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THIETY-EIGH TH CONGRESS.

Ssss. I.

Ch . 104, 106.

99

1864.

proof as aforesaid of the completion of the additional sections of the
road as aforesaid; and upon the failure of either company to complete
either section as aforesaid, to be annually built, the portion of the land
remaining uncertified shall become subject to the control and disposition of
the legislature of the State of Iowa, to aid in the completion of such road.
S e c . 9 . And be it further enacted, That all lands hereafter certified to aftg* certified" to
either of the land-grant railroads in said state, and lying opposite any (je 0ffere(j for sale
completed section of such road, shall be offered for sale by the company within three
to which they shall be certified within three years from the completion of years>&
csuch section, if then certified ; and if not, then within three years from
the date of such certificate at reasonable prices; and if not all sold within
that period then during the fourth year all such lands remaining unsold When to be
shall be exposed to public sale, after previous notice posted at the county
10Pubn°
seat of the county in which such lands shall be situated, to the highest
bidder, and in tracts not exceeding one hundred and sixty acres each.
A p p r o v e d , June 2 , 1 8 6 4 .
C h a p .

C IV . —

Art A ct to incorporate the News-boys’ Home.

J u n e

2, 1864.

Be it enacted by the Senate and Home o f Representatives o f the United
States of America in Congress assembled, That Joseph Henry, J. W. “
Forney, Henry Beard, Sayles J. Bowen, and A. M. Gangwer, their wLhington
associates and successors, being members of said society, by paying into city ” incorpoits treasury the sum of two dollars annually, or life members, by paying ratedfifty dollars at one time, are hereby incorporated and made a body politic,
by the name of “ The News-boys’ Home of Washington City,” for the
purpose of providing lodgings, meals, and instruction to such homeless and
indigent boys as may properly come under the charge of such association, Powers of corto provide for them a suitable home, board, clothing, and instruction, and poration.
to bring them under Christian influence ; and by that name shall have
perpetual succession, with power to use a common seal, to sue and be
sued, to plead and be impleaded in any court of competent jurisdiction
within the District of Columbia, to collect subscriptions, make by-laws,
rules, and regulations needful for the government of said corporation not
inconsistent with the laws of the United States; to have, hold, and re­
ceive real estate by purchase, gift, or devise; to use, sell, or convey the
same for the purposes and benefit of said corporation, and to choose such
officers and teachers as may be necessary, prescribe their duties, and fix
the rate of their compensation.
S e c . 2. And be it further enacted, That the officers of said association Officers, &
c.
shall consist of a president, two vice-presidents, secretary, treasurer, and
a board of managers, to be composed of fifteen members, the whole to
constitute an executive committee, whose duty it shall be to carry into
effect the plans and purposes for which said association was formed, all of
which officers shall be elected on the first Tuesday in February in each
year at the annual meeting of said association, which shall be held on said
day; their successors shall be elected and hold their offices for the term
of one year, and until their successors shall be duly elected. And in case
of a vacancy it shall be filled by the other members of the executive
committee.
A p p r o v e d , June 2, 1864.
— An A ct to provide a National Currency, secured by a Pledge o f U n ited ___ J » n e 3, 18G4.
States Bonds, and to provide fo r the Circulation and Redemption thereof.
1865, ch. 78,

C h a p . C V I.

6, 7.

Be it enacted by the Senate and House o f Representatives o f the United Post, p. 484.
States of America in Congress assembled, That there shall be estab- C urrency bulished in the treasury department a separate bureau, which shall be reau estat>hshe<l
charged with the execution of this and all other laws that may be passed
by congress respecting the issue and regulation of a national currency

100

THIRTY-EIG H TH CONGRESS.

Sess.

I.

Ch. 106.

1864.

secured by United States bonds. The chief officer of the said bureau shall
be denominated the comptroller of the currency, and shall be under the gen­
eral direction of the Secretary of the Treasury. He shall be appointed
Appointment. by the President, on the recommendation of the Secretary of the Treas­
ury, by and with the advice and consent of the Senate, and shall hold his
Term of office. office for the term of five years unless sooner removed by the President,
upon reasons to be communicated by him to the Senate ; he shall receive
SaUry.
an annual salary of five thousand dollars; he shall have a competent
Deputy comp­ deputy, appointed by the secretary, whose salary shall be two thousand
troller.
five hundred dollars, and who shall possess the power and perform the
duties attached by law to the office of comptroller during a vacancy in
such office and during his absence or inability; he shall employ, from
tinffe to time, the necessary clerks to discharge such duties as he shall
direct, which clerks shall be appointed and classified by the Secretary of
Clerks.
the Treasury in the manner now provided by law. Within fifteen days
Comptroller to from the time of notice of his appointment the comptroller shall take and
take oath -within
subscribe the oath of office prescribed by the constitution and laws of the
what time.
United States; and he shall give to the United States a bond in the pen­
Bond.
alty of one hundred thousand dollars, with not less than two responsible
sureties, to be approved by the Secretary of the Treasury, conditioned
for the faithful discharge of the duties of his office. The deputy-compOath and bond troller so appointed shall also take the oath o f office prescribed by the
of deputy comp­
constitution and laws of the United States, and shall give a like bond in
troller.
Not to be in­ the penalty of fifty thousand dollars. The comptroller and deputy-compterested in any troller shall not, either directly or indirectly, be interested in any associa­
banking associa­
tion issuing national currency under the provisions of this act.
tion.
S e c . 2 . And be it further enacted, That the comptroller of the cur­
Seal of cur­
rency bureau,
rency, with the approval of the Secretary of the Treasury, shall devise a
and where to seal, with suitable inscriptions, for his office, a description of which, with
be kept.
a certificate of approval by the Secretary of the Treasury, shall be filed
in the office of the Secretary of State with an impression thereof, which
shall thereupon become the seal of office of the comptroller of the cur­
Certain papers rency, and the same may be renewed when necessary. Every certifi­
under such seal
cate, assignment, and conveyance executed by the comptroller, in pursu­
to be evidence.
ance of any authority conferred on him by law, and sealed with his seal
of office, shall be received in evidence in all places and courts whatsoever;
and all copies of papers in the office of the comptroller, certified by him
and authenticated by the said seal, shall in all cases be evidence equally
Impression may and in like manner as the original. An impression of such seal directly
be upon paper.
on the paper shall be as valid as if made on wax or wafer.
Rooms for cur­
S e c . 3 . And be it further enacted, That there shall be assigned to
rency bureau.
the comptroller of the currency by the Secretary of the Treasury suit­
able rooms in the treasury building for conducting the business of the
Fire-proof
currency bureau, in which shall be safe and secure fire-proof vaults, in
vaults.
which it shall be the duty of the comptroller to deposit and safely keep
all the plates not necessarily in the possession of engravers or printers,
and other valuable things belonging to his department; and the comp­
Furniture, &c. troller shall from time to time furnish the necessary furniture, stationery,
fuel, lights, and other proper conveniencies for the transaction of the said
business.
Term “ United
S e c . 4. And be it further enacted, That the term “ United States
States Bonds ”
to include what. Bonds,” as used in this act, shall be construed to mean all registered bonds
now issued, or that may hereafter be issued, on the faith of the United
States by the Secretary of the Treasury in pursuance of law.
S e c . 5 . And be it further enacted, That associations for carrying on th«
Banking asso­
business of banking may be formed by any number of persons, not less
ciations, how
may be formed. in any case than five, who shall enter into articles of association, which
shall specify in general terms the object for which the association is formed,
and may contain any other provisions, not inconsistent with the proComptroller of
the currency.

THIRTY-EIGHTH CONGRESS.

S ess.

I.

Ch. 106.

1864.

