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226

N A T IO N A L

M ONETARY

C O M M IS S IO N .

altered obligation or other security o f the United States,
be fined not more than five thousand dollars and

P u n i s h m e n t shall
ror.

imprisoned not more than fifteen years.
Section 5432, as codified in section 152 o f the Penal
Code o f the United States, March 4, 1909 (35 Stat. L .,
1 1 1 7 ):
T a k i n g imp r e s s i o n s or

Whoever,
7

without authority from the United States,

J

.

ments%nm
ple shall take, procure, or make, upon lead, foil, wax, plaster,
paper, or any other substance or material, an impression,
stamp, or imprint of, from, or by the use o f any bedplate,
bedpiece, die, roll, plate, seal, type, or other tool, imple­
ment, instrument, or thing used or fitted or intended to
be used in printing, stamping or impressing, or in mak­
ing other tools, implements, instruments, or things to be
used or fitted or intended to be used in printing, stamp­
ing, or impressing any kind or description of obligation
or other security o f the United States now authorized
or hereafter to be authorized by the United States, or
circulating note or evidence o f debt o f any banking assoPuniskmentciation under the laws thereof, shall be fined not more

fo r.

.

than five thousand dollars, or imprisoned not more than
H a v i n g unl a w fu l posses-

ten years, or both.
Section 5433, as codified in section 153 o f the Penal
7

s!ons°f im
pres' Code o f the United States, March 4, 1909 (35 Stat. L .,
1 1 1 7 ):
W hoever, with intent to defraud, shall have in his
possession, keeping, custody, or control, without author­
ity

from

the United

States, any imprint, stamp, or

impression, taken or made upon any substance or ma­
terial whatsoever, o f any tool, implement, instrument, or
thing, used or fitted or intended to be used, for any of
the purposes mentioned in the preceding section; or who­
ever, with intent to defraud, shall sell, give, or deliver
P u n is h m e n t

any such imprint, stamp, or impression to any other per­
son, shall be fined not more than five thousand dollars, or
imprisoned not more than ten years, or both.

coimtearfLftg secu rities.




Section 5434, as codified in section 154 o f the Penal
Code o f the United States, March 4, 1909 (35 Stat. L .,
1 1 1 7 ):
W hoever shall buy, sell, exchange, transfer, receive,
or deliver any false, forged, counterfeited, or altered
obligation or other security o f the United States, or
circulating note o f any banking association organized
or acting under the laws thereof, which has been or

LAWS

C O N C E R N IN G

227

F IN A N C E .

may hereafter be issued by virtue o f any A c t of Con­
gress, with the intent that the same be passed, published,
or used as true and genuine, shall be fined not more

P u n is h m e n t
fo r.

than five thousand dollars, or imprisoned not more than
ten years, or both.
F
erson
S ec. 5435. Every person who falsely personates any a tioa lsef ph old er­
n o
true and lawful holder of any share or sum in the public o f p u b l i c

stocks or debt of the United States, or any person entitled
to any annuity, dividend, pension, prize-money, wages, or

stock s.
3 M ar., 1825,
ch. 65, sec. 18,
vol. 4, p. 120.

other debt due from the United States, and, under color
o f such false personation, transfers or endeavors to trans­
fer such public stock or any part thereof, or receives or
endeavors to receive the money o f such true and lawful
holder thereof, or the money o f any person really entitled
to receive such annuity, dividend, pension, prize-money,
wages, or other debt, shall be punished by a fine o f not
more than five thousand dollars, and by imprisonment at
hard labor not more than ten years.

(Am ended, 35

Stat. L ., 1095.)

S ec. 5436. Every person who knowingly or fraudu­

F a lse dem and
o n fra u d u le n t
o f a tt o r ­
ney.

lently demands or endeavors to obtain any share or sum p o w e r
in the public stocks o f the United States, or to have any

Ibid.

part thereof transferred, assigned, sold, or conve}T
ed, or
to have any annuity, dividend, pension, prize-money,
wages, or other debt due from the United States, or any
part thereof, received or paid by virtue o f any false,
forged, or counterfeited power of attorney, authority, or
instrument, shall be punished by a fine o f not more than
five thousand dollars, and by imprisonment at hard labor
not more thasi ten years.

(Am ended, 35 Stat. L ., 1095.)

Section 5437, as codified in section 174 of the Penal
Code o f the United States, March 4, 1909 (35 Stat. L .,

C i r c u la tin g
b ills o f exp ired
banks.

1122):
In all cases where the charter o f any corporation
which has been or may be created by act o f Congress
has expired or may hereafter expire, if any director,
officer, or agent of the corporation, or any trustee thereof,
or any agent o f such trustee, or any person having in
his possession or under his control the property o f the
corporation

for the purpose o f 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




P u n is h m e n t
fo r .

228

N A T IO N A L

M ONETARY

C O M M IS S IO N .

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
o f the corporation, or any trustee thereof, or any agent
o f such trustee, or any person having in his possession
or under his control the property o f the corporation for
the purpose hereinbefore set forth, who has received or
C ir c u la t io n
p erm itted .

may hereafter receive such bill, note, check, draft, or
other security, bona fide and in the ordinary transactions
o f business, to utter as money or otherwise circulate the

S ecretin g or
e m be z z ling
to o ls and m a­
terials for
p r in tin g s e cu ri­
ties.




same.
Section 5453, as codified in section 155 of the Penal
Code o f the United States, March, 4, 1909 (35 Stat. L .,
1 1 1 7 ):
W hoever, without authority from the United States,
shall secrete within, embezzle, or take and carry away
from any building, room, office, apartment, vault, safe,
or other place where the same is kept, used, employed,
placed, lodged, or deposited by authority o f the United
States, any bedpiece, bedplate, roll, plate, die, seal, type,
or other tool, implement, or thing used or fitted to
be used in stamping or printing, or in making some
other tool or implement used or fitted to be used in stamp­
ing or printing, any kind or description o f bond, bill,
note, certificate, coupon, postage stamp, revenue stamp,
fractional currency note,

or other paper, instrument,

obligation, device, or document, now or hereafter author­
ized by law to be printed, stamped, sealed, prepared,
issued, uttered, or put in circulation on behalf o f the
United States; or whoever, without such authority, shall
so secrete, embezzle, or take and carry away any paper,
parchment, or other material prepared and intended to be
used in the making o f any such papers, instruments, obli­
gations, devices, or documents; or whoever, without such
authority, shall so secrete, embezzle, or take and carry
away any paper, parchment, or other material printed or
stamped, in whole or part, and intended to be prepared,
issued, or put in circulation on behalf o f the United
States as one o f the papers, instruments, or obligations
hereinbefore named, or printed or stamped, in whole or
part, in the similitude o f any such paper, instrument, or
obligation, whether intended to issue or put the same in

LAWS

C O N C E R N IN G

229

E IN A N C E .

circulation or not, shall be fined not more than five thou-

Punishment

sand dollars, or imprisoned not more than ten years, or
both.
S ec. 5488. Every disbursing officer of the United States ffi^er
1sbunisiw
ra R
who deposits any public money intrusted to him in any f u i i y d e p o sit.

1

.

,

.

■

I .

■
.

in g , co n v e rtin g ,

place or in anv manner, except as authorized bv law, o r i o a n i n g , or
1
.
r
J
tr a n s fe r r in g
converts to his own use m any way whatever, or loans p u b lic m oney.
~

J

with or without interest, or for any purpose not pre-

14 June, 1866,
ch. 122 , sec.^ 2 ,

scribed by law withdraws from the Treasurer or a n y ™'

’P
’

assistant treasurer, or any authorized depository, or for
any purpose not prescribed by law transfers or applies
any portion o f the public money intrusted to him, is, in
every such act, deemed guilty o f an embezzlement of the
money so deposited, converted, loaned, withdrawn, trans­
ferred, or applied; and shall be punished by imprison­
ment with hard labor for a term not less than one year
nor more than ten years, or by a fine of not more than
the amount embezzled or less than one thousand dollars,
or by both such fine and imprisonment.

(Am ended, 35

Stat, L ., 1105.)
(See sections 3G20, 5497.)
S ec. 5489. I f the Treasurer of the United States, or

Fai l ure of

safely to keep all moneys deposited by any disbursing

T re a su re r etc
to s a f e l y ’ keep
p u b lic m oneys.
3 .Mar., 1857,

officer or disbursing agent, as well as all moneys depos-

voi.

any assistant treasurer, or anv public depositarv, fails

:

.

•

n ,’ p.

249.’

ited by any receiver, collector, or other person having
moneys o f the United States, he shall be deemed guilty
of embezzlement o f the moneys not so safely kept, and
shall be imprisoned not less than six months nor more
than ten years, and fined in a sum equal to the amount
o f money so embezzled.
(See section 3639.)

(Am ended, 35 Stat. L ., 1105.)

S ec. 5490. Every officer or other person charged by

C u sto d ia n s o f

any act o f Congress with the safe-keeping o f the public

fa ilin g to safe-

moneys, who fails to safely keep the same, without loan-

lo a n in g , e t c ^

ing, using, converting to his own use, depositing in banks,

c. 90 , |.” i 6 , v!

or exchanging for other funds than as specially allowed ’ P
'
by law, shall be guilty o f embezzlement o f the money so
loaned, used, converted, deposited, or exchanged; and
shall be imprisoned not less than six months nor more
than ten years, and fined in a sum equal to the amount o f
money so embezzled.

(Am ended, 35 Stat. L ., 1105.)

(See section 3639.)
S ec. 5491. Every officer or agent o f the United States fic^ n" r r^ d fr
t e °e
who, having received public money which he is not a u -ac£°“°t8’




c. 90, s. 16, V.

p. 63.’

230

NATIONAL MONETARY COMMISSION.

1862 < 199 ^s’ thoiizcd to retain as salary, pay, or emolument, fails to
?

1,2 kar P
V
iief* ren(^er his accounts for the same as provided by law, shall
pe
57i48,

Y 14, he deemed guilty of embezzlement, and shall be fined in a
'

1870 C 295,ys !su m e(lual t ° the amount o f the money embezzled, and
J
15, v. id, p. 334. shall be imprisoned not less than six months or more than
F a ilu re

to de-

qU Aug 1846
6

ten years.
(Am ended, 35 Stat. L ., 1095.)
(See sections 3 6 2 2 , 3 6 3 3 .)
S e c . ^4 9 2 . Every person who, having moneys o f the

9 p°63S‘ 16, v‘ United States in his hands or possession, fails to make
c 3ii4ars 185t’ deposit o f the same with the Treasurer, or some assistant
3
n , p. 249.
treasurer, or some public depositary o f the United States,
when required so to do by the Secretary o f the Treasury,
or the head o f any other proper Department, or by the
accounting officers o f the Treasury, shall be deemed guilty
o f embezzlement thereof, and shall be imprisoned not less
than six months nor more than ten years, and fined in a
sum equal to the amount o f money embezzled.

(Amended,

3 5 Stat. L ., 1 1 0 5 .)

r e c e i v i n '^ e t S e c . 5497. Every banker, broker, or other person not
m
ent em
i)ezzle' an authorized depositary o f public moneys, who know1866 c 122 V in&ly receives from any disbursing officer, or collector o f
3, v.’ ii, p. 65. internal revenue, or other agent o f the United States, any

public money on deposit, or by way o f loan or accommo­
dation, wdth or without interest, or otherwise than in pay­
ment o f a debt against the United States, or who uses,
transfers, converts, appropriates, or applies any portion
o f the public money for any purpose not prescribed by
law, and every president, cashier, teller, director, or other
officer o f any bank or banking association, who violates
any o f the provisions o f this section, is guilty o f an act
o f embezzlement o f the public money so deposited, loaned,
transferred, used, converted, appropriated, or applied,
and shall be punished as prescribed in section fifty-four
hundred and eighty-eight.

(Amended, 35 Stat. L ., 1106.)

(See sections 3639, 3651.)
ACTS SUBSEQUENT TO THE REVISED STATUTES.
A C T O F D E C E M B E R 1 7 ,1 8 7 3 .
^is stat. l „ C h a p . I .— A n act to provide for the redemption o f the

loan of eighteen hundred and fifty-eight.
ofRioanmi85°81
^ enacted by the Senate and House o f Representaii' p6^’3 651;tives of the United States of America in Congress assemsetf°6 voi 11’ btedi That for the purpose o f redeeming the bonds issued
p.430!
’ under the act entitled ;A n act to authorize a loan not




LAW S

C O N C E R N IN G

231

F IN A N C E .

exceeding the sum of twenty millions of dollars,’ ap­
proved June fourteenth, eighteen hundred and fifty-eight,
as amended March third, eighteen hundred and fifty-nine,
called the loan o f eighteen hundred and fifty-eight, it is
hereby declared to be the pleasure of the United States to ma°d e°pay°ab1e
pay all the coupon bonds o f said loan on the first day o f ^8_° u a r y
a
January, eighteen hundred and seventy-four, at which c a a1^re® t0
e Is
he 4
date the interest thereon shall cease, and coin in the Appropriation
Treasury sufficient to redeem said coupon bonds is hereby
appropriated for that purpose.
S ec . 2. T hat the Secretary o f the Treasury may issue b0ndle m D e
aye b
an equal amount, at par o f principal and interest, o f five- change for any
per-centum bonds of the funded loan under the act foi'of°g|8of loan
refunding the national debt, approved July fourteenth, vo|870,ch. 256,
eighteen hundred and seventy, and the act amendatory

cii.^23,

thereof, approved January twentieth, eighteen hundred
and seventy-one, for a n y -o f the bonds o f the loan of
eighteen

hundred

and

fifty-eight,

which

the

holders

thereof may on or before February first, eighteen hun­
dred and seventy-four, elect to exchange for the five-percentum bonds o f the said funded loan, with interest from

No commis-

said January first: Provided , That no commissions o r ^ a ^ w e d on
allowances whatever shall be paid for the exchange of
bonds hereby authorized, and no interest shall be allowed
on the new bonds for any time for which interest is paid
on the bonds exchanged.
Approved, December 17, 1873.
A C T O F J U N E 20, 1874.
C h a i > 328.— A n act making appropriations for the legis­
.

lative, executive, and judicial expenses of the Govern­
ment for the year ending June thirtieth , eighteen hun­
dred and seventy-five, and for other purposes.
*

*

*

*

*

S ec. 4. That the act entitled “ A n act lim iting the ap- mf nen f1approi
eP
propriation o f certain moneys, for the preparation, issue, natlonanoan0 r
and re-issue o f certain securities o f the United States,
and for other purposes,” approved M ay twenty-third, T i7,C 156
oi8
p'
eighteen hundred and seventy-two, and all other acts and
parts o f acts making permanent appropriations for the
expenses o f the national loan, except the second section g 187voichi| 5p
2
o f the act approved July fourteenth, eighteen hundred 272and seventy, entitled “ A n act to authorize the refunding
o f the national debt,” are hereby repealed, this repeal to
take place on the first day o f July n ext; and hereafter




232

N A T IO N A L

M ONETARY

C O M M IS S IO N .

the Secretary o f the Treasury shall annually submit to
beE Su b matted Congress
s
annually.

detailed estimates o f appropriations required
f or said expenses; and for the fiscal year ending June

thirtieth, eighteen hundred and seventy-five, the follow ­
ing sums, or so much thereof as may be necessary, are
n aU on aM oa°n hereby

appropriated to defray the expenses o f the na-

juneelo ei875S^ ona^ i ° arb f ° r the follow ing clerical and other employees,
to w it : * * *
*
/*
*
*
*
Approved, June 20, 1874.
A C T O F J U N E 23, 1874.
pt1 p 248 L" C HAp. 459.— A n act for the creation of a court for
.! S

the adjudication and disposition of certain moneys re­
ceived into the Treasury under an award made by the
tribunal of arbitration constituted by virtue of the first
article of the treaty concluded at Washington the eighth
o f M a y , anno Domini eighteen hundred and seventyone, between the United States of America and the
Queen of Great Britain.
H
e

outu o f “ what
money paid,

H
«

*

H
:

S ec. 15. That the Secretary o f the Treasury is hereby
authorized and required to pay the said respective judg­
ments o f said court, out o f any such money in the Treasury

theecTreasury no^
authorized to
sell bonds for
the purpose.

otherwise appropriated; and for that purpose he is
herebv authorized when necessary to issue and sell at pub"

.

^

r

fic sale, after ten days notice o f the tune and place of
sale, at not less than par in coin, a sufficient amount of

A
pr?ienaci876f collPon or registered bonds of the United States, in such
form as he may prescribe, o f denominations o f fifty dol­
lars, or some multiple o f that sum, redeemable in coin o f
the present standard value, at the pleasure o f the United
States after ten years from the date o f their issue, and
bearing interest payable quarterly in such coin at the rate
o f five per centum per annum ; and upon the payment,
from time to time, of the said respective judgments o f
said court as before provided, the bonds o f the United
8 71 ’, , ch-States mentioned in the act approved March third,
3
11
.
7
601eighteen hundred and seventy-three, entitled A n act for

261, vol. 17, p.

the creation o f a court for the adjudication and disposi­
tion of certain moneys received into the Treasury under
an award made by the tribunal o f arbitration constituted
8730l‘ 17’




virtu0 o f the first article of the treaty concluded at
W ashington the eighth o f M ay, anno Domini eighteen

LAW S

C O N C E R N IN G

233

F IN A N C E .

hundred and seventy-one, between the United States of
America and the Queen o f Great Britain,” shall be can­
celed and extinguished to the amount of such payments;
and when all such payments shall have been made, any

certain

such bonds remaining shall be also canceled and extin- canceled10 and
guished; and after the payment of the said judgments,^Bafance^reand the re-imbursement o f the expenses as herein pro- ™ ^ n
a^®5
vided, if there shall remain any part o f the said money, re1m
bursen?end
t
the same shall be and remain a fund from which C o n g ressn stftu te *a
may hereafter authorize the payment o f other claim sfun etcd>
thereon.

*

*

*

*

*

*

*

*

Approved, June 23, 1874.
A C T O F J A N U A R Y 14, 1875.
C h a p 15. — A n act to provide for the resumption of specie

payments.

18 s t a t . L.,
p t. 3, p. 296.

Be it enacted by the Senate and House of Representa- issue of siiv
'
*
ver coins for
lives of the United States of America in Congress as-th e redemption
.
o f fractional
sembled, That the Secretary o f the Treasury is hereby currency auauthorized and required, as rapidly as practicable, to
cause to be coined, at the mints o f the United States,
silver coins o f the denominations o f ten, twenty-five, and
fifty cents, o f standard value, and to issue them in re­
demption o f an equal number and amount o f fractional
currency o f similar denominations, or, at his discretion,
he may issue such, silver coins through the mints, the subtreasuries,

public

depositaries

and

post-offices

of

the

United States; and, upon such issue, he is hereby author­
ized and required to redeem an equal amount o f such
fractional currency, until the whole amount o f such frac­
tional currency outstanding shall be redeemed.
S e c . 2. That so much o f section three thousand five t ^Repeal of auhundred and twenty-four o f the Revised Statutes o f th e charge a- perUnited States as provides for a charge of one-fifth o f one conversion
.

„

..

,

,

.

bullion

per centum lor converting standard gold bulkon into c o in coin,

of
into

is hereby repealed; and hereafter no charge shall be made statutes, 3524.
for that service.
S e c . 3 . T hat section five thousand one hundred and

seventy-seven o f the Revised

Repeal

of

Statutes o f the United a™gVe’g a t°e

States, limiting the aggregate amount of circulating notes cuiatW notes,
o f national banking associations, be, and is hereby, re- statutes, 5177.
pealed; and each existing banking association may in157120—10----- 17




234

-

N A T IO N A L

M ONETARY

C O M M IS S IO N .

crease its circulating notes in accordance with existing
law without respect to said aggregate lim it; and new
banking associations may be organized in accordance with
R epeal

fo f

existing law without respect to said aggregate lim it; and

withdrawal the provisions o f law for the withdrawal and redistrition.

g ee

R evised

bution o f national bank currency among the several States

statutes, 5181. and Territories are hereby repealed. xVnd whenever, and
so often, as circulating notes shall be issued to any such
states notes in hanking association, so increasing its capital or circu000e00O fo
0f 30belating n° t es? or so newly organized as aforesaid, it shall
Tcertafn ratio
the duty
the Secretary of the Treasury to redeem
nationa?a bank
S
legal-tender United States notes in excess only of
circulation.
three hundred million o f dollars, to the amount of
eighty per centum o f the sum o f national-bank notes
so issued to any such banking association as aforesaid
and to continue such redemption as such circulating
notes are issued until there shall be outstanding the
tion o unTtedsum
fd

three hundred million dollars o f such legal-

co tea
fn fte°rte - ten(ler United States notes, and no more. A nd on and
jann
uary i, 1879. after the first day o f January, anno Domini, eighteen
hundred and seventy-nine, the Secretary o f the Treasury
shall redeem, in coin, the United States legal-tender notes
then outstanding on their presentation for redemption, at
t^Appropria- the office o f the assitant treasurer o f the United States in
the city o f New Y ork , in sums o f not less than fifty dol­
lars. A n d to enable the Secretary o f the Treasury to pre­
pare and provide for the redemption in this act author­
ized or required, he is authorized to use any surplus reveSaieof bonds nues, from time to time, in the Treasury not otherwise
to provi de
1 .
. 7
^
m
eans of re- appropriated, and to issue, sell and dispose of. at not less

deeming

^

. ’ .

’

.r .

’

United states than par, in coin, either of the descriptions o f bonds of
Seei870j ch. the United States described in the act o f Congress ap272.




’

proved July fourteenth, eighteen hundred and seventy,
entitled, “ A n act to authorize the refunding o f the na­
tional debt,” with like qualities, privileges, and exemp­
tions, to the extent necessary to carry this act into full
effect, and to use the proceeds thereof for the purposes
aforesaid. A n d all provisions o f law inconsistent with
the provisions o f this act are hereby repealed.
Approved, January 14, 1875.

LAWS

C O N C E R N IN G

235

F IN A N C E .

A C T O F M A R C H 3, 1875.
C h a p . 130.— A n act making appropriations for sundry

stat-㣥.
P ti

Oj

PP«

O «y

1

civil expenses of the Government for the fiscal year t r ­
ending June thirtieth, eighteen hundred and seventysix, and for other purposes.
sjc

sfc

$

H
*

$

S ec. 3. T hat to carry into effect the 1
provisions o f sec- em F. rc® in caro
,t0 be
J
ployed
tion three o f the act entitled “ A n act fixing the a m o u n t o u t pro­
o f United States notes, providing for a redistribution of c- 343. s. 3.
the national-bank currency, and for other purposes ” ap­
proved 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, nam ely:
*
*
*

*

*

*

*

*

A n d at the end o f each month, the Secretary

office of^tbe

of the Treasury shall reimburse the Treasury to the full the currency,
amount paid out under the provisions o f this section by
transfer of said amount from the deposit of the national
banking-associations with the Treasury o f the United
States; and at the end o f each fiscal year he shall trans­
fer from said deposit to the Treasury o f the United
States such sum as may have been actually expended
under his direction for stationery, rent, fuel, light, and
other necessary incidental expenses which have been in­
curred in carrying into effect the provisions o f the said
section of the above named act.
sf-

sjs

S ec . 11. That the Secretary of the Treasury is herebyH Be de m pauthorized, at such times as may be necessary, for the pur- R s., ^694pose o f obtaining bonds for the sinking-fund, in compli- 3697 P
ance with sections three thousand six hundred and ninetyfour to three thousand six hundred and ninety-seven, in­
clusive, o f the Revised Statutes o f the United States, to
give public notice that he will redeem, in coin, at par, any
bonds o f the United States, bearing interest at the rate o f
six per centum, o f the kind known as five-twenties; and in
three months after the date o f such public notice, the in­
terest on the bonds so selected and called for payment
shall cease.

*

*

Approved, March




*

3, 1875.

*

*

236

F A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F M A R C H 3. 1875.
pt1 p
! S463 L" C h a p . 134 .— A n act making appropriations for the re­
pair, preservation, and completion of certain public
works on rivers and harbors, and for other purposes.

S ec. 4. That James B. Eads, of Saint Louis, Missouri,
James
B.
E ad s a n d oth e r s t o c o n ­ be, and he is hereby, authorized, with such others as may
s tr u c t
je ttie s,
etc., to m a in ­ be associated with him, on the conditions hereinafter
tain
ch an n el
b etw een S ou th mentioned, to construct such permanent and sufficient
P a ss o f M issis­
sip p i R iv er and jettees and such auxiliary works as are necessary to create
G u lf o f M ex ico.
and permanently maintain, as hereinafter set forth, a

wide and deep channel between the South Pass of the
Mississippi River and the G u lf o f Mexico, and for that
purpose he may construct, in the river, outlet, or pass,
and likewise in the G u lf o f Mexico, such walls, jettees,
dikes, levees, and other structures, & employ such boats,
rafts, and appliances, as he may, in the prosecution o f
said work deem necessary: Provided ,
O b l Ig a •
S ec.
tlon s to be d isc h a r g e d i n herein

mo n e y

or

bonds.

*

*

*

. T hat the option of discharging the obligations
assumed by the United States, either in money or

bonds, is expressly reserved; and the Secretary o f the
Treasury is hereby directed to issue the bonds o f the
United States, bearing live per centum interest, o f the
character and description set out in the act entitled “ A n
act to authorize the refunding of the public debt,” ap­
proved July fourteenth, eighteen hundred and seventy,
to said Eads or his legal representatives, in payment at par
o f the aforesaid warrants o f the Secretary o f W a r , unless
the Congress o f the United States shall have previously
provided for the payment of the same by the necessary

U n i t e d appropriations o f m oney: Provided, That in no case shall
the Government o f the United States be liable for any

S ta tes n o t lia ­
ble f o r losses,
e tc.




losses incurred by said Eads and his associates in the
performance o f the work herein mentioned, nor shall any
payments thereon be made in excess o f the sums nor con­
trary to the terms hereinbefore prescribed.
Approved, March 3, 1875.

LAWS

C O N C E R N IN G

237

F IN A N C E .

A C T O F M A R C H 3, 1875.
C h a p . 167.— A n act to authorize the Secretary of the pt1| pta
5o7L-’

Treasury to adjust and remit certain taxes and 'penal­
ties claimed to be due from mining and other corpora­
tions and for other purposes.
B e it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That the Secretary o f the Treasury be, and he is alt< rtain
j|s n
hereby, authorized and directed to settle and release any ing and m
anuclaims for tax on circulation o f evidences o f indebtedness porationa
.
. .
.
m
itted.
made against any mining, manufacturing or other cor­

re-

porations other than against any national banking-asso­
ciation, State bank, or banking-association, by such cor­
porations paying the tax, without penalty, that -shall
have accrued thereon since November first, eighteen hun­
dred and seventy-three; and that the provisions o f sec-

3 7 1” <fora­

tion three thousand four hundred and twelve of the Re- struedvised Statutes o f the United States shall not be con­
strued in pending cases, except as to national bankingassociations, to apply to such evidences o f indebtedness
issued and reissued prior to the passage o f this act, but
said section shall be construed as applying to such evi­
dences o f indebtedness issued after the passage hereof.
Approved, March 3, 1875.
A C T O F A P R I L 11, 1876.
C h a p . 55.— A n act to enable the Secretary of the Treas- so19 stat L-

ury to pay judgments provided for in an act approved
February fifteenth, eighteen hundred and seventy-six ,
entitled uA n act providing for the payment of judg­
ments rendered under section 11 of chapter lyj9 of the
laws of the first session of the Forty-third Congress F
Be it enacted by the Senate and House of Representa­
tives of the United States o f America in Congress assem­
bled, That the Secretary o f the Treasury, for the purpose
„. p

•

,1

.

f

- i i / .

•

,

c r

, of

Judgments
Alabama

or paying the judgments provided tor in an act approved claims

court.

February fifteenth, eighteen hundred and seventy-six, en-for paymentof!
titled v An act providing for the payment o f judgments
‘
rendered under section eleven, o f chapter four hundred
and fifty-nine of the laws o f the first session o f the Fortythird Congress,” is hereby authorized to convert into
coupon-bonds, and to sell, after five days’ notice, so many




1876, ch- 10-

238

N A T IO N A L

M ONETARY

C O M M IS S IO N .

as may be necessary for this purpose o f the five per
centum registered bonds o f the United States now held
subject to the disposition o f Congress under the provi*> 1 8voi3 i 7 V s^
6
ons ° f the act approved March third, eighteen hundred
601’
’
and seventy-three, chapter two hundred and sixty-one.
i 8 7 4 > c1K
hsec. 15,

459.

S ec . 2. T hat so much o f #
section fifteen o f the act ap#
r

Repealed’ 248‘ Proved June twenty-third, eighteen hundred and seventyfour, chapter four hundred and fifty-nine, as conflicts
with this act, is hereby repealed.
•

Approved, A p ril 11, 1876.
A C T O F M A Y 31, 1878.

8720 stat- L-> C h a p . 146.— A n act to forbid the further retirement of

United States legal-tender notes.
Be it enacted by the Senate and House of Representa­
tives of the United States o f America in Congress assemnotefal further bUd, That from and after the passage o f this act it shall
prohfwted °f’ not
f ° r ^ ie Secretary of the Treasury or other
February^
officer under him to cancel or retire any more o f the
stafutesR
e358e United States legal-tender notes. A n d when any o f said
/
notes may be redeemed or be received into the Treasury
under any law from any source whatever and shall belong
to the United States, they shall not be retired cancelled
or destroyed but they shall be reissued and paid out
Proviso.
utes, 3582*

again and kept in circulation: Provided That nothing
herein shall prohibit the cancellation and destruction of
mutilated notes and the issue o f other notes o f like
denomination in their stead, as now provided by law.
A ll acts and parts o f acts in conflict herewith are
hereby repealed.
Approved, M ay 31, 1878.
A C T O F J U N E 8, 1878.

20

stat. l.,C h a p . 170.— An A ct to authorize the Secretary of the

Treasury to constitute Superintendents of Mints or
Assayers in Assay-offices. Assistant Treasurers of the
United States.
Be it enacted by the Senate and House of Repi'esentatives of the United States of America , in Congress assementS P fin
sU o m1ntsbled. That the Secretary o f the Treasury be and he is
may beronsti-hereby authorized to constitute any superintendent of a
treasurersStant m ^
nf or assayer o f any assay-office, an assistant treasurer

poserwha* pur ° f ^ ie United States without additional compensation,




239

LAWS CONCERNING FINANCE.

to receive gold coin and bullion on deposit for the pur­
poses provided for in section two hundred and fiftyfour o f the Revised Statutes.
Approved, June 8, 1878.
A C T O F J U N E 11, 1878.
C h a i\

180.— A n act providing a permanent form of 20 Stat. L„
102.
government for the District of Columbia.

*

Sec.

*

*

*

*

7. That the offices o f sinking-fund commissioners Offices of sink­

ing - fund com­

are hereby abolished, and all duties and powers possessed missioners abol­
ished and du­

by said commissioners are transferred to, and shall be ties transferred
to Treasurer of
exercised by the Treasurer of the United States, who United States.
shall perform the same in accordance with the provisions
o f existing laws.
*

s<
:

*

sj:

*

Approved, June 11, 1878.
A C T O F J A N U A R Y 25, 1879.
C h a p . 24.—

A n act to facilitate the refunding the na­
tional debt.

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, T hat the Secretary o f the Treasury is hereby au­

20 Stat. L.,
265.

Public debt.

thorized in the process o f refunding the national debt
under existing laws to exchange directly at par the

Exchange of

6 for 4 per
bonds o f the United States bearing interest at four per cent bonds.
centum per annum authorized by law for the bonds of

the United States commonly knowm as five-twenties out­
standing and uncalled, and, whenever all such five-twenty
bonds shall have been redeemed, the provisions o f this
section and all existing provisions o f law authorizing
the refunding o f the national debt shall apply to any
bonds o f the United States bearing interest at five per
centum per annum or a higher rate, which may be re­
deemable.

In any exchange made under the provisions

o f this section interest may be allowed, on the bonds
redeemed, for a period o f three months.
Approved, January 25, 1879.




Interest.

240

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F F E B R U A R Y 26, 1879.
20 Stat.
321 .

l .,

C h a p . 102.— An act to authorize the issue of certificates

of deposit in aid of the refunding of the public debt.

P u b iic debt,

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assembled, That the Secretary o f the Treasury is hereby author­
ized and directed to issue, in exchange for lawful money
o f the United States that may be presented for such ex-

certificateschange, certificates o f deposit, o f the denomination o f ten

in aid of re- , „ &
J
, ,
l
,
- »
funding.
dollars, bearing interest at the rate o l lour per centum

per annum, and convertible at any time, with accrued
interest, into the four per centum bonds described in the
refunding a c t; and the money so received shall be applied

Proceeds.

only to the payment o f the bonds bearing interest at a
rate o f not less than five per centum in the mode pre­
scribed by said act, and he is authorized to prescribe suit­
able rules and regulations in conformity with this act.
Approved, February 26, 1879.
ACT

OF M ARCH

3, 1879.

383° Stat’ L” C HAP* 182.— A n act making appropriations for sundry

civil expenses of the government for the fiscal year end­
ing June thirtieth, eighteen hundred and eighty , and
for other purposes.
Be it enacted by the Senate and House of Repi'esentatives of the United States of America in Congress assemtionsPpr° pria bled, That the following sums be, and the same are hereby,
expenses! clvil appropriated for the objects hereinafter expressed, for

the fiscal year ending June thirtieth, eighteen hundred
and eighty, nam ely:

MISCELLANEOUS OBJECTS UNDER THE TREASURY DEPARTMENT.

1879, ch. 329.

*

*

*;

and so much o f the act “ making appropria­

tions for the legislative, executive, and judicial expenses
of the government for the fiscal year ending June thir­
tieth, eighteen hundred and seventy-nine, and for other
purposes,” approved June nineteenth, eighteen hundred
and seventy-eight, as authorizes the Secretary o f the
Bullion




cer-Treasury to issue coin certificates in exchange for bullion

deposited for coinage at mints and assay-offices other than

LAWS

C O N C E R N IN G

241

F IN A N C E .

those mentioned in section thirty-five hundred and forty-

R s., 3545.
.

five o f the Revised Statutes, be, and the same is hereby,
repealed; said repeal to take effect at the end o f the
present fiscal year.
*
*

*

*

*

Approved, March 3, 1879.
ACT

OF M ARCH

3, 1879.

C h a p . 186.— A n act to 'promote the education of the blind.

20

467.

stat. l .,

(T h is act provides an appropriation of $250,000 to be
invested in 4 per cent bonds, the interest on .said bonds to
be paid over to the trustees o f the American Printing
House for the B lin d ; the trustees to make report to the
Secretary of the Treasury.)
Approved, March 3, 1879.
ACT

OF

M ARCH

3, 1881.

C h a p . 133.— A n act making appropriations for sundry 45|1 stat- L ’

civil expenses of the government for the fiscal year
ending June thirtieth, eighteen hundred and eightytwo , and for other purposes.
*

*

*

*

*

S ec . 2. T hat the Secretary o f the Treasury may at any secretary of
time apply the surplus money in the Treasury not other- p ya|urr p°i u s
ir
P
wise appropriated, or so much thereof as he may con- Treasury to
sider proper, to the purchase or redemption o f United dempuVn r
of
States bonds: Provided , That the bonds so purchased or boproViso
redeemed shall constitute no part o f the sinking fund,
but shall be canceled.
*

*

*

*

*

Approved, March 3, 1881.
ACT

OF

JULY

12, 1882.

C h a p . 290.— An act to enable national-banking associ-

22

stat. l .,

ations to extend their corporate existence, and for other
purposes.
*

*

*

*

*

S e c . 11. T hat the Secretary o f the Treasury is hereby

Three and a

authorized to receive at the Treasury any bonds o f the bonds Received
L nited States bearing three and a half per centum in-three’ h
pe^ cent
terest, and to issue in exchange therefor an equal amount bonds."tered
o f registered bonds o f the United States o f the denomi-




242

N A T IO N A L

M ONETARY

C O M M IS S IO N .

nations o f fifty, one hundred, five hundred, one thousand,
and ten thousand dollars, o f such form as he may pre­
scribe, bearing interest at the rate o f three per centum
per annum, payable quarterly at the Treasury o f the
ta£X
etc.pt from United States.
Such bonds shall be exempt from all
taxation by or under State authority, and be payable at
the pleasure o f the United States:

Proviso.

Provided , T hat the

bonds herein authorized shall not be called in and paid
so long as any bonds o f the United States heretofore
issued bearing a higher rate o f interest than three per
centum, and which shall be redeemable at the pleasure
o f the United States, shall be outstanding and uncalled.
The last o f the said bonds originally issued under this
act, and their substitutes, shall be first called in, and this
order o f payment shall be followed until all shall have
been paid.
*

*

*

*

*

Approved, July 12, 1882.
ACT

2Z stat.

l .,

OF

M AY

16, 1884.

C hap . 52.— A n act to prevent and punish the counter­
feiting within the United States of notes, bonds, and
other securities of foreign Governments.
(T his act provides penalties for counterfeiting within
the United States the notes, bonds, or securities o f foreign
governments.)
(T his act was amended by the act o f March 4, 1909
(chap. 321, 35 Stat. L ., pp. 1117 to 1119).
156 to 162 inclusive.)

See sections

* A C T O F M A R C H 31, 1886.

24 stat. l„ 9. C hap . 41.— A n act to amend section three hundred and
four of the Revised Statutes of the United States, au­
thorizing the temporary appointment of an Acting
Assistant Treasurer.
Be it enacted by the Senate and House of Representa­
tives of the United States o f America in Congress assemp S bled, That section three hundred and four o f the Revised
” 5i'

304'
am
ended.

Statutes o f the United States be, and the same is hereby,
amended so as to read as follow s:

Treasurer a “ *




“ S ec . 304. The Treasurer may, in his discretion, and
with the consent of the Secretary o f the Treasury, au­

LAWS

C O N C E R N IN G

F IN A N C E .

243

thorize the Assistant Treasurer to act in the place and
discharge any or all the duties o f the Treasurer o f the
United States; and in the event of the absence or illness
o f either the Treasurer or the Assistant Treasurer, or
both, the Secretary o f the Treasury m ay, on the recom­
mendation of the Treasurer appoint for a term not exceed­
ing thirty days at one time, from among the clerks in the
Treasury, any one of said clerks to be A cting Assistant sisf£*{.ng traas;
s
Treasurer during such absence or illness: Provided , how- urer
perever , T hat no such appointment shall be made until the Tourer,
official bond given by the principal o f the office shall be
made in terms to cover and apply to the acts and defaults
o f every such person so appointed from time to time.
Such acting officer shall, moreover, for the time being,
be subject to all the liabilities and penalties prescribed by
law for the official misconduct in like cases o f the Assist­
ant Treasurer, for whom he acts.”
Approved, March 31, 1886.
A C T O F M A R C H 3, 1887.
C h a p . 345.— A n act authorizing an investigation of the 4% stat- L14

boohs, accounts, and methods o f railroads which have
received aid from the United States, and for other
purposes.
(Sections 1, 2, and 3 provide for a commission to inves­
tigate the books, workings, and consolidation, etc., o f
said railroads and to report whether the interests of the
United States require any extension o f the time for per­
formance o f their obligations to the Government.)
S ec . 4. T hat whenever, in the opinion o f the President,
it shall be deemed necessary to the protection o f the interests and the preservation o f the security o f the United
States in respect o f its lien, mortgage, or other interest in
any o f the property of any or all o f the several companies
upon which a lien, mortgage, or other incumbrance para­
mount to the right, title, or interest o f the United States
for the same property, or any part o f the same, may exist
and be then law fully liable to be enforced, the Secretary
° f the Treasury shall, under the direction o f the Presi­
dent, redeem or otherwise clear off such paramount lien,
mortgage, or other incumbrance by paying the sums law ­
fully due in respect thereof out o f the T reasury; and the
I nited States shall thereupon become and be subrogated
to all rights and securities theretofore pertaining to the




prlor

NATIONAL MONETARY COMMISSION.

244

debt, mortgage, lien, or other incumbrance in respect of

the
to Protect n
p r o te c t the which such payment shall have been made.
rig h ts, etc
°f
U nited S ta tes

It shall be
the duty o f the Attorney-General, under the direction of

the President, to take all such steps and proceedings, in
the courts and otherwise, as shall be needful to redeem
such lien, mortgage, or other incumbrance, and to protect
and defend the rights and interests of the United States
in respect of the matters in this section mentioned, and to
take steps to foreclose any mortgages or liens o f the
United States on any such railroad property. •
In v estm en t
of
sinking
fu n ds.

S ec. 5.

T hat the sinking-funds which are or may be

held in the Treasury for the security o f the indebtedness
o f either or all o f said railroad companies may, in addi­
tion to the investments now authorized by law, be in­
vested in any bonds o f the United States heretofore issued
for the benefit o f either or all o f said companies, or in
any o f the first-mortgage bonds o f either o f said com­
panies which have been issued under the authority of any
law o f the United States and secured bv mortgages of
their roads and franchises, which by any law o f the
United States have been made prior and paramount to
the mortgage, lien, or other security o f the United States
in respect o f its advances to either o f said companies as
provided by law.
Approved, March 3, 1887.
A C T O F M A R C H 2, 1889.

25

stat.

Names
p ortra its .

l., C hap .

411.— A n act making appropriations for sundry
civil expenses of the Government for the fiscal year
ending June thirtieth, eighteen hundred and ninety,
and for other purposes.

on

*

*

*

: And provided further , That-hereafter the

name o f each person whose portrait shall be placed upon
any o f the plates for bonds, securities, notes and silver
certificates o f the United States shall be inscribed below
such portrait:
*

*
*

*

*
.

*

Approved, March 2, 1889.

V




I

245

L A W S C O N C E R N IN G F IN A N C E .

A C T O F O C T O B E R 1, 1890.
C h a p . 1246.— A n act to provide for the incorporation o f

16 stat- L-

trust, loan, mortgage, and certain other corporations
within the District of Columbia.
Be it enacted by the Senate and House of Representa- District o f
,.
.
_
-t
t
•
i
n .
«
a
.
.
„
Columbia.
lives o f the U nited States o f A m erica in Congress as- corporations
sembled, That corporations may be formed within the
District o f Columbia for the purposes hereinafter men­
tioned in the follow ing m anner:
A n y time hereafter any number o f natural persons,

m

inun um

citizens o f the United States, not less than twenty-five, porators.
may associate themselves together to form a company for
the purpose o f carrying on in the District of Columbia
any one o f three classes o f business herein specified, to
w it :
First. A safe deposit, trust, loan, and mortgage busi-etcSaf® ^i P sIt>
u ee g
°s
ness.
Second. A

title insurance, loan, and mortgage b u si-anJe
itl|tc ^ J j-

neSS.

ness.’

Third. A security, guaranty, indemnity, loan, and b f e s s 1
u
y’etc-»
mortgage business: Provided , That the capital stock o f Provisos,
any of said companies shall not be less than one million
o f dollars: Provided further , That any o f said companies
may also do a storage business when their capital s t o c k i m u m
amounts to the sum o f not less than one million two hun- ^storage busidred thousand dollars.
(The remaining sections 2 to 34, inclusive, prescribe
method of organization, etc., establish rules for the con­
duct o f business, etc.)
Approved, October 1, 1890.
A C T O F F E B R U A R Y 10, 1891.
C h a f . 127.— A n act further to prevent counterfeiting o r 74|6 stat. l .,

manufacture of dies, tools, or other implements used
in counterfeiting, and providing penalties therefor, and
providing for the issue of search warrants in certain
cases.

*

sii

sj{

sjs

*

S ec . 4. T hat all counterfeits o f any o f the obligations o r Qf
Couatar. ®, ta
f e
other securities of the United States or o f any foreign states obiigaGovernment, or counterfeits o f any o f the coins o f the
I nited States or o f any foreign Government, and all ma-




246

N A T IO N A L

M ONETARY

C O M M IS S IO N .

terial or apparatus fitted or intended to be used, or that
shall have been used, in the making o f any such counter­
feit obligations or other securities or coins hereinbefore
mentioned, that shall be found in the possession of any
person without authority from the Secretary o f the Treas­
ury or other proper officer to have the same, shall be taken
possession o f by any authorized agent o f the Treasury
Department and forfeited to the United States, and dis­
posed of in any manner the Secretary of the Treasury may
direct.
Issue

of

S ec. 5. T hat the several judges of courts established

search
w
ra n ts in such under
cases.

the laws o f the United States and the commission­

ers o f such courts m ay, upon proper oath or affirmation,
within their respective jurisdictions, issue a search war­
rant authorizing any marshal of the United States, or any
other person specially mentioned in such warrant, to enter
any house, store, building, boat, or other place named in
such warrant, in the daytime only, in which there shall
appear probable cause for believing that the manufac­
ture o f counterfeit money, or the concealment o f counter­
feit money, or the manufacture or concealment of counter­
feit obligations or coins o f the United States, or o f any
foreign government, or the manufacture or concealment
o f dies, hubs, molds, plates, or other things fitted or in­
tended to be used for the manufacture o f counterfeit
money, coins, or obligations o f the United States or of
any foreign government, or of any bank doing business
under the authority o f the United States or o f any State
or Territory thereof, or o f any bank doing business under
the authority o f any foreign government or of any polit­
ical division o f any foreign government, is being carried
on or practiced, and there search for any counterfeit
money, coins, dies, hubs, molds, plates, and other things,
Seizures.




and for any such obligations, and if any such be found to
seize and secure the same, and to make return thereof to
the proper authority; and all such counterfeit money,
coins, dies, hubs, molds, plates, and other things and all
such counterfeit obligations so seized shall be forfeited to
the United States.
Approved February 10, 1891.
• (T h is act was amended by the act o f March 4, 1909
(chap. 321, 35 Stat. L ., pp. 1120 and 1121).
169 to 173, inclusive.)

See sections

LAWS

C O N C E R N IN G

247

F IN A N C E .

A C T O F A U G U S T 13, 1894.

C hap . 281.— A n act to subject to state taxation national 28 stat.
J
278
bank notes and United States Treasury notes.

l .,

Be it enacted by the Senate and House of Representa- state taxation
fives of the United States of America in Conqress assem-currency and
*
*
^
U nited
St&tes
bledy That circulating notes o f national banking associa- n o te s a u th ortions and United States legal tender notes and other notes
and certificates o f 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 o f any State
or T erritory: Provided , T hat any such taxation shall be

Prov,so-

exercised in the same manner and at the same rate that

To be taxed

any such State or Territory shall tax money or currency ^ one° t h e r
s
circulating as money within its jurisdiction.
S ec. 2. That the provisions of this A c t shall not be Existing law s.
deemed or held to change existing laws in respect o f the
taxation o f national banking associations.
Approved, August 13, 1894.
A C T O F A U G U S T 15, 1894.
C h a p . 290.— A n act making appropriations for current ^ 2 8 stat. l .,

and contingent expenses of the Indian Department and
fulfilling treaty stipulations with various Indian tribes
for the fiscal year ending June thirtieth, eighteen hun­
dred and ninety-five, and for other purposes.
*
*'
*
*
*
S ec. 19.

*

*

*•

A n d the Secretary o f the Treasury

Cherokee Na-

is hereby authorized to issue to the Cherokee Nation or t o t 0
Bonds to be
its assigns evidences o f indebtedness o f the United States !n fn f> f f I
gU
taP
o f America, bearing interest at the rate o f four p e rm
ent8‘
centum per annum, payable annually on the fourth day
o f March o f each year, in amounts o f one thousand and
ten thousand

dollars,

respectively,

for the respective

amounts o f the second, third, fourth, and fifth installrnents, maturing respectively on the fourth day o f March,
eighteen hundred and ninety-six, the fourth day o f March,
eighteen hundred and ninety-seven, the fourth day o f
March,

eighteen

hundred

and

ninety-eight,

and

the

fourth day o f March, eighteen hundred and ninety-nine,
and

amounting in the




aggregate to six million six hun-

248

N A T IO N A L

M ONETARY

C O M M IS S IO N .

dred and forty thousand dollars, as specified in said act o f
64ao 27’ P March third, eighteen hundred and ninety-three; and this
1'
‘
provision shall not be construed to extend the time nor
to increase the amount o f the liability o f the Government
as provided in section ten o f the said A ct o f March third,
eighteen hundred and ninety-three.
*

*

*

*

*

Approved, August 15, 1894.
A C T O F M A Y 28, 1896.

1799

Stat‘ L” C h a p . 252 .— A n act m aking appropriations fo r the legis­
lative , ex ecu tive , and judicial expenses o f the G overn ­

m ent fo r the fiscal yea r ending June th irtieth , eighteen
hundred and n inety-seven, and fo r oth er purposes.
*

*

*

*

*

S ec . 5. T hat section thirty-six hundred and twenty-one
o f the Revised Statutes is amended to read as follow s:
d e p o s i t e d 0 in

taries
a l^

“

S ec. 3621. Every person who shall have moneys o f

deposi' the United States in his hands or possession, and disburs­
p’ 714’

am ended.

°fficers having moneys in their possession not required
for current expenditure, shall pay the same to the Treas­
urer, an Assistant Treasurer, or some public depositary
o f the United States, without delay, and in all cases
within thirty days o f their receipt.

A n d the Treasurer,

the Assistant Treasurer, or the public depositary shall
issue duplicate receipts for the moneys so paid, trans­
m itting forthwith the original to the Secretary o f the
Treasury, and delivering the duplicate to the depositor:
P rov iso.
P o s ta l rev*
enues.

P rovid ed , T hat postal revenues and debts due to the Post•

•

Office Department shall be paid into the Treasury in the
manner now required by law.”
*
*
*

*

*

Approved, M ay 28, 1896.
A C T O F J U N E 13, 1898.
3° stat. l .,C h a p . 448 .— A n act to p rovid e w ays and means to m eet

0

44o.

4

*

*

w ar expen d itu res , and f o r oth er purposes.
*
is s u e o f cerS ec.
tifica tes o f in- .
d eb ted n ess au- ized to
thorized .




*

*

32. T hat the Secretary o f the Treasurv is author-

\

J

borrow from time to time, at a rate of interest not
1

exceeding three per centum per annum, such sum or sums
as, in his judgment, may be necessary to meet public ex-

LAW S

C O N C E R N IN G

F IN A N C E .

249

_

penditures, and to issue therefor certificates of indebted­
ness in such form as he may prescribe and in denomina­
tions o f fifty dollars or some multiple o f that s u m; and
each certificate so issued shall be payable, with the interest
accrued thereon, at such time, not exceeding one year from
the date o f its issue, as the Secretary of the Treasury may
prescribe: Provided , T hat the amount o f such certificates_P«>viso.
outstanding shall at no time exceed one hundred millions
of dollars; and the provisions o f existing law respecting
counterfeiting and other fraudulent practices are hereby

Counterfeit-

extended to the bonds and certificates o f indebtedness
authorized by this act.
S ec . 38. That the Secretary o f the Treasury is hereby

rssue

of

authorized to borrow on the credit o f the United States cure loan aufrom time to time as the proceeds may be required to
defray expenditures authorized on account o f the exist­
ing war (such proceeds when received to be used only for
the purpose o f meeting such war expenditures) the sum
o f four hundred million dollars, or so much thereof as
may be necessary, and to prepare and issue therefor,
coupon or registered bonds o f the United States in such
form as he may prescribe, and in denominations o f twenty honseetc°m
lna
dollars or some multiple o f that sum, redeemable in coin
at the pleasure o f the United States after ten years from
the date o f their issue, and payable twenty years from
such date, and bearing interest payable quarterly in coin
at the rate o f 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:

Provided , T hat the bonds authorized by this section shall

P ro v iso s,

be first offered at par as a popular loan under such regula-

P o p u la r loan,

tions, prescribed by the Secretary o f the Treasury, as will
give opportunity to the citizens o f the United States to
participate in the subscriptions to such loan, and in
allotting said bonds the several subscriptions o f indi­
viduals shall be first accepted, and the subscriptions for
the lowest amounts shall be first allotted: Provided fur­
ther, That any portion o f any issue o f said bonds not
subscribed for as above provided may be disposed o f by

scrib e d fo r.

the Secretary o f the Treasury at not less than par, under
such regulations as he may prescribe, but no commissions
shall be allowed or paid thereon; and a sum not exceeding one-tenth o f one per centum o f the amount o f the
bonds and certificates herein authorized is hereby appro157120— 10----- i s




Expenses,

N A T IO N A L

250

M ONETARY

C O M M IS S IO N .

priated out of any money in the Treasury not otherwise
appropriated, to pay the expense of preparing, advertis­
ing, and issuing the same.
*

*

*

*

*

Approved, June 13, 1898.
A C T O F J U L Y 1, 1898.
6oi° Stat‘ L’’ C h a p . 546.— A n act making appropriations for sundry

civil expenses of the Government for the fiscal year
ending June thirtieth, eighteen hundred and ninetynine, and for other purposes.
*
pressed roU
er

*

*

*

*

* * * • Provided further, T hat hereafter all bonds,
notes, and checks shall be printed from hand-roller
presses.
*

*

*

*

*

Approved, July 1, 1898.
A C T O F J U L Y 7, 1898.
6_3o stat. l ., c HAp. 5 7 !.

A n act making appropriations to supply defi­
ciencies in the appropriations for the fiscal year ending
June thirtieth, eighteen hundred and ninety-eight, and
for prior years, and for other purposes.

C en tra l P a ­
cific and W e st­
ern P a cific ra il­
roa d s.
C o m m Ission
t o s e ttle in­
debtedn ess t o
G ov ern m en t.

S ettlem ent w it h th e C entral P acific and W estern
P acific railroads : T hat the Secretary o f the Treasury,
the Secretary o f the Interior, and the Attorney-General,
and their successors in office, be, and they are hereby, ap­
pointed a commission with full power to settle the in­
debtedness to the Government growing out o f the issue
o f bonds in aid o f the construction of the C e n ta l Pacific
and Western

Pacific bond-aided railroads, upon such

terms and in such manner as may be agred upon by them,
or by a m ajority o f them, and the owners o f said rail­
P rov isos.
A p p rov a l by
the P resident.

roads : Provided , That any and all settlements thus made
shall be submitted in writing to the President for his ap­
proval or disapproval, and unless approved by him shall
not be binding.

Mi ni mum
sum to be a c­
cep ted .




That said commission shall not agree to accept a less
sum in settlement o f the amount due the United States
than the full amount of the principal and interest and

LAWS

C O N C E R N IN G

251

F IN A N C E .

all amounts necessary to reimburse the United States
for moneys jpaid for interest or otherwise: And also pro­

vided , That said commission are hereby empowered to

m ents.6 ° f pay

grant such time or times o f payment by installment, and
at such rates o f interest, to be not less than three per
centum per annum, payable semiannually, and with such
security

as to said commission may seem expedient:

Provided , however, T hat in any settlement that may be chargea ' dl8‘
made the final payment and full discharge o f said indebt­
edness shall not be postponed to exceed ten years and the
whole amount, principal and interest, shall be paid in
equal semiannual installments within the period so lim ­
ited, and in any settlement made it shall be provided
that if default shall be made in any payment o f either pa^ n t 1: 1n
<
principal or interest or any part thereof then the whole
sum and all installments, principal and interest, shall
immediately become due and payable, notwithstand­
ing any other stipulation o f said settlement: Provided

further, That unless the settlement herein authorized be
perfected within one year after the passage o f this A ct
the President of the United States shall at once proceed
to foreclose all liens now held by the United States inFdefauitS of
U
against said railroad companies and to collect the in debt-settlementedness herein sought to be settled, and nothing in this
A ct contained shall be held to waive or release any right,
lien, or cause o f action already held by the United States, etc.
T hat there is hereby appropriated, out o f any money

A p p r o p r ia -

in the Treasury not otherwise appropriated, the sum of

penses o f com -

twenty thousand dollars to defray the expenses o f said
commission in making the said settlement.
*
*
*
*
*
Approved, July 7, 1898.
J O I N T R E S O L U T I O N , J U L Y 7, 1898.
(N o. 55.) Joint resolution to provide for annexing the

stat. l.,

Hawaiian Islands to the United States.
*

*

*

*

*

The public debt o f the Republic o f H aw aii, law fully
existing at the date o f the passage o f this joint resolution,
including the amounts due to depositors in the Hawaiian
Postal Savings Bank, is hereby assumed by the Government ° f the United States; but the liability o f the United
States in this regard shall in no case exceed four million




u n it e d s ta te s
j^uMic .d e b t

a" a ’

of

252

N A T IO N A L

dollars.

M ONETARY

C O M M IS S IO N .

So long, however, as the existing Government

and the present commercial relations o f the Hawaiian
Islands are continued as hereinbefore provided said Government shall continue to pay the interest on said debt.
*
*
*
*
*

— in terest.

Approved, July 7, 1898.
A C T O F M A R C H 14, 1900.

31

stat.

l., C h a p . 41.— A n

4°2 supp. r. s.,
1119‘

,

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.
n enacted by the Senate and Rouse of Representa-

s ta n d a rd
va lu e fixed.

of

supp.

s., tenths grains o f gold nine-tenths fine, as established by

*
*

#

#

*

—gold d olla r fives of the United States of America in Congress assem^1890,’ s e_p t^ bled, That the dollar consisting of twenty-five and eightr.

—par i t y of section thirty-five hundred and eleven o f the Revised

v a 1 u e to be
m ain ta in ed .

°

Statutes o f the United States, shall be the standard unit
o f value, and all forms o f money issued or coined by the
United States shall be maintained at a parity o f value
with this standard, and it shall be the duty o f the Secre­

Treasury

tary o f the Treasury to maintain such parity.
S ec . 2. That United States notes, and Treasury notes

Julye 14,1ch°!issued under the A ct of July fourteenth, eighteen hundred
R
08s.,(774LP 'and ninety, when presented to the Treasury for redempP
i^r
|o1d.emabletion, shall be redeemed in gold coin o f the standard fixed
in the first section o f this act, and in order to secure the
prompt and certain redemption o f such notes as herein
provided it shall be the duty o f the Secretary o f the TreasMaintenance
o f reserve fun d,

nry to set apart in the Treasury a reserve fund o f 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 o f said notes shall
be redeemed from said fund it shall be the duty o f the
Secretary o f the Treasury to use said notes so redeemed
to restore and maintain such reserve fund in the manner

— by

exch a n g e

following, to w it: First, by exchanging the notes so re­
deemed for any gold coin in the general fund o f the Treas-

i"cb sTtP g UIT 5 second, by accepting deposits o f gold coin at the
poa
s f
t!o
—ifv procuring Treasury or at any subtreasury in exchange for the
g0R 's § 3700 United States notes so redeemed; third, by procuring gold
— by b on d is- coin by the use of said notes, in accordance with the pro­




visions o f section thirty-seven hundred o f the Revised
Statutes o f the United States.

I f the Secretarv o f the

LAWS

C O N C E R N IN G

F IN A N C E .

253

Treasury is unable to restore and maintain the gold coin
in the reserve fund by the foregoing methods, and the
amount o f 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 o f 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
o f the United States, in such form as he may prescribe, in
denominations o f fifty dollars or any multiple thereof,
bearing interest at the rate o f not exceeding three Pe r ^ a*e of in~
centum per annum, payable quarterly, such bonds to be
payable at the pleasure o f the United States after one
year from the date o f their issue, and to be payable, prin­
cipal and interest, in gold coin o f the present standard
value, and to be exempt from the payment o f all taxes or
duties o f the United States, as w ell as from taxation in
T
any form by or under State, municipal, or local authority;
and the gold coin received from the sale o f said bonds D is p o sitio n o f
shall first be covered into the general fund o f the Treasury ofn
bonds.m sale
and then exchanged, in the manner hereinbefore provided,
for an equal amount o f the notes redeemed and held for
exchange, and the Secretary o f the Treasury may, in his
discretion, use said notes in exchange for gold, or to pur­
chase or redeem any bonds o f the United States, or for —

r e d e m p tio n

any other law ful purpose the public interests 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 provisions o f this section
shall be reissued, but shall be held in the reserve f u n d — notes

to

be

until exchanged for gold, as herein provided; and the gold
coin and bullion in the reserve fund, together with the

L im it to re­

redeemed notes held for use as provided in this section,seive un '
shall at no time exceed the maximum sum o f one hundred
and fifty million dollars.
S ec . 3. T hat nothing contained in this act shall be con-

Q u a lity

ot

strued to affect the legal-tender quality as now providedetc^unaffected!
fiy law o f the silver dollar, or of any other money coined
or issued by the United States.
S ec . 4. T hat there be established in the Treasury D e-

D iv is io n s

partrnent, as a part o f the office o f the Treasurer o f th e d e m p tio n d
United States, divisions to be designated and known as tJbllshedthe division o f issue and the division o f redemption, to
which shall be assigned, respectively, under such regu­
lations as the Secretary o f the Treasury may approve,




of
e s e-

254

N A T IO N A L

M ONETARY

C O M M IS S IO N .

all records and accounts relating to the issue and redemp­
tion o f United States notes, gold certificates, silver cer— d uties.

tificates, and currency certificates.

There shall be trans­

ferred from the accounts o f the general fund o f the Treas­
ury o f the United States, and taken up on the books of
said divisions, respectively, accounts relating to the re­
serve fund for the redemption o f United States notes and
Treasury notes, the gold coin held against outstanding
gold certificates, the United States notes held against
outstanding currency certificates, and the silver dollars
held against outstanding silver certificates, and each

of

the funds represented by these accounts shall be used for
the redemption o f the notes and certificates for which
they are respectively pledged, and shall be used for no
C a n cella tion
of T re a s u ry
n otes fo r siiver d o l l a r s
co in e d , etc.

other purpose, the same being held as trust funds.
Sec. 5. That it shall be the duty o f the Secretary

\ of

the Treasury, as fast as standard silver dollars are coined
d7 . .
under the provisions o f the acts o f July fourteenth, eighteen hundred and ninety, and June thirteenth, eighteen
hundred and ninety-eight, from bullion purchased under
the act o f July fourteenth, eighteen hundred and ninety,
to retire and cancel an equal amount o f Treasury notes
whenever received into the Treasury, either by exchange

I s sue o f siiv er certifica tes.

in accordance with the provisions o f this act or in the
ordinary course o f business, and upon the cancellation
o f Treasury notes silver certificates shall be issued against
“

.

°

the silver dollars so coined.
cates’ 1to
s u e d on dep o sits o f gold .

^ ec.
T hat the Secretary o f the Treasury is hereby
authorized and directed to receive deposits o f sold coin
.

.

r

0

with the .treasurer or any assistant treasurer o f the
United States in sums o f not less than twenty dollars, and
to issue gold certificates therefor in denominations o f
not less than twenty dollars, and the coin so deposited
shall be retained in the Treasury and held for the pay­
— to b e^ cou n t-

ment o f such certificates on demand, and used for no other
purpose. Such certificates shall be receivable for customs,

serve, etc.

taxes, and all public dues, and when so received may be




reissued, and when held by any national banking associ­
ation may be counted as a part o f its law ful reserve:

Provided , That whenever and so long as the gold coin
held in the reserve fund in the Treasury for the re­
demption o f United States notes and Treasury notes shall
fall and remain below one hundred million dollars the
authority to issue certificates as herein provided shall be

LAW S

C O N C E R N IN G

255

F IN A N C E .

suspended: And provided further, That whenever and a s
uthorityS islto
so long as the aggregate amount o f United States notessue certiflcatesand silver certificates in the general fund o f the Treasury'
shall exceed sixty million dollars the Secretary o f the
Treasury may, in his discretion, suspend the issue o f the
certificates herein provided f or: And provided further ,
That o f the amount o f such outstanding certificates one- Denom
ination
5
of certificates
fourth at least shall be in denominations o f fifty dollars
or less:

And provided further, That the Secretary of

the Treasury may, in his discretion, issue such certifi­
cates in denominations o f ten thousand dollars, payable
to order.

A n d section fifty-one hundred and ninety-three

Repeal of

o f the Revised Statutes o f the United States is hereby
repealed.
S ec . 7. T hat hereafter silver certificates shall be issued Denom
ination
i
•
•
of silver certifionly o f denominations o f ten dollars and under, except cates,
that not exceeding in the aggregate ten per centum of the
total volume o f said certificates, in the discretion o f the
Secretary o f the Treasury, may be issued in denomina­
tions o f twenty dollars, fifty dollars, and one hundred
dollars; and silver certificates o f higher denomination
than ten dollars, except as herein provided, shall, when­
ever received at the Treasury or redeemed, be retired and
canceled, and certificates o f denominations o f ten dollars
or less shall be substituted therefor, and after such sub-—on reissue,
stitution, in whole or in part, a like volume o f United
States notes o f less denomination than ten dollars shall
from time to time be retired and canceled, and notes o f
denominations of. ten dollars and upward shall be re­
issued in substitution therefor, with like qualities and
restrictions as those retired and canceled.
S ec . 8. T hat the Secretary o f the Treasury is hereby

silver

bui-

authorized to use, at his discretion, any silver bullion in useu for3 s t>
ue
the Treasury o f the United States purchased under the i890, July 14,
A ct o f July fourteenth, eighteen hundred and ninety, forsu'pp.

r.

s .,

coinage into such denominations o f subsidiary silver coin
as may be necessary to meet the public requirements for
such coin : Provided , T hat the amount o f subsidiary silver—limit,
coin outstanding shall not at any time exceed in the aggre­
gate one hundred millions o f 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 o f Treasury notes
issued under said act equal to the cost o f the bullion con­
tained in such coin shall be canceled and not reissued.




^ o te s Cllation

256

N A T IO N A L

Recoinage of
ver coins.

M ONETARY

C O M M IS S IO N .

S e c . 9 , T hat the Secretary o f the Treasury is hereby

authorized and directed to cause all worn and uncurrent
subsidiary silver-coin o f the United States now in the
Treasury, and hereafter received, to be recoined, and to

— reim burse- reimburse the Treasurer o f the United States for the d if-

. f fjOm

f ace ference between the nominal or face value o f such coin
and the amount the same will produce in new coin from
any moneys in the Treasury not otherwise appropriated.
*

0f Redemption

*

*

*

*

S e c . n . T hat the Secretary o f the Treasury is hereby

authorized to receive at the Treasury any o f the outstand­
ing bonds o f the United States bearing interest at five per
centum per annum, payable February first, nineteen hun­
dred and four, and any bonds o f the United States bear­
ing interest at four per centum per annum, payable July
first, nineteen hundred and seven, and any bonds o f the
2 7 e f T e n°t United States bearing interest at three per centum per
bonds.
annum, payable A ugust first, nineteen hundred and eight,
and to issue in exchange therefor an equal amount of
coupon or registered bonds o f the United States in such
form as he may prescribe, in denominations o f fifty dol­
lars or any multiple thereof, bearing interest at the rate
o f two per centum per annum, payable quarterly, such
bonds to be payable at the pleasure o f the United States
after thirty years from the date o f their issue, and said
bonds to be payable, principal and interest, in gold coin
o f the present standard value, and to be exempt from the
payment o f all taxes or duties o f the United States, as
well as from taxation in any form by or under State,
municipal, or local authority: Provided , That such out— valuation, la n d in g bonds may be received in exchange at a valua­

tion not greater than their present worth to yield an in­
come o f two and one-quarter per centum per annum; and
in consideration o f the reduction o f interest effected, the
Secretary o f the Treasury is authorized to pay to the
holders o f the outstanding bonds surrendered for ex­
change, out o f any money in the Treasury not otherwise
appropriated, a sum not greater than the difference be­
tween their present worth, computed as aforesaid, and
their par value, and the payments to be made hereunder
r . s.,




shall be held to be payments on account o f the sinking
s 3694. f uncl created by section thirty-six hundred and ninetyfour o f the Revised Statutes:

LAWS

C O N C E R N IN G

257

F IN A N C E .

