Full text of National Bank Act of 1863

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T H IR TY-S E YE N TH CONGRESS.

S ess.

III.

Ch. 56, 58.

1863.

665

t ie point where the southwest corner o f the Territory o f Colorado joins
the northern boundary o f the Territory of N ew M exico to the southern Boundaries,
boundary line o f said Territory o f N ew Mexico be, and the same is hereby,
erected into a temporary government by the name o f the Territory o f
Arizona : Provided, That nothing contained in the provisions o f this act Maybe divided
shall be construed to prohibit the Congress o f the United States from hereafter,
dividing said Territory or changing its boundaries in such manner and at
such time as it may deem proper: Provided, fu rth er, That said govern­
ment shall be maintained and continued until such time as the people re- ernm ent^re^'
siding in said Territory shall, with the consent o f Congress, form a State main until, &c.
government, republican in form, as prescribed in the Constitution o f the
United States, and apply for and obtain admission into the Union as a
State, on an equal footing with the original States.
S e c . 2. A n d be it further enacted, That the government hereby auGovernment,
thorized shall consist o f an executive, legislative, and judicial power, executive, legisT h e executive power shall be vested in a governor. The legislative atIve’ Judlcl •
power shall consist o f a council o f nine members, and a house o f repre­
sentatives o f eighteen. The judicial power shall be vested in a supreme
court, to consist o f three judges, and such inferior courts as the legislative
council may by law prescribe; there shall also be a secretary, a marshal, Officers, how
a district attorney, and a surveyor-general for said Territory, who, aPPointed. &ctogether with the governor and judges o f the supreme court, shall be
appointed by the President, by and with the advice and consent o f the
Senate, and the term o f office for each, the manner o f their appointment,
and the powers, duties, and the compensation o f the governor, legislative
assembly, judges o f the supreme court, secretary, marshal, district attor­
ney, and surveyor-general aforesaid, with their clerks, draughtsman, depu­
ties, and sergeant-at-arms, shall be such as are conferred upon the same
officers by the act organizing the Territorial government o f N ew Mexico,
which sub( rdinate officers shall b e appointed in the same manner, and
not exceed in number those created by said act; and acts amendatory Acts governing
thereto, together with all legislative enactments o f the Territory o f N ew toidc^thia tc*Mexico not inconsistent with the provisions o f this act, are hereby ex- ritoiy.
tended to and continued in force in the said Territory o f Arizona, until
repealed or amended by future legislation : Provided, That no salary Provisoshall be due or paid the officers created by this act until they have en­
tered upon the duties o f their respective offices within the said Territory.
Sec. 3. A n d be it further enacted, That there shall neither be slavery Slavery not to
nor involuntary servitude in the said Territory, otherwise than in the exlst therempunishment o f crimes, whereof the parties shall have been duly con­
victed ; and all acts and parts o f acts, either o f Congress or o f the T e r ­
ritory o f N ew Mexico, establishing, regulating, or in any way recognizing
the relation o f master and slave in said Territory, are hereby repealed.
A p p r o v e d , February 24, 1863.

Chap. L V I I I . — A n A ct to provide a national Currency, secured by a Pledge o f United Feb. 25 1863.
---------- '-------States Stocks, and to provide f o r the Circulation and Redemption thereof.

Be it enacted by the Senate and House o f Representatives o f the United
States o f America in Congress assembled. That there shall be established Bureau o f curin the Treasury Department a separate bureau, which shall be charged rency.
with the execution o f this and all other laws that may be passed by Con­
gress 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 the comptroller o f the currency, and shall be under the Comptroller of
general direction o f the Secretary o f the Treasury. H e shall be ap- currency; ap­
pointed by the President, on the nomination o f the Secretary o f the P°]intment: term;
Treasury, by and with the advice and consent o f the Senate, and shall saary‘
hold his office for the term o f five years unless sooner removed by the
v o l . x ii. P u b . — 84

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President, by and with the advice and consent o f the Senate; he shall
receive an annual salary o f five thousand dollars; he shall have a comDeputycomp- petent deputy, appointed by the Secretary, whose salary shall be two
trailer; salary; thousand five hundred dollars, and who shall possess the power and perduties.
form the duties attached by law to the office o f comptroller during a
vacancy in such office, and during his absence or inability; he shall em­
ploy, from time to time, the necessary clerks to discharge such duties as
Clerks.
he shall direct, which clerks shall be appointed and classified by the
Secretary o f the Treasury in the manner now provided by law. Within
fifteen days from the time o f notice o f his appointment, the comptroller
Oath and bond shall take and subscribe the oath o f office prescribed by the Constitution
of Comptroller
and laws o f the United States ; and he shall give to the United States a
and deputy.
bond in the penalty o f one hundred thousand dollars, with not less than
two responsible freeholders as sureties, to be approved by the Secretary
o f the Treasury, conditioned for the faithful discharge o f the duties o f his
office. The deputy comptroller so appointed shall also take the oath o f
office prescribed by the Constitution and laws o f the United States, and
shall give a like bond in the penalty o f fifty thousand dollars.
The
comptroller and deputy comptroller shall not, either directly or indi­
rectly, be interested in any association issuing national currency under
the provisions o f this act.
Seal of office.
S e c . 2. A n d be it. further enacted, That the comptroller o f the cur­
rency, with the approval o f the Secretary o f the Treasury, shall devise a
seal, with suitable inscriptions, for' his office, a description o f which, with
a certificate o f approval by the Secretary o f the Treasury, shall be filed
in the office o f the Secretary o f State with an impression thereof, which
Cert'fi t s
s' la^ thereupon become the seal o f office o f the comptroller o f the cur& c.6under seal to renc7> an^ the same may be renewed when necessary.
E very certificate,
be received in
assignment, and conveyance executed by the comptroller, in pursuance
evidence.
0f 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 o f papers in the office o f 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. A n impression o f such seal directly
be on paper.
on the paper shall be as valid as i f made on wax or wafer.
Rooms in TreasS e c . 3. A n d be it further enacted, That there shall be assigned to the
bureau!' lmS f° r cornPtroller of the currency by the Secretary o f the Treasury suitable
rooms in the treasury building for conducting the business o f the curFire-proof vaults, rency bureau, in which shall be safe and secure fire-proof vaults, in
which it shall be the duty o f the comptroller to deposit and safely keep
all the plates and other valuable things belonging to his department; and
the comptroller shall from time to time furnish the necessary furniture,
stationery, fuel, lights, and other proper conveniences for the transaction
o f the said business.
“ United States
S e c . 4. A n d be it further enacted, That the term “ United States
wlmt* t0 mean k°nds,” as used in this act, shall be construed to mean all coupon and
registered bonds now issued or that may hereafter be issued on the faith
o f the United States by the Secretary o f the Treasury in pursuance o f
law.
Banking assoS e c . 5. A n d be it further enacted, That associations for carrying on
ciations, how
the business o f banking may be formed by any number o f persons, not
formedless in any ease than five.
Certificate to
S e c . 6 . A n d be it further enacted, That persons uniting to form such
specify what.
an association shall, under their hands and seals, make a certificate which
shall specify—
First. The name assumed by such association.
Second. The place where its operations o f discount and deposite are
to be carried o n ; designating the State, Territory, or district, and also the
particular city, town, or village.

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1863.