101

visions of this act, which the association may see fit to adopt for the
regulation of the business of the association and the conduct of its affairs,
which said articles shall be signed by the persons uniting to form the
association, and a copy of them forwarded to the comptroller of the cur­
rency, to be filed and preserved in his office.
S e c . 6. And be it further enacted, That the persons uniting to form Organization
such an association shall, under their hands, make an organization certi- gp^y1 6 t0
1
ficate, which shall specify —
First. The name assumed by such association, which name shall be name,
subject to the approval of the comptroller.
Second. The place where its operations of discount and deposit are to P,ace of busl*
be carried on, designating the state, .territory, or district, and also the par’
ticular county and city, town, or village.
Third. The amount of its capital stock, and the number of shares into capital and
which the same shall be divided.
shares,
Fourth. The names and places of residence of the shareholders, and 0fn
shTretidders.
the number of shares held by each of them.
purpose of cerFifth. A declaration that said certificate is made to enable such per- tifcate.
sons to avail themselves of the advantages of this act.
The said certificate shall be acknowledged before a judge of some Certificate to be
court of record or a notary public, and such certificate, with the acknowl- acknowledged,
edgment thereof authenticated by the seal of such court or notary, shall
be transmitted to the comptroller of the currency, who shall record and
carefully preserve the same in his office. Copies of such certificate, duly Copies under
certified by the comptroller, and authenticated by his seal of office, shall
be evl’
be legal and sufficient evidence in all courts and places within the United
States, or the jurisdiction of the government thereof, of the existence of
such association, and of every other matter or thing which could be
proved by the production of the original certificate.
S e c . 7. And be it further enacted, That no association shall be or- , Amount of capganized under this act, with a less capital than one hundred thousand f^an^&c n0t ^
dollars, nor in a city whose population exceeds fifty thousand persons,
with a less capital than two hundred thousand dollars: Provided, That Proviso,
banks with a capital of not less than fifty thousand dollars may, with the
approval of the Secretary of the Treasury, be organized in any place the
population of which does not exceed six thousand inhabitants.
S e c . 8. And be it further enacted, That every association formed Associations
pursuant to the provisions of this act shall, from the date of the execution when to be corof its organization certificate, be a body corporate, but shall transact no ^hento combusiness except such as may be incidental to its organization and neces- mence business,
sarily preliminary, until authorized by the comptroller of the currency to
commence the business of banking. Such association shall have power
to adopt a corporate seal, and shall have succession by the name desig- Seal,
nated in its organization certificate, for the period of twenty years from its
organization, unless sooner dissolved according to the provisions of its tw®a co“tin^ 1
ty e
articles of association, or by the act of its shareholders owning two thirds
of its stock, or unless the franchise shall be forfeited by a violation of this
act; by such name it may make contracts, sue and be sued, complain and General powers,
defend, in any court of law and equity as fully as natural persons; it may
elect or appoint directors, and by its board of directors appoint a president, Directors and
vice-president, cashier, and other officers, define their duties, require officersbonds of them and fix the penalty thereof, dismiss said officers or any of
them at pleasure, and appoint others to fill their places, and exercise
under this act all such incidental powers as shall be necessary to carry
on the business of banking by discounting and negotiating promissory
notes, drafts, bills of exchange, and other evidences of debt; by receiving
deposits ; by buying and selling exchange, coin, and bullion; by loaning
money on personal security; by obtaining, issuing, and circulating notes
according to the provisions of this act; and its board of directors shall
9*

102

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I.

Ch .

106.

1864.

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 trans­
ferred, its directors elected or appointed, its officers appointed, its prop­
erty transferred, its general business conducted, and all the privileges
granted by this act to associations organized under 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.
Sec. 9. And be it further enacted, That the affairs of every associa­
Directors; qual­
ifications ;
tion shall be managed by not less than five directors, one of whom shall
one to be pres­ be the president. Every director shall, during his whole term of service,
ident.
be a citizen of the United States; and at least three fourths of the direc­
tors 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 of the capital stock
of the association of which he is a director. Each director, when ap­
Oath.
pointed or elected, shall take an oath that he will, so far as the duty de­
volves on him, diligently and honestly administer the affairs of such asso­
ciation, and will not knowingly violate, or willingly permit to be violated,
any of the provisions of this act, and that he is the bona fide owner, in
his own right, of the number of shares of stock required by this act, sub­
scribed by him, or standing in his name on the books of the association,
and that the same is not hypothecated, or in any way pledged, as security
for any loan or debt; which oath, subscribed by himself, and certified by
the officer before whom it is taken, shall be immediately transmitted to
the comptroller of the currency, and by him filed and preserved in his
office.
S e c . 10. And le it further enacted, That the directors of any associa­
Term of office
of directors.
tion first elected or appointed shall hold their places until their successors
shall be elected and qualified. All subsequent elections shall be held
Elections.
annually on such day in the month of January as may be specified in
the articles of association; and the directors so elected shall hold their
places for one year, and until their successors are elected and qualified.
But any director ceasing to be the owner of the requisite amount of stock,
or having in any other manner become disqualified, shall thereby vacate
Vacancies, how his place. Any vacancy in the board shall be filled by appointment by
’ filled.
the remaining directors, and any director so appointed shall hold his place
until the next election. I f from any cause an election of directors shall
not be made at the time appointed, the association shall not for that
cause be dissolved, but an election may be held on any subsequent day,
thirty days’ notice thereof in all cases having been given in a newspaper
published in the city, town, or county in which the association is located;
and if no newspaper is published in such city, town, or county, such notice
shall be published in a newspaper published nearest thereto. If the arti­
cles of association do not fix the day on which the election shall be held,
or if the election should not be held on the day fixed, the day for the elec­
tion shall be designated by the board of directors in their by-laws, or
otherwise: Provided, That if the directors fail to fix the day, as aforesaid,
shareholders representing two thirds of the shares may.
Voting and
S e c . 11. And be it further enacted, That in all elections of directors,
proxies.
and in deciding all questions at meetings of shareholders, each share­
holder shall be entitled to one vote on each share of stock held by him.
Shareholders may vote by proxies duly authorized 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.
Capital stock
S e c . 12. And be it further enacted, That the capital stock of any as­
to be divided
sociation formed under this act shall be divided into shares of one hundred
into shares.
dollars each, and be deemed personal property and transferable on the
By-laws.

THIRTY-EIG HTH CONGRESS..

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I.

Ch. 106.

1864.

103

books of the association in such manner as may be prescribed in the by­
laws or articles of association ; and every person becoming a shareholder
by such transfer shall, in proportion to his shares, succeed to all the rights Transfer,
and liabilities of the prior holder of such shares, and no change shall Eights of exbe made in the articles of association by which the rights, remedies, or isting creditors
security of the existing creditors of the association shall be impaired, p°;re e lm"
0|.
The shareholders of each association formed under the provisions of this
act, and of each existing bank or banking association that may accept the
provisions of this act, shall be held individually responsible, equally and Individual Iiaratably, and not one for another, for all*contracts, debts, and engagements blIity'
of such association to the extent of the amount of their stock therein at
the par value thereof, in addition to the amount invested in such shares;
except that shareholders of any banking association now existing under
state laws, having not less than five millions of dollars of capital actually
paid in, and a surplus of twenty per centum on hand, both to be deter­
mined by the comptroller of 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
act ; and if at any time there shall be a deficiency in said surplus of
twenty per centum, the Said banking association shall not pay any divi­
dends to its shareholders until such deficiency shall be made good; and
in case of such deficiency, the comptroller of the currenpy may compel said
banking association to close its business and wind up its affairs under the
provisions of this act. And the comptroller shall have authority to with- When eomphold from an association his certificate authorizing the commencement of ^
business, whenever he shall have reason to suppose that the shareholders
thereof have formed the same for any other than the legitimate objects
contemplated by this act.
S e c . 13. A ndie it further enacted, That it shall be lawful for any asso- Increase ofcap­
tation formed under this act, by its articles of association, to provide for an ital stock,
increase of its capital from time to time, as may be deemed expedient, sub­
ject to the limitations of this act: Provided, That the maximum of such Maximum,
increase in the articles of association shall be determined by the comptrol­
ler of the currency; and no increase of capital shall be valid until the
whole amount of such increase shall be paid in, and notice thereof shall
have been transmitted to the comptroller of the currency, and his certifi­
cate obtained specifying the amount of such increase of capital stock, with
his approval thereof, and that it has been duly paid in .as part of the capi­
tal of such association. And every association shall have power, by the
vote of shareholders owning 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 of associations : Provided, That by no such re- Minimum,
duction shall its capital be brought below the amount required by this act
for its outstanding circulation, nor shall any such reduction be made until
the amount of the proposed reduction has been reported to the comptroller
of the currency and his approval thereof obtained.
S e c . 14. And be it further enacted, That at least fifty per centum of a^™°u“
efo°ebe
the capital stock of every association shall be paid in before it shall be commencing*
authorized to commence business ; and the remainder of the capital stock business,
of such association shall be paid in instalments of at least ten per centum Remainder,
each on the whole amount of the capital as frequently as one instalment w en 0 e Pai •
at the end of each succeeding month from the time it shall be authorized
by the comptroller to commence business ; and the payment of each instal­
ment shall be certified to the comptroller, under oath, by the president or
cashier of the association.
' S e c . 15. And be it further enacted, That if any shareholder, or his as- Proceedings,
eignee, shall fail to pay any instalment on the stock when the same is re- if .shareholder
quired by the foregoing section to be paid, the director^ of such associa- stalmentsf m~
tion may sell the stock of such* delinquent shareholder at public auction,

104

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Ch. 106.