And provided further, That the two per centum bonds lss^
to be issued under the provisions o f this act shall be issued

d parb
at
e

at not less than par, and they shall be numbered consecu­
tively in the order o f their issue, and when payment is
made the last numbers issued shall be first paid, and this
order shall be followed until all the bonds are paid, and
whenever any o f the outstanding bonds are called for
payment interest thereon shall cease three months after

in te re s t

such ca ll; and there is hereby appropriated out ot any ca lled

to

fo r pay-

money in the Treasury not otherwise appropriated, to ment'
effect the exchanges o f bonds provided for in this act, a
sum not exceeding one-fifteenth o f one per centum o f the
face value o f said bonds, to pay the expense of preparing
and issuing the same and other expenses incident thereto.

Approved, March 14, 1900.
N o t e . — The

act o f May 26, 1906 (34 Stat. L., 202), amends sec­
tion 6 o f the above act to read as fo llo w s :
“ Provided, That whenever and so long as the gold coin held in P ro v iso ,
the reserve fund in the Treasury fo r the redemption o f United If Isc0
&
ljn
’
States notes and Treasury notes shall fall and remain below fifty $ 5 0 , 0 0 0 , U 0 U .
feJXe
million dollars the authority to issue certificates as herein pro­
vided shall be suspended, but the Secretary o f the Treasury is
directed to coin, within reasonable time, any and all gold bullion B u llio n to be
held in said reserve fund in excess o f fifty million dollars.”

A C T O F J U N E 6, 1900.
C h a p . 780.— A n act to create a commission to make settle-

31 stat.

274.

l .,

ment and adjustment with the Sioux City and Pacific
Railroad Company of its indebtedness to the Govern­
ment of the United States.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, T hat the Secretary o f the Treasury, the Secre- ^sioux c Jt y
tary o f the Interior, and the Attorney-General o f the Railroad
TT

.

’

,

*
*

C o m m is s io n

United States are hereby authorized and empowered t o to adjust in*
/
*
G b C G S OI
GtG lD S
make settlement and adjustment o f the Sioux City and to ^ G o ve rn m e n t
Pacific Railroad Com pany’s indebtedness to the Govern­
ment o f the United States; and to that end may receive
and determine upon any proposition or propositions from
said Sioux City and Pacific Railroad Company or from
any other person or persons, corporation or corporations,
and may sell or assign the mortgage given by said com­
pany to the United States and do any and all things




_

p0Wers.

258

N A T IO N A L

M ONETARY

C O M M IS S IO N .

proper and necessary to effect such settlement and ad­
justment and secure to the United States the largest sum
possible in the payment o f said indebtedness up to the
amount thereof: Provided , T hat they deem the same
for the best interests o f the Government; and when such

P r o v i s o . full

tion,

etc.

settlement is approved by the President it shall become
operative, and the Attorney-General shall make the nec­
essary acquittances to said railroad company.
Approved, June 6, 1900.
A C T O F J U N E 6, 1900.
3i stat. l ., C h a p . 797.— A n act to -provide better facilities for the

safe-keeping and, disbursement of public moneys in the
Philippine Islands and in the islands of Cuba and
Porto Rico.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress asP o r t o sembled, T hat the Secretary o f the Treasury is hereby

Cuba,

ippinesD PhU authorized to designate one or more banks or bankers in
d
the Philippine Islands and in the islands o f Cuba and
m p or£0 p i co
onwhich public moneys may be deposited:

o f d e p o s ito rie s
fo r p u b iic

Provided , T hat the banks or bankers thus designated shall

P rov isos.

give satisfactory security tor the safe-keeping and prompt

p osit.

payment o f the public moneys so deposited by depositing
in the Treasury, United States bonds to an amount not
less than the aggregate sum at any time on deposit with
to‘ c ilb
P aCatlonsuc^ banks or bankers: A nd p-rovided further , That this
A ct shall apply to Cuba only while occupied by the
United States.
Approved, June 6, 1900.
J O I N T R E S O L U T I O N O F J U N E 6, 1900.
71|i stat. L- (N o. 32.) Joint resolution to authorize and empower the

Banco Espahol de Puerto Rico (Spanish Bank of Porto
Rico) to amend its by-laws.
Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled,
- B an co E sp a-

itico

am en d
la w s.




That the Banco Espahol de Puerto Rico (Spanish Bank

may of Porto Rico) be, and the said institution is herebv,

its

by-

.

7

7

.

- ’

authorized and empowered to amend article one o f its
by-laws, which said by-laws are referred to in, and pub­
lished with, the royal (Spanish) decree dated M ay fifth,

LAWS

C O N C E R N IN G

259

F IN A N C E .

anno Domini eighteen hundred and eighty-eight, grant­
ing a concession to said bank, so as to change its name
to that of Bank of Porto Rico (Banco de Puerto Rico)
and to substitute for its capital in pesos the equivalent
in money o f the United States at the ratio established
by law, and to amend article thirty-one o f said by-laws,
so that to be a councilor o f said bank it may not be
necessary to be a Spaniard, and further to m odify and
amend said by-laws, but always in accordance with ex­
isting law, and subject to the approval o f the governor
o f Porto R ic o : Provided, That nothing herein contained

01

shall be held to enlarge, or to permit the enlargement, enlarsedin any manner or to any extent, o f any o f the rights,
powers, or privileges granted to said Banco Espanol de
Puerto Rico (Spanish Bank o f Porto Rico) by the Gov­
ernment o f S p a in : A n d provided further, That nothing
tr oV unherein contained shall be held in any wise to limit o r abridgedcurtail any power which the Government or the Con­
gress of the United States possesses in respect o f said
bank, its powers, privileges, or franchises.
Approved, June 6, 1900.
A C T O F M A R C H 3, 1901.
C h a p . 871.— An act to amend, section fifty-one hundred l4|| stat- L-

and fifty-three of the Revised Statutes of the United
States.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That section fifty-one hundred and fifty-three of
the Revised Statutes o f the United States be amended
to read as follow s:
“ S ec. 5153. A ll national banking associations, d e sig -ba!^ ^ id ° 0|1
°
!
nated for that purpose by the Secretary of the Treasury, m oneys,1 e xcep t
shall be depositaries o f public money, except receipts ^ pt‘ 0 ms re'
s
from customs, under such regulations as may be pre­
scribed bv the Secretary, but receipts derived from d u t i e s — e x ce p tio n
•

^

.

. ,

,

^ ’

..

t

i

a p p lic a b le

not
to

°n imports in Alaska, the Hawaiian Islands, and other H a w a i i ,

elands under the jurisdiction o f the United States may ‘ ^ s., ^sec.
deposited in such depositaries subject to such regulalions; and such depositaries may also be employed as
financial agents o f the Government; and they shall per­
form all such reasonable duties as depositaries o f public
moneys and financial agents o f the Government as may
be required o f them.




The Secretary o f the Treasury

am ended,

260

N A T IO N A L

M ONETARY

C O M M IS S IO N .

shall require the associations thus designated to give
satisfactory security, by the deposit of United States
bonds and otherwise, for the safe-keeping and prompt
payment o f the public money deposited with them, and
for the faithful performance o f their duties as financial
agents o f the Government.

A n d every association so

designated as receiver or depositary of the public money
shall take and receive at par all of the national currency
bills, by whatever association issued, which have been
paid into the Government for internal revenue or for
loans or stocks.”
Approved, March 3, 1901.
A C T O F J U N E 28, 1902.
^^32 stat.

l„

C h a p . 1302.— A n act to 'provide for the construction of a

canal connecting the waters of the Atlantic and Pacific
oceans.

B ond i s sue
S ec . 8.
a u t h o r i z e d to
.
defray
e x - thonzed
penses.
.

T hat the Secretary of the Treasury is hereby au-

.

to borrow on the credit ot the united States
.

.

from time to time, as the proceeds may be required to

defray expenditures authorized by this A c t (such pro­
ceeds when received to be used only for the purpose of
meeting such expenditures), the sum o f one hundred and
thirty million dollars, or so much thereof as may be neces­
sary, and to prepare and issue therefor coupon or regis­
tered bonds o f the United States in such form as he may
tionse n ° m in a

Prescribe, and in denominations of twenty dollars or some
multiple o f that sum, redeemable in gold coin at the pleasuse o f the United States after ten years from the date o f

in te re s t.

their issue, and payable thirty years from such date, and
bearing interest payable quarterly in gold coin at the rate
of two per centum per annum ; and the bonds herein au-

taxesem pt

from thorized shall be exempt from all taxes or duties o f the
United States, as well as from taxation in any form by or

P ro v iso .

under State, municipal, or local authority: Provided.

That said bonds may be disposed o f by the Secretary o f the
Mi
price. ni mum Treasury at not less than par, under such regulations as he
may prescribe, giving to all citizens o f the United States
E xpenses.




an equal opportunity to subscribe therefor, but no commissions shall be allowed or paid thereon; and a sum not
exceeding one-tenth o f one per centum o f the amount o f

the bonds herein authorized is hereby appropriated, out

LAW S

C O N C E R N IN G

261

F IN A N C E .

of any money in the Treasury not otherwise appropriated,
to pay the expense of preparing, advertising, and issuing
the same.
Approved, June 28, 1902.
A C T O F J U L Y 1, 1902.
C h a p . 1369. — A n act temporarily to provide for the ad- gg32 stat.

l .,

ministration of the affairs of civil government in the
Philippine Islands, and for other purposes.
4
c

♦

*

*

*

S ec . 85. That the treasury o f the Philippine Islands of
p°s^ ie®
1t°r1
and such banking associations in said islands with a m
oney,
paid up capital o f not less than two million dollars and
chartered by the United States or any State thereof as
may be designated by the Secretary o f W a r and the
Secretary of the Treasury o f the United States shall be
depositories o f public money o f the United States, subject
to the provisions o f existing law governing such deposi­
tories in the United States: Provided, That the Treasury

Proviso,

o f the government o f said islands shall not be required tobondsfetcifnot
deposit bonds in the Treasury o f the United States, o r requlredto give other specific securities for the safe-keeping of
public money except as prescribed, in his discretion, by
the Secretary of W ar.
*

4
c

*

*

*

Approved, July 1, 1902.
A C T O F D E C E M B E R 21, 1905.
C h a p . 3. — A n act supplemental to an act entitled “ An. act

34 stat. l ., 5.

to provide for the construction of a canal connecting
the waters of the Atlantic and Pacific oceans,” approved
June twenty-eighth, nineteen hundred and two, and
making appropriation for Isthmian Canal construction,
and for other purposes.
Be it enacted by the Senate and House of Representa­
tives of the United States of Amenca in Congress assem­
bled, T hat the two per cent bonds o f the United States naI
Istbmian caauthorized by section eight o f the A ct entitled “ A n A ct
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




262

N A T IO N A L

a<fordedtS ondsa^
be

M ONETABY

C O M M IS S IO N .

rights and privleges accorded by law to other two

ItructJn o °n Per cen^ ^onds
fC

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 sec484 o1' 32, p’ tion eight o f said A c t approved June twenty-eight, nine­
teen hundred and two, to secure its circulating notes, shall
T a xes.

pay to the Treasurer o f the United States, in the months
Gf January and July, a tax o f one-fourth o f one per cent
each h alf 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 of
existing taxes on its notes in circulation imposed by

5214 p Tool0 ‘ sec^ on fifty-two hundred and fourteen of the Revised
Statutes.
(Section 2 appropriates the sum of eleven million dol­
lars to continue the construction o f the Isthmian C a n a l:
“ Provided , That all expenditures from the appropriation
herein made shall be reimbursed to the Treasury o f the
United States out o f the proceeds of the sale o f bonds
484*01 ’ 32, p-authorized in section eight o f the said act approved June
twenty-eighth, nineteen hundred and two.”
(Section 3 requires reports from officers in Canal Zone,
including an itemized account o f all moneys received and
expended, etc.)
Approved, December 21, 1905.
N o t e .— The proviso in section 2 o f the above act is repeated in
the follow ing acts: February 27, 1906 ( 34 Stat. L., 33) ; June 30,
1906 ( 34 Stat. L., 762) ; March 4, 1907 (34 Stat. L., 1369) ; May
27, 1908 ( 35 Stat. L., 386) ; March 4, 1909 ( 35 Stat. L., 1025).

A C T O F J U N E 25, 1906.
46o4 Stat’ L’’ C'HAP' 3536 .— A n act to m odify the requirements of the

act entitled “A n act to promote the education of the
blind” approved March third, eighteen hundred and
seventy-nine.
Be it enacted by the Senate and House of Representa­
tives o f the United States of America in Congress assernthe biindtion

° f bled. That the sum o f two hundred and fifty thousand
dollars heretofore invested in United States registered

matured^bondsfour Per centum bonds, funded loan o f nineteen hundred
“ in d e a trust an(f seven>inscribed “ Secretary o f the Treasury, trustee—
d
interest to the Treasurer o f the United States for credit




of

appropriation

4T o

promote

the education

of

the

blind,r” shall upon the maturity and redemption o f said

LAWS

C O N C E R N IN G

263

F IN A N C E .

bonds on the first day o f July, nineteen hundred and
seven, in lieu of reinvestment in other Government bonds,
be set apart and credited on the books o f the Treasury
Department as a perpetual trust fu n d ; and the sum o f
ten thousand dollars, being equivalent to four per centum
on the principal o f said trust fund, be, and the same is
hereby, appropriated, out o f any moneys in the Treasury
not otherwise appropriated, and such appropriation shall
be deemed a permanent annual appropriation and shall ^ P e r m a n e n t
be expended in the manner and for the purposes author- pri ati o^' i n
•

A

A

ized by the A ct approved March third, eighteen hundred

pltice o f interest.

and seventy-nine, entitled “ A n act to promote the educa­
tion o f the blind,” approved March third, eighteen hun- 46^ 01 • 20- pdred and seventy-nine.
Approved, June 25, 190(>.
A C T O F M A Y 30, 1908.
C h a p . 229.— A n act to amend the national hanking laws. 54|5 stat- L*

*

*

*

*

S ec. 15. That all national banking associations desig- ^ “teresyjayj
nated as regular depositaries o f public money shall pay ^moneys'pub
upon all special and additional deposits made by the
Secretary of the Treasury in such depositaries, and all
such associations designated as temporary depositaries of
public money shall pay upon all sums o f public money
deposited in such associations interest at such rate as the
Secretary o f the Treasury may prescribe, not less, how­
ever, than one per centum per annum upon the average
monthly amount o f such deposits: Provided , however,

P ro v iso s.

T hat nothing contained in this A ct shall be construed to
change or m odify the obligation o f any association or
any of its officers for the safe-keeping o f public m oney: ^ ^ e ^ e p in g

Prodded further , That the rate of interest charged upon tergg°lform ln'
such deposits shall be equal and uniform throughout the
United States.
*

*

*

*

*

S ec . IT. That a Commission is hereby created, to be

M o n e ta ry °co m -

called the “ National Monetary Commission,” to be com- ated.lon cre
posed of nine members o f the Senate, to be appointed by ment p o , n t ‘
the Presiding Officer thereof, and nine members o f the
House of Representatives, to be appointed by the Speaker
thereof; and any vacancy on the Commission shall be
tilled in the same manner as the original appointment.




264

N A T IO N A L

In q u iry as to
ch an ges In m on ­
e t a r y system ,
etc.

M ONETARY

C O M M IS S IO N .

S e c . 18. That it shall be the duty of this Commission to

inquire into and report to Congress at the earliest date
practicable, what changes are necessary or desirable in
the monetary system o f the United States or in the laws
relating to banking and currency, and for this purpose
they are authorized to sit during the sessions or recess of

A u th o rity .

Congress, at such times and places as they may deem
desirable, to send for persons and papers, to administer
oaths, to summons and compel the attendance of witnesses,
and to employ a disbursing officer and such secretaries,

O fficials.

experts, stenographers, messengers, and other assistants
as shall be necessary to carry out the purposes for which
said Commission was created.

The Commission shall have

the power, through subcommittee or otherwise, to examine

P ow ers.

witnesses and to make such investigations and examina­
tions, in this or other countries, o f the subjects committed
to their charge as they shall deem necessary.
A pp roprla

S e c . 19. That a sum sufficient to carry out the purposes

tion.

o f sections seventeen and eighteen o f this A ct, and to pay
the necessary expenses o f the Commission and its mem­
bers, is hereby appropriated, out of any money in the
Treasury not otherwise appropriated.
I m m e d ia te ly

available.

Said appropria­

tion shall be immediately available and shall be paid out
on the audit and order of the chairman or acting chairman
o f said Commission, which audit and order shall be con­

A cco u n is.

clusive and binding upon all Departments as to the cor­
rectness o f the accounts o f such Commission.

T e r m in a t io n
o f act.

S e c . 20. That this A ct shall expire by limitation on the
thirtieth day o f June, nineteen hundred and fourteen.

Approved, M ay 30, 1908.
A C T O F M A R C H 4, 1909.
^^35 stat.

l„

C

298.— A n act making appropriations to supply de­
ficiencies in the appropriations for the fiscal year ending
June thirtieth, nineteen hundred and nine, and for prior
years, and for other purposes.

hap.

*
National
M on eta ry C om ­
m ission .

*

*

*

*

That the members o f the National Monetary Commis­
sion, who were appointed on the thirtieth day o f M ay,
nineteen hundred and eight, under the provisions o f sec­
tion seventeen of the A ct entitled “ A n A ct to amend the
national banking laws,” approved M ay thirtieth, nineteen

C on tin u ed .




hundred and eight, shall continue to constitute the N a ­
tional Monetary Commission until the final report o f said

LAW S

C O N C E R N IN G

265

F IN A N C E .

commission shall be made to Congress; and said National
Monetary Commission are authorized to pay to such o f
its members as are not at the time in the public service

t io n ° m p e n sa

and receiving a salary from the Government, a salary
equal to that to which said members would be entitled if
they were members of the Senate or House o f Representa­
tives.

A ll Acts or parts o f A cts inconsistent with this

provision are hereby repealed.
*

*

*

*

*

Approved, March 4, 1909.
A C T O F A U G U S T 5, 1909.
C

G.— A n act to provide revenue, equalize duties and
encourage the industries of the United Stgtes , and for
other purposes.

hap.

*

*

*

*

*

S e c . 39. That the Secretary o f the Treasury is hereby n lranama Ca'
a
authorized to borrow on the credit o f the United States A d d itio n a l is.

sue

of

bonds

from time to time, as the proceeds may be required to f.o r ^construcdefray expenditures on account o f the Panama Canal and
to reimburse the Treasury for such expenditures already
made and not covered by previous issues of bonds, the
sum o f two hundred and ninety million five hundred and
sixty-nine thousand dollars (which sum together with the

A m ou n t,

484.

eighty-four million six hundred and thirty-one thousand
nine hundred dollars already borrowed upon issues o f
two per cent bopds under section eight o f the A c t of
June twenty-eighth, nineteen hundred and two, equals the
estimate o f the Isthmian Canal Commission to cover the
entire cost o f the Canal from its inception to its comple­
tio n ), and to prepare and issue therefor coupon or regis­
tered bonds o f the United States in such form as he may
prescribe, and in denominations o f one hundred dollars, tio^gnominar
five hundred dollars, and one thousand dollars, payable
fifty years from the date o f issue, and bearing interest P a y a b le in
payable quarterly in gold coin at a rate not exceeding ' interest.'
three per centum per annum ; and the bonds herein au­
thorized shall be exempt from all taxes or duties o f the .
u n it e d

E x e m p tio n

states, as well as from taxation in any form by or

under State, municipal, or local authority: Provided ,
iat said bonds may be disposed o f by the Secretary o f
the 1 reasury at not less than par, under such regulations
as he mav nrescribe. giving to all citizens o f the United
15712°— to------10




d is p o s a l

266

N A T IO N A L

M ONETARY

C O M M IS S IO N .

States an equal opportunity to subscribe therefor, but no
commissions shall be allowed or paid thereon; and a sum
not exceeding one-tenth o f one per centum o f the amount
A p p r o p ria tio n

for expenses.

o f the bonds herein authorized is hereby appropriated,
.

.

out or any money in the Treasury not otherwise appro­
priated, to pay the expenses o f preparing, advertising,

iss u e o f 2 p er and
ce n t b on d s r e - .

pealed.

^

484.

issuing the sam e: and the authority contained in sec0

.

tion eight or the A c t of June twenty-eighth, nineteen

’ P hundred and two, for the issue of bonds bearing interest
'
at two per centum per annum, is hereby repealed.
S e c . 40. T hat section thirty-two o f an A ct, entitled,

“ A n A c t providing ways and means to meet war expendi­
tures, and for other purposes,” approved June thirteenth,
eighteen hundred and ninety-eight, be, and the same is
hereby, amended to read as follow s:
C ertifica tes o f
“ That the Secretary of the Treasury is authorized to

indebtedn ess.
.
.
.
v o 1. 30 , p. borrow from time to time, at a rate of interest not exceed- 466, amended. .
issu e a u th or- m g three per centum per annum, such sum or sums as,
ized a t 3 p
e
r
?
cen t.
m his judgment, may be necessary to meet public expendi­

tures, and to issue therefor certificates o f indebtedness in
such form as he may prescribe and in denominations of
fifty dollars or some multiple of that su m ; and each cerF a y a b i e w i t h - tificate
in on e yea r.

so issued shall be payable, with the interest ac-

.

crued thereon, at such time, not exceeding one year from
the date o f its issue, as the Secretary o f the Treasurer
may prescribe: Provided. That the sum o f such certifi-

Proviso.

cates outstanding shall at no time exceed two hundred

creased.

L a ws

as

to millions o f dollars: and the provisions of existing law

counterfeiting,
e tc,, a p p lica b le,




.

’. .

A

e

respecting counterfeiting and other fraudulent practices
are hereby extended to the bonds and certificates of
indebtedness authorized by this A c t.”
*
*
*
*
*
Approved, August 5, 1909.

(5.05 p. m .)

[P U B L I C — X o . 33.]

A n act 'prescribing certain provisions and conditions un­
der which bonds and certificates of indebtedness of the
United States may be issued, and for other purposes.
Be it enacted by the Senate and House of Representa­
tives of the United States o f America in Congress assem­
bled, That any bonds and certificates o f indebtedness o f
the United States hereafter issued shall be payable, prin­
cipal and

interest, in United States gold coin

of

the

pres-

LAWS CONCERNING FINANCE.

ent standard o f value; and that such bonds may be issued
in such denominations as may be prescribed by the Secre­
tary o f the Treasury.
S e c . 2. That any certificates of indebtedness hereafter

issued shall be exempt from all taxes or duties o f the
United States, as well as from taxation in any form b y ,
or under state, municipal, or local authority; and that
a sum not exceeding one-tenth o f one per centum of the
amount of any certificates o f indebtedness issued is hereby
appropriated, out o f any money in the Treasury not
otherwise appropriated, to pay the expenses o f prepar­
ing, advertising, and issuing the same.
S e c . 3. T hat all acts or parts o f acts inconsistent with

the provisions o f this act are hereby repealed.
Approved, February 4, 1910.




267




I




BANKING.




A C T O F F E B R U A R Y 25, 1791.
C h a p . X . — A n act to incorporate the subscribers to the 19* stat. L -

Bank of the United States.

[Expired.]

Whereas, it is conceived that the establishment o f a

Pream
ble.

Bank for the United States, upon a foundation sufficiently
extensive to answer the purposes intended thereby, and at
the same time upon the principles which afford adequate
security

for

an

upright

and

prudent

administration

thereof, will be very conducive to the successful conduct­
ing o f the national finances; will tend to give facility to
the obtaining of loans, for the use o f the Government, in
sudden emergencies; and will be productive o f consider­
able advantage to trade and industry in general: There­
fore,
S ection 1. Be is enacted by the Senate and House of
Bepresentatives of the United States of America in Con­
gress assembled, T hat a Bank o f the United States shall

1

.

Estabiish-

m e n t o f a

be established; the capital stock whereof shall not exceedBank

of the

ten millions o f dollars, divided into twenty-five thousandand
i

T i l l

!

shares, each share being four hundred dollars; and

amount
and d iv isio n of
that its stock, and

subscriptions, towards constituting the said stock, shall, scribing,
on the first Monday o f A p ril next, be opened at the city
o f Philadelphia, under the superintendence o f such per­
sons, not less than three, as shall be appointed for that
purpose by the President o f the United States (who is
hereby empowered to appoint the said persons accordlngly) ; which subscriptions shall continue open, until th e 0
whole o f the said stock shall have been subscribed.
S ec. 2. And be it further enacted, T hat it shall be law- beB-sUs c
bb°^ed0
ful for any person, co-partnership, or body politic, to
subscribe for such or so many shares, as he, she, or they
shall think fit, not exceeding one thousand, except as shall
be hereafter directed relatively to the United States; a n d tioPg ° p ° o1j
r
r(
that the sums, respectively subscribed, except on behalf o f
public debt
the United States, shall be payable one fourth in gold and*° be^subscrib-




270

N A T IO N A L

M ONETARY

C O M M IS S IO N .

silver, and three fourths in that part of the public debt,
which, according to the loan proposed in the fourth and
fifteenth sections o f the act, entitled “ A n act making pro­
vision for the debt o f the United States,” shall bear an
accruing interest, at the time o f payment, o f six per
centum per annum, and shall also be payable in four
equal parts, in the aforesaid ratio o f specie to debt, at the
w h e n t o be distance o f six calendar months from each other; the first
paid.

,

e i i ,

•

■

.

.

7

wdiereof shall be paid at the time o f subscription.
(Section 3 makes the subscribers a corporation by the
name o f “ the president, directors, and company o f the
Bank o f the United States,” to continue until March 4,
1811; and empowers them to hold property not exceeding
fifteen millions o f dollars, including the amount o f their
capital stock, and to make all convenient regulations, and
to do all necessary things, subject to the limitations and
provisions o f this act.
(Section 4 provides for the annual election o f twentyfive directors, and requires the directors to choose one o f
their number as president.
(Section 5 requires that as soon as four hundred thou­
sand dollars, in gold and silver, shall have been received
from the subscribers, a time shall be fixed for the election
o f directors, and the operations o f the bank shall then
begin at the city o f Philadelphia.
(Section 6 empowers the directors to employ the neces­
sary officers, clerks, and servants, and to govern the
affairs o f the corporations.)

constitution. °f

S ec. ^
^e ^ further enacted, That the following
rules, restrictions, limitations and provisions, shall form

and be fundamental articles of the constitution of the said
corporation, viz.
h oid ers°h ow kto"

T The number o f votes to which each stockholder shall

p rop ortion Whto

entitled, shall be according to the number o f shares he

scribed andb "

hol d, in the proportions follow ing: T hat is to say,
for one share, and not more than two shares, one v ote: for




every two shares above two, and not exceeding ten, one
vote: for every four shares above ten, and not exceeding
thirty, one vote: for every six shares above thirty, and not
exceeding sixty, one vote: for every eight shares above
sixty, and not exceeding one hundred, one vote: and for
every ten shares above one hundred, one vote:— But no
person, co-partnership, or body politic shall be entitled to
a greater number than thirty votes.

A n d after the first

LAW S

C O N C E R N IN G

271

B A N K IN G .

election, no share or shares shall confer a right of suffrage,
which shall not have been holden three calendar months
previous to the day o f election. Stockholders actually
resident w ithin the United States, and none other, mav incertain cases
T
.

.

.

.

may vote
proxy.

vote in elections by proxy.

I I . Not more than three fourths o f the directors in

Num
ber

by

of

electors eli^l*

office, exclusive o f the president, shall be eligible for the we for^ensuing
next succeeding year: but the director, who shall be presi­
dent at the time o f an election, may always be re-elected.
I I I . None but a stockholder, being a citizen of the who as directUnited States, shall be eligible as a director.
I V . No director shall be entitled to any emolument
unless the same shall have been allowed by the stock­
holders at a general meeting.
®

The stockholders shall
_

c o mpensation to be al-

.

make such compensation to the president, for his extraor- lowed,
dinary attendance at the bank, as shall appear to them
reasonable.
.

V . N ot less than seven directors shall constitute a board
.

.

.

.

.

.

How to constitute a board.

tor the transaction o f business, o f whom, the president

shall always be one, except in case o f sickness, or necessary
absence; in which case his place may be supplied by any
other director, whom he, by writing under his hand, shall
nominate for the purpose.
V I . A n y number o f stockholders, not less than sixty,
*'

5

Nppbfr

of

J 7stockho 1d e r 8

who, together, shall be proprietors o f two hundred shares ^“ f^'^eeting0
or upwards, shall have power at any time to call a general etc.
meeting o f the stockholders, for purposes relative to the
institution, giving at least ten weeks notice, in two pub­
lic gazettes o f the place where the bank is kept, and
specifying, in such notice, the object or objects o f such
meeting.
V I I . Every cashier or treasurer, before he enters upon tre^asbir ra^
eg
the duties o f his office, shall be required to give
give bond,

bond,

with two or more sureties, to the satisfaction o f the di­
rectors, in a sum not less than fifty thousand dollars, with
condition for his good behaviour.
V I I I . The lands, tenements and hereditaments which it ^Limnation of
shall be lawful for the said corporation to hold, shall be
only such as shall be requisite for its immediate accom­
modation in relation to the convenient transacting o f its
business, and such as shall have been bona -fide mortgaged
to it by way o f security, or conveyed to it in satisfaction
o f debts previously contracted in the course o f its dealm gs, or purchased at sales upon judgments which shall
have been obtained for such debts.




272

N A T IO N A L

M ONETARY

C O M M IS S IO N .

they °shanebat I X . T h e total amount of the debts, which the said corany time owe. poration shall at any time owe, whether by bond, bill,
note, or other contract, shall not exceed the sum o f ten
millions o f dollars, over and above the monies then
actually deposited in the bank for safe keeping, unless
the contracting o f any greater debt shall have been prein case of viouslv authorized by a law o f the United States. In

excess, direct„
.
,
.
, . .
.
.
ors accountable case o f excess, the directors, under whose administration it
padties and

shall happen, shall be liable for the same, in their natural
and private capacities; and an action o f debt may, in
such case, be brought against them, or any o f them, their
or any o f their heirs, executors or administrators, in any
court o f record o f the United States, or o f either o f them,by
any creditor or creditors o f the said corporation, and may

cin'edbe prose'b e prosecuted to judgment and execution; any condition,
covenant, or agreement to the contrary notwithstanding.
But this shall not be construed to exempt the said corporafavorCoftabsen^ tion, or the lands, tenements, goods or chattels of the

excess* tim °f same> from being also liable for and chargeable with the
e
said excess. Such o f the said directors, who may have
been absent when the said excess was contracted or cre­
ated, or who may have dissented from the resolution or
act w hereby the same was so contracted or created, may
T
respectively exonerate themselves from being so liable,
by forthwith giving notice o f the fact, and of their ab­
sence or dissent, to the President o f the United States, and
to the stockholders, at a general meeting, which they shall
have power to call for that purpose.
may^sen^X

T h e said corporation may sell any part o f the pub-

partdebof ain d l i c debt whereof its stock shall be composed, but shall not
ts
stock, but not b e at liberty to purchase any public debt whatsoever; nor
Durcnase glc
«/
x
x
.
*

shall directly or indirectly deal or trade in any thing, ex­
cept bills o f exchange, gold or silver bullion, or in the
sale o f goods really and truly pledged for money lent and
not redeemed in due tim e; or o f goods -which shall be the
Neither shall the said corporation

and take not produce o f its lands.

per c e n t per take more than at the rate o f six per centum per annum,
annum.
.

for or upon its loans or discounts.
wha°tw a
obdec'ts
X I . No loan shall be made by the said corporation, for
to make loans, the use or on account o f the Government o f the United




States, to an amount exceeding one hundred thousand
dollars, or o f any particular State, to an amount exceed­
ing fifty thousand dollars, or o f any foreign prince or
state, unless previously authorized by a law o f the United
States.

LAWS

C O N C E R N IN G

B A N K IN G .

X I I . The stock o f the said corporation shall be assign- et^ n )1 s •
^hfJ 111
1
able and transferable, according to such rules as shall be
instituted in that behalf, by the laws and ordinances of
the same.
X I I I . The bills obligatory and o f credit, under the
seal o f the said corporation, which shall be made to any
person or persons, shall be assignable by indorsement be assignable,
thereupon, under the hand or hands o f such person or
persons, and o f his, her, or their assignee or assignees,
and so as absolutely to transfer and vest the property
thereof in each and every assignee or assignees succes­
sively, and to enable such assignee or assignees to bring and
and maintain an action thereupon in his, her, or their
own name or names.
A n d bills or notes, which may be issued by order o f the bins to be ob.

^

J

said corporation, signed by the president, and counter­

ligatory.

signed by the principal cashier or treasurer thereof, prom­
ising the payment o f money to any person or persons, his,
her, or their order, or to bearer, though not under the seal
o f the said corporation, shall be binding and obligatory
upon the same, in the like manner, and with the like
force and effect, as upon any private person or persons, if
issued by him or them, in his, her, or their private or
natural capacity or capacities; and shall be assignable
and negotiable, in like manner, as if they were so issued
by such private person or persons— that is to say, those
which shall be payable to any person or persons, his, her,
or their order, shall be assignable by indorsement, in like
manner, and w ith'the like effect, as foreign bills o f ex­
change now are; and those which are payable to bearer,
shall be negotiable and assignable by delivery only.
X I V . H a lf yearly dividends shall be made o f so much
.

o f the profits o f the bank, as shall appear to the directors
advisable; and once in every three years, the directors
shall lay before the stockholders, at a general meeting,
for their information, an exact and particular statement
o f the debts, which shall have remained unpaid after the
expiration o f the original credit, for a period o f treble
the term o f that credit ; and o f the surplus o f profit, if
any, after deducting losses and dividends. I f there shall
be a failure in the payment o f any part o f any sum, sub­
scribed by any person, co-partnership, or body politic, the
party failing shall lose the benefit o f any dividend, which
may have accrued, prior to the time for making such
payment, and during the delay o f the same.




Dividends of
profits made.

274

N A T IO N A L

o
ffices may

be established

M ONETARY

C O M M IS S IO N .

XV. I t shall be lawful for the directors aforesaid, to
•

within united establish offices wheresoever they shall think fit, within
count’and de-the United States, for the purposes o f discount and de’ posit only, and upon the same terms, and in the same
manner, as shall be practised at the bank; and to commit
the management o f the said offices, and the making o f the
said discounts, to such persons, under such agreements,
and subject to such regulations as they shall deem proper;
not being contrary to law, or to the constitution o f the
bank.
officer at the
X V I . The officer at the head of the Treasury Depart-

head of th e
.
„
.
.
Treasury to be ment o f the United States, shall be furnished, from time
furnished with
.
'
statements.
to time, as often as he may require, not exceeding once a

week, with statements o f the amount o f the capital stock
o f the said corporation, and o f the debts due to the sam e;
o f the monies deposited therein; of the notes in circula­
tion, and o f the cash in hand; and shall have a right to
inspect such general accounts in the books of the bank,
Not of pri- as shall relate to the said statements.
vftt© nature

Provided , That

this shall not be construed to imply a right o f inspecting
the account o f any private individual or individuals with
the bank.
Penalty for
S ec . 8. And be it further enacted, That if the said corbuying or sell.
'
7
ing goods, etc. poration, or any person or persons for or to the use o f the

same, shall deal or trade in buying or selling anv goods,
wares, merchandise, or commodities whatsoever, contrary
to the provisions of this act, all and ev#rv person and per­
sons, by whom any order or direction for so dealing or
trading shall have been given, and all and every person
and persons who shall have been concerned as parties or
agents therein, shall forfeit and lose treble the value o f the
goods, wares, merchandises, and commodities, in which
such dealing and trade shall have been; one half thereof
to the use o f the informer, and the other half thereof to
the use o f the United States, to be recovered with costs
o f suit.
m a*yW be*0 a ^ S ec .
d
And be it further enacted, That i f the said corvanced or lent, poration shall advance or lend any sum, for the use or on




account o f the Government o f the United States, to an
amount exceeding one hundred thousand dollars; or o f
any particular State to an amount exceeding fifty thou­
sand dollars; or o f any foreign prince or state, (unless
previously authorized thereto by a law of the United
States,) all and every person and persons, by and with
whose order, agreement, consent, approbation, or conniv-

LAW S

C O N C E R N IN G

B A N K IN G .

275

ance, such unlawful advance or loan shall have been made,
upon conviction thereof, shall forfeit and pay, for every
such offence, treble the value or amount of the sum or
sums which shall have been so unlawfully advanced or
lent; one fifth thereof to the use o f the informer, and the
residue thereof to the use o f the United States; to be dis­
posed o f by law and not otherwise.
S ec . 10. And be it further enacted, That the bills or bhis or notes
'
. .
7
m receivable
ade
notes o f the said corporation, originally made payable, or |t tesu nited
^
which shall have become payable on demand, in gold and 18JO ch 43
silver coin, shall be receivable in all payments to the
United States.
S ec . 11. And be it further enacted, That it shall be m
^ebyrunited
lawT
ful for the President o f the United States, at any time ? tatef\ h°w t0
or times, wfithin eighteen months after the first day o f
A p ril next, to cause a subscription to be made to the stock
o f the said corporation, as part o f the aforesaid capital
stock o f ten millions o f dollars, on behalf of the United
States, to an amount not exceeding twy millions o f dol­
o
lars; to be paid out o f the monies which shall be bor­
rowed by virtue o f either o f the acts, the one entitled
“ A n act making provision for the debt o f the United

179° * ch- 34-

S ta tes;” and the other entitled “ A n act making provision
for the reduction o f the public d ebt;” borrowing of the

1790, ch. 47.

bank an equal sum, to be applied to the purposes, for
which the said monies shall have been procured; reim­
bursable in ten years, by equal annual instalments; or
at any time sooner, or in any greater proportions, that
the Government may think fit.
S ec . 12. And be it further enacted, That no other bank No other
'
.
1
.
.
bank to be esshall be established by any future law of the United tabiished.
States, during the continuance o f the corporation hereby
created; for which the faith of the United States is
hereby pledged.
Approved, February 25, 1791.
(Paragraph X I o f section 7 o f this act forbids the
loaning o f money by the Bank to the United States in a
greater sum than one hundred thousand dollars; but sub­
sequent acts giving authority for the borrowing o f money
authorize the bank to loan the amounts notwithstanding
the said prohibition.
(See act of February 28, 1793, chap. 18, sec. 3, vol. 1,
Stat. L ., p. 3 2 9 ; act o f March 20, 1794, chap. 8, sec. 1,
vol. 1, Stat. L ., p. 3 4 5 ; act o f June 9, 1794, chap. 63, sec.
2, vol. 1, Stat. L ., p. 3 9 5 ; act o f December 18, 1794, chap.




N A T IO N A L

276

M ONETARY

C O M M IS S IO N .

4, sec. 2, vol. 1, Stat. L ., p. 4 0 4 ; act o f February 21, 1795,
chap. 25, sec. 1, vol. 1, Stat. L ., p. 4 1 8 ; act o f March 3,
1795, chap. 45, sec. 19, vol. 1, Stat. L ., p. 4 3 8 ; act of
March 3, 1795, chap. 46, sec. 6, vol. 1, Stat. L ., p. 4 3 9 ; act
o f M ay 30, 1796, chap. 41, sec. 5, vol. 1, Stat. L ., p. 4 8 7 ;
act o f M ay 3 1 ,1 7 9 6 , chap. 44, sec. 1, vol. 1, Stat. L ., p. 4 8 8 ;
act o f June 1, 1796, chap. 51, sec. 3, vol. 1, Stat. L ., p. 4 9 4 ;
act o f July 8 ,1 7 9 7 , chap. 16, sec. 1, vol. 1, Stat. L ., p. 534;
act of July 16, 1798, chap. 79, sec. 1, vol. 1, Stat. L ., p.
6 0 7 ; act o f July 16, 1798, chap. 84, sec. 2, vol. 1, Stat. L .,
p. 60 9 ; act of March 2, 1799, chap. 31, sec. 9, vol. 1, Stat.
L ., p. 72 6 ; act o f M ay 7 ,1 8 0 0 , chap. 42, sec. 1, vol. 2, Stat.
L ., p. 6 0 ; act of February 26, 1803, chap. 8, sec. 2, vol. 2,
Stat. L ., p. 20 2 ; act o f November 10, 1803, chap. 3, sec. 3,
vol. 2, Stat. L ., p. 2 4 7 ; act o f March 2 6 ,1 8 0 4 , chap. 46, sec.
4, vol. 2, Stat. L ., p. 2 9 2 ; act o f February 13,1806, chap. 5,
sec. 2, vol. 2, Stat. L ., p. 3 5 0 ; act o f June 2 8,1809, chap. 10,
sec. 1, vol. 2, Stat. L ., p. 55 1 ; act o f M ay 1 ,1 8 1 0 , chap. 45,
sec. 1, vol. 2, Stat. L ., p. 610.)
A C T O F M A R C H 2, 1791.

•

l stat. l ., C h a p . X I .— A n act supplementary to the act intituled

“A n act to incorporate the subscribers to the Bank of
the United States.”
S ection 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Consubscrip- qress assembled, That the subscriptions to the stock of
lon ged k

p r o ' * be bank o f the United States, as provided by the act,
intituled “ A n act to incorporate the subscribers to the

1791 , ch. 10.

Bank of the United States,” shall not be opened until
the first M onday in July next.
Time of first

S ec . 2. A nd be it further enacted, T hat so much of the
first payment as by the said act is directed to be in the
six per cent, certificates o f the United States, may be
deferred until the first Monday in January next.

^ N o t mo re

S ec . 3. And be it further enacted, That no person, cor-

subscribed’ at Pora^ on? or body politic, except in behalf o f the United
one tim
e.
States, shall, for the space o f three months after the said
first M onday in July next, subscribe in any one day, for
more than thirty shares.
specie proS ec. 4. And be it further enacted, That everv sub­
portion, w
hen
C l
.
to be paid, and scnber shall, at the time o f subscribing, nav into the
ture payments hands o f the persons who shall be appointed to receive
to forfeit sum
r
.
,r r t
first paid.
the same, the specie proportion required by the said act




LAW S

to be then paid.

C O N C E R N IN G

277

B A N K IN G .

A n d if any such subscriber shall fail

to make any o f the future payments, he shall forfeit the
sum so by him first paid, for the use o f the corporation.
S ec . 5. And be it further enacted, That such part o f m n er * ^ a t
ax °
the public debt, including the assumed debt, as is funded ^ p
e erfce temy
n a
at an interest o f three per cent, may be paid to the bank, £|n aid t0 the
P
in like manner with the debt funded at six per cent,
computing the value o f the former at one h alf the value
o f the latter, and reserving to the subscribers who shall
have paid three per cent, stock, the privilege o f redeem­
ing the same with six per cent, stock, at the above rate
o f computation, at any time before the first day o f Jan­
uary, one thousand seven hundred

and ninety-three;

unless the three per cent, stock shall have been previously
disposed of by the directors.
Approved, March 2, 1791.
A C T O F F E B R U A R Y 28, 1793.
C h a p . X Y I I I . — A n act making appropriations for the 3„| stat- L-»

support of Government for the year one thousand seven
hundred and ninety-three.
*

*

*

*

*

*

*

S ec. 3. And be it further enacted. That the President r e s i d e n t
o f the United States be authorized to borrow, on account no t exceed g
in
#

#

$

800 , 000 .

o f the said States, any sum or sums, not exceeding, in
the whole, eight hundred thousand dollars, at a rate o f
interest not exceeding five per centum per annum, and
reimbursable at the pleasure of the United States, to be
applied for the purposes aforesaid, and to be repaid out

o n what

w om
h ,

o f the said surplus o f the duties on imports and tonnage,
to the end o f the present year, one thousand seven
hundred and ninety-three: A n d that it shall be law ful
for the Bank o f the United States to lend the said sum.
A n d the President o f the United States shall cause so
much o f the loan, made o f the Bank o f the United States,
pursuant to the eleventh section o f the act, by which nfL t^
o
“ ade
it is incorporated, to be paid off, in sums not less than
t0 t* P
a,(i
fifty thousand dollars, as, in his opinion, the state o f the
Treasury may, from time to time, admit, out of any
monies which may be in the Treasury, having due regard
to the exigencies of Government, and the appropriations
made and to be made by law.
Approved, February 28, 1793.




278

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F M A R C H 2, 1793.
33|

stat.

l .,

[Obsolete.]

President

X X V . — An act providing for the payment of the
first instalment due on a loan made of the Bank of
the United States.

C hap.

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assembled, That the President o f the United States be, and he

tain monies to hereby

is authorized and empowered to apply two hunmjmt1\o*nBaiik dred thousand dollars, o f the monies which may have
been borrowed, in pursuance o f the fourth section o f

states.

the act, intituled “ A n act making provision for the re1790, ch. 47. duction o f the public debt,” in payment o f the first instal­
ment, due to the Bank of the United States, upon a loan
made o f the said bank, in pursuance o f the eleventh
section o f the act for incorporating the subscribers to
the said bank.
Approved, March 2, 1793.
A C T O F J U N E 4, 1794.
1 stat.

l„

[Obsolete.]

X L . — A n act providing for the payment of the
second instalment due on a loan made of the Bank of
the United States.

C hap.

S e c t i o n 1. Be it enacted by the Senate and House of
Representatives of the United States of America in Con­
- gress assembled, That the President o f the United States

P r e s 1
dent of United
States to pay be, and he hereby is authorized and empowered to apply
second install­
ment to the two hundred thousand dollars o f the proceeds of foreign
bank out of
foreign loans. loans heretofore transferred to the United States, in pay­

ment of the second instalment due to the Bank o f the
United States, upon a loan o f the said bank, made pur­
suant to the eleventh section o f the act for incorporating
Annual pe­
riod for pay­
ment of each
installment.

the subscribers to the said bank: and that the annual
period for the payment of each instalment of the said
loan, shall be deemed to be the last day o f December in

each year.
Appropria­
S ec. 2. A nd be it further enacted, T hat a sufficient sum

tion for pay­
ing interest on
said loan.




o f the dividends, which have accrued, or which shall here­
after accrue, on the stock owned by the United States,
in the Bank o f the United States, be, and the same is
hereby appropriated to the payment o f the interest, which
has, or shall become due, on the loan obtained, as afore­
said.
Approved, June 4, 1794.

LAWS

C O N C E R N IN G

279

B A N K IN G .

A C T O F J U N E 5, 1794.
C h a p . X L V I .— A n act to authorize the President of the
.

7

1

United States during the recess of the present Congress,
to cause to he purchased or built a number of vessels
to be equipped as galleys, or otherwise, in the service
o f the United States.
jfc

sf:

:fe

i stat. l .,

376.

5|c

S ec. 3. A nd be it further enacted, T hat there be aPPro_ti0nP re ia'
t^ o^or
priated for the purpose aforesaid, the sum o f eighty thou­
sand dollars to be paid out o f the proceeds o f any revenue
o f the United States, which now are, or hereafter during
the present session shall be provided, not being otherwise
appropriated.
jr

A n d that the President o f the United States d ep tf eus i r^ n
a th o

be authorized to take on loan o f the Bank o f the United j.z<£An borrow
States, or o f any other body politic or corporate, person
or persons, the said sum of eighty thousand dollars, to be
reimbursed, principal and interest, out o f the said pro­
ceeds, appropriated as aforesaid, according to such con­
tract or contracts, which shall be made concerning the
same.
Approved, June 5, 1794.
A C T O F J U N E 9, 1794.
C h a p . L X I I I . — A n act making appropriations for cer- so^ stat- L•
»

tain purposes therein expressed.
*

*

*

*

*

S ec. 2. A nd be it further enacted, That the President d p r ef s i o f the United States be empowered to borrow, on behalf united states
of the United States, o f the Bank o f the United States sumborrow

a

(which is hereby authorized to lend the sam e), or o f any
other body or bodies politic, person or persons, any sum
not exceeding in the whole, one million o f dollars to be ap- Not exceedplied to the purposes aforesaid, and to be reimbursed, as iD $1’000’000S
well interest as principal, out o f the proceeds o f the said
revenues.
S ec . 3. Provided always, and be it further enacted,
T hat there shall be reserved out o f the proceeds o f the
said revenues, a sum sufficient to pay the interest o f what­

Certain sum
to be reserved.

ever monies may be borrowed pursuant to the act, inti­
tuled “ A n act making further provision for the expenses




1794, ch . 7.

280

N A T IO N A L

M ONETARY

C O M M IS S IO N .

attending the intercourse o f the United States with for­
eign nations; and further to continue in force the act,
intituled “ A n

act providing the means o f intercourse

between the United States and foreign nations; ” and
such sum is hereby pledged and appropriated for that
purpose, according to the terms o f the contract or con­
tracts which shall or may be made concerning the said
monies. A n d the faith o f the United States is hereby
pledged to make such further provision therefor, as may
be necessary.
Approved, June 9, 1794.
A C T O F J A N U A R Y 8, 1795.
i

s t a t . l ., C h a p . X I .— A n act providing for the payment of certain

[Obsolete.]

instalments of foreign debts; and of the third instal­
ment due on a loan made of the Bank o f the United
States.

Be it enacted by the Senate and House of Representa­
tives of the United States of America , in Congress assemcertain in- bled, That the President o f the United States be, and he

stalments of,
,
.
.
,
, .
.
,
debt, how to be hereby is authorized and empowered to cause any instal­

ments o f the foreign debts, which may fall due in the
year one thousand seven hundred and ninety-five, and
also the third instalment due on a loan made o f the Bank
1791, ch. io. o f the United States, in pursuance o f the eleventh sec­
tion of the act for incorporating the subscribers to the
said bank, to be paid out o f the proceeds o f any foreign
loans heretofore made.
Approved, January 8, 1795.
A C T O F F E B R U A R Y 21, 1795.
i

s t a t . l .,C h a p . X X V .— A n act for the reimbursement of a loan

[Obsolete.]

authorized by an act of the last session of Congress.

Bank

S ection 1. Be it enacted by the Senate and House of

of

authorized to Representatives of the United States o f America in Con­




gress assembled, T hat the Bank o f the United States be,
and the same is hereby authorized to lend to the United
States, the whole, or any part o f the sum o f eight hun­
dred thousand dollars (remaining unapplied) in pursu­
ance o f the authority granted to borrow one million o f
dollars, by the act, intituled “ A n act making further pro-

LAWS

C O N C E R N IN G

B A N K IN G .

281

vision for the expenses attending the intercourse o f the
United States with foreign nations; and further to con-

1794’ ch- 7-

tinue in force the act, intituled “ A n act providing the
means o f intercourse between the United States and for­
eign nations.

S ec. 2. A nd be it further enacted, T hat after reservingC
eftYin1 reveU
such sums as m ay be sufficient to satisfy prior appropriaappropritions, there be further appropriated, in aid of the provi­
sion heretofore made, out o f the proceeds o f the duties
which have arisen, or may arise upon carriages for the
conveyance o f persons; upon licenses for selling wines
and foreign distilled spirituous liquors by retail; upon
snuff and refined sugar; and upon property sold at auc­
tion ; which were imposed by acts passed during the last
session, and which may be further continued, the present
session o f Congress, or from the proceeds o f such duties
or revenues as may be established in lieu thereof, a sum
sufficient to the reimbursement, before the year one thou­
sand eight hundred and one, o f any loan or loans, which
have been, or which m ay hereafter be made, in virtue o f
the act aforesaid: A n d that the faith o f the United States
be, and the same is hereby pledged, to make good any
deficiency o f the said duties.
Approved, February 21, 1795.
A C T O F J U N E 1, 1796.

Chap. L I . —A n

act making appropriations for the support of the Military and Naval Establishments for the
year one thousand seven hundred and ninety-six .

| s t a • L->

*
(Section 2 makes reference to authority o f Bank of

paylbfe*

United States to make a loan.)

S ec. 3.

And be it further enacted, T hat the President of

the United States be empowered to borrow, at an interest U ^t^fld
n r sfates
not exceeding six per centum, o f the Bank o f the United “eYoooo to sac
States, wffiich is hereby authorized to lend the sam e; or o f lsfy this act*
any body or bodies politic, person or persons, any sum or
sums not exceeding in the whole, six hundred and fifty
thousand dollars, and to be applied to the purposes afore­
said, and to be reimbursed, as well interest as principal,
out o f the funds aforesaid.
Approved, June 1, 1796.




282

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F J U N E 2T, 1798.
573 S t a t ‘ L'’

C h a p . L X I . — (T his act prescribes a penalty on forging
or uttering counterfeit bills, notes, orders, or checks by or

upon the Bank o f the United States, which was repealed
by the act o f February 24, 1807 (Chap. X X , 2 Stat. L .,
423) which see.)
A C T O F J U L Y 16, 1798.
609 S * a t ' L” C h a p . L X X X I V . — A n act making certain appropria­

tions,’ and to authorize the President to obtain a loan on
the credit of the direct tax.
*

*

*

*

*

denten ayebori
T
S ec.
^ n d be it further enacted, That the President
row two mil- 0 f
United States shall be, and he is hereby authorized
l i ons on the
7
#
J
credit °f the di-10 borrow o f the Bank o f the United States, wdio are
hereby enabled to lend the same, or o f any other corpora­
tion, persons or person, the sum o f two millions o f dol­
lars, upon the credit, and in anticipation o f the direct tax,
laid and to be collected within the United States; which
tax shall be, and is hereby pledged for the repayment of
any loan which shall be obtained thereon, as aforesaid;
and the faith o f the United States shall be, and is
hereby pledged to make good any deficiency: Provided ,
T hat the interest to be allowed for such loan, shall not
exceed six per centum per annum ; and that the principal
shall be reimbursed at the pleasure o f the United States.
Approved, July 16, 1798.
ACT

72l

OF

M ARCH

2, 1799.

stat- L-» C h a p . X X X I . — A n act giving eventual authority to the

i8o-,e cb 9 1e d
G

President o f the United States to augment the Arm y.
(Sections 1 to 8 provide for augmenting the military

‘ force, including volunteers, etc.)

f or
prthelap r
un

S ec. 9. And be it further enactedr That for the ex­
,

act,es and tau ecution o f this act, i f it shall be found necessary to carry
S
row^money!***




or any Parf
^ into effec^ there be appropriated the
sum o f two millions o f dollars, and that the President be
authorized to borrow, on behalf o f the United States, the
said sum, or so much thereof as he shall deem necessary
(which the Bank o f the United States is hereby em­
powered to lend) and upon such terms and conditions as

"L a

w s

c o n c e r n in g

b a n k in g

283

.

he shall judge most advantageous to the United States:

Provided , T hat such terms and conditions shall not re­
strain the United States from paying off the sum which
may be borrowed, after the expiration o f fifteen years.
S e c . 10. And be it further enacted, That so much as

certain

du-

may be necessary o f the surplus o f the duties on imports r e d e e m t h e
and tonnage, beyond the permanent appropriations here­
tofore charged upon them by law, shall be, and hereby is
pledged and appropriated for paying the interest o f all
such monies as may be borrowed pursuant to this act,
according to the terms .and conditions on which the loan
or loans, respectively, m ay be effected; and also for pay­
ing, by discharging the principal sum or sums o f any such
loan or loans, according to the terms and conditions to
be fixed as aforesaid.
*
*

*

*

*

Approved, March 2, 1799.
ACT

OF

A P R IL

29, 1802.

C h a p . X X X I I . — A n act making provision for the r e - 16| stat.

l .,

demotion of the whole of the Public Debt of the
United States.
*

*

*

*

*

(Section 3 provides that all reimbursements o f the
principal o f the public debt shall be made under the
superintendence o f the commissioners o f the sinking fund,
including temporary loans heretofore obtained from the
Bank o f the United States.)
*

sf:

*

H
e

H
e

S e c . 5. And be it further enacted, That for the purpose Commission '
' .
r
1
ers authorized

-.o f more effectually securing the reimbursement o f the ga em l0
nk p °fy
Dutch debt, the commissioners o f the sinking fund m ay, United states
and they hereby are empowered, with the approbation o f fo^at ^

pay-

the President o f the United States, to contract, either with Dutch d e b t ,
the Bank o f the United States, or with any other public
institution, or with individuals, for the payment, in H o l­
land, o f the whole, or any part, o f the principal o f the
said Dutch debt, and o f the interest and charges accruing
on the same, as the said demands become due, on such
terms as the said commissioners shall think most advan­
tageous to the United States; or to employ either the
said Bank, or any other public institution, or any indi­
vidual or individuals, as agent or agents, for the pur­
pose o f purchasing bills o f exchange, or any other kind




284
t<fagePtnsaUon
n

NATIONAL

M ONETARY

C O M M IS S IO N .

remittances, for the purpose o f discharging the in­
terest and principal o f said debt, and to allow to such
agent or agents a compensation not exceeding one-fourth
of one per cent, on the remittances thus purchased or
procured by them under the direction o f the said com­
missioners, and as much o f the duties on tonnage and mer­
chandise as may be necessary for that purpose is hereby
appropriated towards paying the extra allowance or
commission resulting from such transaction, or trans­
actions, and also to pay any deficiency arising from any
loss incurred upon any remittance purchased or procured
under the direction o f the said commissioners, for the
purpose o f discharging the principal and interest o f the
said debt.
*

*

*

*

*

Approved, A p ril 29, 1802.
A C T O F F E B R U A R Y 26, 1803.
o0o stat' L” C h a p . V I I I . — A n act making further 'provision for the

expenses attending the intercourse between the United
States and foreign nations.
thorfzedToSwri
S ec . ^ ^ n d be it further enacted, T hat the President
r°w the money. 0 f the United States may, i f he shall deem it necessary,
and time of re- and he hereby is authorized to borrow the whole, or any

part o f the said sum, at an interest not exceeding six
per centum per annum, reimbursable before the year one
thousand eight hundred and eleven: and it shall be law­
ful for the Bank o f the United States to lend the whole,
or any part of the same.
*

*

*

*

‘

*

Approved, February 26, 1803.
A C T O F F E B R U A R Y 24, 1804.
or2 stat. l ., C h a p . X I I I .— A n act for laying and collecting duties on

imports-and tonnage within the territories ceded to the
United States by the treaty of the thirtieth of April ,
one thousand eight hundred and three, between the
United States and the French Republic, and for other
purposes.
*
o t h e r acts
Louisiana.




*

*

*

*

S ec . 2 . A nd be it further enacted, T hat so much o f

any act or acts o f the United States, now in force, or

LAW S

C O N C E R N IN G

285

B A N K IN G .

which may be hereafter enacted, concerning the Bank in ^ c th e °nB ank
o f the United States, and for the punishment o f frauds |£ s united
ta*be.
committed on the same: * * * shall extend to ?xteP,d®d t0
and have full force and effect in the above-mentioned
territories.
Approved, February 24, 1804.
A C T O F M A R C H 23, 1804.
C h a p . X X X I I . — A n act supplementary to the act intit-

stat. l .,

o _2

uled “ A n act to incorporate the subscribers to the [O b s o le te .]
Bank of the TJmted States.
ru a ry i s , 1791 ,

'

ch . 10.

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled. That the President and directors of the Bank of
'

.

i n

i

- i i

t

B an k o f the
U n ited
S tates
to
esta b lish offices
a n y of discount and

the United States shall be, and they are herebv author- a u th o rize d

*

*
*

ized to establish offices o f discount and deposit in

part o f the territories or dependencies of the United
States, in the manner, and on the terms prescribed by
the act to which this is a supplement.
Approved, March 23, 1804.
A C T O F M A R C H 2G, 1804.
C h a p . X L V I .— A n act further to protect the commerce9g2 stat. l .,

and seamen of the United States against the Barbary

[E x p ire d .]

powers.
*
S ec. 4.

$
*

$

*

7 or

$

&

i f necessary the President o f the

President
authorized to
United States is hereby authorized to borrow the said borrow this
J

m

sum, or such part thereof as he may think proper, at a
rate o f interest not exceeding six per centum per annum,
from the Bank o f the United States, which is hereby em- ^

Bank o f the

powered to lend the same, or from any other body or a u th orized ‘

to

bodies politic or corporate, or from any person or per­
sons; and so much o f the proceeds o f the duties laid by
this act, as may be necessary, shall be and is hereby
pledged for replacing in the treasury, the said sum o f one i<_see
million o f dollars, or so much thereof as shall have been lsio!
+i

1

i

i

!

•

•

i

-1 •

tlius expended, and tor paying the principal and interest

m

3,

of
ch!
ch -

5;
40-

o f the said sum, or so much thereof as may be borrowed,
pursuant to the authority <nven in this section: and an A cco u n ts to
" 4—’
be hyd before
account o f the several expenditures made under this act, Congress,
shall be laid before Congress during their next session.

Approved, March 26 ,




1804

.

286

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F F E B R U A R Y 13, 1806.

^ s t. l., Chap. V.— A n
2 ta
[O b solete.]

P r e s id e n t
a u th orized
to
cause
the
m oney to be
borrow ed .

act making 'provision for defraying any
extraordinary expenses attending the intercourse be­
tween the United States and foreign nations.

S e c . 2.

And be it further enacted, That the President

o f the United States be, and hereby is authorized, if nec­
essary, to borrow the said sum, or any part thereof, in be­
h alf o f the United States, at a rate o f interest not exceed­

R ates o f in ­
terest.

ing six per centum, per annum, redeemable at the will of
the Congress o f the United States.

A n d it shall be law­

ful for the Bank of the United States to lend the whole,
or any part o f the same.
F u n d m ade
s u b je ct to the
r e i m b u rsem ent o f p r in c i­
pal
and
th e
p a y in g o f the
in terest.

S e c . 3.

And be it further enacted, That so much as may

be necessary o f the surplus o f the duties on imports and
tonnage, beyond the permanent appropriation heretofore
charged upon them, by law, shall be, and hereby is
pledged and appropriated for the payment o f the interest,
and reimbursement o f the principal, o f all such monies as
m ay be borrowed in pursuance o f this act, according to
the terms and conditions on which the loan or loans may
be effected.
Approved, February 13, 1806.
A C T O F F E B R U A R Y 24, 1807.

4of stat- L C h a p . X X . — A n act to punish frauds cor
<’
committed on the

Bank of the United States.
Be it enacted by the Senate and House of Representa4 4 , sec. is.
' tives of the United States of America in Congress assemm ent fo r fa ls e - bled, That if any person shall falsely make, forge, or
A ct o f A p ril

iy T k nScoun-counterfeit, or cause or procure to be falsely made, forged,
n lor f
S the B a K ! or counterfeited, or willingly aid or assist in falsely mak­
th e U n i t e d .
ing,
S tates.




forging or counterfeiting any bill or note in imita­

tion of, or purporting to be a bill or note issued by order
o f the president, directors and company o f the Bank o f
the United States, or any order or check on the said
bank or corporation, or any cashier thereof, or shall
falsely alter, or cause or procure to be falsely altered, or
w illingly aid or assist in falsely altering any bill or note
issued by order o f the president, directors and company o f
the Bank o f the United States, or any order or check, on
the said bank or corporation, or any cashier thereof, or

LAW S

C O N C E R N IN G

287

B A N K IN G .

shall pass, utter or publish, or attempt to pass, utter or
publish as true, any false, forged, or counterfeited bill, or
note, purporting to be a bill, or note, issued by order of
the president, directors and company o f the Bank of the
United States, or any false, forged, or counterfeited order
or check, upon the said bank or corporation, or any
cashier thereof, knowing the same to be falsely forged or
counterfeited, or shall pass, utter, or publish, or attempt
to pass, utter or publish, as true, any falsely altered bill
or note, issued by order o f the president, directors and
company o f the Bank o f the United States, or any falsely
altered order or check, on the said bank or corporation, or ch eck s o r
or any cashier thereof, knowing the same to be fa lsely orders tbereonaltered with intention to defraud the said corporation, or
any other body politic, or person; every such person shall
be deemed and adjudged guilty o f felony, and being
thereof convicted by due course o f law, shall be sentenced
to be imprisoned, and kept to hard labour, for a period
not less than three years, nor more than ten years, or
shall be imprisoned not exceeding ten years, and fined
not exceeding five thousand dollars: Provided, that noth­
ing herein contained shall be construed to deprive th e^savin g^of
courts o f the individual states o f a jurisdiction under

t h e t io n

of

sta te

laws o f the several states, over the offence, declared
punishable by this act.
S ec . 2. A nd be it further enacted, T hat the act, in...

I , , , .

tituled

.

-|

.

.

A n act to punish frauds committed on the Bank

R epeal
of
a ct o f Ju n e 27,
1798, ch . ei.

o f the United States,” passed the twenty^seventh day of
June, one thousarid seven hundred and ninety-eight, shall
be and the same is hereby repealed: Provided neverthe­
less, that the repeal o f the said act shall not be so con- •
strued, as to prevent the trial, condemnation or punish­
ment o f any person, or persons, charged with or guilty
o f a violation of any of its provisions, previous to the
passing o f this act.
Approved, February 2d, 1807.
A C T O F J U N E 28, 1809.
C h a p . X . — A n act supplementary to the act, entituled _ 2 stat.

L
'An act making further provision for the support of °
public credit, and for the redemption of the public
d eb t”
Be it enacted by the Senate and House o f Representor
tives of the United States o f America in Congress assem­
bled, T hat the pow'ers vested in the commissioners o f the




l .,

288

_

N A T IO N A L

3, 1795, on, 45.
P o w e r s of
t h e c o m m is -

M ONETARY

C O M M IS S IO N .

sinking fund, by the tenth section of the act to which
^
7
*
this act is a supplement, shall extend to all the cases of
rx

7

sinking °ffund reimbursement o f any instalments or parts o f the capital,
exten d ed .
or principal, o f the public debt now existing, which may
become payable according to law. A n d in every case
in which a loan may be made accordingly, it shall be law­
ful for such loan to be made of the Bank o f the United
States, any thing in any act o f Congress to the contrary
notwithstanding.
Approved, June 28, 1809.
A C T O F F E B R U A R Y 15, 1811.
^ 2 stat. l ., C h a p . X V .— A n act concerning the Bank of Alexandria.




(T his act established the Bank of Alexandria, and in
addition to prescribing its general powers and duties
provided that it should not issue any note for a smaller
sum than five dollars.

Other acts in relation to banks

in the District o f Columbia and Territories, with some of
the special powers and duties prescribed, are as follow s:
February 15, 1811

(chap. 16, 2 Stat. L ., 6 2 5 ), incor­

porated the Bank o f W ashington.