Third. T h e amount o f its capital stock, and the number o f shares into
which the same shall be divided; which capital stock shall not be less
than fifty thousand dollars; and in cities whose population is over ten
thousand persons, the capital stock shall not be less than one hundred
thousand dollars.
Fourth. T h e names and places o f residence o f the shareholders, and
the number o f shares held by each o f them.
Fifth. T h e time when such association shall commence.
Sixth. A declaration that said certificate is made to enable such per­
sons to avail themselves o f the advantages o f this act.
The said certificate shall be acknowledged before a judge o f some CertiQcate to be
court o f record or a notary public, and the acknowledgement thereof
certified under the seal o f such court or notary, and shall be transmitted, served in O ffic e 'S
together with a copy o f the articles o f association which shall have been comptroller,
adopted, to the comptroller o f the currency, who shall record and care­
fully preserve the same in his office. Copies o f such certificate, duly Authenticated
certified by the comptroller, and authenticated by his seal of office, shall c°I>ie3'
be legal and sufficient evidence in all courts and places within the United
States, or the jurisdiction o f the Government thereof, o f the existence
o f such association, and o f every other matter or thing which could be
proved by the production o f the original certificate.
S e c . 7. A n d be it furth er enacted, T h at at least thirty per centum o f
Capital stock,
the capital stock o f such association shall be paid in at the tim e o f the
commencement o f its banking business, and the rem ainder o f the capital
stock o f such association shall be paid in instalments o f at least ten per
centum each on the whole amount to which the association shall be lim ­
ited, as frequently as one instalment at the end o f each succeeding tw o
months from the time o f the commencement o f its banking operations,
until the whole o f the capital stock shall be paid in.
S e c . 8. And be it further enacted, That if any shareholder, or his assignee, shall fail to pay any instalment on the stock when the same is
required by the foregoing section to be paid, the directors o f such association may sell the stock held by such delinquent shareholder, at public
auction, having given three weeks’ previous notice thereof in a newspaper
published and o f general circulation in the city where the association is
located, if the same be located in a city, and if not so located, then in a
newspaper printed, or o f general circulation, in the county where the
same is located, to any person who will pay the highest price therefor,
and not less than the amount then due thereon, with the expenses o f
advertisement and sale ; and the excess, if any, shall be paid to the de­
linquent shareholder. I f no bidder can be found who will pay for such
stock the amount due thereon to the association, and the costs o f adver­
tisement and sale, the amount previously paid shall be forfeited to the
association, and such stock may subsequently be sold as the directors may
order.
S e c . 9. A n d be it further enacted, That whenever a certificate shall
have been transmitted to the comptroller o f the currency, as provided in
this act, and the association transmitting the same shall notify the comptroller that at least thirty per centum o f its capital stock has been paid as
aforesaid, and that such association has complied with all the provisions
o f this act required to be complied with before such association shall be
authorized to commence the business o f banking, and that such association
is desirous o f commencing such business, the comptroller shall immedi­
ately proceed, in such manner as he shall by general rules prescribe, to
examine the condition o f such association; to ascertain especially the
amount of money paid in on account o f its capital stock ; 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 o f which each is the bona fide owner, and
generally whether such association has complied with all the require-

ow **al m-

Stock of delin-

^beso'ld
er maj e s°
Mode of sale,

Comptroller to
ff5requisitions'of
this act are comPlie(1 wlth-

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III.

Ch. 58.

}863.

ments 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 o f 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 lawfully entitled to commence the business of
banking under this act.
If lawfully enS e c . 10. A n d be it further enacted, That if, upon a careful examination
titled to begin
o f the facts so reported, and o f any other facts which may come to the
tTOHe^togive cer- knowledge o f the comptroller, whether by means o f a special commission
tificate to that
appointed by him for the purpose o f inquiring into the condition o f such
effectassociation, or otherwise, it shall appear that such association is lawfully
entitled to commence the business o f banking, the comptroller shall give
to such association a certificate under his hand and official seal, showing
that such association has complied with all the provisions of this act re­
quired to be complied with before being entitled to commence the business
o f banking under it, and that such association is authorized to commence
said business accordingly; and it shall be the duty o f such association to
Certificate to be cause said certificate to be published in some newspaper, published in the
published.
city or county where such association is located, for at least sixty days
next after the issuing thereof: Provided, That i f no newspaper is pub­
lished in such city or county, such certificate shall be published as the
comptroller o f the currency shall direct.
Association
S e c . 11. A n d be it fu rth er enacted, That every association formed
mon seaTname pursuant to the provisions o f this act may make and use a common seal,
and continue not and shall have succession by the name designated in its articles o f assoover twenty
ciation and for the period limited therein, not, however, exceeding twenty
■
'
years from the passage of this a c t; by such name may make contracts,
i owers or fisso« ,
i
j
1 ^
1 •
. <» •
»,
ciation.
sue anc* be sued, complain and defend m any court of law or equity as
fully as natural persons, and may make by-laws, approved by the comp­
troller o f the currency, not inconsistent with the laws o f the United States
or the provisions o f this act, for the election o f directors, the management
o f its property, the regulation o f its affairs, and for the transfer o f its
stock; and shall have power to carry on the business o f banking by
obtaining and issuing circulating notes in accordance with the provisions
o f this a ct; by discounting bills, notes, and other evidences o f debt; by
receiving deposits; by buying and selling gold and silver bullion, foreign
coins, and bills o f exchange; by loaning money on real and personal
security, in the manner specified in their articles o f association, for the
purposes authorized by this act, and by exercising such incidental powers
as shall be necessary to carry on such business; to choose one o f their
number as president o f such association, and to appoint a cashier and such
to^Ttrans’alted"3 ot*ler oncers and agents as their business may require; and to remove
0 0 ra
' such president, cashier, officers, and agents at pleasure, and appoint others
in their place; and their usual business shall be transacted in banking
offices located at the places specified respectively in its certificate o f asso­
ciation, and not elsewhere.
Shares to be
S e c . 12. A nd be it further enacted, That the shares o f associations
persona proper forme(j under this act shall be deemed personal property, and shall be
transferable on the books o f the association in such manner as may be
prescribed in the by-laws or articles o f association; and every person
How transfer- becoming a shareholder by such transfer shall, in proportion to his shares,
able.
succeed to all the rights and liabilities o f the prior holder o f such shares;
and no change shall be made in the articles o f association by which the
rights, remedies, or security o f the existing creditors o f the association
crsona^v'llable
impaired. F or all debts, contracted by such association for cirtoCtwice theU 6 culation, deposits, or otherwise, each shareholder shall be liable to the
amount of his
amount, at their par value, o f the shares held by him in addition to the
sh“res;
amount invested in such shares.
h ow ' may ^btf'i’u®ECA nd be it further enacted, That it shall be lawful for any
creased.

TH IRTY-SE V EN TH CONGRESS.

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1863.

association formed under this act, by its articles o f association, to provide
tor an increase o f its capital from time to time as may be deemed expe­
dient, subject to the limitations o f this a ct; but no such increase shall be
va id until the increased capital shall be paid in, and notice thereof shall
have been transmitted to the comptroller o f the currency, and his certifi­
cate obtained, specifying the amount o f such increase o f capital stock, and
that the same has been duly paid to such association.
h U { urther ™ acted’ That it shall be lawful for any Real estate of
cn association to purchase, hold, and convey real estate as follows :
6Ucl1 association,
irst. Such as shall be necessary for its immediate accommodation in
the transaction o f its business.
r , ? r n,d: Such :'l s lsha11 be m ortgaged to it in good faith by w a y o f secut 1!
T 5 ,ma
by such association, or for moneys due thereto.

Ihird. Such as shall be conveyed to it in satisfaction o f debts pre­
viously contracted m the course o f its dealings.
Fourth. Such as it shall purchase at salesounder judgments, decrees, or
moitgages held by such association.
Such association shall not purchase or hold real estate in any other
case or for any other purpose than as specified in this section.
ins com bed wfth th l
enaceted’ That evei7 association, after havt c i
i •
provisions o f this act preliminary to the commencem entof banking business under its provisions, shall transfer and deliver
to the treasurer o f the United States any United States bonds bearing
interest to an amount not less than one third o f 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
posed of, in pursuance o f the provisions of this act.