1864.

having given three weeks’ previous notice thereof in a newspaper pub­
lished and of 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 of advertisement and sale; and the excess, if any, shall
be paid to the delinquent shareholder. I f no bidder can be found who
will pay for such stock the amount due thereon to the association, and the
cost of advertisement and sale, the amount previously paid shall be for­
feited to the association, and such slock shall be sold as the directors may
order, within six months from the time of such forfeiture, and if not sold it
shall be cancelled and deducted from the capital stock of the association;
and if such cancellation and reduction shall reduce the capital of the asso­
ciation below the minimum of capital required by this act, the capital
stock shall, within thirty days from the date of such cancellation, be in­
creased to the requirements of the act; in default of which a receiver
may be appointed to close up the business of the association according to
the provisions of the fiftieth section of this act.
United States
S e c . 1 6 . And be it further enacted, That every association, after having
registered bonds
to be deposited complied with the provisions of this act, preliminary to the commence­
with treasurer to ment of banking business under its provisions, and before it shall be
an amount equal authorized to commence business, shall transfer and deliver to the treas­
to one thifd of the
urer of the United States any United States registered bonds bearing in­
capital stock.
terest 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 of the United States and by him safely kept in his office
until the same shall be otherwise disposed of, in pursuance of the pro­
visions of this a c t; and the Secretary of the Treasury is hereby author­
ized to receive 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 to run ; and the deposit of bonds shall
be, by every association, increased as its capital may be paid up or in­
Deposit to be creased, so that every association shall at all times have on deposit with
increased;
the treasurer registered United States bonds to the amount of at least
one third of its capital stock actually paid in : Provided, That nothing in
may be dimin­ this section shall prevent an association that may desire to reduce its
ished.
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
of bonds beyond one third of its capital stock and upon which no circulat­
ing notes have been delivered.
Comptroller to
S e c . 1 7 . A nd be it further enacted, That whenever a certificate shall
examine and de­
termine if associ­ have been transmitted to the comptroller of the currency, as provided in
ation can com­
this act, and the association transmitting the same shall notify the comp­
mence business. troller that at least fifty per centum of its capital stock has been paid in
as aforesaid, and that such association has complied with all the provis­
ions 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 of such association, ascertain especially
the amount of money paid in on account of its capital, the name and place
of residence of each of the directors of such association, and the amount
of the capital stock of which each is the bona fide owner, and generally
whether such association has complied with all the requirements of this
act to entitle it to engage in the business of banking; and shall cause to
be made and attested by the oaths of a majority of the directors and by
the president or cashier of such association, a statement of all the facts
necessary to enable the comptroller to determine whether such association
is lawfully entitled to commence the business of banking under this act.
S e c . 1 8 . And be it further enactedThat if, upon a careful examination

Stock of delin­
quent share­
holders to be
sold.

TH IRTY-EIG H TH CONGRESS.

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Ch. 106.

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105

of the facts so reported, and of any other facts which may come to the . YSefoand>
ST"
knowledge of the comptroller, whether by means of a special commission
com_
appointed by him for the purpose of inquiring into the condition of such mence business,
association, or otherwise, it shall appear that such association is lawfully ^^ora^cate
entitled to commence the business of 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 witk before being entitled to commence the business of banking
under it, and that such association is authorized to commence said busi­
ness accordingly ; and it shall be the duty of the association to cause said
certificate to be published in some newspaper published in the city or Certificate to
county where the association is located for at least sixty days next after 13(3 published,
the issuing thereof: Provided, That if no newspaper is published in such
city or county the certificate shall be published in a newspaper published
nearest thereto.
S e c . 1 9 . And be it further enacted, That all transfers of United States Transfers of
bonds which shall be made by any association under the provisions of ^t ^s
™
this act shall be made to the treasurer of the United States in trust for to the treasurer
the association, with a memorandum written or printed on each bond, and tru3tsigned by the cashier or some other officet of the association making the
deposit, a receipt therefor to be given to said association, or by the comp­
troller of the currency, or by a clerk appointed by him for that purpose, How executed,
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 of any such bonds by the treasurer shall be
deemed valid or of binding force and effect unless countersigned by the
comptroller of the currency. It shall be the duty of the comptroller of
the currency to keep in his office a book in which shall be entered the Comptroller to
name of every association from whose accounts such transfer of bonds is
tr *
J nsfer
made by the treasurer, and the name of the party to whom such transfer
’
is made ; and the par value of the bonds so transferred shall be entered
therein; and it shall be the duty of the comptroller, immediately uppn
countersigning and entering the same, to advise by' mail the association
from whose account such transfer was made of the kind and numerical
designation of the bonds and the amount thereof so transferred.
S e c . 2 0 . And be it furth&r enacted, That it shall be the duty of the Transfers to be
comptroller of the currency to countersign and enter in the book, in the anTentered^
manner aforesaid, every transfer or assignment of any bonds held by the
treasurer presented for his signature; and the comptroller shall have at
all times during office hours access to the books of the treasure?, for the Books to be
purpose of ascertaining the correctness of the transfer or assignment pre- accessible,
sented 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 of the entries in the same ; and the comptrol­
ler shall also at all times have access to the bonds on deposit with the
treasurer, to ascertain their amount and condition.
S e c . 2 1 . And be it further enacted, That upon the transfer and de- Associations,
livery of bonds to the treasurer, as provided in the foregoing section, the
recefvecirassociation making the same shall be entitled to receive from the comp- culating notes,
troller of the currency circulating notes of different denominations, in
blank, registered and countersigned as hereinafter provided, equal in .p0s«’p. "9s!
4
amount to ninety per centum of the current market value of the United
’
States bonds so transferred and delivered, but not exceeding ninety per Limit of
centum of the amount of said bonds at the par value thereof, if bearing amount,
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 tim.e actually paid in of its capital stock.
Sec. 22. And be it further enacted, That the entire amount ot notes

106

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Ch. 106.

1864.

for circulation to be issued under this act shall not exceed three hundred
millions of dollars. In order to furnish suitable notes for circulation, the
comptroller of the currency is hereby authorized and required, under the
Comptroller to direction of the Secretary of the Treasury, to cause plates and dies to be
prepare the notes. engraved, in the best manner to guard against counterfeiting and fraudu­
lent alterations, and to have printed therefrofli, and numbered, such quan­
Denominations. tity of circulating notes, in blank, of the denominations of 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 entitled to
receive the same; which notes shall express upon their face that they are
Notes to ex­
press what.
secured by United States bonds, deposited with the treasurer of the
United States by the written or engraved signatures of the treasurer and
register, and by the imprint of the seal of the treasury; and shall also
express upon their face the promise of the association receiving the same
to pay on demand, attested by the signatures of the president or viceDevices.
president and cashier. And the said notes shall bear such devices and
such other statements, and shall be in such form, as the Secretary of the
Treasury shall, by regulation, direct: Provided, That not more than one
sixth part of the notes furnished to an association shall be of a less denom­
ination than five dollars, and that after specie payments shall be resumed
■Notes under
$5.
no association shall be furnished with notes of a less denomination than
five dollars.
When notes
S e c . 23. And be it further enacted, That after any such association
may be circu­
lated as money; shall have caused its promise to pay such notes on demand to be signed
by the president or vice-president and cashier thereof, in such manner as
to make them obligatory promissory notes, payable on demand, at its place
of business, such association is hereby authorized to issue and circulate
to be received the same as money; and the same shall be received at par in all parts of
for all dues, ex­
the United States in payment of taxes, excises, public lands, and all other
cept, &c.
dues to the United States, except for duties on imports ; and also for all
salaries and other debts and demands owing by the United States to indivi­
duals, corporations, and associations within the United States, except interest
on the public debt, and in redemption of the national currency. And no
Post notes, &c., such association shall issue post notes or any other notes to circulate as
not to be issued.
money than such as are authorized by the foregoing provisions of this
act.
S e c . 24. And be it further enacted, That it shall be the duty of the
Worn-out and
mutilated notes. comptroller of the currency to receive worn-out or mutilated circulating
notes issued by any such banking association, and also, on due proof of
the destruction of any such circulating notes, to deliver in place thereof
to such association other blank circulating notes to an equal amount.
And 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 circulating notes
which shall have been paid or surrendered to be cancelled, shall be burned
to ashes in presence of four persons, one to be appointed by the Secretary
of the Treasury, one by the comptroller of the currency, one by the
treasurer of the United States, and one by the association, under such
regulations as the Secretary of the Treasury may prescribe. And a cer­
tificate of such burning, signed by the parties so appointed, shall be made
in the books of the comptroller, and a duplicate thereof forwarded to the
association whose notes are thus cancelled.
Associations to
Sec. 25. And be it further enacted, That it shall be the duty of every
examine annual­
ly its bonds de­ banking association having bonds deposited in the office of the treasurer
posited, and
of the United States, once or oftener in each fiscal year, and at such time
make certificate. or times during the ordinary business hours as said officer or officers may
select, to examine and compare the bonds so pledged with the books of
the comptroller and the accounts of the association, and, if found correct,
Entire circula­
tion not to exceed
$300,000,000.