February 16, 1811

(chap. IT, 2 Stat. L ., 6 2 9 ), incorporated the Farmers
Bank o f Alexandria.

February 16, 1811

(chap. 18, 2

Stat. L ., 6 3 3 ), incorporated the Bank of Potom ac; not to
issue notes o f a smaller sum than five dollars.

February

18,1811 (chap. 19, 2 Stat. L . , 6 3 6 ) ,incorporated the Union
Bank o f Georgetown.

M ay 16, 1812 (chap. 87, 2 Stat.

L ., 7 3 5 ), incorporated the Mechanics Bank o f A lex• andria; not to issue notes o f a smaller sum than five dol­
lars. March 3, 1817 (chap. 93, 3 Stat. L ., 3 8 3 ), incorpo­
rated the Farmers and Mechanics Bank o f Georgetown,
the Central Bank o f Georgetown, the Bank of the M e­
tropolis, the Patriotic Bank o f W ashington, the Real
Estate Bank of the United States, and the Union Bank
o f Alexandria.
(Section 14 provided, among other things, that the
banks should in no case buy and sell the funded debt of
the United States, and section 29 prohibited unchartered
banking companies within the District o f Columbia is­
suing notes, etc.

M ay 4, 1820 (chap. 62, 3 Stat. L ., 5 7 0 ),

charters o f the banks in the District of Columbia pay-

LAWS

C O N C E R N IN G

B A N K IN G .

m g specie, and as long as they pay specie continued until
June 1, 1822; charter of Bank o f Columbia limited to
June 1, 1822.

March 2, 1821 (chap. 18, 3 Stat. L ., C18),

extended the charters o f the Bank o f Alexandria, the
Farmers Bank o f Alexandria, the Bank o f W ashington,
the Bank o f the Metropolis, the Patriotic Bank o f W a sh ­
ington, the Union Bank of Georgetown, the Farmers and
Mechanics Bank of Georgetown, and the Bank of Co­
lumbia.
(Section 7 prescribed that no note under five dollars
should be issued by any o f said banks; other sections pro­
vide for the liquidation o f the Central Bank o f George­
town and W ashington; for the continuance o f the Bank
of Potomac; for the consolidation o f the Union Bank of
Alexandria and Bank o f Potom ac; for the consolidation
o f any two o f the banks whose charters are extended, etc.
February 21, 1823 (3 Stat. L ., 7 2 7 ), extended charter
of Mechanics Bank of Alexandria.

February 9, 1836

(chap. 5, 5 Stat. L ., 1 ), extended the charters o f the
Bank o f Potomac, the Farmers Bank o f Alexandria, the
Union Bank o f Georgetown, the Farmers and Mechanics
Bank of Georgetown, the Bank o f the Metropolis, the P a ­
triotic Bank o f W ashington, and the Bank o f W ashington.
February 25, 1836 (chap. 40, 5 Stat. L ., 4 ) , extended the
charters o f the Bank o f Columbia, and the Bank of A le x ­
andria.

July 2, 1836 (chap. 260, 5 Stat. L ., 6 9 ), extended

charters o f banks mentioned in act of February 9, 1836

{supra).

March 3j 1837 (chap. 75, 5 Stat. L ., 1 9 8 ), the

acts o f the legislative assembly o f the Territory o f W is ­
consin incorporating the follow ing banks approved: The
Bank o f Milwaukee, the Miners Bank o f Dubuque, and
the Bank o f Mineral Point, with the condition that
none o f said banks should issue bills or notes for circu­
lation until one-half o f their capital should be actually
paid in.

M ay 25, 1838 (chap. 88, 5 Stat. L ., 2 2 9 ), ex­

tended charter o f the Union Bank o f Georgetown, and
provided for closing its affairs.

Charter further ex­

tended by act o f August 28, 1841 (5 Stat. L ., 4 5 1 ).

M ay

31, 1838 (chap. 91, 5 Stat. L ., 2 3 2 ), continued the cor­
porate existence o f the follow ing banks: T he Farmers
and Mechanics Bank o f Georgetown, the Bank o f the
Metropolis, the Patriotic Bank o f W ashington, the Bank
o f Washington, the Farmers Bank o f Alexandria, and the




290




N A T IO N A L

M ONETARY

C O M M IS S IO N .

Bank o f Potom ac; provided, said banks cease receiving
or paying out all paper currency o f less denomination
than five dollars, redeem all their notes o f five dollars in
gold or silver, and resume specie payments in 1839 or
sooner if the principal banks of Baltimore and Richmond
should sooner resume specie payments in full.

July 5,

1838 (chap. 154, 5 Stat. L ., 2 5 4 ), extended charter of
Bank o f Alexandria.

July 7, 1838 (chap. 212, 5 Stat. L .,

3 0 9 ), made it unlawful for any individual, company, or
corporation to issue, pass, or offer to pass within the D is­
trict o f Columbia, any note, check, draft, bank bill, or
any other paper currency, o f a less denomination than
five dollars.

July 3, 1840 (chap. 40, 6 Stat. L ., 8 0 2 ),

continued the corporate existence o f certain banks in the
District o f Columbia and extended the provisions, etc.,
o f the act o f M ay 25, 1838 (5 Stat. L ., 2 2 9 ), to them.
August 28, 1841 (chap. 12, 5 Stat. L ., 4 4 9 ), extended the
charters o f the banks mentioned in act o f M ay 31, 1838

(supra), provided, said banks resume and continue the
payments o f all their notes and specie liabilities, in specie,
on demand, and prohibited the issuing o f notes of less
than five dollars, etc.

June 17, 1844 (chap. 98, 5 Stat. L .,

6 7 7 ), extended charters o f certain banks in the District
o f Columbia in order to wind up their affairs.

March 2,

1847 (chap. 38, 9 Stat. L ., 1 5 3 ), extended charter of the
Union Bank o f Georgetown in order to close its affairs.
December 27, 1854 (chap. 15, 10 Stat. L ., 5 9 9 ), provided
for suppressing the circulation o f notes, etc., o f less than
five dollars in the District o f Columbia.

March 8, 1864

(chap 21, 13 Stat. L ., 1 7 ), incorporated the W ashington
City Savings Bank.

M ay 5, 1870 (chap. 80, 16 Stat L .,

1 0 2 ), section 4, provided for the organization o f manu­
facturing; business, and other corporations in the D is­
trict

of

Columbia,

and

the

act

of

June

17,

1870

(chap. 131, 16 Stat. L ., 15 3 ), provided that savings banks
m ight be organized thereunder.

M ay 24, 1870 (chap. 110,

16 Stat. L ., 137), incorporated the National Union Sav­
ings Bank o f the District o f Columbia.

January 20, 1873

(chap. 43, 17 Stat. L ., 4 1 2 ), authorized the Comptroller
o f the Currency to examine national banks in the D is­
trict o f Columbia.

June 30, 1876 (chap. 156, 19 Stat. L .,

6 4 ), provided that all savings banks or savings and trust
companies organized under

any act of Congress shall

,

LAWS

C O N C E R N IN G

B A N K IN G .

make to the Comptroller o f the Currency the same re­
ports as national banks, and be subject to the banking
laws so far as applicable.

October 1, 1890 (chap. 1246,

26 Stat. L ., 6 2 5 ), provided for the incorporation o f safe
deposit, trust, loan, mortgage, and other companies within
the District o f Columbia, and the provisions o f w hich act
T
were reenacted in the District of Columbia Code March
3, 1891, sections 713 to 748 (31 Stat. L ., 130 3 -1 3 10 ), as
set out in the next follow ing reference.

March 3, 1901

(chap. 854 (C od e), 31 Stat. L ., 1284), sections 605 to 640
provide for the incorporation o f savings bank corpora­
tions in the District o f Columbia and prescribe the powers
and duties th ereof; sections 687 to 700 apply in the same
manner to building associations; sections 713 and 714 to
savings banks, and sections 715 to 748 to trust, loan,
mortgage, and certain other corporations; section 713
provides that all savings banks or savings companies or
institutions organized to do business in the District o f
Columbia shall make reports to the Comptroller o f the
Currency, and be subject to all the provisions o f the Re­
vised Statutes, etc., applicable to national banks; section
714 provides that the Comptroller o f the Currency may
cause examination to be made o f any bank in the District
o f Colum bia; section 720 provides that trust, loan, mort­
gage, and certain other corporations shall report to the
Comptroller o f the Currency as in the case o f national
banks, and that the Comptroller shall have the same
visitorial powers, etc.; section 713 was amended by act of
June 30, 1902 (32 'Stat. L ., 5 3 4 ), by omitting the para­
graph making such banks subject to the provisions of
law applicable to national banks, etc.; section 713 was
further amended June 25, 1906 (34 Stat. L ., 458) to in­
clude other banking institutions; to give the Comptroller
o f the Currency power to take possession o f any such
bank or company as he would a national b an k ; and to re­
quire the making and publication o f reports; section 714
was amended by the same act to apply to any bank men­
tioned in section 713 amended, and to provide for the
payment o f the expenses o f an examination as in the case
o f a national bank.)




291

292

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F M A R C H 14, 1812.
694

Stat‘

l”

A n act authorizing a loan for a sum not
exceeding eleven millions of dollars.

C h a p . X L I .—

*

t h^^anks* °in

*

.

S e c . 4- ^ n^

^

e

*
^

*

*

further enacted, That it shall be lawful

Columbia1 1t°o f ° r any
0
the banks in the District o f Columbia to lend
make the loan a n y part 0f p^e sum authorized to be borrowed by virtue
Gf this act, any thing in any o f their charters o f incopora-

thereof.

tion to the contrary notwithstanding.
Approved, March 14, 1812.
A C T O F M A R C H 19 ,1 8 1 2 .

2 s t. l., Chap. X L I I I . —A n
ta
[Obsolete.]

act repealing the tenth section of the
act to incorporate the subscribers to the Bank of the
United States.

The t e n t h
se ctio n of th e
a ct in co r p o ra t-

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assembled, That the tenth section o f the act, entituled “ A n
;

_

,

..

, '

.

. . .

act- to incorporate the subscribers to the Bank ot the
United States,” shall be, and the same is hereby repealed.

repealed.

Approved, March 19, 1812.
A C T O F F E B R U A R Y 8, 1813.

7q2

s t.
ta

l .,

Chap.

X X I . — A n act authorizing a loan for a sum not

exceeding sixteen millions of dollars.
*
Banks in the
lu m b ia a u th orized t o l e n d
m o n e y un d er

tills set.

*

*

*

*

S e c . 5. And be it further enacted. That it shall be lawf ul f 0r any of the banks in the district of Columbia, to

J

.

7

lend any part o f the sum authorized to be borrowed bv
• -L
/

«/

virtue o f this act, any thing in any of their charters of
incorporation to the contrary notwithstanding.
Approved, February 8, 1813.
A C T O F A U G U S T 2, 1813.

3s t. l., . Chap. L I . — A n
ta




75

act authorizing a loan for a sum not ex­

ceeding seven millions five hundred thousand dollars.
*

*

*

*

*

S e c . 5. And be it further enacted, T hat it shall be law­

fu l for any o f the banks in the District o f Columbia, to

LAWS

C O N C E R N IN G

293

B A N K IN G .

lend any part o f the sum authorized to be borrowed by D}B a 0 ^0_
i(?tk | n
virtue o f this act, any thing in any o f their charters o f Je^the m
oney!
incorporation to the contrary notwithstanding.
?t an* part of
r T
Approved, A ugust 2, 1813.

ACT

Chap.

OF

AUGUST

2, 1813.

L I I I . — A n act laying duties on notes of banks,

3Stat- L->“ -

bankers, and certain companies; on notes, bonds, and
obligations discounted by banks, bankers, and certain
companies/ and on bills of exchange of certain de­
scription.
(T his act o f 14 sections levies stamp duties, as its title
indicates, to be collected, from December 3 1 ,1 8 1 3 , and to
continue until the termination o f the existing war with
Great Britain,
longer.)

and

for

one year thereafter,

ACT

OF

NOVEM BER

and no

15, 1814.

C h a p . I V .— A n act to authorize a loan for a sum not 14^ stat-

exceeding three millions of dollars.
*

*

*

*

*

S e c . 8 . And, be it further enacted, That it shall be law- tr®tnk
0fScoiumful for any o f the banks in the District of Columbia, to to^ on trU m te to
lend any part o f the sum authorized to be borrowed by the loan-

virtue o f this act, any thing in any o f their charters to
the contrary notwithstanding.
Approved, November 15, 1814.

ACT

OF

DECEMBER

10, 1814.

Chap.

X I . — A n act supplementary to an act, laying
duties on notes of banks, bankers, and certain com­
panies, on notes, bonds, and obligations, discounted by
banks, bankers, and certain companies, and on bills of
exchange of certain descriptions.
(T his act authorizes the Secretary o f the Treasury to

make a composition with private bankers, in lieu o f the
stamp duties levied by the act o f August 2, 1813.)




3 s t a t . l.,

294

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F D E C E M B E R 21, 1814.
^ 3 s t a t . l ., C h a p . X V . — A n act to provide additional revenues for

defraying the expenses of government and maintaining
the public credit, by laying duties on spirits distilled
within the United States, and Territories thereof, and
by amending the act laying duties on licenses to dis­
tillers of spirituous liquors.
*

*

*

*

*

(Section 25 authorizes the anticipation o f the duties
laid by this act, by a loan upon the pledge o f the said
duties for its reimbursement, for an amount not exceeding
six millions o f dollars and at a rate not above six per
cent, the money so obtained to be applied only to the pur­
poses to which the duties pledged are applicable by law.
The same provision is embodied in the act o f January 9 ,
1815, laying a direct tax.

See 3 Statutes at Large, 179.)

Approved, December 21, 1814.
A C T O F J A N U A R Y 9, 1815.
3 s t a t . l ., C h a p . X X I . — A n act to provide additional revenues for
[R ep ealed .]

defraying the expenses of Government, and maintaining the public credit, by laying a direct tax upon the
United States, and to provide for assessing and collect­
ing the same.
3fc

L o a n s auth orized in ant i c i pa t i o n of
th e taxes.

S e c . 42.

sfc

3|e

And be it further enacted, T hat it shall be
'

.

7

lawful for the President o f the United States to autliorize the Secretary of the Treasury to anticipate the collec­
tion and receipt of the direct tax laid and imposed by

A c t ^ o f A ug.
2, 1813, ch. 37.

this act, and by the said act o f Congrass, entitled “ A n act
to lay and collect a direct tax within the United States,”
by obtaining a loan upon the pledge of the said direct
taxes, or either o f them, for the reimbursement thereof,
to an amount not exceeding six millions o f dollars; and
at a rate o f interest not exceeding six per centum per
annum. A n d any bank or banks now incorporated, or
which may hereafter be incorporated, under the authority
o f the United States, is, and are hereby authorized to

Proviso.

I

a c tt of Dec.
1817, ch. 1.




make such loan: Provided always, and it is expressly
23^ declared, That the money so obtained upon loan, shall be

applied to the purposes aforesaid, to which the said
direct taxes so to be pledged are by this act applied and
appropriated, and to no other purposes whatsoever.
. Approved,'January 9, 1815.

LAWS

C O N C E R N IN G

295

B A N K IN G .

A C T O F A P R I L 10, 1816.
C h a p . X L I Y .— A n act to incorporate the subscribers to 2g| s t a t . l .,

the Bank of the United States.
Be it enacted by the Senate and House o f Representa- [Expired.]
tires of the United States of America , in Congress assem­
bled. T hat a Bank o f the United States o f America shall „ Act of Mar.
be established, with a capital o f thirty-five millions o f
® a ite0 i
nn <
dollars, divided into three hundred and fifty th o u s a n d states, with a
,

’

shares, o f one hundred dollars each share.

J

ca p ita l o f $ 3o,-

Seventy thou- 000,000, etc.

sand shares, amounting to the sum o f seven millions o f
dollars, part o f the capital o f the said bank, shall be sub­
scribed and paid for by the United States, in the manner
hereinafter specified; and two hundred and eighty thou­
sand shares, amounting to the sum of twenty-eight m il­
lions o f dollars, shall be subscribed and paid for bv indi­
viduals, companies, or corporations, in the manner herein­
after specified.
S e c . 2. And be it further enacted, T hat subscriptions Places, etc.,
n
'
.
m
for receivin g
tor the sum o f twenty-eight millions o f dollars, towards subscriptions,

constituting the capital o f the said bank, shall be opened
°n the first M onday in July next, at the follow ing places:
that is to say, at Portland, in the district of M aine;

at

Portsmouth, in the State o f New H am pshire; at Boston,
1 1 the State o f Massachusetts; at Providence, in the
1
State o f Rhode Islan d; at Middletown, in the State of
Connecticut; at Burlington, in the State of Verm ont; at
New Y ork , in the State o f New Y o r k ;

at New Bruns­

wick, in the State o f New Jersey; at Philadelphia, in the
State o f Pennsylvania;
Delaware;

at W ilm ington, in the State o f

at Baltimore, in the State o f M aryland ;

Richmond, in the State o f V irg in ia ;
the State o f K entucky;

at

at Lexington, in

at Cincinnati, in the State o f

O h io ; at Raleigh, in the State o f North Carolina; at
Nashville, in the State o f Tennessee; at Charleston, in
the State o f South C arolina; at Augusta, in the State o f
G eorgia;

at New Orleans, in the State o f Louisiana;

and at W ashington, in the District of Columbia. A nd
the said subscriptions shall be opened under the superin­
tendence o f five commissioners at Philadelphia, and of
three commissioners at each o f the other places aforesaid,
to be appointed by the President o f the United States,
v h o is hereby authorized to make such appointments,
and shall continue open every day, from the time of
15712°— 10----- 21




296

N A T IO N A L M O N E T A R Y C O M M IS S IO N .

opening the same, between the hours of ten o'clock in.
the forenoon and four o’clock in the afternoon, for the
term o f twenty days, exclusive o f Sundays, when the
same shall be closed, and immediately thereafter the comfor* necelvl 1 g missioners, or any two o f them, at the respective places
1
etc^scripti°ns’ aforesaid, shall cause two transcripts or copies of such
subscriptions to be made, one o f which they shall send to
the Secretary of the Treasury, one they shall retain, and




the original they shall transmit, within seven days from
the closing o f the subscriptions as aforesaid, to the com­
missioners at Philadelphia aforesaid.

A n d on the receipt

o f the said original subscriptions, or o f either o f the said
copies thereof, if the original be lost, mislaid, or detained,
the commissioners at Philadelphia aforesaid, or a ma­
jority o f them, shall immediately thereafter convene, and
proceed to take an account o f the said subscriptions.

And

i f more than the amount o f twenty-eight millions o f dol­
lars shall have been subscribed, then the said last men­
tioned commissioners shall deduct the amount o f such
excess from the largest subscriptions, in such manner as
that no subscription shall be reduced in amount, while
any one remains larger: Provided , That if the subscrip­
tions taken at either o f the places aforesaid shall not
exceed three thousand shares, there shall be no reduction
o f such subscriptions, nor shall, in any case, the subscrip­
tions taken at either of the places aforesaid be reduced
below that amount. A n d in case the aggregate amount o f
the said subscriptions shall exceed twenty-eight millions
o f dollars, the said last mentioned commissioners, after
having apportioned the same as aforesaid, shall cause lists
o f the said apportioned subscriptions, to be made out,
including in each list the apportioned subscription for
the place where the original subscription was made, one
o f which lists they shall transmit to the commissioners or
one o f them, under whose superintendence such subscrip­
tions were originally made, that the subscribers may
thereby ascertain the number o f shares to them respec­
tively apportioned as aforesaid.

A n d in case the aggre­

gate amount o f the said subscriptions made during the
period aforesaid, at all the places aforesaid, shall not
amount to twenty-eight millions o f dollars, the subscrip­
tions to complete the said sum shall be and remain open
at Philadelphia aforesaid, under the superintendence o f
the commissioners appointed for that place; and the sub­
scriptions may be then made by any individual, company,

LAWS

C O N C E R N IN G

297

B A N K IN G .

or corporation, for any number o f shares, not exceeding,
in the whole, the amount required to complete the said
sum of twenty-eight millions o f dollars.
S e c . 3. A nd be it further enacted. That it shall be law-

R e g u l a t io n s

ful for any individual, company, corporation, or State, pa meStsaon
C
rj.P
when the subscriptions shall be opened as herein before them>&
cdirected, to subscribe for any number o f shares o f the
capital o f the said bank, not exceeding three thousand
shares, and the sums so subscribed shall be payable, and
paid, in the manner follow ing; that is to say, seven
niillions o f dollars thereof in gold or silver coin o f the
United States, or in gold coin of Spain, or the dominions
o f Spain, at the rate o f one hundred cents for every
twenty-eight grains and sixty hundredths of a grain o f
the actual weight thereof, or in other foreign gold or
silver coin at the several rates prescribed by the first sec­
tion o f an act regulating the currency o f foreign coins in
the United States, passed tenth day o f A p ril, one th ou -ch
Agjj. io,i806,
sand eight hundred and six, and twenty-one millions of
dollars thereof in like gold or silver coin, or in the funded
debt o f the United States contracted at the time of the
subscriptions respectively.

A nd the payments made in

the funded debt o f the United States, shall be paid and
received at the follow ing rates: that is to say, the funded
debt bearing an interest o f six per centum per annum, at
the nominal or par value thereof; the funded debt bearlng an interest o f three per centum per annum, at the rate
o f sixty-five dollars for every sum o f one hundred dollars
o f the nominal amount thereof; and the funded debt bear­
ing an interest o f seven per centum per annum, at the
rate of one hundred and six dollars and fifty-one cents,
for every sum o f one hundred dollars o f the nominal
amount thereof; together with the amount o f the interest
accrued on the said several denominations o f funded debt,
to be computed and allowed to the time o f subscribing the
same to the capital o f the said bank as aforesaid.

And

the payments o f the said subscriptions shall be made and
completed by the subscribers, respectively, at the times
and in the manner follow ing; that is to say, at the time o f
subscribing there shall be paid five dollars on each share,
in gold or silver coin as aforesaid, and twenty-five dol­
lars more in coin as aforesaid, or in funded debt as afore­
said; at the expiration o f six calendar months after the
time o f subscribing, there shall be paid the further sum
o f ten dollars on each share, in gold or silver coin as




2 9 8

N A T IO N A L

M ONETAKY

C O M M IS S IO N .

aforesaid, and twenty-five dollars more in coin as afore­
said, or in funded debt as aforesaid; at the expiration
o f twelve calendar months from the time of subscribing,
there shall be paid the further sum o f ten dollars on each
share, in gold or silver coin as aforesaid, and twentyfive dollars more, in coin as aforesaid, or in funded debt
as aforesaid.
(Section 4 provides for the payment in coin, to be
made to the commissioners by subscribers at the time of
subscription, for the transfer o f certificates o f funded
debt subscribed by them, and for the delivery of coin and
certificates by the commissioners to the president and
The united

directors, after the organization o f the bank.)
S e c . 5, And be it further enacted, That it shall be law-

2 e e “ , t k.e ful for the United States to pay and redeem the funded
.
. 1 ^
subscribed to the capital o f the said bank at the

fu n d e d d e b t ,
etc., and t h e debt
ban k m ay sell
fo r g o ld a n d rates
silv er, e tc.

x

aforesaid, in such sums, and at such times, as shall
7

.

7

be deemed expedient, any thing m any act or acts of
Congress to the contrary thereof notwithstanding.

And

it shall also be law ful for the president, directors, and
company, o f the said bank, to sell and transfer for gold
and silver coin, or bullion, the funded debt subscribed to
the capital o f the said bank as aforesaid: Provided

always, T hat they shall not sell more thereof than the
sum o f two millions o f dollars in any one year; nor sell
any part thereof at any time within the United States,
without previously giving notice o f their intention to the
Secretary of the Treasury, and offering the same to the
United States for the period o f fifteen days, at least, at
the current price, not exceeding the rates aforesaid.
<f
)Ththee Tmis^ S e c . f>. And be it further enacted, T hat at the opening o f
C
to s uy - subScription to the capital stock o f the said bank, the Sec-

ury

re^ary ° * “ 1G f reasury shall subscribe, or cause to be sub’ scribed, on behalf o f the United States, the said number

u n it e d ° f sta tese

Ac.




o f seventy thousand shares, amounting to seven millions
o f dollars as aforesaid, to be paid in gold or silver coin, or
in stock o f the United States, bearing interest at the rate
o f five per centum per annum ; and if payment thereof, or
o f any part thereof, be made in public stock, bearing in­
terest as aforesaid, the said interest shall be pa}7
able quar­
terly, to commence from the time o f making such pay­
ment on account o f the said subscription, and the principal
o f the said stock shall be redeemable in any sums, and at
any periods, which the Government shall deem fit.

And

the Secretary o f the Treasury shall cause the certificates

LAWS

C O N C E R N IN G

B A N K IN G .

299

of such public stock to be prepared, and made in the
usual form, and shall pay and deliver the same to the
president, directors, and company, of the said bank on the
first day of January, one thousand eight hundred and
seventeen, which said stock it shall be lawful for the said
president, directors, and company, to sell and transfer for
gold and silver coin or bullion at their discretion: P r o ­
vided, They shall not sell more than two millions of dol­
lars thereof in any one year.
S e c . 7. A n d be it fu rth er enacted , That the subscribers T h e s u b ­
scrib ers to the
to the said Bank of the United States of America, their bank in co r p o r­
ated, &c.
successors and assigns, shall be, and are hereby, created a
corporation and body politic, by the name and style of
“ The President, Directors, and Company, of the Bank of
the United States,” and shall so continue until the third
day of March, in the year one thousand eight hundred
and thirty-six, and by that name shall be, and are hereby,
made able and capable, in law, to have, purchase, receive,
possess, enjoy, and retain, to them and their successors,
lands, rents, tenements, hereditaments, goods, chattels and
effects, of whatsoever kind, nature, and quality, to an
amount not exceeding, in the whole, fifty-five millions of
dollars, including the amount of the capital stock afore­
said ; and the same to sell, grant, demise, alien or dispose
° f ; to sue and be sued, plead and be impleaded, answer
and be answered, defend and be defended, in all State
courts having competent jurisdiction, and in any circuit
court of the United States: and also to make, have, and
use, a common seal, and the same to break, alter, and renew, at their pleasure: and also to ordain, establish, and
pnt m execution, such by-laws, and ordinances, and regu­
lations, as they shall deem necessary and convenient for
the government of the said corporation, not being con­
trary to the constitution thereof, or to the laws of the
United States; and generally to do and execute all and
singular the acts, matters, and things, which to them it
diall or may appertain to do; subject, nevertheless, to
Ike rules, regulations, restrictions, limitations, and proMsions, hereinafter prescribed and declared.
Sec. 8. A n d be it fu rth er en acted , That for the man­ T w e n ty - five
d i r e c t o r s ; five
agement of the affairs of the said corporation, there shall to be ap p oin ted
b y th e P re s i­
a twenty-five'directors, five of whom, being stockholders, d en t, etc.
e
s all be annually appointed by the President of the
United States, by and with the advice and consent of the
Senate, not more than three of whom shall be residents




300

‘N A T I O N A L

M ONETARY

C O M M IS S IO N .

o f any one S ta te ; and twenty of whom shall be annually
elected at the banking house in the city o f Philadelphia,
on the first Monday o f Januarjq in each year, by the
qualified stockholders o f the capital of the said bank,
other than the United States, and by a plurality o f votes
then and there actually given, according to the scale of
voting hereinafter prescribed: Provided always, That no
person, being a director in the Bank o f the United States,
or any o f its branches, shall be a director o f any other
conceraing^the bank; and should any such director act as a director in
baDk!ietc°f the any other bank, it shall forthwith vacate his appointment




in the direction o f the Bank of the United States.

A nd

the directors, so duly appointed and elected, shall be
capable o f serving, by virtue o f such appointment and
choice, from the first M onday in the month of January
o f each year, until the end and expiration o f the first
M onday in the month o f January of the year next en­
suing the time o f each annual election to be held by the
stockholders as aforesaid.

x\nd the board o f directors,

annually, at the first meeting after their election in each
and every year, shall proceed to elect one of the directors
to be president o f the corporation, who shall hold the
said office during the same period for which the direct­
ors are appointed and elected as aforesaid: Provided also,
T hat the first appointment and election o f the directors
and president o f the said bank shall be at the time
and for the period hereinafter declared: And provided
also, That in case it should at any time happen that an
appointment or election o f directors, or an election o f the
president o f the said bank, should not be so made as to
take effect on any day when, in pursuance o f this act, they
ought to take effect, the said corporation shall not, for
that cause, be deemed to be dissolved; but it shall be
law ful at any other time to make such appointments, and
to hold such elections, (as the case may be,) and the man­
ner o f holding the elections shall be regulated by the by­
laws and ordinances o f the said corporation: and until
such appointments or elections be made, the directors and
president o f the said bank, for the time being, shall con­
tinue in office: And provided also, That in case o f the
death, resignation, or removal o f the president o f the said
corporation, the directors shall proceed to elect another
president from the directors as aforesaid: and in case of
the death, resignation, or absence, from the United States,
or removal o f a director from office, the vacancy shall be

LAWS

C O N C E R N IN G

B A N K IN G .

301

supplied by the President of the United States, or by the
stockholders, as the case may be.

But the President of

the United States alone shall have power to remove any
o f the directors appointed by him as aforesaid.
S e c . 9.

And be it further enacted, That as soon as the

sum o f eight millions four hundred thousand dollars in
gold and silver coin, and in the public debt, shall have
been actually received on account o f the subscriptions to

M anner and
time
o f th e
b an k ’s g o i n g
in to o p e ra tio n ,
etc.

the capital of the said bank (exclusively of the subscrip­
tion aforesaid, on the part o f the United States) notice
thereof shall be given by the persons under whose super­
intendence the subscriptions shall have been made at the
city o f Philadelphia, in at least two newspapers printed in
each o f the places, ( i f so many be printed in such places
respectively,) where subscriptions shall have been made,
and the said persons shall, at the same time, and in like
manner, notify a time and place within the said city o f
Philadelphia, at the distance o f at least thirty days from
the time o f such notification, for proceeding to the election
of twenty directors as aforesaid, and it shall be law ful
for such election to be then and there made. A nd the
President o f the United States is hereby authorized, dur­
ing the present session o f Congress, to nominate, and, by
and with the advice and consent o f the Senate, to appoint,
five directors o f the said bank, though not stockholders,
anything in the provisions o f this act to the contrary not­
withstanding; and the persons who shall be elected and
appointed as aforesaid, shall be the first directors o f the
said bank, and shall proceed to elect one o f the directors
to be president o f the said bank; and the directors and
president o f the said bank so appointed and elected as
aforesaid, shall be capable o f serving in their respective
office, by virtue thereof, until the end and expiration o f
the first Monday o f the month o f January next ensuing
the said appointments and elections; and they shall then
and thenceforth commence, and continue the operations
° f the said bank, at the city o f Philadelphia.
(Section 10 authorizes the directors to appoint and
govern such officers, clerks, and servants as may be neces­
sity for executing their business.)
S e c . 11.

A nd j n further enacted, T hat the following
)e

ru ^s’ restrictions, limitations, and provisions, shall form
am be fundamental articles o f the constitution o f the
said corporation, to w it:




F u n d am en ta l
a rtic le s, etc.

302

N A T IO N A L

R u les c o n ­
cern in g v o tin g
fo r d irectors .

M ONETARY

C O M M IS S IO N .

First. The number o f votes to which the stockholders
shall be entitled, in voting for directors, shall be accord­
ing to the number o f shares he, she, or they, respectively,
shall hold, in the proportions following, that is to say;
for one share and not more than two shares, one vote;
for every two shares above two, and not exceeding ten, one
vote; for every four shares above ten, and not exceeding
thirty, one vote; for every six shares above thirty, and
not exceeding sixty, one vote; for every eight shares above
sixty, and not exceeding one hundred, one vote; and for
every ten shares above one hundred, one vote; but no per­
son, co-partnership, or body politic, shall be entitled to a
greater number than thirty votes; and after the first elec­
tion, no share or shares shall confer a right o f voting,
which shall not have been holden three calendar months
previous to the day o f election.

A nd stockholders actu­

ally resident within the United States, and none other,
may vote in elections by proxy.
A p a rt o f the
Second. Not more than three-fourths of the directors
d ire cto rs a p ­
p oin ted b y the elected by the stockholders, and not more than four-fifths
s t o c k h o ld e r s
an d p residen t, o f the directors appointed by the President o f the United
a lon e elig ib le a
secon d y e a r , States, who shall be in office at the time of an annual elec­
s u c c e s s ively.
P re s id e n t a 1 - tion, shall be elected or appointed for the next succeeding
w a y s eligible.

year; and no director shall hold his office more than three
years out o f four in succession: but the director who shall
be the president at the time o f an election may always be

S tock h old ers,
citizen s, m a y
be on ly
a p p oin ted d ire cto r s .
D ir e c t­
o rs to h a v e n o
c o m p e n s a tio n ,
oth er th a n the
presiden t.

re-appointed, or re-elected, as the case may be.
Third. None but a stockholder, resident citizen of the
United States, shall be a director; nor shall a director be
entitled to any emoluments; but the directors may make
such compensation to the president for his extraordinary
attendance at the bank, as shall appear to them reason­
able.

Seven d ir e c ­
tors, in clu d in g
th e p residen t,
m ay co n stitu te
a b oard.

How

dent shall always be one, except in case o f sickness or
his necessary absence: in which case his place may be sup­

p la ce is su p ­
p lied in ca se o f
a bsen ce or s ic k ­
ness.




Fourth. Not less than seven directors shall constitute a
board for the transaction of business, o f whom the presi­

plied by any other director whom he, by writing, under
his hand, shall depute for that purpose.

A n d the director

so deputed may do and transact all the necessary business,
belonging to the office o f the president of the said cor­
poration, during the continuance o f the sickness or neces­
sary absence o f the president.

LAWS

C O N C E R N IN G

303

B A N K IN G .

Fifth. A number of stockholders, not less than six ty ,lD e0f “ e
gen ral“
who, together, shall be proprietors o f one thousand shares
br upwards, shall have power at any time to call a general called,
meeting o f the stockholders, for purposes relative to the
institution, giving at least ten weeks’ notice in two public
newspapers o f the place where the bank is seated, and
specifying in such notice the object or objects of such
meeting.

Sixth. Each cashier or treasurer, before he enters upon gA ab n e
o d srand
the duties o f his office, shall be required to give bond, with securltytwo or more sureties, to the satisfaction o f the directors,
in a sum not less than fifty thousand dollars, with a con­
dition for his good behaviour, and the faithful perform ­
ance o f his duties to the corporation.

Seventh. The

lands,

tenements,

and

hereditaments, c

l,” £

which it shall be law ful for the said corporation to h o l d , t n(te
shall be only such as shall be requisite for its i m m e d i a t e “he or°
ayC
accommodation in relation to the convenient transacting P
orationof its business, and such as shall have been bona -fide mort­
gaged to it by way o f security, or conveyed to it in satis­
faction o f debts previously contracted in the course of its
dealings, or purchased at sales, upon judgments which
shall have been obtained for such debts.

Eighth. The total amount o f debts which the said cor- Maximum of
debts which the
poration shall at any time owe, whether by bond, bill,corporation
note, or other contract, over and above the debt or debts time contract,
due for money deposited in the bank, shall not exceed the
sum of thirty-five millions o f dollars, unless the contract­
ing of any greater-debt shall have been previously author­
e d by law o f the United States. In case o f excess, the R c “ e d y
fi,
. .
.
’
against the diuuectors under whose administration it shall happen,rectors under
a
1 i. t , ,
1
.
.
.
’ whose admmisllcU1 De liable for the same in their natural and private Nation an excapacities: and an action o f debt may in such case be^an

be cre-

brought against them, or any of them, their or any of
their heirs, executors, or administrators, in any court of
lecord o f the United States, or either o f them, by any
cieditor or creditors of the said corporation, and may be
prosecuted to judgment and execution, any condition, cov­
enant, or agreement to the contrary notwithstanding.
nt this provision shall not be construed to exempt the
^JK corP°ration or the lands, tenements, goods, or chate s of the Same from being also liable for, and chargeable
with, the said excess.
Such o f the said directors, who may have been absent Directors ah'a
7
J
sent or dissent1 wie said excess was contracted or created, or who ins exem
pted.

whpn tLn




304

N A T IO N A L

M ONETARY

C O M M IS S IO N .

may have dissented from the resolution or act whereby the
same was so contracted or created, may respectively exon­
erate themselves from being so liable, by forthwith giving
notice o f the fact, and o f their absence or dissent, to the
President of the United States, and to the stockholders, at
a general meeting, which they shall have power to call for
that purpose.
in what the
Ninth. The
eorpo r a t i o n
m a y transact rectlv, deal or
business a n d
.
trade.
gold or silver

said corporation shall not, directlv or indi.

A

7

,

trade in any thing except bills o f exchange,
.

0

07

bullion, or in the sale o f goods realty and

truly pledged for money lent and not redeemed in due
time, or goods which shall be the proceeds o f its lands.

It

shall not be at liberty to purchase any public debt what­
soever, nor shall it take more than at the rate of six per
centum per annum for or upon its loans or discounts.
Loans exceedTenth. N o loan shall be made by the said corporation,
ing c e r t a i n
*
r
i
sums not to be f or the use or on account of the Government o f the United
made the united states, o r gtates, to an amount exceeding five hundred thousand

eignStates but d°fiars, or ° f any particular State, to an amount exceedgfessts °f Con

thousand dollars, or o f any foreign prince or
state, unless previously authorized by a law of the United
States.

Rules to be
prescribed for

Eleventh. The stock o f the'said corporation shall be asA

maki ng tbe signable and transferable, according to such rules as shall
s to c k

able.

assign-

.

.

7

r3

be instituted in that behalf, by the laws and ordinances of
the same.

11 ato r y *
ir
an'd°of

Twelfth. The bills, obligatory and o f credit, under the

tlief seal o'/'thesea^ ° f the said corporation, which shall be made to any
corpora t i o n; pers0n or persons, shall be assignable bv endorsement
able-

thereupon, under the hand or hands o f such person or
persons, and his, her, or their executors or administrators,
and his, her or their assignee or assignees, and so as ab­
solutely to transfer and vest the property thereof in each
and every assignee or assignees successively, and to en­
able such assignee or assignees, and his, her or their ex­
ecutors or administrators, to maintain an action thereupon

Proviso.




in his, her, or their own name or names: Provided , That
said corporation shall not make any bill obligatory, or o f
credit, or other obligation under its seal for the payment
o f a sum less than five thousand dollars.

And the bills

or notes which may be issued by order of the .said corpo­
ration, signed by the president, and countersigned by the
principal cashier or treasurer thereof, promising the pay­
ment of money to any person or persons, his, her or their
order, or to bearer, although not under the seal of the said

LAW S

C O N C E R N IN G

305

B A N K IN G .

corporation, shall be binding and obligatory upon the
same, in like manner, and with like force and effect, as
upon any private person or persons, i f issued by him,
her or them, in his, her or their private or natural ca­
pacity or capacities, and shall be assignable and negoti­
able in like manner as i f they were so issued by such
private person or persons; that is to say, those which
shall be payable to any person or persons, his, her or their
order, shall be assignable by endorsement, in like man­
ner, and with the like effect as foreign bills o f exchange
now are; and those which are payable to bearer shall be
assignable and negotiable by delivery on ly: Provided ,

Proviso.

T hat all bills or notes, so to be issued by said corporation,
shall be made payable on demand, other than bills or
notes for the payment of a sum not less than one hundred
dollars each, and payable to the order o f some person or
persons, which bills or notes it shall be law ful for said
corporation to make payable at any time, not exceeding
sixty days from the date thereof.

Thirteenth. H a lf yearly dividends shall be made o f

Half

yeeriy

so much o f the profits of the bank as shall appear to the made,
directors advisable; and once in every three years the
directors shall lay before the stockholders, at a general
meeting, for their information, an exact and particular

a

statement

statement o f the debts which shall have remained unpaid of the company
after the expiration o f the original credit, for a period fore the stockof treble the term o f that credit, and of the surplus of th e h° ldeis‘
profits, if any, after deducting losses and dividends.

If

D e lin q u e n t

there shall be a failure in the payment o f any part o f any lose'th^beneflt
sum subscribed to the capital o f the said bank, by any °f duldendsperson, co-partnership or body politic, the party failing
shall lose the benefit o f any dividends which may have
accrued prior to the time for making such payment, and
during the delay o f the same.

T ourteenth. The directors o f the said corporation shall

Offices to he

establish a competent office o f discount and deposit in the the8 District ot
istriet of Columbia, whenever any law o f the Unitedthe^eveVLl
« f* eS s^ ah require such an establishment; also one suchautho^fzedTand
^ ce o f discount and deposit in any State in which tw0 requuedby law‘
lousand shares shall have been subscribed or may be
e ’ whenever, upon application o f the legislature of
sue 1 State, Congress may, by law, require the same: Pro-

>n ed, The directors aforesaid shall not be bound to esta

lish such

office before the whole o f the capital o f the




Proviso.

N A T IO N A L

306

M ONETARY

C O M M IS S IO N .

bank shall have been paid up.

A n d it shall be law ful for

the directors o f the said corporation to establish offices
o f discount and deposit, wheresoever they shall think fit,
within the United States or the Territories thereof, and
to commit the management o f the said offices, and the
business thereof, respectively to such persons, and under
such regulations as they shall deem proper, not being
contrary to law or the constitution o f the bank.

O r in­

stead o f establishing such offices, it shall be law ful for
the directors o f the said corporation, from time to time,
to employ any other bank or banks, to be first approved
by the Secretary o f the Treasury, at any place or places
that they may deem safe and proper, to manage and
transact the business proposed as aforesaid, other than
‘ for the purposes o f discount, to be managed and trans­
acted by such offices, under such agreements, and subject
to such regulations, as they shall deem just and proper.
N ot more than thirteen nor less than seven managers
or directors, o f every office established as aforesaid, shall
be annually appointed by the directors o f the bank, to
serve one year; they shall choose a president from their
own number; each o f them shall be a citizen o f the United
States, and a resident o f the State, Territory or District,
wherein such office is established; and not more than
three-fourths o f the said managers or directors, in office
at the time o f an annual appointment, shall be re-ap­
pointed for the next succeeding year; and no director
shall hold his office more than three years out of four, in
succession; but the president may be always re-appointed,
secretary of
the T re a s u r y

Fifteenth. The officer at the head o f the Treasury De.

•
'

au^thorized^to partment o i the United States shall be furnished, from
bank

for ^atime to time, as often as he may require, not exceeding

exceeding

a once a week, with statements o f the amount o f the capital

its concerns,

stock of the said corporation and o f the debts due to the
same; o f the moneys deposited therein; o f the notes in
circulation, and o f the specie in h and; and shall have a
right to inspect such general accounts in the books o f the

Proviso.

bank as shall relate to the said statement: Provided , That
this shall not be construed to imply a right of inspecting
the account o f any private individual or individuals with
the bank.

er^iut^cYtizen

Sixteenth. No stockholder, unless he be a citizen o f the

sLtehe ayn ote United States, shall vote in the choice o f directors.
sm v e
in choice of directors.
No sm a lle r
Seventeenth. No
notes than $5
n
„
to be issued,
than hve dollars.




note shall be issued o f less amount

LAW S

C O N C E R N IN G

307

B A N K IN G .

(Sections 12 and 13 prescribe the iienalties to be im ­
posed in case the corporation, or any person to its use,
shall deal in goods, wares, or merchandise contrary to the
provisions o f this act, or shall lend any sum o f money for
the use o f the Government o f the United States, or o f any
particular State, or any foreign prince or State, except as
allowed above, and without being previously authorized
thereto by law.)
Notes of the
S e c . 14. And be it further enacted, T hat the bills or
bank receivable
notes o f the said corporation originally made payable, or in payments of
all

dues

to

which shall have become payable on demand, shall be re­ United States,
ceivable in all payments to the United States, unless

until, etc.
R e p e a led,
1836, ch. 97.

otherwise directed by act o f Congress.
S e c . 15.

And be it further enacted, T hat during the

continuance o f this act, and wdienever required by the
Secretary o f the Treasury, the said corporation shall give
the necessary facilities for transferring the public funds
from place to place, within the United States, or the T er­
ritories thereof, and for distributing the same in pay­

The bank to
give the neces­
sary facilities
w i t hout any.
c h a r g e , for
tr a n s fe r r in g
the f u n d s of
the Un i t e d
States to dif­
ferent q u a r ­
ters.

ment o f the public creditors, without charging commis­
sions or claiming allowance on account o f difference o f
exchange, and shall also do and perform the several and
respective duties o f the commissioners of loans for the
several States, or o f any one or more o f them, whenever
required by law.
D e p o sits of
S e c . 1G. And be it further enatced, That the deposits
the public mon­
° f the money o f the United States, in places in which the eys to be made
in the bank or

said bank and branches thereof may be established, shall its branches, or
be made in said bank or branches thereof, unless the Sec­
retary o f the Treasury shall at any time otherwise order
and direct; in which case the Secretary o f the Treasury
shall immediately lay before Congress, if in session, and

the reasons to
be laid before
Congress by the
S e c r e ta r y of
t h e Treasury
for its not be­
ing done.

not, immediately after the commencement o f the next
session, the reasons o f such order or direction.
S ec. 17. And be it further enacted, T hat the said cor­
poration shall not at any time suspend or refuse payment
ln S °ld and silver, o f any o f its notes, bills or obligations;
n° i
any moneys received upon deposit in said bank, or
in any 0f its offices o f discount and deposit. A n d if the
•ai

corporation shall at any time refuse or neglect to pay

°n c e|
3aand any bill, note or obligation issued by the cor­
poration, according to the contract, promise or undertak­
ing therein expressed; or shall neglect or refuse to pay on

( cm and any moneys received in said bank, or in any o f its
o ices aforesaid, on deposit, to the person or persons en-




Corpo ration
prohibited from
suspending
p a y m e n t s in
specie, by being
made c b a r g e able with the
payment of int e r e s t at the
rate of 12 per
c e n t per an­
num.

308

N A T IO N A L

M ONETARY

C O M M IS S IO N .

titled to receive the same, then, and in every such case,
the holder o f any such note, bill, or obligation, or the per­
son or persons entitled to demand and receive such moneys
as aforesaid, shall respectively be entitled to receive and
recover interest on the said bills, notes, obligations or
moneys, until the same shall be fully paid and satisfied,
at the rate of twelve per centum per annum from the time
Proviso.

o f such demand as aforesaid; Provided , That Congress
may at any time hereafter enact laws enforcing and regu­
lating the recovery o f the amount of the notes, bills, ob­
ligations or other debts, o f which payment shall have
been refused as aforesaid, with the rate of interest above
mentioned, vesting jurisdiction for that purpose in any
courts, either of law or equity, of the courts o f the United
States, or Territories thereof, or o f the several States, as
they may deem expedient.
(Sections 18 and 19 prescribe the penalties for forg­
ing, counterfeiting, or altering bills or notes o f the bank
or checks drawn upon it, and for passing any forged,
counterfeited, or altered bill, note, or check, and also for
engraving any plate to be used in forging or counterfeit­
ing, or having in possession any such plate or blank notes
in the similitude of those issued by the corporation, or
any paper for use in counterfeiting.)

Bonus to be
S e c . 20. A nd be it further enacted, That in considerap a i d to the .
.
' .
7
united states tion or the exclusive privileges and benefits conferred by
for this char- 1 1 1 1
. ,
,.
*1
ter.
this act, upon the said bank, the president, directors, and

company thereof, shall pay to the United States, out of
the corporate funds thereof, the sum o f one million and
five hundred thousand dollars, in three equal payments;
that is to sa y: five hundred thousand dollars at the ex­
piration o f two years; five hundred thousand dollars at
the expiration o f three years; and five hundred thousand
dollars at the expiration o f four years after the said bank
shall be organized, and commence its operations in the
^congress to

manner herein before provided.
S ec. 21. And be it further enacted, That no other bank

other bank ex-shall be established bv anv future law o f the United States
eept in the Dis.
.
<
•
.
trict of coium-during the continuance ot the corporation hereby created,




for which the faith o f the United States is hereby pledged.

Provided , Congress may renew existing charters for banks
in the District o f Columbia, not increasing the capital
thereof, and may also establish any other bank or banks
in said district, with capitals not exceeding, in the whole,
six millions o f dollars, if they shall deem it expedient.

LAWS

C O N C E R N IN G

309

B A N K IN G .

A n d , notwithstanding the expiration o f the term for
which the said corporation is created, it shall be lawful to
use the corporate name, style, and capacity, for the pur- ,ls^ n e name or
pose o f suits for the final settlement and liquidation o f t!onC etcP0 for
the affairs and accounts o f the corporation, and for the two years after
sale and disposition o f their estate, real, personal, and sh expire.
a11
m ixed: but not for any other purpose, or in any other
manner whatsoever, nor for a period exceeding two years
after the expiration o f the said term o f incorporation.
S ec. 22. A nd be it f urther enacted, T hat i f the subscrip- tim^rescribed
tions and payments to said bank shall not be made and t0 . th ? panics
T <
completed so as to enable the same to commence its opera- erationtions, or i f the said bank shall not commence its opera­
tions on or before the first M onday in A p ril next, then,
and, in that case, Congress may, at any time, within
twelve months thereafter, declare, by law, this act null
and void.
S ec . 23. And be it further enacted, T hat it shall, at all committees
'
#
5
" o
f either house
times, be law ful, for a committee o f either house o f C o n -of c o n g r e s s
gress, appointed for that purpose, to inspect the books, pooks, etc., of
_

#

m

m

* tne

and to examine into the proceedings o f the corporation

r

|

i

• •

d b .d k

.

For what

P Pu rPose-

uereby created, and to report whether the provisions of
this charter have been, by the same, violated or n ot; and

whenever any committee, as aforesaid, shall find and
1
‘eport, or the President o f the United States shall have
reason to believe that the charter has been violated, it may
be lawful for Congress to direct, or the President to order
a scire facias to be sued out o f the circuit court o f the
district o f Pennsylvania, in the name of the United States,
(which shall be executed upon the president o f the cor­
poration for the time being, at least fifteen days before
(be commencement o f the term o f said court,) calling on
fbe said corporation to show cause wherefore the charter
hereby granted, shall not be declared forfeited ; and it
shall be law ful for the said court, upon the return o f the
said scire facias, to examine into the truth o f the alleged
V1Q
iation, and i f such violation be made appear, then to
pronounce and adjudge that the said charter is forfeited
annulled.

Provided , however, Every issue o f fact

" llch may be joined between the United States and the
(<
)1
afion aforesaid, shall be tried by a jury. A nd it
sia
ie lawful for the court aforesaid to require the pro­
duction o f such o f the books o f the corporation as it may
eem necessary for the ascertainment of the controverted
ac
an<l (he final judgment o f the court aforesaid, shall
e examinable in the Supreme Court o f the United States,




Proviso.

310

NATIONAL MONETARY COMMISSION.

by writ of error, and may be there reversed or affirmed,
according to the usages o f law.
Approved, A p ril 10, 1816.
(Paragraph X o f section 11 o f this act provides that
no loans shall be made by the bank for the use o f the
Government o f the United States to an amount exceeding
five hundred thousand dollars, but subsequent acts giving
authority for the borrowing o f money authorize the bank
to loan the amounts notwithstanding the said prohibition.
See act o f M ay 15, 1820, chap. 103, sec. 2 , vol. 3, Stat. L .,
p. 5 8 3 ; act o f March 3, 1821. chap. 38, sec. 2 , vol. 3, Stat.
L ., p. 63 6 ; act o f M ay 21, 1821, chap. 110, sec. 1, vol. 1,
Stat. L ., p. 3 3 ; act o f M ay 26, 1821, chap. 192, sec. 2 , vol.
1, Stat. L ., p. T l; act o f March 3, 1825, chap. 100, sec. 2,
vol. 1, Stat. L ., p. 129.)

3
266.




Stat

N ote.— By the act o f March 3, 1819 (3 Stat. L., 508), the pro­
visions o f the above act which relate to the right o f voting for
directors are enforced, by prescribing, in every case where more
than thirty votes are offered by any one person, oaths as to the
actual ownership o f the shares, to be taken by the person offering
the votes and by the signer o f any proxy. And the same act
provides against the bribery by gift or promise o f the president or
either o f the directors o f the bank, or o f either o f its branches, in
any matter coming before the said president and directors for
decision, by making the briber and the person bribed punishable
on conviction by fine and imprisonment at the discretion o f the
court, and further disqualifies them from holding any office o f
trust or profit under the corporation, or any office o f honor, trust,
or profit under the United States.
L., Note.— The act o f April 20, 1836 (5 Stat. L., 16), repealed all
laws authorizing or requiring the Bank o f the United States to
pay pensions.

(The act o f June 2 3 ,1 8 3 6 (5 Stat. L ., 56, see page 3 2 2 ),
authorized the Secretary o f the Treasury to act as the
agent o f the United States in all matters relating to their
stock in the Bank o f the United States.)
(The resolution o f March 3, 1837 (5 Stat. L ., 200) , au­
thorized the Secretary o f the Treasury to accept the pro­
posed settlement o f the Bank o f the United States, under
the Pennsylvania charter, for the stock o f the United
States in the Bank o f the United States.)
(T he act o f March 2 , 1838 (5 Stat. L ., 2 1 1 ), provided
for the prevention o f the abatement o f suits, etc., in which
the late Bank o f the United States was a party.)
(T h e act o f July 7, 1838 (5 Stat. L ., 2 9 6 ), authorized
the Secretary o f the Treasury to sell the two bonds held
by the United States against the Bank o f the United
States chartered by Pennsylvania.)

LAWS

C O N C E R N IN G

B A N K IN G .

311

A C T O F M A R C H 3, 1817.

Chap.

X X X Y I I I . —A n act transferring the duties of 36o stat L-’
commissioner of loans to the Bank of the United States,
and abolishing the office of commissioner of loans.

Be it enacted by the Senate and House of Representa­
tives of the United States of America , in Congress assem­
bled, That the Bank of the United States, and its several

The Bank of
branches, shall be, and they are hereby, required to do states, etc., to
i
7
7
^
.
perform theduand perform the several duties o f commissioners o f loans ties of com ism
«
. sionersof
lor the several States; and the Bank o f the United loans^ ^ 50
States and its several branches, and such State banks as
the Bank o f the United States may employ in those States
where no branch bank shall be established, shall observe
and conform to the directions which have been or may
hereafter be prescribed by the Secretary o f the Treasury,
with the approbation o f the President o f the United
States, touching the execution o f the duties aforesaid.
S ec. 2 .

And be it further enacted, That all such duties

and acts as are now done and performed by the commis­
sioners o f loans, in transferring stock from the books of
one loan office to another, or to the books o f the Treasnry, or from the books o f the Treasury to the books o f
the loan offices, shall be done and performed by the presi­
dent o f the Bank o f the United States, the president o f
the several branches o f the said bank, and by the presi­
dent o f such State banks as the Bank o f the United
States may employ, (in States where no branch o f the
United States Bank shall be established:) and the acts of
the presidents aforesaid shall be countersigned by the
cashiers o f those banks respectively.
S ec. 3. And be it further enacted, That it shall be the taT e j8* * *
r^ 0
duty o f the Secretary o f the Treasury to notify the presi- t Qta furyt
e jS v
dent o f the Bank o f the United States, that the duties president of
w performed by the commissioners o f loans will be united states,
transferred to the Bank o f the United States, and he shall C "
tC
( uect the commissioners o f loans and the agents for m ililary Pensions, where there is no commissioner, respec( n e v, in the several States, to deliver to the president o f
ie lank o f the United States, or to the president o f a
> anch thereof, or to the president o f such State bank as
i
16
° f the United States may employ, on such day
or ( ays as he may designate, the register, and all the rec­
oil s and papers o f their respective offices; and it shall be
15712°—io-----22




312

N A T IO N A L

M ONETAKY

C O M M IS S IO N .

the duty o f the said commissioners of loans and agents
for pensioners to comply with the said direction, and also
to take duplicate receipts for the delivery o f the rec­
ords and papers herein described, one of which shall be
transmitted, without delay, to the Secretary o f the TreasPrortso^as u ry: Provided , however , That the Secretary o f the Treasetc.

’ ury may designate such time before the first day o f Janu­
ary, one thousand eight hundred and eighteen, for the
performance o f the duties aforesaid, as the public con-

Proviso; as venience will p erm it: A nd provided also, T hat this act
to States where
A
'
L
*
no banks^ are shall not be construed to extend to any agent for military
law .

' pensions in any State where there is no bank established

officeof com
-

by law.
g E > 4 . x U i,e it further enacted, That the office of
C
4 {d

e ns abolished‘ commissioner o f loans, upon the delivery o f the records
°tc
and papers, as herein required, to the Bank o f the United
States, or its branches, or to the State banks employed by
the Bank o f the United States in those States where there
may be no branch, shall be, and hereby is, abolished; and
the pay and emoluments o f the said commissioners o f
loans, and the clerks and persons employed by them,
after such delivery, shall respectively cease and deter­
An act for

th e p r o m p t

mine.
g EC. 5.

j)6 it further enacted, That the act, entitled

'

Subifcaccounts U n ac^ ^or the Prompt settlement o f public accounts,”
^
I? 3d of Mar., shall commence, and be in force, on and after the third
e
the o°fc , £rom
5
’
18ic't of Mar c
^ay
instant, March, any thing in the aforesaid act
3 ,1 8 1 7 , ch. 45 . to the contrary notwithstanding.
Approved, March 3 ,1 8 1 7 .

/

A C T O F M A R C H 3, 1817.
3 stat. l ., C h a p . X C I I I .— A n act to incorporate the subscribers to
•
•
• • 1
certain banks in the District of Columbia, and to pre­

383




vent the circulation of the notes of unincorporated
associations within the said district.
(Sections 1 to 13 provide for the incorporation of the
Farmers’ and Mechanics’ Bank o f Georgetown and pre­
scribes rules, etc.
(Section 14 provides, among other things, that the bank
shall, in no case, buy and sell the funded debt o f the
United States.

LAW S

C O N C E R N IN G

313

B A N K IN G .

(Sections 23, 24, 25, 26, and 2T apply said rules, etc.,
to other banks in W ashington, Georgetown, and Alexan­
dria.)
A C T O F M A R C H 3 ,1 8 2 5 .
C h a p . L X V .— A n A ct more effectually to provide for the ^ 4

stat.

l .,

punishment of certain crimes against the United States,
%
and for other purposes.
*

*

S .

*

*

*

ec 17. And be it further enacted, That, if any person
or persons shall falsely make, forge, or counterfeit,

or

Trea0srury'notesf
pubnc

cause or procure to be falsely made, forged, or counter-1 n ct of4Apr
{ted
feited, or willingly aid or assist in falsely making, forg- ^
m g, or counterfeiting, any paper, writing, or instrument,
ln imitation o f, or purporting to be, an indent, certificate
of the public stock, or debt, treasury note, or other public
security of the United States, or any letters patent, issued
°r granted by the President o f the United States, or any
bill, check, or draft for money drawn by, or on the treas­
urer o f the United States, or by, or on, any other public
officer or agent o f the United States, duly authorized to
make, draw, accept, or pay the same, on behalf and for
account o f the United States, (a) or if any person or
persons shall pass, utter, or publish, or attempt to pass,
ntter, or publish, as true, any such false, forged, or coun­
terfeited paper, writing, or instrument, knowing the same
to be false, forged, or counterfeited, with intent to de­
fraud the United States, or any body politic or corpoiate, or any other person or persons whatsoever; or if any
person or persons shall falsely alter any indent, certifi­
cate of the public stock, or debt, treasury note, or other
public security o f the United States, or any letters patent,
issued or granted by the President o f the United States,
or any bill, check, or draft for money drawn by or on the
treasurer o f the United States, or any other public officer
or agent o f the United States, duly authorized to make,
diaw , accept, or pay such bill, check, or draft, or if any
person or persons shall pass, utter, or publish, or attempt
to pass, utter, or publish, as true and unaltered, any such
a
altered indent, certificate, treasury note, or other
pu lie security, letters patent, or bill, check, or draft,

, nowing the same to be falsely altered, with intent to
i e raud the United States, or any body politic or cor­
porate, or any person or persons whatsoever, (b) every




17901ch- 9>

314

N A T IO N A L

M ONETARY

C O M M IS S IO N .

such person, so offending, shall be deemed guilty o f felony,
and shall, on conviction thereof, be punished by fine, not
exceeding five thousand dollars, and by imprisonment
and confinement to hard labour, not exceeding ten years,
according to the aggravation o f the offence.
(Section

18 makes it an offense and punishable to

forge Treasury notes or other public securities of the
United States, certificates o f stock o f the United States,
or certificates o f stock o f the Bank o f the United States.)
He

.

>!c

He

He

He

Approved, March 3, 1825.
A C T O F A P R I L 11, 1836.
5 stat. l ., 8. C h a p . L .— A n act to repeal so much of the act entitled
“ Aw act transferring the duties of Commissioner of

Loans to the Bank of the United States, and abolishing
the office o f Commissioner of Loans” as requires the
Bank of the United States to perform the duties of
Commissioner of Loans for the several States.
(Section 1 repeals the provisions o f the act of March
3, 1817, which transfer the duties o f commissioner o f
loans to the United States Bank, its branches and state
banks employed by it, and requires the immediate trans­
fer o f all papers and records relating to said duties to the
Secretary o f the Treasury.)
Banks to pay S ec. 2. And he it further enacted, That the Bank o f
all m
oney into
.
'
7
the Treasury the United States and its several branches, and the State
within three
months.
Banks employed by the Bank o f the United States, per­




form ing the duties of Commissioners o f Loans, shall be,
and they are hereby required to pay into the Treasury of
the United States, within three months after the passing
o f this act, all the money in their possession for the
redemption o f the public debt o f the United States, and
the interest thereon remaining in their hands, which has
not been applied for by the person or persons entitled to
receive the same.
S ec . 3. A nd he it further enacted, T hat it shall be the
duty o f the Secretary o f the Treasury to pay over to the
person or persons entitled to receive the same, the amount
so received into the Treasury, by virtue o f the second sec­
tion o f this act, out o f any money in the Treasury not
otherwise appropriated.
S ec . 4. And he it further enacted, T hat nothing con­
tained in this act shall be construed to authorize the

LAW S

C O N C E R N IN G

315

B A N K IN G .

appointment o f a Commissioner or Commissioners of
Loans in any State, District, or Territory o f the United
States.
Approved, A p ril 11, 1836.
N ote.— By the act o f April 20, 183G (5 Stat. L., 16), it is also

provided that all acts and parts o f acts enabling the Bank o f the.
I nited States or its branches to pay pensions granted under the
authority o f the United States are repealed, and that payments o f
pensions shall be made by such persons and corporations as the
Secretary o f W ar may direct.

A C T O F J U N E 15, 1836.
C h a p . X C V I I .— A n act repealing the fourteenth section

stat. l .,

of the “ A ct to incorporate the subscribers to the Bank
of the United States,” approved, April tenth, eighteen
hundred and sixteen.
Be it enacted by the Senate and House of Representa- g e^°tl! ^entii
lives of the United States of America in Congress assem- pealed.
bled, That the fourteenth section o f the act entitled “ A n
act to incorporate the subscribers to the Bank of the
United States,” approved A p ril tenth, eighteen hundred
and sixteen, shall be, and the same is hereby, repealed.

Approved, June 15, 1836.
A C T O F J U N E 23, 1836.
C h a p . C X V . — A n act to regulate the deposites of the o5 stat.

public money.

l

.,

[Repealed.]

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, I hat it shall be the duty o f the Secretar3T o f th e 4 Ac| of July
treasury to select as soon as may be practicable and 354.
employ as the depositories o f the money o f the United „ secretary of
taies, such o f the banks incorporated by the
to select banks.

several

States, by Congress for the District, of Columbia, or by
tlie Legislative Councils o f the respective Territories for
those Territories, as may be located at, adjacent or con­
venient to the points or places at which the revenues may
te collected, or disbursed, and in those States, Territories
or
lstncts in which there are no banks, or in which no
lank can be employed as a deposite bank, and within
v ich the public collections or disbursements require a
i epository, the said Secretary may make arrangements
''it h a bank or banks, in some other State, Territory or




316

N A T IO N A L

District,

to

M ONETARY

establish

an

C O M M IS S IO N .

agency,

or

agencies,

in the

States, Territories or Districts so destitute o f banks, as
banks o f deposite; and to receive through such agencies
such deposites o f the public money, as may be directed to
be made at the points designated, and to make such dis­
bursements as the public service may require at those
points; the duties and liabilities o f every bank thus
establishing any such agency to be the same in respect to
its agency, as are the duties and liabilities o f deposite
banks generally under the provisions o f this act: Pro­

Proviso.

vided, T hat at least one such bank shall be selected in each
State and Territory, i f any can be found in each State
and Territory willing to be employed as depositories of
the public money, upon the terms and conditions herein­
after prescribed, and continue to conform thereto; and
that the Secretary o f the Treasury shall not suffer to re­
main in any deposite bank, an amount o f the public
•moneys more than equal to three-fourths o f the amount
o f its capital stock actually paid in, for a . longer time
than may be necessary to enable him to make the trans­
fers required by the twelfth section o f this act; and that
the banks so selected, shall be, in his opinion, safe deposi­
tories o f the public money, and shall be willing to under­
take to do and perform the several duties and services,
and to conform to the several conditions prescribed by
this act.
where there is S ec . 2. And be it further enacted, T hat if, at anv point
no bank w
hich
'
7
’
\r
the secretary or place at which the public revenue mav be collected,
approves, or
A
r
.
J
’
w
here banks re- there shall be no bank located, which, in the opinion o f the
fuse, a selec. \
'
•
tion m
ay be Secretary o f the Treasure, is m a safe condition, or where
H
1H.Q6 fit

SOIHG

4
7

^ '

*

place adjacent, all the banks at such point or place shall fail or refuse




to be employed as depositories o f the public money o f the
United States, or to comply with the conditions pre­
scribed by this act, or where such banks shall not have
sufficient capital to become depositories o f the whole
amount o f moneys*collected at such point or place, he
shall and may order and direct the public money col­
lected at such point or place to be deposited in a bank or
banks in the same State, or in some one or more o f the
adjacent States upon the terms and conditions hereinafter
rroviso.

prescribed: Provided , That nothing in this act contained
shall be so construed as to prevent Congress at any time
from passing any law for the removal o f the public money
from any o f the said banks, or from changing the terms
o f deposite, or to prevent the said banks at any time from

LAWS

C O N C E R N IN G

317

B A N K IN G .

declining any longer to be the depositories o f the public
money upon paying over, or tendering to pay, the whole
amount o f public moneys on hand, according to the terms
o f its agreement with the said Secretary.
S ec . 3. And he it further enacted, T hat no bank shall n?|°ks
hereafter be selected and employed by the Secretary o f copyteof e?harthe Treasury as a depository o f the public money, u n tilter*etcsuch bank shall have first furnished to the said Secretary
a statement o f its condition and business, a list o f its
directors, the current price o f its stock; and also a copy
o f its charter; and likewise, such other information as
may be necessary to enable him to judge o f the safety o f
its condition.
S ec . 4. And he it further enacted, T hat the said banks,
before they shall be employed as the depositories o f the
public money, shall agree to receive the same, upon the
following terms and conditions, to w it:
First. Each bank shall furnish to the Secretarj7 o f the

Terms ^to b
e

1 reasury, from time to time, as often as he may require, the banks.
n° t exceeding once a week, statements setting forth its
condition and business, as prescribed in the foregoing
section o f this act, except that such statements need not,
unless requested by said Secretary, contain a list of the
directors, or a copy o f the charter.