Associations,
t>efore commenci’l® bf * inff !?“ *treasurerUnited°
Stttt6s bonds>

trandW
r ^ ** -fyrtAer en.acf < T hat upon the making o f any such and shall be
transfer ana delivery, the association making the same shall be entitled entitledtoreceive
to receive from the comptroller o f die currency circulating notes o f diferen
enominations, in blank, registered and countersigned as herein-V!1'ue in circulaafter provided, equal in amount to ninety per centum o f the current mar- tints currency
ket value o f the United States bonds so transferred and delivered, but not
exceeding the par value thereof, if bearing interest at the rate o f six per
centum, or o f equivalent United States bonds bearing a less rate o f inter­
est; and at no time shall the total amount o f such notes, issued to anv
laphaTstoclf1011’ 6XCeed the amount at such time actually paid in o f its
S e c . 17. A n d be it fu rth er enacted, That the entire amount o f circu- w
of circu.
a mg notes to be issued under this act shall not exceed three hundred Iating notes
millions of dollars. One hundred and fifty millions o f which sum shall under this act’
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 How to be apassociations formed in the several States, in the District o f Columbia and Portioncdin the Territories, having due regard to the existing banking capital,
resources, and business, o f such States, District, and Territories.
hue. 18. A n d be it fu rth er enacted, That, in order to furnish suitable Circulating
notes tor circulation, the comptroller o f the currency is hereby author- notcs> tow to be
lzed and required, under the direction o f the Secretary o f the Treasury preparedto cause plates to be engraved in the best manner to guard against coun­
terfeiting and fraudulent alterations, and to have printed therefrom, and
numbered, such quantity o f circulating notes, in blank, o f the denomina­
tions of five dollars, ten dollars, twenty dollars, fifty dollars, one hundred
dollars, five hundred dollars, and one thousand dollars, as may be required
to supp y, under this act, the associations entitled to receive the same *
which notes shall express upon their face that they are secured by Unit- Notes to exed btates bonds, deposited with the treasurer o f the United States, and Press whatissued under the provisions o f this act, which statement shall be attested

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by the written or engraved signatures o f the treasurer and register, and
by the imprint o f the seal o f the treasury; 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 the said notes shall bear such devices and such other state­
ments, and shall be in such form, as the Secretary o f the Treasury shall,
by regulation, direct.
Plates and dies
S e c . 19. A n d be it further enacted, That the plates and special dies
troibofUcom trol- 40
procured by the comptroller o f the currency for the printing o f
ler.
such circulating notes shall remain under his control and direction, and
the expenses necessarily incurred in executing the provisions o f this act
respecting the procuring o f such notes, shall be audited and paid as con­
tingent expenses o f the Treasury Department; and for the purpose o f
Expense of pro- reimbursing the same, and all other expenses incurred under this act, and
curing notes.
in lieu o f all taxes upon the circulation authorized by this act, or upon
Each association the bonds deposited for the security o f the same, such association organto pay annually ized under this act shall semi-annually, on the first days o f January and
^circulation. °f July* after its organization, pay to the comptroller o f the currency, in
lawful money o f the United States, one per centum on the amount o f cirProvision in
culating notes received by such association, and in default thereof, the
case of default,
treasurer o f the United States is hereby authorized to reserve and retain
one per centum on the amount o f said bonds so deposited, at each semi­
annual payment o f interest thereon ; and all sums so reserved and
retained shall be paid into the treasury under the direction o f the SecreBanks, &c., not tary, and every bank, banking association, or corporation, not organized
U^s^cTto^iake un^er ,*le provisions o f this act, issuing notes calculated or intended to
returns semi-an- circulate as money, shall, on the first day o f July next, and regularly on
I!U;lll-v'
the first days o f January and July thereafter, make and deliver to the
comptroller o f the currency a true and accurate return o f the gross
amount o f notes issued by it, whether in circulation, or in its vaults, or on
Penaltv for de- deposit elsewhere, and in default o f any such return, the bank, banking
recovered. *°W
association, or corporation so failing to make return, shall pay to the
United States a penalty o f tvVo per centum upon its entire capital stock,
to be recovered, for the use o f the United States, in any court o f compe­
tent jurisdiction.
tkm'm™
^ EC' ^0. A n d be it further enacted, That after any such association
the" currency cir*lavc caused its promise to pay such notes on demand to be signed
culation as
by the president or vice-president and cashier thereof, in such manner as
money;
to make them obligatory promissory notes, payable on demand, at its
to be received P*ace
business, such association is hereby authorized to issue and circuat par fo/au'ex- ^lte t*le samc as m oney; and the same shall be received at par in all
cept duties, and parts o f the United States in payment o f taxes, excises, public lands, and
c x c e p S e res t on f**
dues to the United States, except for duties on imports, and also
public debt.
'®1’ a^ salaries and other debts and demands owing by the United States
to individuals, corporations, and associations within the United States,
Other issues
except interest on public d ebt; and no such association shall issue post
pro i ite .
notes, or any other notes to circulate as money, than such as are author­
ized by the foregoing provisions o f this act.
ferred as s™urit
^ EC- 21. A n d be it farther enacted, That all transfers o f United States
for^ircidatkH^ to bonds which shall be made by any association as security for circulating
have the fact
notes under the provisions of this act, shall be made to the treasurer o f
stated thereon,
the United States, with a memorandum written or printed on the cer­

tificate of such bonds, and signed by the cashier, or some other officer o f
the association making the deposit, 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 o f the circulating notes delivered to such assoHovr transferred, ciation; and no transfer of any such bonds by the treasurer shall be
deemed valid, or o f binding force and effect, unless sanctioned by the
Older or request of the comptroller o f the currency upon the treasurer

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671

I t shall be the duty o f the com ptroller o f the currency to keep in his Record of trans­
office a book in which shall be entered the name o f ev ery association ^era con^a“ 1
from whose account such transfer o f bonds is made b y the treasurer, and
the name o f the p arty to whom such transfer is made, unless such trans­
fer is made in blank, in which case the fact shall be stated in said book,
and in either case the par value o f the bonds so transferred shall be
entered th e r e in ; and it shall be the duty o f the comptroller, im medi- Dutyofcompately upon countersigning and entering the same, to advise b y m ail the troller.
association from whose account such transfer was made, the kind o f bonds
and the amount th ereof so transferred.
S e c . 22. A n d be it fu rth e r enacted, That it shall be the duty o f the Duty of compcom ptroller o f the currency to countersign and enter in the book, in the trollermanner aforesaid, e v e r y transfer o r assignment o f an y bonds held by the
treasurer presented for his sign atu re; and the comptroller shall have Comptroller and
at all times during office hours access to the books o f the treasurer, for treasu.rer mf!-v
the purpose o f ascertaining the correctness o f the transfer or assignment othera toots
presented to him to countersign; and the treasurer shall have the like
access to the book above mentioned, kept b y the comptroller, during
office hours to ascertain the correctness o f the entries in the same.
S e c . 23. A n d be it fu rth e r enacted, That it shall be the duty o f either
Some officer of
the president or cashier o f every banking association having stocks eaf'tl banking asdeposited in the office o f the treasurer o f the United States, once or |m!ne°yearlyX*its
more in each fiscal year, and at such' time or times during the ordinary bonds and combusiness hours as said officer or officers may select, to examine and com- phare/ a^ e T 1!1
pare the bonds so pledged with the books o f said Department, and, if department:
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
possession and custody o f the treasurer at the date o f such certificate.
Such examination may be made by an 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 if executed by such president or
cashier
S e c . 24. A n d be it fu rth e r enacted, That every association issuing
Associations to
circulating notes under the provisions o f this act, shall make a quarterly report quarterly
report to the comptroller o f the currency commencing on the first day ^ 7 ^
o f the quarter o f the year next succeeding the organization of such asso­
ciation, and continuing on the first days o f each succeeding quarter in
every year thereafter, which report shall be verified by the oath or affir­
mation of the president and cashier, and all wilful false swearing in re­
spect to such report shall be perjury, and subject to the punishment pre­
scribed by law for such offence. The report hereby required shall be in Contents of rothe form prescribed by the comptroller, and shall contain a true state- port,
ment o f the condition o f the association making such report, before the
transaction o f any business on the morning o f the day specified, next pre­
ceding the date o f such report, in respect o f the following items and par­
ticulars, to w it : Loans and discounts, overdrafts due from banks, amount
due from the directors o f the association, real estate, specie, cash items,
stocks, bonds, and promissory notes, bills o f solvent banks, bills o f sus­
pended banks, loss and expense account, capital, circulation, profits,
amount due to banks, amount due to individuals and corporations other
than banks, amount due the treasurer o f the United States, amount due
to depositors on demand, amount due, not included under either o f the
above heads. A n d it shall be the duty o f the comptroller to publish full Abstracts of re­
abstracts o f such reports together in two newspapers to be designated by ports to be pubhim for that purpose, one in the city o f Washington and the other in the
le<*'
city o f N ew York, exhibiting the items o f capital, circulation, and depos- Separate reits, specie and cash items, public securities and private securities ; and ports of each asthe separate report o f each association shall be published in a newspaper ^bUshedYn^ocal
published in the place where such association is established, or, if there newspaper.” ° *