THIRTY-EIGHTH CONGRESS.

S e ss.

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Ch. 106.

107

1864.

to execute to the said treasurer a certificate setting forth the different Examination of
kinds and the amounts thereof, and that the same are in the possession associatlonsand custody of the treasurer at the date of such certificate. Such exam­
ination may be made by an officer or agent of such association, duly
appointed in writing for that purpose, whose certificate before mentioned
shall be of like force and validity as if executed by such president or
cashier; and a duplicate signed by the treasurer shall be retained by the
association.
S e c . 26. And be it further enacted, That the bonds transferred to and Deposited
deposited with the treasurer of the United States, as hereinbefore pro- exclusively to
vided, by any banking association for the security of its circulating notes, secure circulashall be held exclusively for that purpose, until such notes shall be tlon'
redeemed, except as provided in this act; but the comptroller of the cur- Provision as to
rency shall give to any such banking association powers of attorney to interest,
receive and appropriate 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. Whenever the market or cash value of If bonds deany bonds deposited with the treasurer of the United States, as aforesaid, shall be reduced below the amount of the circulation issued for the
e ma e S00
same, the comptroller of the currency is hereby authorized to demand and
receive the amount of 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 depre­
ciation continues. And said comptroller, upon the terms prescribed by
the Secretary of the Treasury, may permit an exchange to be made of Bonds may be
any of the bonds deposited with the treasurer by an association for other exchanged, if,
bonds of the United States authorized by this act to be received as secu- ^c''
rity for circulating notes, if he shall be of opinion that such an exchange
can be made without prejudice to the United States, and he may direct
the return of any of said bonds to the banking association which transferred { may he rethe same, in sums of not less than one thousand dollars, upon the surren- cellTtion o fc ir -1"
der to him and the cancellation of a proportionate amount of such cir- culating notes,
culating notes: Provided, That the remaining bonds which shall have Proviso,
been transferred by the banking association offering to surrender circulat­
ing notes shall be equal to the amount required for the circulating notes
not surrendered by such banking association, and that the amount of bonds
in the hands of the treasurer 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 cir­
culating notes, and no other violation by such association of the provis­
ions of this act, and that the market or cash value of the remaining bonds
shall not be below the amount required for the circulation issued for the
same.
S e c . 27. And be it further enacted, That it shall be unlawful for any
counterofficer acting under the provisions of this act to countersign or deliver to signing and deany association, or to any other company or person, any circulating notes jatin7 notes^*1"
contemplated by this act, except as hereinbefore provided, and in accord- except as perance with the true intent and meaning of this act. And any officer who mitted by this
shall violate the provisions of this section shall be deemed guilty of a high ^ made unIaw"
misdemeanor, and on conviction thereof shall be punished by fine not Penalty,
exceeding double the amount so countersigned and delivered, and im­
prisonment not less than one year and not exceeding fifteen years, at the
discretion of the court in which he shall be tried.
S e c . 28. And be it further enacted, That it shall be lawful for any Associations
such association to purchase, hold, and convey real estate as fol- certain real&
may hold, esc.,
,
r
»
7
j
lo w s : —

First. Such as shall be necessary for its immediate accommodation in
the transaction of its business.

tate.

108

TH IRTY-EIG H TH CONGRESS.

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I.

Ch. 106.

1864.

Second. Such as shall be mortgaged to it in good faith by way of secu­
rity for debts previously contracted.
Third. Such as shall be conveyed to it in satisfaction of debts previously
contracted in the course of its dealings.
Fourth. Such as it shall purchase at sales under judgments, decrees,
or mortgages held by such association, or shall purchase to secure debts
due to said association.
Such associations shall not purchase or hold real estate in any other
case or for any other purpose than as specified in this section. Nor shall
it hold the possession of any real estate under mortgage, or hold the title
and possession of any real estate purchased to secure any debts due to it
for a longer period than five years.
No person, &c.,
S e c . 29. And be it further enacted, That the total liabilities to any
to be liable to
association, of any person, or of any company, corporation, or firm for
association for
more than, &c. money borrowed, including in the liabilities of a company or firm the
liabilities of the several members thereof, shall at no time exceed one
tenth part of the amount of the capital stock of such association actually
Certain dis­
paid in: Provided, That the discount of bona fide bills of exchange
counts not to b drawn against actually existing values, and the discount of commercial or
included.
business paper actually owned by the person or persons, corporation, or
firm negotiating the same shall not be considered as money borrowed.
Rate of inter­
S e c . 30. And be it further enacted, That every association may take,
est.
receive, reserve, and charge on any loan or discount made, or upon any
note, bill of exchange, or other evidences of debt, interest at the rate
allowed by the laws of the state or territory where the bank is located,
and no more, except that where by the laws of any state a different rate
is limited for banks of issue organized under state laws, the rate so limited
shall be allowed for associations organized in any such state under this act.
And when no rate is fixed by the laws of 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
Penalty for
for which the note, bill, or other evidence of debt has to run. And the
taking greater
knowingly taking, receiving, reserving, or charging a rate of interest
interest.
greater than aforesaid shall be held and adjudged a forfeiture of the entire
interest which the note, bill, or other evidence of debt carries with it, or
which has been agreed to be paid thereon. And in case a greater rate of
interest has been paid, the person or persons paying the same, or their
legal representatives, may recover back, in any action of debt, twice the
amount of the interest thus paid from the association taking or receiving
Action to be
the same: Provided, That such action is commenced within two years
commenced in
from the time the usurious transaction occurred. But the purchase, dis­
two years.
count, or sale of a bona fide bill of exchange, payable at another place
than the place of such purchase, discount, or sale, at not more than the
current rate of exchange for sight drafts in addition to the interest, shall
not be considered as taking or receiving a greater rate of interest.
Amount of
S e c . 31. And be it further enacted, That every association in the
money to be kept cities hereinafter named shall, at all times, have on hand, in lawful money
on hand.
of the United States, an amount equal to at least twenty-five per centum
of the aggregate amount of its notes in circulation and its deposits; and
every other association shall, at all times, have on hand, in lawful money
of the United States, an amount equal to at least fifteen per centum of
the aggregate amount of its notes in circulation, and of its deposits. And
whenever the lawful money of any association in any of the cities here­
inafter named shall be below the amount of twenty-five per centum of its
circulation and deposits, and whenever the lawful money of any other
association shall be below fifteen per centum of its circulation and de­
Liabilities not posits, such associations shall not increase its liabilities by making any
to be increased
until reserve is new loans or discounts otherwise than by discounting or purchasing bills
made good.
of exchange payable at sight, nor make any dividend of its profits until
Real estate.

TH IRTY-EIG H TH CONGRESS.

S

ess.

I.

Ch. 106.