A n d the said banks

shall furnish to the Secretary o f the Treasury, and to the
Treasurer o f the United States, a weekly statement of the
condition o f his account upon their books.

A n d the Sec­

retary o f the Treasury shall have the right, by himself,
°r an agent appointed for that purpose, to inspect such
general accounts in the books o f the bank, as shall relate
to the said statements: Provided , T hat this shall not be
construed to im ply a right o f inspecting the account of
any private individual or individuals with the bank.
Secondly. T o credit as specie, all sums deposited therein
to the credit o f the Treasurer o f the United States, and to
Pay all checks, warrants, or drafts, drawn on such deposites, in specie i f required by the holder thereof.
Thirdly. T o give, whenever required by the Secretary
°

^ 1 ^.leasui7 ’ the necessary facilities for transferring
G
e public funds from place to place, within the United
tates, and the Territories thereof, and for distributing

e same in payment o f the public creditors, without
c largmg commissions or claiming allowance on account
ot difference o f exchange.




Proviso,

31 8

N A T IO N A L

M ONETARY

C O M M IS S IO N .

Fourthly. To render to the Government of the United
States all the duties and services heretofore required by
law to be performed by the late Bank o f the United
States and its several branches or offices.
Banks issuing
S ec . 5. And be it further enacted, That no bank shall
notes less than
$5 not to be se­ be selected or continued as a place o f deposite o f the public
lected.

money which shall not redeem its notes and bills on de­
mand in specie; nor shall any bank be selected or con­
tinued as aforesaid, which shall after the fourth of July,
in the year one thousand eight hundred and thirty-six,
issue or pay out any note or bill o f a less denomination
than five dollars; nor shall the notes or bills o f any bank
be received in payment o f any debt due to the United
States which shall, after the said fourth day of July, in
the year one thousand eight hundred and thirty-six, issue
any note or bill of a less denomination than five dollars.

Secretary may
S e c . 6. And be it further enacted, That the Secretary
require secur­
ity.
o f the Treasury shall be, and he is hereby authorized, and

it shall be his duty, whenever in his judgment the same
shall be necessary or proper, to require of any bank so
selected and employed as aforesaid, collateral or addi­
tional securities for the safe keeping o f the public moneys
deposited therein, and the faithful performance of the
duties required by this act.
Secretary au­
S e c . 7. And be it further enacted, That it shall be law­
thorized to en­
ter into con­ ful for the Secretary o f the Treasury, to enter into con­
tracts.

tracts in the name and for and on behalf o f the United
States, with the said banks so selected or employed,
whereby the said banks shall stipulate to do and perform
the several duties and services prescribed by this act.
No bank se­
S ec. 8. And be it further enacted, That no bank which
lected to be
d isc o nt inued shall be selected or employed as the place o f deposite of
but for certain
causes.
the public money, shall be discontinued as such deposi­




tory, or the public money withdrawn therefrom, except
for the causes hereinafter mentioned, that is to sa y: I f at
any time, any one o f said banks shall fail or refuse to per­
form any o f said duties as prescribed by this act, and
stipulated to be performed by its contract; or, if any o f
said banks shall at any time refuse to pay its own notes
in specie if demanded; or shall fail to keep in its vaults
such an amount o f specie as shall be required by the Sec­
retary o f the Treasury, and shall be, in his opinion, neces­
sary to render the said bank a safe depository o f the
public moneys, having due regard to the nature of the

319

LAWS CONCERNING BANKING.

business transacted by the bank; in any and every such
case it shall be the duty of the Secretary o f the Treasury
to discontinue any such bank as a depository, and with­
draw from it the public moneys which it may hold on deposite at the time o f such discontinuance.

A n d in case

o f the discontinuance o f any o f said banks, it shall be the
duty o f the Secretary o f the Treasury to report to Con­
gress immediately i f in session, and if not in session, then
at the commencement o f its next session, the facts and
reasons which have induced such discontinuance.

A nd

in case o f the discontinuance o f any o f said banks as a
place o f deposite o f the public money for any of the
causes herein before provided, it shall be law ful for the
Secretary o f the Treasury to deposite the money thus
withdrawn in some other banks o f deposite already se­
lected, or to select some other bank as a place o f deposite,
npon the terms and conditions prescribed by this act.
A nd in default o f any bank to receive such deposite, the
money thus withdrawn shall be kept by the Treasurer o f
the United States, according to the laws now in force;
and shall be subject to be disbursed according to law.
S ec. 9. And be it further enacted, That until the Sec- em
pi0yed%o°be
retary o f the Treasury shall have selected and employed co n tin u e d u n til,
the said banks as places o f deposite o f the public money,
m conformity to the provisions o f this act, the several
State and District banks at present employed as deposi­
tories o f the money o f the United States, shall continue
to be the depositories aforesaid upon the terms and con­
ditions upon which they have been so employed.
S e c . 10. And be it f urther enacted, T hat it shall be the , secretary to
uuiy ol the Secretary o f the Treasury to lay before Con- b e f o r e congress, at the commencement o f each annual session, a
statement o f the number and names o f the banks employed
as depositories o f the public money, and o f their condi­
tion, and the amount o f public money deposited in each,
as shown by their returns at the Treasury; and i f the seection o f any bank as a depository o f the public money
e ma(le by the Secretary o f the Treasury, while Con­
gress is in session, he shall immediately report the name
an

condition o f such bank to Congress; and if any such
ec^ lon shall be made during the recess o f Congress, he

? a 1eport the same to Congress during the first week o f
its next session.
S ec . 11. And be it further enacted, That whenever the ln®a ^mier
rest
amount o f public deposites to the credit o f the Treasurer dancescircum
'




T

320

N A T IO N A L

M ONETARY

C O M M IS S IO N .

of the United States, in any bank shall, for a whole
quarter o f a year, exceed the one-fourth part o f the
amount o f the capital stock o f such bank actually paid
in, the bank shall allow and pay to the United States, for
the use o f the excess o f the deposites over the one-fourth
part o f its capital, an interest at the rate o f two per
centum per annum, to be calculated for each quarter,
upon the average excesses o f the quarter; and it shall be
the duty o f the Secretary o f the Treasury, at the close of
each quarter, to cause the amounts on deposite in each deposite bank for the quarter, to be examined and ascer­
tained, and to see that all sums o f interest accruing under
the provisions o f this section, are, by the banks re­
spectively passed to the credit o f the Treasurer o f the
T ra n s fe rs und er c e r t a i n
cases i d ecla red

United States in his accounts with the respective banks.
S e c . 12. And be it further enacted, That all warrants

'

/

or orders for the purpose ot transferring the public funds
from the banks in which they now are, or may hereafter
be deposited, to other banks, whether o f deposite or not,
for the purpose o f accommodating the banks to which
the transfer may be made, or to sustain their credit, or for
any other purpose whatever, except it be to facilitate the
public disbursements, and to comply with the provisions
o f this act, be, and the same are hereby, prohibited and
declared to be illegal; and in cases where transfers shall
be required for purposes o f equalization under the pro­
visions o f this act, in consequence o f too great an accu­
mulation o f deposites in any bank, such transfers shall
be made to the nearest deposite banks which are consid­
ered safe and secure, and which can receive the moneys
to be transferred under the limitations in this act im ­
posed : Provided , T hat it may be law ful for the President
o f the United States to direct transfers o f public money
to be made from time to time to the mint and branch
mints o f the United States, for supplying metal for coin­
ing.

T h e su rp lu s
In the T rea s-

M *b°ye
U

0 0 0 ,0 0 0

to

be

S e c . 13. A nd be it further enacted, T hat the money
.

'

.

.

J

.

which shall be in the Treasury ot the United States, on
.

~

/

the^s^ve'r a1
!
° * J anuary5 eighteen hundred and thirtystates.
seven, reserving the sum o f five' millions o f dollars, shall




be deposited with such o f the several States, in propor­
tion to their respective representation in the Senate and
House o f Representatives o f the United States, as shall,
by law, authorize their Treasurers, or other competent
authorities to receive the same on the terms hereinafter
specified; and the Secretary o f the Treasury shall deliver

LAWS

C O N C E R N IN G

B A N K IN G .

321

the same to such Treasurers, or other competent authori­
ties, on receiving certificates of deposite therefor, signed
by such competent authorities, in such form as may be
prescribed by the Secretary aforesaid; which certificates Avt <rfOct.2,
shall express the usual and legal obligations, and pledge
the faith of the State, for the safe keeping and repay­
ment thereof, and shall pledge the faith of the States
receiving the same, to pay the said moneys, and every
part thereof, from time to time, whenever the same shall
be required, by the Secretary of the Treasury, for the
purpose of defraying any wants of the public treasury,
beyond the amount of the five millions aforesaid: P r o ­
vided, That if any State declines to receive its proportion
of the surplus aforesaid, on the terms before named, the
same shall be deposited with the other States, agreeing
to accept the same on deposite in the proportion afore­
said: A n d p rov id ed fu rth er, That when said money, or
any part thereof, shall be wanted by the said Secretary, to
meet appropriations by law, the same shall be called for,
in rateable proportions, within one year, as nearly as con­
veniently may be, from the different States, with which
the same is deposited, and shall not be called for, in sums
exceeding ten thousand dollars, from any one State, in
any one month, without previous notice of thirty days,
for every additional sum of twenty thousand dollars,
which may at any time be required.
S ec. 14. A n d he it fu rth er enacted, That the said de- P ro p o rtio n s in
•■
'
5
w h ich the deposites shall be made with the said States in the f o l l o w - p o s i t s shall be
inS proportions, and at the following times, to wit: one
quarter part on the first day of January, eighteen hun­
dred and thirty-seven, or as soon thereafter as may be;
one quarter part on the first day of April, one quarter
Part on the first day of July, and one quarter part on the
first day of October, all in the same year.
(Section 15 makes provision for additional clerks on
account of this act.)
Approved, June 23, 183G.
^ ° TE*
*ke ac*t o f July 5, 1838, the operation o f the last
^ ause o f section 5, prohibiting the receipt in payments to the
cd States o f the notes o f any bank which shall issue notes o f
^ess than five dollars after July 4, 1836, is suspended until October
’
^roni said last-mentioned dates the notes o f no bank
S a * *> So received, which shall after that date issue, reissue, or
(1
hay out any uote o f less than five dollars. (5 Stat. L., 255.)




322

R A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F J U N E 23, 1836.
5 stat. l., 56. c HAP> C X V I .— A n act authorizing the Secretary o f the

Treasury to act as the agent of the United States in all
matters relating to their stock in the Bank of the
United States.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assemthe^reaYury to ^led, That from and after the passage o f this act it shall
eS
rcTsen thX
< e^e the duty
the Secretary o f the Treasury, to assume
agency.
and exercise the agency and direction in behalf o f the
United States, over property in the Bank o f the United
States, whether the same be standing on the books of the
bank in the name o f the United States, or o f the Treasurer
o f the United States, for the use o f the Secretary of the
N avy, for the payment o f navy pensions; and the Sec­
retary o f the Treasury is hereby invested with the au­
thority necessary for carrying into effect the duties of
said agency, by voting in behalf o f the United States at
any meetings o f the stockholders, and performing any
other act in relation to the same which any stockholder
would be authorized to do.
Directors of
S e c . 2. A nd be it further enacted, That, as agent of
the bank to fu r .
'
’
7
nish s t a t e - t h e United States, as aforesaid, the Secretary o f the
m
ents to him
.
7
7
.
^
treasury, shall be furnished, from time to time, as often
as he may require— by the directors o f the Bank o f the
United States, or by the trustees who shall have been, or
may be, appointed, either by said directors or the stock­
holders o f said bank, or in their behalf, or by such indi­
viduals as may have the custody, control, or possession
o f the books and effects o f the same— with statements of
the amount o f the capital stock o f the said corporation
undivided, o f the debts due beyond the same on account
o f said bank, o f the moneys remaining on deposite, o f the
notes o f said bank outstanding, and o f the specie on hand
on account o f the same, and said Secretary shall have the
same right as any stockholder to inspect and examine, or
cause to be inspected and examined, all such accounts in
the books o f said bank, or o f any trust arising out o f or
holding the effects o f said corporation, as shall relate to
the statements hereby required to be made,
m
oney from
Vtie

S ec.

And be it further enacted, That the Secretary o f

posite thed
sametlie Treasury be authorized and directed to receive and
intheTreasury. deposite in the Treasury o f the United States, any divi-




LAW S

C O N C E R N IN G

v 323

B A N K IN G .

(lends which may be made o f the capital stock or of the
surplus profits o f said bank.
S e c . 4. And be it further enacted, That the Secretary
»

i n

,

i , i

i

•

,

•

i

Torecei ve

-c a p ita l
etc.

stock,

ot the treasury shall be, and he hereby is, authorized and

empowered to receive the capital stock belonging to the
United States, in the late Bank o f the United States, in
such instalments, and payable at such times, and with
such rates o f interest, as he shall see fit to agree to ; and
also, to settle and adjust the claim for surplus profits,
accruing on said capital stock, on such terms as he may
think proper, and in like manner to receive the amount
thereof in such instalments, and payable at such times,
and with such rates of interest, as he may agree to.
Approved, June 23, 1836.
A C T O F J U L Y 4, 1836.

A n act supplementary to an act en- n | s t a t - l .,
titled “ A n act to regulate the deposites of the public [Obsolete.]

C h a p . C C C L I Y .—

m on ey” passed twenty-third (of) June eighteen hun­
dred and thirty-six.
He it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, That nothing in the act to which this is a sup-

Act

of

June

piement, shall be so construed as to prevent the Secre- nj>. x
i
S e cre ta ry or
tary o f the Treasury from making transfers from banks t h e Treasury
in

r

.

qj

°

1 one otate or Territory, to banks in another State or

T e r r i In

i

i

i

p

•

i

m ay
make
tra n sfe rs from

• banks in one

11L°ry , whenever such transfers may be required, instate

Order t n

to

.

.

.

prevent large and inconvenient accummulations

or T e rrito ry to th ose
in a n oth er.

1 1 Particular places, or in order to produce a due equality,
1
‘ind just proportion, according to the provisions o f said
act.

Approved, July

4, 1836.

A C T O F O C T O B E R 2, 1837.
C h a p . I .— An

act to postpone the fourth instalment of O ^ s t a t .
Q

l .,

deposite with the States.
ti
^ enac^
e(b by the Senate and House of RepresentaireH of the United States of America in Congress as­
sent j ed, That the transfer o f the fourth instalment o f o3Aci 836 J c
u^e
eposites directed to be made with the States, under the n ji’
eenth

section




of

the

act

of

June

tw en ty-th ird ,**^

nniLd
Jan- *
•

324

N A T IO N A L

M ONETARY

C O M M IS S IO N .

eighteen hundred and thirty-six, be and the same is
hereby postponed till the first day o f January, one thousand eight hundred and thirty-nine: Provided , That the

P ro v iso .

three first instalments under the said act shall remain on
deposite with the States, until otherwise directed by
Congress.
Approved, October 2, 1837.
A C T O F O C T O B E R 16, 1837.
•>06 s t a t ‘ L -’ C

h a p

I X . — A n act for adjusting the remaining claims

.

upon the late deposite hanks.

o ? hth eeCTreas^

Be it enacted hy the Senate and House o f Representa­
tives of the United States of America in Congress assembled, That the Secretary o f the Treasury be, and he is

" ^ c o n t i n u e 2'to hereby, authorized to continue to withdraw the public
w ith d ra w
the moneyS now remaining in any o f the former deposite
in the fo rm e r
d ep osite banks,

banks, in a manner as gradual and convenient to the

°

‘

c o n v e n ie n t ^ t >iTlsfitut:ions
a<

as shall be consistent with the pecuniary

bee m c o n s is t e n t wan^s
w ith th e w a n ts
o f the G ov ern -

° f the Government, and the safety o f the funds
thus to be draw n: and that no further interest than that

“e t ec J n required
n t . ue
23^ 1836,

ch . o n e

by the deposite act o f the twenty-third o f June,
thousand eight hundred and thirty-six, under which

those deposites were made, shall be demanded o f any
bank which has met, and shall hereafter meet, the requio f the Department.
This provision shall also

, T h i s provi-gitions
sion to exten d

to

r

1

moneysextend to such public moneys as may remain in any o f

w h eth er sta n d -

#

1

•

,

«

i n §. t(> the the said banks, whether standing to the credit o f the
u n it e d
states Treasurer o f the United States, or o f any disbursing or

T rea su rer, o r
a n y oth er offlce r o f th e
G ov ern m en t.
In c a s e o f
any o f s a i d
banks n o t com p ly in g w ith the
req u isition s o f
t h e secreta ry
o f th o T rea su ry, suits^shall
un less,




etc.

.

7

^

other public officer o f the Government,
1

°

.

S ec. 2. And he it further enacted, T hat in case o f neg-

'

7

lect or refusal by anv of the said banks to comply with
.

1
7

y

r

^

the requisitions ot the Secretary ot the treasury, as he
*
.
.
^
.
shall make them, in conformity with the hrst section ot
7

this act, suits shall be instituted, where that has not

’ already been done, to recover the amounts due to the
United States, unless the defaulting bank shall forth­
with cause to be executed and delivered to the Secretary
o f the Treasury a bond, with security to be approved by
the Solicitor o f the Treasury, to pay to the United States
the whole moneys due from it, in three instalments: the
first to be paid on the first day o f July next, the second
on the first day of January, eighteen hundred and thirtynine, and the remaining instalment on the first day o f
July, eighteen hundred and thirty-nine; and the default

LAWS

C O N C E R N IN G

325

B A N K IN G .

mentioned in this act, on which interest is to commence
at the rate of six per

(centum per annum,)

shall be

understood to be the neglect or omission o f said banks, or
any o f them, to answer the drafts or requisitions o f the
Secretary of the Treasury made on them according to the
provisions o f the first section of this act;

and interest

thereon at the rate o f six per centum per annum, from
the time o f default, together with any damages which
may have accrued to the United States from protests o f
drafts drawn upon it, or from any other consequence o f
its failure to fulfil its obligations to the public treasury.

Approved, October 16, 1837.
A C T O F J U L Y 5, 1838.
C h a p . C L V I I I .— A n act to modify the last clause of the2£

s t a t - L->

fifth section of the deposite act of the twenty-third of
June, eighteen hundred and thirty-six.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, T hat the last clause of the fifth section o f the act 23A
ct18°f June
6
entitled “ A n act to regulate the deposites o f the publici i^5. i
money,” approved on the twenty-third day o f June, eight-

fled asf’ to j s -

een hundred and thirty-six, declaring that the notes or under $5 .
bills of no bank shall be received in payment o f any debt
due to the United States, which shall, after the fourth
day o f July, in the year one thousand eight hundred and
thirty-six, issue any note or bill o f a less denomination
than five dollars, shall be, and the same is hereby, so far
modified as that the interdiction as to the reception o f the
hills and notes shall not continue against any bank which
has, since the said fourth day o f July, in the year one
thousand eight hundred and thirty-six, issued bills or
notes o f a less denomination than five dollars, or which
shall issue any such bills or notes prior to the first day
° f October, in the year eighteen hundred and thirtyeight, but that from and after the said last mentioned
day, the bills or notes o f no bank shall be received in pay­
ment o f any debt due to the United States, which bank
s all, after that date, issue, reissue, or pay out any bill
or note of a denomination less than five dollars.

Approved, July 5, 1838.




326

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F J U L Y 7, 1838.
^^5 stat. l ., C h a p . C L X X X Y . — A n act to prevent the issuing and

circulation of the hills, notes and other securities of
corporations created hy acts of Congress which have
expired.
(Section 1 makes it a high misdemeanor for any di­
rector, agent, or trustee o f any corporation created by
act o f Congress, the charter whereof has expired, to re­
issue or knowingly put in circulation any bill, note, check,
draft, or other security o f such expired corporation; and
section 2 gives to the circuit courts o f the United States
jurisdiction, on bill or petition, to restrain the issue or
transfer o f such bills, notes, and other securities when in
the possession or control of any director, agent, or trus­
tee of such expired corporation, and to cause such o f said
bills, notes, and securities as have been redeemed to be
delivered up and canceled.)
Approved, July 7, 1838.
A C T O F J U L Y 7 ,1 8 3 8 .
309

sta t’ L* C h a p . C C X I I . — A n act to restrain the circulation of
’
small notes, as a currency, in the District of Columbia,

and for other purposes.
(T his act made it unlawful after the 10th o f A p ril,
1839, to issue, etc., in the District o f Columbia, any note,
etc., less than five dollars, and after the passage o f this act
to issue, de novo, or knowingly to pass, etc., within the
District, any note, etc., o f less than five dollars. The act
o f December 27, 1854 (10 Stat. L ., 5 9 9 ), contains similar
provisions.)
A C T O F A U G U S T 13, 1841.
439

sta t* L- C h a p . V I I .— A n act to repeal the act entitled uA n act to
provide for the collection, safe-keeping, transfer, and
disbursement of the public revenue,” and to provide for

the punishment of embezzlers of public money , and for
other purposes.
*
23Aci 836,J che
U
thu’telnthp and

S ec.

*

3. And be it

*
f

*

*

urther enacted, That the act entitled,

U n act to regulate the deposits o f the public money,”
^

tioM,e repealed] aPProvecl 011 the twenty-third day o f June, eighteen hun-




LAWS

C O N C E K N IN G

B A N K IN G .

327

clred and thirty-six, excepting the thirteenth and four­
teenth sections thereof, be and the same hereby is re­
pealed.
*
Approved August 13, 1841.
A C T O F A U G U S T 5, 1861.
C h a p . X L V I .— A n act supplementary to an act entitled

stat. L-

uA n act to authorize a national loan, and for other
purposes.”

p

S ec . 6. And he it further enacted, That the provisions
'

■
’

x

Portions o f
subtreasury act

of the act entitled “ A n act to provide for the better or- suspended,
ganization of the Treasury, and for the collection, safe­
keeping, transfer, and disbursements of the public revenue,” passed August six, eighteen hundred and forty-six,
be and the same are hereby suspended, so far as to allow

y ® 1 ®,x clj; 59
4

the Secretary o f the Treasury to deposit any o f the
moneys obtained on any o f the loans now authorized by
law, to the credit o f the Treasurer o f the United States,
m such solvent specie-paying banks as he may select; soiv!EtS ecieD
isp
and the said moneys, so deposited, may be withdrawn payins banks,
from such deposit for deposit with the regular author­
e d depositaries, or for the payment o f public dues, or
paid in redemption o f the notes authorized to be issued
Under this act, or the act to which this is supplementary,
payable on demand, as may seem expedient to, or be di­
rected by, the Secretary o f the Treasury.
*
*
*
*

*

Approved, August 5, 1861.
A C T O F F E B R U A R Y 25, 1863.
C h a p . L V I I I .— An act to provide a National Currency,

secured by a Pledge of United States Stocks , and to
provide for the Circulation and Redemption thereof.
( -This act was repealed and superseded by the act o f
similar title approved June 3, 1864, but with so little
change i its leading features as to make it sufficient in
<hange in

and to extract here only the sections providing for the
15712°—10------ 23




stat. l .,




N A T IO N A L

M ONETARY

C O M M IS S IO N .

apportionment o f the bank circulation and for the issue
o f secured notes by State banks.)

S ec . IT. And be it further enacted, That the entire
amount o f circulating notes to be issued under this act
shall rot exceed three hundred millions of dollars. One
hundred and fifty millions o f which sum shall be appor­
tioned to associations in the States, in the District o f
Columbia, and in the Territories, according to represent­
ative population, and the remainder shall be appor­
tioned by the Secretary o f th$, Treasury among associa­
tions formed in the several States, in the District o f
Columbia, and in the Territories, having due regard to
the existing banking capital, resources, and business, of
such States, District, and Territories.
*

*

*

*

*

S ec . 61. And be it further enacted, T hat any banking
association or corporation law fully in existence as a bank
o f circulation on the first day o f January, Anno Domini
eighteen hundred and sixty-three, organized in any state,
either under a special act o f incorporation or a general
banking law, m ay, at any time w ith in ------- years after the
passage o f this act become an association under the pro­
visions o f this act; that in such case the certificate o f
association provided for by this act shall be signed by
the directors o f such banking association or corporation,
and in addition to the specifications required by this act,
shall specify that such directors are authorized by the
owners o f two-thirds o f the capital stock o f such bank­
ing association or corporation, to make such certificate
o f association, and such certificate o f association shall
thereafter have the same effect, and the same proceedings
shall be had thereon, as is provided for as to other asso­
ciations organized under this act.

A n d such association

or corporation thereafter shall have the same powers and
privileges, and shall be subject to the same duties, re­
sponsibilities, and rules, in all respects, as is (are) pre­
scribed in this act for other associations organized under
it, and shall be held and regarded as an association under
this act.
S ec . 62. And be it further enacted, That any bank or
banking association, authorized by any State law to en­
gage in the business*)f banking, and duly organized under
such State law at the time o f the passage o f this act, and
which shall be the holder and owner o f United States

LAW S

C O N C E R N IN G

329

B A N K IN G .

bonds to the amount o f fifty per centum o f its capital
stock, may transfer and deliver to the Treasurer of the
United States such bonds, or any part thereof, in the
manner provided by this act; and upon making such
transfer and delivery, such bank or banking association
shall be entitled to receive from the comptroller o f the
currency, circulating notes, as herein provided, equal in
amount to eighty per centum o f the amount o f the bonds
so transferred and delivered.
S e c . 63. And be it further enacted, That upon the fa il­
ure o f any such State bank or banking association, to

redeem any o f its circulating notes issued under the pro­
visions o f the preceding section, the comptroller o f the
currency shall, when satisfied that such default has been
made, and within thirty days after notice o f such default,
proceed to declare the bonds transferred and delivered to
the treasurer, forfeited to the United States, and the same
shall thereupon be forfeited accordingly. A nd thereupon
the circulating notes which have been issued by such bank
°r banking association shall be redeemed and paid at the
Treasury o f the United States, in the same manner as
other circulating notes issued under the provisions o f this
act are redeemed and paid.
S e c . 64. And be it further enacted, That the bonds fo r­

feited, as provided in the last preceding section, may be
cancelled to an amount equal to the circulating notes re­
deemed and paid, or such bonds may be sold, under the
direction o f the Secretary of the Treasury, and after re­
taining out o f the proceeds a sum sufficient to pay the
^ hole amount o f circulating notes, for the redemption of
'which such bonds are held, the surplus, if any remains,
shall be paid to the bank, or banking association from
■which such bonds were received.
S e c . 65. And be it further enacted, T hat Congress re­

serves the right, at any time, to amend, alter, or repeal
this act.

Approved, February

25, 1863.

A C T O F M A R C H 3, 1863.
^ h a p . L X X I I I . — A n act to 'provide ways and means for

the support of the Government.
*

*

*

*

(Section 7, after providing for taxes to be laid upon
t it

circulation




o f all banks and corporations, whether es-

tablished under state laws or under the act o f February
25, 1863, directs that all banks, corporations, or indi­
viduals issuing notes for any fractional part o f a dollar
after A p ril 1, 1863, shall be taxed ten per cent per annum
upon the amount o f such fractional notes.)
^
^
4
:

$

Approved, March 3, 1863.
A C T O F J U N E 3, 1864.
13 stat. l ., C h a p . C V I .— A n act to provide a national currency, se­

99.

cured by a pledge of United States bonds, and to pro­
vide for the circulation and redemption thereof.

C u rren cy B u ­
re a u esta b ­
lished.

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, T hat there shall be established in the Treasury
Department a separate Bureau, which shall be charged
with the execution o f this and all other laws that may
be passed by Congress respecting the issue and regulation
o f a national currency secured by United States bonds.
The chief officer o f the said Bureau shall be denominated

C o m p tro l l e r
o f th e C u r­
ren cy.
A p p oin tm en t.

the Comptroller o f the Currency, and shall be under the
general direction o f the Secretary of the Treasury.

He

shall be appointed by the President, on the recommenda­
tion o f the Secretary o f the Treasury, by and with the
advice and consent o f the Senate, and shall hold his office

T erm o f office.

for the term o f five years unless sooner removed by the

S alary.

Senate; he shall receive an annual salary o f five thousand

President, upon reasons to be communicated by him to the
D ep u ty com p ­
troller.

dollars; he shall have a competent deputy, appointed by
the Secretary, whose salary shall be two thousand five
hundred dollars, and who shall possess the power and
perform the duties attached by law to the office o f Comp­
troller during a vacancy in such office and during his
absence or inability; he shall employ, from time to time,
the necessary clerks to discharge such duties as he shall

C lerks.

direct, which clerks shall be appointed and classified by
the Secretary o f the Treasury in the manner now pro­

C o m p t r o lle r
to ta k e o a th
w ith in w h a t
tim e.

vided by law.

W ith in fifteen days from the time o f

notice o f his appointment the Comptroller shall take and
subscribe the oath o f office prescribed by the Constitution
and laws o f the United States; and he shall give to the

B ond.




United States a bond in the penalty o f one hundred thou­
sand dollars, with not less than two responsible sureties,

LAW S

C O N C E R N IN G

331

B A N K IN G .

to be approved by the Secretary o f the Treasury, condi­
tioned for the faithful discharge o f the duties of his
office.

The deputy comptroller so appointed shall also

take the oath o f office prescribed by the Constitution and

Oath

and

laws or the United States, and shall give a like bond in comptroller,
the penalty o f fifty thousand dollars.
.

.

.

Tn

.

The Comptroll er
.

. . .

Not to be interested in any

and deputy-comptroller shall not, either directly or m d i- bankingassorectly, be interested in any association issuing national
currency under the provisions o f this act.
S ec . 2 . A nd be it further enacted. That the Comp-

Seal of cur-

troller o f the Currency, with the approval o f the Secre­
tary o f the Treasury, shall devise a seal, with suitable
inscriptions, for his office, a description o f which, with
a certificate of approval by the Secretary o f the Treasury, and where to be
shall be filed in the office of the Secretary of State with
an impression thereof, which shall thereupon become the
seal o f office o f the Comptroller o f the Currency, and the
same may be renewed when necessary.

Every certificate, peC|rtu dre­
a^n

assignment, and conveyance executed by the Comptroller, ^fdence!t0 be
m pursuance o f any authority conferred on him by law,
and sealed with his seal o f office, shall be received in
evidence in all places and courts whatsoever; and all
copies of papers in the office o f the Comptroller, certified
by him and authenticated by the said seal, shall in all
cases be evidence equally and in like manner as the origii

nai.

.

.

°

impression
may be upon

A n impression o f such seal directly on the paper paper.

shall be as valid as if made on wax or wafer.
S ec . 3 . And be it further enacted, T hat there shall b e „ Rooms for
•
\
*
Currency B ~
u
assigned to the Comptroller o f the Currency by the Secre- reau.

tary o f the Treasury suitable rooms in the Treasury build­
ing for conducting the business of the Currency Bureau,
m which shall be safe and secure fire-proof vaults, in

F ir e -p r o o f

which it shall be the duty o f the Comptroller to depositV Its’
JU
and safely keep all the plates not necessarily in the pos­
session 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, sta-

F u r n itu r e ,

tionery, fuel, lights, and other proper conveniences f o r etL'
tlw transaction o f the said business.
u ®EC- 4. And

be it further enacted, That the term Term “United

United States bonds,” as used in this act, shall be c o n -fo ltinc?u<
de
strued to mean all registered bonds now issued, or t h a t " Revised statmay hereafter be issued, on the faith o f the United States ute^
'

} the Secretary of the Treasury in pursuance of law.




332

N A T IO N A L

B a n k in g a s ­
s o cia tio n s , h ow
m ay be form ed .

M ONETARY

C O M M IS S IO N .

S ec . 5. And be it farther enacted, That associations for
carrying on the business o f banking may be formed by
any number of persons, not less in any case than five,
who 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 the provisions o f this act, which the
association may see fit to adopt for the regulation of the
business o f the association and the conduct o f its affairs,
which said articles shall be signed by the persons uniting
to form the association, and a copy o f them forwarded
to the Comptroller o f the Currency, to be filed and pre­

O rg a n iz a tion
c e r tific a te t o
s p e c ify

served in his office.
S ec. 6. And be it further enacted, T hat the persons
uniting to form such an association shall, under their
hands, make

an organization

certificate, which

shall

specify—
First. The name assumed by such association, which

nam e,

name shall be subject to the approval o f the Comptroller.
p la ce
ness,

of

b u si­

Second. The place where its operations o f discount and
deposit are to be carried on, designating the State, Ter­
ritory, or District, and also the particular county and
city, town, or village.

ca p ita l
shares,

and

nam es, e tc., o f
sh a reh old ers,

Third. The amount o f its capital stock, and the number
of shares into which the same shall be divided.
Fourth. The names and places o f residence o f the
shareholders, and the number o f shares held by each of
them.

p u rp ose o f ce r­
tificate.

F ifth . A declaration that said certificate is made to en­
able such persons to avail themselves o f the advantages
o f this act.

C ertifica te to
be a c k n o w l ­
edged.

The said certificate shall be acknowledged before a
judge o f some court o f record or a notary public, and such
certificate, with the acknowledgment thereof authenti­
cated by the seal o f such court or notary, shall be trans­
mitted to the Comptroller o f the Currency, who shall re­
cord and carefully preserve the same in his office.

C op ies un der
seal to be e v i­
dence.




Copies

o f such certificate, duly certified by the Comptroller, and
authenticated by his seal o f office, shall be legal and suffi­
cient evidence in all courts and places within the United
States, or the jurisdiction o f the Government thereof, of
the existence o f such association, and of every other mat­
ter or thing which could be proved by the production o f
the original certificate.

LAWS

C O N C E R N IN G

333

B A N K IN G .

S ec. 7. And be it further enacted, That no association
shall be organized under this act, with a less capital than

less than’

one hundred thousand dollars, nor in a city whose popu­
lation exceeds fifty thousand persons, with a less capital
than two hundred thousand dollars: Provided , T hat

Proviso,

banks with a capital o f not less than fifty thousand dol­
lars may, with the approval o f the Secretary o f the Treas­
ury, be organized in any place the population o f which
does not exceed six thousand inhabitants.
S e c . 8. And be it further enacted, T hat every associa,•

„

'

. .

*

Associations,
when to be cor­

don tormecl pursuant to the provisions ot this act shall, portions and
_
p

.

r

. ■*■«.

.

when to com-

irorn the date of the execution ot its organization cer- m
encebusiness.

tificate, be a body corporate, but shall transact no business
except such as may be incidental to its organization and
necessarily preliminary, until authorized by the Comp­
troller o f the Currency to commence the business o f
banking.

Such association shall have power to adopt a

seal,

corporate seal, and shall have succession by the name
designated in its organization certificate, for the period
° f twenty years from its organization, unless sooner dis- tv^ntyCyea” s®
solved according to the provisions of its articles o f asso- unless, etc.
elation, or by the act of its shareholders owning two
thirds o f its stock, or unless the franchise shall be for­
feited by a violation o f this a c t; by such name it may p0®,er n e r a 1
es
make contracts, sue and be sued, complain and defend, in
any court o f law and equity as fully as natural persons;
it may elect or appoint directors, and by its board of di- 02 cerstors and
rectors appoint a president, vice-president, cashier, and
°ther officers, define their duties, require bonds of them
and fix the penalty thereof, dismiss said officers or any
° f them at pleasure, and appoint others to fill their places,
and exercise under this act all such incidental powers as
i'hall be necessary to carry on the business of banking by
discounting and negotiating promissory notes, drafts,
bills o f exchange, and other evidences of d ebt; by receiv­
ing deposits; by buying and selling exchange, coin, and
bullion; by loaning money on personal security; by ob­
taining, issuing, and circulating notes according to the
provisions o f this act; and its board o f directors shall
also have power to define and regulate by by-laws, not
inconsistent with the provisions of this act, the manner
in which its stock shall be transferred, its directors elected
oi appointed, its officers appointed, its property transerred, its general business conducted, and all the privileges granted by this act to associations organized under




T

By-laws,

334

N A T IO N A L

R evised S ta t
utes, 5190.

M ONETARY

C O M M IS S IO N .

it shall be exercised and enjoyed; and its usual business
shall be transacted at an office or banking house located
in the place specified in its organization certificate.

D ir e c to r s ;
q u a lific a t io n s ;
one to be p resi­
dent.

S e c . 9. And be it further enacted, That the affairs of

every association shall be managed by not less than five
directors, one o f whom shall be the president.

Every di­

rector shall, during his whole term o f service, be a citi­
zen of the United States; and at least three fourths o f the
directors shall have resided in the State, Territory, or
District in which such association is located one year next
preceding their election as directors, and be residents of
the same during their continuance in office.

Each director

shall own, in his own right, at least ten shares o f the capi­
tal stock o f the association o f which he is a director.
Each director, when appointed or elected, shall take an
oath that he will, so far as the duty devolves on him,

Oath.

diligently and honestly administer the affairs o f such as­
sociation, and will not knowingly violate, or willingly
permit to be violated, any o f the provisions o f this act,
and that he is the bona fide owner, in his own right, of the
number o f shares o f stock required by this act, subscribed
by him, or standing in his name on the books o f the as­
sociation, and that the same is not hypothecated, or in
any way pledged, as security for any loan or d ebt; which
oath, subscribed by himself, and certified by the officer be­
fore whom it is taken, shall be immediately transmitted
to the Comptroller o f the Currency, and by him filed and
preserved in his office.
T erm
fice o f
tors.

of o f­
d ire c­

E lection s.

S e c . 10. And be it further enacted, That the directors

o f any association first elected or appointed shall hold
their places until their successors shall be elected and
qualified. A ll subsequent elections shall be held annu­
ally on such day in the month o f January as may be speci­
fied in the articles o f association; and the directors so
elected shall hold their places for one year, and until
their successors are elected and qualified. But any d i­
rector ceasing to be the owner o f the requisite amount of
stock, or having in any other manner become disqualified,

V a ca n cie s
h ow filled.




. shall thereby vacate his place.

A n y vacancy in the board

shall be filled by appointment by the remaining directors,
and any director so appointed shall hold his place until
the next election. I f from any cause an election o f d i­
rectors shall not be made at the time appointed, the as­
sociation shall not for that cause be dissolved, but an elec­
tion may be held on any subsequent day, thirty days’

LAWS

C O N C E R N IN G

335

B A N K IN G .

notice thereof in all cases having been given in a news­
paper 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 pub­
lished in a newspaper published nearest thereto. I f the
articles o f association do not fix the day on which the
election shall be held, or i f the election should not be held
on the day fixed, the day for the election shall be desig­
nated by the board o f directors in their by-laws, or other­
wise : Provided , T hat if the directors fail to fix the day,
as aforesaid, shareholders representing two thirds o f the
shares may.
S ec . 11. And be it further enacted, That in all elec- voting and
f
n
.
proxies.
nons o f directors, and in deciding all questions at meet­
ings o f shareholders, each shareholder shall be entitled
to one vote on each share o f stock held by him.

Share­

holders may vote by proxies duly authorized in w riting;
hut no officer,’ clerk, teller, or book-keeper o f such associa­
tion shall act as p r o x y ; and no shareholder whose liability
is past due and unpaid shall be allowed to vote.

S . 12.

',

toc®
ePd?yid°ed

ec
And be it further enacted That the capital
stock o f any association formed under this act shall be int0 shares,
divided into shares o f one hundred dollars each, and be
deemed personal property and transferable on the books
° f the association in such manner as may be prescribed
in the by-laws or articles o f association; and every per-

Transfer,

son becoming a shareholder by such transfer shall, in pro­
portion to his shares, succeed to all the rights and lia- is«nfh
creduprs
bilities o f the prior holder of such shares, and no change paired! be ’m
shall be made in the articles o f association by which the
n ghts, remedies, or security o f the existing creditors of
the association shall be impaired.

The shareholders o f „ I“ ?*yldual

LdU1 association formed under the provisions o f this act,
and of each existing bank or banking association that may
accept the provisions o f this act, shall be held individu­
ally responsible, equally and ratably, and not one for an­
other, for all contracts, debts, and engagements of 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 such shares; except that shareholders o f any
Linking association now existing under State laws, hav­
ing not less than five millions o f dollars o f capital actutl y paid in, and a surplus o f twenty per centum on hand,
b°th to be determined by the Comptroller of the Curiency, shall be liable only to the amount invested in their




336

N A T IO N A L

M ONETARY

C O M M IS S IO N .

shares; and such surplus o f twenty per centum shall be
kept undiminished, and be in addition to the surplus pro­
vided for in this a c t; and if at any time there shall be a
deficiency in said surplus o f twenty per centum, the said
banking association shall not pay any dividends to its
shareholders until such deficiency shall be made good;
and in case o f such deficiency, the Comptroller o f the
Currencjr may compel said banking association to close
its business and wind up its affairs under the provisions
W hen com p tr o lle r
m ay
w ith h o ld c e r ­
tificate.

o f this act.

A n d the Comptroller shall have authority

to withhold from an association his certificate authorizing
the commencement o f business, whenever he shall have
reason to suppose that the shareholders thereof have
formed the same for any other than the legitimate objects

In crea se of
ca p ita l stock.

contemplated by this act.
S e c . 13. And be it further enacted, That it shall be
lawful for any association formed under this act, by its
articles o f association, to provide for an increase o f its
capital from time to time, as may be deemed expedient,

M axim um .

subject to the limitations o f this a c t: Provided , That the
maximum o f such increase in the articles of association
shall be determined by the Comptroller o f the Currency;
and no increase of capital shall be valid until the whole
amount o f such increase shall be paid in, and notice
thereof shall have been transmitted to the Comptroller of
the Currency, and his certificate obtained specifying the
amount o f such increase of capital stock, with his ap­
proval thereof, and that it has been duly paid in as part
o f the capital o f such association.

A nd every associa­

tion shall have power, by the vote of shareholders own­
ing two thirds of its capital stock, to reduce the capital
of such association to any sum not below the amount
required by this act, in the formation o f associations:
M inim um .

Provided , T hat by no such reduction shall its capital be
brought below the amount required by this act for its out­
standing circulation, nor shall any such reduction be
made until the amount o f the proposed reduction has
been reported to the Comptroller o f the Currency and his
approval thereof obtained.

A m ou n t to he
paid in b efore
c o m m e n c in g
business.
R em ainder,
when
to be
paid.




S e c . 14.

And be it further enacted, T hat at least fifty

per centum o f the capital stock o f every association shall
be paid in before it shall be authorized to commence
business; and the remainder of the capital stock o f such
association shall be paid in instalments o f at least ten
per centum each on the whole amount of the capital as

LAWS

C O N C E R N IN G

33 7

B A N K IN G .

frequently as one instalment at the end of each succeed­
ing month from the time it shall be authorized by the
Comptroller to commence business; and the payment of
each instalment shall be certified to the Comptroller,
under oath, by the president or cashier of the association.
S e c . 15.

And be it f urther enacted, That if any share- .f ^^ehoufer

holder, or his assignee, shall fail to pay any instalment on ^ ”nm tsy in
enP
the stock when the same is required by the foregoing sec­
tion to be paid, the directors o f such association may sell
the stock o f such delinquent shareholder at public auc-,. s to c k o f detion, having given three weeks’ previous notice thereof ^

ers t0 b
e

in a newspaper published and o f general circulation in
the city or county where the association is located, and 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, and not less than the
amount then due thereon, with the expenses o f advertise­
ment 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 of advertisement and sale, the
amount previously paid shall be forfeited to the associa­
tion, 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 cancelled and deducted from
the capital stock o f the association; and if such cancella­
tion and reduction shall reduce the capital o f the asso­
ciation below the minimum o f capital required by this
act, the capital stock shall, within thirty days from the
date o f such cancellation, be increased to the require­
ments o f the act; in default o f which a receiver may be
appointed to close up the business o f the association ac­
cording to the provisions o f the fiftieth section of this act.
S e c . 16. And be it further enacted, That every association, after having complied with the provisions o f t h i s
„ i.
acc,

t

•

b

1

1

preliminary to the commencement o f banking

u n ite d ^ sta te s

bonds to be dep o s it e d w ith
b u si- T r e a s u r e r to

ness under its provisions, and before it shall be authorized

equai^ to^ one-

to commence business, shall transfer and deliver to the cap ital

Treasurer of

the United States any United States regis-

tered bonds bearing interest to an amount not less than
thirty thousand dollars nor less than one third of the
capital stock paid in, which bonds shall be deposited with
the Treasurer o f the United States and by him safely
kept in his office until the same shall be otherwise dis-




stock.

u te s ? 5 i5 9 .S ta t

338

N A T IO N A L

M ONETARY

C O M M IS S IO N .

posed of, in pursuance o f the provisions o f this act; and
the Secretary of the Treasury is hereby authorized to re­
ceive and cancel any United States coupon bonds, and to
issue in lieu thereof registered bonds of like amount,
bearing a like rate of interest, and having the same time
Deposit to be to ru n ; and the deposit of bonds shall be, by every association, increased as its capital may be paid up or in­
creased, so that every association shall at all times have
on deposit with the Treasurer registered United States
bonds to the amount o f at least one third o f its capital
isbedbe dim stock actually paid in : Provided , That nothing in this
in"
section shall prevent an association that may desire to
reduce its capital or to close up its business and dissolve
its organization from taking up its bonds upon returning
to the Comptroller its circulating notes in the proportion
hereinafter named in this act, nor from taking up any
excess o f bonds beyond one third of its capital stock and
upon which no circulating notes have been delivered.
Comptroller

S e c . IT.

And be it further enacted, T hat whenever a

determine ifcertificate shall have been transmitted to the Comptroller
a ss o cia tio n ca n
com m en ce busi-of

ness.

A

the Currency, as provided in this act, and the associa.
. . .
,
. 1
tion transmitting the same shall notify the Comptroller
that at least fifty per centum o f its capital stock has been
paid in as aforesaid, and that such association has com­
plied with all the provisions of this act as required to be
complied with before such association shall be authorized
to commence the business of banking, the Comptroller
shall examine into the condition o f such association, as­
certain especially the amount of money paid in on account
o f its capital, the name and place of residence o f each o f
the directors o f such association, and the amount o f the
capital stock of which each is the bona fide owner, and

generally whether such association has complied with all
the requirements o f this act to entitle it to engage in the
business o f banking; and shall cause to be made and
attested by the oaths of a majority o f the directors and
by the president or cashier o f such association, a state­
ment o f all the facts necessary to enable the Comptroller
to determine whether such association is law fully entitled
to commence the business o f banking under this act.
ciaU n“sfound S ec- 18’ And
oh
f urther enacted, That if, upon a
mencebusiness’ care^ul examination o f the facts so reported, and o f any
Com
ptroller to other facts which mav come to the knowledge of the




Comptroller, whether by means of a special commission
appointed by him for the purpose o f inquiring into the

LAWS

C O N C E R N IN G

33 9

B A N K IN G .

condition o f such association, or otherwise, it shall appear
that such association is law fully 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
of this act required to be complied with before being en­
titled to commence the business o f banking under it, and
that such association is authorized to commence said
business accord in g ^ ; and it shall be the duty o f the asso­
ciation to cause said certificate to be published in som ewC ertifica te. to
u
newspaper published in the city or county where the
association is located for at least sixty days next after the
issuing thereof: Provided , That if no newspaper is pub­
lished in such city or county the certificate shall be pub­
lished in a newspaper published nearest thereto.
S e c . 19. And be it further enacted, That all transfers ^Transfers^of
of United States bonds which shall be made by any asso- mldentotot he
ciation under the provisions o f this act shall be made to treasurer i u
the Treasurer o f the United States in trust for the asso­
ciation, with a memorandum written or printed on each
bond, and signed bv the cashier or some other officer o f

w e xe R evised

stat-

the association making the deposit, a receipt therefor to
be given to said association, or by the Comptroller of the
Currency, or by a clerk appointed by him for that pur­
pose, stating that it is held in trust for the association on
whose behalf such transfer is made, and as security for
the redemption and payment of any circulating notes that
have been or may be delivered to such association.

No

assignment or transfer o f any such bonds by the Treas­
urer shall be deemed valid or o f binding force and effect
unless countersigned by the Comptroller of the Currency.
It shall be the duty o f the Comptroller o f the Currency
to keep in his office a book in which shall be entered the

Comptroller
fe r book. etc.

name o f every association from whose accounts such
transfer o f bonds is made by the Treasurer, and the name
° f the party to whom such transfer is m ade; and the
Par value o f the bonds so transferred shall be entered
therein; and it shall be the duty o f the Comptroller, im­
mediately upon countersigning and entering the same, to
advise by mail the association from whose account such
transfer was made of the kind and numerical designa­
tion o f the bonds and the amount thereof so transferred.
S

ec

.

20. And be it further en a cted That it shall be the.

T ra n s fe rs

to

• or the Comptroller of the Currency to c o u n te rsig n *^ ^ and en
_
and enter in the book, in the manner aforesaid, every




340

N A T IO N A L

M ONETARY

C O M M IS S IO N .

transfer or assignment of any bonds held by the Treasurer
B ook s to be
accessib le.

presented for his signature;

and the Comptroller shall

have at all times during office hours access to the books of
the Treasurer, for the purpose o f ascertaining the correct­
ness o f the transfer or assignment presented to him to
countersign; and the Treasurer shall have the like access
to the book above mentioned, kept by the Comptroller,
during office hours, to ascertain the correctness o f the
entries in the same; and the Comptroller shall also at all
times have access to the bonds on deposit with the Treas­
urer, to ascertain their amount and condition.
A ss ocia tion s ,
a fte r tra n sfer,
m ay receiv e c ir ­
c u la tin g notes.
See a ct o f
M ar. 3, 1865.

S e c . 21,

And be it further enacted, That upon the

transfer and delivery o f bonds to the Treasurer, as pro­
vided in the foregoing section, the association making
the same shall be entitled to receive from the Comptroller
o f the Currency circulating notes o f different denomina­
tions, in blank, registered and countersigned as herein­
after provided, equal in amount to ninety per centum of
the current market value o f the United States bonds so
transferred and delivered, but not exceeding ninety per
centum o f the amount o f said bonds at the par value

Li mi t
am ou nt.

of thereof, i f bearing interest at a rate not less than five per

centum per annum ; and at no time shall the total amount
of such notes, issued to any such association, exceed the
amount at such time actually paid in o f its capital stock.
E n tire cir c u ­
la tion n ot t o
exceed
$300,-

S e c . 22. And be it further enacted, T hat the entire
amount o f notes for circulation to be issued under this act

C o m p tro ll e r
to p rep a re tbe
notes.
R evised S ta t­
utes,
5 17 2,
5175.

order to furnish suitable notes for circulation, the Com p­

000, 000.

shall not exceed three hundred millions of dollars.

In

troller o f the Currency is hereby authorized and required,
under the direction o f the Secretary o f the Treasury, to
cause plates and dies to be engraved, in the best manner to
guard against counterfeiting and fraudulent alterations,
and to have printed therefrom, and numbered, such quan­

Denom i n a
tion s.

tity o f circulating notes, in blank, o f the denominations
o f one dollar, two dollars, three dollars, five dollars, ten
dollars, twenty dollars, fifty dollars, one hundred dollars,
five hundred dollars, and one thousand dollars, as may be
required to supply, under this act, the associations enti­

N otes to e x ­
press w h at.




tled to receive the same; which 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
Register, and bv the imprint o f the seal o f the T reasu ry;
and shall also express upon their face the promise of the

LAWS

C O N C E R N IN G

341

B A N K IN G .

association receiving the same to pay on demand, attested
by the signatures o f the president or vice-president and
cashier.

Devices-

A n d the said notes 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: ^..Notes under

Provided , T hat not more than one sixth part of the notes
furnished to an association shall be o f a less denomination
than five dollars, and that after specie payments shall be
resumed no association shall be furnished with notes of
a less denomination than five dollars.

And be it further enacted, That after any such

S e c . 23 .

association shall have caused its promise to pay such notes1 a t e d a s
on demand to be signed by the president or vice-president ut1s J1 stat'
{e^i 5
ed>
and cashier thereof, in such manner as to make them R evised statobligatory promissory notes, payable on demand, at it s 3475place of business, such association is hereby authorized to
issue and circulate the same as m oney: and the same shall
i

•

i

•

,,

.

TT

,

.

oe received at par in all parts o f the United States in

to be received
f o r a ll dues,
excep t, etc.

payment o f taxes, excises, public lands, and all other dues
to the United States, except for duties on im ports; and
also for all salaries and other debts and demands owing
by the United States to individuals, corporations, and
associations within the United States, except interest on
the public debt, and in redemption o f the national cur­
rency.

A n d no such association shall issue post notes or

p ° s t ° 0t®
8’

any other notes to circulate as money than such as are iss^|dised stat
authorized by the foregoing provisions o f this act.
utes>5183S ec. 24.

And be it further enacted, T hat it shall be the worn-out and

Quty of the Comptroller of the Currency to receive worn0llt or mutilated circulating notes issued by any

banking association, and also, on due proof o f the destruction o f any such circulating notes, to deliver in place
thereof to such association other blank circulating notes
to an equal amount.

A n d such worn-out or mutilated

notes, after a memorandum shall have been entered in the
proper books, in accordance with such regulations as may
be established by the Comptroller, as well as all circulatlng notes which shall have been paid or surrendered to be
cancelled, shall be burned to ashes in presence o f four per­
sons, one to be appointed by the Secretary o f the Treas­
ury, one by the Comptroller of the Currency, one by the
I reasurer o f the United States, and one by the association,
under such regulations as the Secretary o f the Treasury
may prescribe.

A n d a certificate o f such burning, signed

by the parties so appointed, shall be made in the books of




notes.

such Juney2j^i874.
utes, 5184.

342

N A T IO N A L

M ONETARY

C O M M IS S IO N .

the Comptroller, and a duplicate thereof forwarded to
the association whose notes are thus cancelled.
to AeS m fn e°a n S
xa

S

ec

.

25. A nd be it further enacted, That it shall be the

bonds1deposit- duty ° f every banking association having bonds deposited
c e r tific a te m
ake
the office ° f the Treasurer o f the United States, once or
utese 5ie
V 66Stat °ftener in each fiscal year, and at such time or times dur­
ing the ordinary business hours as said officer or officers

of associations1may select, to examine and compare the bonds so pledged
with the books o f the Comptroller and the accounts o f the
association, and, i f found correct, to execute to the said
Treasurer a certificate setting forth the different kinds
and the amounts thereof, and that the same are in the pos­
session and custody o f the Treasurer at the date o f such
certificate. Such examination may be made by an officer
or agent o f such association, duly appointed in writing for
that purpose, -whose certificate before mentioned shall be
o f like force and validity as i f executed by such president
or cashier; and a duplicate signed by the Treasurer shall
be retained by the association.
D o s i t e a S ec . 26. And be it further enacted, T hat the bonds
ep
bonds t o b e
.
.
held exclusive- transferred to and deposited with the Treasurer of the
ly to secure
.
*
.
ciR
evfst
edIstat United States, as hereinbefore provided, by any banking
utes, 5167.
association for the security o f its circulating notes, shall
be held exclusively for that purpose, until such notes shall
to interest0 as be redeemed, except as provided in this act; but the
Comptroller o f the Currency shall give to any such bank­
ing association powers o f attorney to receive and appro­
priate to its own use the interest on the bonds which it
shall have so transferred to the Treasurer; but such
powers shall become inoperative whenever such banking
association shall fail to redeem its circulating notes as
aforesaid.
Preciab
tendl e c u - b °n(is

Whenever the market or cash value of any

deposited with the Treasurer o f the United States,

made good bGas aforesaid, shall be reduced below the amount o f the

circulation issued for the same, the Comptroller o f the
Currency is hereby authorized to demand and receive the
amount o f such depreciation in other United States bonds
at cash value, or in money, from the association receiving
said bills, to be deposited .with the Treasurer of the
United States as long as such depreciation continues,
be
B°exchangld^ ^ nd said Comptroller, upoli the terms prescribed by the
if, etc.
Secretary o f the Treasury, may permit an exchange to be




made o f any o f the bonds deposited with the Treasurer
by an association for other bonds o f the United States
authorized by this act to be received as security for circu-

LAWS

C O N C E R N IN G

343

B A N K IN G .

lating notes, if he shall be o f opinion that such an ex­
change can be made without prejudice to the United
States, and he may direct the return o f any o f said bonds tu
r^

y „ ® oe
n

to the banking association which transferred the same, incY^c'JnaTing
sums of not less than one thousand dollars, upon the s u r -notesrender to him and the cancellation o f a proportionate
amount of such circulating notes: Provided , T hat the

Proviso-

remaining bonds which shall have been transferred by
the banking association offering to surrender circulating
notes shall be equal to the amount required for the circu­
lating notes not surrendered by such banking association,
and that the amount o f bonds in the hands o f the Treas­
urer shall not be diminished below the amount required
to be kept on deposit with him by this act: And provided ,
That there shall have been no failure by such association
to redeem its circulating notes, and no other violation by
such association o f the provisions o f this act, and that the
market or cash value o f the remaining bonds shall not be
below the amount required for the circulation issued for
the same.

S ec.

27 .

And be it further enacted, That it shall b e cop®°^Tg^i
^

unlawful for any officer acting under the provisions

£ ir<fuVa ung

this act to countersign or deliver to any association, or p^mittedeptb y
a
to any other company or person, any circulating notes th|
fev® ^ statcontemplated by this act, except as hereinbefore provided, utes>u187and in accordance with the true intent and meaning o f
this act.

A nd any officer who shall violate the provisions

° f this section shall be deemed guilty o f a high misde­
meanor, and on conviction thereof shall be punished by
hue not exceeding double the amount so countersigned
and delivered, and imprisonment not less than one year
and not exceeding fifteen years, at the discretion o f the
court in which he shall be tried.
S e c . 28 . And be it further enacted', That it shall be m
aySh
oidatetcS
lawful for any such association to purchase, hold, and^tain reai

convey real estate as follow s:
h irst. Such as shall be necessary for 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.
15712°— 10------24




344

N A T IO N A L

M ONETARY

C O M M IS S IO N .

Fourth. Such as it shall purchase at sales under jud g­
ments, decrees, or mortgages held by such association, or
shall purchase to secure debts due to said association.
R eal estate.

Such associations shall not purchase or hold real estate
in any other case or for any other purpose than as speci­
fied in this section. Nor shall it hold the possession o f
any real estate under mortgage, or hold the title and pos­
session o f any real estate purchased to secure any debts
due to it for a longer period than five years.

N o p erson,
etc.,
to t e
liab le to assoelation
f or
more than,
etc.

S ec . 29. A nd be it further enacted, That the total lia­
bilities to any association, o f any person, or o f any com­
pany, corporation, or firm for money borrowed, including
in the liabilities o f a company or firm the liabilities of the
several members thereof, shall at no time exceed one tenth

C ertain d is ­
co u n ts n o t to
be Included.

part o f the amount o f the capital stock o f such associa­
tion actually paid in : Provided , That the discount of
bona fide bills o f exchange drawn against actually exist­
ing values, and the discount o f commercial or business
paper actually owned by the person or persons, corpora­
tion, or firm negotiating the same shall not be considered
as money borrowed.

R a te
terest.

of

In­

S ec. 30. And be it further enacted, That every associa­
tion may take, receive, reserve, and charge on any loan
or discount made, or upon any note, bill o f exchange, or
other evidences o f debt, interest at the rate allowed by the
laws o f the State or Territory where the bank is located,
and no more, except that where by the laws o f any State
a different rate is limited for banks o f issue organized
under State laws, the rate so limited shall be allowed for
associations organized in any such State under this act.
A n d when no rate is fixed by the laws o f the State or
Territory, 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

P en a lty fo r
tak in g greater
in terest.




the note, bill, or other evidence o f debt has to run.

A nd

the knowingly taking, receiving, reserving, or charging
a rate o f interest greater than aforesaid shall be held and
adjudged 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.

A nd in case a

greater rate o f interest has been paid, the person or per­
sons paying the same, or their legal representatives may
recover back, in any action o f debt, twice the amount o f
the interest thus paid from the association taking or re-

LAWS

C O N C E R N IN G

345

B A N K IN G .

ceiving the sam e: Provided , That such action is com- C m enced° i n
Om
b
menced within two years from the time the usurious tw0 yearstransaction occurred. But 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 interest, shall not be considered as taking
or receiving a greater rate o f interest.
S ec . 31. And be it f urther enacted, That every associaAmount £*
tion in the cities hereinafter named shall, at all times, kept o ^ a n .^
nh^ d
have on hand, in law ful money o f the United States, a n u t e s . 5191,
amount equal to at least twenty-five per centum of the

see act of

aggregate amount o f its notes m circulation and its de- sec. 2.
posits; and every other association shall, at all times, have
on hand, in lawful money o f the United States, an amount
equal to at least fifteen per centum o f the aggregate
amount o f its notes in circulation, and o f its deposits.
And whenever the lawful money of any association in any
° f the cities hereinafter named shall be below the amount
° f twenty-five per centum o f its circulation and deposits,
and whenever the law ful money o f any other association

L ia b il i l i e s
n o t to be in-

shall be below fifteen per centum o f its circulation and de-

“ tj*

posits, such associations shall not increase its liabilities good,
by making any new loans or discounts otherwise than by
discounting or purchasing bills o f exchange payable at
S1ght, nor make any dividend o f its profits until the re­
quired proportion between the aggregate amount o f its
outstanding notes o f circulation and deposits and its law­
ful money of the' United States shall be restored: Pro-

Money de-

'cided, That three fifths o f said fifteen per centum may

uiat°on
consist of balances due to an association available for the rertah^cities to
redemption o f its circulating notes from associations ap­
proved by the Comptroller of the Currency, organized
under this act, in the cities o f Saint Louis, Louisville,
Chicago, Detroit, Milwaukee, New Orleans, Cincinnati,
Cleveland, Pittsburg, Baltimore, Philadelphia, Boston,
rW
Albany, Leavenworth, San Francisco, and
Washington C ity : Provided, also, That clearing-house
t

cl earing-

certificates, representing specie or law ful money specially caTes uT'be
d eposited for the purpose o f any clearing-house associa- money1for'this
Lon, shall be deemed to be law ful money in the posses- purposesion ° f any association belonging to such clearing-house

0
ere

lng and owning such certificate, and shall be considto be a part o f the lawful money which such associ-

a ion is required to have under the foregoing provisions




T

346
C h a r le s to n
an d R ichm ond.

N A T IO N A L

m o n e t a r y

c o m m is s io n

.

of this section: Provided , That the cities of Charleston
and Richmond may be added to the list o f cities in the
national associations o f which other associations may
keep three fifths o f their lawful money, whenever, in
the opinion o f the Comptroller of the Currency, the con­
dition o f the Southern States will warrant it. A n d it
shall be competent for the Comptroller o f the Currency
to notify any association, whose lawful money reserve as
aforesaid shall be below the amount to be kept on hand as

I f a ss o cia tio n
fails,
a fte r
n otice, to m ake
g o o d its re­
serve.

aforesaid, to make good such reserve; and i f such associ­
ation shall fail for thirty days thereafter so to make
good its reserve o f law ful money o f the United States, the
Comptroller m ay, with the concurrence o f the Secretary
o f the Treasury, appoint a receiver to wind up the busi­
ness o f such association, as provided in this act.

C ircu la tion to
he redeem ed In
N ew Y ork a t
par.
R evised S ta t­
utes, 5195.

S ec . 32. And be it further enacted, That each associa­
tion organized in any o f the cities named in the foregoing
section shall 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 , at which it will redeem its circulating notes at par.
A n d each o f such associations may keep one h a lf o f its
lawful money reserve in cash deposits in the city o f Xew
York. A n d each association not organized within the

C ertain a ss o ­
cia tio n s to se­
lect p la ce fo r
red em p tion o f
circ u la tio n .
See sec. 3.
a c t o f June 20,
1S74.

cities named in the preceding section shall select, subject
to the approval o f the Comptroller o f the Currency, an
association in either o f the cities named in the preceding
section at which it will redeem its circulating notes at par,
and the Comptroller shall give public notice o f the names
o f the associations so selected at which redemptions are to
be made by the respective associations, and o f any change
that may be made o f the association at which the notes of

I’ r oce e d in g s
in ca se o f fa il­
ure.

any association are redeemed. I f any association shall
fail either to make the selection or to redeem its notes as
aforesaid, the Comptroller o f the Currency may, upon re­
ceiving satisfactory evidence thereof, appoint a receiver,
in the manner provided for in this act, to wind up its
affairs: Provided , That nothing in this section shall re­
lieve any association from its liability to redeem its circu­
lating notes at its own counter, at par, in lawful money,

E a c h a ss o ­ on dem and:
cia tio n to take
n otes o f oth er tion formed
a ssocia tion s.




And provided , further, That every associa­
or existing under the provisions o f this act

shall take and receive at par, for any debt or liability to
said association, any and all notes or bills issued by any
association existing under and by virtue o f this act.

LAWS

C O N C E R N IN G

347

B A N K IN G .

S ec . 33. And be it f urther enacted, That the directors

dividends,

of any association may, semi-annually, each year, declare
a dividend o f so much o f the nett profits o f the association

as they shall judge expedient; but each association shall, fu® r p 1118
d"

before the declaration o f a dividend, carry one tenth part
o f its nett profits o f the preceding h a lf year to its surplus
fund until the same shall amount to twenty per centum o f
its capital stock.
S ec . 34. And be it further enacted, That every associa-

1 o^repm-t*° t o

tion shall make to the Comptroller o f the Currency a re- qU eriyI0ller
a“
port, according to the form which may be prescribed by
him, verified by the oath or affirmation o f the president or
cashier o f such association; which report shall exhibit in repo°rtents ° f
detail, and under appropriate heads, the resources and lia­
bilities o f the association before the commencement of
business on the morning o f the first M onday o f the months
ft
—
1
**
oi January, A p ril, July, and October o f each year, and
shall transmit the same to the Comptroller within five
days thereafter. A nd any bank failing to make and fan ng yof re­
ienaltt
transmit such report shall be subject to a penalty o f one porthundred dollars for each day after five days that such
report is delayed beyond that time. A n d the Comptroller
shall publish abstracts o f said reports in a newspaper to toc J“ P^ 0” ®
s
r
be designated by him for that purpose in the city o f stractsW ashington, and the separate report o f each association
shall be published in a newspaper in the place where such
association is established, or if there be no newspaper at
socli place, then in a newspaper published at the nearest
place thereto, at' the expense o f the association making
snch report.