672

T H IR TY-S E V E N TH CONGRESS.

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Ch .

58.

1863.

be no newspaper at such place, then in a newspaper published at the capi­
tal o f the State, at the expense o f the association making such report. In
Associations in addition to the quarterly reports required by this section, every associap^biish‘reports tion located and doing business in the cities o f Boston, Providence, N ew
monthly.
York, Philadelphia, Baltimore, Cincinnati, Chicago, St. Louis, and N ew
Orleans, shall publish, or cause to be published, on the morning o f the
first Tuesday in each month, in a newspaper printed in the city in which
the association making such report is located, to be designated by the
comptroller o f the currency, a statement, under the oath o f the presi­
dent 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 : aver­
age amount o f loans and discounts, specie, deposits, and circulation.
Upon failure to
S e c . 25. A n d he it furth er enacted, That i f any such association shall,
laUon^holder'may at an^ time fail to redeem> in the lawful money o f the United States, any
protest the same, o f its circulating notes, when payment thereof shall be lawfully demanded,
unless, &c.
during the usual hours o f business, at the office o f such association, 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 shall offer to
waive demand and notice o f the protest, and shall, in pursuance o f such
offer, make, sign, and deliver to the party making such demand an ad­
mission in writing, stating the time o f the demand, the amount demanded,
and the fact o f the non-payment thereof; and such 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
Association not currency; and after such default it shall not be lawful for the associacontinuetanking t!.on sufferin S the satne to Pay out any o f its notes, discount any notes or
business.
bills, or otherwise prosecute the business o f banking, except to receive

and safely keep money belonging to it, and to deliver special deposits:
Provided, however, That if satisfactory proof be produced to such notary
public that the payment o f any such notes is restrained by order o f any
court o f competent jurisdiction, such notary public shall not protest 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.
Upon notice o f
S e c . 26. A n d be it further enacted, That on receiving notice that any
deem^coufptrol-* ®ucj 1.assoc'at'on lias failed to redeem any o f its circulating notes, as speciler to ascertain
n^d in the next preceding section, the comptroller o f the currency, with
the fact.
the concurrence o f the Secretary o f the Treasury, may appoint a special
agent, (o f whose appointment immediate notice shall be given to such as­
sociation,) who shall immediately proceed to ascertain whether such asso­
ciation has refused to pay its circulating notes, in the lawful money o f the
United States, when demanded as aforesaid, and report to the comptroller
I f satisfied of the facts so ascertained ; and if, from such protest or the reports so made,
shall declare the f
?omPtrolier shall be satisfied that such association has refused to pay
bonds pledged to lts circulating notes as aforesaid, and is in default, he shall, within thirty
Proviso.

noti"y"holdererf t * yS
notes to present
them for pa> -

’‘e shi\° ‘^ . r e c e i v e d notice o f such failure, declare the United

z>Tl‘ l.,es honds an “ securities pledged by such association forfeited to the
U n ite d States, and the same shall thereupon be forfeited accordingly; and

theieupon the comptroller shall immediately give notice, in such manner
as the Secretary of the Treasury shall, by general rules or otherwise, di­
rect, to the holders o f the circulating notes o f such association to present
them for payment at the treasury o f the United States ; and the same
shall be paid as presented, whereupon said comptroller may, in his dis­
cretion, cancel an equal amount o f the bonds pledged by such association,
equal at current market rates, not exceeding par, to the notes paid ; and
it shall be lawtul for the Secretary o f the Treasury, from time to time, to
make such regulations respecting the disposition to be made o f such cir­
culating notes after presentation thereof for payment as aforesaid, and re-

T H IR TY-S E V E N TH CONGRESS.

S ess. I I I .

C h . 58.

1863.

specting the perpetuation o f the evidence o f the payment thereof, as may
seem to him proper ; but all such notes, on being paid, shall be cancelled;
and for any deficiency in the proceeds o f the bonds pledged by such as­
sociation, when disposed o f as hereinafter specified, to reimburse to the
United States the amount so expended in paying the circulating notes o f
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 in preference to any and all other claims what­
soever, except the necessary costs and expenses o f administering the
same.

673
Proceedings,

S e c . 27. A n d i e it further enacted, That whenever the comptroller
Instead o f canshall become satisfied, as in the last preceding section specified, that any celling the bonds
such association has refused to pay its circulating notes as therein men- ^lT F h em ttp u ttioned, he may, instead o f cancelling the United States bonds pledged by lie auction,
such association, as provided in the next preceding section, cause so much
o f 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 N ew York,
after giving thirty days’ notice o f such sale to such association.
S e c . 28. A n d be i t furth er enacted, That the comptroller o f the curor private sale,
rency may, i f he shall be o f opinion that the interests o f the United
States will be best promoted thereby, sell at private sale any o f the stock
so transferred to him by such association, and receive therefor either money
or the circulating notes o f such failing association: Provided, That no but not for less
such bonds shall be sold by private sale for less than the par, nor less than Parthan the market value thereof at the time o f sale. A n d •provided further, Sale, when comThat no sales o f any such stock, either public or private, shall be complete plete‘
until the transfer thereof shall have been made with the formalities pre­
scribed in this act.
S e c . 29.' A n d be it fu rth er enacted, That on becoming satisfied, as
Comptroller
specified in this act, that any such association has refused to pay its circuaPP°int a relating notes as therein mentioned, and is in default, the comptroller o f celver'
the currency may forthwith appoint a receiver, and require o f him such
bond and security as he shall deem proper, who, under the direction o f . Proceedings
the comptroller, shall take possession o f the books, records, and assets o f in suctl case’
every description o f 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 sucli associ­
ation, on such terms as the court shall direct; and such receiver shall pay
over all moneys so made to the treasurer o f the United States, and also
make report to the comptroller o f the currency o f 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 associ­
ation 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 redeeming the notes
o f such association as is mentioned in this act, shall make a ratable divi­
dend o f the moneys so paid over to him by such receiver on all such
claims as may have been so proved 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 dividends, as
aforesaid, on all claims previously proved or adjudicated; and the remain­
der o f such proceeds, i f any, shall be paid over to the shareholders o f such
association, or their legal representatives, in proportion to the stock by Association de
them respectively held : Provided, however, That i f any such association, nvingfailure raav
against which proceedings have been so instituted on account of any al- apply to court for
leged refusal to redeem its circulating notes as aforesaid, shall deny hav?“ d
•
/. • i i . j
.
. .
.
,
/>
nave the issue
mg tailed to do so, such association may at any time within ten days after tried.
v o l . x ii.