1864

109

the required proportion between the aggregate amount of its outstanding
notes of circulation and deposits and its lawful money of the United
States shall be restored: Provided, That three fifths of said fifteen per
de­
centum may consist of balances due to an association available for the ^emption^rf cirredemption of its circulating notes from associations approved by the culation in cercomptroller of the currency, organized finder this act, in the cities of
910 be
Saint Louis, Louisville, Chicago, Detroit, Milwaukie, New Orleans, Cin­
cinnati, Cleveland, Pittsburg, Baltimore, Philadelphia, Boston, New York,
Albany, Leavenworth, San Francisco, and Washington City: Provided,
also, That clearing-house certificates, representing specie or lawful money Clearing-house
specially deposited for the purpose of any clearing-house association, aeenfedTaw^ii6
shall be deemed to be lawful money in the possession of any association money for this
belonging to such clearing-house holding and owning such certificate, and purpose,
shall be considered to be a part of the lawful money which such associa­
tion is required to have under the foregoing provisions of this section :
Provided, That the cities of Charleston and Richmond may be added to charleston and
the list of cities in the national associations of which other associations Richmond,
may keep three fifths of their lawful money, whenever, in the opinion of
the comptroller of the currency, the condition of the southern states will
warrant it And it shall be competent for the comptroller of the currency
to notify any association, whose lawful money reserve as aforesaid shall jf association
be below the amount to be kept on hand as aforesaid, to make good such fails, after notice,
reserve ; anofeif such association shall fail for thirty days thereafter so to
g00li its
make good its reserve of lawful money of the United States, the comp­
troller may, with the concurrence of the Secretary of the Treasury, ap­
point a receiver to wind up the business of such association, as provided
in this act.
S e c . 32. And be it further enacted, That each association organized Circulation to
in any of the cities named in the foregoing section shall select, subject to he redeemed in
the approval of the comptroller of the currency, an association in the New York at pac'
city of New York, at which it will redeem its circulating notes at par.
And each of such associations may keep one half of its lawful money
reserve in cash deposits in the city of New York. And each association Certain associnot organized within the cities named in the preceding section shall select, piaceVor redempsubject to the approval of the comptroller of the currency, an association tion of ciiculain either of the cities named in the preceding section at which it w illtionredeem its circulating notes at par, and the comptroller shall give public
notice of the names of the associations so selected at which redemptions
are to be made by the respective associations, and of any change that may
be made of the association at which the notes of any association are re­
deemed. If' any association shall fail either to make the selection or to Proceedings in
redeem its notes as aforesaid, the comptroller of the currency may, upon case of failure,
receiving 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 relieve any association from its liability to redeem its
circulating notes at its own counter, at par, in lawful money, on demand:
And provided, further, That every association formed or existing under Each associathe provisions of this act shall take „and receive at *. ’ for ,any debt■ or ot other associapar, ,
fake n?tea
. .
,
,
•*
liability to said association, any and all notes or bills issued by any asso- tions.
ciation existing under and by virtue of this act.
S e c . 33. And be it further enacted, That the directors of any associa- Dividends,
tion may, semi-annually, each year, declare a dividend of so much of the
net£ profits of the association as they shall judge expedient; but each
association shall, before the declaration of a dividend, carry one tenth part
of its net? profits of the preceding half year to its surplus fund until the Surplus funds,
same shall amount to twenty per centum of its capital stock.
S e c . 34. And he it further enacted, That every association shall make Associations to
to the comptroller of the currency a report, according to the form which [roUer cm
arteri"
may be prescribed by him, verified by the oath or affirmation of the presv o l . x iii.

P

ub.

— 10

110

TH IRTY-EIG H TH CONGRESS.

Contents of re­■ident or cashier of such association ; which
port.
and under appropriate heads, the resources

Se ss.

I.

Ch. 106.

1864

report shall exhibit in detail,
and liabilities of the associa­
tion before the commencement of business on the morning of the first
Monday of the months of January, April, July, and October of each year,
and shall transmit the same to the comptroller within five days thereafter.
And any bank failing to make aiid transmit such report shall be subject
Penalty for
to a penalty of one hundred dollars for each day after five days that such
failing to report report is delayed beyond that time. And the comptroller shall publish
abstracts of said reports in a newspaper to be designated by him for that
Comptroller to purpose in the city of Washington, and the separate report of each asso­
publish abstracts. ciation shall be published in a newspaper in the place where such associ­
ation is established, or if there be no newspaper at such place, then in a
newspaper published at the nearest place thereto, at the expense of the
association making such report. In addition to the quarterly reports
required by this section, every association shall, on the first Tuesday of
each month, make to the comptroller of the currency a statement, under
Monthly state the oath of the president or cashier, showing the condition of the associa­
ments.
tion making such statement, on the morning of the day next preceding
the date of such statement, in respect to the following items and particu­
lars, to wit: average amount of loans and discounts, specie, and other
lawful money belonging to the association, deposits, and circulation. And
associations in other places than those cities named in tljje thirty-first
section of this act shall also return the amount due them available for
the redemption of their circulation.
S e c . 3 5 . A n d be it further enacted, That no association shall make
Associations
not to make
any loan or discount on the security of the shares of its own capital stock,
loans, &c., on the
security of their nor be the purchaser or holder of any such shares, unless such security
own stock, &c.
or purchase shall be necessary to prevent loss upon a debt previously
contracted in good faith ; and stock so purchased or acquired shall, within
six months from the time of its purchase, be sold or disposed of at public
or private sale, in default of which a receiver may be appointed to close
up the business of the association, according to the provisions of this act.
S e c . 3 6 . And be it further enacted, That no association shall at any
Indebtedness
not to exceed
time be indebted, or in any way liable, to an amount exceeding the
capital stock, ex­ amount of its capital stock at such time actually paid in and remaining
cept, &c.
undiminished by losses or otherwise, except on the following accounts,
that is to say : —
First. On account of its notes of circulation.
Second. On account of moneys deposited with, or collected by, such
association.
Third. On account of bills of exchange or drafts drawn against money
actually on deposit to the credit of such association, or due thereto.
Fourth. On account of liabilities to its stockholders for dividends and
reserved profits.
S e c . 3 7 . And be it further enacted, That no association shall, either
Associations
not to hypothe­ directly or indirectly, pledge or hypothecate any of its notes of circulation,
cate circulating
for the purpose of procuring money to be paid in on its capital stock, or
notes, for, &c.;
to be used in its banking operations, or otherwise; nor shall any associa­
tion use its circulating notes, or any part thereof, in any manner or form,
to create or increase its capital stock.
not to with­
S e c . 3 8 . And be it further enacted, That no association, or any mem­
draw any portion
of their capital. ber thereof, shall, during the time it shall continue its banking operations,
withdraw, or permit to be withdrawn, either in form of dividends or
Losses.
otherwise, any portion of its capital. And if losses shall at any time
have been sustained by any such association equal to or exceeding its
undivided profits then on hand, no dividend shall be made; and no divi­
dend shall ever be made by any association, while it shall continue its
banking operations, to an amount greater than its neti profits then on hand,
Bad debts.
deducting therefrom its losses and bad debts. And all debts due to any

TH IR TY -EIG H TH CONGRESS.

S e ss . I.

Ch. 106.

1864.