In addition to the quarterly reports required

y Hds section, every association shall, on the first Tues­
day o f each month, make to the Comptroller o f the Cur- stai e ^entsh 1 y
tIr t
lency a statement, under the oath o f the president or
cashier, showing the condition o f the association making
such statement, on the morning o f the day next preceding
the date o f such statement, in respect to the following
items and particulars, to w it: average amount o f loans
and discounts, specie, and other lawful money belonging
, die association, deposits, and circulation.

A n d asso­

ciations in other places than those cities named in the
thirty-first section o f this act shall also return the amount
due them available for the redemption o f their circulation.
S ec. 3 5 . And be it further enacted, That no association „ Associations

•nan make any loan or discount on the security o f th e'?ans’ et?;- 0I1
n.
,
•
the security or
snares or its own capital stock, nor be the purchaser or*t k
^ lr own




348

N A T IO N A L

M ONETARY

C O M M IS S IO N .

holder o f any such shares, unless such security or pur­
chase shall be necessary to prevent loss upon a debt pre­
viously contracted in good f a i t h ; and stock so purchased
or acquired shall, within six months from the time o f its
purchase, be sold or disposed o f at public or private sale,
in default o f which a receiver may be appointed to close
up the business o f the association, according to the pro­
in d eb ted n ess
n o t to exceed
ca p ita l
stock ,

visions o f this act.
S ec. 36. And be it further en a cted That no association

'

/

shall at any time be indebted, or in anv 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 the following accounts, that
is to s a y :—
First. O n account o f its notes of circulation.
Second. On account of moneys deposited with, or col­
lected by, such association.
Third. On account o f bills o f exchange or drafts drawn
against money actually on deposit to the credit o f such
association, or due thereto.
Fourth. On account o f liabilities to its stockholders for
dividends and reserved profits.

A s s o c ia t io n s
n o t to h y p oth fn g ten otesClf o r
etc.

S ec. 37. And be it further enacted, That no association
.

.

.

.

either directly or indirectly, pledge or hypothecate
’ any o f its notes o f circulation, for the purpose o f pro­
curing money to be paid in on its capital stock, or to be

R evised statutes 5203.

used in its banking operations, or otherwise: nor shall anv
/ .

.

.

°

.

7

* \

7

association use its circulating notes, or any part thereof,
in any manner or form, to create or increase its capital
stock.

n ot
to
w ith d ra w a n y p ortion o f th eir

capital.

S ec . 38. A nd be it further en a cted That no association,
.

,

.

.

or any member thereof, shall, during the tune it shall
continue its banking operations, withdraw, or permit to
be withdrawn, either in form o f dividends or otherwise,
any portion o f its capital.

A n d i f losses shall at any time

have been sustained by any such association equal to or
exceeding its undivided

profits then on hand, no divi­

dend shall be m ade; and

no dividend shall ever be made

by any association, while it shall continue its banking
operations, to an amount greater than its nett profits then
on hand, deducting therefrom its losses and bad debts,

what to be And all debts due to any association, on which interest is
debts.
past due and unpaid for a period o f six months, unless




the same shall be well secured, and shall be in process o f
collection, shall be considered bad debts within the mean-

LAW S

C O N C E R N IN G

349

B A N K IN G .

ing o f this act: Provided , That nothing in this section
shall prevent the reduction o f the capital stock of the
association under the thirteenth section of this act.
S ec. 39.

A nd be it further enacted, That no association nof to°pay1
'out

shall at any time pay out on loans or discounts, or in pur- ceRevmeTse
tatchasing drafts or bills o f exchange, or in payment of de- utes> 5206posits, or in any other mode pay or put in circulation the
notes o f any bank or banking association which shall not,
at any such time, be receivable, at par, on deposit and in
payment o f debts by the association so paying out or
circulating such notes; nor shall it knowingly pay out or
put in circulation any notes issued by any bank or bank­
ing association 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.
S ec. 40. And be it further enacted, T hat the president aJL ofnames
ist
and
1

cashier o f everv such association shall cause to beof shareholders

J

.

to b kept;
e

Kept at all times a fu ll and 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; and such list shall be subject to
the inspection of all the shareholders and creditors o f t h e jj^yubject to
association, and the officers authorized to assess taxes
under State authority, during business hours of each day
m which business may be legally transacted; and a copy
° f such list, on the first M onday of July in each year,
verified by the oath o f such president or cashier, shall hecomlftroner
transmitted to the Comptroller o f the Currency.

t0

S ec. 41. And be it further enacted, T hat the plates toC “ e pr0 r
k P con
^ d special dies to be procured by the Comptroller o f the ^
Currency for the printing o f such circulating notes shalldi^ evlsed stat
iemain under his control and direction, and the expensesutes, 5 1 7 3 ,
necessarily incurred in executing the provisions o f this
uct respecting the procuring o f such notes, and all other
E xpenses to
nf 1
.1 ,
.
7
x
1
be borne b y
L me taxes or duties now or hereafter to be assessed on associations.

Expenses of the Bureau, shall be paid out o f the proceeds
the circulation, and collected from associations organized
under this act.

A n d in lieu o f all existing taxes, every

association shall pay to the Treasurer o f the United
States, in the months o f January and July, a duty o f one . D u ty upon
nair 01 one per centum each half year from and after thep
b aay ot January, eighteen hundred and sixty- f our,
C
upon the average amount of its notes in circulation, and
a duty of one quarter o f one per centum each half year




0 fj1f 8 > an?

350

N A T IO N A L

M ONETARY

C O M M IS S IO N .

upon the average amount of its deposits, and a duty of
one quarter o f one per centum each half year, as afore­
said, on the average amount of its capital stock beyond
the amount invested in United States bonds; and in case
H o w collected
if n o t p a id in
tim e.

o f default in the payment thereof o f any association, the
duties aforesaid may be collected in the manner provided
for the collection o f United States duties o f other cor­
porations, or the Treasurer may reserve the amount o f
said duties out o f the interest, as it may become due, on
the bonds deposited with him by such defaulting asso­

R etu rn o f c ir ­
cu la tio n , e t c . ,
to be m ade.

ciation.

A n d it shall be the duty o f each association,

within ten days from the first days of January and July
o f each year, to make a return, under the oath o f its
president or cashier, to the Treasurer o f the United
States, in such form as he may prescribe, o f the average
amount o f its notes in circulation, and o f the average
amount o f its deposits, and o f the average amount of its
capital stock, beyond the amount invested in United
States bonds, for the six months next preceding said first

P e n a lty f o r
d e fa u lt.

days o f January and July as aforesaid, and in default of
such return, and for each default thereof, each defaulting
association shall forfeit and pay to the United States the
sum o f two hundred dollars, to be collected either out o f
the interest as it may become due such association on the
bonds deposited with the Treasurer, 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; and in
case o f such default the amount o f the duties to be paid
by such association shall be assessed upon the amount o f
notes delivered to such association by the Comptroller of
the Currency, and upon the highest amount o f its deposits
and capital stock, to be ascertained in such other manner

S hares n o t
hereby
ex­
em pted f r o m
taxation
by
S t a t e a u th o r­
ity.

as the Treasurer may deem best: Provided , That nothing
in this act shall be construed to prevent all the shares in
any o f the said associations, held by any person or body
corporate, from being included in the valuation o f the
personal property of such person or corporation in the
assessment o f taxes imposed by or under State authority
at the place where such bank is located, and not else­
where, but not at a greater rate than is assessed upon
other moneyed capital in the hands o f individual citizens

L im it o f S ta te
tax.




o f such State: Provided , further , T hat the tax so im ­
posed under the laws o f any State upon the shares of any
o f the associations authorized by this act shall not exceed
the rate imposed upon the shares in any o f the banks

LAWS

C O N C E R N IN G

351

B A N K IN G .

organized under authority of the State where such asso­
ciation is located: Provided , also, That nothing in this b R®
e a^|Jtate t0
act shall exempt the real estate o f associations from either
State, county, or municipal taxes to the same extent,
according to its value, as other real estate is taxed.
S ec. 42. And be it further enacted, That any associa- tiJ*s\faS ib
yC e
tion may go into liquidation and be closed by the voteclosedof its shareholders owning two thirds o f its stock. A nd Proceedings
.

®

R evised Stat-

wiienever such vote shall be taken it shall be the duty of utes,

5220

,

the board o f directors to cause notice of this fact to be
certified, under the seal o f the association, by its presi­
dent or cashier, to the Comptroller o f the Currency, and
publication thereof to be made for a period o f two months
1 1 a newspaper published in the city of New Y ork , and
1
also in a newspaper published in a city or town in which
the association is located, and if no newspaper be there
published, then in the newspaper published nearest there­
to? that said association is closing up its affairs, and
notifying the holders o f its notes and other creditors
to present the notes and other claims against the asso­
ciation for payment. A n d at any time after the ex­
piration o f one year from the time of the publication o f
such notice as aforesaid, the said association may pay
over to the Treasurer o f the United States the amount o f
ds outstanding notes in the law ful money o f the United
States, and take up the bonds which said association has
°u deposit with the Treasurer for the security o f its cir­
culating notes; which bonds shall be assigned to the
bank in the manlier specified in the nineteenth section o f
this act, and from that time the outstanding notes of said
association shall be redeemed at the Treasury o f the
United States, and the said association and the share­
holders thereof shall be discharged from all liabilities
therefor.
On

43. And be it further enacted, That the Treasurer,
Treasurer to
ron • •
®
.
execute dupliteceiving from an association law ful money for the cate receipts,

payment and redemption o f its outstanding notes, as p r o - utes,

5222

,

'id ed for in the preceding section of this act, shall exe- ~~J
cute duplicate receipts therefor, 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
las been received, which amount shall be paid into the
leasury o f the United States, and placed to the credit

Redeemed

0 suc‘h association upon redemption account. A nd it mutnated^etc.6
b all be the duty o f the Treasurer, whenever he shall r e -j U e 23 ai 874.f
ne




352

N A T IO N A L

M ONETARY

C O M M IS S IO N .

deem any o f the notes of said association, to cause the
same to be mutilated, and charged to the redemption ac­
count of said association; and all notes so redeemed by the
Treasurer shall, every three months, be certified to and
burned in the manner prescribed in the twenty-fourth
section o f this act.
state banks
S e c . 44. And be it further enacted. That any bank in-

m a y
becom e
n a tio n a l asso-

. '

.

.

.

.

.

.

corporated by special law, or any banking institution
organized under a general law o f any State, may, by
authority o f this act, become a national association under
its provisions, by the name prescribed in its organization
certificate; and in such case the articles o f association
and the organization certificate required by this act may
be executed by a majority o f the directors o f the bank or
banking institution; and said certificate shall declare that
the owners o f two-thirds o f the capital stock have au­
thorized the directors to make such certificate and to
change and convert the said bank or banking institution

M od e o f p ro-




into a national association under this act.

A nd a ma­

jority o f the directors, after executing said articles o f
association and organization certificate, shall have power
to execute all other papers, and to do whatever may be
required to make its organization perfect and complete
as a national association. The shares of any such bank
m ay continue to be for the same amount each as they were
before said conversion, and the directors aforesaid may be
the directors o f the association until others are elected or
appointed in accordance with the provisions o f this act;
and any State bank which is a stockholder in any other
bank, by authority o f State laws, may continue to hold
its stock, although either bank, or both, may be organized
under and have accepted the provisions o f this act.

W hen

the Comptroller shall give to such association a certificate,
under his hand and official seal, that the provisions o f this
act have been complied with, and that it is authorized to
commence the business o f banking under it, the associa­
tion shall have the same powers and privileges, and shall
be subject to the same duties, responsibilities, and rules,
in all respects as are prescribed in this act for other asso­
ciations organized under it, and shall be held and re­
garded as an association under this act: Provided', how­
ever , T hat no such association shall have a less capital
than the amount prescribed
under this act,

for banking associations

LAWS

C O N C E R N IN G

353

B A N K IN G .

S ec. 45. And be it further enacted, That all associa- wtenSso es°i’
O iad 0
C
tions under this act, when designated for that purpose by depositaries of
the Secretary o f the Treasury, shall be depositaries o f E
xcept, ™
tc?tys’
public money, except receipts from customs, under such
regulations as may be prescribed by the Secretary; and
they may also be employed as financial agents o f the Gov- “ a f agentsDan
ernment; and they shall perform

all such reasonable ut*s
lev£f53stilt'
d

duties, as depositaries o f public moneys and financial
agents o f the Government, as may be required o f them.
And the Secretary of the Treasury shall require o f the
associations thus designated satisfactory security, by the depositaries to
deposit of United States bonds and otherwise, for th eP piomptIy’
dy
safe-keeping and prompt payment o f the public money
deposited with them, and for the faithful performance
o f their duties as financial agents o f the Government:

Provided , T hat every association which shall be selected to receive naand designated as receiver or depositary o f the public b inaa p reD
n s tc a cy
nioney shall take and receive at par all o f the national
currency bills, by whatever association issued, which have
been paid in to the Government for internal revenue, or
for loans or stocks.
S e c . 40>. And be it further enacted, That i f any such

if

associa-

assoeiation shall at anv time fail to redeem, m the la w f u l deem their cir-

J

.

.

.

d ila t io n ,

th e

money ol the United States, any o f its circulating n o t e s , n otes m ay be
7 J
t i t
protested, un. nen payment thereof shall be law fully demanded, d u r-iess, etc.
big the usual hours o f business, at the office of such as- utes!viS5d2S 6^
2
sociation, or at its place o f redemption aforesaid, th e 0--8,
holder may cause the same to be protested, in one packagc, by a notary-public, unless the president or cashier o f
e association whose notes are presented for payment, or
le president or cashier o f the association at the place at
which they are redeemable, shall offer to waive demand
an(l notice o f the protest, and shall, in pursuance o f such
°ffer, make, sign, and deliver to the party making such
demand an admission in writing, stating the time of the
demand, the amount demanded, and the fact o f the non­
payment thereof; and such notary-public, on making such

Notice of pro-

protest, or upon receiving such admission, shall fo r th - forwarded*0 to
with forward such admission or notice o f protest to ^ i e LomptrollerComptroller o f the Currency, retaining a copy thereof.
And after such default, on examination o f the facts by Association
the Comptroller, and notice by him to the association, itneVs further,
shall not be lawful for the association suffering the same ra°ept' etc’
to pay out any o f its notes, discount any notes or bills,




354

N A T IO N A L

M ONETARY

C O M M IS S IO N .

or otherwise prosecute the business of banking, except to
receive and safely keep money belonging to it, and to
N otes n o t to
be p rotested in
ce r ta in cases.

deliver special deposites: Provided , That if satisfactory
proof be produced to such notary-public that the payment

Fees
ta ry .

competent jurisdiction, such notary-public shall not pro­

o f any such notes is restrained by order of any court o f
of

no­

test the same; and when the holder o f such notes shall
cause more than one note or package to be protested on
the same day, he shall not receive pay for more than one
protest.

S e c . 47. And be it further enacted, T hat on receiving
U pon n o tice
o f fa ilu re
to
redeem c ir c u la ­ notice that any such association has failed to redeem any
tion , C om p trol1e r t o
send o f its circulating notes, as specified in the next preceding
sp ecia l a g e n t
t o a s c e r t a i n section, the Comptroller of the Currency, with the concur­
fa cts ;
R evised S ta t­ rence o f the Secretary o f the Treasury, may appoint a
utes,
5 2 2 7,
5 2 2 9,
5230, special agent (o f whose appointment immediate notice
5234.

shall be given to such association) who shall immediately
proceed to ascertain whether such association has refused

to pay its circulating notes in the law ful money o f the
United States, when demanded as aforesaid, and report
to the Comptroller the fact so ascertained; and if, from
such protest or the report so made, the Comptroller shall
be satisfied that such association has refused to pay its
circulating notes as aforesaid and is in default, he shall,
W h en to de­
cla re secu rities
fo r fe ite d .

within thirty days after he shall have received notice o f
such failure, declare the United States bonds and securi­
ties pledged by such association forfeited to the United
States, and the same shall thereupon be forfeited accord­

To n o t i f y
holders
of
n otes to p re­
sen t them fo r
p a y m en t;

ingly.

A n d thereupon the Comptroller shall immediately

give notice in such manner as the Secretary o f the Treas­
ury shall, by general rules or otherwise, direct, to the
holders o f the circulating notes o f such association to pre­
sent them for payment at the Treasury of the United
States, and the same shall be paid as presented in lawful

to p ay n otes
and cancel
bonds.




money of the United States; whereupon said Comptrol­
ler m ay, 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. A n d it shall be law­
ful for the Secretary o f the Treasury, from time to time,
to make such regulations respecting the disposition to be
made o f such circulating notes after presentation thereof
for payment as aforesaid, and respecting the perpetu­
ation o f the evidence o f the payment thereof as may seem
to him proper; but all such notes, on being paid, shall be

LAWS CONCERNING BANKING.

cancelled.

355

A n d for any deficiency in the proceeds o f the g

t uuuted

bonds pledged by such association, when disposed o f as^pon^sets^or
hereinafter specified, to reimburse to the United States
redem
ption
the amount so expended in paying the circulating notes o f o£ circu la tio n ,
such association, the United States shall have a first and
paramount lien upon all the assets o f such association;
and such deficiency shall be made good out o f such assets
m preference to any and all other claims whatsoever,
except the necessary costs and expenses o f administering
the same.
S ec . 48. And be it further enacted. That whenever the Bonds piedg'
.
.
ed as se cu rity
com ptroller shall become satisfied, as in the last p r e c e d - m a y . b e sold at
lng section specified, that any association has refused to R evised S ta tpay its circulating notes as therein mentioned, he m a y ,uteb’ o2°0'
instead o f cancelling the United States bonds pledged by
such association, as provided in the next preceding sec­
tion, cause so much of them as may be necessary to redeem
the outstanding circulating notes o f such association to be
sold at public auction in the city o f New Y ork , after givm g thirty days’ notice o f such sale to such association.
S ec . 49. And be it further enacted, That the Comp- o ^ a t private
troller o f the Currency m ay, i f he shall be o f opinion that

Rv e sta
e is d t-

the interests o f the United States will be best prom oted1 e ’ ° '
1 &
thereby, sell at private sale any o f the bonds pledged by
such association, and receive therefor either money or the
circulating notes o f such failing association: Provided ,

P ro v iso .

That no such bonds shall be sold by private sale for less
than par, nor less than the market value thereof at the
time o f sale: And provided , further , T hat no sales o f any
such bonds, either public or private, shall be complete
until the transfer thereof shall have been made with the
formalities prescribed in this act.
^ ec. 50. And be it further enacted, That on becoming

C o m p tro lle r
m ay a p p o in t a
c e i v e r to
clo s e a ffa irs o f
d e fa u ltin g
a s­
s o cia tio n .

satisfied, as specified in this act, that any association has r e
refused to pay its circulating notes as therein mentioned,
and is in default, the Comptroller o f the Currency may

B
forthwith appoint a receiver, and require of him such d u tieo n d f
s o
bond and security as he shall deem proper, who, under the ce iv e r, etc.

direction of the Comptroller, shall take possession of the
books, records, and assets o f every description of such
association, collect all debts, dues^ and claims belonging
to such association, 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, sell all the
real and personal property o f such association, on such




and
re­

R evised S ta t­
utes.
5 2 3 4,
523 6 , 5237.

356

NATIONAL MONETARY, COMMISSION.

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 provided for by the twelfth
section o f this act; and such receiver shall pay over all
moneys so made to the Treasurer of the United States,
subject to the order o f the Comptroller of the Currency,
and also make report to the Comptroller of the Currency
o f all his acts and proceedings.

The Comptroller shall

thereupon cause notice to be given, by advertisement in
such newspapers as he may direct, for three consecutive
months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof. A nd from time to time the Com p­
troller, after full provision shall have been first made for
refunding to the United States any such deficiency in
redeeming the notes o f such association as is mentioned
in this act, shall make a ratable dividend o f the money so
j)aid over to him by such receiver on all such claims as
may have been proved to his satisfaction or adjudicated
in a court o f competent jurisdiction; and from time to
time, as the proceeds o f the assets o f such association
shall be paid over to him, he shall make further divi­
dends, as aforesaid, on all claims previously proved or
adjudicated; and the remainder o f such proceeds, if any,
shall be paid over to the shareholders o f such association,
or their legal representatives, in proportion to the stock
I £ a s s o c ia ­
tion
denies
that
it has
fa ile d t o re­
deem its notes,
it m ay a p p ly
to th e cou rts
fo r an in ju n c ­
tion .




bv them respectively h e ld : Provided , however, That if
such association against which proceedings have been so
instituted, on account o f any alleged refusal to redeem
its circulating notes as aforesaid, shall deny having failed
to do so, such association may, at any time within ten
days after such association shall have been notified o f the
appointment o f an agent, as provided in this act, apply
to the nearest circuit, or district, or Territorial court of

P roceed in gs.

the United States, to enjoin further proceedings in the
premises; and such court, after citing the Comptroller o f
the Currency to show cause why further proceedings
should not be enjoined, and after the decision o f the
court or finding o f a jury that such association has not
refused to redeem its circulating notes, when legally pre­
sented, in the law ful money of the United States, shall
make an order enjoining the Comptroller, and any re­
ceiver acting under his direction, from all further pro­
ceedings on account o f such alleged refusal.

LAWS CONCERNING BANKING.

357

S ec . 51. And be it further enacted, That all fees f ° r te£e a^d°r tP
o her
protesting the notes issued by any such banking associaS
paid how
tion shall be paid by the person procuring the protest to be Revised statmacle, and such banking association shall be liable there­
fo r ; but no part o f the bonds pledged by such banking
association, as aforesaid, shall be applied to the payment
of such fees.

A n d all expenses of any preliminary or

other examinations into the condition of any association
shall be paid by such association; and all expenses of any
receivership shall be paid out of the assets o f such asso­
ciation before distribution o f the proceeds thereof.
S ec. 52. And be it further enacted, That all transfer of

Transfers, as-

iiie notes, bonds, bills o f exchange, and other evidences o f i n eontem
piaGeot owing to anv association, or or deposits to its credit; solvency, etc.,
ii
. °
J
1
.
.
to be void.
ail assignments o f mortgages, sureties on real estate, or Revised stat° f judgments or decrees in its fa v or; all deposits 0 f utes- J- 42money, bullion, or other valuable thing for its use; or for
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, with
a view to prevent the application of its assets in the man­
lier prescribed by this act, or with a view to the prefer­
ence o f one creditor to another, except in payment o f its
circulating notes, shall be utterly null and void.
S ec . 53. And be it further enacted, That i f the di- dT®°o’g ljp°°
y
sectors of any association shall knowingly violate, or
knowingly permit any of the officers, agents, or servants

|4t
ions °f

° f the association to violate any o f the provisions of this
act, all the rights, privileges, and franchises of the asso­
ciation derived from this act shall be thereby forfeited.
Such violation shall, however, be determined and ad-

violation,

judged by a proper circuit, district, or Territorial courttermined.
of the United States, in a suit brought for that purpose
by the Comptroller o f the Currency, in his own name,
before the association shall be declared dissolved. A n d , .Personal iia. . . . .
.
. .
bility.
in cases o f such violation, every director who participated
in or assented to the same shall be held liable in his per­
sonal and individual capacity for all damages which the
association, its shareholders, or any other person, shall
have sustained in consequence o f such violation.
S ec . 54. And be it further enacted. That the C o m p ..

'

7

.

r

comptroller

m ay

a p p o in t

troller o f the Currency, with the approbation o f the Sec- person ^to exretary o f the Treasury, as often as shall be deemed neces- fairs of a n y a s „ ’
.
. . . .
sociation.
sary or proper, shall appoint a suitable person or per­
sons to make an examination o f the affairs o f every bank-




358

N A T IO N A L

M ONETARY

C O M M IS S IO N .

ing association, which person shall not be a director or
other officer in any association whose affairs he shall be
appointed to examine, and who shall have power to make
a thorough examination into all the affairs o f the asso­
D u ty o f such
exa m in er.

ciation, and, in doing so, to examine any of the officers
and agents thereof on oath ; and shall make a full and de­
tailed report of the condition o f the association to the
Comptroller. A n d the association shall not be subject
to any other visitorial powers than such as are authorized
by this act, except such as are vested in the several courts
o f law and chancer}7
.

P a y.

A n d every person appointed to

make such examination shall receive for his services at
the rate o f five dollars for each day by him employed in
such examination, and two dollars for every twenty-five
miles he shall necessarily travel in the performance of his
duty, which shall be paid by the association by him
examined.
P en a lty upon
officers, etc., o f
a ss o cia tio n fo r
e m b e z z le m e n t,
etc., o f fu n ds.

S e c . 55.

A n d be it further enacted, That every presi­

dent, director, cashier, teller, clerk, or agent of any asso­
ciation,

who

shall

embezzle,

abstract,

or

w illfully

misapply any o f the moneys, funds, or credits o f the
association, or shall, without authority from the directors,
issue or put in circulation any o f the notes o f the associa­
tion, or shall, without such authority, issue or put forth
any certificate o f deposit, draw any order or bill of
exchange, make any acceptance, assign any note, bond,
draft, bill o f exchange, mortgage, judgment, or decree,
or shall make any false entry in any book, report, or
statement o f the association, with intent, in either case, to
injure or defraud the association or any other company,
body politic or corporate, or any individual person, or to
deceive any officer o f the association, or any agent ap­
pointed to examine the affairs o f any such association,
shall be deemed guilty o f a misdemeanor, and upon con­
viction thereof shall be punished by imprisonment not
D is tr ic t a t ­
torn ey s to con d u c t certa in
suits.

less than five nor more than ten years.
S e c . 56. And be it f urther enacted’, That all suits and
proceedings arising out of the provisions of this act, in
which the United States or its officers or agents shall be
parties, shall be conducted by the district attorneys of
the several districts, under the direction and supervision
o f the Solicitor o f the Treasury.

In

what

c o u r t s su its,
etc., un d er th is
a c t m a y be
p rosecu ted .




S e c . 57.

And be it further enacted, That suits, actions,

and proceedings, against any association under this act,
may be had in any circuit, district, or Territorial court

LAW S

C O N C E R N IN G

359

B A N K IN G .

of the United States held within the district in which
such association may be established;

or in any State. 1873-

county, or municipal court in the county or city in which
said association is located, having jurisdiction in similar
cases: Provided , however, That all proceedings to enjoinfo/7n^uncUons
the Comptroller under this act shall be had in a circuit,
in what
district, or Territorial court of the United States, held in
the district in which the association is located.
S e c . 58.
-nrh

And he it further enacted, That every person

J

i n

r

P e n a lty fo r
m utilating

"n o shall mutilate, cut, deface, disfigure, or perforatenotes tc> m»ke
wim holes, or shall unite or cement together, or do any tissue,

other thing to any bank bill, draft, note, or other evi­
dence o f debt, issued by any such association, or shall ute e silt Stat‘
g
cause or procure the same to be done, with intent to
render such bank bill, draft, note, or other evidence of
debt unfit to be reissued by said association, shall, upon
conviction, forfeit fifty dollars to the association who
shall be injured thereby, to be recovered by action in any
court having jurisdiction.
(Sections 59 and G prescribe penalties for counterfeit­
O
ing, etc., knowingly uttering, etc., for engraving, etc.,
plates for forging notes, etc., for having blank notes and
for having paper, etc.)
S e c . 61.

And he it further enacted, T hat it shall be the 10C" “ p*™” ®’
1
,

duty o f the Comptroller o f the Currency to report annuaUy to Congress at the commencement of its session—
-n,.

®

P

v irst. A summary o l the state and condition or every

t0 Con'
R evised
utes, 333.

stat-

association from whom reports have been received the repor
“tents of
preceding year, at the several dates to which such reports
refer, with an abstract o f the whole amount of banking
capital returned by them, o f the whole amount of their
debts and liabilities, the amount o f circulating notes out­
standing, and the total amount o f means and resources,^,
.

®7

specifying the amount of lawful money held by

co n te n ts
’ C o m p tr o lle r s

at the times o f their several returns, and such other infor­
mation in relation to said associations as, in his judgment,
may be useful.
Second. A statement o f the associations whose busi­
ness has been closed during the year, with the amount o f
their circulation redeemed and the amount outstanding.
Third. A n y amendment to the laws relative to banking
by which the system may be improved, and the security
o f the holders of its notes and other creditors may be
increased.
15712°— 10------ 25




of

them report t0 Con~

360

N A T IO N A L

M ONETARY

C O M M IS S IO N .

Fourth. The names and compensation o f the clerks em­
ployed by him, and the whole amount of the expenses of
the banking department during the year.

A nd such re­

port shall be made by or before the first day o f December
in each year, and the usual number of copies for the use
o f the Senate and House, and one thousand copies for the
use o f the department, shall be printed by the Public
Printer and in readiness for distribution at the first meet­
ing o f Congress.
ofR
ife31ch Is*
®EC* 62. And be it further enacted, That the act en­
voi. 12.
titled “ A n act to provide a national currency, secured by
a pledge o f United States stocks, and to provide for the
circulation and redemption thereof,” approved February
twenty-fifth, eighteen hundred and sixty-three, is hereby
Savingciauses. repealed: Provided , That such repeal shall not affect any
appointments made, acts done, or proceedings had, or
the organization, acts, or proceedings o f any association
organized or in the process o f organization under the act
aforesaid: And provided , also, That all such associations
so organized or in process of organization shall enjoy
all the rights and privileges granted, and be subject to
all the duties, liabilities, and restrictions imposed by this
act, and with the approval o f the Comptroller o f the
Currency, in lieu o f the name specified in their respective
organization certificates, may take any other name pre­
ferred by them and duly certified to the Comptroller,
without prejudice to any right acquired under this act,
or under the act hereby repealed; but no such change shall
be made after six months from the passage o f this act:

Provided , also, That the circulation issued or to be issued
by such associations shall be considered as a part o f the
circulation provided for in this act.
trusfeeslltetc’ S e c .
^ n d be it further enacted, T hat persons lioldhoiding ’ stock, ing stock as executors, administrators, guardians, and
sonaiiy liable, trustees, shall not be personally subject to any liabilities
as stockholders; but the estates and funds in their hands
shall be liable in like manner and to the same extent as
the testator, intestate, ward, or person interested in said
trust-funds would be if they were respectively living and
competent to act and hold the stock in their own names.
t£rVda o?er£
y
S e c . 64- And be it further enacted, That Congress may
pealed.
at any time amend, alter, or repeal this act.




Approved, June 3,

18G4.

.

LAW S

C O N C E R N IN G

361

B A N K IN G .

(B y the act o f March 1, 1872, Leavenworth is struck
out from the list o f redemption cities in section 31 above.
(17 Stat. L ., 32.)
.
(The use o f the word “ national,” as a part o f the name
o f any bank not organized under the national currency
act above, is forbidden by the act o f March 3, 1873.
Stat. L ., 603.)

(17

Note. The above act is in substance a revision o f that o f Febluary 25, 1863, with only such changes as experience bad shown
to be necessary for the trial o f the system. Some o f the principal
points o f difference between the tw o acts ax-e the follow in g:
Fhe act o f 1863 made no provision for the redemption o f the
circulation by the banks o f the principal cities, such as is con­
tained in sections 31 and 32 o f the act o f 1864; but simply re­
quired that every bank should redeem its circulation at its own
counter, and that it should have for that and other purposes a
reserve equal to twenty-five per cent o f its circulation and deposits,
of which reserve three-fifths might be deposited with associations
1Q Blue principal cities named in the act.
The prohibition o f the issue o f circulating notes o f a less de­
nomination than five dollars, took effect at once in the act o f 1863.
Under the act o f 1863, coupon bonds might be deposited to se­
cure the circulation, but by the act o f 1864 only registered bonds.
The act o f 1863 required a smaller minimum o f capital for a
new bank than the act o f 1864, required a smaller proportion to
bo paid in before beginning business, and allowed a longer time
for the payment o f the remainder.
Uhe act o f 1864 makes more complete provision than that of
1S63 for the conversion o f state banks into national associations,
permitting the retention o f the form er name o f a bank after con­
version, and in section 12 exempting the stockholders o f such
banks from personal liability under certain conditions, which
were intended to meet the case o f the Bank o f Commerce in the
eity o f New York.
The act o f 1863 failed to provide as to the taxation o f shares
by state authority, and permitted loans on real, as well as per­
sonal, security.
"llie act o f 1863 required the apportionment o f the total circu­
lation among the States and Territories, one h alf according to
representative population and one h alf having due regard to the
existing banking capital and resources.
For changes in the provision made in section 22, as to the
total amount o f bank notes and for the apportionment thereof, see
below, pages 364, 369-371, 418-421.
For changes in the lim it o f circulation allowed to any bank in
section 21, and the amount o f bonds to be held, see below,
Pages 364, 369-371, 418, 419, 423, 432, 433.
u x °te to section 55, chapter 106, June 3, 1864 (13 Stat. L. 99) :
‘ The act o f April 6, 1869 (16 Stat. L., 7 ), prescribed a. penalty
for aiding and abetting officers, etc., o f national banks in embez­
zling, etc., funds o f bank.”




362

N A T IO N A L

M ONETARY

C O M M IS S IO N .

“ The act o f April 22, 1S70 (16 Stat. L,, 91) amending the
usury laws o f the D istrict o f Columbia, provided that nothing
therein should affect national banking associations.”
“ The act o f July 8, 1870 (16 Stat. L., 195), provided that sec­
tion 55, above, and all acts amendatory thereof should be con­
strued to apply to every president, director, cashier, teller, clerk,
or agent o f any banking association organized, etc.”

A C T O F J U N E 30, 1864.

^13 stat.

l.,

C h a p . C L X X I I I . — An act to pi'ovide internal revenue to

support the Government, to pay interest on the public
debt, and for other purposes.
*

*

*

*

*

(Section 110 levies a duty on deposits, capital, and cir­
culation o f banks and bankers.)
(Amended 17 Stat. L.,
256.)
*

*

*

*

*

Approved, June 30, 1864.
A C T O F M A R C H 3, 1865.
13 stat. l., C h a p . L X X V I I I . — An act to amend an act entitled “ A n

act to provide internal revenue to support the Govern­
ment, to pay interest on the public debt, and for other
p u rp o se sa p p ro v e d June thirtieth, eighteen hundred
and sixty-four.
*
Tax on bank
ter, etc.

S e c . 6.

*

*

*

*

And be it further enacted, That every national

banking association, state bank, or state banking asso­
ciation, shall pay a tax o f ten per centum on the amount
o f notes o f any state bank or state banking association,
paid out by them after the first day of July, eighteen
hundred and sixty-six.

Existing state
S e c . 7. And be it further enacted, That any existing
banks to be p
r
e
. . .
.
..
.
, ,
i
.
f e r r e d until, bank organized under the laws ot any state, having a
fn g ’ton become paid-up capital o f not less than seventy-five thousand
national banks. c
|0p arg^ wj1jc}1 sh all apply before the first day o f July




next for authority to become a national bank under the
1864, ch. ice. act entitled “ A n act to provide a national currency se­
cured by a pledge o f the United States bonds, and to
provide for the circulation and redemption thereof,” ap­
proved June third, eighteen hundred and sixty-four, and
shall comply with all the requirements o f said act, shall,
i f such bank be found by the comptroller o f the currency

LAWS

C O N C E R N IN G

363

B A N K IN G .

to be in good standing and credit, receive such authority

Provlso-

in preference to new associations applying for the same:

Provided , That it shall be law ful for any bank or bank­
ing association organized under state laws, and having
branches, the capital being joint and assigned to and used
by the mother bank and branches in definite proportions,
to become a national banking association in conformity
■with existing laws, and to retain and keep in opera­
tion its branches, or such one or more o f them as it may
elect to retain; the amount o f the circulation redeemable
at the mother bank and each branch to be regulated by
the amount of capital assigned to and used by each.
*
*
*
*
*
S e c . 14. And be it further enacted, That the capital o f de^ e d the cap6
any state bank or banking association which has ceased, j ^ ko o rS re
ff
pu
01 shall cease to exist, or which has been or shall be con-p»®es of thls

verted into a national bank, for all the purposes o f the act
to which this is an amendment, shall be assumed to be the
capital as it existed immediately before such bank ceased
to exist or was converted as aforesaid. A nd whenever the
outstanding circulation o f any bank, association, corpolation, company, or person shall be reduced to an amount
not exceeding five per centum of the chartered or declared
capital existing at the time the same was issued, said cir­
culation shall be free from taxation. A n d whenever any ^en^free^of
state bank or banking association has been converted into tax.
a national banking association, and such national banking
association has assumed the liabilities o f such state bank
or banking association, including the redemption o f its
hills, such national banking association shall be held to
make the required return and pavment on the circulation
outstanding, so long as such circulation shall exceed five
per centum o f the capital before such conversion o f such
state bank or banking association.
*
*
*
*
*

Approved, March 3, 1865.
(Section 6 was amended by section 9, act o f July 13,
1866

(14 Stat. L ., 1 4 6 ), to provide that persons, etc.,

m m g notes o f state banks as circulation after August 1,
66, to pay a tax of ten per cent thereon.
S
ection 14 was amended by the same act and section to
( ( ne the capital o f certain banks, and providing that
circu ation not over five per cent, and banks ceasing to
issue circulation should not be taxed, and that converted
banks should pay tax.)




36 4

N A T IO N A L

M ONETARY

C O M M IS S IO N .

A C T O F M A R C H 3, 1865.
L X X X I I . — A n act to amend an act entitled “ A n .
act to 'provide a national currency, secured by a pledge
of United States bonds, and to provide for the circula­
tion and redemption thereofA

4 98 3 S tat l ” C h a p .

Be it enacted by the Senate and Rouse of Representa­
tives of the United States o f America in Congress assem­
bled, T hat section twenty-one of said act be so amended
that said section shall read as fo llow s:
S e c . 21. And be it further enacted, T hat upon the
iwnds^msfy'reJ transfer and delivery o f bonds to the Treasurer, as prociation sDS a fte r

ingVnotesr.cu la t

yided in the foregoing section, the association making the
same shall be entitled to receive from the Comptroller o f
the Currency circulating notes o f different denominations,
in blank, registered and countersigned as hereinafter pro­
vided, equal in amount to ninety per centum of the cur­
rent market value o f the United States bonds so trans-

a m ou n t o f n otes
to be received .

f erred and delivered, but not exceeding ninety per centum
Qf the amount o f said bonds at the par value thereof, if

statutesR
e5m d bearing interest at a rate not less than five per centum
per annum ; and the amount o f said circulating notes to
be furnished to each association shall be in proportion to
its paid-up capital as follows, and no more: T o each asso­
ciation whose capital shall not exceed five hundred thou­
sand dollars, ninety per centum of such capital; to each
association whose capital exceeds five hundred thousand
dollars, but does not exceed one million dollars, eighty
per centum of such capital; to each association whose
capital exceeds one million o f dollars, but does not exceed
three millions o f dollars, seventy-five per centum o f such
capital;
A p p o r t i o n - millions
iz e d c ir cu la tio n ,




to each association whose capital exceeds three
o f dollars, sixty per cent, o f such capital.

A nd

that one hundred and fifty millions o f dollars o f the
entire amount o f circulating notes authorized to be issued
shall be apportioned to associations in the States, in the
District o f Columbia, and in the Territories, according to
representative population, and the remainder shall be
apportioned by the Secretary o f the Treasury among asso­
ciations formed in the several States, in the District of
Columbia, and in the Territories, having due regard to
the existing banking capital, resources, and business of
such States, District, and Territories.
Approved, March 3, 1865.

LAWS

C O N C E R N IN G

365

B A N K IN G .

A C T O F M A R C H 2, 1867.

Chap.

C X C I V . — An act to provide ways and means for ^

stat- L-

the payment of compound-interest notes.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That for the purpose o f redeeming and retiring any l0J
compound interest notes outstanding, the Secretary of the ^ a^
edeem co d
iS m
Treasury is hereby authorized and directed to issue tern- £°a° d' interest
e
porary loan certificates in the manner prescribed by sec­
tion four of the act entitled “ A n act t*o authorize the issue
of United States notes and for the redemption or funding
thereof, and for funding the floating debt of the United
States,” approved February twenty-fifth, eighteen hun­
dred and sixty-two, bearing interest at a rate not exceed- J*ate of iD
ter‘
ing three per centum per annum, principal and interest lnferestp pay°d
a
payable in law ful money on demand; and said c e r t i f i c a t e s la" fu
l
of temporary loan may constitute and be held, by any na- m r^elc
g
f ht,d by
tional bank holding or owning the same, as a part o f the^e n
aveks as re'
reserve provided for in sections thirty-one and thirty-two
of the act entitled “ A n act to provide a national currency
secured by a pledge o f United States bonds, and to pro­
vide for the circulation and redemption thereof,” ap­
proved June three, eighteen hundred and six ty -fo u r: Pro-

1 roviso-

rided, That not less than two-fifths o f the entire reserve
of such bank shall consist o f lawful money o f the United
States: And provided f urther, T hat the amount of such
temporary certificates at any time outstanding shall not
exceed fifty millions o f dollars.
Approved, March 2, 1867.
a further issue o f certificates o f indebtedness amountto twenty-five millions o f dollars was authorized by the act of
July 25, 1868, with like privileges as to reserve.

N ote,

A C T O F F E B R U A R Y 10, 1868.
C h a p . V I I .— An

act in relation to taxing shares in is stat. l ., 34.
national banks.

, ^ e to enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem-

ned, That the words “ place where the bank is located,tionairebanksnto
ant not elsewhere,” in section forty-one o f the “ act t o ^
provide

a national

currency,”

approved

June

t

h

i

r

eighteen hundred and sixty-four, shall be construed a n d 111-




d

,

P
.

NATIONAL MONETARY COMMISSION.

3 6 6

held to mean the State within which the bank is located;
How to be and the legislature of each State may determine and di-

taxed.

0

.

rect the manner and place o f taxing all the shares of
national banks located within said State, subject to the
restriction that the taxation shall not be at a greater rate
than is assessed upon other moneyed capital in the hands
o f individual citizens of such State: And provided alT hat the shares of any national bank owned bv

shares of non- ways.
residents.
°

J

J

non-residents o f any State shall be taxed in the city or
town where said bank is located, and not elsewhere.
Approved, February 10, 1868.
A C T O F F E B R U A R Y 19, 1869.
^_i5 stat.

l .,

C h a p . X X X I I . — An act to prevent loaning money upon

United States notes.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assemsociaUonnotto

T hat no national banking association shall hereafter offer or receive United States notes or national bank
upon United
states n o t e s , notes as security or as collateral security for any loan of
i

oa n m oney

them from use,
See

Revised

money, or for a consideration shall agree to withhold the
same from use, or shall offer or receive the custody or
promise o f custody o f such notes as security, or as collat­
eral security, or consideration for any loan o f m oney;
and any national banking association offending against
the provisions o f this act shall be deemed guilt}7 o f a mis­
demeanor, and upon conviction thereof in any United
States court having jurisdiction shall be punished by a
fine not exceeding one thousand dollars, and by a further
sum equal to one-third o f the money so loaned; and the
officer or officers o f said bank who shall make such loan
or loans shall be liable for a further sum equal to one
quarter o f the money so loaned; and the prosecution of
such offenders shall be commenced and conducted as pro-

Penaity.




vided for the punishment o f offences in an act to provide
a national currency, approved June third, eighteen hun­
dred and sixty-four, and the fine or penalty so recovered
shall be for the benefit of the party bringing such- suit.
Approved, February 19, 1809.

LAWS CONCERNING BANKING.

367

A C T O F M A R C H 3, 1869.

C h a p . C X X X . — A n act regulating the reports of national 39io stat. l .,
hanking associations.
Be it enacted hy the Senate and House of Representa­
tives of the United States of America in Congress assem­
Banking
bled,, That in lieu of all reports required by section thirty- s o cia tio n s as­
to

four o f the national currency act, every association shall make not less
th a n five r e ­

make to the Comptroller of the Currency not less than ports each year
to Comptroller
Currency.
live reports during each and every year, according to the of1864, ch. 106,
form which may be prescribed by him, verified by the sec. 34, vol. 13,
p. 109.

Reports, how
oath or affirmation of the president or cashier of such verified, and to
exhibit what.
association, and attested by the signature o f at least three

° f ^ le directors; which report shall exhibit, in detail and
under appropriate heads, the resources and liabilities of
the association at the close o f business on any past day
sent to
to be by him specified, and shall transmit such report to C To betr o ll e r
om p
w i t h i n five
tbe Comptroller within five days after the receipt of a days after re­
ceipt of
request or requisition therefor from h im ; and the report therefor request
; to be
published in a
° f pach association above required, in the same form in newspaper.
which it is made to the Comptroller, shall be published in

u newspaper published in the place where such association
ls established, or if there be no newspaper in the place,
then in the one published nearest thereto in the same
Proof
county, at the expense of the association; and such proof lication. of pub­
of publication shall be furnished as may be required by

the Comptroller.

A n d the Comptroller shall have power

to call for special reports from any particular association

S p e c ia l r e ­
ports.

whenever in his judgment the same shall be necessary in
order to a full and complete knowledge of its condition.
ny association failing to make and transmit any such P en a lty for
not makingand
report shall be subject to a penalty of one hundred dol- transmit t i n g
reports.

drs ^or each day after five days that such bank shall
ce ay to make and transmit any report as aforesaid; and
m case any association shall delay or refuse to pay the
penalty herein imposed when the same shall be assessed
the Comptroller o f the Currency, the amount of such how m ay be
collected;

penalty may be retained by the r Tea surer o f the United
I
states, upon the order o f the Comptroller o f the Cur­
rency, out of the interest, as it may become due to the
association, on the bonds deposited with him to secure
(ircu ation; and all sums o f money collected for penalties to be paid into
the Treasury.

um u this section shall be paid into the Treasurv o f the
United States.




NATIONAL MONETARY COMMISSION.

368

Additional re­
S e c . 2 . And be it further enacted, That, in addition to
port to Comp­
t r o lle r of the said reports, each national banking association shall re­
amount of divi­
dends and of port to the Comptroller of the Currency the amount of
net earnings;

each

dividend

declared

by

said

association,

and

the

w h ere to he amount o f net earnings in excess o f said dividends, which
made and how
verified.
report shall be made within ten days after the declaration

o f each dividend, and attested by the oath of the presi­
Penalties.

dent or cashier o f said association, and a failure to com­
ply with the provisions o f this section shall subject such
association to the penalties provided in the foregoing
section.
Approved, March 3, 1869.
A C T O F M A R C H 3, 1869.

15 Stat. L.,
335.

Chap.

C X X X V .—
An

act in reference
checks by national banks.

to certifying

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
Officers, etc., bled, That it shall be unlawful for any officer, clerk, or

o f n a t io n a l
b a n k s n o t to agent o f any national bank to certify any check drawn
certify checks
on such banks, upon said bank unless the person or company drawing
unless, etc.

said check shall have on deposit in said bank at the time
such check is certified an amount o f money equal to the
Certain cer­ amount specified in such check; and any check so certi­
tified checks to
be good.
fied by duly authorized officers shall be a good and valid
Penalty for obligation against such bank; and any officer, clerk, or
unlawfully cer­
tifying checks. agent o f any national bank violating the provisions of

this act shall subject such bank to the liabilities and pro­
ceedings on the part o f the comptroller as provided for
1864, ch. 106, in section fifty o f the national banking law, approved
s e c. 50, V o l.
X III, p. 114.
June third, eighteen hundred and sixty-four.

Approved, March 3, 1869.
A C T O F M A R C H 3, 1869.
15 Stat. L„
339.
1863, ch. 58,
sec. 52, V o l .
XII, p. 680.




Chap. C X L V .— A n

act to amend an act entitled “An act
to provide a national currency secured by a pledge of
United States bonds, and to provide for the circulation
and redemption thereof,” by extending certain penal­
ties to accessories.

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem-

369

LAWS CONCERNING BANKING.

bled, That every person who shall aid or abet any a b^ tfm f an ofr
officer or agent o f any association in doing any of the n ational’ bank
acts enumerated in section fifty-two of an act entitled
“ A n act to provide a national currency secured by a

punished!

pledge o f United States bonds, and to provide for the
circulation and redemption thereof,” approved February
twenty-fifth, eighteen hundred and sixty-three, with in­
tent to defraud or deceive, shall be liable to the same
punishment therein provided for the principal.

Approved, March 3, 1869.
A C T O F J U L Y 12, 1870.
C h a p . C C L I I . — A n act to provide for the redemption of 0_ i6 stat- L->

the three per cent, temporary loan certificates and for
an increase of national bank notes.
e
it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That fifty-four millions of dollars in notes for circu-

Additional
\
.
.
.
notes for circu­
i t 1011 may be issued to national banking associations, in u t i o n to naii.,.
°
tional banking
audition to the three hundred millions of dollars author- associations,

, i j*

ized by the twenty-second section o f the ‘“A c t to provide
a national currency, secured by a pledge o f United States
bonds, and to provide for the circulation and redemption
thereof,” approved June three, eighteen hundred and
sixty-fou r; and the amount o f notes so provided s h a ll g^ otes^ to^ b e
be furnished to banking associations organized or to be associations,
organized in those States and Territories having less
than their proportion under the apportionment contem­
plated by the provisions o f the “ A ct to amend an act
to provide a national currency secured by a pledge o f
nited States bonds, and to provide for the circulation
and redemption thereof,” approved March three, eight­
een hundred and sixty-five, and the bonds deposited with t o ^ eh^ePosited
the I reasurer o f the United States, to secure the addi- to secure such
>nai circulating notes herein authorized, shall be of any
description o f bonds o f the United States bearing inter­
est m coin, but a new apportionment o f the increased circulation herein provided for shall be made as

SOOn

New a p p o r-

as basis of census

practicable, based upon the census o f eighteen hundred °f 1S‘° ’
and seventy: Provided, That if applications for the c i r c u - Y o r ' s u c h
Mion herein authorized shall not be made within one
.

a
,r®

ar a.tter the passage o f this act by banking associations^^ y | issued
b

oiganized or to be organized in States having less than t0^evC
iSed stattheir proportion, it shall be law ful for the Comptroller utes> 5176>




370

NATIONAL MONETARY COMMISSION.

o f the Currency to issue such circulation to banking asso­
ciations applying for the same in other States or Terri­
tories having less than their proportion, giving the pref­
No bank here­ erence to such as have the greatest deficiency: And pro­
after organized
to h ave o v e r vided further , T hat no banking association hereafter or­
$500,000 circu­
lation.
ganized shall have a circulation in excess o f five hundred

thousand dollars.
(Section 2 provides that at the end o f every month the
Secretary o f the Treasury shall call in and redeeem an
amount o f the three per cent temporary loan certificates
issued under the acts o f March 2, 1867, and July 25, 1868,
not less than the amount o f circulating notes issued to na­
tional banking associations under the preceding section
during the previous month.)
C ircu la tin g
notes p a y a b le
in g o ld c o in
may be issued
to associations
d e p o s itin g
United States
bonds p a y in g
in t e r e s t
in
gold.

S ec . 3. And he it further enacted, That upon the de­
posit o f any United States bonds, bearing interest pay­
able in gold, with the treasurer o f the United States, in
the manner prescribed in the nineteenth and twentieth
sections o f the national currency act, it shall be lawful for
the comptroller o f the currency to issue to the association

D e n o m in a ­ making the same, circulating notes o f different denomina­
tio n s
and
amount of such tions, not less than five dollars, not exceeding in amount
notes.

eighty per centum o f the par value o f the bonds de­
posited, which notes shall bear upon their face the prom­
ise o f the association to which they are issued to pay
them, upon presentation at the office o f the association, in
gold coin o f the United States, and shall be redeemable
C ircu la tion upon such presentation in such coin: Provided , That no
o f any su ch
bank not to ex­ banking association organized under this section shall
ce e d $1,000,-

000.

have a circulation in excess o f one million o f dollars.

Such associa­
S ec . 4. And he it further enacted, That every national
tions to keep
on h an d n ot banking association formed under the provisions o f the
le s s th an 25
per cent of cir­ preceding section o f this act shall at all times keep on
c u la t io n
in
g o ld a nd s i l ­ hand not less than twenty-five per centum o f its out­
ver ;

standing circulation in gold or silver coin o f the United

to r e c e iv e at States, and shall receive at par in the payment o f debts
par gold notes
of other such the gold notes o f every other such banking association
banks.

which at the time o f such payments shall be redeeming its
circulating notes in gold coin o f the United States.
Such associa­
S ec. 5. A nd he it further enacted, That every associa­
tions subject to
n a tio n a l c u r ­ tion organized for the purpose o f issuing gold notes as
rency a c t, e x ­
cept, etc.
provided in this act shall be subject to all the require­




ments and provisions of the national currency act, ex­
cept the first clause o f section twenty-two, which limits
the circulation o f national banking associations to three

371

LAWS CONCERNING BANKING.

hundred millions o f dollars; the first clause o f section
thirty-two, which, taken in connection with the preceding
section, would require national banking associations or­
ganized in the city o f San Francisco to redeem their cir­
culating notes at par in the city o f New Y o r k ; and the
last clause o f section thirty-two, which requires every
national banking association to receive in payment of
debts the notes o f every other national banking associa­
tion at p ar: Provided , That in applying the provisions^Terms^Ma^
and requirements o f said act to the banking associations “ fiawfui money
herein provided

for, the terms “ lawful m oney," and states” how

lawtul money of the United States,” shall be held and c o n n e c t i o n
construed to mean gold or silver coin
States.

of the United

S ec. 6. And be it further enacted, That to secure a tb u t t o n d
iof
more equitable distribution o f the national banking
currency how
rency there may be issued circulating notes to banking c Excess of cir-

cur-

associations organized in# States and Territories having w eed in g^^
es' than their proportion as herein set forth. A nd thewitYar^awn
s
amount o f circulation in this section authorized shall,
under the direction o f the Secretary o f the Treasury, as
it may be required for this purpose, be withdrawn, as
herein provided, from banking associations organized in
States having a circulation exceeding that provided for
hy the act entitled “ A n act to amend an act entitled ‘A n
act to provide for a national banking currency, secured
by pledge o f United States bonds, and to provide for the
circulation and redemption thereof,’ ” approved March
three, eighteen hundred and sixty-five, but the amount so
withdrawn shall not exceed twenty-five million dollars.
I he comptroller o f the currency shall, under the direction
of the Secretary of the Treasury, make a statement show- , statement of
mg the amount o f circulation in each State and Territory, each_state and
and the amount to be retired by each banking a s s o c i a - a n d of
tion in accordance with this section, and shall, when such retired, etc.
redistribution o f circulation is required, make a requi­
sition for such amount upon such banks, commencing with
the banks having a circulation exceeding one million ° f distritm
Uon re
dollars in States having an excess of circulation, and
v ithdrawing their circulation in excess o f one million of
dollars, and then proceeding pro rata with other banks
having a circulation exceeding three hundred thousand
dollars in States having the largest excess of circulation,
and reducing the circulation o f such banks in States hav-




NATIONAL. MONETARY COMMISSION.

372

ing the greatest proportion in excess, leaving undisturbed
the banks in States having a smaller proportion, until
those in greater excess have been reduced to the same
grade, and continuing thus to make the reduction pro­
vided for by this act until the full amount of twenty-five
millions, herein provided for, shall be withdrawn; and
the circulation so withdrawn shall be distributed among
the States and Territories having less than their proporto ^ a k ^ requi- tion, so as to equalize the same.

A n d it shall be the duty
siUon forth- 0 f the comptroller of the currency, under the direction o f
ami f Ub a n k i n g
fa lf,0

the Secretary o f the Treasury, forthwith to make a requi-

wUhin°a sition for the amount thereof upon the banks above indi-

t h e r ’a m ountUo f cated as herein prescribed.
A n d upon failure of such
q¥ d
u re atlcomr associations, or any o f them, to return the amount so repeq°u£C amount
of^ th e ir bonds,

quired within one year, it shall be the duty o f the comptroller o f the currency to sell at public auction, having
given twenty days’ notice thereof in one daily news­
paper printed in W ashington aaid one in X ew Y ork city,
an amount o f bonds deposited by said association, as se­
curity for said circulation, equal to the circulation to be
withdrawn from said association and not returned in
compliance with such requisition; and the comptroller o f
the currency shall with the proceeds redeem so many of
the notes o f said banking association, as they come into

No circuia-the treasurv, as will equal the amount required and not
etcawn unti1, s0 returned, and shall pay the balance, if any, to such
banking association: Provided , That no circulation shall
be withdrawn under the provisions o f this section until
after the fifty-fou r millions granted in the first section
shall have been taken up.
(Section 7 provides that after six months from the
passage o f this act any association may be removed from
any State having more than its proportion o f circulation
to any State having less than its proportion; but the
amount o f the issue o f said association shall not be de­
ducted from the new issue herein provided for.)
Approved, July 12, 1870.
A C T O F J U L Y Id, 1870.
_if? stat. l ., C h a p . C C L V I I .— A n act to require national banks going




into liquidation to retire their circulating notes.
Be it enacted bxj the Senate and House of Representa­
tives of the United States of America in Congress as-

373

LAWS CONCERNING BANKING.

sembled, That every bank that has heretofore gone into b ^ V s t hat
liquidation under the provisions o f section forty-two o f shVi e
go?Tn to
the national currency act, shall be required to deposit deposftTawfui
lawful money o f the United States for its outstanding “ and'in^circui
circulation within sixty days from the date o f the passage la|1

Revised

of this act. A n d every bank that may hereafter go into §o23.ltes’ u" " ’
liquidation shall be required to deposit lawT
ful money of
the United States for its outstanding circulation within
six months from the date o f the vote to go into liquida­
tion; whereupon the bonds pledged as security for such
eiidilation shall be surrendered to the association making
such deposit.

A nd if any bank shall fail to make the de- t0Ifm k f^ s
ba° e

posit and take up its bonds for thirty days after the ex- ^ompVroiVer
piration o f the time specified, the Comptroller o f the
^ tio n 1
?!a
Cuirency shall have power to sell the bonds pledged for New Yorkthe circulation of said bank at public auction in New
^o rk City, and after providing for the redemption and
cancellation o f said circulation, and the necessary ex­
penses of the sale, to pay over any balance remaining
from the proceeds to the bank, or its legal representative:

Provided, That banks which are winding up in good

e x ^ p t bfro m

aith for the purpose o f consolidating with other banks thls act
shall be exempt from the provisions of this act: And pro- re^rS t0 1e
ted!
>

'

further, T hat the assets and liabilities o f banks

s0 *n liquidation shall be reported by the banks with
A ich they are in process o f consolidation.
'h
Approved, July 14, 1870.
A C T O F J U N E 8, 1872.
C h a p . C C C X L V I .— A n act for the better security of bank ^

stat- L-»

reserves, and to facilitate bank clearing-house exchanges.
Pc it' enacted by the Senate and House of Representa-

u r y m ay rec e i v e U n ited

j

from national banking associations, in sums n o tstates noteson
ess than ten thousand dollars, and to issue certificates
ere or in such form as the Secretary may prescribe, in
enominations o f not less than five thousand dollars;

^

lc 1 cerfificate shall be payable on demand in United
tates notes, at the place where the deposits were made.




NATIONAL MONETARY COMMISSION.

374
t b e r e f o r aand

S ec.

2- That the United States notes so deposited in the

h e e a RevfsedTreasury
<S
statutes, 5193. p ar^ 0 f

o f the United States shall not be counted as
the ]egal reserve; but the certificates issued there­

for may be held and counted by national banks as part of
their legal reserve, and may be accepted in the settlement
o f clearing-house balances at the places where the deposits
therefor were made.

toC
berlexpanded S ec. That nothing contained in this act shall be Con­
o c o ° tracted strued to authorize any expansion or contraction o f the
Notes

to

becurrency . anc| the United States notes for which such cer-

sp ecia l
a ep osits ,a n d b o w app nea.

~ 5

tificates are issued, or other United States notes o f like
amount, shall be held as special deposits in the Treasury,
and used only for the redemption of such certificates.
Approved, June 8, 1872.
A C T O F J A N U A R Y 20, 1873.

it

stat.

l .,

C h a p . X L I I I . — A n act to authorize the examination of

certain hanks.

n a
oanKS

t;o
id

Pislrict
1
exam ined.

Be it enacted hy the Senate and House of Representa­
tives of the United States of America in Congress assemi hied, That the comptroller o f the currency, in addition to

n a
tn e

m

c°'th e powers now conferred upon him by law for the exammation o f national banks, is hereby further author­
ized, whenever he may deem it useful, to cause examina­
tion to be made into the condition o f any bank in the
District o f Columbia organized under act of Congress.

R ep ort.

The comptroller, at his discretion, may report to Congress

E xp ense.

the results o f such examination.

The expense necessarily

incurred in the execution o f this act shall be paid out of
any appropriation made by Congress for special bank
examinations.
Approved, January 20, 1873.
A C T O F F E B R U A R Y 19, 1873.
17 stat.

l

a p . C L X V I . — An act to provide for obtaining Infor­
mation of the Condition of Banks organized under

>Ch

State Laws.

c o m p t r o i ie r o f
the C u rren cy to
rep ort a n n u a lly
t o C on gress th e

Be it enacted hy the Senate and House of Representa­
tives of the United States of America in Congress assemhied, That it shall be the duty o f the comptroller of
7

^

r

the currencv to report annually to Congress, under ap.

1

i

t

.

•

. . . . .

conduion^^ofpropnate heads, the resources and liabilities, exhibiting

etc.;




’ the condition of the banks, banking companies, and sav-

LAWS CONCERNING BANKING.

375

ings-banks organized under the laws o f the several States
and Territories, such information to be obtained by the
comptroller from the reports made by such banks, bank­
ing companies, and savings-banks to the legislatures or
officers

of

the

different States and Territories.

A nd

where such reports can not be obtained, the deficiency
shall be supplied from such other authentic sources as
may be available.
S ec . 2. That, in order to carry the provisions o f the “ ay em
p'oy an
first section of this act into effect, the comptroller o f the

clerk

if

neces-

currency is hereby authorized, if it should be necessary, S °
to employ one clerk o f class four, who shall be appointed
by the Secretary of the Treasury in the manner now pro­
vided by law.
Approved, February 19, 1873.
A C T O F M A R C H 3, 1873.
C h a p . C C L X I X .— A n act to require national banks to 001J stat- Lrestore their capital when impaired, and to amend the

national-currency act.
_ B e it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, That all national banks which shall have failed
t n ^r.-,

,i

.

. . .

.

.

D eficiencies in
the c a p i t a l

u Pay up their capital stock, as required by law, and all stock of na„ T i
l
l
• i
,
tio n a l banks to
Mtionai banks whose capital stock shall have become i m - ^ g“ a u p by
^

paired by losses or otherwise, shall, within three months

rata

uponstock-

after receiving notice thereof from the Comptroller o f etc.ders’ withlD’
the Currency, be required to pay the deficiency in the
capital stock by assessment upon the shareholders, pro
™fa, for the amount o f capital stock held by each and the
reasurer o f the United States shall withhold the interest

.interest to be

llPon all bonds held by him in trust for such associa- etc.hheld unti1,
tion, upon notification from the Comptroller of the Cur­
rency, until otherwise notified by h im ; and if such banks Receiver to be
, lclH
0

to pay up their capital stock, and shall refuse etc.F
into liquidation, as provided by law, for three se^6 voi.1
|&,C (i3i

Months after receiving notice from the Comptroller, a P 114
receiver may be appointed to close up the business of the
association, according to the provisions o f the fiftieth secon o the national-currency act.
ec .. 2. That section fiftv-seven o f said act be amended
N° aU ?ch'
bv addin™ ±1
m
ent, injunc,
thereto the follow ing: “ And provided further , Don e tc., to isJ hat nn
i
. . .
.
/
'
’ sue before final
attachment, injunction, or execution shall be is- j u d g m e n t in
to 1 st such association, or its property, before final Jbid1
15712°-—io----- 26

rp j







NATIONAL MONETARY COMMISSION.

376

judgment in any such suit, action, or proceeding in any
State, county, or municipal court.”
tionnr?rnotnt o
a
tain

S ec.

That all banks not organized, and transacting

S mpanfes business under the national-currency act, and all persons,
co b

ors0rr > ev?sed comPanies or corporations doing the business of bankers,
e R
statutes, 5243. brokers, or savings institutions, except saving-banks, au­
thorized by Congress to use the word “ national ” as a part
o f their corporate name are prohibited from using the
word “ national ” as a portion o f the name or title of such
usPin ^ s u f
e na

embank, corporation, firm, or partnership; and every such

word.

bank, corporation, or firm, which shall use word “ na­
tional ” as a portion o f their corporate title or partner­
ship name six months after the passage o f this act, shall
be subject to a penalty of fifty dollars for each day there­
after in which such word shall be employed as aforesaid
as part o f such corporate name or title, such penalty to be
recovered by action in any court having jurisdiction,

the Currency to

S

ec

.

That it shall be the duty o f the Comptroller of

the'piateseetcy the Currency to cause to be examined each year the plates,
from w
hich^the djeSj but-pieces, and other material from which the na­
tion is printed,

tional-bank circulation is printed in whole or in part,

certain mate-

and file in his office annually a correct list o f the same;
and such material as shall have been used in the printing

stroyed.

ot the notes ot national banks which are in liquidation,
or have closed business, shall be destroyed under such
regulations as shall be prescribed by the Comptroller of
the Currency, and approved by the Secretary o f the Treas-

Expenses.

u r y ; and the expense o f such examination and destruction
shall be paid out o f any appropriation made by Congress
for the special examination o f national banks and bank
plates.
Approved, March 3, 1873
REVISED STATUTES APPLICABLE TO THE SUBJECT OF
BANKING.

Banks in District of Columbif i n > is?-!
o

.

S ec. 332. The Comptroller o f the Currency, in addi*

.

*

,

^10T t ° the powers conferred upon him by law for the
1
a 43, v.T7, P examination o f national banks, is further authorized,
!
whenever he may deem it useful, to cause examination to
be made into the condition o f any bank in the District of
Columbia organized under act of Congress.

The Comp­

troller, at his discretion, may report to Congress the

LAWS CONCERNING BANKING.

results o f such examination.

377

The expense necessarily

incurred in any such examination shall be paid out of
any appropriation made by Congress for special bank
examinations.
S ec. 333. The Comptroller o f the Currency shall make
an annual report to Congress [at the commencement of
hs session,] exhibiting—
First. A summary o f the state and condition o f every
association from which reports have been received the
preceding year, at the several dates to which such re­
ports refer, with an abstract o f the whole amount o f bank­
ing capital returned by them, of the whole amount o f
their debts and liabilities, the amount of circulating notes
outstanding, and the total amount o f means and resources,
specifying the amount of lawful money held by them at
the times o f their several returns, and such other infor­
mation in relation to such associations as, in his ju d g­
ment, may be useful.
*

*

*

*

(The words in brackets were added by amendment of
February 18, 1875.)
S e c . 380. A ll suits and proceedings arising out of the

C o n d u c t of
suits involving

provisions o f law governing national banking associa- national banks.
Feb. 25, 1863,
mns, in which the United States or any of its officers or c. 58, s. 55, v.