P u b . — 85

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III.

Ch. 58.

1863.

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 terri­
torial court o f the United States, to enjoin further proceeding 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'of a jury that such association has not
refused to redeem its circulating notes, when legally presented, in the law­
ful money o f the United States, shall make an order enjoining the comp­
troller, and any receiver acting under ,his direction, from all further pro­
ceedings on account o f such alleged refusal.
Bonds transferS e c . 30. A n d be it further enacted, That the bonds transferred to the
"tin^heW 'Ix- ?reasurer o f the United States, as hereinbefore provided, by any bankclusively tor that irlg association for the security o f its circulating notes, shall be held expurposc,until,&c. clusively for that purpose, until such notes shall be redeemed, except as
provided in this a c t; but the comptroller o f the currency may give to
any such banking association powers o f attorney to receive and appropriTnterest.
ate to its own use the interest on the bonds which shall have been so
de?edyonec a i'c T ’ t!'ansferred t0 the treasurer by i t ; but such powers shall become inoperaling circulation, tive whenever such banking association shall fail to redeem its circulating
notes as aforesaid ; and said comptroller may direct the return o f any of
said bonds to the banking association which transferred the same, upon
the surrender to him and the cancellation o f a proportionate amount of
Proviso.
such circulating notes: Provided, That ninety per centum o f the current
market value o f the remaining bonds which shall have been transferred
by the banking association offering to surrender such circulating notes
shall be equal to the amount o f all the circulating notes retained by such
banking association : A nd provided, further, That there shall have been
no failure by such association to redeem its circulating notes, and that
there shall have been no other violation by such association o f any o f the
provisions o f this act for the security o f the creditors o f such association ;
nor shall the treasurer be required to surrender such bonds in fractional
sums of less than one thousand dollars; and if, at any time after said
bonds shall be deposited with the treasurer o f the United States, as afore­
said, the market or cash value shall be reduced, the comptroller o f the
cunency 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 treas­
urer of the United States, as long as such depreciation continues.
If market value
Sf.c. 31. A n d be it further enacted, That whenever the price o f any
ate“und dXr-C‘"
encu is not made
ITto retain'in'*
tcrcst,

o f the mds PledSed
aforesaid for the redemption o f the circulating
n°tes O' auy such banking association shall be, at the stock exchange in
the ^
o f, N<SW, York, for four consecutive weeks, at a rate less than” that
at w.hl<!h tl,e>' sl,;,1! have been estimated when so pledged, and such de­
preciation shall not have been made good by a deposit o f other bonds or
money, it shall be the duty o f the comptroller o f the currency to notify
the treasurer o f the United States o f such fact, and the payment o f in­
terest upon such depreciated bonds shall be suspended, and such interest
shall be retained by said treasurer until the same, when added to the
current market value o f the bonds so pledged, to be ascertained as before
provided, shall be equal to the amount for which such bonds were pledo-ed:
Provided, That it shall be the duty o f the comptroller o f the currency,
at the expiration o f every period o f three months, to cause the whole o f
the sums so retained, and then remaining in the treasury o f the United
and invest the States, to be invested in United States bonds, in the name o f the comp-

C T Uarterlyln r0llf ?f the CT ' enCy’ in trUSt for the resPective associations by which
the bonds on which such interest shall have accrued shall have been
When former pledged ; and whenever the price o f such depreciated bonds at the stock
regained* “* 13

eXj ‘ange m
Y ° rk s!la11 rise to the Price at which they were pledged,
and so remain for four consecutive weeks, such investment shall be as-

TH IR TY-SE V E N TH CONGRESS.

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C h . 58.

1863.

675

signed to such association, and all accruing interest on such pledged bonds
shall thereafter be paid to such association on demand thereof.
S ec. 32. A n d be i t further enacted, That it shall be the duty o f the Worn-out or
comptroller o f the currency to receive worn-out or mutilated circulat- ™“ tik?exchan
ing notes issued by any such banking association, and to deliver in place Tdloinew?
thereof to such association other blank circulating notes to an equal
amount; and such worn-out or mutilated notes, after a memorandum Proceedings,
shall have been entered in the proper books, in 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 cancelled,
shall be burned to ashes in presence o f three persons, one to be appointed
by the Secretary o f the Treasury, one by the comptroller o f the cur­
rency, and one by the treasurer o f the United States, under such regu­
lations as the Secretary o f the Treasury may prescribe ; and in case such
notes shall have been delivered to the comptroller by an officer or agent
o f such association, then in the presence, also, o f such officer or agen t;
and a certificate o f such burning, signed by the parties so appointed,
shall be made in the books o f the comptroller, and a duplicate thereof
given to such officer or agent.
S e c . 33. A n d be it furthei enacted, That it shall be unlawful for any
Notes not to be
officer acting under the provisions o f this act to countersign or deliver delivered except
to any such association, or to any other company or person, any circulat- this act! * m
ing notes contemplated by this act, except as hereinbefore provided, and
in accordance with the true intent and meaning o f this act; and any
officer who shall violate the provisions o f this section shall be deemed
guilty o f a high misdemeanor, and on conviction thereof shall be punished Penalty,
by fine not exceeding double the amount so countersigned and delivered,
and imprisonment not exceeding fifteen years, at the discretion o f the
court in which he shall be tried.
S e c . 34. And be it further enacted, That all fees for protesting the Costs of protest,
notes issued by any such banking association shall be paid by the person
procuring the protest to be made, and such banking association shall be
liable therefor; but no part o f the stock pledged by such banking asso­
ciation, as aforesaid, shall be applied to the payment o f such fe e s ; and
all expenses o f any preliminary or other examinations into the condition
o f any association shall be paid by such association ; and all expenses o f Expenses of
any receivership shall be paid out o f the assets o f such association before aminatUm^ &X~
distribution o f the proceeds thereof.
of receivership.
S e c . 35. A n d be it further enacted, That the stockholders, collectively, indebtedness of
o f any such association shall at no time be liable to such association, either stockholders to
as principal debtors or sureties, or both, to an amount greater than three “ss°clatlon 1)mfifths of the capital stock actually paid in and remaining undiminished
by losses or otherwise ; nor shall the directors be so liable, except to 0f directors,
such amount and in such manner as shall be prescribed by the by-laws
o f such association, adopted by its stockholders to regulate such liabilities.
S e c . 36. A n d be it further enacted, T h a t th e c a p ita l stock o f a n y as- Capital stock of
association how
sociation formed under this act shall be divided into shares o f one hundred divided. ’
dollars each, and shall be assignable on the books o f the association in
such manner as its by-laws shall prescribe ; but no shareholder in any
association under this act shall have power to sell or transfer any share Shares, how
held in his own right so long as he shall be liable, either as principal, assignable,
debtor, surety, or otherwise, to the association for any debt which shall
sa,e
have become due and remain unpaid, nor in any case shall such share­
holder be entitled to receive any dividend, interest, or profit on such
shares so long as such liabilities shall continue, but all such dividends,
interests, and profits shall be retained by the association, and applied to
the discharge o f such liabilities; and no stock shall be transferred with­
out the consent o f a majority o f the directors while the holder thereof is
thus indebted to the association.

G76

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S ess.

III.

Ch. 58.

1863.