I ll

association, on which interest is past due and unpaid for a period of six dc'^,’fd
(t
months, unless the same shall be wejl secured, and shall be in process of
a
collection, shall be considered bad debts within the meaning of this act:
Provided, That nothing in this section shall prevent the reduction of the
capital stock of the association under the thirteenth section of this act.
S e c . 39. And he it further enacted, That no association shall at any Associations
time pay out on loans or discounts, or in purchasing drafts or bills o f not t?payout
certain iiotes>
exchange, or in payment of deposits, or in any other mode pay or put in
circulation the notes of any bank or banking association which shall not,
at any such time, be receivable, at par, on deposit and in payment of
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 banking association which at the time of such paying out or
putting in circulation is not redeeming its circulating notes in lawful
money of the United States.
S e c . 40. And be it further enacted, That the president and cashier of List of names
every such association shall cause to be kept at all times a full and correct ghareholdersTo0^
list of the names and residences of all the shareholders in the association, be kept;
and the number of shares held by each, in the office where its business is
transacted; and such list shall be subject to the inspection of all the share- . to be subject to
holders and creditors of the association, and the officers authorized to 1 S
DPectlon’
assess taxes under state authority, during business hours of each day in
which business may be legally transacted ; and a copy of such list, on
the first Monday of July in each year, verified by the oath of such pres- t0 be sent to
ident or cashier, shall be transmitted to the comptroller of the currency. colrlpt'roller'
S e c . 41. And be it further enacted, That the plates and special dies Comptroller to
to be procured by the comptroller of the currency for the printing of such keep control of
circulating notes shall remain under his control and direction, and the jj!^es and sPeciaI
expenses necessarily incurred in executing the provisions of this act
respecting the procuring of such notes, and all other expenses of the Expenses to be
bureau, shall be paid out of the proceeds of the taxes or duties now or ^°™e by associa"
hereafter to be assessed on the circulation, and collected from associations
organized under this act. And in lieu of all existing taxes, every asso­
ciation shall pay to the treasurer of the United States, in the months of
January and July, a duty of one half of one per centum each half year Duty upon cirfrom and after the first day of January, eighteen hundred and sixty-four, culation, deupon the average amount of its notes in circulation, and a duty of one tafstock'fo'bc1
"
quarter of one per centum each half year upon the average amount of its paid semi-andeposits, and a duty of one quarter of one per centum each half year, as nuallyaforesaid, on the average amount of its capital stock beyond the amount
invested in United States bonds; and in case of default in the payment
thereof by any association, the duties aforesaid may be collected in the
manner provided for the collection of United States duties of other cor- How collected,
porations, or the treasurer may reserve the amount of said duties out of I10t paid in
the interest, as it may become due, on the bonds deposited with him by tlmesuch defaulting association. And it shall be the duty of each association,
within ten days from the first days of January and July of each year, to
make a return, under the oath of its president or cashier, to the treasurer Return of eirof the United States, in such form as he may prescribe, of the average ^'n!ad'e * c'’ t0
’
amount of its notes in circulation, and of the average amount of its de­
posits, and of the average amount of its capital stock, beyond the amount
invested in United States bonds, for the six months next preceding said
first days of January and July as aforesaid, and in default of such return, Penalty for deand for each default thereof, each defaulting association shall forfeit and pay fault,
to the United States the sum of two hundred dollars, to be collected 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 which
penalties are to be collected of other corporations under the laws of the
United States; and in case of such default the amount of the duties to be

112

TH IR TY -EIG H TH CONGRESS.

S e ss.

I.

Ch. 106.

1864.

paid by such association shall be assessed upon the amount of notes de­
livered to such association by the comptroller of the currency, and upon
the highest amount of its deposits and capital stock, to be ascertained in
such other manner as the treasurer may deem best: Provided, That noth­
Shares not
hereby exempted ing in this act shall be construed to prevent all the shares in any of the said
from taxation bjr associations, held by any person or body corporate, from being included
state authority. in the valuation of the personal property of such person or corporation in
the assessment of taxes imposed by or under state authority at the place
where such bank is located, and not elsewhere, but not at a greater rate
than is assessed upon other moneyed capital in the hands of individual
Limit of state citizens of such state: Provided, further, That the tax so imposed under
tax.
the laws of any state upon the shares of any of the associations authorized
by this act shall not exceed the rate imposed upon the shares in any of
the banks organized under authority of the state where such association
Real estate to is located: Provided, also, That nothing in this act shall exempt the real
be taxed.
estate of associations from either state, county, or municipal taxes to the
same extent, according to its value, as other real estate is taxed.
S e c . 42. And be it further enacted, That any association may go
How associa­
into liquidation and be closed by the vote of its shareholders owning two
tions may be
closed.
thirds of its stock. And whenever such vote shall be taken it shall be
the duty of the board of directors to cause notice of this fact to be certi­
fied, under the seal of the association, by its president or cashier, to the
Proceedings.
comptroller of the currency, and publication thereof to be made for a
period of two months in a newspaper published in the city of New York,
and also in a newspaper, published in a city or town in which the associa­
tion is located, and if no newspaper be there published, then in the news­
paper published nearest thereto, that said association is closing up its
affairs, and notifying the holders of its notes and other creditors to present
the notes and other claims against the association for payment. And at
any time after the expiration of one year from the time of the publication
of such notice as aforesaid, the said association maypay over to the
treasurer of the United States the amount of its-t>utstanding notes in the
lawful money of the United States, and take up the bonds which said
association has on deposit with the treasurer for the security of its circu­
lating notes; which bonds shall be assigned to the bank in the manner
specified in the nineteenth section of this act, and from that time the out­
standing notes of said association shall be redeemed at the treasury of
the United States, and the said association and the shareholders thereof
shall be discharged from all liabilities therefor.
Treasurer to
S e c . 4 3 . And be it further enacted, That the treasurer, on receiving
execute duplicate
from an association lawful money for the payment and redemption of its
receipts.
outstanding notes, as provided for in the preceding section of this act,
shall execute duplicate receipts therefor, one to the association and the
other to the comptroller of the currency, stating the amount received by
him, and the purpose for which it has been received, which amount shall
be paid into the treasury of the United States, and placed to the credit
of such association upon redemption account, And it shall be the duty
Redeemed
notes to be mu­ of th e, treasurer, whenever he shall redeem ah j of the notes of said asso­
tilated, &c.
ciation, to cause the same to be mutilated, and charged to the redemption
account of said association; and all notes so redeemed by the treasurer
shall, every three months, be certified to and burned in the manner pre­
scribed in the twenty-fourth section of this act.
State banks
S e c . 44. And be it further enacted, That any bank incorporated by
may become na­
special law, or any banking institution organized under a general law of
tional associa­
tions.
any state, may, by authority of this act, become a national association
under its provisions, by the name prescribed in its organization certifi­
cate ; and in such case the articles of association and the organization
certificate required by this act may be executed by a majority of the
directors of the bank or banking institution; and said certificate shall de-

THIRTY-EIGHTH CONGRESS.

S ess.

I.

Ch. 106.

1864.

113

dare that the owners of two thirds of the capital stock have authorized
the directors to make such certificate and to change and convert the said
bank or banking institution into a national association under this act.
And a majority of the directors, after executing said articles of associa- M of proode
tion and organization certificate, shall have power to execute all other ce ure'
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
said conversion, and the directors aforesaid may be the directors of the
association until others are elected or appointed in accordance with the
provisions of this act; 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 provisions of this act. When the comptroller shall give to such
association a certificate, under his hajid and official seal, that the pro­
visions of this act have been complied with, and that it is authorized to
commence the business of banking under it, 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 in this act for
other associations organized under it, and shall be held and regarded as
an association under this act: Provided, however, That no such associa­
tion shall have a less capital than the amount prescribed for banking
associations under this act.
Sec. 45. And be it further enacted, That all associations under this Associations,
act, when designated for that purpose by the Secretary of the Treasury, "'h™so desigshall be depositaries of public money, except receipts from customs, under depositaries of
such regulations as may be prescribed by the Secretary; and they may public moneys,
also be employed as financial agents of the government; and they shall oxcePt’&c->
perform all such reasonable duties, as depositaries of public moneys and . may be finanfinaneial agents of the government, as may be required of them. And cial aSentsthe Secretary of the Treasury shall require of the associations thus Designated de­
designated satisfactory security, by the deposit of United States bonds positaries to pay
and otherwise, for the safe-keeping and prompt payment of the public, promptly;
money deposited with them, and for the faithful performance of their
duties as financial agents of the government: Provided, That every
association which shall be selected and designated as receiver or deposi- to receive natary of the public money shall take and receive at par all of the national
currency
currency bills, by whatevfer association issued, which have been paid in 1 3 a par"
to the government for internal revenue, or for loans or stocks.
S e c . 46. And be it further enacted, That if any such association shall ,I f associations
at any time fail to redeem, in the lawful money of the United States, any tbeir^irclilation
of its. circulating notes, when payment thereof shall be lawfully demanded, the notes may be
during the usual hours of business, at the office of such association, or at l£°testedi unless,
its place of redemption aforesaid, the holder may cause the same to be
protested, in one package, by a notary-public, unless the president or
cashier of the association whose notes are presented for payment, or the
president or cashier of the association at the place at which they are
redeemable, shall offer to waive demand and notice of the protest, and Notice of proshall, in pursuance of such offer, make, sign, and deliver to the’ party test, &c., to be
making such demand an admission in writing, stating the time of the com
ptroller.0
demand, the amount demanded, and the fact of the non-payment thereof;
and such notary-public, on making such protest, or upon receiving such
admission, shall forthwith forward such admission or notice of protest to
the comptroller of the currency, retaining a copy thereof. And after such Association not
default, on examination of the facts by the comptroller, and notice by him f°rt£erUsinesst
to the association, it shall not be lawful for the association suffering the &
c. ’
same to pay out any of its notes, discount any notes or bills, or otherwise
prosecute the business of banking, except to receive and safely keep
money belonging to it, and to deliver special deposites: Provided, That if
10*

114

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Ch. 106.