12, p.680. June

•igents shall be parties, shall be conducted by the district 3, 1864, c. 106,
s. 56, v. 13, p.
attorneys of the several districts under the direction and 116. Kennedy
v.
Gibson (8
supervision o f the Solicitor o f the Treasury.
Wall., 498).
S ec . 563. The district courts shall have jurisdiction as Jurisdiction.
Suits against
rollows:
national banks.
June 3, 1864,
c. 106, s. 57, v.

13,

p . 116.

?
sults by or against any association Kennedy v . Gib­
son (8 Wall.,
•S abIlshed under any law providing for national bank- 506) ; Cadle v.
Tracy
(11
a s s o c i a t i o n s within the district for which the court is Blatch., 101).
T

*

S e c . 629. The circuit courts shall have original juris­ Jurisdiction.
Suits against
diction as follow s:
national banks.
*

*

*

*

*

June 3, 1864,
c. 106, s. 57, v.

1 3 , p. 1 1 6 .

I enth. o f all suits by or against any banking asso- Kennedy v. Gib­
son

held ° n ? tabllshed in tlie district for which the court is 506).
nation

^ a n j laW Providing for national banking asso-




(8

Wall.,

#?■!
jofn^thecompti-oiier

of

th e

Eleventh. O f all suits brought by \ov against] any
banking association established in the district for which

cJioe 3ss18Io the C0lir^
held, under the provisions o f Title “ The
115 Y 3,Feb' nati°nal banks,” to enjoin the Comptroller of the Curii6
v8’i88p
5’3i880’ ren°y^ or any receiver acting under his direction, as pro­
vided by said title.
(See sec. 5237.)
(The words in brackets were stricken out by amend­
ment o f February 18, 1875.)
and^apers^of

S ec . 884. Every certificate, assignment, and convey-

ofeth
emcurren- ance executed by the Comptroller o f the Currency, in
c^iune 3 1864 pursuance o f law, and sealed with his seal o f office, shall
131p6’ioo2’ v‘ he 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.

xYn impression of such seal

directly on the paper shall be as valid as if made on wax
or wafer.
S e c . 885. Copies o f the organization certificate of
“ junea bi864 any national banking association, duly certified by the
i

certmcutesti0of

lb X 6ioi 6’ v‘ Comptroller o f the Currency, and authenticated by his
p
seal o f office, shall be evidence in all courts and places
within the jurisdiction o f the United States o f the exist­
ence of the association, and o f every matter which could
be proved by the production of the original certificate.
(See section 5135.)
wordsn“ t>ank°”

S e c . 8407. Every incorporated or other bank, and every

“ j^ e so 1864 Persorb firm, or company having a place of business where
i s 2 5 i

7 J u iy

credhs are opened by the deposit or collection o f money

s3,98 v i418p!or currency, subject to be paid or remitted upon draft,
6,
Hj>- , ^
check, or order, or where money is advanced or loaned on
EquitableTru|tstocks, bonds, bullion, bills of exchange, or promissory
4 1 9 ) ; N orth u p notes, or where stocks, bonds, bullion, bills o f exchange,
S h o o k (1 0
’
,
.
, ,
® ’
b la tch ., 243Kor promissory notes are received tor discount or tor sale,

v.

(ii

Biatch., shall be regarded as a bank or as a banker,

c a p i t a l of
S e c . 3410. The
h a n k s ex p ire d
.
.
or con v erted i n - association which
baM ar 3 186 ”
c. 78, s. ’ 14 , v!
J u ly 13, 1866 ,
1 8 4 , s. 9,
v. 14, p.
146
C ir c u la t io n
w h en ex em p ted
fro m tax.
c.

b is,




capital o f any State bank or banking
,

i n

has ceased or snail cease to exist, or

wbi°h has been or shall be converted into a national
bank, shall be assumed to be the capital as it existed immediately before such bank ceased to exist or was conJ
verted as aforesaid.
S ec . 3411. Whenever the outstanding circulation
.

.

of

any bank, association, corporation, company, or persoq
is reduced to an amount not exceeding five per centum of

LAWS CONCERNING BANKING.

379

the chartered or declared capital existing at the time the
same was issued, said circulation shall be free from taxa­
tion; and whenever any bank which has ceased to issue
notes for circulation deposits in the Treasury o f the
United States, in law ful money, the amount o f its out­
standing circulation, to be redeemed at par, under such
regulations as the Secretary o f the Treasury shall pre­
scribe, it shall be exempt from any tax upon such circula­
tion.
S e c . 3 4 1 2 . E very national banking association, State

Tax on notes

bank, or State banking association, shall pay a tax of ten staP
te°banks
per centum on the amount o f notes o f any person, or o f iationfor circu~
any State bank or State banking association, used for skills* °f Feb'
circulation and paid out by them.
S e c . 3 4 1 3 . Every national banking association, State

Tax on notes

hank, or banker, or association, shall pay a tax o f ten per ies,4etc??’ used
centum on the amount o f notes o f any town, city, or mu- f°/&Vi.C Iat)on'
U
nicipal corporation, paid out by them.
S e c . 3 4 1 4 . A true and complete return o f the monthly

M o n th ly r e ­

amount o f circulation, o f deposits, and o f capital, as ?f persons?0
^?3
aforesaid, and o f the monthly amount o f notes o f persons, ect’., paid out. ’
town, city, or municipal corporation, State banks, or

*

State banking associations paid out as aforesaid for the
previous six months, shall be made and rendered in duplicate on the first day o f December and the first dav o f
June, by each o f such banks, associations, corporations,
companies, or persons, with a declaration annexed thereto,
under the oath of such person, or of the president or
cashier o f such banjr, association, corporation, or com­
pany, in such form and manner as may be prescribed by
the Commissioner o f Internal Revenue, that the same con­
tains a true and faithful statement o f the amounts sub­
ject to tax, as aforesaid; and one copy shall be trans­
mitted to the collector o f the district in which any such
a^k, association, corporation, or company is situated,
oi in which such person has his place o f business, and one
cop} to the Commissioner o f Internal Revenue.
S e c . 3 4 1 5 . In default o f the returns provided in the
in def aul t
1 receding section, the amount o f circulation, deposit.Com m
issioned
capital, and notes o f persons, town, city, and m unicipalt0 estimate’

corporations, State banks, and State banking associa­
tions paid out, as aforesaid, shall be estimated by the
ommissioner o f Internal Revenue, upon the best in for­
ma ion he can obtain. A n d for any refusal or neglect




to make return and payment, any such bank, association,
corporation, company, or person so in default shall pay a
penalty o f two hundred dollars, besides the additional
penalty and forfeitures provided in other cases.
National bank
t o make r e ­
turn and pay­
ment of tax of
converted State
bank.

S e c . 3416. W henever any State bank or banking asso­

ciation has been converted into a national banking asso­
ciation, and such national banking association has as­
sumed the liabilities of such State bank or banking asso­
ciation, including the redemption o f its bills, by any
agreement or understanding whatever with the represen­
tatives o f 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 o f the capital before such conversion o f such
State bank or banking association.

Provisions for
tax on deposits,
c a p i t a l , and
circulation, not
to a p p l y to
national banks.
Mill

S e c . 3417. The provisions o f this chapter, relating to

the tax on the deposits, capital, and circulation o f banks,
and to their returns, except as contained in sections
thirty-four hundred and ten, thirty-four hundred and
eleven, thirty-four hundred and twelve, thirty-four hun­

Iff11i
1!

dred and thirteen, and thirty-four hundred and sixteen,
and such parts o f sections thirty-four hundred and four­
teen and thirty-four hundred and fifteen as relate to the
tax o f ten per centum on certain notes, shall not apply to
associations which are taxed under and by virtue o f Title
“ N a t io n a l B a n k s .”
N a t i o n a lbank notes rec e i v a b l e for
debts of United
States, except.
June 3, 1864,
ch. 106, sec. 23,
vol. 13, p. 106.

S e c . 3475. The notes o f national banks shall be re­

ceived at par for all debts and demands owing by the
United States to any person within the United States,
except interest on the public debt, or in redemption o f
the national currency.
(See sec. 5182.)

Interest bear­
S e c . 3590. Treasury notes issued under the authority
ing notes.
Mar. 3, 1863, o f the acts o f March three, eighteen hundred and sixtych. 73, sec. 2,
vol. 12, p. 710. three, chapter seventy-three, and June thirty, eighteen
June 30,1864,
ch. 172, sec. 2, hundred and sixty-four, chapter one hundred and sev­
vol. 13, p. 218.




enty-two, shall be legal tender to the same extent as

United States notes, for their face value, excluding inter­
est : Provided , That Treasury notes issued under the act
last named shall not be a legal tender in payment or re­
demption o f any notes issued by any bank, banking asso­
ciation, or banker, calculated and intended to circulate
as money.

LAWS CONCERNING BANKING.
•

381

S ec . 5133. Associations for carrying on the business o f
#

o

Formation of

national bank-

banking under this Title may be formed by any number j?sna sso cia o f natural persons, not less in any case than five.

They c

1864-

shall enter into articles o f association, which shall specify 13> p- Too-

.

in general terms the object for which the association is£-.,343>v- 18«pformed, and may contain any other provisions, not incon­
sistent with law, which the association may see fit to
adopt for the regulation o f its business and the conduct
° f its affairs.

These articles shall be signed by the per­

sons uniting to form the association, and a copy o f them
shall be forwarded to the Comptroller o f the Currency,
to be filed and preserved in his office.
(See section 324.)
(The act o f June 20, 1874 (c. 343, v. 18, p. 1 2 3 ), de­
clares “ that the act entitled ‘A n act to provide a national
currency secured by a pledge o f United States bonds and
to provide for the circulation and redemption thereof,’
approved June third, eighteen hundred and sixty-four,
shall hereafter be known as ‘ the national-bank act.’ ” )
S e c . 5134. The persons uniting to form such an associa- Requisites of
tion shall, under their hands, make an organization cer- certificate.1° n

tificate, which shall specifically state:

c./lots! s’. 6
86v!

f irst. The name assumed by such association; which
ruune shall be subject to the approval o f the Comptroller
° f the Currency.

’ P
‘

Second. The place where its operations o f discount and
deposit are to be carried on, designating the State, Territory, or district, and the particular county and city,
town, or village.
Third. The amount o f capital stock and the number of
shares into which the same is to be divided.
fo u rth . The names and places of residence o f the
shareholders and the number of shares held by each of
them.
f ifth. The fact that the certificate is made to enable
such persons to avail themselves o f the advantages o f this
Title.
S ec. 5135. The organization certificate shall be ac-

How certm-

tnovledged before a judge o f some court o f record, o r a eknowiedged
notary public; and shall be, together with the acknow l-aD f led
d
e £ ement thereof, authenticated by the seal o f such court,

0r notary,

transmitted to the Comptroller o f the Curitncy^ who shall record and carefully preserve the same in
his office. (See sec. 885.)




NATIONAL MONETARY COMMISSION.

382
corporate

S

ec

.

o lo G .

Upon duly making and filing articles of

ci 2^Abb u s associ‘dion and an organization certificate, the associaoani (94Sxj s ' ^ on
become, as from the date o f the execution of
second ^N
ationorganization certificate, a body corporate, and as such,
at B an k, chi- a n c [ in t } i e name designated in the organization certificate,
26)•




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 of 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. T o make contracts.
Fourth. T o sue and be sued, complain and defend, in
any court o f law and equity, as fully as natural per­
sons.
F ifth . T o elect or appoint directors, and by its board of
directors to appoint a president, vice-president, cashier,
and other officers, define their duties, require bonds of
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 which
its stock shall be transferred, its directors elected or ap­
pointed, its officers appointed, its property transferred,
its general business conducted, and the privileges granted
to it by law exercised and enjoyed.
Seventh. T o exercise by its board o f directors, or duly
authorized officers or agents, subject to law, all such
incidental powers as shall be necessary to carry on the
business o f banking; by

discounting and negotiating

promissory notes, drafts, bills o f exchange, and other
evidences o f debt; by receiving deposits; bv buying and
selling exchange, coin, and bullion; by loaning money on
personal security; and by obtaining, issuing, and circu­
lating 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 Com p­
troller o f the Currency to Commence the business of
banking.

LAWS CONCERNING BANKING.

383

S ec. 5137. A national banking association may pur- reai^ropertyld
chase, hold, and convey real estate for the following pur- J«°| 3,eJ8jj|
*
poses, and for no others:
voi. 13,’ p. 107. ’
T> j. o i
7Kansas ValRirst. feuch as shall be necessary for its im m ediately B a n k ?
accommodation in the transaction of its business.

371).

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
of debts previously contracted in the course o f its dealings.
Fourth. Such as it shall purchase at sales under judge­
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 of
any real estate purchased to secure any debts due to it,
for a longer period than five years.
S ec . 5138. No association shall be organized under this

rrv, 1

.

.

0

Requisite

amount of capi-

1 itie with a less capital than one hundred thousand dol- tai.
lars; except that banks with a capital of not less than
fifty thousand dollars m ay, with the approval o f the Sec­
retary o f the Treasury, be organized in any place the pop­
ulation o f which does not exceed six thousand inhabit­
ants.

No association shall be organized in a city the pop­

ulation o f which exceeds fifty thousand persons with a
less capital than two hundred thousand dollars.
l

S ec. 5139. The capital stock of each association shall 4s ,liaf e s
t
1• .

t

1

stock and trans-

oe divided into shares o f one hundred dollars each, and b e fei^ u ^
deemed personal property, and transferable on the books T e Assessors
nf in
. . .
1
..
(3 Wall., 573'.
U1 ine association ip such manner as may be prescribed in
the by-laws or articles or association.

Every person be­

coming a shareholder by such transfer shall, in propor­
tion to his shares, succeed to all the rights and liabilities
of 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 asso­
ciation shall be impaired.
S ec . 5140. A t least fifty per centum o f the c a p i t a l o f Ptke
stock o f every association shall be paid in before it shall mustalbe ^ade
be authorized to commence business; and the remainder and p e< rov J
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
e end o f each succeeding month from the time it shall
e authorized by the Comptroller o f the Currency to com­
mence business; and the payment o f each installment




shall be certified to the Comptroller, under oath, by the
president or cashier of the association.
if shareholder

S e c . *>141. Whenever any shareholder, or his assignee,

fails to pay in- fails to pay any installment on the stock when the same is
s taiiixicnxs.
#
#
,
t_

required by the preceding section to be paid, the directors
of such association may sell the stock o f such delinquent
shareholder at public auction, having given three weeks’
previous notice thereof in a newspaper published and of
general circulation in the city or county where the asso­
ciation 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 of advertisement and sale;

and the

excess, if any, shall be paid to the delinquent share­
holder. I f no bidder can be found who will pay for such
stock the amount due thereon to the association, and the
cost of advertisement and iale, 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 cancelled 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 of which a

receiver may be appointed, according to the provisions of
section fifty-tw o hundred and thirty-four, to close up the
business o f the association.
cajfuustock0f

S ec.
association formed under this Title
may, by its articles o f association, provide for an increase
o f its capital from time to time, as may be deemed expedi­
ent, subject to the limitations of this Title.
But the
maximum of such increase to be provided in the articles
of association shall be determined by the Comptroller of
the Currency; and no increase of capital shall be valid
until the w hole amount o f such increase is paid in, and
r
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 ap­
proval thereof, and that it has been duly paid in as part
o f the capital o f such association.

capnaiCtock°f
s
t




S ec. 5143. A n y association formed under this Title
m ay, by the vote o f shareholders owning two-thirds of its

-

LAWS CONCERNING BANKING.

385

capital stock, reduce its capital to any sum not below
the amount required by this Title to authorize the forma­
tion of asociations; but no such reduction shall be allow­
able which will reduce the capital of the association be­
low the amount required for its outstanding circulation,
nor shall any such reduction be made until the amount of
the proposed reduction has been reported to the Comp­
troller of the Currency and his approval thereof obtained.
S ec . 5144. In all elections of directors, and in decid- Right of
ing all questions at meetings of shareholders, each share- vote,
holder shall be entitled to one vote on each share of stock
held by him. Shareholders may vote by proxies duly au­
thorized in writing; but no officer, clerk, teller, or book­
keeper of such association shall act as proxy; and no
shareholder whose liability is past due and unpaid shall
be allowed to vote.
S e c . 5145. The affairs of each association shall be^.E ?ction of
1
directors.
managed by not less than five directors, who shall be JVn«3, 186o’
elected by the shareholders at a meeting to be held at any
v 13 , p.
.
time before the association is authorized by the Comp­
troller of the Currency to commence the business of bankmg; and afterward at meetings to be held on such day in
January of each year as is specified therefor in the arti­
cles of association. The directors shall hold office for one
year, and until their successors are elected and have
qualified.
S e c . 514G. Every director must, during his whole term qindications
of service, be a citizen of the United States, and at least of d ire cto rs,
three-fourths of the directors must have resided in the
State, Territory, or District in which the association is
located, for at least one year immediately preceding their
election, and must be residents therein during their con­
tinuance in office. Every director must own, in his own
nght, at least ten shares of the capital stock of the asso­
ciation of which he is a director. Any director who
r
ceases to be the owner of ten shares of the stock, or who
becomes in any other manner disqualified, shall thereby
vacate his place.
S e c . 5147. Each director, when appointed or elected,( u
Oath
shall take an oath that he will, so far as the duty de- &rectors,
voices on him, diligently and honestly administer the
affairs of such association, and will not knowingly vioate, or willingly permit to be violated, any of the pro­
visions of this Title, and that he is the owner in good




NATIONAL MONETARY COMMISSION.

386

faith, and in his own right, of the number o f shares of
stock required by this Title, subscribed my him, or stand­
ing in his name on the books o f the association, and that
the same is not hypothecated, or in any way pledged, as
security for any loan or debt.

Such oath, subscribed by

the director making 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 pre­
served in his Office.
S e c . 5148. A n y vacancy in the board shall be filled by

F illin g
ca n cies.

appointment by the remaining directors, and any director
so appointed shall hold his place until the next election,
w h ere C o defe^n

S e c . 5149. I f , from any cause, an election o f directors is

tion is held o n n o t
th e p rop er d a y.

made at the time appointed, the association shall not
_

v '1

’

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 newspaper pub­
lished nearest thereto.

I f the articles o f association 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 elec­
tion shall be designated by the board o f directors in their
by-laws, or otherwise; or if the directors fail to fix the
day, shareholders representing two-thirds of the shares
may do so.
p r e s id e n t

of

S e c . 5150. One o f the directors, to be chosen by the

3 o fm 6 J i56!k°ar(l? shall be the president o f the board.
cU
S. 2, v. 19, p. 63.

individual

S e c . 5151. The shareholders o f every national-banking

shareholders0 association shall be held individually responsible, equally
c.'ios,
13




p

s . ' 12 ,
1 02

v! and ratably, and not one for another, for all contracts,

J7

.

.

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 such shares;
except that shareholders o f any banking association now
existing under State laws, having not less than five m il­
lions 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 of
twenty per centum shall be kept undiminished, and be in
addition to the surplus provided for in this T it le ; and if
at any time there is a deficiency in such surplus o f twenty
per centum, such association shall not pay any dividends

LAWS CONCERNING BANKING.

387

to its shareholders until the deficiency is made g o o d ; and
in case o f such deficiency, the Comptroller o f the Cur­
rency may compel the association to close its business and
wind up its affairs under the provisions o f Chapter four
o f this Title.
S e c . 5152. Persons holding stock as executors, admin-

E x e cu to rs,

istrators, guardians, or trustees, shall not be personally nots personally
subject to any liabilities as stockholders; but the estatesliableand funds in their hands shall be liable in like manner
and to the same extent as the testator, intestate, ward, or
person interested in such trust-funds would be, i f living
and competent to act and hold the stock in his own name.
S e c . 5153. A ll

national banking associations, desig

Duties a n d

Bated for that purpose by the Secretary o f the T reasury, asVocSafions
shall be depositaries o f public money, except receipts nated" asdeSde-’
from customs, under such regulations as may be pre- public m
oneys^
scribed by the Secretary; and they may also be em ployedselJ45,e v!8i i ’
,
as financial agents o f the Government; and they sh a llth‘ 106, p‘ 113'
perform all such reasonable duties, as depositaries o f pub­
lic moneys and financial agents o f the Government, as
may be required o f them.

The Secretary o f the Treas­

ury shall require the associations thus designated to give
satisfactory 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
f ° r the faithful performance of their duties as financial
agents o f the Government. A n d every association so
designated as receiver or depositary of the public money
‘duill take and receive at par all of the national currency
1 . , by whatever association issued, which have been
paid into the Government for internal revenue, or for
loans or stocks.
(See Secs. 3639-3649, 5489.)
S e c . 5154. A n y bank incorporated by special law, or

organization

aily banking institution organized under a general law o f aV^natiolfa!
any State, may become a national association under this chfuons. Jss°
die by the name prescribed in its organization certifi-p.
<ate; and in such case the articles of association and the
organization certificate may be executed by a m ajority of
1 ie directors o f the bank or banking institution; and the
certificate shall declare that the owners o f two thirds o f
t e capital stock have authorized the directors to make
sue l certificate, and to change and convert the bank or
an a n g institution into a national association.

A ma­

jority of the directors, after executing the articles o f
sociation and organization certificate, shall have power




s' 44,

NATIONAL MONETARY COMMISSION.

388

to execute all other papers, and to do whatever may be
required to make its organization perfect and complete
as a national association.

The shares of 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 pro­
visions o f this chapter; and any State bank which is a
stockholder in any other bank, by authority of State laws,
may continue to hold its stock, although either bank, or
both, may be organized under and have accepted the pro­
visions o f this Title.

W h en the Comptroller o f the Cur­

rency has given to such association a certificate, under his
hand and official seal, that the provisions o f this Title
have been complied with, and that it is authorized to com­
mence the business o f banking, the association shall have
the same powers and privileges, and shall be subject to
the same duties, responsibilities, and rules, in all respects,
as are prescribed for other associations originally organ­
ized as national banking associations, and shall be held
and regarded as such an association.

B u t no such asso­

ciation shall have a less capital than the amount pre­
state

scribed for associations organized under this Title.
S ec . 5155. I t shall be lawful for any bank or bank­

ban ks
h a v in g b r a n c h - .

es.

„

.

.

^

m g association organized under State laws, and having

i 3 78,4847, v- branches, the capital being joint and assigned to and
used by the mother-bank and branches in definite pro­
portions, to become a national banking association in
conformity 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 redeem­
able at the mother-bank, and each branch, to be regulated
by the amount o f capital assigned to and used by each.
Reservation
S ec . 5156. Nothing in this T itle shall affect anv apo f rights o f .
°
J
1

associations or-pointments made, acts done, or proceedings had or comga n ized u n d e r A
a ct o f 1863
menced

.

.

r

.

prior to the third day o f June, eighteen hundred

v i3 6, ji g 2 and sixty-tour, m or toward the organization of any na­
>
tional 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,
liabilities, and restrictions imposed by this Title, notwith-

LAWS CONCERNING BANKING.

389

standing all the steps prescribed by this Title for the
organization o f associations were not pursued, if such
associations were duly organized under that act.

P

S ec . 5157. The provisions o f chapters two, three, and .what

.c
i o u r o r t in s

•

asso-

rri'xT
i • t
.
,
.
.
c i a t i o n s are
l i t l e , w h ic h a r e e x p r e s s e d w it h o u t r e s t r ic t iv e g o v e r n e d by

words, as applying to national banking associations,” or and 4 of this
to “ associations,” apply to all associations organized
to carry on the business o f banking under any act of
Congress.
S ec . 5158. The term “ United States bonds,” as used b0n^chJnedes
throughout this chapter, shall be construed to mean regis­
tered bonds o f the United States.
,,

S ec . 5159. Every association, after having complied
. . .

^

Tinted states

bon d s to be de-

^ itn the provisions or this T itle, preliminary to the com- posited before
com menc i n g

mencement o f the banking business, and before it shall business,
be authorized to commence banking business under this
Title, shall transfer and deliver to the Treasurer o f the
United States any United States registered bonds, bear­
ing interest, to an amount not less than thirty thousand
dollars and not less than one-third o f the capital stock
paid in.

Such bonds shall be received by the Treasurer

upon deposit, and shall be by him safely kept in his office,
until they shall be otherwise disposed of, in pursuance of
the provisions o f this Title.
S e c . 5160. The deposits of bonds made by each associa­

tion shall be increased as its capital may be paid up or in­
creased, so that every association shall at all times have

B on d s to be
increased upon
i n c r e a s e of
ca p ita l.

°u deposit with the Treasurer registered United States
bonds to the amount of at least one-third of its capital
stock actually paid in.

A n d any association that may de-

S .re to reduce its capital or to close up its business and
1
dissolve its organization, may take up its bonds upon re­

M a y b e d i­
m in ish ed upon
r e d u c t i o n of
ca p ita l.

turning to the Comptroller its circulating notes in the
Proportion hereinafter required, or may take up any ex­
cess of bonds beyond one-third o f its capital stock, and
upon which no circulating notes have been delivered.
S ec . 5161. T o

facilitate a compliance with the two

preceding sections, the Secretary o f the Treasury is au­

E x ch a n g e o f
cou p on fo r re g ­
istered bonds.

thorized to receive from any association, and cancel, any
Cnited States coupon bonds, and to issue in lieu thereof
legistered bonds o f like amount, bearing a like rate o f in­
terest, and having the same time to run.
S ec . 5162. A ll transfers o f United States bonds, made
w any association under the provisions o f this Title, shall
6 made to




Treasurer o f the United States in trust for

M a n n e r of
m ak in g tra n s ­
fe rs o f bonds.
A c t Ju n e 3,
1864, sec. 19.




NATIONAL MONETARY COMMISSION.

390

the association with a memorandum written or printed on
each bond, and signed by the 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 Cur­
rency, or by a clerk appointed 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 Treas­
urer shall be deemed valid unless countersigned by the
Registry
transfers.

oi

Comptroller o f the Currency.
S e c . 5163. The Comptroller of the Currency shall keep
.

.

1

J

1

in his Office a book in which he shall cause to be entered,
immediately upon countersigning it, every transfer or
assignment by the Treasurer, of any bonds belonging to
a national banking association, presented for his signa­
ture.

H e shall state in such entry the name o f the asso­

ciation 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.
N o t i c e of
transfer to be
given

t ? n !isso-

ested.

S ec.

5164. The

Comptroller o f the Currency shall,
-■
*

^

immediately upon countersigning and entering any transfer or assignment by the Treasurer, o f any bonds belong­
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.

S ec.

5165. The Comptroller o f the Currency shall have
.

*
*

at all times, during office-hours, access to the books o f
the Treasurer o f the United States for the purpose o f
ascertaining the correctness o f any transfer or assign­
ment 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
ascertain the correctness o f the entries in the same; and
the Comptroller shall also at all times have access to the
bonds on deposit with the Treasurer to ascertain their
amount and condition.

Annual e x -

S e c . 5166. Every association having bonds deposited in

bonds by asso-th e

office o f th e Treasurer o f t h e United States shall,

once or oftener in each fiscal year, examine and compare
the bonds pledged by the association with the books of
the Comptroller o f the Currency and with the accounts of

LAWS CONCERNING BANKING.

391

the association, and, if 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 purpose; and his 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.
Bonds to be
S e c . 5167. The bonds transferred to and deposited with
held to secure
fhe Treasurer o f the United States, by any association, circulation.

for the security o f its circulating notes, shall be held
exclusively for that purpose, until such notes are re­
deemed, except as provided in this Title. The Comptrol­ Interest o n
bonds, how col­
ler o f the Currency shall give to any such association lected.
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 inoper­
ative whenever such association fails to redeem its circu­
i t i n g notes.

Whenever the market or cash value o f any

If bonds de­
preciate, d e ­

onds thus deposited with the Treasurer is reduced below posit to be in­
creased.
the amount o f the circulation issued for the same, the
Comptroller may demand and receive the amount o f such
depreciation in other United States bonds at cash value,
or in money, fro m 'th e association, to be deposited with
1 Treasurer as long as such depreciation continues.
G
nd the Comptroller, upon the terms prescribed by the
, eci'etary o f the Treasurer, may permit an exchange to

Exchange or
return
of
bonds.

j)e made ° 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,
1 he is o f opinion that such an exchange can be made
luthout prejudice to the United States;

and he may

meet the return o f any bonds to the association which
1ansferred the same, in sums o f not less than one thou­
sand dollars, upon the surrender to him and the cancellalon

o f (l proportionate amount o f such circulating notes:
rovided, T hat the remaining bonds which shall have Limitation on

withdrawal of

ecn ransferred by the association offering to surrender bonds.
See act o f
ciicu dting notes are equal to the amount required for the June 2 0 , 1 8 7 4 ,
sec. 4.
15712°—io-----27




NATIONAL MONETARY COMMISSION.

392

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
that the market or cash value of the remaining bonds is
not below the amount required for the circulation issued
^com ptroller

for the same.
S e c . 5168. Whenever a certificate is transmitted to the

a s s o c i a t i o n s Comptroller o f the Currencv, as provided in this Title,

can commence
business.

A

. .

:

.

.

.n

and the association transmitting the same notifies the
Comptroller that at least fifty per centum o f its capital
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 of banking, the Com p­
troller shall examine into the condition o f such associa­
tion, ascertain especially the amount of money paid in
on account o f its capital, the name and place o f residence
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 gen­
erally whether such association has complied with all the
provisions o f this T itle 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 majority of the directors,
and by the president or cashier o f the association, a state­
ment o f all the facts necessary to enable the Comptroller
to determine whether the association is law fully entitled
to commence the business o f banking.

authority6 to

S ec . ^169. I f , upon a careful examination o f the facts

banking t o b e s o
issued.

^ 0

reported, and o f any other facts which may come to
knowledge o f the Comptroller, whether by means o f

a special commission appointed by him for the purpose
.
c

J o6 V 8? !’
iu

inquiring into the condition o f such association, or

102 v 3, pp’ otherwise, it appears that such association is law fully en­
io4.
titled to commence the business of banking, the Com p­




troller shall give to such association a certificate, under
his hand and official seal, that such association has com­
plied with all the provisions required to be complied with
before commencing the business of banking, and that
such association is authorized to commence such business.
But the Comptroller may withhold from an association
his certificate authorizing the commencement o f business,

LAWS CONCERNING BANKING.

393

hene\ei he has reason to suppose that the shareholders
nave formed the same for any other than the legitimate
objects contemplated by this Title.
S e c . 5170. The association shall cause the certificate Publicat i o n
of certificate.
issued under the preceding section to be published in some
June 3,1864,

s. 18,
newspaper printed in the city or county where the asso- c. 106, 104. v.
13, p.
m 1011 1S located, for at least sixty days next after the
issuing thereof; or, i f no newspaper is published in such

o1 } 01 county, then in the newspaper published nearest
thereto.
Delivery of
S e c . 5171. Upon a deposit o f bonds as prescribed by
circu 1a t i n g
sections fifty-one hundred and fifty-nine and fifty-one notes to asso­

undred and sixty, the association making the same shall
e entitled to receive from the Comptroller o f the Cur-

ciations.
See act of
Mar. 3, 1865.

ency circulating notes o f different denominations, in
’ legistered and countersigned as hereinafter pro­
v e d , equal in amount to ninety per centum o f the curent market-vahie o f the United States bonds so trans» ^
®

and delivered, but not exceeding ninety per centum
e amount o f the bonds at the par value thereof, i f
‘iiin g interest at a rate not less than five per centum

Per annum: Provided, T hat the amount o f circulating

Ratio to capi­
tal of circulat­

notes to be furnished to each association shall be in pro­ ing notes i s sued.
portion to its paid-up capital, as follows, and no m ore:
P irst. T o each association whose capital does not exceed
e lundred thousand dollars, ninety per centum o f such
eapital.
} Sec°n d. To each association whose capital exceeds five
«

thousand dollars, but does not exceed one million
ollars, eighty per centum o f such capital.

m ill'lr<^"

eac^ association whose capital exceeds one

of q
10n
doPars’ bu^ does not exceed three million [s]
collars, seventy-five per centum o f such capital.
. ou ldL T o each association whose capital exceeds three
ions o f dollars, sixty per centum o f such capital.
Form, d e jf ,
In order to furnish suitable notes for circuno mina tions,
a ion, the Comptroller o f the Currency shall, under the and printing of
c ir c u l a t i n g

irection o f the Secretary o f the Treasury,, cause plates notes.

June 3, 1864,

. dles to be engraved, in the best manner to guard sec. 22.
shatTn

counlerfeiting and fraudulent alterations, and

tit
/ XVe Printed therefrom, and numbered, such quano f ^ ° <lr',~
: mlating notes, in blank, o f the denominations
dnllQ16
ar’ two dollars, three dollars, five dollars, ten
rS, wenty dollars, fifty dollars, one hundred dollars.




394

NATIONAL MONETAEY COMMISSION.

five hundred dollars, and one thousand dollars, as may
be required to supply the associations entitled 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 Register, and
by the imprint o f the seal o f the T reasu ry; and shall also
express upon their face the promise o f the association
receiving the same to pay on demand, attested by the
signatures o f 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 of the Treas­
ury shall, by regulation, direct.
piates^nd dies

S ec.

(See secs. 5415, 5434.)

^173. The plates and special dies to be procured

Bmeau611868°f ^ the Comptroller o f the Currency for the printing of
such circulating notes shall remain under his control and
direction, and the expenses necessarily incurred in exe­
cuting the laws respecting the procuring o f such notes,
and all other expenses o f the Bureau o f the Currency,
shall be paid out o f the proceeds o f the taxes or duties
assessed and collected on the circulation o f national bank­
ing associations under this Title.
Annual e x S e c . 5174. The Comptroller o f the Currency shall cause

amination

of

.

x

*\

,

p la te s, dies, to be examined, each year, the plates, dies, {but pieces)
c Mar. 3,1873, (bed pieces), and other material from which the national
1 Feb I73i 877
7
circulation is printed, in whole or in part, and file
c. |9,’ v. 19, p in his Office annually a correct list o f 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 regula­
tions as shall be prescribed by the Comptroller o f the
Currency and approved by the Secretary o f the Treasury.
The expenses o f any such examination or destruction
shall be paid out o f any appropriation made by Con­
gress for the special examination o f national banks and
bank-note plates.
(T he act o f February 27, 1877, inserts “ bed pieces ” for
iss u e o f n otes

under $5, lim-

ited.

“ but pieces/’ )
S e c . 5175. N ot more than one-sixth part o f the notes
.

.

.

.

.

.

.

furnished to any association shall be ot a less denomina­
tion than five dollars.

A fte r specie payments are re­

sumed no association shall be furnished with notes o f a
less denomination than five dollars.

395

LAWS CONCERNING BANKING.
S ec.

5176. No banking association organized subse- Circulation of

quent (o the twelfth day o f July, eighteen hundred and *1™.j
seventy, shall have a circulation in excess o f five hundred
thousand dollars.

’

. ®ec’ 5177. ( The aggregate amount of circulating notes
Aggregate
issued under the act of Fehruary twenty-five, eighteen culating °notes.
hundred and sixty-three, and under the act of June three, j/ioe? f ’ lffv!
eighteen hundred and sixty-four, and under section one
sf’6 2 ,
° f the act of July twelve, eighteen hundred and seventy, Pj|h!j2- i87o,
und under this 1 itle, shall not exceed three hundred and 16>p- ’251fifty-four millions of dollars.)
The limitation upon the circulation o f national bank
notes was removed by the statute o f January 14, 1875,
c- 15, s. 3, v. 18, p. 296.
June 20, 1874, c. 343, v. 18, p. 123.
14> 1875, c. 15, s. 3, v. 18, p. 296.

Repealed by Jan.

S ec. 5178. One hundred and fifty millions of dollars

A p p o r t io n -

o l the entire amount o f circulating notes authorized to Sting°notes.cu'
e issued shall be apportioned to associations in the 3 Mar., 1865.
fates, in the Territories, and in the District o f Columbia, 12 July, 1870.
according to representative population.
One hundred
and fifty millions shall be apportioned by the Secretary

14 Jan., 1875.

o the Treasury among associations formed in the several
States, in the Territories, and in the District of Columua, having due regard to the existing banking capital,
resources, and business of such States, Territories, and
District.

The remaining fifty-fou r millions shall be

apportioned among associations in States and Territories
laving, under the apportionments above prescribed, less
urn their fu ll proportion o f the aggregate amount o f
Uocs authorized, which made due application for circu­
i t i n g notes prior to the twelfth day o f July, eighteen
uundred and seventy-one.

A n y remainder o f such fifty-

1 1 millions shall be issued to banking associations
1
applying for circulating notes in other States or Terri()iies having less than their proportion.
S e C 5179. In order to secure a more equitable distri>
.

E q u a liz in g

1 l o n « f the national banking currency, there may be*^? o f ' bcircu1

|^iied circulating notes to banking associations organized latm'" U
°tes'
)U k tates ancl Territories having less than their propor- See act 01
jon, and the amount o f circulation herein authorized J n 14’ 18<J'
* a , under the direction o f the Secretary o f the Treas­
'
ury, as it may be required for this purpose, be withdrawn,
•

< rein Provided, from banking associations organized
f
a es having more than their proportion, but the




■* •
396

N A T IO N A L

M ONETARY

C O M M IS S IO N .

amount so withdrawn shall not exceed twenty-five million
junee‘>aci 87/ dollars: Provided, That no circulation shall be with­
o
drawn under the provisions o f this section until after
the fifty-fou r millions granted in the first section o f the
act o f July twelfth, eighteen hundred and seventy, shall
have been taken up.
Method
procedure

of
In

S e c . 5180. The Comptroller o f the Currency shall, under
A

<
>

withdrawingthe direction o f the Secretary o f the Treasury, make a
excess of circuiatiomct q f statement

.

showung the amount o f circulation in each State
and Territory, and the amount necessary fo be withdrawn

Jan. 14, 1875.

from each association, and shall forthwith make a requisi­
tion for such amount upon such associations, commencing
with those having a circulation exceeding one million o f
dollars, in States having an excess o f circulation, and with­
drawing their circulation in excess o f one million of dol­
lars, and then proceeding proportionately with other asso­
ciations having a circulation exceeding three hundred
thousand dollars, in States having the largest excess o f
circulation, and reducing the circulation of such associa­
tions in States having the greatest proportion in excess,
leaving undisturbed the associations in States having a
smaller proportion, until those in greater excess have been
reduced to the same grade, and continuing thus to make
such reductions until the fu ll amount o f twenty-five
millions has been withdrawn; and the circulation so
withdrawn shall be distributed among the States and T er­
ritories having less than their proportion, so as to equalize
sale of bonds the same.
upon failure of
association t o amount o f
return notes.

U pon failure o f any association to return the
.

r

.

.

J

.

circulating notes so required, within one year,
y

1

.

.

.

.

the Comptroller shall sell at public auction, having given
twenty days’ notice thereof in one daily newspaper
printed in W ashington and one in New Y o rk City, an
amount of the bonds deposited by that association as se­
curity for its circulation, equal to the circulation required
to be withdrawn from the association and not returned in
compliance with such requisition; and he shall, with the
proceeds, redeem so many o f the notes o f such association,
as they come into the Treasury, as will equal the amount
required and not .returned; and shall pay the balance, if
any, to the association.
Removal
from

o

f

state

S e c . 5181. A n y association located in any State having

more than its proportion o f circulation may be removed to

cessln of a circ u - any
having a d e -




State having less than its proportion o f circulation,
under such rules and regulations as the Comptroller o f

the Currency, with the approval o f the Secretary o f the

LAW S

C O N C E R N IN G

B A N K IN G .

3 9 7

Treasury, shall prescribe: Provided , T hat the amount of
the issue o f said banks shall not be deducted from the
issue of fifty-fou r millions mentioned in section five thou­
sand one hundred and seventy-eight.

S . 5182.

ec
A fte r any association receiving circulating Circulating
notes under this title has caused its promise to pay such m a y S'be 'Issu e d
notes on demand to be signed by the president or vice- b 3 june^isfM,
y
president and cashier thereof, in such manner as to make sec‘ 23,
them obligatory promissory notes, payable on demand, at
its place o f business, such association may issue and circu­
late the same as money.

A n d the same shall be received

FoI w£at de-

at par m all parts o f the United States in payment o f receivedtaxes, 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 demands owing by the United
States to individuals, corporations, and associations within
the United States, except interest on the public debt, and
in redemption o f the national currency.
S e c . 5183. No national banking association shall issue n

post-notes or any other notes to circulate as money than itedsuch as are authorized by the provisions o f this Title.
S e c . 5184. I t shall be the duty of the Comptroller o f a n d t^ | c “ |
Desre i1

tlie Currency to receive worn-out or mutilated c ir c u la t-^ u Y iT a u d
m g notes issued by any banking association, and also, on notesdue proof o f the destruction o f any such circulating 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, iji accordance with such regulations as
may be established by the Comptroller, as well as all cir­
culating 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 Secretary o f the Ju
3 ac
1|74of
Treasury, one by the Comptroller o f the Currency, one une“ ,18‘ 4'
} the Treasurer o f the United States, and one by the
association, under such regulations as the Secretary o f the
reasury may prescribe. A certificate o f such burning,
signed by the parties so appointed, shall be made in the
ooks o f the Comptroller, and a duplicate thereof forW aF Ie(f to the association whose notes are thus canceled.
C
fe>E 5185. Associations may be organized in the manc.

Organization

net prescribed by this Title for the purpose o f issuingf°r i s s ui ng
notes payable in g o ld ; and upon the deposit o f a n y "
nited States bonds bearing interest payable in gold with

r




398

N A T IO N A L

M ONETARY

C O M M IS S IO N .

the Treasurer o f the United States, in t lie manner pre­
scribed fo r other associations, it shall be law ful for the
D enom i n a tio n s o f c ir c u ­
la t in g n otes,
a n d r a tio o f, to
b o n d s d ep o sit­
ed.

Comptroller o f the Currency to issue to the association
making the deposit circulating notes of different denomi­
nations, but none o f them of 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 of the United

Maximum cir­ States, and shall be so redeemable. B u t no such associa­
culation.
See act of
Jan. 19, 1875. tion shall have a circulation o f more than one million

of dollars.
R eserv e r e qu ired on c i r ­
cu la tio n o f g old
banks.

S e c . 518G. Every association organized under the pre­

ceding section shall at all times keep on hand not less than
twenty-five per centum o f its outstanding circulation, in
gold or silver coin of the United States; and shall receive

Gold-notes to at par in the payment of debts the gold-notes of every
be received at
par by all gold- other such association which at the time o f such payment
banks.

is redeeming its circulating notes in gold coin of the

United States, and shall be subject to all the provisions of
this T itle : Provided , That, in applying the same to asso­
ciations organized for issuing gold-notes, the terms “ law­
“ Lawful mon­ ful money ” and “ lawful money o f the United States ”
ey,” how con­
strued.
shall be construed to mean gold or silver coin o f the

United States; and the circulation o f such associations
shall not be within the limitation o f circulation men­
tioned in this Title.
Penalty f o r
Sec. 5187. N o officer acting under the provisions o f this
uni a w f u 1 1 y
countersigning Title shall countersign or deliver to any association, or to
or delivering
c i r c u l a t i n g any other company or person, any circulating notes con­
notes.

templated by this Title, except in accordance with the true

intent and meaning o f its provisions.

Every officer who

June 3,1864, violates this section shall be deemed guilty o f a high mis­
sec. 27.

demeanor, 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.
Section 5188, as codified in section 175 o f the Penal
Imitating nat i o n a 1 bank
notes with ad­ Code o f the United States, March 4, 1909 (35 Stat. L .,
vertise m e n t s
) :
thereon.




1122

It shall not be law ful to design, engrave, print, or in
any manner make or execute, or to utter, issue, distribute,
circulate, or use any business or professional card, notice,
placard, circular, handbill, or advertisement in the likeness
or similitude o f any circulating note or other obligation
or security o f any banking association organized or acting

LAW S

C O N C E R N IN G

399

B A N K IN G .

under the laws o f the United States which has been or
may be issued under any A ct o f Congress, or to write,
print, or otherwise impress upon any such note, obliga­
tion, or security, any business or professional card, notice
or advertisement, or any notice or advertisement o f any
matter or thing whatever.

Whoever shall violate any

provision o f this section shall be fined not more than one

Punishment

hundred dollars, or imprisoned not more than six months, f°r'
or both.
Section 5 1 8 9 , as codified in section 1 7 6 o f the Penal

M u tilatin g,

Code o f the United States, March 4, 1 9 0 9 ( 3 5 Stat. L .. link note“ ° Dal

1122) :

Whoever shall mutilate, cut, deface, disfigure, or per­
forate with holes, or unite or cement together, or do any
other thing to any bank bill, draft, note, or other evidence
° f debt, issued by any national banking association, or
shall cause or procure the same to be done, with intent to
render such bank bill, draft, note, or other evidence o f
debt unfit to be reissued by said association, shall be fined

runisbme n t

n°t more than one hundred dollars, or imprisoned not
more than six months, or both.
S e c . 5 1 9 0 . The usual business o f each national banking riace of busi-

association shall be transacted at an office or banking- n
efune 3,1864,
house located in the place specified in its organization^

8

certificate.
S ec . 5191. Every national banking association in either

Requirements

° f the follow ing cities: Albany, Baltimore, Boston, Cin - money reserve,
cinnati, Chicago, Cleveland, Detroit, Louisville, M ilwaue® hmw Orleans, New Y ork, Philadelphia, Pittsburgh,
>
Saint Louis, San Francisco, and W ashington, shall at all
times have on hand, in law ful money o f the United States,
an amount equal to at least twenty-five per centum o f the
aggregate amount o f its notes in circulation and its de­
posits; and every other association shall at all times have
°n hand, in law ful money o f the United States, an
amount equal to at least fifteen per centum o f the aggre­
gate amount o f its notes in circulation, and o f its deposits.
henever the lawful money o f any association in any o f

No loans or

t ic cities named shall be below the amount o f twenty-five m
adee^h\ie° e ­
. r be
serve is below

per centum o f its circulation and deposits, and whenever H lt
m
ie lawful money o f any other association shall be below
teen per centum o f its circulation and deposits, such
association shall not increase its liabilities by making any







400

N A T IO N A L

M ONETARY

C O M M IS S IO N .

new loans or discounts otherwise than by discounting or
purchasing bills o f exchange payable at sight, nor make
any dividend o f its profits until the required proportion,
between the aggregate amount o f its outstanding notes
o f circulation and deposits and its lawful money o f the
United States, has been restored.

A n d the Comptroller

o f the Currency may notify any association, whose law ­
ful-money reserve shall be below the amount above re­
quired to be kept on hand, to make good such reserve;
and i f such association shall fail for thirty days there­
after so to make good its reserve of lawful money, the
Receiver may Comptroller m ay, with the concurrence o f the Secretary
be appoi n t e d
1
J7
.
.
f

for failure to of the Treasury, appoint a receiver to wind up the busi-

ness o f the association, as provided in section fifty-two

reserve.

hundred and thirty-four.
Redemption

S e c . 5 1 9 2 . Three-fifths o f the reserve of

fifteen per

cities, and pro.
.
1
portion of re- centum required by the preceding section to be kept, mav
serve wh i c h
.
1
1
7
1
° #
t
A 7
y
may be kept consist o f balances due to an association, available for the
seeactof June redemption o f its circulating notes, from associations ap-

20 1874

c
d

7

a

proved by the Comptroller o f the Currency, organized
June 3,

1864

under the act of June three, eighteen hundred and sixtyfour, or under this Title, and doing business in the cities

Feb. 19,1875. o f Albany, Baltimore, Boston, Charleston, Chicago, Cin­

cinnati, Cleveland, Detroit, Louisville, Milwaukee, New
Orleans, New Y ork , Philadelphia, Pittsburgh, Richmond,
c l e a r i n g Saint Louis, San Francisco, and W ashington. Clearingcates

deemed house certificates, representing specie or lawful monev
. 1
r
c
•
J

lawful money.

specially deposited for the purpose, o f any clearing-house
association, shall also be deemed to be law ful money in

the possession o f any association belonging to such clear­
ing-house, holding and owning such certificate within
the preceding section.
united states
S e c . 5193. The Secretary o f the Treasure mav receive
certificates o f
J #
•
o
deposit may be United States notes on deposit, without interest, from any

\
7
7
8S 872tofJune thousand dollars, and issue certificates therefor in such
i
form as he may prescribe, in denominations o f not less

issued, and may

.

.

.

.

c o u n t as re- national banking associations, in sums o f not less than ten

serve.

c

than five thousand dollars, and payable on demand in
.

United States notes at the place where the deposits were
made.

The notes so deposited shall not be counted as

part o f the lawful-money reserve o f the association; but
the certificates issued therefor may be counted as part of

LAWS CONCERNING BANKING.

401

its lawful-money reserve, and may be accepted in the

L im ita tio n up-

settlement or clearing-house balances at the places where ^ r '®c
to tat:es of
the deposits therefor were made.
S ec. 5194. The power conferred on the Secretary of
the Treasury, by the preceding section, shall not be exer­
cised so as to create any expansion or contraction o f the
currency. A n d United States nQtes for which certificates
are issued under that section, or other United States
notes o f like amount, shall be held as special deposits in
the Treasury, and used only for the redemption o f such
certificates.
S ec. 5195. Each association organized in any o f the

A gen ts

for re­

cities named in section fifty-one hundred and ninety-one cuiating^no^es
shall select, subject to the approval o f the Comptroller o f Dated.6 d 's"
e&
the Currency, an association in the city o f New Y ork, at June 2o?C
i874!
which it will redeem its circulating notes at p a r; and may

S<Ju n e 3 , 1864 ,

*eeP one-half o f its lawful-m oney reserve in cash d e -& 32
et’
posits in the city o f New Y ork. B u t the forgoing pro­
vision shall not apply to associations organized and lo­
cated in the city o f San Francisco for the purpose o f issu­
ing notes payable in gold. Each association not organ­
ized within the cities named shall select, subject to the
aPProval o f the Comptroller, an association in either o f
the cities named, at which it will redeem its circulating
note's at par.

The Comptroller shall give public notice

the names o f the associations selected, at which rec emptions are to be made by the respective associations,
and o f any change that may be made o f the association at
v ncli the notes o f any association are redeemed.

W hen-

R e ce iv e r m ay

1 n any association fails either to make the selection o r for fanure to
redeem its notes as aforesaid, the Comptroller o f
urrency may, upon receiving satisfactory evidence

^

hereof, appoint a receiver, in the manner provided for
in section fifty-tw o hundred and thirty-four, to wind up
, S aflairs. But this section shall not relieve any associa-

«

i°n from its liability to redeem its circulating notes at
1 s own counter, at par, in law ful money on demand.
Ea

E very national banking association form ed. Nat i onal

w existing under this title, shall take and receive at p a r .ceive D°t < ^
es
or any debt or liability to it, any and all notes or bills tional banks.a
issuet by any law fully organized national banking asso01a ion.

But this provision shall not apply to any asso-

in* 10h organ*zed ^01‘ the purpose o f issuing notes payable







S EC. 5197. A n y association mav take, receive, reserve,

Limitation
of

jupon ra te

J

'

J

interest^wbich and charge on any loan or discount made, or upon any
June 3,1864, note, bill o f exchange, or other evidences o f debt, interest

c. 106, s. 30, v.
3, p. 108.
13, p. 108. _
T iffa n y
Na
tion a i R an k o f
M i s s o u r i (1 8

at the rate allowed by the laws o f the State, Territory,
.
_
_
or district where the bank is located, and no more, except

v.

7

.

7

y

w a n . , 409);that where by the laws o f any State a different rate is
match 243) 1

f ° r banks o f issue organized under State laws,
the rate so limited shall be allowed for associations or­
ganized or existing in any such State under this Title.
W h en 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 n d the purchase, discount, or sale o f a bona-fide bill o f
exchange, payable at another place than the place of
such purchase, discount, or sale, at not more than the
current rate o f exchange for sight-drafts in addition to
the interest, shall not be considered as taking or receiving
a greater rate o f interest.

ofCtak K
?n ieusu-

S ec. 5198. The taking, receiving, reserving, or charg-

1 junen 864
3eri
a ra*e
M ere st greater than is allowed by the preC 106 S 3°, v. ceding section, when knowingly done, shall be deemed a
13, p. 108.
F eb. i s , 1875,
c. 80, v. 18, p.

.

.

.

.

forfeiture o f the entire interest which the note, bill, or
.

.

.

7

7

320.
other evidence o f debt carries with it, or which has been
F a rm ers’ , e tc.,
7
Bank 9V ^pear- agreed to be paid thereon. In case the greater rate of
.
interest has been paid, the person by whom it has been

2 9 ).

paid, or his legal representatives, 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 sam e; provided such action is commenced
within two years from the time the usurious transaction
occurred. [T hat suits, actions, and proceedings against
any association under this Title may be had in any cir­
cuit, district, or territorial court o f the United States
held within the district in which such association may be
established, or in any State, county, or municipal court
in the county or city in which said association is located
having jurisdiction in similar cases.]
(T he words in brackets were added by the act o f Feb­
ruary 18, 1875.)
P lv id en d s.
Ju n e 3, 1864,
c .'T o e , s ’ 33 , ^ ;

13, P
‘

'

S ec. 5199. The directors o f any association may, semiannually, declare a dividend o f so much o f the net profits
o f the association as they shall judge expedient; but
each association shall, before the declaration o f a divi-

-

LAWS CONCERNING BANKING.

403

dend, carry one-tenth part o f its net profits o f the pre­
ceding half-year to its surplus fund until the same shall
amount to twenty per centum o f its capital stock.
S e c . 5200. The total liabilities to any association, o f.,k i“ !t t0J,I /
a

aiiy person, or of any company, corporation, or firm for “ a|d b ® !^ y
b
money borrowed, including, in the liabilities o f a com- ^.pcrso^ew7
pany or firm, the liabilities o f the several members108thereof, shall at no time exceed one-tenth part o f the
amount of the capital stock o f such association actually
paid in.

But the discount o f bills o f exchange drawn in

good faith against actually existing values, and the dis­
count o f commercial or business paper actually owned by
Hie person negotiating the same, shall not be considered
as money borrowed.
S ec. 5201. N o association shall make any loan or dis- Associations
count on the security o f the shares o f its own capital purchase their
stock, nor be the purchaser or holder o f any such s h a r e s , s ^ s , P
.
unless such security or purchase shall be necessary t o 1Tank n . L a P1event loss upon a debt previously contracted in good 369) •1 Ballard
faith ; and stock so purchased or acquired shall, within six wau.,a589).(1S
months from the time o f its purchase, be sold or disposed
° f a.t public or private sale; or, in default thereof, a
receiver may be appointed to close up the business of
the association, according to section fifty-tw o hundred
and thirty-four.
S ec. 5202. No association shall at any time be indebted, Limit upon inor in any way liable, to an amount exceeding the amount be'fucurbed. t0
° f its capital stock at such time actually paid in and re- c/ioe, s.’ iffy!
maining undiminisl^ed by losses or othenvise, except o n 13, p' no'
account o f demands o f the nature fo llow in g :
h irst. Notes o f circulation.
Second. Moneys deposited with or collected by the

association.
dhird. B ills o f exchange or drafts drawn against
money actually on deposit to the credit o f the association,
or due thereto.
b ourth. Liabilties to the stockholders o f the association
for dividends and reserved profits.
S ec. 5203. N o association shall, either directly or indi-

ibid., sec. 37 .

reedy, pledge or hypothecate any o f its notes o f circula- notes1
"Sot t?SI
mn, for the purpose o f procuring money to be paid in on Sor
1 s capital stock, or to be used in its banking operations, o r treabe capita1'
otherwise; nor shall any association use its circulating
notes, or any part thereof, in any manner or form, to
create or increase its capital stock.




NATIONAL MONETARY COMMISSION.

404

S e c . ^204. N o association, or any member thereof, shall,
a/bidCsP3 8 during the time it shall continue its banking operations,
withdraw, or permit to be withdrawn, either in the form

uponwithdraw-

o f dividends or otherwise, any portion o f its capital.

If

losses have at any time been sustained by any such asso­
ciation, 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 associations, on which

interest is past due and unpaid for a period o f six months,
unless the same are well secured, and in process o f collec­
tion, shall be considered bad debts within the meaning of
this section. B u t nothing in this section shall prevent
the reduction o f the capital stock o f the association under
Enforcing payment of defi-

section fifty-one hundred and forty-three.
S e c . 5205. E very association which shall have failed
.

. 1
7

* 1 1 1

unlock ca i
p

llP ^ caP^a^ stock, as required by law, and every
1873, association whose capital stock shall have become im-

Mar. 3,
c. 269 s. 1 v.
17, p. 'cos. ’

paired by losses or otherwise, shall, within three months

lb 15604’ 4’ v- after receiving notice thereof from the Comptroller of
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 notifi­
cation from the Comptroller o f the Currency, until other­
wise 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 Comptroller, a receiver may be
appointed to close up the business o f the association, ac­
cording to the provisions o f section fifty-tw o hundred and
thirty-four.

[And provided , T hat i f any shareholder or

shareholders o f such bank shall neglect or refuse, after
three months’ notice, to pay the assessment, as provided
in this section, it shall be the duty o f the board o f di­
rectors to cause a sufficient amount o f the capital stock of
such shareholder or shareholders to be sold at public auc­
tion (after thirty days’ notice shall be given by posting
such notice o f sale in the office o f the bank, and by publish­
ing such notice in a newspaper 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

LAWS CONCERNING BANKING.

405

balance, if any, shall be returned to such delinquent share­
holder or shareholders.]
[The words in brackets were added by the act o f June
3 0 ,1876, see p. 427.]
S e c . 5 2 0 6 . No association shall at any time pay out on

Associatio n s
not to pay out

oans or discounts, or in purchasing drafts or bills o f ex­ u n c u r r e n t
notes.
change, or in payment o f deposits, or in any other mode I b id . , sec. 39.
pay or put in circulation, the notes o f any bank or bank­
ing association which are not, at any such time, receivable,
at par, on deposit, and in payment o f debts by the asso­
ciation so paying out or circulating such notes; nor shall
any ass°ciation knowingly pay out or put in circulation
ai|y notes issued by any bank or banking association
^

ich at the time of such paying out or putting in cir-

cu ation is not redeeming its circulating notes in law ful
money o f the United States.
e c . 5207. No association shall hereafter offer or re­
Penalt y f o r
offering or re­
ceive United States notes or national-bank notes as se­ ceiving United
States or na­
curity or as collateral security for any loan o f money, or t i o n a l - b a n k

notes as secur­

q° i

a consideration agree to withhold the same from use, ity for loans,
etc.
or o er or receive the custody or promise o f custody of See act of Feb.
1 n° t es as security, or as collateral security, or con-

19, 1869.

o - * 10* f ° r any loan o f money. A n y association
ending against the provisions o f this section shall be
^eemed guilty o f a misdemeanor, and shall be fined not
^ ° re than one thousand dollars and a further sum equal
^ h i r d
sh! P i

o f tlie money so loaned.

The officer or offi­

any ass0(nation who shall make any such loan

the
be llable f ° r ^ Norther sum equal to one quarter o f
a .umney loaned; and any fine or penalty incurred by
bpr/fif1 1
^ 1
section shall be recoverable for the
e
o f the party bringing such suit.
o r -

° 208, rt shall be unlawful for any officer, clerk,

an atef n^ ° f any national banking association to certify
o ry C 1GCv drawn upon the association unless the person
asso°m^ an^ R a w in g the check has on deposit with the
0£ 0cicltmn, at the time such check is certified, an amount
A n y 10? 6^ G irt to the amount specified in such check,
(lU
be a C 6 i S° cert[hed by duly authorized officers shall
/
goo and valid uungaiioii against tne association;
but th
rtllu obligation against the
tion in a^ i ° ^ an^ ° ® cer? clerk, or agent o f any associa­
te the r ' h w 10n
sec^ on5 shall subject such bank Penalty -for
falsely certify­
Comot P 1 ltaes and proceedings on the part o f the ing checks.
and thirty-four provide(f for in section f i % -t w o hundred




M ar. 3, 1869,
c. 135, v. 15,
p. 335.

406

'

N A T IO N A L M O N E T A R Y C O M M IS S IO N .

ment™ p e n a lty '

S ec . ^209. Every

president, director, cashier, teller,

c Ji o l 3 s185 5 ’ c^erk’ or ag ent ° f any association, who embezzles, abv' \prli 6' 18 6 9 sfracf s? or w illfully misapplies any o f the moneys, funds,
e.ii,v .i6 ,p .7 .0r credits o f the association; or who, without authority
^g|26’ v- 16- p- from the directors, issues or puts in circulation any o f
•
the notes o f the association; or who, without such authorTaintoV (liit y , issues or puts forth any certificate o f deposit, draws
m a t c h ., 3 , 4 ) . any or{j er or bill o f exchange, makes any acceptance,
assigns any note, bond, draft, bill o f exchange, mortgage,
judgment, or decree; or who makes any false entry in
any book, report, or statement o f the association, with
intent, in either case, to injure or defraud the association
or any other company, body politic or corporate, or any
individual person, or to deceive any officer o f the asso­
ciation, or any agent appointed to examine the affairs of
any such association; and every person who with like
intent aids or abets any officer, clerk, or agent in any
violation o f this section, shall be deemed guilty o f a mis­
demeanor, and shall be imprisoned not less than five years
nor more than ten.
List

of

S e c . 5210. The president and cashier o f every national

etc., to be kept! banking association shall cause to be kept at all times
c. 106, s. 40,’ a full and correct list o f the names and residences o f all
v‘

’ P
'

' 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
Reports to

to the Comptroller o f the Currency.
S e c . 5211. Every association shall make to the Comp-

fhTcurrency?1 troller o f the Currency not less than five reports during
loo? ”

’ p' each year, according to the form which may be prescribed

c.T30, s i, v!by him, verified by the oath or affirmation o f the presi’,
June 30,1876, dent or cashier o f such association, and attested by the

19, p. el!

’ v‘ signature o f at least three o f the directors.

Each such

c. 69,'y. ’ 1 9 , p! report shall exhibit, in detail and under appropriate
heads, the resources and liabilities o f the ( associations)




(association) at the close o f business on any past day by
him specified; and shall be transmitted to the Com p­
troller within five days after the receipt o f a request or
requisition therefor from him, and in the same form in

LAWS CONCERNING BANKING.

407

which it is made to the Comptroller shall be published
in a newspaper published in the place where such asso­
ciation is established, or i f 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 re­
quired by the Comptroller.

The Comptroller shall also

have power to call for special reports from any particu­
lar association whenever in his judgment the same are
necessary in order to a full and complete knowledge of
its condition.
(The act o f February 27, 1877, substitutes “ associa­
tion ” for “ associations.” )

S ec. 5212. In addition to the reports required bv the Report as to
,.
.
• • ^ i n
J
dividends.

preceding. section, each association shall report to the c Mar. 3, i860,
Comptroller o f the Currency, within ten days after de- is. p- 327. ’
i •
J
„
... . ,
, June30,1876,
ciaring any dividend, the amount o f such dividend, and c. i56,^s. 3, v.
q
the amount o f net earnings in excess of such dividend.
Such reports shall be attested by the oath o f the presi­

dent or cashier o f the association.
S ec. 5213. Every association which fails to make and „ Penalty for
transmit any report required under either of the two reports.^
preceding sections shall be subject to a penalty o f one c. T 30,
hundred dollars for each day after the periods, respec-

June30^1876’,

tlvely, therein mentioned, that it delays to make and 19, p. 63.
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 of the
United States, upon the order o f the Comptroller of 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 Treas­
ury o f the United States.
^ (Section 6, act of June 30, 187G (ch. 156, v. 19, p. 6 4 ),
extends the provisions o f the three sections of the Revised
atutes above, to all savings banks or savings and trust
companies organized under any act of Congress.)
eg. 5214. In lieu o f all existing taxes, every associa-

P?ty on cir-

•nail pay to the Treasurer o f the United States, i n P ° s l t s > *?n
d
^ e months o f January and July, a duty o f one-half ° f sJfun 3’ 18®
4ie
4,
one pei centum each half-year upon the average amount
0

its notes in circulation, and a duty of one-quarter o f

one per centum each half-year upon the average amount
15712° — 10 ----- 28




408

NATIONAL MONETARY COMMISSION.

o f its deposits, and a duty o f one-quarter o f one per
centum each half-year on the average amount o f its capi­
tal stock, beyond the amount invested in United States
bonds.
S e m i-a n n u a l
re tu r n o f c ir ­
cu la tio n ,
d e­
p o sits, an d ca p ­
ita l stock.




S ec . 5215. In order to enable the Treasurer to assess
the duties imposed by the preceding section, each asso­
ciation shall, within ten days from the first days of
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,
and o f the average amount o f its deposits, and o f the
average amount o f its capital stock, beyond the amount
invested in United States bonds, for the six months next
preceding the most recent first day o f January or July.

P e n a lty f o r
fa ilu r e t o m ak e
return.

Every association which fails so to make such return shall
be liable to a penalty o f two hundred dollars, to be col­
lected either out of the interest as it may become due such
association on the bonds deposited with the Treasurer, or,
at his option, in the manner in vhich penalties are to be
collected o f other corporations under the laws o f the
United States.

M ethod o f as­
sessm en t i f ret u r n is n o t
m ade.

S ec. 5216. Whenever any association fails to make the
half-yearly return required by the preceding section, 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 highest
amount o f its deposits and capital stock, to be ascertained
in such manner as the Treasurer may deem best.

H o w ta x m ay
be co lle cte d if
a s s o c ia tio n
fa ils to p a y.

S ec . 5217. Whenever an association fails to pay the
duties imposed by the three preceding sections, the sums
due may be collected in the manner provided for the col­
lection o f United States taxes from other corporations;
or the Treasurer may reserve the amount out o f the in­
terest, as it may become due, on the bonds deposited with
him by such defaulting association.

R e fu n d in g
excess o f d u ­
ties paid.

S ec. 5218. In all cases where an association has paid
or may pay in excess o f what may be or has been found
due from it, on account o f the duty required to be paid to
the Treasurer o f the United States, the association may
state an account therefor, which, on being certified 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.

LAWS CONCERNING BANKING.

S ec.