Associations
Skc. 37. A n d he it fu rth er enacted, That no banking association shall
"f0*”l^as'scc'r'l'1' ^a^e’ as security f ° r any loan or discount, a lien upon any part of its
for^oans
capital stock; but the same security, both in kind and amount, shall be
required o f shareholders as o f other persons; and no such banking as­
sociation shall be the purchaser or holder o f any portion o f its capital
nor own it, or stock, or o f the capital stock o f any other incorporated company, unless
stock of other aspurchase shall be necessary to prevent loss upon a debt previously
sociation unless
•*
^
*
’
’ contracted in good faith, on security which, at the time, was deemed ade­
quate to insure the payment o f such debt, independent o f any lien upon
such stock; or in case o f forfeiture o f stock for the non-payment o f in­
stalments due thereon, and stock so purchased or acquired, shall in no
case be held by such association so purchasing for a longer period of
time than six months, if the same can, within that time, be sold for what
the stock cost.
Shareholders
Sice. 38. A n d he it further enacted, That in all elections o f directors,
entitled to one
and in deciding all questions at meetings o f shareholders, each share­
vote for each
holder shall be entitled to one vote on each share o f stock held by him ;
share.
shareholders may vote by proxies duly authorized in w riting; but no
Proxies.
officer, clerk, teller, or book-keeper o f such association shall act as p ro x y ;
and no stockholder whose liability is past due and unpaid shall be al­
lowed to vote.
Directors.
S e c . 39. A n d he it further enacted, That the affairs o f every such as­
Number.
sociation shall be managed by not less than five nor more than nine
directors, one o f whom shall be president o f the association; every di­
rector shall, during his whole term o f service, be a citizen o f the United
Residence.
States and a resident o f the state in which such association is located.
A t least three fourths o f the directors shall have resided in the state in
which such association is located one year next preceding their election
Interest.
as directors; and each director shall own in his own right, at least one
per centum o f the capital stock o f such association not exceeding two
hundred thousand dollars, and the half o f one per centum o f its capital if
Oath.
over two hundred thousand dollars. Each director shall take an oath
that he will, so far as the duty devolves on him, diligently and honestly
administer the affifirs o f such association, 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, o f the shares o f stock
standing in his name on the books o f the association, and that the same
is not hypothecated, or in any way pledged, as security for any loan ob­
tained or debt owing to the association o f which he is a director, which
oath, subscribed by himself, and certified by the officer before whom it is
taken, shall be immediately transmitted to the comptroller o f the cur­
rency, and by him filed and preserved in his office.
Term of office.
S e c . 40. A nd he it further enacted, That the directors o f any such as­
sociation first elected shall hold their places until their successors shall
Election.
be elected and qualified. A ll subsequent elections shall be held annually,
on such day in the month of January as the stockholders o f said associa­
tion may prescribe ; and the directors so elected shall hold their places
for one year, and until their successors are elected and qualified. But
any director removing from the state, or ceasing to be the owner o f the
Vacancy.
requisite amount o f stock, shall thereby vacate his place. A ny vacancy
in the board shall be filled by appointment by the remaining directors.
The director so appointed shall hold his place until the next annual elec­
tion ; and if, from any cause, an election o f 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 having been given in a newspaper printed, or o f general circula­
tion, 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 in the county adjoining.

TH IR TY-S E V E N TH CONGRESS.

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C h . 58.

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677

S e c . 41. A n d be it further enacted, That every such association shall
Associations to
at all times have on hand, in lawful money o f the United States, an have
1
* 1
. . / .
/. i
amount of money
amount equal to at least twenty-nve per centum of the aggregate amount on hand.
o f its outstanding notes o f circulation and its deposits; and whenever When not to
the amount o f its outstanding notes o f circulation and its deposits shall ™ake new loans,
exceed the above-named proportion for the space o f twelve days, or c‘
whenever such lawful money o f the United States shall at any time fall
below the amount o f twenty-five per centum o f its circulation and de­
posits, such association shall not increase its liabilities by making any
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 its deposits and lawful money o f the United States
shall be restored : Provided, however, That clearing-house certificates, What may be
representing specie or lawful money specially deposited for the purpose deemed lawful
o f any clearing-house association, shall be deemed to be lawful money in raonev‘
the possession o f any association belonging to such clearing-house holding
and owning such certificates, and considered to be a part o f the lawful
money which such association is required to have, under the foregoing
provisions o f this section: Provided, further, That any balance due to
any association organized under this act in other places from any asso­
ciation in the cities o f Boston, Providence, N ew York, Philadelphia,
Baltimore, Cincinnati, Chicago, St. Louis, or N ew Orleans, in good
credit, subject to be drawn for at sight, and available to redeem their
circulating notes and deposits, may be deemed to be a part o f the lawful
money which such association in other places than the cities o f Boston,
Providence, N e w Y ork, Philadelphia, Baltimore, Cincinnati, Chicago,
St. Louis, and N ew Orleans, are required to have by the foregoing pro­
visions o f this section, to the extent o f three fifths o f the said amount of
twenty-five per centum required. And it shall be competent for the
comptroller o f the currency to notify any such association whose lawful
money reserve, as aforesaid, shall fall below said proportion of twenty-five
per centum, to make good such reserve ; and if such association shall fail
for thirty days thereafter so to make good its reserve o f lawful money
o f the United States, the comptroller may, with the concurrence o f the
Secretary o f the Treasury, appoint a receiver to wind up the business o f
such association, as provided in this act.
S e c . 42. A n d be it further enacted, That no association shall at any
Indebtedness ot
time be indebted, or in any way liable, to an amount exceeding the amount
o f its capital stock at such time actually paid in, and remaining undimin- lte ' except’ c‘
ished by losses or otherwise, except on the following accounts, that is to say:
First. On account o f its notes o f circulation.
Second. On account o f moneys deposited with, or collected 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 money paid in
on capital stock, and dividends thereon, and reserved profits.
S e c . 43. A n d be it further enacted, That no association shall, either
Associations
directly or indirectly, pledge or hypothecate any o f its notes o f circula- "hgj^cir^cuJation
tion, for the purpose o f procuring money to be paid in on its capital stock,
or to be used in its banking operations, or otherwise.
S e c . 44. A n d be it further enacted, That no association, or any memCapital not to
ber thereof, shall, during the time it shall continue its banking operations, Jjfvfj™n‘dsSt&c by
withdraw, or permit to be withdrawn, either in form o f dividends, loans to
stockholders for a longer time than six months or in any other manner,
any portion o f its capital; and if losses shall at any time have been sus­
tained by any such association equal to or exceeding its undivided profits
then on hand, no dividend shall be made; and no dividend shall ever be

678

Dividends in
May and NovemOn each dividend day cashier

mc^tocomptroller as to
Capital.
Circulation.

Due other
banks.
Depositors.
Liabilities.

Dividend.

Subject to draft.

Bills on hand.

TH IRTY-SE V EN TH CONGRESS.

S ess.

III.

Ch. 58.

1863.

