT.

u.
United States:
Paragraph.
Applications to sell bonds...................................................................................... 618
Deposits in banks..................................................................................................... 615
Earnings of Federal reserve banks accruing to.................................................. 607
Federal reserve notes, obligations of.................................................................... 616
Treasurer, quarterly report to Federal reserve bank of.................................... 618a
United States bonds (see also Bonds, United States):
Charter requirements for national banks repealed............................................ 617
Dealings in, by Federal reserve banks.................................................. ............. 614
Discount by Federal reserve bank of paper secured by United States bonds
issued since April 24,1917.................................................................................. 611m
Hypothecation of, for gold by Federal reserve banks..................................... 614
Refunding.......................................................................................................... 618-618c
Purchase of, by Federal reserve banks................................................................ 618a
Thirty-year 3 per cent gold, exchanged for 1-year 3 per cent Treasury
notes............................................................................................................. 618c, 618d
Twos exchanged for 1-year 3 per cent gold notes.............................................. 618c
Twos exchanged for 30-year 3 per cent gold bonds........................................... 618c
United States deposits of Government funds..................................................... 613, 615
United States Federal reserve bank stock.................................................................. 602i
Unpaid dividends, limit to liability of national banks not to include............... 613c
Undivided profits, limit to liability of national banks not to include..................613c

INDEX TO FEDERAL RESERVE ACT.

301

V.
Paragraph.

Vacancies in membership of Federal Reserve Board............................................... 610e
Vice governor of Federal Reserve Board.................................................................... 610a
Violation of provisions of act................................................................................ 602f, 609d
Visitatorial powers over banks restricted.................................................................... 621b
Vote required to convert State bank to a national bank......................................... 608
Voting power of Federal reserve bank stock..................................................... 602j, 604e

W.
Warrants of State or political subdivisions thereof dealt in by Federal reserve
banks..............................................................................................................................614
Weekly statement of condition by Federal reserve banks................................. 611a
Withdrawal from membership in Federal reserve bank by State bank or trust
company...................................................................................................................... 609e
Withdrawal of:
Collateral for Federal reserve notes......................................................................616g
Of reserve from Federal reserve banks................................................................619e
Worthless assets of Federal reserve banks to be written off.................................... 611g

SECTIONS OF REVISED STATUTES.
Section.

3847.
4046.
5133.
5134.
5135.
5136.
5137.
5138.
5139.
5140.
5141.
5142.
5143.
5144.
5145.
5146.
5147.
5148.
5149.
5150.
5151.
5152.
5153.
5154.
5155.
5156.
5157.
5158.
5159.
5160.
5161.
5162.
5163.
5164.
5165.
5166.
5167.
5168.
5169.
5170.
5171.
5172.

Section.

Page.

188
188

20
20

20
21
32
32
32
33
33
34
34,177
34
35
35
40
40
40
40
40
41
42
43,131
44
44
50
50
51,156
51
52
52
53
53
53
53
54
58
59
59
59
61

5173
5174
5175
5176
5177,
5178,
5179,
5180
5181.
5182.
5183.
5184.
5185.
5186.
5187.
5188.
5189.
5190.
5191.
5192.
5193.
5194.
5195.
5196.
5197.
5198.
5199.
5200.
5201.
5202.
5203.
5204.
5205.
5206.
5207.
5208.
5209.
5210.
5211.
5212
5213,
5214,

Section.

61
62
62
62
62
63
63
63
63
63,187
63
64
64
65
65
66
66
70
72
73
80
80
80
80
80
81
81
81
83
83,146
84
84
84
85
85
86

87
90
90
91
92
92

5215.
5216.
5217.
5218.
5219.
5220.
5221.
5222.
5223.
5224.
5225.
5226.
5227.
5228.
5229.
5230.
5231.
5232.
5233.
5234.
5235.
5236.
5237.
5238.
5239.
5240.
5241.
5242.
5243.
5413.
5414.
5415.
5430.
5431.
5432.
5433.
5434.
5437.
5488.
5497.

93
94
94
94
95
99
99

100
100
101
102
102
103
103
104
104
104
105
105
105
106
106
106
107
111
161
113
113
113
191
192
192
192
193
194
194
194
194
191
391