409

5219. Nothing herein shall prevent all the shares

s te ta a
ta
x-

m any association from being included in the valuation tio
june 3, 1864,
of the personal property o f the owner or holder o f such i 31 p in .1, v*
>0 6’
shares, in assessing taxes imposed by authority o f the c
State within which the association is located; but th e 3 Bank of c'om
legislature o f each State m ay determine and direct the York6 c i'ty Ne(2
manner and place o f taxing all the shares o f national g j ’ ® ; S e
e 2(P
banking associations located within the State, subject
_ 5f 3j?
B8'°r
only to the two restrictions, that the taxation shall notcommlssil^era
be at a greater rate than is assessed upon other moneyed Br™ J ’,24&
a
capital in the hands of individual citizens o f such State, w | n P 14- !))(l
e
ar*d that the shares o f any national banking association National Bank
owned by non-residents o f any State shall be taxed in the “ pnw
e®lthr°™
®
city or town where the bank is located, and not elsewhere, j^ o n br e v .
egr
1 othing herein shall be construed to exempt the real 468(; H
epburn
property o f associations from either State, county, or
municipal taxes, to the same extent, according to its value, Pe°p,e v- C -’
om
i
.
.
.
,
7
°
’ m ission ers o f
oiner real property is taxed.
T a xe s, etc. (94

as

Bank of O m aha

v.

D ou gla s Co. (3 D ill., 2 9 9 ) ; F ir s t National’ bank V
D ou gla s Co. (3 D ill., 3 3 0 ).
#
<

q

‘ Ec. 5220. A n y association may go into liquidation and
voluntary
ic c.losed by the vote of its shareholders owning two-thirds lju n e 3 ,1 8 6 4 ,
o f its stock.
sec- 42-

S ec. 5221. Whenever a vote is taken to go into liqui-

Nt eof inoic

atlon it shall be the duty o f the board o f directors to solve1 t0 dls‘
cruise notice o f this fact to be certified, under the seal of c. loefs.’i!,64.
’
m association, by its president or cashier, to the C o m p -13’ P 112'
’
m °d 6r
Currency ’ ar*d publication thereof to be
!na e ^or a period o f two months in a newspaper pubDuhr i!n ^-le
^ ^ ew ^ or^ ’ and aiso in a newspaper
lo *
or ^own *n w hich the association is
ca ed, or if no newspaper is there published, then in
e newspaper published nearest thereto, that the associit.’
UP its affairs, and notifying the holders o f
s notes and other creditors to present the notes and other
‘ aims against the association for payment.

‘
tj

ec.

,)222. W ith in six months from the date o f the vote

neposit

of

3 r Hlt0 ^fiuidation, the association shall deposit with tcW
releem°de
/•. measurer o f the United States, law ful money o f t
h
e
ecs.

culati

sufficient to redeem all its outstanding cir-

for mo0 '
tion

i ° Treasu.rer sha11 execute duplicate receipts
deposited, and deliver one to the associa-

stating thehL ° the* t0 ‘ f1® ,C “ m p? oller o f the Currency,
which if i * lount received by him, and the purpose for
into th
credit

r aS been received 5

the money shall be paid

/ " ' I 81117 ° f the United States, and placed to the
0 such association upon redemption account.




4 J u l y i 4 , 1870.




i)an
kgSneed*1
1 ot S ec . 5223. A n association which is in good faith winddeposit lawful inn Xp
r 1
business for the purpose o f consolidating with
ju
fyei 4 a 87of ano^ ier association shall not be required to deposit lawful
i
money for its outstanding circulation; but its assets and
liabilities shall be reported by the association with which
it is in process o f consolidation.
Reassignment
g E > 5224. W henever a sufficient deposit o f lawful
C
of bonds to
#
z
clo
june 3ani 864 money 1° redeem the outstanding circulation o f an associa­
t e . 42.
tion proposing to close its business has been made, the
bonds deposited by the association to secure payment o f
its notes shall be reassigned to it, in the manner prescribed
redeemed at by section fifty-one hundred and sixty-two. A n d thereTreasury.
after the association and its shareholders shall stand dis­
charged from all liabilities upon the circulating notes,
and those notes shall be redeemed at the Treasury o f the
wheu° C
associaS United States.

[A n d i f any such bank shall fail to make

deposita'/awful the deposit and take up its bonds for thirty days after
m ge/ ' act of the expiration o f the time specified, the Comptroller of
o e
correct?ng18Re- the Currency shall have power to sell the bonds pledged
vised statutes. f or
circulation o f said bank, at public auction in New
Y o rk City, and, after providing for the redemption and
cancellation o f said circulation and the necessary ex­
penses o f the sale, to pay over any balance remaining to
the bank or its legal representative.]
(T he words in brackets were added by the act o f Feb­
ruary 18, 1875.)
Destruction
S ec. 5225. Whenever the Treasurer has redeemed any
of redeemed
.
.
.
"
notes. ^
^ o f the notes o f an association which has commenced to
June 23,‘ 1874. close its affairs under the [six 1 [five] preceding sections,
June 3 1864
L
J L
J
°
sec. 43. ’
’ he shall cause the notes to be mutilated 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.
(T he word “ six ” in brackets is struck out and “ five ”
in brackets added by the act o f February 27, 1877.)
M
ode of proS ec . 5226. W henever any national banking association
testing notes.
^
0
iMd., sec. 46. fails to redeem in the law ful money of the United States
any o f its circulating notes, upon demand o f payment
duly made during the usual hours of business, at the
See
Ju n e 2o!ci 87?

°-®ce
such association, or at its designated place of 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 o f the association at

LAWS CONCERNING BANKING.

411

the place at which they are redeemable offers to waive
demand and notice o f the protest, and, in pursuance o f
such offer, makes, signs, and delivers to the party making
such demand an admission in writing, stating the time of
the demand, the amount demanded, and the fact o f the
non-payment thereof. The notary public, on making
such protest, or upon receiving such admission, shall
forthwith forward such admission or notice o f protest to
the Comptroller o f the Currency, retaining a copy
thereof. 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 jurisdic­
tion, he shall not protest the same.

W h en the holder o f

any notes causes more than one note or package to be pro-

one

p ro te st

sam e °day!

tested on the same day, he shall not receive pay for more
than one protest.
S ec . 5227. On receiving notice that any national bank-

E x a m in a tio n

m g association has failed to redeem any o f its circulating agent,

a ftw n o -

ootes, as specified in the preceding section, the Comp- tlcjune O sga
troller o f the Currency, with the concurrence o f the S e c -se " 47'
<
letary o f the Treasury, may appoint a special agent, of
'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
t e lawful money o f the United States, when demanded,
uud shall report to the Comptroller the fact so ascertained. F o rfe itu re
5 from such protest, and the report so made, the Comp- bonds'

of

roller is satisfied that such association has refused to
Pay its circulating notes and is in default, he shall, within
1 ty days after-he has received notice o f such failure,
1
ec are the bonds deposited by such association forfeited
f ° *he United States, and they shall thereupon be so

Sec. 5228.

A fte r a default on the part o f an association

Association

0 Pay any o f its circulating notes has been ascertained nesst0
afterb noI
U
J the Comptroller, and notice thereof has been given by t junef
J
.lm. to ^ le association, it shall not be law ful for the a sso-sec' 46'
ciation suffering the same to pay out any o f its notes, disnes1 1 fU1^ n? tes or kills, or otherwise prosecute the busi1^
i ef s ° . banking, except to receive and safely keep money
e^ongnig to it, and to deliver special deposits.
_ ce E? ‘

Immediately upon declaring the bonds o f an

Notice

to

C o<)C11 K
iU ^ °U eited for non-payment o f its notes, th e ^ /M d ^ c A T .
mP r°H er shall give notice, in such manner as the Sec-




NATIONAL MONETARY COMMISSION.

412

retary o f the Treasury shall, by general rules or other­
wise, direct, to the holders o f the circulating notes o f such
Redemption association, to present them for payment at the Treasury
of n o t e s at
Treasury, and o f the United States; and the same shall be paid as pre­
cancellation of
bonds.
sented in law ful money o f the United States; whereupon

the Comptroller m ay, 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.
S ale o f bon d s
a t a u ction .

S e c . 5230. Whenever the Comptroller has become satis­

fied, by the protest or the waiver and admission 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 bonds,
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 Y ork , after giving thirty days’ notice o f such sale

T h e U nited
S ta tes to have
a pa r am ou nt
lien u p on a s­
sets o f a ss o cia ­
tion s.

to the association.

For any deficiency in the proceeds o f

all the bonds of an association, when thus sold, to re­
imburse to the United States the amount expended in
paying the circulating notes o f the association, the United
States shall have a paramount lien upon all its assets;
and such deficiency shall be made good out of such assets
in preference to any and all other claims whatsoever,
except the necessary costs and expenses o f administering

S ale o f bon d s
a t p riv a te sale.

the same.
S ec . 5231. The Comptroller may, if he deems it for the
interest o f the United States, sell at private sale any p f
the 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 for less
T ra n s fe r
bon d s sold.

o f

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 prescribed by sections fifty-one
hundred and sixty-two, fifty-one hundred and sixty-three,
and fifty-one hundred and sixty-four.

D is p osition to
be m ade o f
n otes redeem ed
by T rea su rer.




S ec. 5232. The Secretary o f the Treasury may, from
time to time, make such regulations respecting the dis­
position to be made o f circulating notes after presenta­
tion at the Treasury o f the United States for payment,
and respecting the perpetuation o f the evidence o f the
payment thereof, as may seem to him proper.

LAWS CONCERNING BANKING.

413

S e c . 5233. A ll notes o f national banking associations
to

cancellation

or notes.

presented at the Treasury o f the United States for pay­
ment shall, on being paid, be canceled.
S e c . 5234. On becoming satisfied, as specified in sec-

Appointm
ent

tions fifty-two hundred and twenty-six and fifty-tw o receivers!es °f
hundred and twenty-seven, that any association has re- Kennedy v.
fused to pay its circulating notes as therein mentioned, 498 S IBanka of
;O
and is in default, the Comptroller o f the Currency may ?u que%Jn£
ioh
forthwith appoint a receiver, and require o f him such Banka".'’ S
4
bond and security as he deems proper.

Such receiver, “9 ^ /n^ePiltt,

under the direction o f the Comptroller, shall take pos- Ben!,Y 34etc'’ 1
e Ir
session o f the books, records, and assets o f every de­
scription o f such association, collect all debts, dues, and
claims belonging to it, and, upon the order o f a court of
record of competent jurisdiction, may sell or compound

see sec. 3 ,

all bad or doubtful debts, and, on a like order, may sell i876.f June 3° ’
all the real and personal property o f such association,
°n such terms as the court shall direct; and may, if neces­
sary 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 of the Comptroller,
and also make report to the Comptroller o f all his acts
and proceedings.
S e c . 5235. The Comptroller shall, upon appointing a
•

A

/

j
l

j. a

o

receiver, cause notice to be given, by advertisement in

Notice to pre-

sGnr cla im s
c June 3 , 1864,

such newspapers as he may direct, for three consecutive 13>p - ’ i i 4 .
months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof.
S e c . 523G. From time to time, after full provision has ,

D iv id en d s

by

een first made for refunding to the United States any creditors'.1 1 t0
6
deficiency in redeeming the notes o f such association, the
Comptroller shall make a ratable dividend o f the money

-T n 3 ,1864,
ue

so Pa^ oyer to him by such receiver on all such claims a s bet' ° ’
may have been proved to his satisfaction or adjudicated
ln a c°urt o f competent jurisdiction, and, as the proceeds
° f 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 o f such association, or their legal representatives, in proportion to the
s oc c by them respectively held.




■I#
S ec . 5237. Whenever an association against which pro­
ceedings have been instituted, on account of any alleged
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 o f an agent,
as provided in section fifty-tw o hundred and twentyseven, apply to the nearest circuit, or district, or Terri­
torial court o f the United States to enjoin further pro­
ceedings in the premises; and such court, after citing the
Comptroller o f the Currency to show cause why further
proceedings should not be enjoined, and after the decision
o f the court or finding o f a jury that such association has
not refused to redeem its circulating notes, when legally
presented, in the lawful money o f the United States, shall
make an order enjoining the Comptroller, and any re­
ceiver acting under his direction, from all further pro­
ceedings on account o f such alleged refusal.
Fees an d e x ­
penses o f p ro ­
te st and re­
ceiv ersh ip .
sec. 51.




Ibid.,

S e c . 5238. A ll fees for protesting the notes issued by

any national banking association shall be paid by the
person procuring the protest to be made, and such asso­
ciation shall be liable therefor; but no part o f the bonds
deposited by such association shall be applied to the pay­
ment o f such fees.

A ll expenses o f any preliminary or

other examinations into the condition o f any association
shall be paid by such association.

A ll expenses o f any

receivership shall be paid out o f the assets o f such asso­
ciation before distribution o f the proceeds thereof.
P e n a lty f o r
v io la tio n o f
th is title.
s. 53,
р. 116.
J u n e 3 0 ,1 8 7 6 ,
с. 156, v. 19,
p. 63.

Ibid.,

S ec . 5239. I f the directors o f any national banking as­
sociation shall knowingly violate, or knowingly permit
any o f the officers, agents, or servants o f the association
to violate any o f the provisions o f this Title, all the
rights, privileges, and franchises o f the association shall
be thereby forfeited.

Such violation shall, however, be

determined and adjudged by a proper circuit, district, or
territorial court o f the United States, in a suit brought
for that purpose by the Comptroller o f the Currency, in
his own name, before the association shall be declared
dissolved.

A n d in cases o f 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 o f such
violation.

LAWS CONCEKNING BANKING.

415

S ec. 5240. The Comptroller o f the Currency, with the ofA
^&sapproval o f the Secretary o f the Treasury, shall, as often ex l i 3’si864
j“ ^ 1
as shall be deemed necessary or proper, appoint a suit- i-dp6’^ 54, v'
able person or persons to make an examination o f the „ t ef -l9,1|7®
c
4 ’
altairs of every banking association, who shall have power 329to make a thorough examination into all the affairs o f
the association, and, in doing so, to examine any o f the
officers and agents thereof on oath ; and shall make a full
and detailed report o f the condition o f the association to
the Comptroller. [ Every person appointed to make such
examination shall receive for his services at the rate of
five dollars for each day by him employed in such ex­
amination, and two dollars for every twenty-five miles
he shall necessarily travel in the performance of his duty ,
which shall be paid by the association by him examined.
But no person shall be appointed to examine the affairs
of any banking association of which he is a director or
other officer.]
[That all persons appointed to be examiners of national
banks not located in the redemption-cities specified in
section five thousand one hundred and ninety-two o f the
Revised Statutes o f the United States, or in any one o f
fhe States o f Oregon, California, and Nevada, or in the
Territories, shall receive compensation for such examina­
tion as follow s: For examining national banks having a
capital less than one hundred thousand dollars, twenty
dollars; those having a capital o f one hundred thousand
dollars and less than three hundred thousand dollars,
twenty-five dollars; those having a capital o f three liunred thousand dollars and less than four hundred thou­
sand dollars, thirty-five dollars; those having a capital o f
our hundred thousand dollars and less than five hundred
thousand dollars, forty dollars; those having a capital of
ve hundred thousand dollars and less than six hundred
thousand dollars, fifty dollars; those having a capital of
snx hundred thousand dollars and over, seventy-five dol^l s ; which amounts shall be assessed by the Comptroller
o the Currency upon, and paid by, the respective associa10ns so examined; and shall be in lieu o f the compensa1Q and mileage heretofore allowed for making said exn
animations, and persons appointed to make examination
°

nat*°nal banks in the cities named in section five thou-

°

° n° hundred and ninety-two o f the Revised Statutes
he United States, or in any one o f the States o f Ore-







NATIONAL MONETARY COMMISSION.

416

gon, California, and Nevada, or in the Territories, shall
receive such compensation as may be fixed by the Secre­
tary o f the Treasury upon the recommendation of the
Comptroller o f the Currency; and the same shall be as­
sessed and paid in the manner hereinbefore provided.]
(The words in italics in brackets were struck out and
those in ordinary Roman type, also in brackets, added
L im it o f v is it-

o n a l pow ers.
June* M M ,
v.

is,

p.

by act o f Feb. 19, 1875.)
S ec . 5241. No association shall be subject to any visito-

.

.

J

rial powers other than such as are authorized by this
116 . ’ Title, or are vested in the courts of justice.

T ra n s fe rs , as-

S ec . 5242. A ll transfers o f the notes, bonds, bills of

a fte r an a ct o f
m s o lv e n c y ,
void .

exchange, or other evidences of debt owing to any na,

*

'

t

J

tional banking association, or o f deposits to its credit;
all assignments o f mortgages, sureties on real estate, or of
judgments or decrees in its fa v or; all deposits o f money,
bullion, or other valuable thing for its use, or for the
use of any o f its shareholders or creditors; and all pay­
ments o f money to either, made after the commission of
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. * * *

ti-

S ec . 5243. A ll banks not organized and transacting

M ar. 3 ,1 8 7 3 .

business under the national-currency laws, or under this

u s e o f the

Title, and all persons or corporations doing the business
o f bankers, brokers, or savings institutions except savingsbanks authorized by Congress to use the word “ national ”
as a part o f their corporate name, are prohibited 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 committed after the
third day o f September, eighteen hundred and seventythree, shall subject the party chargeable therewith to a
penalty o f fifty dollars for each day during which it is
committed or repeated.

LAWS CONCERNING BANKING.

417

ACTS SUBSEQUENT TO THE R EVISED STATUTES.
A C T O F J U N E 18, 1874.
C h a p . 304.— An act explanatory of the act of June thir- ^ i| stat l .,

tieth, eighteen hundred and sixty-four.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That all deposits made in institutions now existing c r^ f n g a n g 's
e
°
which do business only as savings-banks, and are recogi

°

°

nized as such by the laws of their respective States, or

banks t o be exem p t fro m taxation .

By Congress, are hereby declared to be exempt from
taxation the same as deposits in savings institutions having no capital although they have a capital stock or
bond for the additional security o f their depositors, and
pay dividends thereon; and no tax shall be assessed upon
the deposits made in such institutions, or collected o f
them on said deposits, otherwise than as herein provided:

Provided , That all the profits o f such savings banks, less
the aforementioned dividends on stock not exceeding
at the rate o f eight per centum per annum are divided
among the depositors, and that the capital stock is in­
vested only in the same class o f securities as is used
for investing the deposits, and that interest at the rate
of not less than four and one-half per centum be paid
m all cases to their depositors, to be made good if nec­
essary from the capital stock.
J. G. B l a in e ,

Speaker of the House of Representatives.
M att H . C arpenter ,

President of the Senate pro tempore.

Received by

the President June G, 1874.

N ° tk by tiie D epartment of State .— Tlie foregoing act having
been presented to the President o f the United States for his ap­
proval, and not having been returned by him to the House o f
Congress in which it originated within the time prescribed by
the Constitution o f the United States, has become a law without

approval,




Proviso,




NATIONAL MONETARY COMMISSION.

418

*

A C T O F J U N E 20, 1874.
C h a p . 343 .— A n act -fixing the amount of United States
notes, 'providing for a redistribution of the national
bank currency, and for other purposes.

pt.1!, p* 123.

a i-b a n k a c

Be it enacted by the Senate and House of Representa^
tives of the United States of America in Congress assembled, That the act entitled “ A n act to provide a national
currency secured by a pledge o f United States bonds,
and to provide for the circulation and redemption there­
o f,” approved June third, eighteen hundred and sixtyfour, shall hereafter be known as the “ national-bank act.”
the “ national-bank

L a w fu l m oney
g EC> 2 . T hat section thirty-one of
reserve on circu ia tio n a b o i - act ” be so amended that the several
ish e d , e x c e p t
as to na,tional provided for shall not hereafter be

J

See sec.

associations therein

required to keep on
5191. hand any amount o f money whatever, by reason of the
amount o f their respective circulations; but the moneys
required by said section to be kept at all times on hand
shall be determined by the amount o f deposits in all

^ R e d e m p t io n
p o s i t e d w ith
T rea su rer.

respects, as provided for in the said section.
g Ec. 3. T hat every association organized, or to be
organized, under the provisions of the said act, and o f
0

*

7

.

the several acts amendatory thereof, shall at all times keep
and have on deposit in the Treasury o f the United States,

M ay be cou n ted a s l a w f u l
reserve.
r e la tiv e 1 t o ° r e S
d e m o tio n

of

urer-

in law ful money o f the United States, a sum equal to
five per centum of its circulation, to be held and used
f or the redemption o f such circulation; which sum shall

r

#

7

.

be counted as a part of its lawful reserve, as provided in
sec^ on two
this a ct; and when the circulating notes
0 f a n y such associations, assorted or unassorted, shall be
presented for redemption, in sums o f one thousand dol­
lars, or anj7 multiple thereof, to the Treasurer of 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 respective asso­
ciations issuing the same, and he shall notify them sev­
erally, on the first day o f each month, or oftener, at his
discretion, o f the amount o f sufli redemptions; and when­
ever such redemptions for any association shall amount
to the sum o f five hundred dollars, such association so
notified shall forthwith deposit with the Treasurer o f the
United States a sum in United States notes equal to the

n otes V o S je re ^

amount o f its circulating notes so redeemed.

A nd all
or

t u r n e d by a s - n o t e s
0 f national banks worn, defaced, mutilated,
s i s t a n t trea s#
7
’
*
urers.
otherwise unfit for circulation, shall, when received

by

LAWS CONCERNING BANKING.

419

&ny assistant treasurer, at any designated depository of
the United States, be forwarded to the Treasurer o f the
United States for redemption as provided herein.

And

when such redemptions have been so re-imbursed, the
circulating notes so redeemed shall be forwarded to the
lespective associations by which they were issued; but
if any of 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
A ss o cia tio n s
to r e i m b u r s e
u ry
£he Tnraos* ref

placed as now provided by l a w : Provided , That each of f
bdia associations shall re-imburse to the Treasury the

cnaiges tor transportation, and the costs for assorting pf^Psioet’c new
t n
such notes; and the associations hereafter organized shall
also severally re-imburse to the Treasury the cost o f en­
graving such plates as shall be ordered by each associalon 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
reasurer: And provided further , That so much o f sec- a„ents kernes
1011 thirty-two o f said national-bank act requiring or per- abolished.

mNf -

j.1

i

.

„ .

.

,

.

n

&

i

See

secs,

ling the redemption o f its circulating notes elsewhere ! 19f ^ A 5.10^’

. at
own counter except as provided for in this utessection, is hereby repealed.
or

&ec . 4. T hat any association organized under this act, f0^ etirtng°cirS
flm r
-P j-i
•
•
lu r r e tir in g
clI1y o f the acts o f which this is an amendment, d e sir-cY]?tlon p d

inp- +„

i

’

wi thdr awi ng

fe
withdraw its circulating notes, in whole or in part, bondsrnay 5 upon the deposit o f lawful money with the Treas|iier of the United States in sums o f not less than nine
ousand dollars, take up the bonds which said associah^ p] laS ° n deposit with the Treasurer for the security o f
1
-'w circulating notes; which bonds shall be assigned to

. 6 3an^ in the manner specified in the nineteenth secJon of the national-bank act; and the outstanding notes
0 said association, to an amount equal to the legal-tender
lo

is deposited, shall be redeemed at the Treasury o f the

nited States, and destroyed as now provided by l aw:

'ooided, That the amount o f the bonds on deposits for
dolla ati° n

n°k

ll ..m i t
i
of
w ith d ra w a l o f

reduced below fifty thousand bonds!

S e c . 5. That the Comptroller o f the Currency shall,
The charter
i
,
. .
J
’ n u m b e r s of

Under sn ob

rpr
uctl ™ les and regulations as the Secretary o f the printed^p^n
reasury may prescribe, cause the charter numbers o f the their nAes.p
<
—
tlon to be printed upon all national-bank notes
^ iic i may be hereafter issued by him.







420

Msiximum

NATIONAL MONETARY COMMISSION.

g EC.

T hat the amount o f United States notes out-

a m ou n t o f U n i­
ted s ta t e s n o te s standing1and

to be used as a part of the circulating medium

shall not exceed the sum o f three hundred and eighty-two
million dollars, which said sum shall appear in each
monthly statement o f the public debt, and no part thereof
P r o v is io n s
r e l a t i v e to

shall be held or used as a reserve.
g E < 7. T hat so much o f the act entitled “ A n act to
C

$55*000 ooo of Provid© for the redemption of the three per cent, tempocirc u ia tio n .

rary-loan certificates, and for an increase o f nationalbank notes,” as provides that no circulation shall be with­
drawn under the provisions o f section six o f said act,
until after the fifty-four millions granted in section one
o f said act shall have been taken up, is hereby repealed;
and it shall be the duty o f the Comptroller o f the Cur­
rency, under the direction o f the Secretary o f the Treas­
ury, to proceed forthwith, and he is hereby authorized
and required, from time to time, as applications shall be
duly made therefor, and until the full amount o f fiftyfive million dollars shall be withdrawn, to make requisi­
tions upon each o f the national banks described in said
section, and in the manner therein provided, organized
in States having an excess o f circulation, to withdraw and
return so much o f their circulation as by said act may
be apportioned to be withdrawn from them, or, in lieu
thereof, to deposit in the Treasury o f the United States
law ful money sufficient to redeem such circulation, and
upon the return o f the circulation required, or the deposit

B on d s to be o f lawful monev, as herein provided, a proportionate
retu rn ed to as7 7
. .
.
s o c i a t i o n in amount ot the bonds held to secure the circulation o f
p r o p o r t io n to
.
.
.
.
_
c i r c u i a t ion such association as shall make such return or deposit shall
w ith d ra w n .
.
.
.

be surrendered to it.

r

Bonds to be
S ec . 8. T hat upon the failure o f the national banks
sold on failure
.
. . .
.
.
of association upon which requisition for circulation shall be made, or
to return cir- *
. .
.
cuiation.
o f any o f them, to return the amount required, or to de­

posit in the Treasury law ful money to redeem the circu­
lation required, within thirty days, the Comptroller o f
the Currency shall at once sell, as provided in section
see sec. 5231. forty-nine o f the national-currency act, approved June
third, eighteen hundred and sixty-four, bonds held to
secure the redemption o f the circulation o f the association
or associations which shall so fail, to an amount sufficient
to redeem the circulation required o f such association or
associations, and with the proceeds, which shall be de­
posited in the Treasury o f the United States, so much o f
the circulation o f such association or associations shall be

LAWS CONCERNING BANKING.

421

redeemed as will equal the amount required and not re­
turned; and if there be any excess o f proceeds over the
amount required for such redemption, it shall be re­
turned to the association or associations whose bonds shall
have been sold.

A n d it shall be the duty of the Treas-

As s i s t ant

urer, assistant treasurers, designated depositaries, and na- depositaries to
tional bank depositaries o f the United States, who shall tu™rtn“ £
be kept informed by the Comptroller o f the Currency 0f lieabury-

to

such associations as shall fail to return circulation as re­
quired, to assort and return to the Treasury for redemp­
tion the notes o f such associations as shall come into their
bands until the amount required shall be redeemed, and
ln bke manner to assort and return to the Treasury, for
redemption, the notes o f such national banks as have
failed, or gone into voluntary liquidation for the purpose
° f winding up their affairs, and o f such as shall hereafter
s° fail or go into liquidation.
^ ec . 9 . T hat from and after the passage o f this act it Providing for
S
c-Ivoli u i
,,
„
the Issue of new
Uclli ne lawful for the Comptroller o f the Currency, and notes ln p,ace
bp io U
1
, . . r
.
,
.
-f ’
of $55,000,000
ts nereby required, to issue circulating notes without withdrawn.
dplo-rr
„
*
SeeactofJan.
*uay, as applications therefor are made, not to exceed 14>1875, sec. 3.

he sum o f fifty-five million dollars, to associations or­
ganized, or to be organized, in those States and Terri­
tories having less than their proportion of circulation,
under an apportionment made on the basis o f population
and of wealth, as shown by the returns o f the census o f
eighteen hundred and seventy; and every association .New associahereafter organized shall be subject to, and be governed J^to^Sionat
y> the rules, restrictions, and limitations, and possess the
n ghts, privileges, and franchises, now or hereafter to be
prescribed by law as to national banking associations,
^

^ e same power to amend, alter, and repeal provided

by “ the national-bank a c t : ” Provided , That the whole tt?e™to° w S :
amount o f circulation withdrawn and redeemed from ^ f o n °f clr'
>anks transacting business shall not exceed fifty-five millon dollars, and that such circulation shall be withdrawn
and redeemed as it shall be necessary to supply the circu­
lation previously issued to the banks in those States havm g ess than their apportionment: And provided further ,
a not more than thirty million dollars shall be witharu* adeem ed as herein contemplated during the
SCa , year ending June thirtieth, eighteen hundred and

seventy-five.

Approved, June 20, 1874.







422

NATIONAL MONETARY COMMISSION.

A C T O F J U N E 22, 1874.
i|

s t a t ^ L ., C

. 399.— A n act f o r the r e lie f o f savings institutions
having no capital stock , and doing business solely fo r
the benefit o f d epositors .

h a p

B e it enacted by the Senate and H ouse o f R epresen ta­
tives o f the U nited States o f A m erica in Congress assembled , That no farther collection o f internal revenue taxes

C ertain sa v ings banks ex7
em p t from in-shall
tern a l reven u e .
tax.
tions

.

.

be made on the earnings o f savings banks or mstitu.

.

°

°

for savings, having no capital stock and doing no

other business than receiving deposits to be loaned or in­
vested for the sole benefit o f the parties making such
deposits, without profit or compensation to the association
or company, whether the earnings o f the same have been
or may hereafter be divided annually, semi-annually or
at other periods.
Approved, June 22, 1874.

A C T O F J A N U A R Y 14, 1875.
18

S tat.

15 . -A n

L.,CHAP.

pt. 3, p. 2 9 6 .

Repeal o f

H m

S

e c

.

act to provid e fo r the resum ption o f
specie paym ents.

3. T hat section five thousand one hundred and

greg ate am ou n t

seventy-seven of the Revised Statutes, limiting the ag-

notes.ir cu la tm g

gregate amount o f circulating notes o f national banking

sta tu te s,

5177. associations, be, and is hereby, repealed; and each exist­
ing banking association may increase its circulating notes
in accordance with existing law without respect to said
aggregate lim it; and new banking associations may be

Repeai o f pro-

organized in accordance with existing law without respect to said aggregate lim it; and the provisions o f law for

w ith d ra w a l and

the withdrawal and redistribution o f national bank cur-

see

Revised rency among the several States and Territories are hereby

S ta tu tes, 518 1 .

,

,

repealed.

®

t

.

,.

A n d whenever, and so often, as circulating

notes shall be issued to any such banking association, so
increasing its capital or circulating notes, or so newly orumted states ganized as aforesaid, it shall be the duty o f the Secretary

n otes in excess °
7
*
*
*
*
o f $ 30 0 ,0 0 0 ,0 00 o f the Treasury to redeem the legal-tender United States
to be redeem ed
u
in a certa in ra- notes in excess only o f three hundred million o f dollars,
t io to in crea se
.
,
. . ,
,
.
,
7
o f n a t i o n a i - to the amount o f eighty per centum o f the sum of

*

tion .

national-bank notes so issued to any such banking asso­
ciation as aforesaid, and to continue such redemption as

LAWS CONCERNING BANKING.

423

such circulating notes are issued until there shall be out­
standing the sum o f three hundred million dollars of
such legal-tender United

States notes, and no more.

A n d on and after the first day o f January, anno Domini
eighteen hundred and seventy-nine, the Secretary of the
reasury shall redeem, in coin, the United States legal-

R edem ption

tender notes then outstanding, on their presentation for notes in coin
redemption, at the office o f the assistant treasurer o f the i,fti 879Japuar>
united States in the city o f New Y ork , in sums o f not
ess than fifty dollars.

x\nd to enable the Secretary o f

the Treasury to prepare and provide for the redemption
m this act authorized or required, he is authorized to use

A p p r o p r ia -

any surplus revenues, from time to time, in the T reasu rytI0U
'
n° t otherwise appropriated, and to issue, sell and dispose
° t , at not less than par, in coin, either of the descriptions sale of bonds
o

bonds o f the United States described in the act o f m
eails °f . reongress approved July fourteenth, eighteen hundred states notes.
auc seventy, entitled “£ n act to authorize the r e f u n d i n g ^ , voi. ie, p.
A
the national debt,” with like qualities, privileges, and
exemptions, to the extent necessary to carry this act into
n

effect, and to use the proceeds thereof for the purposes

a oresaid.

A n d all provisions o f law inconsistent with

e provisions o f this act are hereby repealed.
Approved, January 14, 1875.
is stat. u,

A C T O F J A N U A R Y 19, 1875.
’

p
h a p . 1 9 .—

An aci f0 rem ove

pt. 3, p. 3 0 2 .

lim itation restrictin g

e circulation o f banking associations issuing notes
Payable in gold.
n

1 enacted by the Senate and R ou se o f R en resen ta - . R epeal o f nm -

tlves of

j

/7>Z>

a± j
.

«

.

.

. „

r

it upon am oun t

/ cue united states o f America m Congress assem-ot circulation
Died. That
1 £
j•
n
i
of n a t i o n a l
> p i d t so much of section five thousand one hundred gold-banks.
“ d. ejghty-fiye o f the Revised Statutes of the United
or& eS. as
the circulation o f banking associations,
rganized for the purpose o f issuing notes payable in
F°

j severally to one million dollars, be, and the same is

ciap y ’ rePcaled; and each o f such existing banking assoino-10nS ^ a' . increase its circulating notes, and new banky
ex*r«t;lr ° i mtl° nS may be org anized, in accordance with
A
aw’ without respect to such limitation.

Approved,

January

15712°— i o -




-20

19, 1875.

~

5186'

ofTaperson0tor

SEC- 19. T hat every person, firm, association other than

banks national bank associations, and every corporation, State
3 4 secs' 3412, bank, or State banking association, shall pay a tax o f ten
4^
per centum on the amount o f their own notes used for

paid out

circulation and paid out by them.
ofTp erD
X so'ns3 S ec . ^0* That every such person, firm, association, cor­
date b a n k s , poration, State bank, or State banking association, and
etc., u s e d for
circulation.

also every national banking association, shall pay a like
J

P

1

J

see secs. 3412, tax of ten per centum on the amount o f notes o f anv persta tu te s.

son, firm, association

other than a national banking

association, or o f any corporation, State bank, or State
banking association, or o f any town, city, or municipal
corporation, used for circulation and paid out by them.
Returns to be
g E > 21. That the amount o f such circulating notes, and
C
commissioner 0f
of I n t e r n a 1
Revenue.
at

the tax due thereon, shall be returned, and the tax paid
.

7

\

the same time, and in the same manner, and with like

penalties for failure to return and pay the same, as pro­
vided by law for the return and payment of taxes on
deposits, capital, and circulation, imposed by the existing
provisions of internal revenue law.
*

*

*

*

*

Approved, February 8, 1875.
A C T O F M A R C H 3, 1875.
i8

stat. l ., C h a p . 167.— A n act to authorize the S ecreta ry o f the

pt. 3, p. 507.

,

,

v

i

Treasury to adjust and rem it certain taxes and penal­
ties claimed to he due fro m m ining and oth er corpora­
tions and f o r oth er purposes.

B e it enacted hy the Senate and H ouse o f R epresen ta­
tives o f the U nited States o f A m erica in C ongress ascertain penal- sembled, T hat the Secretary o f the Treasury be, and he
and

manufac-

tionsSremiP
tted.




is hereby, authorized and directed to settle and release
any claims for tax on circulation o f evidences o f indebt­
edness made against any mining, manufacturing or other
corporations other than against any national bankingassociation, State bank, or banking-association, by such
corporations paying the tax, without penalty, that shall

LAWS CONCERNING BANKING.

425

have accrued thereon since November first, eighteen hun­
dred and seventy-three; and that the provisions o f sec­
tion three thousand four hundred and twelve o f the Re- utelvi34i 2,tap!
e
vised Statutes o f the United States shall not be construed 374> construed,
m pending cases, except as to national banking-associa­
tions, to apply to such evidences o f indebtedness issued
and reissued prior to the passage o f this act, but said sec­
tion shall be construed as applying to such evidences of
indebtedness issued after the passage hereof.

Approved March

3, 1875.

A C T O F J U N E 3 0,1876.
C h a p . 156 .— A n act authorizing the appointment of re- 6319 stat- L *

ceivers of national hanks, and for other purposes.
t Be it enacted by the Senate and Rouse of Representa­
tives of the United States of America in Congress as­
sembled, That whenever any national banking association

when rer n ,
. •>
.
°
ceiver f o r a
snail be dissolved, and its rights, privileges, and fran- national bank
••
L
1 %
to 7 _
to be appomtcnises declared forfeited, as prescribed in section fifty-ed by compx
i
?
^
^ . troller of CurLW hundred and thirty-nine o f the Revised Statutes o± rency.
°
the United States, or whenever any creditor o f any na­

tional banking association shall have obtained a ju d g­
ment against it in any court of record, and made applica­
tion, accompanied by a certificate from the clerk o f the
court stating that such judgment has been rendered and
has remained unpaid for the space o f thirty days, or
whenever the Comptroller shall become satisfied o f theinsolvency o f a national banking association, he may, Revised statafter
-x £ -X
/r •
•
-x.
J 5utes, 5239.
.
hue examination o f its affairs, in either case, ap­
point a receiver, who shall proceed to close up such asso­
ciation, and enforce the personal liability o f the share­
holders, as provided in section fifty-tw o hundred and ut^ev^||4stat‘
8
thirty-four o f said statutes.
S ec . 2. That when any national banking association btVuyV sharei
ofU
shall have gone into liquidation under the provisions o f jj ^ ^ h o w to
section five thousand two hundred and twenty o f said

,R j ^ nstateT

statutes, the individual liability o f the shareholders prov
^or by section fifty-one hundred and fifty-one of utRe*.ia * stat'
g<
said statutes may be enforced by any creditor o f such
association, by bill in equity in the nature o f a creditor’s
i 7 brought by such creditor on behalf o f himself and
o all other creditors o f the association, against the share-




NATIONAL MONETARY COMMISSION.

426

holders thereof, in any court o f the United States having
original jurisdiction in equity for the district in which
Meeting o f
sharehol d e r s
after payment
expenses of receivership.

such association may have been located or established.
g EC> 3 , That whenever anv association shall have been
.

J

or shall be placed in the hands o f a receiver, as provided
in section fiftv-tw o hundred and thirty-four and other
J

.

*

ut?sV °^3 4^ secf^ons ° f said statutes, and when, as provided in section
iS5d
"
5236.’
’ fifty-tw o hundred and thirty-six thereof, the Comptroller
shall have paid to each and every creditor o f such asso­
ciation, 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 o f the circulating notes
o f such association shall have been provided for by depos­
iting lawful money o f the United States with the Treas­
urer o f the United States, the Comptroller o f the CurNo tice ofrency shall call a meeting of the shareholders o f such
association by giving notice thereof for thirty days in
a newspaper published in the town, city, or county where
the business o f such association was carried on, or if no
newspaper is there published, in the newspaper published
nearest thereto, at which meeting the shareholders shall
Election

of elect an agent, voting by ballot, in person or by proxy,

holders.7 share each share o f stock entitling the holder to one vote; and
when such agent shall have received votes representing
at least a m ajority o f the stock in value and number of
shares, and when any o f the shareholders o f the associaBond for pay-tion shall have executed and filed a bond to the satis-

ment of debts.

faction o f the Comptroller o f the Currency, conditioned
for the payment and discharge in full o f any and every
claim that may hereafter be proved and allowed against
such association by and before a competent court, and for
the faithful performance and discharge o f all and singu­
lar the duties o f such trust, the Comptroller and the rece^
ver shall thereupon transfer and deliver to such agent
to all the undivided or uncollected or other assets and prop-

a s ? e at 8
n sfer n°d
property
agent.

.

.

.

.

r-

ir

erty of such association then remaining in the hands or
subject to the order or control o f said Comptroller and
said receiver, or either o f them ; and for this purpose, said
tr°nsferm cn t °f

Comptroller and said receiver are hereby severally em­
powered to execute any deed, assignment, transfer, or
other instrument in writing that may be necessary and

Discharge of

proper; whereupon the said Comptroller and the said re­

am?1
receiver.6 r ceiver shall, by virtue o f




this act, be discharged and

LAWS CONCERNING BANKING.

427

released from any and all liabilities to such association,
and to each and all o f the creditors and shareholders
thereof; and such agent is hereby authorized to sell, com­
promise, or compound the debts due to such association
upon the order o f a competent court o f record or o f the
United States circuit court for the district where the
business o f the association was carried on. Such agent
shall hold, control, and dispose o f the assets and property

agent

o f any association which he may receive as hereinbefore
provided for the benefit o f the shareholders o f such asso­
ciation as they, or a majority of them in value or number
of shares, may direct, distributing such assets and prop­
erty among such shareholders in proportion to the shares
held by each; and he m ay, 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 dis­
tribute the assets and property in his hands. In select- Administra•
1
r
J
. .
tors, guardians,
ing an agent as hereinbefore provided, administrators or etc., may act
°

’

.

i

n

c ho o s i ng

executors o f deceased shareholders may act and sign as agent,
the decedent might have done if living, and guardians
may so act and sign for their ward or wards.
S ec . 4. That the last clause of section fifty-two hun- I*® d ®t
Tis® i
ored and five o f said statutes is hereby amended by amended,
adding to the said section the follow ing proviso:

“And 'provided, T hat i f any shareholder or sharehold- ofSg{fa°|h *der
®
ers of such bank shall neglect or refuse, after three refusing to pay

m

,,

,

7

assessment.

months notice, to 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 shareholders 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 newspaper 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.”
S ec. 5. T hat all United States officers charged with the

Fraudulent

receipt or disbursement o f public moneys, and all officers s t a m p e a as
°

national banks, shall stamp or write in plain letters theetc°,ubyerd s ei

vord

counterfeit” “ altered” or “ worthless,” upon all a m T ^ a n ^ of*

raudulent notes issued in the form of, and intended t o lKtrS
circu ate as money, which shall be presented at their
P aces

business; and if such officers shall wrongfully

officers liable

stamp any genuine note o f the United States, or o f the stamping.g




y

national banks, they shall, upon presentation, redeem
such notes at the face-value thereof.
S ec . 6. T hat all savings-banks or savings and trust
companies organized under authority o f any act o f Con­
gress shall be, and are hereby, required to make, to the
Comptroller o f the Currency, and publish, all the reports
Revised Stat­ which national banking associations are required to make
utes,5211,5212,
5213.
and publish under the provisions of sections fifty-two
Penalties for
failin g to re­ hundred and eleven, fifty-two hundred and twelve and
port.

fifty-tw o hundred and thirteen, o f the Revised Statutes,

and shall be subject to the same penalties for failure to
make or publish such reports as are therein provided;
which penalties may be collected by suit before any court
o f the United States in the district in which said savings
Savings and
other banks in
D istrict o f Co­
lumbia m a d e
subject to cer­
tain laws.

banks or savings and trust companies may be located.
A n d all savings or other banks now organized, or which
shall hereafter be organized, in the District o f Columbia,
under any act o f Congress, which shall have capital stock
paid up in whole or in part, shall be subject to all the
provisions o f the Revised Statutes, and o f all acts o f
Congress applicable to national banking associations, so
far as the same may be applicable to such savings or other

Paid-in capi­
tal o f existing
savings banks.

banks: Provided , T hat such savings banks now estab­
lished shall not be required to have a paid-in capital ex­
ceeding one hundred thousand dollars.
Approved, June 30, 1876.

A C T O F M A R C H 3, 1877.
353 9

Stat‘ L-’ C hap . 105.— A n act making appropriations for sundry
civil expenses of the Government for the -fiscal year
ending June thirtieth, eighteen hundred and seventyeight, and for other purposes.
*

*

*

*

*

BUREAU OF ENGRAVING AND PRINTING.
Engraving

F or labor and expenses o f engraving and printing,

B
ureau1 Hnting nam ely: For labor (by the day, piece, or contract in­
cluding labor o f workmen skilled in engraving, trans­




ferring, plate-printing, and other specialties necessary
for carrying on the work o f engraving and printing notes,
bonds, and other securities o f the United States, the pay
for such labor to be fixed by the Secretary o f the Treas­
ury at rates not exceeding the rates usually paid for such

LAWS CONCERNING BANKING.

429

work; and for other expenses of engraving and printing
notes, bonds, and other securities o f the United States;
for paper for notes, bonds, and other securities o f the
United States, including m ill expenses, boxing and trans­
portation ; for materials other than paper required in the
work o f engraving and p rinting; for purchase o f en­
gravers’ tools, dies, rolls, and plates, and for machinery
and repairs o f the same, and for expenses o f operating
macerating machines for the destruction of the United
States notes, bonds, national bank notes, and other obli­
gations o f the United States authorized to be destroyed
eight hundred

thousand

dollars: Provided , T hat

the

Proviso,
Proviso,

work be performed at the Treasury Departm ent: And
provided further , That it can be done as cheaply, as per­
fectly, and as safely and all contracts already made shall
be faithfully carried out.
^

sjc

sje

jfc

$

Approved, March 3, 1877.
A C T O F F E B R U A R Y 14, 1880.
C h a p . 25.— A n act authorizing the conversion of national 6621 stat- Ij >

gold hanks.
Be itjenacted hy the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, T hat any national gold bank organized under the ba^ ional goId
provisions o f the laws o f the United States, may, in the
manner and subject to the provisions prescribed by sec­
tion fifty-one hundred and fifty-fou r o f the Revised
#

/i

t

*

/> i

Conversion,

Revised

Ul6S)

stat-

c) 1 «J T «

statutes o f the United States, for the conversion o f banks
incorporated under the laws o f any State, cease to be a
gold bank, and become such an association as is author­
ized by section fifty-one hundred and thirty-three, for u l5
t^|v si33stat'
carrying on the business o f banking, and shall have the
same powers 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 ,
T hat all certificates o f organization which shall be issued
under this act shall bear the date of the original organiza­
tion o f each bank respectively as a gold bank.

Approved, February 14, 1880.




Proviso.

NATIONAL MONETARY COMMISSION.

430

A C T O F F E B R U A R Y 26, 1881.
3521 Stat'

L” C

h a p

82.— A n act defining the verification of returns of

.

national banks.

Revised

Be it enacted by the Senate and House o f Representa­
tives of the United States of America in Congress assemstat- bled. T hat the oath or affirmation required by section

v e r ific a t io n fifty-two
o f returns o f .
national banks, verifying

hundred and eleven o f the Revised Statutes,
.

.

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 located,
or any other officer having an official seal, authorized in
such State to administer oaths, shall be a sufficient verifi-

Po is .
rv o

cation as contemplated by said section fifty-two hundred
and eleven: Provided , That the officer administering the
oath is not an officer o f the bank.
ApjDroved, February 26, 1881.
A C T O F J U L Y 12, 1882.

22 stat.

l., Chap.

290.— n act to enable national-banking associa­
A

tions to extend their corporate existence, and for other
purposes.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assembankiVg°as8o-

That any national-banking association organized

thorizedn exi under the acts o f February twenty-fifth, eighteen hundred
to
el^tenceP
°rate anc^ sixty-three, June third, eighteen hundred and sixty-

c,fr>2 isastSt'four’ anc^ February fourteenth, eighteen hundred and
oc>’• 2Revnfede*£>kty, or under sections fifty-one hundred and thirtyf ia4
Ut5i 3513p’ three, fifty-one hundred and thirty-four, fifty-one hunstatutes^oiluf ^ re(^ an(l thirty-five, fifty-one hundred and thirty-six,
p. 993; R evised and fifty-one hundred and fifty-four o f the Revised
Statutes, o lo 4 ,
p. 990.

J

J

.

.

.

.

Statutes o f the United States, may, at any time within
the two years next previous to the date o f the expiration
o f its corporate existence under present law, and with

Terms o f sue-

the approval o f the Comptroller o f the Currency, to be
granted, as hereinafter provided, extend its period o f suecession 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 association,
and shall have succession for such extended period, unless

Forfeiture o f




sooner dissolved by the act o f shareholders owning twothirds o f its stock, or unless its franchise becomes forfeited
by some violation o f law, or unless hereafter modified or
repealed.

431

LAWS CONCERNING BANKING.

(Sections 2, 3, and 4 provide that the amended articles
o f association must receive the written consent o f share­
holders owning not less than two-thirds o f the capital
stock, and shall not be valid until the Comptroller shall
have certified his approval, after making a special exam­
ination o f the association to determine its condition; and
that any association so extending the period o f its succes­
sion “ shall continue to be in all respects the identical
association it was before the extension o f its period o f
succession.”
(Section 5 provides that any shareholder not assenting
to the amended articles shall be entitled to receive the
appraised value o f his shares, and that his shares shall
then be sold at public sale.)

S . G.

ec
That the circulating notes o f any association Redemption
.
0
y
and destruc•o extending the period o f its succession which shall have non of certain
s

1

°

r m

m

c ir c u la tin g

°een issued to it prior to such extension shall be redeemed notes,
at the Treasury o f the United States, as provided in r>is statutes,
section three of the act o f June twentieth, eighteen hun­
dred and seventy-four, entitled “ A n act fixing the
amount o f United States notes, providing for redistri­
bution o f national-bank currency, and for other pur­
poses,” and such notes when redeemed shall be forwarded
to the Comptroller o f the Currency, and destroyed as
now provided by la w ; and at the end o f three years from
the date o f the extension o f the corporate existence o f
each bank the association so extended shall deposit law- ja^fuj5 money
ful money with the Treasurer of the United States suf- unnedrs t ates
aS
hcient to redeem the remainder of the circulation which

circulating

y a s outstanding at the date of its extension, as provided n j^,'il£d stat­
o
in sections fifty-two hundred and twenty-two, fifty-two
8’522|222>
hundred and twenty-four, and fifty-two hundred and 101().
twenty-five o f the Revised Statutes; and any gain that fanurCStorpre1
may arise from the failure to present such circulating ^emption ft°o
notes for redemption shall inure to the benefit of the |°ur®
f
°ed
e
United States; and from time to time, as such notes st§Cw' notes to
are redeemed or lawful money deposited therefor as pro- ungulshabre
^ided herein, new circulating notes shall be issued as ^ “ st^of plates
provided by this act, bearing such devices, to be ap* £°C °°se| d
el“d
proved by the Secretary o f the Treasury, as shall make.T re.a.sury t>
y
1 11 readily distinguishable from the circulating notes ciations.
1101
heretofore issued: Provided , however, T hat each banking association which shall obtain the benefit o f this act
diall reimburse to the Treasury the cost o f preparing the
plate or plates for such new circulating notes as shall
he issued to it.




Proviso,

432

NATIONAL MONETARY COMMISSION.

(Section 7 provides that any bank which does not avail
itself o f the provisions o f this act shall be wound up as
i f the shareholders had voted to go into liquidation, that
it shall within six months deposit with the Treasurer of
the United States lawful money sufficient to redeem all
its outstanding circulating notes, and shall thereupon
be discharged from all liability therefor, and that the
bonds deposited to secure the same shall then be reas­
signed to it.)
seS ec. 8. That national banks now organized or liere-

Bpuds fo r
cu r ity o f circ u -

t

®

lation not to after organized, having a capital o f one hundred and
t°a iths°t o cki: fifty thousand dollars, or less, shall not be required to
C
banks with keep on deposit or deposit with the Treasurer o f the
ed in excess to United States United States bonds in excess of one-fourth

re d u ce circ u la -

tion.

.

.

o f their capital stock as security for their circulating
notes; but such banks shall keep on deposit or deposit
with the Treasurer o f the United States the amount of
bonds as herein required.

A n d such of 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 la w : Provided , That the amount o f such
Circulation in circulating notes shall not in any case exceed ninety per
ceed
90 p er centum o f the par value o f the bonds deposited as herein

cen tu m o f p a r

Jr>

1

vaiue of bonds provided ; Provided further, T hat the national banks
Provisos.

which shall hereafter make deposits of lawful money for
the retirement in full of their circulation shall at the
time o f their deposit be assessed for the cost o f trans­
porting and redeeming their notes then outstanding, a
sum equal to the average cost o f the redemption of
national-bank notes during the preceding year, and shall
thereupon pay such assessment.

A n d all national banks

which have heretofore made or shall hereafter make de­
posits o f lawful money for the reduction o f their circuAssessments iation shall be assessed and shall pay an assessment in
dempuon r®
f

manner specified in section three o f the act approved

outstandfngon J une twentieth, eighteen hundred and seventy-four, for
i()is statutes, the cost o f transporting and redeeming their notes




redeemed from such deposits subsequently to June thir­
tieth, eighteen hundred and eighty-one.
1238 Statutes’

S ec. 9. T hat any national-banking association now or-

ocirculationg anized, or hereafter organized, desiring to withdraw its
fav fu
n v iep°m
oney circulating notes, upon a deposit o f lawful money with
orderf° r
ofn de* *he Treasurer o f the United States, as provided in section
posit.
four o f the act o f June twentieth, eighteen hundred and
seventy-four, entitled

“An

act fixing the amount o f

433

LAWS CONCERNING BANKING.

United States notes, providing for a redistribution of
national-bank currency, and for other purposes,” or as
provided in this act, is authorized to deposit lawful
money and withdraw a proportionate amount o f the bonds
held as security for its circulating notes in the order o f
such deposits: and no national bank which makes any
i

.in c re a se

of

J c ir c u la tio n ,

i

deposit o f lawful money in order to withdraw its circu1 ,.

,

lating notes shall be entitled
•

T

.

circulation for the period o f

w hen.
.
.
L im it to d e­
to receive any increase o f i t s p o s it o f la w fu l
.
^
.
m oney in any
six months from the time it on e m onth,

made such deposit o f lawful money for the purpose afore­
said: Provided , That not more than three millions o f
1 ii

7

.

P ro v iso s.
B on d s ca lled
red em p tion
e
e x e m p t fro m
further,p ^ ro v ^ s io n s o f

noiiars of lawful money shall be deposited during any fo r

j

1

.

*1

.

calendar month tor this purpose: And provided

J

That the provisions o f this section shall not apply to ^Revised^statbonds called for redemption by the Secretary o f thesieo, p ^ m I
Treasury, nor to the withdrawal o f circulating notes in 123.
consequence thereof.
S ec. 10. That upon a deposit o f bonds as described by

A s s o c ia tio n

sections fifty-one hundred and fifty-nine and fifty-one b ond s, to ^
re­
hundred and sixty, except as modified by section four o f fngve notes'1 ’ in
an act entitled “ A n

act fixing the amount of U n ite d blank’ etc‘

States notes, providing for a redistribution o f the na­
tional-bank currency, and for other purposes,” approved
June twentieth, eighteen hundred and seventy-four, and
as modified by section eight, o f this act, the association
making the same shall be entitled to receive from the
Comptroller o f the Currency circulating notes o f differ­
ent denominations, in blank, registered and countersigned
as provided by law,, equal in amount to ninety per centum
° f the current market value, not exceeding par, of the

c ir c u la tio n

United States bonds so transferred and delivered, and atoqper
n° time shall the total amount o f such notes issued to any

cen te o f

stock!"1 ca p ita l

such association exceed ninety per centum of the amount
at such time actually paid in o f its capital stock; and th e utRevigeds t a t provisions o f sections fifty-one hundred and seventy-onea9a-’ repealed;
a n rl

J

ccx

1U ntty-one hundred and seventy-six of the

J

.
_
R e v is e d

ibid.,

1000,

o l 7 6 , p.
repealed.

Statutes are hereby repealed.
S ec. 11. T hat the Secretary o f the Treasury is hereby L Three and a

anfV>

J

.

J

J h a lf

per

cen t

‘uunorized to receive at the Treasury any bonds of t h e c a s received
T T n ito 1 o x
p cf

ii.

a

uea states bearing three and a h alf per centum
„

j

,

•

0

L

•

In ex ch a n g e fo r
inter-? per ce n t registered bond s.

,. na to issue in exchange therefor an equal amount of

registered bonds o f the United States o f the denomina­
tions o f fifty, one hundred, five hundred, one thousand,
and

ten th o u s a n d




d o lla r s , o f su ch

fo r m

as h e m a y

pre-

434

NATIONAL MONETARY COMMISSION.

scribe, bearing interest at the rate o f three per centum
per annum, payable quarterly at the Treasury o f the
E xem p tion
f r o m tax, etc.

United States.

Such bonds shall be exempt from all

taxation by or under State authority, and be payable at
P rov iso.

the pleasure o f the United States: Provided , That the
bonds herein authorized shall not be called in and paid
so long as any bonds o f the United States heretofore
issued bearing a higher rate o f interest than three per
centum, and which shall be redeemable at the pleasure o f
the United States, shall be outstanding and uncalled.

The

last o f the said bonds originally issued under this act, and
their substitutes, shall be first called in, and this order
o f payment shall be followed until all shall have been
paid.
G old ce r tifi­
ca tes issued in
exch a n g e f o r
d e p o s its
of
gold coin .

S ec. 12.

T hat the Secretary o f the Treasury is author­

ized and directed to receive deposits o f gold coin with the
Treasurer or assistant treasurers o f the United States, in
sums not less than twenty dollars, and to issue certificates
therefor in denominations o f not less than twenty dollars
each, corresponding with the denominations o f United

G old receiv ed States notes.
The coin deposited for or representing the
h e l d f o r red e m p t i o n o f certificates o f deposits shall be retained in the Treasury
certifica tes.
C e r t ific a t e s for the payment o f the same on demand.
Said certifi­
held b y hank­
i n g a s s o c i a ­ cates shall be receivable for customs, taxes, and all public
t i o n s cou n ted
as p a rt o f la w ­ dues, and when so received may be reissued; and such
fu l reserve.
A s s o cia tio n s certificates, as also silver certificates, when held by any
p r o h ib ite d
fro m
m em ber­ national-banking association, shall be counted as part of
sh ip in cle a r­
in g houses n ot its lawful reserve; and no national-banking association
re c e iv in g gold
an d s ilv e r ce r­ shall be a member o f any clearing-house in which such
tificates in s e t­
tlem en t o f b a l­ certificates shall not be receivable in the settlement o f
ances.
P r o v iso .
clearing-house balances: Provided , T hat the Secretary of
S u sp en sion o f
issue o f gold
c e r tific a te s ,
w hen.

the Treasury shall suspend the issue o f such gold certifi­
cates whenever the amount o f gold coin and gold bullion
in the Treasury reserved for the redemption o f United
States notes falls Jielow one hundred millions o f dollars;

R evised S ta t­
utes, 520 7 , p.
1007.

and the provisions o f section fifty-tw o hundred and seven
o f the Revised Statutes shall be applicable to the certifi­
cates herein authorized and directed to be issued.

P en a lty fo r
fa ls e ly c e r t ify ­
ing ch ecks.

S ec.

13. T hat

any

officer,

clerk,

or

agent

of

any

national-banking association who shall w illfu lly violate
the provisions o f an act entitled “ A n act in reference to
certifying checks by national banks,” approved March
third, eighteen hundred and sixty-nine, being section

15 S ta tu tes,
3 5 5 ; R evised
S ta tu tes, 5208,
p. 1007.




fifty-two hundred and eight o f the Revised Statutes o f
the United States, or who shall resort to any device, or

LAWS CONCERNING BANKING.

435

receive any fictitious obligation, direct or collateral, in
order to evade the provisions thereof, or who shall certify
checks before the amount thereof shall have been regu­
larly entered to the credit o f the dealer upon the books o f
the banking association, shall be deemed guilty o f a mis­
demeanor, and shall, on conviction thereof in any circuit
or district court o f the United States, be fined not more
than five thousand dollars, or shall be imprisoned not
more than five years, or both, in the discretion o f the court.

S ec.

14. T hat Congress may at any time amend, alter,

or repeal this act and the acts o f which this is amendatory.

Approved July
ACT

12, 1882.
OF

M ARCH

3, 1883.

C h a p . 121.— A n act to reduce internal-revenue taxation, 4g|2 stat- L >

and for other purposes.
t
it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That the taxes herein specified imposed by the laws enue* taxes rre<
now in force be, and the same are hereby, repealed, as lln ^ e tc . on ’
hereinafter provided, nam ely: On capital and deposits
° f banks, bankers, and national banking associations, ex­
cept such taxes as are now due and payable; and on and
after the first day o f July, eighteen hundred and eighty- b a n P
a“ ciiecks!
three, the stamp tax on bank checks, drafts, orders, and etcvouchers, * * *
*

*

Approved, March’ 3,

*

*

1883.

A C T O F M A R C H 3, 1885.
C iia p . 330.— A n act to amend section eighteen hundred ^

and eighty-nine of chapter one, title twenty-three, of
the Revised Statutes of the United States, relative to
general incorporation acts of Territories.
(T his act amends section 1889 o f the Revised Statutes
so as to authorize territorial legislatures to enact general
incorporation acts to permit persons to associate them-

''el\es together as bodies corporate for * * * bank­
ing * * * ^
—
Approved, March 3, 1885.




stat. L-.

NATIONAL MONETARY COMMISSION.

436

A C T O F M A R C H 29, 1886.
24 stat. l ., 8. C h a p . 28.— A n act additional to an act entitled “ A n act

to 'provide a national currency secured by a pledge of
United States bonds, and to provide for the circulation
and redemption thereof,” passed June third, eighteen
hundred and sixty-four.
B e it enacted by the Senate and House of Representa­
tives o f the United States of America in Congress ascertify1respect sembled, That whenever the receiver of any national bank
bankTo'besowduly appointed by the Comptroller o f the Currency, and
tionfetc. ?xecu who shall have duly qualified and entered upon the dis­
charge o f his trust, shall find it in his opinion necessary,
in order to fully 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 at­
taching 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
uydtoS
purchase!

the Currency, together with a request for the right and
authority to use and employ so much o f the money o f
said trust as may be necessary to purchase such property
at such sale.

submitted to

S ec.

T hat such request, if approved by the Com p-

fhlfTreasury of droller o f the Currency, shall be, together with the certifi­
cate o f facts in the case, and his recommendation as to
the amount o f money which, in his judgment, should be
so used and employed, submitted to the Secretary o f the

proved allowed Treasury,

and if the same shall likewise be approved by

byN cP le e ^ m ’ the request shall be by the Comptroller o f the CuroU e
trt°o b

r

T r e a s u l e rency allowed, and notice thereof, with copies o f the re­
united states, quest, certificate o f facts, and indorsement o f approvals,
shall be filed with the Treasurer o f the United States.

empowered01t^o S ec. 3.

That whenever any such request shall be al-

ofe
bank8 the l ° wed as herein before provided, the said Comptroller o f
fo^u
purpose.
the Currency shall be, and is, empowered to draw upon




and from such funds o f any such trust as may be de­
posited with the Treasurer o f the United States for the
benefit o f the bank in interest, to the amount as may be
recommended and allowed and for the purpose for which

437

LAWS CONCERNING BANKING.

such allowance was m ade: Provided , however, That all

payments to

payments to be made for on account o f the purchase o f ee ™
om troner dfany such property and under any such allowance sh a llrectbe made by the Comptroller o f the Currency direct, with
the approval o f the Secretary o f the Treasury, for such
purpose only and in such manner as he may determine
and order.
Approved, March 29, 1886.
A C T O F M A Y 1, 1886.
C h a p . 73. — A n act to enable national banking associa- 1824 stat- L-’

tions to increase their capital stock and to change their
names or locations.
Be it enacted by the Senate and Ilouse of Representa­
tives of the United States of America in Congress assem­
bled, T hat any national banking association m ay, with mayVncreasefts
the approval of the Comptroller o f the Currency, by the £® jtaI stock>
P
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 lim it fixed in its origiual articles o f association and determined by said Com p­
troller; and no increase of the capital stock o f any na-except i°nrethe
tional banking association either within or beyond the “ a°? a
£dherein
limit fixed in its original articles o f association shall be
made except in the manner herein provided.
S e c . 2 . T hat any national banking association mav t4 May change
.

J
0
#
#J its nam or loe
change its name or the place where its operations o f dis- cation,
y

count and deposit are to be carried on, to any other
place within the same State, not more than thirty miles
distant with the approval o f the Comptroller o f the Currency, by the vote o f shareholders owning two-thirds o f
the stock o f such association.

A

duly authenticated

Notice

of

notice o f the vote and o f the new name or location selected sent w
here,
shall be sent to the office o f the Comptroller o f the Cur­
rency ; but no change o f name or location shall be valid ^ Change n o t
^
until the Comptroller shall have issued his certificate of w
hen,
approval o f the same.
S e c . 3. That all debts, liabilities, rights, provisions, and

powers o f the association under its old name shall devolve
upon and inure to the association under its new name.
S e c . 4. T hat nothing in this act contained shall be so Bank not re,
j
leased from liaconstruea as in any manner to release any national bank- b i l i t y by
•

#

#

**

m g association under its old name or at its old location




change

NATIONAL MONETARY COMMISSION.

438

from any liability, or affect any action or proceeding in
law in which said association may be or become a party
or interested.
Approved, M ay 1, 1886.
A C T O F M A R C H 3, 1887.
55I4 stat' L" C h a p . 373.— A n act to amend the act of Congress ap­
proved March third, eighteen hundred and seventyfive, entitled “A n act to determine the jurisdiction of

circuit courts of the United States and
removal of causes from State courts,
purposes and to further regulate the
circuit courts of the United States,
purposes A
H
e

*

*

to regulate the
and for other
jurisdiction of
and for other

*

*

Nati onal
S ec. 4 . That all national banking associations estabb^oks deem
ed
0
citizens forcer- lished under the laws of the United States shall, for the
andjubject to purposes o f all actions by or against them, real, personal,
state courts,
or mixed, and all suits in equity, be deemed citizens of
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 provisions of this section shall not be held to affect
the jurisdiction o f the courts of the United States in cases
commenced by 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.— This section was reenacted August 13, 1888 (25 Stat.
L., 437).

*

*

*

*

*

Approved, March 3, 1887.
A C T O F M A R C H 3, 1887.
24

stat.

l .,

An act to amend sections five thousand one
hundred and ninety-one and five thousand one hundred
and ninety-two of the Revised Statutes of the United
States, and for other purposes.

C h a p . 378.—

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assemsoSo^opu'fa8 bled, T hat whenever three-fourths in number of the
added “ oy“ r ®national banks located in any city o f the United States
e
serve ” cities. iiaving a population o f fifty thousand people shall make




LAWS CONCERNING BANKING.

439

application to the Comptroller o f the Currency, in writ. ing, asking that the name o f 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 utesjsecs. fi9L
and ninety-two of the Revised Statutes, the Com ptroller5192, p 1004,
shall have authority to grant such request, and every bank
located in such city shall at all times thereafter have on
hand, in law ful money o f the United States, an amount
equal to at least twenty-five per centum o f its deposits, as
provided in sections fifty-one hundred and ninety-one and
fifty-one hundred and ninety-five o f the Revised Statutes.
S ec . 2. That whenever three-fourths in iiumber o f the 2ooooe hp u
o op S
national banks located in any city of the United States j£tj°e <“ Antral
n
having a population o f two hundred thousand peoplereserve” cltiesshall make application to the Comptroller o f the Cur­
rency, in writing, asking that such city may be a central
reserve city, like the city o f New Y ork, in which one-half
of the lawful-money reserve o f the national banks located
in other reserve cities may be deposited, as provided in
section fifty-one hundred and ninety-five o f the Revised uteS iIcd5i95"
e
,v
Statutes, the Comptroller shall have authority, with theP-1P04approval o f the Secretary o f the Treasury, to grant such
request, and every bank located in such city shall at all
times thereafter have on hand, in lawful money o f the
United States, twenty-five per centum of its deposits, as
provided in section fifty-one hundred and ninety-one o f
the Revised Statutes.
S ec. 3. That section three o f the act o f January four• i

i t

i

~

^

L ega l-ten d er
n o te s m ay be

teenth, eighteen hundred and seventy-five, entitled “ A n r e d e e m e d at
'
*}
—
*
•
'
S rh F ra n cisco
act to provide for the resumption o f specie payments,” be, ^voi. ‘ is, p.
and the same is, hereby amended by adding after th e ”
words “ New Y ork ” the words “ and the city of San
Francisco, California.”
Approved, March 3, 1887.
A C T O F M A Y 2, 1890.
C h a p . 182.— An act to provide a temporary government

stat. l .,

for the Territory of Oklahoma, to enlarge the jurisdic­
tion of the United States Court in the Indian Territory,
and for other purposes.