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; and all debts due to any association, on which
interest is 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 con­
sidered bad debts within the meaning o f this act.
S e c . 45. A n d be it fu rth er enacted, Th at the directors o f every association shall semi-annually in the months o f M a y and November, declare
a dividend o f so much o f the profits o f such association as they shall
judge expedient; and on each dividend day, the cashier shall make, and
verify by his oath, a full, clear, and accurate statement o f the condition
° f tlie association, as it shall be on that day after declaring the divi­
dend; which statement shall contain —
First. T h e amount o f the capital stock actually paid in and then re­
maining, as the capital stock o f such association.
Secondly. The amount o f the circulating notes o f such association then
in circulation.
Tlrirdly. T h e greatest amount in circulation at any time since the
making o f the last previous statement, as shall have been exhibited by
the weekly statements o f the cashier, specifying the times when the same
occurred.
Fourthly. T h e amount o f balances and debts o f every kind due to
other banks and banking associations.
Fifthly. T h e amount due to depositors.
Sixthly. T h e total amount o f debts and liabilities o f every description,
and the greatest amount since the making o f the last previous statement,
specifying the time when the same accrued.
Seventhly. T h e total amount o f dividend declared on the day o f mak­
ing the statement.
Eighthly. The amount o f lawful money o f the United States belonging
to the association, and in its possession at the time o f making the statement.
Ninthly. The amount subject to be drawn at sight, in lawful money
o f the United States, then remaining on deposit with any associations,
banks or bankers; specifying the amounts so on deposit in the cities of
Boston, Providence, N e w York, Philadelphia, Baltimore, Cincinnati,
Chicago, St. Louis, and N e w Orleans.
Tenthly. T h e amount then on hand o f bills or notes, issued by other
banks and banking associations.

bank'6 fl°m oU'er
Eleventhly. The amount o f balances due from other banks, bankers,
an t$‘
and banking associations, excluding deposits subject to be drawn at sight
as aforesaid.
Assets.
Twelfthly. T h e amount on hand o f bills, bonds, stocks, notes, and other
evidences o f debts, discounted or purchased by the association, specifying
particularly the amount o f suspended debt, the amount considered bad,
the amount considered doubtful, and the amount in suit or judgment.
sonaTLatafePer'
Thirteenthly. The value o f the real and personal property held for
a s a e'
the convenience o f the association, specifying the amount o f each.
Fourteenthly. The amount o f real estate taken in payment o f debts
due to the association.
^Undivided profFifteenthly. The amount o f the undivided profits o f the association.
Debts of direct- ■^ixteenthly.
total amount o f the liability to the association by the
ors.
directors thereof collectively, specifying the gross amount o f such liabili­
ties as principal debtors, and the gross amount o f indorsers or sureties.
The statement thus made shall forthwith be transmitted to the comp­
troller o f the currency.
Rate of interest
S e c . 46. A n d be it furth er enacted, That every association may take,
counts?8
' reserve’ receive, and charge on any loan, or discount made, or upon any
note, bill o f exchange, or other evidence o f debt, such rate o f interest or
discount as is for the time the established rate o f interest for delay in the

TH IR TY-S E V E N TH CONGRESS.

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III.

Ch. 58.

1863.

679

payment o f money, in the absence o f contract between the parties, by the
laws o f the several States in which the associations are respectively lo­
cated, and no m ore: Provided, however, That interest may be reserved or
taken, in advance, at the time o f making the loan or discount, according
to the usual rules o f banking; and the knowingly taking, reserving, or Usury to
charging o f a rate o f interest greater than that allowed by this section forfeit the debtshall be held and adjudged a forfeiture o f the debt or demand on which
the same is taken, reserved, or charged; but the purchase, discount, or
sale o f a bill o f exchange, drawn on actually existing values, and payable
at another place than the place o f such purchase, discount, or sale, at the
current discount or premium, shall not be considered as taking, reserving,
or charging interest.
S e c . 47. A n d he it further enacted, That the total liabilities o f any
Limit of liabilperson, or o f any company or firm, (including in the liabilities o f a com- ityofanyindividpany or firm the liabilities o f the several members thereof,) to any asso- U oassocia lon'
ciation, including liabilities as acceptor o f bona fide bills o f exchange,
payable out o f the state where the association is located, shall at no time
exceed one third ; exclusive o f liabilities as acceptor, one fifth; and' ex­
clusive of liabilities on such bills o f exchange, one tenth part o f the
amount o f the capital stock o f such association actually paid in.
S e c . 48. A n d be it furth er enacted, That no association shall, at any
What notes astime, pay out on loans or discounts, or in purchasing drafts or bills o f ex- sociations shall
change, or in payment o f deposits, nor shall it in any other mode put in notpayout'
circulation the notes o f any bank or banking association, which notes
shall not, at any such time, be receivable, at par, on deposit, and in pay­
ment 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 banking association which at the time o f such paying out or
putting in circulation is not redeeming its circulating notes in lawful
money o f the United States.
S e c . 49. A n d be it fu rth er enacted, That all transfer of the notes,
All transfers,
bonds, bills o f exchange, and other evidences o f debt owing to any asso" any act
ciation, or o f deposits to its credit; all assignments o f mortgages, sureties °n continuation
on real estate, or o f judgments or decrees in its fa v o r; all deposits o f thereof, with inmoney, bullion, or other valuable thing for its use, or for the use o f any o f
&c'’ to be
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 o f its assets in the manner prescribed by
this act, or with a view to the preference of one creditor to another, ex­
cept in payment o f its circulating notes, shall be utterly null and void.
S e c . 50. A nd be it further enacted, That if the directors o f any assoi f directors
ciation shall knowingly violate, or knowingly permit any o f the officers, knowingly vioagents, or servants o f the association to violate any o f the provisions o f 1r^vi^ons^this
this act, all the rights, privileges, and franchises o f the association derived act,^enfranchise
from this act shall be thereby forfeited; such violation shall, however, be t0 be forfeited,
determined and adjudged by a proper circuit, district, or territorial court dh-iduafiy.01'1 m'
o f the United States, before the association shall be declared dissolved ;
and in cases o f such violation, every director who participated in or as­
sented 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.
S e c . 51. A n d be it further enacted, That the comptroller o f the curComptroller to
rency, with the approbation o f the Secretary o f the Treasury, as often as
shall be deemed necessary or proper, shall appoint a suitable person or ^tion to*beaSS°~
persons to make an examination o f the affairs o f every banking associa- made,
tion, which person shall not be a director or other officer in any associa­
tion whose affairs he shall be appointed to examine, and who shall have
power to make a thorough examination into all the affairs of the associa­
tion, and, in doing so, to examine any o f the officers and agents thereof

680

TH IR TY-S E V E N TH CONGRESS.

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IIL

Ch. 58.

186S.

on oath, and shall make a full and detailed report o f the condition o f 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 o f law and chancery. A n d every
Pay of exam- person appointed to make such exam ination shall receive fo r his services
*nersat the rate o f fiv e dollars fo r each day by him em ployed in such examina­
tion, and tw o dollars fo r e v e r y tw enty-five m iles he shall necessarily travel
in the perform ance o f his duty, which shall be paid b y the association by
him examined.
S e c . 52. A n d be it fu rth e r enacted, T h at every president, director,
cas^ 'er> teller, clerk, or agent o f any association, who shall embezzle, abors, how punstract, or wilfully misapply any o f the moneys, funds, or credits o f the
ished.
association, or shall, without authority from the directors, issue or put in
circulation any o f the notes o f the association, or shall, without such au­
thority, issue or put forth any certificate o f deposit, draw any order or bill
o f 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 o f the association, with intent, in either
case, to injure or defraud any other company, body politic, or corporate,
or any individual person, or to deceive any officer or agent appointed to
examine the affairs o f any such association, shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be punished by imprison­
ment not less than five nor more than ten years.
List of shareS e c . 53. A n d be it fa rth er enacted, That the president and cashier of
kept6™ t0 ljC
every such association shall cause to be kept at all times a full and cor­
rect list o f the names and residences o f all the shareholders in the asso­
ciation in the office where its business is transacted; and such list shall be
subject to the inspection o f all the shareholders and creditors o f the as­
sociation during business hours o f each day in which business' may be
legally transacted; and a copy o f such list, verified by the oath o f such
president or cashier, shall, at the beginning o f every year, be transmitted
to the comptroller o f the currency, commencing on the first day o f the
first quarter after the organization o f the association.
Any association
S e c . 54. A n d be it fu rth er enacted, That the Secretary o f the Treasdeposu\™aof * ur^ 's hereby authorized, whenever, in his judgment, the public interests
public moneys,
'vil1 be promoted thereby, to employ any o f such associations doing busiexcept, &c.
ness under this act as depositaries o f the public moneys, except receipts
from customs.
Suits in behalf
S e c . 55. A n d be it fu rth er enacted, That all suits and proceedings arisgtates tonbe con- *n" out
P rovision s o f this act, in which the United States or its
ducted by district officers or agents shall be parties, shall be conducted by the district attorattorneys.
neys o f the several districts, under the direction and supervision o f the
solicitor o f the treasury.
Mutilation &c.,
S e c . 56. A n d be it furth er enacted, That every person who shall mutivithYntent, &c* *ale’ cut’ deface> disfigure, or perforate with holes, or shall unite or cement
how punished. ’ together, or do any other thing to any bank bill, draft, note, or other
evidence o f 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 o f debt, unfit to be reissued by said association, shall upon
conviction forfeit fifty dollars to the association who shall be injured there­
by, to be recovered by action in any court having jurisdiction.
Forging, &c.,
S k c . 57. A n d be it fu rth er enacted, That i f any person shall falsely
how pui'mhed.163’ mal<e’
ot' counterfeit, or cause or procure to be made, forged, or
counterfeited, or willingly aid or assist in falsely making, forging, or coun­
terfeiting, any note in imitation of, or purporting to be in imitation of, the
circulating notes issued under the provisions o f this act, or shall pass,
utter, or publish, or attempt to pass, utter, or publish any false, forged, or
counterfeited note, purporting to be issued by any association doing a
banking business under the provisions o f this act, knowing the same to be
Embezzlement,