1864.

satisfactory proof be produced to such notary-public that the payment of
any such notes is restrained by order of any court of competent jurisdic­
tion, such notary-public shall not protest the same; and when the holder
of such notes shall cause more than one note or package to be protested
Fees of notary. on the same day, he shall not receive pay for more than one protest.
S e c . 47. And be it further enacted, That on receiving notice that any
Upon notice
of failure to re­ such association has failed to redeem any of its circulating notes, as speci­
deem circulation, fied in the, next preceding section, the comptroller of the currency, with
comptroller to
the concurrence of the Secretary-of the Treasury, may appoint a special
send special
agent to ascertain agent (of whose appointment immediate notice shall be given to such
facts,
association) who shall immediately proceed to ascertain whether such
association has refused to pay its circulating notes in the lawful money of
the United States, when demanded as aforesaid, and report to the comp­
troller 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, within
thirty days after he shall have received notice of such failure, declare the
when to de­
clare securities
United States bonds and securities pledged by such association forfeited
forfeited,
to the United States, and the same shall thereupon be forfeited accord­
to notify hold­ ingly. And thereupon the comptroller shall immediately give notice in
ers of notes to
such manner as the Secretary of the Treasury shall, by general rules or
present them for
otherwise, direct, to the holders of the circulating notes of such association
payment,
to present them for payment at the treasury of the United States, and
the same shall be paid as presented in lawful money of the United
States; whereupon said comptroller may, in his discretion, cancel an
to pay notes
and cancel bonds. amount of bonds pledged by such association equal at current market
rates, not exceeding par, to the notes paid. And it shall be lawful for the
Secretary of the Treasury, from time to time, to make such regulations
respecting the disposition to be made of such circulating notes after pre­
sentation thereof for payment as aforesaid, and respecting the perpetua­
tion of the evidence of the payment thereof as may seem to him proper;
but all such notes, on being paid, shall be cancelled. And for any defi­
ciency in the proceeds of the bonds pledged by such association, when
disposed of as hereinafter specified, to reimburse to the United States the
The United
amount so expended in paying the circulating notes of such association,
States to have
priority of lien
the United States shall have a first and paramount lien upon all the
upon assets for
any deficiency in assets of such association ; and such deficiency shall be made good out of
such assets in preference to any and all other claims whatsoever, except
redemption of
circulation.
the necessary costs and expenses of administering the same.
Bonds pledged
S e c . 48. And be it further enacted, That whenever the comptroller
as security may shall become satisfied, as in the last preceding section specified, that any
be sold at auc­
association has refused to pay its circulating notes as therein mentioned,
tion;
he may, instead of cancelling the United States bonds pledged by such
association, as provided in the next preceding section, cause so much of
them as may be necessary to redeem the outstanding circulating notes of
such association to be sold at public auction in the city of New York,
after giving thirty days’ notice of such sale to such association.
SejC. 49. And be it further enacted, That the comptroller of the cur­
or at private
sale.
rency may, if he shall'be of opinion that the interests of the United
States will be best promoted thereby, sell at private sale any of the bonds
pledged by such association, and receive therefor either money or the
Proviso.
circulating notes of such failing association: Provided, That no such
bonds shall be sold by private sale for less than par, nor less than the
market value thereof at the time of sale: And provided, further, That no
sales of 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.
S e c . 50. And be it further enacted, That on becoming satisfied, as
specified in this act, that any association has refused to pay its circulating
Notes not to be
protested in cer­
tain cases.

TH IR TY -EIG H TH CONGRESS.

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Ch. 106.

1864.

115

notes as therein mentioned, and is in default, the comptroller of the cur- Comptroller
rency may forthwith appoint a receiver, and require of him such bond receiver'to'dose
and security as he shall deem proper, who, under the direction of the affairs of defaultcomptroller, shall take possession of the books, records, and assets of lng association,
every description of such association, collect all debts, dues, and claims Bond and
belonging to such association, and, upon the order of a court of record of ^“ties of receiver>
competent jurisdiction, may sell or compound all bad or doubtful debts, c‘
and, on a like order, sell all the real and personal property of such asso­
ciation, on such terms as the court shall direct; and may, if necessary to
pay the debts of such association, enforce the individual liability of the
stockholders provided for by the twelfth section of this act; and such
receiver shall pay over all money so made to the treasurer of the United
States, subject to the order of the comptroller of the currency, and also
make report to the comptroller of the currency of all his acts and pro­
ceedings. 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 associa­
tion to present the same, and to make legal proof thereof. And from
time to time the comptroller, after full provision shall have been first
made for refunding to the United States any such deficiency in redeem­
ing the notes of such association as is mentioned in this act, shall make a
ratable dividend of the money so paid over to him by such receiver on all
such claims as may have been proved to his satisfaction or adjudicated in
a court of competent jurisdiction; and from time to time, as the proceeds
of the assets of such association shall be paid over to him, he shall make
further dividends, as aforesaid, on all claims previously proved or adjudi­
cated ; and the remainder of such proceeds, if any, shall be paid over to
the shareholders of such association, or their legal representatives, in
proportion to the stock by them respectively held: Provided, however,
assoc;at;on
That if such association against which proceedings have been so insti- denies that it has
tuted, on account of any alleged refusal to redeem its circulating notes as
r;f
aforesaid, shall deny having failed to do so, such association may, at any apply to’the™^
time within ten days after such association shall have been notified of courts for aa inthe appointment of an agent, as provided in this act, apply to the near- Ju!lctlonest circuit, or district, or territorial court of the United States, to enjoin
further proceedings in the premises; and such court, after citing the
comptroller of the currency to show cause why further proceedings should Proceedings,
not be enjoined, and after the decision of the court or finding of a jury that
such association has not refused to redeem its circulating notes, when
legally presented, in the lawful money of the United States, shall make
an order enjoining the comptroller, and any receiver acting under his
direction, from all further proceedings on account of such alleged re­
fusal.
S e c . 51. And be it further enacted, That all fees for protesting the Fees for pronotes issued by any such banking association shall be paid by the person test and other
procuring the protest to be made, and such banking association shall be ^ belaid. °W
liable therefor; but no part of the bonds pledged by such banking asso­
ciation, as aforesaid, shall be applied to the payment of such fees. And
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 of such association before
distribution of the proceeds thereof.
S e c . 52. And be it further enacted, That all transfer of the notes, Transfers, asbonds, bills of exchange, and other evidences of debt owing to any asso- ?>gnments, &c.,
ciation, or of deposits to its credit; all assignments of mortgages, sureties yon of insolon real estate, or of judgments or decrees in its favor; all deposits of vency, &c., to be
money, bullion, or other valuable thing for its use, or for the use of any T
oi<i'
of its shareholders or creditors; and all payments of money to either,
made after the commission of an act of insolvency, or in contemplation

116

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Ch. 106.

1864.

thereof, with a view to prevent the application of its assets in the manner
prescribed by this act, or with a view to the preference of one creditor to
another, except in payment of its circulating notes, shall be utterly null
and void.
S e c . 53. And be it further enacted, That if the directors of any associa­
Penalty upon
directors for vio­ tion shall knowingly violate, or knowingly permit any of the officers,
lations of this
agents, or servants of the association to violate any of the provisions of
act.
this act, all the rights, privileges, and franchises of the association derived
Violation, how from this act shall be thereby forfeited. Such violation shall, however,
to be determined. be determined and adjudged by a proper circuit, district, or territorial
court of the United States, in a suit brought for that purpose by the
comptroller of the currency, in his own name, before the association shall
be declared dissolved. And in cases of such violation, every director who
participated in or assented to the same shall be held liable in his personal
Personal lia­
and individual capacity for all damages which the association, its share­
bility.
holders, or any other person, shall have sustained in consequence of such
violation.
Comptroller
S e c . 54. And be it further enacted, That the comptroller of the cur­
may appoint per­ rency, with the approbation of the Secretary of the Treasury, as often as
son to examine
person or
the affairs of any shall be deemed necessary or propei', shall appoint a suitable 1
association.
persons to make an examination of the affairs of every banking associa­
tion, which person shall not be a director or other officer in any association
whbse affairs he shall be appointed to examine, and who shall have power
to make a thorough examination into all the affairs of the association, and,
Duty of such in doing so, to examine any of the officers and agents thereof on oath; and
examiner.
shall make a full and detailed report of the condition of the association to
the comptroller. And 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 of law and chancery. And 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 examination, and
Pay.
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.
Penalty upon
S e c . 55. And be it further enacted, That every president, director,
officers, &c., of
cashier, teller, clerk, or agent of any association, who shall embezzle,
association for
abstract, or wilfully misapply any of the moneys, funds, or credits of the
embezzlement,
&c., of funds.
association, or shall, without authority from the directors, issue or put in
circulation any of the notes of the association, or shall, without such
authority, issue or put forth any certificate of deposit, draw any order or
bill of exchange, make any acceptance, assign any note, bond, draft, bill
of exchange, mortgage, judgment, or decree, or shall make any false entry
in any book, report, or statement of 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 of
the association, or any agent appointed to examine the affairs of any such
association, shall be deemed guilty of a misdemeanor, and upon conviction
thereof shall be punished by imprisonment not less than five nor more
than ten years.
District attor­
S e c . 56. And be it further enacted, That all suits and proceedings
neys to conduct arising out of the provisions of this act, in which the United States or its
certain suits.
officers or agents shall be parties, shall be conducted by the district attor­
neys of the several districts, under the direction and supervision of the
solicitor of the treasury.
Sec. 57. And be it further enacted, That suits, actions, and proceed­
In what courts,i
suits, &c., under ings, against any association under this act, may be had in any circuit,
this act may be
district, or territorial court of the United States held within the district
prosecuted.
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,

THIRTY-EIG H TH CONGRESS.

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C h. 106.

1864.

117

having jurisdiction in similar eases : Provided, however, That all proceed- . Proceedingsfor
ings to enjoin the comptroller under this act shall be had in a circuit, ^hat'Smrts. ^
district, or territorial court of the United States, held in the district in
which the association is located.
Sec. 58. And be it further enacted, That every person who shall muti- Penalty for
late, cut, deface, disfigure, or perforate with holes, or shall unite or ^ ^ k e 'th e m 'u n ­
cement together, or do any other thing to any bank bill, draft, note, or flt for reissue.
other evidence of debt, issued by any such association, or shall 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 ihe association who shall be
injured thereby, to be recovered by action in any court having juris­
diction.
S e c . 59. And be it further enacted, That if any person shall falsely Penalty for
make, forge, or counterfeit, or cause or procure to be made, forged, or counterfeiting
counterfeited, or willingly aid or assist in falsely making, forging, or coun- notes’
terfeiting, any note in imitation of, or purporting to be in imitation of, the
circulating notes issued under the provisions of this act, or shall pass, for knowingly
utter, or publish, or attempt to pass, utter, or publish, any false, forged, uttering, &c.
or counterfeited note, purporting to be issued by any association doing a
banking business under the provisions of this act, knowing the same to be
falsely made, forged, or counterfeited, or shall falsely alter, or cause or
procure to be falsely altered, or willingly aid or assist in falsely altering,
any such circulating notes, issued as aforesaid, or shall pass, utter, or
publish, or attempt to pass, utter, or publish, as true, any falsely altered
or spurious circulating note issued, or purporting to have been issued, as
aforesaid, knowing the same to be falsely altered or spurious, every such
person shall be deemed and adjudged guilty of felony, and being thereof
convicted by due course of law shall be sentenced to be imprisoned and
kept at hard labor for a period of not less than five years, nor more than
fifteen years, and fined in a sum not exceeding one thousand dollars.
S e c . 60. And be it further enacted, That if any person shall make or for engraving,
engrave, or cause or procure to be made or engraved, or shall have in his &e.,.plates for
custody or possession any plate, die, or block after the similitude of any orSmS1 3i c1
plate, die, or block from which any circulating notes issued as aforesaid
shall have been prepared or printed, with intent to use such plate, die, or
block, or cause or suffer the same to be used, in forging or counterfeiting
any of the notes issued as aforesaid, or shall have in his custody or pos­
session any blank note or notes engraved and printed after the similitude for having
of any notes issued as aforesaid, with intent to use such blanks, or cause or
* c-’
suffer the same to be used, in forging or counterfeiting any of the notes m m nt>
issued as aforesaid, or shall have in his custody or possession any paper for having paadapted to the making of such notes, and similar to the paper upon which P &
er’ cany such notes shall have been issued, with intent to use such paper, or
cause or suffer the same to be used, in forging or counterfeiting any of
the notes issued as aforesaid, every such person, being thereof convicted
by due course of law, shall be sentenced to be imprisoned and kept to
hard labor for a term not less than five or more than fifteen years, and
fined in a sum not exceeding one thousand dollars.
Sec. 61. And be it further enacted, That it shall be the duty of the Comptroller to
comptroller of the currency to report annually to congress at the com- report annually
»
-i
.
to congress,
mencement of its session —
First. A summary of the state and condition of every association from Contents of rewhom reports have been received the preceding year, at the several port
dates to which such reports refer, with an abstract of the whole amount
of banking capital returned by them, of the whole amount of their debts
and liabilities, the amount of circulating notes outstanding, and the total
amount of means and resources, specifying the amount of lawful money
held by them at the times of their several returns, and such other in-

118

THIRTY-EIG H TH CONGRESS.

Contents of
comptroller’s re­
port to congress.

formation in relation to said associations as, in his judgment, may be
useful.
Second. A statement of the associations whose business has been
closed during the year, with the amount of their circulation redeemed
and the amount outstanding.
Third. Any amendment to the laws relative to banking by which the
system may be improved, and the security of the holders of its notes and
other creditors may be increased.
Fourth. The names and compensation of the clerks employed by him,
and the whole amount of the expenses of the banking department during
the year. And such report shall be made by or before the first day of
December in each year, and the usual number of copies for the use of
the senate and house, and one thousand copies for the use of the
department, shall be printed by the public printer and in readiness for
distribution at the first meeting of congress.
S e c . 62. And be it further enacted, That the act entitled “ An act to
provide a national currency, secured by a pledge of United States stocks,
and to provide for the circulation and redemption thereof,” approved
February twenty-fifth, eighteen hundred and sixty-three, is hereby re­
pealed : Provided, That such repeal shall not affect any appointments
made, acts done, or proceedings had, or the organization, acts, or pro­
ceedings of any association organized or in the process of 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 restric­
tions imposed by this act, and with the approval of the comptroller of
the currency, in lieu of the name specified in their respective organiza­
tion certificates, may take any other name preferred 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 of this act: Provided, also, That
the circulation issued or to be issued by such association shall be consid­
ered as a part of the circulation provided for in this act.
S e c . 63. And be it further enacted, That persons holding stock as
executors, administrators, guardians, and 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.
S e c . 64. And be it further enacted, That congress may at any time
amend, alter, or repeal this act.
A p p r o v e d , June 3, 1864.

Repeal of act
of 1863, ch. 58.
Vol. xii. p. 665.
Saving clauses.

Executors,
trustees, &c.,
holding stock,
not to be person­
ally liable.

Act may be
altered or re­
pealed.

June 3,1864.
1864, ch. 30.
Ante, p. 25.

S ess.

I.

Ch. 106,107.

1864.

C h a p . C V IL — A n A ct to amend an A ct relative to the Public Printing.

Be it enacted by the Senate and House o f Representatives of the United
States o f America in Congress assembled, That that part of the act entitled
Requisitions for
printing, &c., to “An act to supply deficiencies in the appropriations for the service of the
be made by as­ fiscal year ending the thirtieth of June, eighteen hundred and sixty-four,
sistants as well
and for other purposes,” approved March fourteenth, eighteen hundred
as by heads of
and sixty-four, as provides “ that hereafter no printing or 'binding shall be
departments.
done or blank books be procured for any of the executive departments
of the government without a written requisition on the superintendent
of public printing from the head of such department,” be, and the same
is hereby, amended by inserting after the word “department,” where it is
last above written, the following words, viz : “ or his assistant or assistants,”
so that it will read — “ the head of such department or his assistant or as­
sistants.”
A p p b o v e d , June 3,1864.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102