Sec. 17. That the provisions o f title sixty-two of the
Revised Statutes o f the United States relating to national N a t i o n a l
”
banks.
banks, and all amendments thereto, shall have the same R evised stat7
7
u t es
Title
force and effect in the Territory o f Oklahoma as elsewhere nxn, pp. 99215712°—10----- 30




NATIONAL MONETARY COMMISSION.

440
P ro v iso .
Q u a lifica tion s
o f d irectors,

in the United States: Provided , That persons otherwise
’
^
qualified to act as directors shall not be required to have
resided in said Territory for more than three months
immediately preceding their election as such.
*
*
*
*

co n s titu tio n

S ec . 31.

*

*

*

The

Constitution

of

*

the

United

u n i t e d °fstates®^ates
m ade

a p p iica -

anc^
general laws of the United States which
prohibit crimes and misdemeanors in any place within the
sole and exclusive jurisdiction o f the United States, except
in the District of Columbia, and all laws relating to na­
tional banking associations shall have the same force and
effect in the Indian Territory as elsewhere in the United
States; * * *
*
*
*
*
*
Approved, M ay 2, 1890.

A C T O F J U L Y 14, 1890.
26

stat. l ., C h a p . 708.— A n act directing the purchase of silver bul­

lion and the issue of Treasury notes thereon, and for
other purposes.
*
B ala n ces o f
n a t i o n a l-b a n k

*

*

*

*

S ec . 6. That upon the passage o f this act the balances

^

®

-

t o

deposits for the standing with the Treasurer of the United States to the
red em p tion o f
°
.
.
circ u la tio n t o respective credits o f national banks for deposits made to
be cov ered in to
r
,
T rea su ry .
redeem the circulating notes of such banks, and all de­
posits thereafter received for like purpose, shall be cov­
ered into the Treasury as a miscellaneous receipt, and the
re<^em S certa in

Treasury of the United States shall redeem from the gen-

erafcash™sen'" era^ cas^
the Treasury the circulating notes o f said
banks which may come into his possession 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
R e i m b u r s e - notes
T rea su rer from

will be issued in their place, reimbursement o f their
amount shall be made to the Treasurer, under such regula-

b a n k n o t e s - tions
.
R ed em p tion ac- „
co u n t.”
from




as the Secretary o f the Treasury may prescribe,
.

,.

.

,

,

.

an appropriation hereby, created, to be known as
National bank notes: Redemption account, but the pro­
visions of this act shall not apply to the deposits received
under section three o f the act of June twentieth, eighteen
hundred and seventy-four, requiring every National bank
to keep in lawful money with the Treasurer of the United
States a sum equal to five per centum o f its circulation to

441

LAWS CONCERNING BANKING.

be held and used for the redemption o f its circulating topper* cent
notes; and the balance remaining o f the deposits so cov-depositor
ered shall, at the close of each month, be reported on the
i 23n’vo1'
monthly public debt statement as debt o f the United
States bearing no interest.
C V f i„ce «i
S ec . 7. That this act shall take effect thirty days from
and after its passage.”

Operation,

Approved, July 14, 1890.
A C T O F M A Y 12, 1892.
C h a p . 71.— A n

act to authorize a national bank at Chi- 3327 stat Lca9°i Illinois, to establish a branch office upon the
grounds of the World's Columbian Exposition.

§Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, T hat any national bank located in the city o f

Chicago, 1 1
1.
Chicago and State o f Illinois may be designated by the bank may open
W orld ’s Columbian Exposition to conduct a banking world's coium-

rv
ffi

••

i

i

.

°mce upon the exposition grounds, and upon such designation being approved by the Comptroller of the Cur-

b i a n Exposition .

rency, said bank is hereby authorized to open and conduct
such office as a branch o f the bank, subject to the same
restrictions and having the same rights as the bank to
which it belongs: Provided , That the branch office au- n^viso.^ ^
thorized hereby shall not be operated for a longer period privilege.
than two years, beginning not earlier than July first,
eighteen hundred and ninety-two, and closing not later
than July first, eighteen hundred and ninety-four.

Approved, M ay 12, 1892.
A C T O F J U L Y 28, 1892.
C h a p . 317.— A n act to amend the national bank act in 27 stat. l .,
.
.
322.
* providing for the redemption of national bank notes

stolen from or lost by banks of issue.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, That the provisions o f the Revised Statutes o f re^ ational cur‘
y
ti“

tional bank notes, shall apply to all natonal bank notesstolen notesthat have been or may be issued to, or received by, any
national bank, notwithstanding such notes may have been




a«
-

the United States, providing for the redemption o f n a -ofB ^
eI

NATIONAL MONETARY COMMISSION.

442

lost by or stolen from the bank and put in circulation
without the signature or upon the forged signature of the
president or vice-president and cashier.
Approved, July 28, 1892.
A C T O F A U G U S T 3, 1892.
27
345.

stat. l ., C hap . 3G0.— An act to amend an act entitled “ A n act au-

thorizing the appointment of receivers of national
hanks, and for other p u rp o sesa p p ro ved June thir­
tieth, eighteen hundred and seventy-six.
(This act amended section 3 o f the act o f June 30 ,1 8 7 0 ,
and was in turn amended by the act o f March 2, 1897,
which see.)
A C T O F A U G U S T 13, 1894.

0?“8 stat L-’ C hap . 281 .— An act To subject to State taxation national-

hank notes and United States Treasury notes.
banknotesD
and ^ e ^ enac^ < by the Senate and House of Representae^
United states tives of the United States of America in Congress asseman d oth er notes
and certifica tes
su b ject to sta te

hied, That circulating notes of national banking associa7
,
®
&
tions and United States legal-tender notes and other notes

ta x as m oney.

and certificates o f 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 T erritory: 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 ec . 2. That the provisions o f this A ct shall not be
deemed or held to change existing laws in respect of the
taxation of national banking associations.
Approved, August 13, 1894.
A C T O F M A R C H 2, 1&97.

6q29 stat.




l ., C hap . 354.— A n

act To amend an act entitled “A n act
authorizing the appointment of receivers of national
hanks, and for other purposes,” approved June thir­
tieth, eighteen hundred and seventy-six, as amended
hy an act approved August third, eighteen hundred
and ninety-two.

Be it enacted hy the Senate and House of Representa­
tives of the United States of America in Congress assem­
I

443

LAWS CONCERNING BANKING.

bled, That section three of an Act entitled “ A n A ct au­

National

banks in re ­

hands.
thorizing the appointment of receivers o f national banks, ceivers’ 19, p.
Vol.
63.
and for other purposes,” approved June thirtieth, eight­ Vol. 27, p.

een hundred and seventy-six, as amended by an A ct ap­ 345.
proved August third, eighteen hundred and ninety-two,
be, and hereby is, amended so as to read as follow s:
S e c . 3. That whenever any association shall have been

or shall be placed in the hands o f a receiver, as provided
ln section fifty-two hundred and thirty-four and other
sections o f the Revised Statutes o f the United States,
and when, as provided in section fifty-two hundred and

Winding .up
business.
Revised Stat u t e s , se cs.
5234, 5236, p.
1018.

thirty-six thereof, the Comptroller o f the Currency shall
have paid to each and every creditor o f such association,
not including shareholders who are creditors o f such as­
sociation, whose claim or claims as such creditor shall
have been proved or allowed as therein prescribed, the
full amount o f such claims, and all expenses o f the re­
ceivership and the redemption o f the circulating notes
° f such association shall have been provided for by de­
positing lawful money o f the United States with the
Treasurer of the United States, the Comptroller o f the
Currency shall call a meeting o f the shareholders of such
association by giving notice thereof for thirty days in a
newspaper published in the town, city, or county w here
r
fhe 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 o f such association, or whether

Share-

hoiders’ meet­
ing to decide
if receiver or
agent wind up
affairs.

an agent shall be elected for that purpose, and in so deter­
mining the said shareholders shall vote by ballot, in per­
son or by proxy, each share o f stock entitling the holder
lo one vote, and the majority o f the stock in value and
number o f shares shall be necessary to determine whether
the said receiver shall be continued, or whether an agent
S e t e ­
shall be elected. In case such majority shall determine me nt tby l re­
ceiver.
that the said receiver shall be continued, the said re­
ceiver shall thereupon proceed with the execution of his
trust, and shall sell, dispose of, or otherwise collect the
assets o f 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
Election
remain applicable. In case the said meeting shall, by the agent.
vote o f a majority of the stock in value and number of




of

444

NATIONAL MONETARY COMMISSION.

shares, determine that an agent shall be elected, the said
meeting shall thereupon proceed to elect an agent, voting
by ballot, 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 o f stock
in value and number shall be declared the agent for the
purposes hereinafter provided; and whenever any o f the
i n d e mn i t y
holders.

shareholders o f the association shall, after the election of
such agent, have executed and filed a bond to the satisfaction o f the Comptroller of the Currency, conditioned
for the payment and discharge in full o f each and every
claim that may thereafter be proved and allowed by and

before a competent court, and for the faithful perform­
ance o f all and singular the duties of such trust, the
Transfer of Comptroller and the receiver shall thereupon transfer and

Assets to agent.

A

deliver to such agent all the undivided or uncollected or
other assets o f such association then remaining in the
hands or subject to the order and control o f said Comp­
troller and said receiver, or either o f them ; and for this
purpose said Comptroller and said receiver are hereby
severally empowered and directed to execute any deed,
assignment, transfer, or other instrument in writing that
may be necessary and proper; and upon the execution and
delivery o f such instrument to the said agent the said
Comptroller and the said receiver shall by virtue o f this
A c t be discharged from any and all liabilities to such
association and to each and all the creditors and shareagent1 1 y




0 f holders thereof. Upon receiving such deed, assignment,
transfer, or other instrument the person elected such
agent shall hold, control, and dispose o f the assets and
property o f 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 o f such association, sue and be sued and do all other
law ful acts and things necessary to finally settle and
distribute the assets and property in his hands, and may
sell, compromise, or compound the debts due to such as­
sociation, with the consent and approval o f the circuit
or district court o f the United States for the district
where the business o f such association was carried on,
and shall at the conclusion o f his trust render to such
district or circuit court a full account o f all his pro­
ceedings, receipts, and expenditures as such agent, which
court shall, upon due notice, settle and adjust such ac­
counts and discharge said agent and the sureties upon

445

.LAWS CONCERNING BANKING.

said bond. A n d in case any such agent so elected shall newsagent in
refuse to serve, or die, resign, or be removed, any share- £an® 0 f v a '
a ®
holder may call a meeting of the shareholders of such as­
sociation in the town, city, or village where the busi­
ness o f the said association was carried on, by giving
notice thereof for thirty days in a newspaper published
m said town, city, or village, or if no newspaper is
there published, in the newspaper published 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 representing at leAst a
majority o f the stock in value and number o f shares, and
shall have executed a bond to the shareholders condi­
tioned 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 of a court of
record, and file said bonds in the office o f the clerk of
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 of the agent first elected as herein­
before provided. A t any meeting held as hereinbefore
. 1 A

...

J

0

votes of executors, etc.

provided administrators or executors of deceased share­
holders 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 for their ward or wards or
cestui que trust. The proceeds o f the assets or property fD‘|ggjgUtlon
a
of any such association which may be undistributed at
the time of such meeting or may be subsequently 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. To repay any amount or amounts which have

Expenses,

Rep a y -

been paid m by any shareholder or shareholders o f such g °ged
e del's
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 accord­
ance with the provisions o f the statutes of 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.”
Approved, March 2, 1897.




Balance,

as'

NATIONAL MONETARY COMMISSION.

446

A C T O F J U N E 13, 1898.
so stat. l ., C h a p . 448 .— An act to provide ways and means to meet

war expenditures, and for other purposes.
*

*

*

*

*

(Section 2 imposes an annual tax upon banks and
bankers proportioned to the capital employed, including
surplus.)
(Section 2, act o f March 2 ,1 9 0 1 , amends this section.)
*
*
*
*
*
A C T O F M A R C H 14, 1900.
31 stat. l ., C h a p . 41 .— An act to define and fix the standard of value,
452 Supp. r. s.,
1110'

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.
*

*

*

*

*

S ec . 10. That section fifty-one hundred and thirtyeight o f the Revised Statutes is hereby amended so as to

read as follow s:
for “ Section 5138. No association shall be organized with
N a t i o n a l a less capital than one hundred thousand dollars, except

su b stitu te

b
a^capitai.

that banks with a capital o f not less than fifty thousand
dollars may, with the approval of the Secretary o f the
Treasury, be organized in any place the population of
which does not exceed six thousand inhabitants, and ex­
cept that banks with a capital of 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 of
which exceeds fifty thousand persons with a capital o f less
than two hundred thousand dollars.”
*

Issue of cir-

*

*

*

*

S ec . 12. That upon the deposit with the Treasurer of

to'bank!. n° tes the United States, by any national banking association, of
5i g ?5M2!1° a n y bonds of the United States in the manner provided by
o
ch 8708^ §'6 Yi existing law, such association shall be entitled to receive
supp. it. s ., £rom ^|ie Comptroller of the Currency circulating notes
in blank, registered and countersigned as provided by
—to equal par law, equal in amount to the par value o f the bonds so
deposit°efd.bon<ls




deposited; and any national banking association now

447

LAWS CONCERNING BANKING.

having bonds on deposit for the security of circulating p^fon°deprenotes, and upon which an amount o f circulating notes has ^ nd* 10 n of
a
been issued less than the par value of the bonds, shall be

R- s-’ § 5167-

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 de­
posited, such additional notes to be held and treated in
the same way as circulating notes of national banking
associations heretofore issued, and subject to all the pro­
visions o f law affecting such notes: Provided , That noth­
ing herein contained shall be construed to modify or re­
peal the provisions of section fifty-one hundred and
sixty-seven o f the Revised Statutes o f the United States,
authorizing the Comptroller of the Currency to require
additional deposits o f bonds or o f lawful money in case
the market value of the bonds held to secure the circu­
lating notes shall fall below the par value o f the circu­
lating notes outstanding for which such bonds may be
deposited as security: And provided further, T hat the
circulating notes furnished to national banking associa- n
o?es furnished
tions under the provisions of this act shall be o f th e ^ jg S
nomina_
denominations prescribed by law, except that no nationaltlonsbanking association shall, after the passage o f this act,
be entitled to receive from the Comptroller o f the Cur­
rency, or to issue or reissue or place in circulation, more
than one-third in amount o f its circulating notes of the
denomination o f five dollars: And provided further , That
the total amount o f such notes issued to any such a s s o c i a - exceed
tion may equal at any time but shall not exceed the
amount at such time o f its capital stock actually paid
in : And provided f urther, That under regulations to be
prescribed by the Secretary of the Treasury any national ofS2bp cen
ertU “
banking association may substitute the two per centum circufattorT^®
bonds issued under the provisions o f this act for any of
the bonds deposited with the Treasurer to secure circula­
tion or to secure deposits of 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 for
other purposes,” approved July twelfth, eighteen hun-

July6 rl
j;90; § ^
R°

dred and eighty-two, as prohibits any national bank 350'which makes any deposit o f lawful money in order to
withdraw its circulating notes from receiving any in­
crease of its circulation for the period of six months from
the time it made such deposit of lawful money for the pur-




448

NATIONAL MONETARY COMMISSION.

pose aforesaid, is hereby repealed, and all other acts or
parts o f acts inconsistent with the provisions o f this
section are hereby repealed.
cuiatnig0 notes
r.

S ec.

That every national banking association hav-

s., § 5214. ing on deposit, as provided by law, bonds of the United
States bearing interest at the rate o f two per centum per
annum, issued under the provisions of this act, to secure
its circulating notes, shall pay to the Treasurer of the
United States, in the months of January and July, a tax
o f one-fourth of one per centum each h alf 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 of existing taxes on its notes in
circulation imposed by section fifty-two hundred and
fourteen o f the Revised Statutes.
*
*
*

*

*

Approved, March 14, 1900.
ACT

OF

A P R IL

12, 1900.

gQ3i stat. l ., C h a p . 191 .— A n act temporarily to provide revenues and

a civil government for Porto Rico , and for other pur­
poses.
s
fc

Federai laws
applicable.




s
(e

#

$

SEc. 14. T hat the statutory laws o f the United States
.

t i t

not locally inapplicable, except as hereinbefore or here­
inafter 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 provisions of
section three, shall not have force and effect in Porto
Rico.
*
*
*
*
*
N ote .— By virtue o f this section the laws o f the United States
relative to the organization and powers o f national banks were
extended to Porto Iiico. (23 Op. Atty. Gen., 1G9.)

Approved, A p ril 12, 1900.
A C T O F A P R I L 30, 1900.
si stat. L->C h a p . 339 .— A n act to provide a government for the

Territory of Hawaii.
*

*

*

*

*

APPLICATION OF T H E LAWS OF THE UNITED STATES.

o f federal faws1

S ec.
That the Constitution, and, except as herein
otherwise provided, all the laws o f the United States

449

LAWS CONCERNING BANKING.

which are not locally inapplicable, shall have the same
force and effect within the said Territory as elsewhere
m the United States: Provided , T hat sections eighteen
hundred and fifty and eighteen hundred and ninety of
the Revised Statutes o f the United States shall not apply
to the Territory o f Hawaii.
*
N o t e .— This section extended the national-banking laws to
Hawaii, but is restricted not to include the conversion o f terri­
torial banks. (23 Op. Atty. Gen., 177.)

P rov iso.
Subm ission o f
te rrito ria l law s
to C ongress.
L im ita tio n on
rig h t o f re li­
giou s co r p o r a ­
tion s to hold
real estate.
R evised Statu t e s , s-e c s .
1 8 5 0 -1 8 9 0 , pp.
3 2 7 -3 3 3 .

Approved, A p ril 30, 1900.
A C T O F J U N E 6, 1900.
C h a p . 797.— A n act to 'provide better facilities for the

stat- L->

safe-keeping and disbursement of public moneys in the
Philippine Islands and in the islands of Cuba and Porto
Pico.
Pe it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That the Secretary o f the Treasury is hereby au-

Cuba, P o rto

thorized to designate one or more banks or bankers in ippines"
the Philippine Islands and in the islands o f Cuba and 0f ^epo^ftoVies
Porto Rico in which public moneys may be deposited: ^ pubIlt 111
101

P rovid ed , That the banks or bankers thus designated shall

Provisos. ^

give satisfactory security for the safe-keeping and prompt posit,
payment o f the public moneys so deposited by depositing
in the Treasury, United States bonds to an amount not
less than the aggregate sum at any time on deposit with
sucli banks or bankers: And provided further, That th is t0£ ^ 1lcatlon
;
A ct shall applv to Cuba only while occupied by the
United States. '
Approved, June G, 1900.
J O IN T

R E S O L U T IO N

OF JUNE

6, 1900.

(No. 32.) Joint resolution to authorize and empower the 71|1 stat- L »

Banco Espahol de Puerto Rico (Spanish Bank of Porto
Rico) to amend its by-laws.
Resolved by the Senate and House o f Representatives
of the United States of America in Congress assembled,
That the Banco Espahol de Puerto Rico (Spanish Bank rio a
f de°Puerfo
o f Porto Rico) be, and the said institution is hereby, a u -^ en lt“
c^
thorized and empowered to amend article one o f its b y -laws-




450

NATIONAL MONETAEY COMMISSION.

laws, which said by-laws are referred to in, and pub­
lished with, the royal (Spanish) decree dated M ay fifth,
anno Domini eighteen hundred and eighty-eight, grant­
ing a concession to said bank, so as to change its name to
that o f Bank o f Porto Rico (Banco de Puerto Rico) and
to substitute for its capital in pesos the equivalent in
money o f the United States at the ratio established by
law, and to amend article thirty-one o f said by-laws, so
that to be a councilor o f said bank it may not be necessary
to be a Spaniard, and further to m odify and amend said
by-laws, but always in accordance with existing law, and
subject to the approval o f the governor of Porto R ico:
P rov isos.

^Provided , That nothing herein contained shall be held
to enlarge or to permit the enlargement, in any manner
or to any extent, o f any o f the rights, powers, or privi­

enlarged.

leges granted to said Banco Espahol de Puerto Rico
(Spanish Bank of Porto Rico) by the Government of
F ed era l con t r o l
u n a bridged.

S p a in : And provided further, That nothing herein con^

~

tained shall be held in any wise to limit or curtail any
power which the Government or the Congress of the
United States possesses in respect of said bank, its powers,
privileges, or franchises.
Approved, June 6, 1900.
A C T O F F E B R U A R Y 18, 1901.

3i stat.

l .,

C h a p . 379.— A n act to put in force in the Indian Teiwi-

tory certain provisions of the laws of Arkansas relating
to corporations, and to make said provisions appli­
cable to said Territory.
*
B a n k s and
n ie s ; p o w e r s ,
etc.

S ec. 8.

*

*

*

*

That any bank or trust company now or here-

after organized under the laws o f Arkansas or any other
State may transact such business in the Indian Terri­
tory as is authorized by its charter, and that is not in­
consistent with the laws in force in the Indian Territory,
and may loan money and contract for the payment of
the same at a rate o f interest not to exceed the sum of

P rov iso.
e s t egin
tory.




eight per centum per annum, and a like rate for a period
less than a year: Provided , That the lawful interest in

T e r r i - said

Territory shall be six per centum when no rate of
interest is agreed upon, but in no case shall the interest
exceed eight per centum per annum.
Approved, February 18, 1901.

LAWS CONCERNING BANKING.

451

A C T O F M A R C H 3, 1901.
31
C h a p . 864.— A n act to 'provide for celebrating the one 1444.

S tat. L .,

hundredth anniversary of the purchase of the Louisi­
ana territory by the United States by holding an inter­
national exhibition of arts, industries, manufactures,
and the products of the soil, mine, forest, and sea in
the city of Saint Louis, in the State of Missouri.
*

*

*

*

*

S ec . 21. That any bank or trust company located in

the city o f Saint Louis, or State of Missouri, may be

L o ca tio n o f
b ra n ch b a n k
o n e xp o sitio n
grounds.

designated by the Louisiana Purchase Exposition Com­
pany to conduct a banking office upon the exposition
grounds, and if the bank so designated shall be a national
bank, upon such designation being approved by the
Comptroller o f the Currency, said national bank is
hereby authorized to open and conduct such office as a
branch o f the bank, subject to the same restrictions and
having the same rights as the bank to which it belongs:

Provided, T hat the branch office authorized hereby, if
fhe same shall be a branch o f a national bank, shall not
be operated for a period longer than two years, beginning

P ro v iso .

— lim itp e rio d
o f op eration .

not earlier than July first, nineteen hundred and two,
and closing not later than July first, nineteen hundred
and four.
*

*

*

*

*

Approved, March 3, 1901.
A C T O F M A R C H 3, 1901.

C h a p . 871.— A n act to amend section fifty-one hundred

31 S tat. L.,
1448.

end fifty-three of the Revised Statutes of the United
States.
Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress as­
sembled, That section fifty-one hunderd and fifty-three
of the Revised Statutes o f the United States be amended
to read as follow s:
National
banks d e p o sita ­
ries o f pu blic
m oneys, e xcep t
c u s t o m s re
ceipts.
— e x c e p t io n
not a p p lica b le
II a w a
derived from duties on imports tolaska, etc. i i ,
A
R evised S ta tu tes, sec. 5153, p. 996, am ended.

“ S ec . 5153. A ll national banking associations, desig­

nated for that purpose by the Secretary of the Treasury,
shall be depositaries o f public money, except receipts from
customs, under such regulations as may be prescribed by
the Secretary, but receipts




452

NATIONAL MONETARY COMMISSION.

in Alaska, the Hawaiian Islands, and other islands under
the jurisdiction of the United States may be deposited in
such depositaries subject to such regulations; and such
depositaries may also be employed as financial agents o f
the Government; and they shall perform all such reason­
able duties as depositaries o f public moneys and financial
agents of the Government as may be required o f them.
The Secretary o f the Treasury shall require the associa­
tions thus designated to give satisfactory 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 faithful performance
o f their duties as financial agents o f the Government.
A n d every association so designated as receiver or deposi­
tary of the public money shall take and receive at par all
o f the national currency bills, by whatever association
issued, which have been paid into the Government for
internal revenue or for loans or stocks.”
Approved, March 3, 1901.
A C T O F A P R I L 12, 1902.
iq32

stat. l., C

h a p

.

503.— A n act to provide for the extension of the

charters of national banks.

aN a t i o

n a

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress asl sembled, T hat the Comptroller o f the Currency is hereby

Charters m authorized, in the manner provided by, and under the
ay
t>6 e x t e n d e d
'
#
^
tw en ty years,
conditions and limitations of, the A c t o f July twelfth,
V ol. 22, p.
'
*
162 .
eighteen hundred and eighty-two, to extend for a further
utes, sec. 5136, period of twenty years the charter o f any national bank093
^
ing association extended under said A c t which shall de­
sire to continue its existence after the expiration o f its
charter.
Approved, A p ril 12, 1902.
A C T O F A P R I L 28, 1902.
i382' Stat' L"

C

. 594 .— A n act making appropriations for the legis­
lative, executive, and judicial expenses of the Govern­
ment for the fiscal year ending June thirtieth, nineteen
hundred and three, and for other purposes.

h a p

*
liqu idation
penses.




ex-

*

*

*

*

* * * : G n<l provided further, That the C o m p troller o f the Currency is hereby directed to include in
his Annual Report to the Speaker o f the House o f Rep-

LAWS CONCERNING BANKING.

453

resentatives, expenses incurred during each year, in liqui­
dation o f each failed national bank separately.
*
*
*
*
*

Approved, April 28, 1902.
A C T O F M A R C H 3, 1903.
C

. 1014.— A n act to amend section one of an A ct entitled “A n act to amend sections fifty-one hundred and
ninety-one and fifty-one hundred and ninety-two of the
Revised Statutes of the United States, and for other
purposes.

stat-> L->
-

h a p

#Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem­
bled, That section one o f an A c t entitled “ A n A ct t o .

National

‘inienct sections nftv-one hundred and ninety-one and

R e s e r v e

i

G-Pf

.

i

t

.

J

i

^

banks.
cities.

uity-one hundred and ninety-two o f the Revised Statutes _ vo 24’ p1tne United States, and for other purposes, approved
March third, eighteen hundred and eighty-seven, be, and
the same is hereby, amended to read as follow s:
u That whenever three-fourths in number of the na" re^u^ed
lation
tional banks located in any city of the United States
having a population o f twenty-five thousand people shall
make application to the Comptroller o f the Currency, in
Writing, asking that the name o f the city in which such
hanks are located shall be added to the cities named in
sections-fifty-one hundred and ninety-one and fifty-one
hundred and ninety-two o f the Revised Statutes, the

R evised

stat-

comptroller shall have authority to grant such request, 5192, p. 1001.
and every bank located in such city shall at all times
thereafter have on hand, in law ful money o f the United p R^|rveofde‘
o
States, an amount equal to at least twenty-five per centum
° f its deposits, as provided in sections fifty-one hundred R evised statancl ninety-one and fifty-one hundred and ninety-five o f 5195- p- 1004the Revised Statutes.”

Approved, March 3, 1903.
A C T O F F E B R U A R Y 28, 1905.
C

, 1163.— A n act to amend section fifty-one hundred 81|3 stat- L-,
and forty-six of the Revised Statutes of the United
States in relation to the qualifications of directors of
national banking associations.

h a p

Re it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assem-







NATIONAL MONETARY COMMISSION.

454
National
banks.

Requisite

q u a lifica tion s o f
d irectors.
R evised S ta t­
utes, sec. 5146.
p. 995, am en d ­
ed.

bled, That section fifty-one hundred and forty-six o f the
Revised Statutes o f the United States be so amended as to
read as follow s:
“ S ec . 5146. Every director must, during his whole
term o f service, be a citizen o f the United States, and at
least three-fourths o f the directors must have resided in
the State, Territory, or District in which the association
is located for at least one year immediately preceding
their election and must be residents therein during their
continuance in office. Every director must own in his

Mi ni mum own right at least ten shares o f the capital stock o f the
association o f which he is a director, unless the capital o f
the bank shall not exceed twenty-five thousand dollars, in
Banks of which case he must owT in his own right at least five
n

sh a res o f stock
to be held by
d ire cto rs .

sm all ca p ita l.

shares o f such capital stock.

A n y 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.”
Approved, February 28, 1905.
A C T O F D E C E M B E R 21, 1905.
34 stat. l ., 5. C h a p . 3.— A n act supplemental to an act entitled uAn act

to provide for the construction of a canal connecting the
waters of the Atlantic and Pacific oceans,” approved,
June twenty-eighth, nineteen hundred and two, and
making appropriation for Isthmian Canal construction,
and for other purposes.

jj

isthmian

g j

B e it enacted by the Senate and House of Representa­
tives of the United States o f America in Congress assemCa- bled, That the two per cent bonds o f the United States

R ig h ts,

'

e tc .,' accorded authorized by
b o n d s issued,
. ,
»
f o r construe- to provide tor

^

%

r

section eight of the A ct entitled “ A n Act
,
,.
<
,
.
,.
the construction ot a canal connecting the

tI0voLf' 32, p. waters o f the Atlantic and Pacific oceans,” approved June
twenty-eighth, nineteen hundred and two, shall have all
the rights and privileges accorded by law to other two
per cent bonds of the United States, and every national
banking association having on deposit, as provided by
law, such bonds issued under the provisions of said section
eight o f said A ct approved June twenty-eighth, nineteen
hundred and two, to secure its circulating notes, shall pay
to the Treasurer of the United States, in the months of
January and July, a tax of one-fourth o f one per cent
each h alf year upon the average amount of such of its
notes in circulation as are based upon the deposit of said

455

LAWS CONCERNING BANKING.

two per cent bonds; and such taxes shall be in lieu o f Revised statexisting taxes on its notes in circulation imposed by p ^ o s 0' 5214,
section fifty-two hundred and fourteen o f the Revised
Statutes.
*

*

*

*

Approved, December 21,

*

1905.

A C T O F J U N E 22, 1906.
C h a p . 3516.— A n act to amend section fifty -tw o hundred r34 stat. l .,

R evised Statutes o f
national hanks.

the U nited S ta tes , relating to

t
R enacted hy the Senate and H ouse o f R epresenta­
tives o f the U nited S tates o f A m erica in Congress assem­
bled^ That section fiftv-two hundred of the Revised. Nat i onal
statutes of the United States be, and the same is hereby,
amended to read as follow s:
“ S e c . 5200. The total liabilities to any association, of

any person, or o f any company, corporation, or firm f o r ™|fS
eacm’ in~
tooney borrowed, including in the liabilities of a company utaevs
i|cdf 2 o
to ,"
°r firm the liabilities o f the several members thereof, shall Pjla05>am
ena’
at no time exceed one-tenth part o f the amount o f the
capital stock o f such associations, actually paid in and
unimpaired and one-tenth part o f its unimpaired surplus
fund: P rovided, however, That the total o f such liabilishall in no event exceed thirty per centum o f the
capital stock o f the association. But the discount of bills
n

#

#

#

P roviso.

Commercial
discounts not

° t exchange drawn i-n good faith against actually existing deluded,
values, and the discount o f commercial or business paper
actually owned by the person negotiating the same shall
not be considered as money borrowed.”

Approved, June 22,

1906.

A C T O F J A N U A R Y 26, 1907.
(A s codified in section 83 o f the Penal Code of the

34 stat. l „

United States, March 4, 1909, 35 Stat. L ., 1103) :

It shall be unlawful for any national bank,7 or any cor- co nCtr ib orat tiong
orp
s
.
.
I .
^
u i n

poration organized by authority ot any law of Congress, fo^.ponticai
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 contribu­
tion in connection with any election at which Presidential
and Vice-Presidential electors or a Representative in Con157120— 10-----31







456

NATIONAL MONETARY COMMISSION.

Penaity

for.

gress is to be voted for, or any election by any State legislature of a United States Senator. Every corporation
which shall make any contribution in violation of the

Additional to
officers.

foregoing provisions shall be fined not more than five
thousand dollars; and every officer or director o f any cor.

"

"

poration who shall consent to any contribution by the
corporation in violation o f the foregoing provisions shall
be fined not more than one thousand dollars, or impris­
oned not more than one year, or both.
A C T O F M A R C H 4, 1907.

J089

stat

l

, C

h a p

.

2913.— A n act to amend the national hanking act,

and for other purposes.
Be it enacted hy the Senate and House of Representa­
tives of the United States of America in Congress asC u r r e n c y a c t ,sembled, That section six of an A ct to define and fix the
v° .

. p.

• gtan(j ar(j o;f value, to maintain the parity o f all forms of

money issued or coined by the United States, to refund
the public debt, and for other purposes, approved March
fourteenth, nineteen hundred, be, and the same is hereby,
Gold

eertm ca tes issued to r

amended to read as follow s:
“ S ec. 6. That the Secretary of the Treasury is hereby
^

deposi ts of authorized and directed to receive deposits o f gold coin
with the Treasurer, or any assistant treasurer o f the
tion^reduceda" United States in sums o f not less than twenty dollars,
47V am
ended P and * ° issue gold certificates therefor in denominations 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 associa­
tion may be counted as a part o f its lawful reserve:
Provisos.^^Provided, T hat whenever and so long as the gold coin
of £
on re-and bullion held in the reserve fund in the Treasury for
serve fund.

the redemption o f United States notes and Treasury notes
shall fall and remain below one hundred million dollars
the authority to issue certificates as herein provided shall

of°snverC r ^ e suspended: And provided further, That whenever
cea
in
flctheS Treas-an(l s0 l ° ng as the aggregate amount o f United States
’
urynotes and silver certificates in the general fund o f the
Treasury shall exceed sixty million dollars the Secretary
o f the Treasury may, in his discretion, suspend the issue

457

LAWS CONCERNING BANKING.

of the certificates herein provided fo r : A n d provided
fu rth er , That o f the amount o f such outstanding certifi- ti0nS
eno“ m
itcates one-fourth at least shall be in denominations of tlgcatesS cer"
fifty dollars or less: A n d provid ed fu rth er , That the Large n es;
otse(
Secretary of the Treasury may, in his discretion, issue 5193 , p .’ 1004,
such certificates in denominations of ten thousand d o l-ieieJe
lars, payable to order. A n d section fifty-one hundred
and ninety-three of the Kevised Statutes o f the United
States is hereby repealed.”
S ec . 2. That whenever and so long as the outstanding^1 e a s u r y
^
S yer cci“
1
tificates o f the denominations o f one dollar, twopX
rt°sdfn(s?nan
f 0 \ars> and five dollars, issued under the provisions of ^ eg certm‘
er
section seven of an A c t entitled “ A n A c t to define and fix V 31>p- 47o11 e standard o f value, to maintain the parity of all forms
0 money issued or coined by the United States, to refund
e Public debt, and for other purposes,” approved March
ourteenth, nineteen hundred, shall be, in the opinion of
t e Secretary o f the Treasury, insufficient to meet the
public demand therefor, he is hereby authorized to issue ^nigher^deUnited States notes of the denominations of one dollar, be retired,
rt'o dollars, and five dollars, and upon the issue of United
>rtates notes o f such denominations an equal amount of
nited States notes o f higher denominations shall be
retired and canceled: P rovid ed , h ow ever , T hat the aggre- Jr°y®°egate
g
S
gate amount o f United States notes at any time outstand- amount^nano^
lng shall remain as at present fixed by la w : A n d p ro v id ed not affected.
fu rth er , T hat nothing in this A c t shall be construed as
affecting the right o f any national bank to issue one-third
in amount o f its circulating notes of the denomination o f
ff' e dollars, as now provided by law.
S ec. 3. That section fiftv-one hundred and fifty-three

Revised stat-

tne lvevised Statutes be amended to read as follow s: p- " 6- am
end'
u ci
ed.
o e c . 5153. A ll national banking associations, desigI'iationiL!
rmfnG
.1
® banks m b
ay e
clLea ror that purpose by the Secretary o f the Treasury, depositaries^ of
shall be depositaries of public money, under such regula- m
oneys,
rtons as may be prescribed by the Secretary; and they
may also be employed as financial agents of the Governm ^ t ; and they shall perform all such reasonable duties,
as depositaries o f public money and financial agents o f
the Government, as may be required o f them. The
Secretary o f the Treasury shall require the associations
thus designated to give satisfactory security, by the de­
posit o f United States bonds and otherwise, for the safe­
keeping and prompt payment o f the public money de­
posited with them, and for the faithful performance of







458

NATIONAL MONETARY COMMISSION.

P ro v iso s .
S ta tem en t o f
secu rities r e -

their duties as financial agents of the Government : Pro vided. That the Secretary shall, on or before the first of
7

.

,

, ,.

.

.

January or each year, make a public statement of the
securities required during that year for such deposits.
A n d every association so designated as receiver or deposi­

ng raiiiv
ena- ^ar-7
th© public money shall take and receive at par
rency bills etc a^
^he national currency bills, by whatever association
issued, which have been paid into the Government for
Of

l0ninternal reveniie? or f ° r loans or stocks: Provided , That
the Secretary o f the Treasury shall distribute the deposits

di“

herein provided for, as far as practicable, equitably be­
tween the different States and sections.”
Voi. 22, p.
S ec . 4. That section nine of the A ct o f July twelfth,
voi. 31, p 45. eighteen hundred and eighty-two, as amended by the A ct
.
o f March fourteenth, nineteen hundred, be further

withdrawal

o f c ir c u la tin g
n otes and de-

posit of lawful

m
oney, etc.
124. '
on ^reissue

’

amended to read as follow s:
“ S ec . 9. That any national banking association now
J

.

p .

organized, or hereafter organized, desiring to withdraw
’#

°

jp

its circulating notes, upon a deposit o f lawful money with

the Treasurer o f the United States, as provided in section
r e - four

o f the A c t o f June twentieth, eighteen hundred and

seventy-four, or as provided in this A ct, is authorized to
deposit lawful money and, with the consent o f the Comp­
troller o f the Currency and the approval of the Secretary
o f the Treasury, withdraw a proportionate amount of the
bonds held as security for its circulating notes in the
ETmTt' o f or(^er
such deposits: Provided , T hat not more than
m on th ly
d e - nine millions o f dollars of law ful money shall be deposited
p osit increased.

B on d s ca lled

.

during any calendar month for this purpose: A nd provided further, That the provisions of this section shall
not apply to bonds called for redemption by the Secre­

etc.

tary of the Treasury, nor to withdrawal of circulating
notes in consequence thereof.”
Approved, March 4 ,1 9 0 7 ,1 0 a. m.
A C T O F M A Y 30, 1908.
g5 stat. l ., C h a p . 229.— A n act to amend the national banking laws.

a 11 o n a i

Be it enacted by the Senate and House of Representa­
tives of the United States of America in Congress assembled, That national banking associations, each having

National

an unimpaired capital and a surplus o f not less than
twenty per centum, not less than ten in number, having

n

tion .

ciations^ ass° an aggregate capital and surplus of at least five millions
o f dollars, may form voluntary associations to be desig-

LAWS CONCERNING BANKING.

459

Rated as national currency associations. The banks unit- ti(£
Ration­
ing to form such association shall, by their presidents or al banksvice-presidents, acting under authority from the board Applications,
of directors, make and file with the Secretary o f the
Treasury a certificate setting forth the names of the banks
composing the association, the principal place o f business
of the association, and the name of the association, which
name shall be subject to the approval of the Secretary of
the 1 reasury. Upon the filing of such certificate the as- p R
0 °e^ 0 r a t e
^ociated banks therein named shall become a body cor­
porate, and by the name so designated and approved
naay sue and be sued and exercise the powers o f a body
corporate for the purposes hereinafter mentioned: Provzded, That not more than one such national currency
association shall be formed in any c ity : Provided further,
That the several members of such national currency as- beM bcontig°
o“
^ociation shall be taken, as nearly as conveniently may b e ,uous territory.
rom a territory composed o f a State or part v>f a State,
or contiguous parts o f one or more States: And provided
further, That any national bank in such city or territory, qufn ba;jmls;
tu
e
aving the qualifications herein prescribed for m em ber-slonsship in such national currency association, shall, upon
its application to and upon the approval o f the Secre­
c y of the Treasury, be admitted to membership in a
national currency association for that city or territory,
and upon such admission shall be deemed and held a part
° f the body corporate, and as such entitled to all the rights
and privileges and subject to all the liabilities of an
original member: And provided further, That each na- s t ®ctertk one
to
tional currency association shall be composed exclusively association.
° f banks not members o f any other national currency as­
sociation.
The dissolution, voluntary or otherwise, of any bank nof affected by
ln Sllch association shall not affect the corporate existence
of
° f the association unless there shall then remain less than
the minimum number o f ten banks: Provided , however,
d hat the reduction o f the number o f said banks below the
nunirnum o f ten shall not affect the existence o f the cor­
poration with respect to the assertion of all rights in favor
of or against such association. The affairs o f the asso-

K V
re id0u c u -10 w
Re
.

eiation shall be managed by a board consisting o f o n em Ita D a g e '
e)1
representative from each bank. By-law s for the govern­
ment o f the association shall be made by the board, sub­
ject to the approval o f the Secretary of the Treasury. A
Effix eeSc u ‘
president, vice-president, secretary, treasurer, and an ex- tJve committee.







460

NATIONAL MONETARY COMMISSION.

ecutive committee o f not less than five members, shall be
elected by the board.

The powers o f such board, except

in the election o f officers and making o f by-laws, may be
Powers.

exercised through its executive committee.
T he national currency association herein provided for
shall have and exercise any and all powers necessary to
carry out the purposes of this section, namely, to render
available, under the direction and control o f the Secretary
o f the Treasury, as a basis for additional circulation any
securities, including commercial paper, held by a national

A d d itio n a l
bank
circftlation.
Securi­
ties for, to be
deposited with
association.

banking association.

F or the purpose of obtaining such

additional circulation, any bank belonging to any national
currency association, having circulating notes outstanding
secured by the deposit o f bonds of the United States to
an amount not less than forty per centum o f its capital
stock, and which has its capital unimpaired and a surplus
o f not less than twenty per centum, may deposit with and
transfer to the association, in trust for the U nited States,
for the purpose hereinafter provided, such o f the securi­
ties above mentioned as may be satisfactory to the board

A p p licatio n
to Comptroller
o f the C u r ­
rency,

o f the association.

The officers of the association may

thereupon, in behalf o f such bank, make application to
the Comptroller o f the Currency for an issue o f additional
circulating notes to an amount not exceeding seventy-five
per centum o f the cash value o f the securities or commer­
cial paper so deposited.

The Comptroller o f the Currency

shall immediately transmit such application to the Secre­
tary o f the Treasury with such recommendation as he
Secretary of
the
Treasury
may direct is­
sue.

thinks proper, and if, in the judgment o f the Secretary of
the Treasury, business conditions in the locality demand
additional circulation, and if he be satisfied with the
character and value o f the securities proposed and that a
lien in favor o f the United States on the securities so de­
posited and on the assets o f the banks composing the asso­
ciation will be amply sufficient for the protection o f the
United States, he may direct an issue o f additional cir­
culating notes to the association, on behalf o f such bank,
to an amount in his discretion, not, however, exceeding
seventy-five per centum o f the cash value o f the securities

Provisos.
Amount on
S t a t e , etc.,
bonds.

so deposited: Provided , T hat upon the deposit of any of
the State, city, town, county, or other municipal bonds, o f a
character described in section three o f this A c t, circulating
notes may be issued to the extent o f not exceeding ninety
per centum o f the market value o f such bonds so depos­
ited: And 'provided further, T hat no national banking

LAWS CONCERNING BANKING.

461

association shall be authorized in any event to issue cir- com ercial* pa°
m
dilating notes based on commercial paper in excess ofPerthirty per centum o f its unimpaired capital and surplus.
The term “ commercial p a p e r ’’ shall be held to include cjai paper™ de°n ly notes representing actual commercial transactions,signatedwhich when accepted by the association shall bear the
names o f at least two responsible parties and have not
exceeding four months to run.
The banks and the assets o f all banks belonging to the

Liability

of

association shall be jointly and severally liable to the redemption.for
United States for the redemption o f such additional cir­
culation; and to secure such liability the lien created by

Lien created,

section fifty-tw o hundred and thirty o f the Revised Stat-

Revised sta-

ntes shall extend to and cover the assets o f all banks p- 1011belonging to the association, and to the securities de­
posited by the banks with the association pursuant to the
provisions o f this A c t ; but as between the several banks
composing such association each bank shall be liable
onl.y in the proportion that its capital and surplus bears bersto the aggregate capital and surplus o f all such banks.
The association m ay, at any time, require o f any o f its
constituent banks a deposit o f additional securities or ^^dduionai,
commercial paper, or an exchange o f the securities al-

securities."

ieady on deposit, to secure such additional circulation;
and in case o f the failure o f such bank to make such de­
posit or exchange the association m ay, after ten days’
notice to the bank, sell the securities and paper already

Sale of se­
curities held on
failure.

1 1 hs hands at public sale, and deposit the proceeds with
1
the Treasurer o f the United States as a fund for the re­
demption o f such additional circulation.

D e p o s i t of
proceeds.

I f such fund

lie insufficient for that purpose the association may reco\ er from the bank the amount o f the deficienc}^ by suit

Suit, if sum
insufficient to
redeem notes.

m the circuit court o f the United States, and shall have
the benefit o f the lien hereinbefore provided for in favor
°f

die United States upon the assets o f such bank.

The

association or the Secretary o f the Treasury may permit
° i require the withdrawal o f any such securities or com­
mercial paper and the substitution o f other securities or

W ith d raw al
and
substitu­
tion permitted.

commercial paper o f equal value therefor.
S

ec.

2.

T hat whenever any bank belonging to a na­

A c t to n , if
members fail to

tional currency association shall fail to preserve or make maintain r e ­
demption fund.
good its redemption fund in the Treasury o f the United Vol. 1 8 , p. 1 2 3 .
tates, required by section three o f the A ct o f June twen1 1 1, eighteen hundred and seventy-four, chapter three
(
undred and forty-three, and the provisions o f this A ct,







462

NATIONAL MONETAEY COMMISSION.

the Treasurer o f the United States shall notify such
national currency association to make good such redemp­
tion fund, and upon the failure o f such national cur­
Use of funds
o f other mem­
bers.

rency association to make good such fund, the Treasurer
o f the United States may, in his discretion, apply so
much o f the redemption fund belonging to the other
banks composing such national currency association as

Association to
sell securities
o f defaulting
bank.

may be necessary for that purpose; and such national
currency association may, after five days’ notice to such
bank, proceed to sell at public sale the securities depos­
ited by such bank with the association pursuant to the

Deposits o f
proceeds f o r
redemption of
notes.

provisions of section one o f this A ct, and deposit the pro­
ceeds with the Treasurer o f the United States as a fund
for the redemption o f the additional circulation taken
out by such bank under this Act.

Additional
circulation by
banks on other
than U . S .
bonds.

S ec . 3. T hat any national banking association which
has circulating notes outstanding, secured by the deposit
o f United States bonds to an amount o f not less than
forty per centum o f its capital stock, and which has
a surplus o f not less than twenty per centum, may make
application to the Comptroller o f the Currency for au­
thority to issue additional circulating notes to be secured
by the deposit of bonds other than bonds o f the United

Application to
Comptroller.

States.

The Comptroller o f the Currency shall transmit

immediately the application, with his recommendation,
to the Secretary o f the Treasury, who shall, if in his
judgm ent business conditions in the locality

demand

Approval by
Secretary
of
Treasury.

additional circulation, approve the same, and shall de­

Issue on de­
posit of bonds
with Treasurer.

lating notes to be issued.

termine the time o f issue and fix the amount, within
the limitations herein imposed, o f the additional circu­
Whenever after receiving

notice o f such approval any such association shall deposit
with the Treasurer or any assistant treasurer o f the
United States such o f the bonds described in this section
as shall be approved in character and amount by the
Treasurer o f the United States and the Secretary o f the
Treasury, it shall be entitled to receive, upon the order
o f the Comptroller o f the Currency, circulating notes in
blank, registered and countersigned as provided by law,

Not to exceed
9 0 per cent of
market value.

not exceeding in amount ninety per centum o f the mar­
ket value, but not in excess o f the par value o f any
bonds so deposited, such market value to be ascertained
and determined under the direction o f the Secretary of
the Treasury.

463

LAWS CONCERNING BANKING.

The Treasurer o f the United States, with the approval

dciti£s
s *

o f the Secretary o f the Treasury, shall accept as security etcondufonsbas
for the additional circulating notes provided for in this {£udg
ity’ etc-’
section, bonds or other interest-bearing obligations of any
State o f the United States, or any legally authorized
bonds issued by any city, town, county, or other legally
constituted municipality or district in the United States
which has been in existence for a period o f ten years, and
which for a period o f ten years previous to such deposit
has not defaulted in the payment o f any part o f either
principal or interest o f any funded debt authorized to be
contracted by it, and whose net funded indebtedness does
not exceed ten per centum o f the valuation o f its taxable
property, to be ascertained by the last preceding valua­
tion o f property for the assessment o f taxes.
^

The Treas-

Discretion of
Trpflm irpr

urer o f the United States, with the approval of the Sec­
retary o f the Treasury, shall accept, for the purposes o f
this section, securities herein enumerated in such pro­
portions as he may from time to time determine, and he
may with such approval at any time require the deposit
°f

additional securities, or require any association to

change the character o f the securities already on deposit.
^

S

ec

.

4. T hat the legal title o f all bonds, whether cou’

pon or registered, deposited to secure circulating notes

Transfer o f

title in trust.

issued in accordance with the terms o f section three o f
this A ct shall be transferred to the Treasurer o f the
United

States in trust for the association depositing

them, under regulations to be prescribed by the Secretary
o f the Treasury.

A receipt shall be given to the associa- ^ Receipts from

tion by the Treasurer or any assistant treasurer o f the
United States, stating that such 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 cir­
culating notes that have been or may be delivered to
such association.

N o assignment or transfer o f any such

3ond by the Treasurer shall be deemed valid unless countei signed by the Comptroller o f the Currency. The pro
Visions o f sections fifty-one hundred

and

Assignments.
bonds.'
R.

S. _ sees.

sixty-three, 5 2 2 4 -5 2 3

ty-one hundred and sixty-four, fifty-one hundred and ioi2
998, 1010
sixty-five, fifty-one hundred and sixty-six, and fifty-one
Hint red and sixty-seven and sections fifty-tw o hundred
an twenty-four to fifty-tw o hundred and thirty-four, inc usive, o f the Revised Statutes respecting United States
011 s deposited to secure circulating notes shall, except







464

NATIONAL MONETARY COMMISSION.

as herein modified, be applicable to all bonds deposited
under the terms o f section three o f this Act.
ditlonaT circui
lating notes.

S ec .
T hat the additional circulating notes issued under this A c t shall be used, held, and treated in the same
way as circulating notes o f national banking associa­
tions heretofore issued and secured by a deposit o f United
States bonds, and shall be subject to all the provisions o f
law affecting such notes except as herein expressly modi-

Lknits< is-fied: Provided, T hat the total amount o f circulating
of
banks notes by n0^es outstanding o f any national banking association,
including notes secured by United States bonds as now
provided by law, and notes secured otherwise than by
deposit o f such bonds, shall not at any time exceed the
amount o f its unimpared capital and surplus: A nd prolona vided further, That there shall not be outstanding at any

Maximum of
notes.

time circulating notes issued under the provisions o f this
A c t to an amount o f more than five hundred millions o f
dollars.
re-

S ec.
T hat whenever and so long as any national
banking association has outstanding anv o f the additional

cir-

circulating notes authorized to be issued by the provisions

fund6 demptlon
special
additional

is, p.123.

o f this A ct it shall keep on deposit in the Treasury of
the United States, in addition to the redemption fund
required by section three o f the A ct o f June twentieth,
eighteen hundred and seventy-four, an additional sum
equal to five per centum o f such additional circulation at
any time outstanding, such additional five per centpin to
be treated, held, and used in all respects in the same
manner as the original redemption fund provided for by
said section three o f the A ct o f June twentieth, eighteen
hundred and seventy-four.

Proportional
assignment of
additional cir­
culation
to
States.

Sec.

7. In order that the distribution o f notes to be

issued under the provisions of this A c t shall be made as
equitable as practicable between the various sections o f
the country, the Secretary o f the Treasury shall not
approve applications from associations in any State in
excess o f the amount to which such State would be enti­
tled o f the additional notes herein authorized on the basis
o f the proportion which the unimpaired capital and sur­
plus o f the national banking associations in such State
bears to the total amount o f unimpaired capital and sur­
plus o f the national banking associations o f the United

Proviso.
' Emergency
assignments.

States: Provided, however, T hat in case the applications
from associations in any State shall not be equal to the
amount which the associations of such State would be

465

LAWS CONCERNING BANKING.

entitled to under this method of distribution, the Secre­
tary o f the Treasury m ay, in his discretion, to meet an
emergency, assign the amount not thus applied for to
any applying association or associations in States in the
same section of the country.
S ec . 8. T hat it shall be the duty o f the Secretary o f th e eti^a^to^acTreasury to obtain information with reference to the ^f^able securI‘
value and character o f the securities authorized to be
accepted under the provisions o f this A ct, and he shall
from time to time furnish information to national banking
associations as to such securities as would be acceptable
under the provisions o f this Act.
j.i

S e c . 9. That section fifty-tw o hundred and fourteen of

J

T>

Tax on cir-

cu la tio n .

ine Revised Statutes, as amended, be further amended to
read as fo llow s:
S e c . 5214. National banking associations having on uteS se^ ^ 2 i 4
eV
deposit bonds o f the United States, bearing interest at the pby
rate of two per centum per annum, including the b o n d s ^ p e r c e n t

issued for the construction o f the Panama Canal, under
the provisions o f section eight o f ‘A n A c t to provide for 4gyoi. 32, pthe construction o f a canal connecting the waters o f the
Atlantic

and

Pacific

oceans,’ approved

June twenty-

eighth, nineteen 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 centum each h alf year upon the average amount
of such o f its notes in circulation as are based upon the
ceposit of such bonds: and such associations having on^tBy
deposit bonds o f the United States be aring interest at a

b on d s o f

8

rate higher than two per centum per annum shall pay a
ax o f one-half o f one per centum each h a lf year upon the
average amount o f such o f its notes in circulation as are
ased uP°n the deposit o f such bonds. National banking cuP[ie ther se°
associations having circulating notes secured otherwise
an ])y bonds o f the United States shall pay for the first
month a tax at the rate o f five per centum per annum
upon the average amount o f such o f their notes in circu­
lation as are based upon the deposit o f such securities,
an afterwards an additional tax o f one per centum per
annum for each month until a tax o f ten per centum
per annum is reached, and thereafter such tax o f ten per
cui mn per annum, upon the average amount o f such
notes.

Every national banking association having out- tJ £ °n
of‘circ^

s and m g circulating notes secured by a deposit o f other |t 1 no uo r
a| ™ n tIls
securities than United States bonds shall make monthly i* 1 ^301







466

NATIONAL MONETARY COMMISSION.

returns, under oath of its president or cashier, to the
Treasurer o f the United States, in such form as the Treas­
urer may prescribe, o f the average monthly amount o f its
notes so secured in circulation; and it shall be the duty o f
the Comptroller o f the Currency to cause such reports o f
notes in circulation to be verified by examination o f the
Use of taxes banks’ records. The taxes received on circulating notes
on notes se­
cured by other secured otherwise than by bonds o f the United States
t han U. S.
bonds.
shall be paid into the Division o f Redemption o f the
Treasury and credited and added to the reserve fund held
for the redemption o f United States and other notes.”
Retiring cir­
S ec . 10. T hat section nine o f the A ct approved July
culation.
V o 1. 34. p twelfth, eighteen hundred and eighty-two, as amended
.
1290, am
ended.
by the A c t approved March fourth, nineteen hundred and
seven, be further amended to read as follow s:
Withdrawal
“ S ec . 9. T hat any national banking association desir­
of not es se­
cured by United ing to withdraw its circulating notes, secured by deposit
States bonds,
V o 1. 18, p o f United States bonds in the manner provided in section
.
124.
four o f the x\ct approved June twentieth, eighteen hun­
Deposits o f dred and seventy-four, is hereby authorized for that pur­
lawful m
oney.
pose to deposit law ful money with the Treasurer o f the
United States and, with the consent of the Comptroller
o f the Currency and the approval o f the Secretary of the
Treasury, to withdraw a proportionate amount of bonds
held as security for its circulating notes in the order o f
such deposits: Provided , That not more than nine m il­
Proviso.
Mo nt hl y
lions o f dollars o f lawful money shall be so deposited
limit.
during any calendar month for this purpose.
Notes secured “ A n y national banking association desiring to with­
by other secu­
rities.
draw any o f its circulating notes, secured by the deposit
o f securities other than bonds o f the United States, may
make such withdrawal at any time in like manner and
Deposits.

effect by the deposit o f lawful money or national bank
notes with the Treasurer o f the United States, and upon
such deposit a proportionate share o f the securities so de­

posited may be withdraw n: Provided , That the deposits
Proviso.
Retention of
deposits to re­ under this section to retire notes secured bv the deposit
deem notes.
V o 1. 26, p. o f securities other than bonds o f the United States shall
289.
not be covered into the Treasury, as required by section
six o f an A c t entitled ‘ A n A ct directing the purchase o f
silver bullion and the issue o f Treasury notes thereon,
and for other purposes,’ approved July fourteenth, eight­
een hundred and ninety, but shall be retained in the
Treasury for the purpose o f redeeming the notes o f the
bank making such deposit.”

467

LAWS CONCERNING BANKING.

S ec. 11.

T hat section fifty-one hundred and seventy- n*t|g8 u e of

two of the Revised Statutes be, and the same is hereby, u
amended to read as fo llow s:
am ended. 10°0,
ec
In order to furnish suitable notes for c ir -anf

“ S . 5172.

°rfn^fnv
ging

culation, the Comptroller o f the Currency shall, under
the direction o f the Secretary o f the Treasury, cause
plates and dies to be engraved, in the best manner to
guard against counterfeiting and fraudulent alterations,
and shall have printed therefrom, and numbered, such
quantity o f circulating notes, in blank, o f the denomina-^denomina­
tions of five dollars, ten dollars, twenty dollars, fifty
dollars, one hundred dollars, five hundred dollars, one
thousand dollars, and ten thousand dollars, as may be
required to supply the associations entitled to receive the
same. Such notes shall state upon their face that they se ^ tyC 01
c r ter
are secured by United States bonds or other securities,
certified by the written or engraved signatures o f the
treasurer and Register and by the imprint of the seal o f
the Treasury. They shall also express upon their face the
promise o f the association receiving the same to pay on
demand, attested by the signature o f the president or
v ^ -p re sid e n t and cashier.

The Comptroller o f the Cur-

rency, acting under the direction o f the Secretary o f the
Treasury, shall as soon as practicable cause to be prepared nott s
dtobe pre­
circulating notes in blank, registered and countersigned, P
aredus provided by law, to an amount equal to fifty per centum Amounto f the capital stock o f each national banking association; de5verysub*ea
such notes to be deposited in the Treasury or in the s u b -toorderreasury of the United States nearest the place o f busi­
ness of each association, and to be held for such associa 10n’ subject to the order o f the Comptroller o f the Curicn c}, for their delivery as provided by la w : Provided ,

uS^of^pres-

at the Comptroller o f the Currency may issue nationalent formank notes o f the present form until plates can be pre­
pared and circulating notes issued as above provided:

Tovided, however, T hat in no event shall bank notes o f no£resent ad™
f0r
e present form be issued to any bank as additional circulation provided for by this A c t.”
S ec. 12. T hat circulating notes o f national banking i n

circuia™m
om

associations, when presented to the Treasury for redemp- eyv 0 { 18 p
^on, as provided in section three of the A'ct approved 1~3*
, lme |wentieth, eighteen hundred and seventy-four, shall
e redeemed in law ful money o f the United States.







NATIONAL MONETARY COMMISSION.

46 8

Authority of S ec. 13. That all acts and orders o f the Comptroller o f
Secretary of
the Treasury, the Currency and the Treasurer o f the United States
authorized by this A ct shall have the approval o f the Sec­
retary o f the Treasury who shall have power, also, to
make any such rules and regulations and exercise such
control over the organization and management o f national
currency associations as may be necessary to carry out the
purposes o f this A ct.
Designated
S ec . 14. That the provisions o f section fifty-one hundepositaries re.
r
.
.
serve not to in-c
]red and ninety-one o f the Revised Statutes, with referclude public deJ
.
' .
posits.
ence to the reserves o f national banking associations, shall
ut es,

sec. not apply to deposits o f public moneys by the United
States in designated depositaries.
S Ec. 15. T hat all national banking associations desig-

^interest pay-

deposits of pub-nated as regular depositaries o f public money shall pay
lie m
oneys.
.,
,
i t ,i t
•,
J, .
1. *
'
upon all special and additional deposits made by the
Secretary o f the Treasury in such depositaries, and all
such associations designated as temporary depositaries of
public money shall pay upon all sums o f public money
deposited in such associations interest at such rate as the
Secretary o f the Treasury may prescribe, not less, how­
ever, than one per centum per annum upon the average
monthly amount o f such deposits: Provided , however,

Provisos.

s&fe-keeping T hat nothing contained in this A c t shall be construed
not m
odified.
°
. . . .
„
. .
to change or m odify the obligation o f any association
or any o f its officers for the safe-keeping o f public m oney:
te Uniform in- Provided further , That the rate o f interest charged upon
such deposits shall be equal and uniform throughout the
United States.
tionPpr° prla

S ec .
^ h a t a sum sufficient to carry out the purposes
o f the preceding sections o f this A c t is hereby appro­
priated out o f any money in the Treasury not otherwise
appropriated.

National

S e c . 17. T hat a Commission is hereby created, to be

m
ission creat-called the “ National Monetary Commission,

to be com-

Appointment. posed o f nine members o f the Senate, to be appointed by
the Presiding Officer thereof, and nine members o f the
House o f Representatives, to be appointed by the Speaker
thereof; and any vacancy on the Commission shall be
filled in the same manner as the original appointment,
changes* in

S ec .

T hat it shall be the duty o f this Commission

tem^etc^ S S *° ^ncluire
y
ar*d report to Congress at the earliest date
practicable, what changes are necessary or desirable in

469

LAWS CONCERNING BANKING.

the monetary system o f the United States or in the laws
relating to banking and currency, and for this purpose
they are authorized to sit during the sessions or recess o f

Authorlty-

Congress, at such times and places as they may deem
desirable, to send for persons and papers, to administer
oaths, to summons and compel the attendance o f w it­
nesses, and to employ a disbursing officer and such secre­
taries, experts, stenographers, messengers, and other as-

officials-

sistants as shall be necessary to carry out the purposes for
which said Commission was created.

The Commission

P ow ers,

shall have the power, through subcommittee or otherwise,
to examine witnesses and to make such investigations and
examinations, in this or other countries, o f the subjects
committed to their charge as they shall deem necessary.
S ec . 19. T hat a sum sufficient to carry out the purposes ti0nPproprla'
o f sections seventeen and eighteen o f this A ct, and to pay
the necessary expenses o f the Commission and its members, is hereby appropriated, out o f any money in the
Treasury not otherwise appropriated. Said appropria- avI “ ^ >
a f^lately
tion shall be immediately available and shall be paid out Accounts.
°n the audit and order o f the chairman or acting chair­
man o f said Commission, which audit and order shall be
conclusive and binding upon all Departments as to the
correctness o f the accounts o f such Commission.
S ec. 20. T hat this A c t shall expire by limitation on th e ofTermination
irtieth day o f June, nineteen hundred and fourteen.

Approved, M ay 30, 1908.
A C T O F M A R C H 4, 1909.

— A n act making appropriations to supply 93^5 stat- Lm
ofciencies in the appropriations for the fiscal year
ending June thirtieth, nineteen hundred and nine, and
' ° 7 Vri°r years, and for other purposes.

^ II‘AP’

*

*

*

*

*

That the members o f the National Monetary Commis- Monetary°cowlon, who were appointed on the thirtieth day o f M ay, missionnineteen hundred and eight, under the provisions o f sec­
tion seventeen o f the A c t entitled “ A n A c t to amend the
na lonal banking laws,” approved M ay thirtieth, ninecen

undred and eight, shall continue to constitute the

a lonal Monetary Commission until the final report o f
sai

commission shall be made to Congress; and said




continued,




470

NATIONAL MONETARY COMMISSION.

Comp e n ’ National Monetary Commission are authorized to pay to

s a tion .

such o f its members as are not at the time in the public
service and receiving a salary from the Government, a
salary equal to that to which said members would be en­
titled i f they were members o f the Senate or House of
Representatives.

A ll A cts or parts o f A cts inconsistent

with this provision are hereby repealed.
H
e

*

*

Approved, March 4, 1909.

*

*

COINAGE

— 10--- 32







COINAGE.

A R T IC L E S

OF

C O N F E D E R A T IO N

OF

JULY

9,

1778.
A

S ec . 4 .— The United

r t ic l e

1 stat. L., 7.

9.

States, in Congress assembled,

^hall also have the sole and exclusive right and power o f
regulating the alloy and value o f coin struck by their
Wv n authority, or by that o f the respective States; fixing
tbe standard o f weights and measures throughout the
United States; * * *
T H E C O N S T IT U T IO N O F T H E U N IT E D S T A T E S .
A

r t ic l e

1 Stat. L., 14.

1.

S ec 8-— The Congress shall have power
To coin money, regulate the value thereof, and o f for.
-------------------------------------------------------- — ---*
cign coin, and fix the standard o f weights and measures:
I o provide for the punishment o f counterfeiting the
securities and current coin o f the United S tates:
A

S ec.

r t ic l e

10.— N o State shall

*

*

*

*.
1 Stat. L., 15.

1.

*

* ; coin m oney; emit

)!
credit; make any thing but gold and silver coin
a tender in payment o f debts; * * *.
R E S O L U T I O N O F M A R C H 3, 1791.
. Resolved by the Senate and /louse of Repre­
sentatives of the United States of America in Congress
<ssembled, I hat a mint shall be established under such
regulations as shall be directed by law.




1 Stat. L.,

225.

A m int to be
esta b lish ed .

473


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102