ffficera I n d i r e c t -

TH IR TY-S E V E N TH CONGRESS.

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III.

C h . 58.

1863.

681

falsely made, forged, or counterfeited, or shall falsely alter, or cause or Uttering forged
procure to be falsely altered, or willingly aid or assist in falsely altering, ?otes>how P™any such circulating notes, issued as aforesaid, or shall pass, utter or pub- lshed'
lish, 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 o f felony, and being thereof
convicted by due course o f law, shall be sentenced to be imprisoned and
kept at hard labor for a period not less than five years nor more than
fifteen years, and to be fined in a sum not exceeding one thousand dollars.
S e c . 58. A n d be it fu rth er enacted, That i f any person shall make or Engraving, &c.,
engrave, or cause or procure to be made or engraved, or shall have in his or having custody
custody or possession any engraved plate o f block after the similitude o f &cpIa^;th Pintent
any plate from which any circulating notes issued as aforesaid shall have &c.,’ how punishbeen printed, with intent to use such plate or block, or cause or suffer the e(^*
same to be used, in forging or counterfeiting any o f the notes issued as
aforesaid, or shall have in his custody or possession any blank note or
notes engraved and printed after the similitude o f any notes issued as
aforesaid, with intent to use such blanks, or cause or suffer the same to
be used, in forging or counterfeiting any o f the notes issued as aforesaid,
or shall have in his custody or possession any paper adapted to the
making o f such notes, and similar to the paper upon which any 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 o f law, shall be sentenced to be imprisoned and kept to hard labor
for a term not less than five nor more than fifteen years, and fined in a
sum not exceeding one thousand dollars.
S e c . 59. A n d be it further enacted, That suits, actions, and proceedings
Suits, &c.,
by and against any association under this act may be had in any circuit, aeainst “ssocidistrict, or territorial court o f the United States held within the district brought in any
in which such association may be established.
federal court in
S e c . 60. A n d be it further enacted, That it shall be the duty o f the ^‘fct^roper dls"
comptroller o f the currency to report annually to Congress, at the com- Annual report
mencement o f its session—
of comptroller.
First. A summary o f the state and condition o f every association from Summary of
whom reports have been received the preceding year, at the several dates associations,
to which such reports refer, with an abstract o f the whole amount o f
banking capital returned by them, o f the whole amount o f their debts
and liabilities, the amount o f circulating notes outstanding, and the total
amount o f means and resources, specifying the amount o f specie held by
them at the times o f their several returns, and such other information in
relation to said associations as, in his judgment, may be useful.
Second. A statement o f the associations whose business has been closed List of associduring the year, with the amount o f their circulation redeemed, and the ations elosedamount outstanding.
Third. T o suggest any amendment to the laws relative to banking by Suggestion of
which the system may be improved, and the security o f the bill-holders amendments,
and depositors may be increased.
Fourth. T o report the names and compensation o f the clerks employed Names, &c., oi
by him, and the whole amount o f the expenses o f the banking department
of depart
during the y e a r ; and such report shall be made by or before the first ment? ° epar'
day o f December in each year, and the usual number o f copies for the When report to
use o f the Senate and House, and one thousand copies for the use o f the ^ . “ “deand
Department, shall be printed by the public printer and in readiness for
distribution on the first meeting o f congress.
S e c . 61. A n d be it further enacted, That any banking association or
Any lawfully
corporation lawfully in existence as a bank o f circulation on the first day existing bank
o f January, Anno Domini eighteen hundred and sixty-three, organized may become an
v o l. x ii.

P u b . — 86

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III.

Ch .

58, 59.

1863.

association under jn ariy state, either under a special act o f incorporation or a general
this act.
banking law, may, at any time within — years after the passage o f this

act become an association under the provisions o f this a c t; that in such
Proceedings in case the certificate o f association provided for by this act shall be signed
such case.
^ the directors o f such banking association or corporation, and in ad­

dition 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 banking association or corporation, to make such certificate of
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 associations organized under this act. And such associ­
ation or corporation thereafter shall have the same powers and privileges,
and shall be subject to the same duties, responsibilities, and rules, in all
respects, as is [a r e ] prescribed in this act for other associations organized
under it, and shall be held and regarded as an association under this act.
Certain existS e c . 62. And, be it fu rth e r enacted, That any bank or banking assoeiing banks owning ation, authorized by any State law to engage in the business o f banking,
feinUie'm*ancTre- anc^
organized under such State law at the time o f the passage of
ceive circulating this act, and which shall be the holder and owner o f United States bonds
notes.
to the amount o f fifty per centum o f its capital stock, may transfer and
deliver to the treasurer o f the United States such bonds, or any part
thereof, in the manner provided by this a c t; and upon making such trans­
fer 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.
Provisions in
S e c . 63. A n d be it fa rth e r enacted, That upon the failure o f any such
M s to redeetn
^ tate bank or banking association, to redeem any o f its circulating notes
such circulation, issued under the provisions o f the preceding section, the comptroller of
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.
And
thereupon the circulating notes which have been issued by such bank or
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.
Bonds forfeit
S e c . 64. A n d be it fu rth er enacted, That the bonds forfeited, as proorsold! CaDCe 6 v ‘^ed *n tb*5 last preceding section, may be cancelled to an amount equal
to the circulating notes redeemed and paid, or such bonds may be sold,
under the direction of the Secretary o f the Treasury, and after retaining
out o f the proceeds a sum sufficient to pay the whole amount o f circulat­
ing notes, for the redemption o f which such bonds are held, the surplus,
i f any remains, shall be paid to the bank, or banking association from
which such bonds were received.
This act may
S e c . 65. A n d be it further enacted, That Congress reserves the right,
at any time be
at any time, to amend, alter, or repeal this act.
repealed, &c.
A p p r o v e d , February 25, 1863.

Feb. 2-5,1863.

C h a p . L I X . — A n A ct making Appropriations fo r the Z^egislative, Executive, and Judi­

cial Expenses o f the Government fo r the Year ending thirtieth June, eighteen hundred
and sixty-four, and fo r the Year eighteen hundred and sixty-three, and f o r other Purposes.

Be it enacted by the Senate and House o f Representatives o f the United
Legislative, &c., States o f Am erica in Congress assembled, That the following sums be, and
appropriations.
t[le galne are hereby, appropriated, out o f any money .in the treasury not

otherwise appropriated, for the objects hereinafter expressed for the fis­
cal year ending the thirtieth o f June, eighteen hundred and sixty-four,
nam ely: