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64t h CONGEESS

1s t SESSION

DECEMBER f>, 1915-SEPTEMBER 8, 1916

SENATE DOCUMENTS

VOL. 18

WASHINGTON : s GOVERNMENT PRINTING OFFICE : : l!)17

64t h

C on gress

1st Session

\
I

SENATE
J

I D ocum ent
\ No. 412

THE NATIONAL-BANK ACT
AS AMENDED

THE FEDERAL RESERVE ACT
AND

OTHER LAWS RELATING TO
NATIONAL BANKS

Compiled under the direction o f the Comptroller o f the Currency

AUGUST, 1917

W ASH IN GTON
GO VE R N M EN T PR IN TIN G OFFICE

1917

SENATE RESOLUTION 110.
SUBMITTED BY SENATOR OWEN.

I n t h e S e n a te o f t h e U n ite d S t a t e s ,

February 25, 1916.
Resolved, That the pamphlet submitted by the Senator from Okla
homa (Mr. Owen) on December thirteenth, nineteen hundred and
fifteen, entitled “ The National Bank Act as Amended, the Federal
Reserve Act, and Other Laws Relating to National Banks,” be
printed as a Senate document, and that one thousand additional
copies be printed for the use of the Senate document room.
Attest:

J am es M . B a k e r ,

Secretary.

CONTENTS.
Page.

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

5
11
11
21
49
71
95
I ll
165
191
199
205
257
286

DATES OF ACTS RELATING TO NATIONAL
BANKS.
THE NATIONAL BANE ACT AND ACTS AMENDATORY THEREOF AND SUPPLEMENTARY*
THERETO.
Page.
Feb. 25,1863. An act to provide a national currency secured by a pledge of
United States stocks, and to provide for the circulation and
165
redemption thereof.........................................................................
June 3,1864. Act of February 25, 1863, repealed and reenacted with certain
amendments............................................................ 11-10 7 ,12 4 ,16 5 ,16 6
Mar. 3,1865. Tax on State bank circulation. State banks converted may
retain and keep in operation branches........................................
43
Mar. 3,1865. Issue of circulating notes. See note under section 5 1 7 1 .............
166
Feb. 5,1867. Penalty for imitating bank circulation......................................... 65,178
Mar. 2,1867. Refunding excess tax.........................................................................
92
Feb. 10,1868. Taxation of shares of national-bank stock......................................
92
Feb. 19,1869. Prohibiting loans on United States or national-bank notes, or
withholding such notes from use..................................................
85
Mar. 3,1869. Reports of condition, and earnings and dividends........................ 88,89
Mar. 3,1869. False certification of checks........... „ ................................................
86
Apr. 6,1869. Penalty for embezzlement, abstraction, etc...................................
87
Ju ly 8,1870. Penalty for embezzlement, abstraction, etc...................................
87
Ju ly 12,1870 . Issue of circulation redeemable in gold.......................................... 64,81
Ju ly 14,1870. Liquidating banks to retire circulation__ *...................................
96
Mar. 1,18 7 2 . Leavenworth struck out as reserve city..........................................
74
June 8,1872. Certificates of deposit for United States notes (repealed Mar. 14,
1900).................................................................................................
80
Feb. 19 ,18 73. Reports of State banks.......................................................................
13
Mar. 3,1873. Examination of plates and dies........................................................
61
Mar. 3,1873. Assessment for impairment of capital.............................................
84
Mar. 3,18 73. Use of the word “ national” .............................................................
107
June 20,1874. Fixing the amount of United States notes, providing for a redis
tribution of national-bank currency, etc................. 2 2,54 ,6 1,7 8 , 96
June 23,1874. Maceration of United States and national-bank notes...............
63
June 23,1874. Stamps on bank checks. Repealed March 3,18 8 3 .
Jan. 14 ,18 7 5. Aggregate amount of circulation not limited..................................
62
Jan. 19 ,18 75. Circulating notes of national gold banks........................................
64
Feb. 18 ,18 7 5. Correcting errors and omissions in the Revised Statutes 13,6 3 ,8 1,9 6 ,16 8
Feb. 19 ,18 75. Appointment and compensation of bank examiners...................13,10 6
Mar. 3,18 7 5. Salary of Comptroller.........................................................................
11
Mar. 3,18 75. Distinctive paper for printing notes...............................................
61
Mar. 3,18 7 5. Clerical force for redemption of circulating notes..........................
79
June 30,1876. Receivers, appointment of............................................... 8 5 ,10 1,10 2 ,10 3
Feb. 27,18 77. Examination of plates and dies........................................................
61
Feb. 27,1877. Reports to Comptroller......................................................................
88
Feb. 27,1877. Destruction of redeemed notes.........................................................
97
Mar. 1,18 79 . Semiannual duty, abatement of.......................................................
92
Feb. 14,1880. Conversion of gold banks...................................................................
64
Feb. 26,1881. Verification of returns of national banks___ - .................................
89
Ju ly 12,188 2. Corporate existence, extension of.................................................... 27-30
Ju ly 12,1882. Issue of gold certificates....................................................................
86
Ju ly 12,188 2. Punishment for falsely certifying check.........................................
86
Ju ly 12,1882. Issue of circulating notes...................................................................
55
Mar. 3,1883. Capital and deposits, repealing tax on................................... 90,166,168
Mar. 29,1886. Insolvent banks, protection oi assets by use of trust funds__ 104,105
May 1,18 86. Increase of capital stock, change of name or location............. 2 6 ,2 7,3 3
Mar. 3,188 7. Courts, jurisdiction of........................................................................
27

DATES OP ACTS RELATING TO NATIONAL BANKS.
Pile,

Mar. 3,1887.
Aug. 13,1888.
July 14,1890.
July 28,1892.
Aug. 3,1892.
Jan. 12,1895.
Mar. 2,1897.
Mar. 14,1900.
Mar. 3,1901.
Apr. 12,1902.
Apr. 28,1902.
Mar.
Feb.
Dec.
June
Jan.
Mar.
Mar.

3,1903.
28,1905.
21,1905.
22,1906.
26,1907.
4,1907.
4,1907.

May 22,1908.
May 30,1908.
Mar.
Mar.
Oct.
May

4,1909.
4,1909.
15,1914.
15,1916.

May 15,1916.
Sept. 7,1916.

Apr. 24,1917.

Reserve and central reserve cities, providing for additional, etc. 72,74
Courts, jurisdiction o f.................................................................
27
Disposition of redemption account.............................................
80
Stolen or lost national-bank notes, redemption of......................
80
Agent of shareholders of national bank, appointment of; amends.
102
act of June 30,1876...............................................................
14
Annual Report of Comptroller of the Currency, printing of.......
Appointment and qualification of shareholders^agent; amends
acts June 30,1876, and August 3, 1892....................................
102
Authorizing banks with minimum capital $25,000; bonds, cir
culation, taxation, etc........................................................31,59,90
40
National-bank depositaries.........................................................
Authorization of reextension of charter......................................
31
Annual Report of Comptroller to contain information regarding
failed banks, list of employees, etc.........................................
14
Additional reserve cities; minimum population, 25,000.............
74
Qualification of directors, banks with capital of $25,000............
34
Taxation of circulation based on Panama Canal bonds..............
51
Amendment section 5200, loan limitation..................................
82
87
Political contributions prohibited..............................................
Additional copies of Report of Comptroller................................
15
Public depositaries.....................................................................
40
Gold certificates and United States notes, issue of.....................
185
Limitation on withdrawal of circulation; consent of Comptroller
of Currency and the Secretary of the Treasury necessary.......
55
Additional Deputy Comptroller.................................................
12
Authorizing National Currency Associations, the issue of addi
tional bank circulation, ana creating a National Monetary
Commission. Expired June 30,1915.
Codification of criminal laws....................................... 65,169,172-178
Additional Deputy Comptroller..................................................
12
Interlocking directorates............................................................ 34,36
Amending act of October 15,1914, relating to interlocking direc
torates..................................................................................... 34,35
Authorizing the deposit of funds of insolvent banks in any regu
lar Government depositary.....................................................
100
Amending laws in reference to real estate loans, reserves, ac
ceptances, and foreign branches, and authorizing bank to act
as insurance agent and as agent in procuring loans on real
estate.......................................................................................
83
No reserve required to be held against United States deposits..
76
THE FEDERAL RESERVE ACT.

Dec. 23,1913. Providing for the establishment of Federal reserve banks, to
furnish an elastic currency, to afford means of rediscounting
commercial paper, to establish a more effective supervision
of banking in the United States, and for other purposes.........
11,
23-25-33,40-50,56,57,76,77,83,88,113-173
Aug. 4,1914. Amending section 27 of the Federal reserve act and section 9 of
the act of May 30, 1908, relative to issuance of additional
circulation........................................................................... 155,156
Aug. 15,1914. Amending section 19 of the Federal reserve act in reference to
reserve requirements........................................................ 76,77,149
Mar. 3,1915. Amended paragraphs 3, 4, and 5 of section 13 of Federal reserve
act superseded by act of September 7,1916.......................... 24,135
Sept. 7,1916. Amends sections 11,13,14,16, 24, and 25 of the Federal reserve
act and section 5202 United States Revised Statutes. 23-25,133-136
June 21,1917. Amends sections 3,4, 9,13,14,16,17,19, and 22 of the Federal
Reserve act....... 7,9,24,50,76,77,88,117,121,125-127,134-152,153
▲GTS OF A GENERAL NATURE AFFECTING NATIONAL BANKS.

July 7,1838. Issuing circulation of expired association...................................
178
June 30,1864. Taxation of State banks.......................................................... 166-168
Mar. 3,1865. Taxation of State banks................................................... 166,168,169

DATES OF ACTS RELATING TO NATIONAL BANKS.

Page.
July
Mar.
June
Dec.
Feb.
Feb.
Mar.
Feb.

13,1866.
26,1867.
6,1872.
24,1872.
8,1875.
18,1875.
1,1879.
25,1862.

Taxation of State banks........................................................................ 166-168
Taxation of State banks............................................................................
167
Taxation of State banks........................................................................166,167
Taxation of State banks....................................................................... 167,168
Taxation of State banks....................................................................... 166,167
Tazation o: State banks...........................................................................
168
Taxation of State banks............................................................................
169
Taxation of national-bank notes and notes and certificates of
United States circulating as currency..............................................
169
Mar. 3,1863. Taxation of national-bank notes and notes and certificates of
United States circulating as currency..............................................
169
Mar. 3,1864. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
June 30,1864. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
Jan. 28,1865. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
Mar. 3,1865. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
July 14,1870. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
Aug. 13,1894. Taxation of national-bank notes and notes and certificates of
United States circulating as currency.............................................
169
July 17,3862. Restriction on notes less than one dollar............................................
169
Feb. 21,1857. Foreign coins not legal tender................................................................
170
July 17,1861. Demand Treasury notes legal tender same as United States
notes...........................................................................................................
171
Feb. 12,1862. Demand Treasury notes legal tender same as United States
notes...........................................................................................................
171
Feb. 25,1862. Demand Treasury notes legal tender same as United States
notes...........................................................................................................
171
Feb. 25,1862. United States notes legal tender except for duties on imports
and interest on public debt................................................................
170
Mar. 17,1862. Demand Treasury notes legal tender same as United States
notes............................................................................................................
171
July 11,1862. United States notes legal tender except for duties on imports
and interest on public debt................................................................
170
Jan. 17,1863. United States notes legal tender except for duties on imports
and interest on public debt................................................................
170
Mar. 3,1863. United States notes legal tender except for duties on imports
and interest on public debt................................................................
169
Mar. 3,1863. Interest-bearing notes legal tender to same extent as United
States notes..............................................................................................
171
June 30,1864. Interest-bearing notes legal tender to same extent as United
States notes...............................................................................................
171
Feb. 12,1873. Gold coins of United States legal tender............................................
170
Feb. 12,1873. Minor coins of United States legal tender to amount of twentyfive cents...................................................................................................
170
Feb. 28,1878. Standard silver dollars legal tender......................................................
170
Feb. 28,1878. Silver certificates........................................................................................
183
June 9,1879. Subsidiary silver coins legal tender to amount not exceeding
ten dollars.................................................................................................
170
Mar. 3,1887. Silver certificates........................................................................................
183
July 12,1882. Gold certificates, for what receivable.............................................. 171,186
July 1,1902. Philippine coinage.....................................................................................
170
Mar. 2,1903. Philippine coinage.....................................................................................
170
Mar. 14,1900. Currency act.................................................................................... 171,180-186
Mar. 4,1907. Amending national-bank act...................................................... 171,182,185
June 14,1866. Government depositories...................................................................... 172,173
June 8,1872. Government depositories..........................................................................
172
Mar. 3,1873. Government depositories..........................................................................
172
Feb. 27,1877. Government depositories..........................................................................
172
Feb. 3,1879. Government depositories..........................................................................
175
Mar. 2,1907. Government depositories..........................................................................
172
May 27,1908. Government depositories..........................................................................
172
Feb. 25,1863. Counterfeiting national-bank notes.......................................................
176
June 3,1864. Counterfeiting national-bank notes.......................................................
176

DATES OF ACTS DELATING TO NATIONAL BANKS.
Page,

June 30,1864. Forging or counterfeiting United States securities................... 176,177
June 30,1864. Using plates to print without authority......................................
176
Feb. 5,1867. Penalty for taking unauthorized impression of tools having
such impression or dealing in counterfeit circulation............
178
June 30,1876. Fraudulent notes to be so marked by United States officers and
officers of national banks.........................................................
179
Aug. 5,1909. Excise tax on corporations—superseded by income tax under
act of October 3,1913................... !.........................................
Aug. 5,1909. Panama Canal bonds, issue of, authorized at 3 per cent.............
186
Mar. 2,1911. Panama Canal bonds under act of August 5, 1909, Aot available
as security for circulation........................................................
187
Mar. 2,1911. Issue of gold certificates on deposit of foreign coin or bullion. 182,187
Mar. 2,1911. Certified checks drawn on national and State banks receivable
for duties on imports and internal taxes..................................
187
Mar. 3,1911. Jurisdiction of United States district courts...............................
165
Mar. 3,1913. Certified checks on national and State banks and trust com
panies receivable in payment for duties on imports, internal
taxes, and all public dues.......................................................
188
July 7,1916. Government deposits in Federal Land Banks..........................
174
April 24,1917. Deposit of proceeds arising from sale of bonds. No reserve re
quired to be held against United States deposits..................
174
SPECIAL ACTS RELATING TO NATIONAL BANKS.

Apr. 12,1900. National banking laws extended to Porto Rico..........................
191
Apr. 30,1900. National banking laws extended to Hawaii................................
191
Feb. 26,1913. Granting t ifth-Third National Bank of Cincinnati charter No. 20
Fifty-seven acts changing the location or name, or both, of various national
banks.......................................................................................................... 192-195

DATES OE ACTS RELATING TO NATIONAL BANKS.

DATES OF ACTS RELATING 10 NATIONAL BANKS.

THE NATIONAL-BANK ACT AND ACTS AMENDATORY THEREOF
AND SUPPLEMENTARY THERETO.
CHAPTER I.
BU R EAU OF TH E COMPTROLLER OF TH E CURRENCY.

100. 324. Bureau of the Comptroller of
the Currency.
101. 325. Comptroller oi the Currency.
102. 326. Qualification of Comptroller of
the Currency. Amount of
bond.
103. 327. Deputy Comptroller'of the Cur
rency.
104. Additional Deputy Comptroller of
the Currency.
105. 328. Clerks.
106. 329. Interest in national banks pro
hibited.
107. 330. Seal of Comptroller of the Cur
rency.
108. 331. Booms, vaults, and furniture
for Currency Bureau.

109. 332. Banks other than national in
District of Columbia. (See
sec. 714, Code District of
Columbia.)
110. 333. Report of comptroller.
111. Act April 28,1902. Report 9 f Comp
troller to give complete list
of all employees of the office,
information about failed
banks, employees under re
ceivers, etc.
112. Act January 12, 1895. Number of
copies of report to be printed.
113. Joint resolution March 4, 1907.
Three thousand additional
copies authorized to be
printed.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.
June
100. Sec. 324.— There shall be in the Department of the 1864
^Act, c.
^ 106
w, sec.
^ 31,;
Treasury a bureau charged with the execution of all laws 13 stat.T?, 99!
passed by Congress relating to the issue and regulation of im*sec.*io; 38
a national currency secured by United States bonds and, stat- L »m
under the general supervision of the Federal Reserve
Board, of all Federal reserve notes, the chief officer of
which bureau shall be called the* Comptroller of the Cur
rency and shall perform his duties under the general direc
tions of the Secretary of the Treasury.

COMPTROLLER OF THE CURRENCY.

101. Sec. 325.— The Comptroller of the Currency shall 18^* lo^ec.!*
be appointed by the President, on the recommendation of 13 stat*. L./99.
the Secretary of the Treasury, by and with the advice and isrefc. i30*sec. |
consent of the Senate, and shall hold his office for the is stat. l., 398.
term of five years unless sooner removed by the Presi
dent, upon reasons to be communicated by him to the
Senate; and he shall be entitled to a salary of five thou
sand dollars a year.
N o t e . —Section 10 of the Federal reserve act provides that the Comp
troller of the Currency shall be an ex officio member of the Federal
Reserve Board and shall, in addition to his salary as Comptroller,
receive the sum of $7,000 annually for his service on said board.

BUREAU OF TH E COMPTROLLER OF THE CURRENCY.

QUALIFICATION OF COMPTROLLER OF THE CURRENCY.
AMOUNT OF BOND.

1864*0. lOMec. i;
13

.*02. Sec. 326^— The Comptroller of the Currency shall,
slat, l.* 99.* ’ within fifteen days from the time of notice of his appoint
ment, take and subscribe the oath of office; and he shall
give to the United States a bond in the penalty of one
hundred thousand dollars, with not less than two respon
sible sureties, to be approved by the Secretary of the
Treasury, conditioned for the faithful discharge of the
duties of his office.
DEPUTY COMPTROLLER OF THE CURRENCY.
103. Sec. 327.— There shall be in the Bureau of the
’ Comptroller of the Currency a Deputy Comptroller of the
Currency, to be appointed by the Secretary, who shall be
entitled to a salary of two thousand five hundred dollars
a year, and who snail possess the power and perform the
duties attached by law to the office of Comptroller dur
ing a vacancy in the office or during the absence or ina
bility of the Comptroller. The Deputy Comptroller shall
also take the oath of office prescribed by the Constitution
and laws of the United States, and shall give a like bond
in the penalty of fifty thousand dollars.
N o t e . —The salary of the Deputy Comptroller has been fixed at
various amounts by different appropriation oills, as follows: Act March
3, 1875 (sundry civil bill), 18 Stat. L., 398, $3,000; act March 3, 1901,
31 Stat. L., 978, $2,800; act March 18, 1904, 33 Stat. L., 103, $3,000;
act February 3, 1905, 33 Stat. L., 649, and all subsequent acts, $3,500.

1864*0. loS^sec. i;

is slat,

99.*

ADDITIONAL DEPUTY COMPTROLLER OF THE CURRENCY.
Act May 22,
M08, 35 Stat. h ., ^

104. Deputy Comptroller, $3,500; Deputy Comptroller,
_ ,0 0 0 , who shall be appointed by the Secretary of the
1909?35 stat. l 4’ Treasury, and shall possess the power and perform the
mduties attached by law to the office of Comptroller dur
ing a vacancy in the office of Comptroller and Deputy
Comptroller or during the absence or inability 01 the
Comptroller and the Deputy Comptroller, and said assist
ant Deputy Comptroller shall give a like bond in the pen
alty of $50,000.
N o t e . —The additional Deputy Comptroller was first provided for
in the act of May 22, 1908.
CLERKS.

i864Ctc.io6nseec.i;

105. Sec. 328.— The Comptroller of the Currency shall
i3 siat.L/,ioo*. 'em ploy, from time to time, the necessary clerks, to be
appointed and classified by the Secretary of the Treas
ury, to discharge such duties as the Comptroller shall
direct.
INTEREST IN NATIONAL BANKS PROHIBITED.
i864Ctc. loHec. l*
106.
13 slat, l/ , loo*, ler or

Sec. 329.— It shall not be lawful for the Comptrolthe Deputy Comptroller of the Currency, either

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

directly or indirectly, to be interested in any association
issuing national currency under the laws of the United
States.
N o t e .— Section 10 of the Federal reserve act provides in part that
no member of the Federal Reserve Board shall be an officer 0 1 director
of any bank, banking institution, trust company, or Federal reserve
bank, nor hold *>tock in any bank, banking institution, or 4rust com
pany. As the Comptroller of the Currency is a member of the board,
he is thus prohibited irom being connected as an officer or shareholder
with any bank, banking institution, or trust company, whether State
or national. It would appear that under section 329 a Deputy Comp
troller of the Currency would be prohibited from being interested not
only in any national bank but in any State bank that should become
a member bank and a shaieholder in one of the Federal Reserve banks.

SEAL OF COMPTROLLER OF THE CURRENCY.

107. Sec. 330 [as amended 1875].— The seal devised by
the Comptroller of the Currency for his office, and approved by the Secretary of the Treasury, shall continue to
be the seal of office of the Comptroller, and may be renewed when necessary. A description of the seal, with
an impression thereof, and a certificate of approval by the
Secretary of the Treasury, shall be filed in the office of
the Secretary of State.
ROOMS, VAULTS,
BUREAU.

AND

FURNITURE

FOR

18mCc. loe^ec.!;
13 sta\ l .’ 100. '

18^Cc. m s stat'
l., h i

CURRENCY

108. Sec. 331.— There shall be assigned, from time to 18^ fc. i o m «c. 3;
time, to the Comptroller of the Currency, by the Secretary 13 stat. m ’
of the Treasury, suitable rooms in the Treasury building
for conducting the business of the Currency Bureau, con
taining safe and secure fireproof vaults, in which the
Comptroller shall deposit and safely keep all the plates
not necessarily in the possession of engravers or printers,
and other valuable things belonging to his department;
and the Comptroller shall from time to time furnish
the necessary furniture, stationery, fuel, lights, and other
proper conveniences for the transaction of the business of
of his office.
109. Sec. 332.—
Refers ent rely to banks other than national in the District of Colum
bia and is incorporated in section 714 of the Code of the District of
Columbia and has been repeatedly amended.

REPORT OF COMPTROLLER.

110. Sec. 333 [as amended 1875].— The Comptroller of
the Currency shall make an annual report to Congress, at
the commencement of its session, exhibiting—
First. A summary of the state and condition of every
association from which reports have been received the
preceding year, at the several 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 out-

18^ctsecJu6®. §
stat’. L ., 117/

isref sec.ebi; r?
stictL>tb* 18
1&75, c.sc; is stat;

L*'al7’

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

standing, 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 informa
tion in relation to such 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 toThanking
by which the system may be improved, and the security
of the holders of its notes and other creditors may be
increased.
Fourth. A statement exhibiting under appropriate
heads the resources and liabilities and condition of the
banks, banking companies, and savings banks organized
under the laws of the several States and Territories; such
information to be obtained by the Comptroller from the
reports made by such banks, banking companies, and
savings banks to the legislatures or officers of the different
States and Territories, and, where such reports can not
be obtained, the deficiency to be supplied from such other
authentic sources as mav be available.
Fifth. The names and compensation of the clerks em
ployed by him, and the whole amount of the expenses of
the banking department during the year.
COMPTROLLER TO GIVE COMPLETE LIST OF ALL EM
PLOYEES OF THE OFFICE, INFORMATION ABOUT
FAILED BANKS, EMPLOYEES, UNDER RECEIVERS,
ETC. ACT APRIL 28, 1902.

ie^ativ«,
executive, and juwonaLtfS20^tat’

l., 138.

HI* Provided, That for the fiscal year of nineteen hundred and two and thereafter, a full and complete list of
all officers, agents, clerks, and other employees of the
office of the Comptroller of the Currency, including bank
examiners, receivers and attorneys for receivers, and
clerks employed by such examiners and receivers, or any
other person connected with the work of said office in
Washington or elsewhere, whose salary or compensation
is paid from the Treasury of the United States or as
sessed against or collected from existing or failed banks
under their supervision or control, shall be transmitted to
the Secretary of the Interior in accordance with the pro
visions of an Act of Congress approved January twelfth,
eighteen hundred and eighty-five, relating to the Official
Register: And provided further, That the Comptroller of
the Currency is hereby directed to include in his Annual
Report to the Speaker of the House of Representatives,
expenses incurred during each year, in liquidation of each
failed national bank separately.
NUMBER OF COPIES OF REPORT TO BE PRINTED. ACT
OF JANUARY 12, 1895.

i895CtseJU73*
stat.L./ei6.’

®ec*
—This section provides in part that there
shall be printed “ Of the annual report of the Comp-

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

fcroller of the Currency, ten thousand copies; one thou
sand for the Senate, two thousand for the House, and
seven thousand for distribution by the Comptroller of the
Currency.
THREE THOUSAND ADDITIONAL COPIES AUTHORIZED
TO BE PRINTED.
PUBLIC RESOLUTION NO. 25,
MARCH 4, 1907.

113. That section 73 of an act “ Providing for the pub- M£ubj
lie printing and binding, and the distribution of public stat. l ’ , 1 4 2 5 ’.
docum ents/’ approved January 12,1895, be, and the same
is hereby, so amended as to authorize the printing annu
ally hereafter of ten thousand copies of the annual report
of the Comptroller of the Currency, for distribution by
the Comptroller of the Currency, instead of seven thou
sand copies as heretofore.

BUJEiEAU

THE COMPTKOLLEK

THE GUKltEXCl’.

BUREAU OP THE COMPTROLLER OP THE CURRENCY.

44326®—S. Doc. 412, 64-1----- 2

BUREAU OF THE COMPTROLLER OP THE CURRENCY.

BUREAU OF THE COMPTROLLEB OF THE CURRENCY.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

CHAPTER II.
ORGANIZATION AND POWERS.

200. Act

June 20, 1874. The nationalbank act.
201. 5133. Formation of national banking
associations.
202. 5134. Requisites of organization cer
tificate.
203. 5135. How certificate shall be ac
knowledged and filed.
204. 5136. Corporate powers of associa
tion.

205. Act December 23, 1913. Loans on
improved real estate.
206. Act December 23, 1913, and act
March 3, 1915. when na
tional bank as a member of
Federal reserve system may
accept drafts or bills of ex
change.
207. Act December 23, 1913. Power to
act as trustee, executor, ad
ministrator, or registrar of
stocks and bonds.
208. Act December -23, 1913. Foreign
branches.
209. Act May 1, 1886. Change of name
ana location.
210. Act May 1,1886. Debts not affected
by change.
211. Act May 1, 1886. No release from
liabilities.
212. Act August 13,1888. National banks
deemed citizens of states
in which located.
213. Act July 12, 1882. Extension of
corporate existence.
214. Act July 12, 1882. Consent of twothuds necessary.
215. Act July 12, 1882. Special exami
nation of bank and issue of
certificate of approval by
Comptroller.
216. Act July 12, 1882. Status not
changed by e x te n s io n .
Jurisdiction of suits by or
against national banks.
217. Act July 12,1882. Dissenting share
holders may withdraw.
218. Act July 12, 1882. Redemption of
circulating notes issued
prior to extension.
219. Act July 12, 1882. Dissolution of
banks not extending period
of succession.

Act April 12,1902. Re-extension of
corporate existence.
221 5137. Power to hold real property.
222. 5138. Requisite amount or capital.
223. 5139. Shares of stock and transfers.
224. 5140. How payment of capital stock
must be made and certified.
225. 5141. Proceedings if shareholder fails
to pay installments.
226. 5142. National banks may increase
capital stock.
227. Act May 1,1886. Increase of capital
stock.
228. 5143. Reduction of capital stock.
229. 5144. Right of shareholders to vote.
Proxies authorized
230. 5145. Election of directors.
231. 5146. Requisite qualification of di
rectors.
232. Act October 15. 1914, and May 15,
1916. Interlocking director
ates—when forbidden.
233. Act October 15^ 1914. Enforcement
of act in reference to inter
locking directorates.
234. 5147. Oath required from directors.
235. 5148. Filling vacancies.
236. 5149. Proceedings where no election
is held on the proper day.
237. 5150. Election of president of the
board.
238. 5151. Individual liability of share
holders.
Act December 23,1913. Individual
liability of shareholders,
liability of shareholders
who have transferred their

Bhares.

240. 5152. Executors, trustees, etc., not
personally liable.
241. 5153. National banking associations
to be depositaries of public
moneys.
242. Act December 23, 1913. Govern
ment deposits in Federal
reserve banks.
243. 5154. Conversion of state banks into
national banking associa
tions.
244. 5155. State banks having branches.
245. 5156. Reservation of rights of asso
ciations organized under act
of 1863.

ORGANIZATION AND POWERS.

THE NATIONAL BANK ACT. ACT JUNE 20, 1 S U .

1874*0 i^sec2?1 200. Sec. 1.—An act entitled “ An act to provide a na18 stat. l . ; 123* ' tional currency secured bv a pledge of United States
bonds, and to provide for the circulation and redemption
thereof,” approved June 3,1864, shall hereafter be known
as “ the national-bank act.”
FORMATION OF NATIONAL BANKING ASSOCIATIONS.

ism'c iwsU i
13 slat,

/, loo. '

201. Sec. 5138.—Associations for carrying on the business of banking under this Title may be formed by any
number of natural persons, not less in any case than five.
They shall enter into articles of association, which shall
specify in general terms the object for which the associa
tion is formed, and may contain any other provisions,
not inconsistent with law, which the association may see
fit to adopt for the regulation of its business and the con
duct of its affairs. These articles shall be signed by the.
persons uniting to form the association, ana a copy of
them shall be forwarded to the Comptroller of the Cur
rency, to be filed and preserved in his office.
REQUISITES OF ORGANIZATION CERTIFICATE.

uMe ioHec.5- ^02. Sec. 5134.— The persons uniting to form such an
13 slat, l.; id*. ’ association shall, under their hands, make an organization
certificate, which shall specifically state:
First. The name assumed b y such association; which
name shall be subject to the approval of the Comptroller
of the Currency.
Second. The place where its operations of discount and
deposit are to be carried on, designating the State, Terri
tory, or district, and the particular county and city, town,
or village.
Third. The amount of capital stock and the number of
shares into which the same is to be divided.
Fourth. The names and places of residence of the
shareholders and the number of shares held by each of
them.
Fifth. The fact that the certificate is made to enable
such persons to avail themselves of the advantages of
this Title.
N o t e . —For authority to change names or locations see act May 1,
1886, post, paragraph 209.

HOW CERTIFICATE SHALL BE ACKNOWLEDGED AND
FILED.

203.
Sec. 5135.—The organization certificate sha
waUtL.'ioi. ’ acknowledged before a judge of some court of record, or
notary public; and shafl be, together with the acknowl
edgment thereof, authenticated!^ the seal of such court,
or notary, transmitted to the Comptroller of the Cur
rency, who shall record and carefully preserve the same
in his office.

ORGANIZATION AND POWERS.

CORPORATE POWERS OF ASSOCIATION.

204. Sec. 5136. Upon duly making and filing articles 18^ctc
of association and an organization certificate, the asso- 13 slat,
ciation shall become, as from the date of the execution
of its organization certificate, a body corporate, and as
such, and in the name designated in the organization
certificate, it shall have power—
First. To adopt and use a corporate seal.
Second. To have succession for the period of twenty
years from its organization, unless it is sooner dissolved
according to the provisions of its articles of association,
or by the act of its shareholders owning two-thirds of its
stock, or unless its franchise becomes forfeited by some
violation of law.
Third. To make contracts.
Fourth. To sue and be sued, complain and defend, in
any court of law and equity, as fully as natural persons.
Fifth. To elect or appoint directors, and by its board
of directors to appoint a president, vice president, cashier,
and other officers, define their duties, require bonds of
them and fix the penalty thereof, dismiss such officers or
any of them at pleasure, and appoint others to fill their
places.
Sixth. To prescribe, by its board of directors, by-laws
not inconsistent with law, regulating the maimer in
which its stock shall be transferred, its directors elected
or appointed, its officers appointed, its property trans
ferred, its general business conducted, and the privileges
granted to it by law exercised and enjoyed.
Seventh. To exercise by its board of directors, or duly
authorized officers or agents, subject to law, all such inci
dental powers as shall be necessary to carry on the busi
ness of banking; by discounting and negotiating promis
sory 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 per
sonal security; and by obtaining, issuing, and circulating
notes according to the provisions of this Title.
But no association shall transact any business except
such as is incidental and necessarily preliminary to its
organization, until it has been authorized by the Comp
troller of the Currency to commence the business of
banking.
N o t e . —See sections 5169 and 5170, paragraphs 320 and 321, post,
relating to issuing and publishing of certificate authorizing associa
tion tobeginbusiness. See also section 5202, paragraph 429, post, rela
tive to rediscounts and acceptances and right of bank to act aa
insurance agent, and broker in procuring loans on real estate.

LOANS ON IMPROVED REAL ESTATE.

205. Sec. 24. Any national banking association not 19f^ sec
situated in a central reserve city may make loans secured stat'. l
by improved and unencumbered farm land situated i9i6?39
within its Federal reserve district or within a radius of 754*
one hundred miles of the place in which such bank is
located, irrespective of district lines, and may also make

ORGANIZATION AND FOWEBS.

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

20®* Any member bank m ay accept drafts or bills of
Stat". l., an.’
exchange drawn upon it having not more than six months’
uufu stat'. l*,’ sight to run, exclusive of days of grace, which grow out of
"Set s»pt 7 transactions involving the importation or exportation of
i»u; *e stat. l . ’, goods; or which grow out of transactions involving the
7<A ct ja n » 21, domestic shipment of goods provided shipping docu1917, see. t.
ments conveying or securing title are attached at the
time of acceptance; or which are secured at the time of
acceptance by a warehouse receipt or other such docu
ment conveying or securing title covering readily market
able staples. No member bank shall accept, whether in
a foreign or domestic transaction, for any one person,
company, firm, or corporation to an amount equal at any
time in the aggregate to more than ten per centum of its
paid-up and unimpaired capital stock and surplus, unless
the bank is secured either by attached documents or by
some other actual security growing out of the same trans
action as the acceptance; and no Dank shall accept such
bills to an amount equal at any time in the aggregate to
more than one-half of its paid-up and unimpaired capital
stock and surplus: Provided, however, That the Feaeral
Reserve Board, under sueh general regulations as it may
prescribe, which shall apply to all banks alike regardless
o f the amount of capital stock and surplus, may author
ize any member bank to accept such bills to an amount
not exceeding at anytime in the aggregate one hundred per
centum of its paid-up and unimpaired capital stock and sur
plus: Provided,further. That the aggregate of acceptances
growing out of domestic transactions shall in no event ex
ceed fifty per centum of such capital stock and surplus.

ORGANIZATION AND POWERS.

POWER TO ACT AS TRUSTEE, EXECUTOR, ADMINISTRA
TOR, OR REGISTRAR OF STOCKS AND BONDS.

207. The Federal Reserve Board is authorized by s e c - j^ g ,® ^ ^
tion 11, paragraph k; of the Federal reserve act:
stat. l . / m l ’
To grant by special permit to national banks apply
ing therefor, when not in contravention of State or local
law, the right to act as trustee, executor, administrator,
or registrar of stocks and bonds under such rules and
regulations as the said board may prescribe.
FOREIGN BRANCHES.

208. See. 25. Any national banking association possessing a capital and surplus of $1,000,000 or more may stat’. l .
’
file application with the Federal Reserve Board for per- me?s» stat ul
mission to exercise, upon such conditions and under su ch 7<a
regulations as may be prescribed by the said board, either
or both of the following powers:
First. To establish branches in foreign countries or
dependencies or insular possessions of the United States
for the furtherance of the foreign commerce of the United
States, and to act if required to do so as fiscal agents of
the United States.
Second. To invest an amount not exceeding in the
aggregate ten per centum of its paid-in capital stock and
surplus in the stock of one or more banks or corporations
chartered or incorporated under the lawB of the United
States or of- any State thereof, and principally engaged
in international or foreign banking, or banking in a de
pendency or insular possession of the United States either
directly or through the agency, ownership, or control of
local institutions m foreign countries, or m such depend
encies or insular possessions.
Such application shall specify the name and capital
of the banking association filing it, the powers applied for,
and the place or places where the banking operations pro
posed are to be carried on. The Federal Reserve Board
shall have power to approve or to reject such application
in whole or in part if for any reason the granting of such
application is deemed inexpedient, and shall also have
power from time to time to increase or decrease the
number of places where such banking operations may be
carried on.
Every national banking association operating foreign
branches shall be required to furnish information con
cerning the condition of such branches to the Comptroller
of the Currency upon demand, and every member bank
investing in the capital stock of banks or corporations
described under subparagraph two of the first paragraph
of this section shall be required to furnish information
concerning the condition of such banks or corporations
to the Federal Reserve Board upon demand, and the
Federal Reserve Board may order special examinations
of the said branohes, banks, or corporations at such time
or times as it may deem best.
Before any national bank shall be permitted to pur
chase stock in any such corporation the said corporation

ORGANIZATION AND POWEBS.

shall enter into an agreement or undertaking with the
Federal Reserve Board to restrict its operations or con
duct its business in such manner or under such limitations
and restrictions ad the said board m ay prescribe for the
place or places wherein such business is to be conducted.
If at any time the Federal Reserve Board shall ascertain
that the regulations prescribed b y it are not being com
plied with, said board is hereby authorized and empow
ered to institute an investigation of the matter and to
send for persons and papers, subpoena witnesses, and ad
minister oaths in order to satisfy itself as to the actual
nature of the transactions referred to. Should such in
vestigation result in establishing the failure of the cor
poration in question, or of the national bank or banks
which may be stockholders therein, to com ply with the
regulations laid down by the said Federal Reserve Board,
such national banks may be required to dispose of stock
holdings in the said corporation upon reasonable notice.
Every such national banking association shall conduct
the accounts of each foreign branch independently of the
accounts of other foreign oranches established by it and
of its home office, and snail at the end of each fiscal period
transfer to its general ledger the profit or loss accrued at
each branch as a separate item.
Any director or other officer, agent, or employee of
any member bank may, with the approval of the Federal
Reserve Board, be a director or other officer, agent, or
employee of any such bank or corporation above men
tioned in the capital stock of which such member bank
shall have invested as hereinbefore provided, without
being subject to the provisions of section eight of the Act
approved October fifteenth, nineteen hundred and four
teen, entitled ‘ ‘ An A ct to supplement existing laws against
unlawful restraints and monopolies, and for other pur
poses.”
CHANGE OF NAME AND LOCATION OF BANK. ACT MAT
1, 1886.

209. Sec. 8.—That any national banking association may
change its name or the place where its operations of dis
count and deposit are to be carried on, to any other place
within the same State, not more than thirty miles dis
tant, with the approval of the Comptroller of the Cur
rency, by the vote of shareholders owning two-thirds of
the stock of such association. A duly authenticated
notice of the vote and of the new name or location selected
shall be sent to the office of the Comptroller of the Cur
rency; but no change of name or location shall be valid
until the Comptroller shall have issued his certificate of
approval of the same.
DEBTS NOT AFFECTED BT CHANGE. ACT MAT 1, 1886.

210. Sec. 3.—That all debts, liabilities, rights, provisions,
and powers of the association under its old name shall
devolve upon and inure to the association under its new

ORGANIZATION AND POWERS.

NO RELEASE FROM LIABILITIES.

ACT MAT 1, 1880.

211. Sec. 4.—That nothing in this act contained shall be c
so construed as in any manner to release any national bank- stat/L., 19. ’
ing association under its old name or at its old location
from any liability, or affect any action or proceeding in
law in which said association may be or become a party
or interested.
N o t e . —Section 1 of this act relates to increase of capital stock and is
inserted after Section 5142, United States Revised Statutes.

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

212. Sec. 4.—That all national banking associations established under the laws of the United States shall, for the 554! '
purposes of all actions by or against them, real, personal, lg&fc. oSfsec.1!
or mixed, and all suits m equity, be deemed citizens o f 25
L«»436*
the States in which they are respectively located; and in
such cases the circuit and district courts shall not have
’urisdiction other than such as they would have in cases
between individual citizens of the same State. The
provisions of this section shall not be held to affect the
jurisdiction of the courts of the United States in cases
commenced by the United States or by direction of any
officer thereof, or cases for winding up the affairs of any
such bank.

N o t e . —See act March 3, 1911, section 24, 36 Stat. L., 1092, para
graph 701, post, as to jurisdiction of United States courts in national
banking cases.

EXTENSION OF CORPORATE EXISTENCE. ACT JULY 12,
1882.

213. Sec. 1.— That any national banking association 18^ c
organized under the acts of February twenty-fifth, eight- 22 slat, l.) 16 2 . '
een hundred and sixty-three, June third eighteen hundred
and sixty-four, and February fourteenth, eighteen hun
dred ana eighty, or under sections fifty-one hundred and
thirty-three, fifty-one hundred and tmrty-four, fifty-one
hundred and thirty-five, fifty-one hundred and thirty-six,
and fifty-one hundred and fifty-four of the Revised
Statutes of the United States, may, at any time within
the two years next previous to the date of the expiration
of its corporate existence under present law, and with the
approval of the Comptroller of the Currency, to be
granted, as hereinafter provided, extend its period of
succession by amending its articles of association for a
term of not more than twenty years from the expiration
of the period of succession named in said articles of asso
ciation, and shall have succession for such extended
period, unless sooner dissolved by the act of shareholders
owning two-thirds of its stock, or unless its franchise
becomes forfeited by some violation of law, or unless
hereafter modified or repealed.
N o t e . —Act of February 14, 1880, relates to the conversion of gold
banks into currency banks, and is inserted after Revised Statutes 5186.

ORGANIZATION AND POWEBS.

CONSENT OF TWO-THIRDS NECESSARY. ACT JULY 12,
1888.

is®?c-M^sec1! 1

214. Sec. 2.— That such amendment o f said articles of

22siat. l.; 162. ’ association shall be authorized by the consent in writing
of shareholders owning not less than two-thirds of the
capital stock of the association; and the board of direc
tors shall cause such consent to be certified under the seal
of the association, b y its president or cashier, to the
Comptroller of the Currency, accompanied by an appli
cation made b y the president or cashier for the approval
of the amended articles of association b y the Comp
troller; and such amended articles of association shall
not be valid until the Comptroller shall give to such asso
ciation a certificate under his hand and seal that the
association has complied with all the provisions required
to be complied with, and is authorized to have succession
for the extended period named in the amended articles of
association.
SPECIAL EXAMINATION OF BANK AND ISSUE OF CER
TIFICATE OF APPROVAL BY COMPTROLLER.
ACT
JULY 18, 1888.

uffll

215. Sec. 3.—That upon the receipt of the application

22siat. v.\188. ’ and certificate of the association provided for m the pre
ceding section, the Comptroller of the Currency snail
cause a special examination to be made, at the expense of
the association to determine its condition; and if after
such examination or otherwise it appears to him that
said association is in a satisfactory condition, he shall
grant his certificate of approval provided for in the pre
ceding section, or if it appears tnat the condition of said
association is not satisfactory, he shall withhold such
certificate of approval.
STATUS NOT CHANGED BY EXTENSION. JURISDICTION
OF SUITS BY OR AGAINST NATIONAL BANKS. ACT
JULY 18, 1888.

i882 c

2 2 s & t . l .’ las',

^16. Sec. 4.—That any association so extending the
’ period o f its succession shall continue to enjoy aQ the
rights and privileges and immunities granted and shall
continue to be subject to all the duties,liabilities, and re
strictions imposed by the Revised Statutes of the United
States and other acts having reference to national bank
ing associations, and it shall continue to be in all respects
the identical association it was before the extension of its
eriod of succession: Provided, however, That the jurisiction for suits hereafter brought b y or against any as
sociation established under any law providing for na
tional banking associations, except suits between them
and the United States, or its officers and agents, shall be
the same as, and not other than, the jurisdiction for suits
b y or against banks not organised under any law of the
United States which do or might do banking business
where such national banking associations m ay be doing
business when such suits m ay be begun: And all laws

ORGANIZATION AND POWEBS.

and ports of laws of the United States inconsistent with
this proviso be, and the same are hereby, repealed.
N ote.—See also act of August 13, 1888t relating to citizenship of
national banks and jurisdiction of the circuit and district courts,
paragraph 212, ante, and act of Mar. 3 . 1911 sec. 24, 36 Stat. L., 1092,
paragraph 701, post, as to jurisdiction of United States courts in national
banking cases.

DISSENTING SHAREHOLDERS MAT WITHDRAW.
JULY 18, 1882.

ACT

217. Sec. 5.—That when any national banking assooia- u
tion has amended its articles of association as provided 22
in this act, and the Comptroller has granted his certificate
of approval, any shareholder not assenting to such
amendment may give notice in writing to the directors,
within thirty days from the date of the certificate of ap
proval, of his desire to withdraw from said association,
m which case he shall be entitled to receive from said
banking association the value of the shares so held by
him, to be ascertained by an appraisal made by a com
mittee of three persons, one to be selected by such share
holder, one by the directors, and the third by the first
two; and in case the value so fixed shall not be satisfac
tory to any such shareholder, he may appeal to the Comp
troller of the Currency, wno shall cause a reappraisal
to be made, which shall be final and binding; and if said
reappraisal shall exceed the value fixed by said commit
tee, tiie bank shall pay the expenses of said reappraisal,
and otherwise the appellant shall pay said expenses; and
the value so ascertained and determined shall be deemed
to be a debt due, and be forthwith paid, to said share
holder from said bank; and the shares so surrendered
and appraised shall, after due notice, be sold at public
sale, within thirty days after the final appraisal provided
in this section: Provided, That in the organization of any
banking association intended to replace any existing
banking association, and retaining the name thereof, the
holders of stock in the expiring association shall be enti
tled to preference in the allotment of the shares of the
new association in proportion to the number of shares
held by them respectively in the expiring association.
REDEMPTION OF CIRCULATING NOTES ISSUED ^RIOR TO
EXTENSION. ACT JULY 12,188*.

218. Sec. 6.—That the circulating notes of any associa- io
tion so extending the period of its succession wnich shall 22
have been issued to it prior to such extension shall be re
deemed at the Treasury of the United States, as provided
in section three of the act of June twentieth, eighteen
hundred and seventy-four, entitled “ An act fixing the
amount of United States notes, providing for redistribu
tion of national bank currency, and for other purposes,”
and such notes when redeemed shall be forwarded to the
Comptroller of the Currency, and destroyed as now pro
vided by law; and at the end of three years from the date

ORGANIZATION AND POWERS*

o f the extension of the corporate existence of each bank
the association so extended shall deposit lawful money
with the Treasurer of the United States sufficient to re
deem the remainder of the circulation which was out
standing at the date of its extension, as provided in
sections fifty-two hundred and twenty-two, fifty-tw o
hundred and twenty-four, and fifty-two hundred and
twenty-five of the Kevised Statutes; and any gain that
may arise from the failure to present such circulating
notes for redemption shall inure to the benefit of the
United States; and from time to time, as such notes are
redeemed or lawful money deposited therefor as provided
herein, new circulating notes shall be issued as provided
by this act, bearing such devices, to be approved by the
Secretary of the Treasury, as shall make them readily
distinguishable from the circulating notes heretofore
issued: Provided however, That each banking associa
tion which shall obtain the benefit of this act shall reim
burse to the Treasury the cost of preparing the plate or
plates for such new circulating notes as shall be issued
to it.
N ote.—For Act of June 20, 1874, section 3, mentioned above,
see paragraph 416, jxxst. The destruction of bank notes by burning,
as provided in sections 5184, 5225, Revised Statutes, is superseded
by act of June 23,1874, paragraph 340, post, which requires bank notes
to be macerated.

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

219.
Sec. 7.—That national banking associations whose
*corporate existence has expired or shall hereafter expire,
ana which do not avail themselves of the provisions of
this act, shall be required to com ply with the provisions
of sections fifty-two hundred and twenty-one and fiftytwo hundred and twenty-two of the Revised Statutes m
same manner as if the shareholders had voted to go
into liquidation, as provided in section fifty-tw o hundred
and twenty of the Revised Statutes; and the provisions
o f sections fifty-two hundred and twenty-four and fiftytwo hundred and twenty-five of the Kevised Statutes
shall also be applicable to such associations, except as
modified by this act; and the franchise of such associa
tions is hereby extended for the sole purpose of liquidat
ing their affairs until such affairs are finally closed.
N ote.—Other sections of act of July 12, 1882.
Sec. 8.—[Relates to bond deposits and circulating notes.]

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

of gold coin. Inserted after section 5207.
Sec. 13.—(Relates to false certification of checks.] Follows Re
vised Statutes, section 5208.

ORGANIZATION AND POWERS.

RKBXTENSION OF CORPORATE EXISTENCE. ACT OF
APRIL 12, 1902.

220. That the Comptroller of the Currency is hereby 19^*
^
authorized, in the manner provided by, and under the stat. l . ’. k b .’
conditions and limitations of, the act 01 July 12, 1882, to
extend for a further period of twenty years the charter
of any national banking association extended under said
A ct which shall desire to continue its existence after the
expiration of its charter.
POWER TO HOLD REAL PROPERTY.

221. Sec. 6187.— A national banking association may
purchase, hold, and convey real estate for the following w s{«t. l.’, io7. ’
purposes, and for no others:
first. Such as shall be necessary for its immediate ac
commodation in the transaction of its business.
Second. Such as shall be mortgaged to it in good faith
by way of security 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 judg
ments, decrees, or mortgages held by the association, or
shall purchase to secure debts due to it.
But no such association shall hold the possession of any
real estate under mortgage, or the title and possession of
any real estate purchased to secure any debts due to it, for
a longer period than five years.
Note.—For power to loan on real estate see paragraph 205, ante.

REQUISITE AMOUNT OF CAPITAL.

222. Sec. 5138 [as amended 1900].—No association shall lgA<*
3,
be organized with a less capital than one hundred thou- is stat. l .’, mi. ’
sand dollars, except that banks with a capital of not less i«oo! c.«,<mc. io;
than fifty thousand dollars may, with the approval o f th e 31*“ *•k*48*
Secretary of the Treasury, be organized in any place the
population of which does not exceed six thousand inhabit
ants, and except that banks with a capital of not less
than twenty-five thousand dollars may, with the sanction
of the Secretary of the Treasury, be organized in any place
the population of which does not exceed three thousand
inhabitants. No association shall be organized in a city
the population of winch exceeds fifty thousand persons
with a capital of less than two hundred thousand dollars.
SHARES OF STOCK AND TRANSFERS.

223. Sec. 5139.—The capital stock of each association
1|’.
shall be divided into shares of one hundred dollars each, 13 stat. l!, 102. ’
and be deemed personal property, and transferable on the
books of the association in such manner as may be pre
scribed in the by-laws or articles o f association. Every
person becoming a shareholder by such transfer shall, in
proportion to his shares, succeed to all the rights and lia-

ORGANIZATION AND POWERS.

bilities of the prior holder of such shares; and no change
shall be made in the articles of association by which the
rights, remedies, or security of the existing creditors of
the association shall be impaired.
Nora.—See also section 23. Federal reserve act, following section
5151, United States Revised Statutes.
HOW PAYMENT OF THE CAPITAL STOCK MUST BE MADE
AND CERTIFIED.

i8M°c.io6Us»o.i4; 224. Sec. 5140.—A t least fifty per centum of the capital
13 stat. l.’, io3. ’ stock of every association shall be paid in before it shall
be authorized to commence business; and the remainder
of the capital stock of such association shall be paid in
installments of at least ten per centum each, on the whole
amount of the capital, as frequently as one installment
at the end o f each succeeding month from the time it
shall be authorized by the Comptroller of the Currency
to commence business; and the payment of each install
ment shall be certified to the Comptroller, under oath, by
the president or cashier of the association.
PROCEEDINGS IF SHAREHOLDER FAILS TO PAT INSTALL
MENTS.
i 8 M Cl i o 6 U s » o . i !

225. Sec. 5141.— Whenever any shareholder, or his as-

13 slat, l.’, los. signee, fails to pay any installment on the stock when the
same is required by tne preceding section to be paid, the
directors of such association may sell the stock of such
delinquent shareholder at public auction, having given
three weeks’ previous notice thereof in a newspaper pub
lished and oi general circulation in the city or county
where the association is located, or if no newspaper is
published in said city or county, then in a newspaper
published nearest thereto, to any person who will pay the
highest price therefor, to be not less than the amount then
due thereon, with the expenses of advertisement and sale;
and the excess, if any, shall be paid to the delinquent
shareholder. If no bidder can be found who will pay for
such stock the amount due thereon to the association, and
the cost of advertisement and sale, the amount previously
paid shall be forfeited to the association, and such stock
shall be sold as the directors may order, within six months
from the time of such forfeiture, and if not sold it shall be
canceled and deducted from the capital stock of the asso
ciation. If any such cancellation and reduction shall re
duce the capital of the association below the m in im u m of
capital required by law, the capital stock shall, within
thirty days from the date of such cancellation, be in
creased to the required amount; in default of which a
receiver may be appointed, according to the provisions
o f section fifty-two hundred and thirty-four, to dose up
the business of the association.

ORGANIZATION AND POWERS.

NATIONAL BANKS MAT INCREASE CAPITAL STOCK.

226. Sec. 5142.—Any association formed under this Title
may, by its articles of association, provide for an increase i3siat. l.*,io3. ’
of its capital from time to time, as may be deemed expe
dient, subject to the limitations of this Title. But the
maximum of such increase to be provided in the articles
of association shall be determined by the Comptroller of
the Currency; and no increase of capital shall be valid
until the whole amount of such increase is paid in, and
notice thereof has been transmitted to the Comptroller
of the Currency, and his certificate 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 capital of such association.
INCREASE OF CAPITAL STOCK. ACT MAT 1, 1886.

227. Sec. 1.—That any national banking association e.A$
may, with the approval of the Comptroller of the Cur- stat. * l., is.
rency, by the vote of shareholders owning two-thirds of
the stocK of such association, increase its capital stock, in
accordance with existing laws, to any sum approved by
the said Comptroller, notwithstanding the limit fixed in
its original articles of association and determined by said
Comptroller; and no increase of the capital stock of any
national banking association either within or beyond the
limit fixed in its original articles of association shall be
made except in the manner herein provided.

N o te .—F or other sections of this act see paragraphs 209, 210, and

211, ante.

REDUCTION OF CAPITAL STOCK.

228. Sec. 5143.—Any association formed under this title 18^ io??*.
may, by the vote of shareholders owning two-thirds of 13slat, l!, 103. '
its capital stock, reduce its capital to any sum not below
the amount required by this title to authorize the forma
tion of associations; but no such reduction shall be allow
able which will reduce the capital of the association below
the amount required for its outstanding circulation, nor
^
shall any reduction be made until the amount of the pro- stat'. l . , 274.’
posed reduction has been reported to the Comptroller of
the Currency and such reduction has been approved by
the said Comptroller of the Currency and by the Federal
Reserve Board, or by the organization committee pend
ing the organization of the Federal Reserve Board.
RIGHT OF SHAREHOLDERS TO YOTE; PROXIES AUTHOR
IZED.

229. Sec. 5144.— In all elections of directors, and in
deciding all questions at meetings of shareholders, each 13 stat. l.\ 102. *
sharehmder 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
44326°— S. Doc. 412, 64-1------3

ORGANIZATION AND P0WEB8.

bookkeeper of such association shall act as proxy; and
no shareholder whose liability is past due and unpaid
shall be allowed to vote.
N o t e .— The Circuit Court oi the United States, in United States « .
Barry (36 F. R., 246), held that the words “ liability past due and
unpaid” referred only to unpaid subscriptions for stock.

ELECTION OF DIRECTORS.

i8M°c lwsNs #’ 230- Sec. 5145.—The affairs of each association shall be
io; ’13 stat. l.’, managed by not less than five directors, who shall be
elected by the shareholders at a meeting to be held at any
time before the association is authorized by the Comp
troller'of the Currency to commence the business of bank
ing; and afterward at meetings to be held on such day in
January of each year as is specified therefor in the
articles of association. The directors shall hold office for
one year, and until their successors are elected and have
qualified.
REQUISITE QUALIFICATION OF DIRECTORS.

mmc. lofSJos.#’
Sec. 5146 [as amended 1905].— Every director must,
io: ’i3 sti*. l.’ during his whole term o f service, be a citizen of the
10Act F«b. 2s, United States, and at least three-fourths of the direcstat. l si*?’ *ors n*ust’ h&v® resided in the State, Territory, or District
‘
in which the association is located for at least one year
immediately preceding their election and must be resi
dents therein during their continuance in office. Every
director must own in his own right at least ten shares of
the capital stock of the association of which he is a di
rector, unless the capital of the bank shall not exceed
twenty-five thousand dollars, in which case he must own
in his own right at least five shares of such capital stock.
Any director who ceases to be the owner of the required
number of shares o f the stock, or who becomes in any
other manner disqualified, shall thereby vacate his place.
INTERLOCKING DIRECTORATES—WHEN FORBIDDEN.
mu* S«.ct8stat. l ., 732.’

^32. Sec. 8.—That from and after two years from the
date of the approval of this Act no person shall at the
same time be a director or other officer or employee of
more than one bank, banking association, or trust comorganized or operating under the laws of the United
Eany,
tates, either of which has deposits, capital, surplus, and

undivided profits aggregating more than $5,000,000; and
no private Danker or person who is a director in any bank
or trust company, organized and operating under the laws
o f a State, having deposits, capital, surplus, and undi
vided profits aggregating more than $5,000,000, 3hall be
eligible to be a director in any bank or banking associa
tion organized or operating under the laws of the United
States. The eligibility of a director, officer, or employee
under the foregoing provisions shall be determined by

ORGANIZATION AND POWEBS.

the average amount o f deposits, capital, surplus, and un
divided profits as shown in the official statements o f suoh
bank, banking association, or trust company filed as pro
vided by law during the fiscal year next preceding the
date set for the annual eleotion o f directors, and when a
director, officer, or employee has been elected or selected
in accordance with the provisions of this A ct it shall be
lawful for him to continue as such for one year thereafter
under said election or employment.
No bank, banking association, or trust company, or
ganized or operating under the laws of the United States,
in any city or incorporated town or village of more than
two hundred thousand inhabitants, as shown by the last
preceding decennial census of the United States, shall
nave as a director or other officer or employee any private
banker or any director or other officer or employee of
any other bank, banking association, or trust company
located in the same place: Provided, That nothing in this
section shall apply to mutual savings banks not having a
capital stock represented by shares: Provided further,
That a director or other officer or employee of such bank,
bankingassociation, or trust company may be a director or
other officer or employee of not more than one other bank
or trust company organized under the laws of the United
States or any State where the entire capital stock of one
is owned by stockholders in the other: And provided
further, That nothing contained in this section shall forbid
'a director of class A of a Federal reserve bank, as defined
in the Federal Reserve Act, from being an officer or
director or both an officer and director in one member
bank: And provided further, That nothing in this A ct 19^
shall prohibit any officer, director, or employee of any m. ’
member bank or class A director of a Federal reserve
bank, who shall first procure the consent of the Federal
Reserve Board, which board is hereby authorized, at its
discretion, to grant, withhold, or revoke such consent,
from being an officer, director, or employee of not more
than two other banks, banking associations, or trust
companies, whether organized under the laws of the
United States or any State, if such other bank, banking
association, or trust company is not in substantial com
petition with such member bank.
The consent of the Feder ’ "
™
procured before the person
elected as a class A director c
as a director of any member bank.
That from and after two years from the date of the
approval of this A ct no person at the same time shall be a
director in any two or more corporations, any one of
which has capital, surplus, and undivided profits aggre
gating more than 11,000,000, engaged in whole or in part
m commerce, other than banks, banking associations,
trust companies and common carriers subject to the
Act to regulate commerce, approved February fourth,

ORGANIZATION AND POWERS.

eighteen hundred and eighty-seven, if such corporations
are or shall fcyave been theretofore, by virtue of their
business and location of operation, competitors, so that
the elimination of competition by agreement between
them would constitute a violation of any of the provisions
of any of the antitrust laws. The eligibility of a director
under the foregoing provision shall be determined by the
aggregate amount o f the capital, surplus, and undivided
profits, exclusive of dividends declared but not paid to
stockholders, at the end of the fiscal year of said corpora
tion next preceding the election of directors, and when a
director has been elected in accordance with the provi
sions of this Act it shall be lawful for him to continue as
such for one year thereafter.
When any person elected or chosen as a director or
officer or selected as an employee of any bank or other
corporation subject to the provisions of this A ct is eligible
at the time of his election or selection to act for such bank
or other corporation in such capacity his eligibility to act
in such capacity shall not be affected and he shall not
become or oe deemed amenable to any of the provisions
hereof by reason of any change in the affairs of such bank
or other corporation from whatsoever cause, whether
specifically excepted by any of the provisions hereof or
not, until the expiration of one year from the date of his
election or employment.
ENFORCEMENT OF ACT IN REFERENCE TO INTERLOCK
ING DIRECTORATES. •

233. S ec. 11.—That authority to enforce compliance
with sections two, three, seven and eight of this Act by
the persons respectively subject thereto is hereby vested:
in the Interstate Commerce Commission where applicable
to common carriers, in the Federal Reserve Boara where
applicable to banks, banking associations and trust com
panies, and in the Federal Trade Commission where appli
cable to all other character of commerce, to be exercised
as follows:
Whenever the commission or board vested with juris
diction thereof shall have reason to believe that any
person is violating or has violated any of the provisions
of sections two, three, seven and eight of this Act, it shall
issue and serve upon such person a complaint stating its
charges in that respect, and containing a notice of a
hearing upon a day and at a place therem fixed at least
thirty days after the service of said complaint. The
person so complained of shall have the right to appear
at the place and time so fixed and show cause why an
order should not be entered by the commission or board
requiring such person to cease and desist from the vio
lation of the law so charged in said complaint. Any
person may make application, and upon good cause shown
may be allowed by the commission or board, to intervene

OBGANIZATION AND POWERS.

and appear in said proceeding by counsel or in person.
The testimony in any such proceeding shall be reduced to
writing and filed in the office of the commission or board.
If upon such hearing the commission or board, as the case
may be, shall be of the opinion that any of the provisions
of said sections have been or are being violated, it shall
make a report in writing in which it shall state its findings
as to the facts, and shall issue and cause to be served on
such person an order requiring such person to cease and
desist from such violations, and divest itself of the stock
held or rid itself of the directors chosen contrary to the
provisions of sections seven and eight of this Act, if any
there be, in the manner and within the time fixed by said
order. Until a transcript of the record in such hearing
shall have been filed in a circuit court of appeals of the
United States, as hereinafter provided, the commission
or board may at any time, upon such notice and in such
manner as it shall deem proper, m odify or set aside, in
whole or in part, any report or any order made or issued
by it under this section.
If such person fails or neglects to obey such order of
the commission or board while the same is in effect, the
commission or board may apply to the circuit court of
appeals of the United States, within any circuit where
tne violation complained of was or is being committed or
where such person resides or carries on business, for the
enforcement of its order, and shall certify and file with
its application a transcript of the entire record in the pro
ceeding, including all the testimony taken and the report
and order of the commission or board. Upon such filing
of the application and transcript the court shall cause
notice thereof to be served upon such person and there
upon shall have jurisdiction of the proceeding and of the
question determined therein, and shall have power to
make and enter upon the pleadings, testimony, and pro
ceedings set forth 'in such transcript a decree affirming,
modifying, or setting aside the order of the commission
or board. The findings of the commission or board as to
the facts, if supported by testimony, shall be conclusive.
If either party snail apply to the court for leave to adduce
additional evidence, and shall show to the satisfaction of
the court that such additional evidence is material and
that there were reasonable grounds for the failure to
adduce such evidence in the proceeding before the com
mission or board, the court may order such additional
evidence to be taken before the commission or board and
to be adduced upon the hearing in such manner and upon
such terms ana conditions as to the court may seem
proper. The commission or board may m odify its find
ings as to the facte, or make new findings, by reason of
the additional evidence so taken, and it shall file such
modified or new findings, which, if supported by testi
mony, shall be conclusive, and its recommendation, if any,
for toe modification or setting aside of its original order,

ORGANIZATION AND POWERS.

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

Mftfo. iocTsmJ;
234. See. 5147.— Each director, when appointed or
ustat. i*’ jol ’ elected, shall take an oath that he will, so far as the duty
devolves on him, diligently and honestly administer the
affairs of such association, and will not knowingly violate,

ORGANIZATION AND POWERS.

or willingly permit to be violated, any of the provisions
of this Title, and that he is the owner in good faith, and in
his own right, of the number of shares of stock required
by this Title, subscribed 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. Such oath, subscribed by the director mak
ing it, and certified by the officer before whom it is taken,
shall be immediately transmitted to the Comptroller 01
the Currency, and shall be filed and preserved in his Office.
FILLING TACANCIES.

235. Sec. 5148.—Any vacancy in the board shall be 18^otc
^
filled by appointment by the remaining directors, and 13 slat, l!, 102. ’
any director so appointed shall hold his place until the
next election.
PROCEEDINGS WHERE NO ELECTION IS HELD ON THE
PROPER DAT.

236. Sec. 5149.— If, from any cause, an election of directors is not made at the time appointed, the association 13 stat. l!,io 2. '
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 De published in a news
paper published nearest thereto. If the articles of asso
ciation do not fix the day on which the election shall be
held, or if no election is held on the day fixed, the day for
the election shall be designated by the board of directors
in their by-laws, or otherwise; or if the directors fail to
fix the day, shareholders representing two-thirds of the
shares may do so.
ELECTION OF PRESIDENT OF THE BOARD.

287. Sec. 5150.— One of the directors, to be chosen by
*•
13 siat. l.’ io£ ’
the board, shall be the president of the board.
INDIVIDUAL LIABILITY OF SHAREHOLDERS.

238. Sec. 5151.— The shareholders of every national
banking association shall be held individually responsi-13 stat. l ! ,
ble, equally and ratably, and not one for another, for all
contracts, debts, and engagements 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 determined 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

12-’
mb.

’

ORGANIZATION AND POWERS.

undiminished, and be in addition to the surplus provided
for in this Title; and if at any time there is a deficiency
in such surplus of twenty per centum, such association
shall not pay any dividends to its shareholders until the
deficiency is made good; and in case of such deficiency,
the Comptroller of the Currency may compel the associa
tion to close its business and wind up its affairs under the
provisions of chapter four a of this Title.
N o t e .— See act of June 30, 1876. paragraph 521, post, for enforce
ment of liability prescribed by tins section in cases of voluntary
liquidation.

INDIVIDUAL LIABILITY OF SHAREHOLDERS—LIABILITY
OF SHAREHOLDERS WHO HAYE TRANSFERRED THEIR
SHARES.
1913* sm I b*
stat’. L.,'273.’

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

i8wc.iwsec.©: 240. ®ec* 5152— Persons holding stock as executors, ad13 siat. hi, 118. ' ministrators, guardians, or trustees, shall not be person
ally 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 such trust-funds would be,
if living and competent to act and hold the stock in his
own name.
NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA
RIES OF PUBLIC MONEYS.

i8«c loe^sec. 45;

241. Sec. 5153 [as amended 1907].— All national banking
associations, designated for that purpose by the Secrec.'8n,MsM.3,iT^ tary of the Treasury, shall be depositaries of public
^ictMarVigor money> under such regulations as m ay be prescribed by
c. 2913, sec/3; 34 the Secretary; and they may also be employed as finanstat. l., 1290. cjaj agente 0f the Government; and they shall perform
all such reasonable duties, as depositaries of public money
13 siat. l/ , i i 3.

CJiapter 5 of this compilation.

ORGANIZATION AND POWERS.

and financial agents of the Government, as may be re
quired of them. The Secretary of the Treasury shall
require the associations thus designated to give satisfac
tory security, by the deposit of United States bonds and
otherwise, for the safe-keeping and prompt payment of
the public money deposited with them, ana for the faith
ful performance of their duties as financial agents of the
Government: Provided, That the Secretary shall,on or
before the first of January of each year, make a public
statement of the securities required during that year for
such deposits. And every association so designated as
receiver or depositary of tne public money shall take and
receive at par all of the national currency bills, by what
ever association issued, which have been paid into the
Government for internal revenue, or for loans or stocks:
Provided, That the Secretary of the Treasury shall dis
tribute the deposits herein provided for, as far as practi
cable, equitably between the different States and sections.
N o t e . —For other provisions relating to duties and liabilities of de
positaries see following sections of the Revised Statutes of the United
States:
Sec. 3640. Transfer of moneys from depositaries to Treasury author
ized.
Sec. 3641. Transfer of postal deposits.
Sec. 3642. Accounts of postal deposits.
Sec. 3643. Entry of each deposit, transfer, and payment.
Sec. 3644. Public moneys in Treasury and depositaries subject to
draft of Treasurer.
Sec. 3645. Regulations for presentment of drafts.
Sec. 3646. Duplicates for lost or stolen checks authorized.
Sec. 3647 and amendments. Duplicate check when officer who issued
is dead.
Sec. 3648 and amendments. Advances of public moneys prohibited.
Sec. 3649. Examination of depositaries.
See also Government Depositaries, paragraphs 730-736 post.

GOYEBNMENT DEPOSITS IN FEDERAL RESERVE BANKS.

242. Sec. 15.— The moneys held in the general fund of 1^ t a^ eG{s. ^
the Treasury, except the nve per centum fund for the stat. l . , 265. ’
redemption of outstanding national-bank notes and the
funds provided in this Act for the redemption of Federal
reserve notes may, upon the direction of the Secretary of
the Treasury, be deposited in Federal reserve banks, which
banks, when required by the Secretary of the Treasury,
shall act as fiscal agents of the United States; and the
revenues of the Government or any part thereof may be
deposited in such banks, and disbursements may be made
by checks drawn against such deposits.
No public funds of the Philippine Islands, or of the
postal savings, or any Government funds, shall be deN ote .—Section 7 of the act approved April 2 4 ,19 17 , known as “ An
act to authorize an issue of bonds to meet expenditures for the national
security and defense, and, for the purpose of assisting in the prosecu
tion of the war, to extent credit to foreign governments, and for other
purposes,** authorizes the Secretary to deposit proceeds of sale of such
bonds in nonmember banks under certain circumstances. For full
text of section 7 see page 168, post.

ORGANIZATION AND POWERS.

posited in the continental United States in any bank not
belongingto the system established b y this A c t: Provided,
however, That nothing in this A ct shall be construed to
deny the right of the Secretary of the Treasury to use
member banks as depositories.
CONYBBSION OP STATE BANES INTO NATIONAL BANEING ASSOCIATIONS.

4*>.

248. Sec. 5154;— Any bank incorporated b y special law

i ' of any State or of the United States or organized under

the general laws o f any State or of the United States and
having an unimpaired capital sufficient to entitle it to be
come a national banking association under the provisions
o f the existing laws may, by the vote of the shareholders
owning not less than fifty-one per centum of the capital
stock of such bank or banking association, with the ap
proval of the Comptroller of the Currency be converted
into a national banking association, with any name ap
proved by the Comptroller of the Currency:
Provided} however, That said conversion shall not be in
contravention of the State law. In such case the articles
of association and organization certificate m ay be exe
cuted by a m ajority o f the directors of the bank or bank
ing institution, ana the certificate shall declare that the
owners of fifty-one per centum of the capital stock have
authorized the directors to make such certificate and to
change or convert the bank or banking institution into a
national association. A m ajority of the directors, after
executing the articles of association and the organization
certificate, shall have power to execute all other papers
and to do whatever may be required to make its organiza
tion perfect and complete as a national association. The
shares of any such bank may continue to be for the same
amount each as they were before the conversion, and the
directors may continue to be directors of the association
Until others are elected or appointed in accordance with
the provisions of the statutes of the United States. When
the Comptroller has given to such bank or banking asso
ciation a certificate that the provisions of this A ct have
been complied with, such bank or banking association,
and all its stockholders, officers, and employees, shall
have the same powers and privileges, and shall be subject
to the same duties, liabilities, and regulations, in all re
spects, as shall have been prescribed by the Federal Re
serve A ct and by the national banking A ct for associa
tions originally organized as national banking associa
tions.
N ote .— The act of 1864 authorized any State bank which was a
stockholder in any other bank, by authority of State laws, to con
tinue to hold its stock, although either bank or both might have
become converted into national banks. This provision was incorpo
rated in section 5154, United States Revised Statutes, but was stricken
out in the revision ot this section by the act of December 23,1913.

ORGANIZATION AND POWEBS.

STATE BANKS BATING BRANCHES.

244. Sec. 5155.—It shall be lawful for any bank or
f.
banking association organized under State laws, and hav- u slat', l , *&L ’
ing branches, the capital being joint and assigned to and
used by the mother-bank and branches in definite propor
tions, to become a national banking association m con
form ity with existing laws, and to retain and keep in
operation its branches, or such one or more of them as it
may elect to retain; the amount of the circulation re
deemable at the mother-bank, and each branch, to be
regulated by the amount of capital assigned to and used
by each.
RESERVATION OF RIGHTS OF ASSOCIATIONS ORGANIZED
UNDER ACT OF 1863.

245. Sec. 5156.—Nothing in this Title shall affect any
£
appointments made, acts done, or proceedings had or
is stat. u ,
commenced prior to the third day of June, eighteen h u n -1I8*
dred and sixty-four, in or toward the organization of any
national banking association under the act of February
twenty-five, eighteen hundred and sixty-three; but all
associations which, on the third day oi June, eighteen
hundred and sixty-four, were organized or commenced to
be organized under that act, shall enjoy all the rights and
privileges granted, and be subject to all the duties, liabili
ties, and restrictions imposed by this Title, notwithstand
ing all the steps prescribed by this Title for the organiza
tion of associations were not pursued, if such associations
were duly organized under that act.

ORGANIZATION AND POWERS,

ORGANIZATION AND POWERS.

CHAPTER III.
OBTAINING AND ISSUING CIRCULATING NOTES.

300. 5157. What associations are gov
erned by provisions of chap
ters two, three, and four.
301. 5158. Registered bonds intended
by the term *4United States
bonds.”
302. Act December 23, 1913. Deposit of
bonds not required before
issuance of certificate au
thorizing the commence
ment of business.
303. Act December 2i, 1905. Two per
cent Panama Canal' bonds
have all rights and privi
leges accorded to other two
er cent bonds of the United
tates.
304. 5160. Increase or reduction of de
posit to correspond with
capital.
305. 5161. Excnange of coupon for regis
tered bonds.
306. 5162. Manner of making transfers of
bonds.
307. 5163. Registry of transfers.
308. 5164. Notice of transfer to be given
to association interested.
309. 5165. Examination of registry and
bonds.
310. 5166. Annual examination of bonds
by association.
311. 5167. General provisions respecting
bonds.
312. Act June 20, 1874. Withdrawal of
circulating notes on deposit
of lawful money and with
drawal of bonds.
313. Act July 12,1882. Amount of bonds
required to be on deposit;
reduction of amount or re
tirement in full of circulat
ing notes.
314. Act July 12, 1882, and act March 4,
1907. Limitation on with
drawal of bonds; consent of
Comptroller of Currency and
Secretary of the Treasury
necessary.
315. Act December 23,1913. Refunding
of bonds under Federal re
serve act; retirement of cir
culating notes.
316. Act December 23,1913. Purchase of
United States bonds by Fed
eral reserve banks.

44326°—S. Doc. 412, 64-1------4

317. Act December 23,1913. Issue of cir
culating notes to Federal re
serve banks on security of
United States bonds; circu
lating notes so issued obliga
tions of Federal reserve bank.
318. Act December 23, 1913. Issue of
Treasury gold notes of the
United States in exchange
for certain United States
bonds.
319. 5168. Comptroller to determine if
association can commence
business.
320. 5169. Certificate of authority to com
mence banking to be issued.
321. 5170. Publication of certificate.
322. 5171. Repealed by act August 12,
323. Act March 14, 1900. Delivery of
circulating notes.
324. 5172. Printing denominations and
form of the circulating notes.
325. Act June 20,1874. Charter number
to be printed on notes.
326. Act March 3,1875. Distinctive pa
per for printing notes.
327. 5173. Plates and dies to be under
control of the Comptroller;
expenses of Currency Bureau
to be paid out of proceeds of
taxes, or duties, assessed and
collected on the circulation
of national banking associa
tions.
328. 5174. Examination of plates and
dies.
329. 5175. Limit to issue of notes under
five dollars.
330. 5176. Repealed by act July 12,1882.
331. 5177. Repealed by act January 14,
1875.
332. Act January 14, 1875. Aggregate
amount of circulating notes
not limited.
333. 5178. Repealed by act January 14,
1875.
334. 5179. Repealed by act January 14,
1875.
335. 5180. Repealed by act January 14,
1875.
336. 5181. Repealed by act January 14,
1875.
337. 5182. For what demands nationalbank notes may be received.
49

OBTAINING AND ISSUING CIRCULATING NOTES.

338. 5183. Issue of post notes, etc., pro
hibited.
339. 5184. Destroying and replacing worn
out and mutilated notes.
340. Act June 23, 1874. Maceration of
national-bank notes.
341. 5185. Organization of associations to
issue gold notes.
342. 5186. Reserve requirements for gold
banks.
343. Act February 14, 1880. Conversion
of national gold banks into
currency banks.

344. 5187. Penalty for issuing circulat
ing notes to unauthorized
associations.
345. Act March 4, 1909, section 175, for
merly section 5188, Revised
Statutes. Penalty for imi
tating bank circulation. Use
of same for advertising pur
poses.
346. Act March 4, 1909; section 176, for
merly section 5189, Revised
Statutes. Penalty for muti
lating circulation.

WHAT ASSOCIATIONS ARE GOVERNED BY PROVISIONS
OP CHAPTERS TWO, THREE, AND POUR.

sec. 5157, r . s.

300 . Sec. 5157.—The provisions of chapters two, three,
and four a of this Title, which are expressed without re
strictive words, as applying to “ national banking associa
tions,” or to “ associations,” apply to all associations
organized to carry on the business of banking under any
act of Congress.
Note.—Federal reserve banks are not governed by this act, but by
the Federal reserve act.
REGISTERED BONDS INTENDED BY THE TERM “ UNITED
STATES BONDS.”

im t~AoB,Isec.4l

3QL Sec. 5158.—The term “ United States bonds,” as
lastat. l.’, loo*. ’ used throughout this chapter, shall be construed to mean
registered bonds of the United States.
DEPOSIT OF BONDS NOT REQUIRED BEFORE ISSUANCE
OF CERTIFICATE AUTHORIZING THE COMMENCE
MENT OF BUSINESS.

1913* sec!6^; ^

302. Sec. 17.— So much of the provisions of section
fifty-one hundred and fifty-nine of the Revised Statutes of
i9nfseeU
9?e Af the United States, and section four of the Act of June
twentieth, eighteen hundred and seventy-four, and sec
tion eight of the Act of July twelfth, eighteen hundred
and eighty-two, and of any other provisions of existing
statutes as reauire that before any national banking
association shall be authorized to commence banking
business it shall transfer and deliver to the Treasurer of
the United States a stated amount of United States
registered bonds, and so much of those provisions or of
any other provisions of existing statutes as require any
national banking association now or hereafter organized
to maintain a minimum deposit of such bonds with the
Treasurer is hereby repealed.
stat' l . 208. ’ ^

Note.—Section 5159 referred to above is as follows: “ Every associa
tion, after having complied with the provisions of this Title, preliminary
to the commencement of the banking business, and before it shall be
authorized to commence banking business under this Title, shall trans
fer and deliver to the Treasurer of the United States any United States
registered bonds, bearing interest, to an amount not less than thirty
thousand dollars and not less than one-third of the capital stock paid
in. Such bonds shall be received by the Treasurer upon deposit, and
shall be by him safely kept in his office, until they shall be otherwise
disposed of, in pursuance of the provisions of this title.” (See also
note under section 5160.)

° Chapters three, four, and five of this compilation.

OBTAINING AND ISSUSING CIRCULATING NOTES.
TWO PER CENT PANAMA CANAL RONDS HAVE ALL RIGHTS
AND PRIVILEGES ACCORDED TO OTHER TWO PER
CENT BONDS OP THE UNITED STATES. ACT DECEM
BER 21, 1905.

303. Sec. 1. That the two per cent bonds of the United
States authorized bv section eight of the A ct entitled “ An
A ct to provide for tne construction of a canal connecting
the waters of the Atlantic and Pacific oceans,” approved
June twenty-eight, nineteen hundred and two, shall have
all the rights and privileges accorded by law to other two
per cent bonds of the United States, and every national
banking association having on deposit, as provided by
law, such bonds issued under the provisions of said sec
tion eight of said A ct approved June twenty-eight, nine
teen hundred and two, to secure its circulating notes, shall
pay to the Treasurer of the United States, in the months
of January and July, a tax of one-fourth of one per cent
each half year upon the average amount of such of its
notes in circulation as are based upon the deposit of said
two per cent bonds; and such taxes shall be m lieu of ex
isting taxes on its notes in circulation imposed by section
fifty-two hundred and fourteen of the Revised Statutes.

sJ*ci ^
'

stat. l

N o t e . —Panama Canal bonds issued under act August 5, 1909, not
receivable as security for circulation. See paragraph 766, post.

INCREASE OR REDUCTION OF DEPOSIT TO CORRESPOND
WITH CAPITAL.

304. Sec. 5160.— [ The deposit of bonds made by each as- 18^ j
*•
sociation shall be increased as its capital may be paid up 13 stat. l!, 104. ’
or increased, so that every association shall at all times
have on deposit with the Treasurer registered United
States bonds to the amount of at least one4hird of its
capital stock actually paid in]. And any association that
may desire to reduce its capital or close up its business
ana dissolve its organization, may take up its bonds
upon returning to the Comptroller its circulating notes
in the proportion hereinafter required, or m a j take up
any excess of bonds beyond [one-third of its capital
stock], and upon which no circulating notes have been
delivered.
N o t e .—All provisions of law requiring national banking associa
tions to maintain a minimum deposit of bonds were repealed by the
act of June 21, 1917. Prior to tne passage of that act provisions of
sections 5159 and 5160 requiring national banks organized prior to
December 23, 1913, to deposit bonds to an amount not less than
$30,000 and not less than one-third of the capital stock paid in were
held to be modified by the acts of June 20,1874, and July 12,1882.
Section 4 of the act of June 20,1874, which follows section 5167, pro
vided in part that the amount of bonds on deposit for circulation
should not be reduced below $50,000. That fixed the amount of
bonds required to be deposited by national banks organized prior to
December 23, 1913, and having a capital of over $150,000. National
banks having a capital of $150,000 or less were not required to keep on
deposit bonds in excess of one-fourth of their capital stock as security
for their circulating notes by act of July 12,1882, chapter 290, section 8.
This act follows section 5167, Revised Statutes. All national banks
having a capital of $150,000 or less and organized prior to December 23,
1913, were required to keep on deposit bonds equal to one-fourth of their
capital stock, and if any bank of such capitalization organized since

OBTAINING AND ISSUING CIRCULATING NOTES.

December 23,1913, desired to take out circulation it was required to
deposit bonds in like amount as under the old law. Similarly ail banks
organized prior to December 23, 1913, with capital stock of over
$150,000 were required to keep on deposit bonds equal to $50,000, and
any bank of such capitalization organized since December 23,1913, if
it desire to take out circulation, was required to deposit bonds in that
amount.
Section 18 of the Federal Reserve act provides that after December
23, 1915, which is 2 years from the passage of that act, and at any
time during a period of 20 years thereafter, any member bank desir
ing to retire the whole or any part of its circulating notes, may file
with the Treasurer of the United States an application to sell for its
account, at par and accrued interest, United States bonds securing
circulation to be retired. This section further provides that the
Federal Reserve Board may, in its discretion, require the Federal Re
serve banks to purchase such bonds from the banks whose applications
have been filed with the Treasurer at least 10 days before tne end of
any quarterly period at which the Federal Reserve Board may direct
the purchase to be made: Provided, That Federal Reserve banks shall
not be permitted to purchase an amount to exceed $25,000,000 of such
bonds in any one year, and which amount shall include bonds acquired
under section 4 of that act by the Federal reserve bank.
EXCHANGE OF COUPON FOB REGISTERED BONDS.
i864?c.losjsec. 16;
13 stat. l . \ 104. '

Sec*. 5161— To facilitate a compliance with the
two preceding sections, the Secretary of the Treasury is
authorized to receive irom any association, 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 rim.
MANNEB OF MAKING TBANSFEBS OF BONDS.

ism?c.io!m®c. i9* 306. Sec. 5162.—All transfers of United States bonds,
13 stat. l ! , 105. made by any association under the provisions of this
Title, shall be made to the Treasurer of the United
States in trust for the association, with a memorandum
written or printed on each bond, and signed by the
cashier, or some other officer of the association making
the deposit. A receipt shall be given to the association,
by the Comptroller of the Currency, or by a clerk ap
pointed by him for that purpose, stating that the bond
is held in trust for the association on whose behalf the
transfer is made, and as security for the redemption
and payment of any circulating notes that have been or
may be delivered to such association. No assignment or
transfer of any such bond by the Treasurer shall be
deemed valid unless countersigned by the Comptroller
of the Currency.
BEGISTBT OF TBANSFEBS.

lswfc. lo^secs! 307. Sec. 5163.— The Comptroller of the Currency shall
ia-20; i3 S ta t.L .; keep in his Office a book in which he shall cause to be
entered, immediately upon countersigning it, every
transfer or assignment by the Treasurer oi any bonds
belonging to a national banking association, presented
for his signature. He shall state in such entry the name
o f the association from whose accounts the transfer is
made, the name of the party to whom it is made, and
>the par value of the bonds transferred.

OBTAINING AND ISSUING CIRCULATING NOTES.

NOTICE OF TRANSFER TO BE GITEN TO ASSOCIATION
INTERESTED.

308. Sec. 5164.—The Comptroller of the Currency shall, 18^c* 1(J“ £, $
immediately upon countersigning and entering any trans- 13 Stat. L.', 105. '
fer or assignment by the Treasurer, of any bonds belong
ing to a national banking association, advise by mail the
association from whose accounts the transfer is made, of
the kind and numerical designation of the bonds, and the
amount thereof so transferred,
EXAMINATION OF REGISTRY AND BONDS.

309. Sec. 5165.— The Comptroller of the Currency shall
have at all times, during office hours, access to the books i 3 S ta t.L !,io 5. '
of the Treasurer of the united States for the purpose of
ascertaining the correctness of any transfer or assignment
of the bonds deposited by an association, presented to the
Comptroller to countersign; and the Treasurer shall have
the like access to the book mentioned in section fifty-one
hundred and sixty-three, during office hours, to ascertain
the correctness 01 the entries in the sam e; and the Comp
troller shall also at all times have access to the bonds on
deposit with the Treasurer, to ascertain their amount and
condition.
ANNUAL EXAMINATION OF BONDS BY ASSOCIATION.

310. Sec. 5166.— Every association having bonds d e p o s - 1(J ^
ited in the office of the Treasurer of the United States i3 s ta t.L .’,io6. ’
shall, once or oftener in each fiscal year, examine and
compare the bonds pledged by the association with the
books of the Comptroller of the Currency and with the
accounts of the association, and, if they are found correct,
to execute to the Treasurer a certificate setting forth the
different kinds and the amounts thereof, and that the
same are in the possession and custody of the Treasurer
at the date of the certificate. Such examination shall be
made at such time or times, during the ordinary business
hours, as the Treasurer and the Comptroller, respectively,
m ay select, and may be made by an officer or agent of
such association, duly appointed in writing for that pur
pose; and his certificate before mentioned shall be of
like force and validity as if executed by the president or
cashier. A duplicate of such certificate, signed by the
Treasurer, shall be retained by the association.
GENERAL PROVISIONS RESPECTING BONDS.

311. Sec. 5167#— The bonds transferred to and d e -18^c*
posited with the Treasurer of the United States, by any 13 stat. l.', 107. ’
association, for the security of its circulating notes, shall
be held exclusively for that purpose, until such notes are
redeemed, except as provided in this Title. The Comp
troller of the Currency shall give to any such association
powers of attorney to receive and appropriate to its own
use the interest on the bonds which it has so transferred

OBTAINING AND ISSUING CIRCULATING NOTES.

to the Treasurer; but such powers shall become inopera
tive whenever such association fails to redeem its circu
lating notes. Whenever the market or cash value of any
bonds thus deposited with the Treasurer is reduced below
the amount of the circulation issued for the same, the
Comptroller may demand and receive the amount of such
depreciation in other United States bonds at cash value,
or in money, from the association, to be deposited with
the Treasurer as long as such depreciation continues.
And the Comptroller, upon the terms prescribed by the
Secretary of the Treasury, may permit an exchange to be
made of any of the bonds deposited with the Treasurer
by any association, for other bonds of the United States
authorized to be received as security for circulating notes,
if he is of opinion that such an exchange can be made
without prejudice to the United States; and he may
direct the return of any bonds to the association which
transferred the same, in sums of not less than one thou
sand dollars, upon the surrender to him and the cancella
tion of a proportionate amount of such circulating notes:
Provided, That the remaining bonds which shall have
been transferred by the association offering to surrender
circulating notes are equal to the amount required for the
circulating notes not surrendered by such association, and
that the amount of bonds in the hands of the Treasurer is
not diminished below the amount required to be kept on
deposit with him, and that there has been no failure by
the association to redeem its circulating notes, nor any
other violation by it of the provisions of this Title, ana
that the market or cash value of the remaining bonds is
not below the amount required for the circulation issued
for the same.
WITHDRAWAL OF CIRCULATING NOTES ON DEPOSIT OF
LAWFUL MONEY AND WITHDRAWAL OF BONDS. ACT
JUNE 20, 1874.

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

OBTAINING AND ISSUING CIRCULATING NOTES.
AMOUNT OF BONDS REQUIRED TO BE ON DEPOSIT; RE
DUCTION OF AMOUNT OR RETIREMENT IN FULL OF
CIRCULATING NOTES. ACT JULY 12, 1882.

313. Sec. 8.—That national banks now organized (or
hereafter organized), haying a capital of one hundred and
fifty thousand dollars, or less, shall not be required to
keep on deposit or deposit with the Treasurer of the
United States United States bonds in excess of onefourth of their capital stock as security for their circu
lating notes; but such banks shall keep on deposit or
deposit with the Treasurer of the United States the
amount of bonds as herein required. And such of those
banks having on deposit bonds in excess of that amount
are authorized to reduce their circulation by the deposit
of lawful money as provided by law; [provided. That the
amount oj such circulating notes shall not in any case
exceed ninety per centum o f the par value o f the bonds de
posited a# herein provided:] Provided further, That the
national banks which shall hereafter make deposits of
lawful money for the retirement in full of their circula
tion shall at the time of their deposit be assessed for
the cost of transporting and redeeming their notes then
outstanding, a sum equal to the average cost of the
redemption of national-bank notes during the preceding
year, and shall thereupon pay such assessment. And
all national banks which have heretofore made or shall
hereafter make deposits of lawful money for the reduc
tion of their circulation shall be assessed and shall pay
an assessment in the manner specified in section three
of the act approved June 20, 1874, for the cost of trans
porting and redeeming their notes redeemed from such
deposits subsequently to June 30, 1881.
N o t e .— The limitation of the circulation not to exceed ninety per
cent of the bonds deposited is superseded by act March 14,1900, which
follows Revised Statutes 5171. For act June 20, 1874, section 3, men
tioned in this section, see paragraph 416, post.
The requirement in this section, so far as it refers to banks “ hereafter
organized,” is repealed by section 17 of the Federal reserve act.

LIMITATION ON WITHDRAWAL OF BONDS—CONSENT OF
COMPTROLLER OF CURRENCY AND SECRETARY OF
THE TREASURY NECESSARY.

314. Sec. 9.—That any national banking association
now organized, or hereafter organized, desiring to with
draw its circulating notes, upon a deposit of lawful money
with the Treasurer of the united States, as provided in
section four of the Act of June twentieth^ eighteen hun
dred and seventy-four, or as provided in this Act, is
authorized to deposit lawful money and, with the consent
of the Comptroller of the Currency and the approval of
the Secretary of the Treasury, witndraw a proportionate
amount of the bonds held as security for its circulating
notes in the order of such deposits: Provided, That not
more than nine millions of dollars of lawful money shall
be deposited during any calendar month for this purpose:

OBTAINING AND ISSUING CIBCULATTNG NOTES.

And provided further, That the provisions of this section

shall not apply to bonds called for redemption by the
Secretary of the Treasury, nor to withdrawal of circulating
notes in consequence thereof.
REFUNDING OF BONDS UNDER THE FEDERAL RESERVE
ACT; RETIREMENT OF CIRCULATING NOTES.

815. Sec. 18.— After two years from the passage of this
A ct, and at any time during a period of twenty years
thereafter, any member bank desiring to retire the whole
or any part of its circulating notes, may file with the
Treasurer of the United States an application to sell for
its account, at par and accrued interest, United States
bonds securing circulation to be retired.
PURCHASE OF UNITED STATES BONDS BT FEDERAL
RESERVE BANKS.

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

817. The Federal reserve banks purchasing such bonds
shall be permitted to take out an amount of circulating
notes equal to the par value of such bonds.
Upon the deposit with the Treasurer of the United
States of bonds so purchased, or any bonds with the cir-

OBTAINING AND ISSUING CIRCULATING NOTES.

dilating privilege acquired under section four of this A ct,
any Federal reserve bank making such deposit in the man
ner provided by existing law, shall be entitled to receive
from the Comptroller of the Currency circulating notes in
blank, registered and countersigned as provided by law,
equal in amount to the par value of the bonds so deposited.
Such notes shall be the obligations of the Federal reserve
bank procuring the same, and shall be in form prescribed
by the Secretary of the Treasury, and to the same tenor
arid effect as national bank notes now provided by law.
They shall be issued and redeemed under the same terms
and conditions as national-bank notes except that they
shall not be limited to the amount of the capital stock of
the Federal reserve bank issuing them.
ISSUE OF TREASURY GOLD NOTES OF THE UNITED
STATES IN EXCHANGE FOR CERTAIN UNITED STATES
BONDS.

318. Upon application of any Federal reserve bank, ap- j,^01S(J0Cj8.^
proved by the Federal Reserve Board, the Secretary of stat’. l „ m ’
the Treasury mav issue, in exchange for United States two
er centum gold bonds bearing the circulation privilege,
ut against which no circulation is outstanding, one-year
gold notes of the United States without the circulation
privilege, to an amount not to exceed one-half of the two
per centum bonds so tendered for exchange, and thirtyyear three per centum gold bonds without the circulation
privilege for the remainder of the two per centum bonds
so tendered: Provided, That at the time of such exchange
the Federal reserve bank obtaining such one-year gold
notes shall enter into an obligation with the Secretary of
the Treasury binding itself to purchase from the United
States for gold at the maturity of such one-year notes, an
amount equal to those delivered in exchange for such
bonds, if so requested by the Secretary, and at each ma
turity of one-year notes so purchased by such Federal
reserve bank, to purchase from the United. States such an
amount of one-year notes as the Secretary may tender
to such bank, not to exceed the amount issued to such
bank in the first instance, in exchange for the two per
centum United States gold bonds; said obligation to pur
chase at maturity such notes shall continue in force for a
period not to exceed thirty years.
For the purpose of making the exchange herein pro
vided for, the Secretary of the Treasury is authorized to
issue at par Treasury notes in coupon or registered form
as he may prescribe in denominations of one hundred
dollars, or any multiple thereof, bearing interest at the
rate of three per centum per annum, payable quarterly,
such Treasury notes to be payable not more than one
year from the date of their issue in gold coin of the
present standard value, and to be exempt as to principal
and interest from the payment of all taxes and duties of
the United States except as provided by this A ct, as well

OBTAINING AND ISSUING CIRCULATING NOTES.

as from taxes in any form by or under State, municipal,
or local authorities. And for the same purpose, the Secre
tary is authorized and empowered to issue United States
gold bonds at par, bearing three per centum interest pay
able thirty years from date of issue, such bonds to be of
the same general tenor and effect and to be issued under
the same general term s.and conditions as the United
States three per centum bonds without the circulation
privilege now issued and outstanding.
Upon application of any Federal reserve bank, ap
proved by the Federal Reserve Board, the Secretary may
issue at par such three per centum bonds in exchange for
the one-year gold notes herein provided for.
COMPTROLLER TO DETERMINE IF ASSOCIATION CAN
COMMENCE BUSINESS.

lswc.iwsec.if; 319. Sec. 5168.— Whenever a certificate is transmitted
13 slat, l ! , io 4. ' to the Comptroller of the Currency, as provided in this
Title, and the association transmitting the same notifies
the Comptroller that at least fifty per centum of its capi
tal stock has been duly paid in, and that such association
has complied with all the provisions of this Title required
to be complied with before an association shall be author
ized to commence the business of banking, the Comp
troller shall examine into the condition of such associa
tion, ascertain especially the amount of money paid in on
account of its capital, the name and place of residence of
each of its directors, and the amount of the capital stock
of which each is the owner in good faith, and generally
whether such association has complied with all the pro
visions of this Title required to entitle it to engage in
the business of banking; and shall cause to be made and
attested by the oaths of a m ajority of the directors, and
bv the president or cashier of tne association, a statement
of all the facts necessary to enable the Comptroller to
determine whether the association is lawfully entitled to
commence the business of banking.
CERTIFICATE OF AUTHORITY TO COMMENCE BANKING
TO BE ISSUED.

i864*c. iS?0se<»!
12, i&; i*3 stat. l . ’

108,104.

320. Sec. 5169.— If, upon a careful examination of the
facts so reported, and of any other facts which may come
to the knowledge of the Comptroller, whether by means of
a special commission appointed by him for the purpose
of inquiring into the condition of such association, or oth
erwise, it appears that such association is lawfully 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 required to be complied with before com
mencing the business of banking, and that such association
is authorized to commence such business. But the
Comptroller may withhold from an association his certifi-

OBTAINING AND ISSUING CIRCULATING NOTES.

cate authorizing the commencement of business, whenever
he has reason to suppose that the shareholders have
formed the same for any other than the legitimate objects
contemplated by this Title.
PUBLICATION OF CEBTIFICATE.

321. Sec. 5170.— The association shall cause the certificate issued under the preceding section to be published in 13 stat. l.\ hh.
some newspaper printed in the city or county where the
association is located, for at least sixty days next after the
issuing thereof; or, if no newspaper is published in such
city or county, then in the newspaper published nearest
thereto.
322. Sec. 5171.—
This sectioD was originally section 21 of the act of June 3,1864. It
was amended by the act of March 3, 1865, and was later incorporated
in the Revised Statutes as section 5171. This section was repealed by
the act of July 12, 1882, and the repealing section was superseded
by section 12 of the act of March 14 1900 which follows*
DELIVERY OF CIBCULATING NOTES.
1900.

ACT OF MABCH 14,

323. Sec. 12.—That upon the deposit with the Treasurer
cMJf* *£
of the United States, by any national banking association, 12; Sistat. t., 49.
of any bonds of the United States in the manner provided
by existing law, such association shall be entitled to re
ceive from the Comptroller of the Currency circulating
notes in blank, registered and countersigned, as provided
by law, equal in amount to the par value of the Ibonds so
deposited; and any national banking associations now
having bonds on deposit for the security of circulating
notes, and upon which an amount of circulating notes has
been issued less than the par value of the bonds, shall be
entitled, upon due application to the Comptroller of the
Currency, to receive additional circulating notes in blank
to an amount which will increase the circulating notes held
by such association to the par value of the bonds depos
ited, such additional notes to be held and treated in the
same way as circulating notes of national banking associa
tions heretofore issued, and subject to all the provisions
of law affecting such notes: Provided, That nothing herein
contained shall be construed to m odify or repeal the pro
visions of section fifty-one hundred and sixty-seven o f the
Revised Statutes of the United States, authorizing the
Comptroller of the Currency to require additional deposits
of bonds or of lawful money in case the market value of
the bonds held to secure the circulating notes shall fall
below the par value of the circulating notes outstanding
for which such bonds may be deposited as security: And
provided further, That the circulating notes furnished to
national banking associations under the provisions of this
Act shall be of the denominations prescribed by law, ex-

OBTAINING AND ISSUING CIRCULATING NOTES.

cept that no national banking association shall, after the
passage of this Act, be entitled to receive from the Comp
troller of the Currency, or to issue or reissue or place in
. circulation, more than one-third in amount of its circulat
ing notes of the denomination of five dollars: And pro-'
vided further, That the total amount of such notes issued
to any such association may equal at any time but ahall
not exceed the amount at such time of its capital stock
actually paid in: And provided further, That under regu
lations to be prescribed by the Secretary of the Treasury
any national banking association m ay substitute the two
per centum bonds issued under the provisions of this A ct
for any of the bonds deposited with the Treasurer to se
cure circulation or to secure deposits of public money ; and
so much of an A ct entitled “ An A ct to enable national
banking associations to extend their corporate existence,
and for other purposes, ” approved July twelfth, eighteen
hundred and eighty-two, as prohibits any national bank
which makes any deposit of lawful money in order to
withdraw its circulating notes from receiving any increase
of its circulation for the period of six months from the time
it made such deposit of lawful money for the purpose
aforesaid, is hereby repealed, and all other Acts or parts
of Acts inconsistent with the provisions of this section are
hereby repealed.
PRINTING DENOMINATIONS AND FORM OF THE CIRCU
LATING NOTES.

i8w?c. m»®sii

324. Sec. 5172.—In order to furnish suitable notes for

2$ ’i3‘ stat l.\ circulation, the Comptroller of the Currency shall, under
the direction of the Secretary of the Treasury, cause plates
and dies to be engraved, in the best manner to guard
against counterfeiting and fraudulent alterations, and
snail have printed therefrom, and numbered, such quan
tity of circulating notes in blank, of the denominations of
one dollar, two dollars, three dollars, five dollars, ten dol
lars, twenty dollars, fifty dollars, one hundred dollars, five
hundred dollars, and one thousand dollars, as may be re
quired to supply the associations entitled to receive the
same. Such notes shall express upon their face that they
are secured by United States bonds, deposited with the
Treasurer of the United States, by the written or engraved
signatures of the Treasurer and Register, and by the im
print 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 vice president and cashier; and shall bear
such devices and such other statements, and shall be
in such form as the Secretary of the Treasury shall, by
regulation, direct.
N o te . —Sec. 5175, U. S. R. S., provides that after the resumption of
specie payments (Jan. 1,1879) no association was to be furnished with
motes of a less denomination than five dollars.

OBTAINING AND ISSUING CIRCULATING NOTES.
CHAKTEB NUMBER TO BE PRINTED ON NOTES.
JUNE 20, 1874.

ACT

325. Sec. 5.— That the Comptroller of the Currency 18^*c
shall, under such rules and regulations as the Secretary is sUt. l .| m. ’
of the Treasury may prescribe, cause the charter-numbers
of the association to be printed upon all national-bank
notes which may be hereafter issued by him.
N o t e .—Other sections of this act will be found in note under para
graphs 401 and 402, post.

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

326. Sec. 1.—* * * That the national-bank notes c ^ M|£3,i.87j£
shall be printed under the direction of the Secretary of stat. i.. 37$sunthe Treasury, and upon the distinctive or special paper ^
which has been, or may hereafter be, adopted by him for
printing United States notes.
PLATES AND DIES TO BE UNDER THE CONTROL OF THE
COMPTROLLER. EXPENSES OF CURRENCY BUREAU
TO BE PAID OUT OF PROCEEDS OF TAXES, OR DUTIES,
ASSESSED AND COLLECTED ON THE CIRCULATION OF
NATIONAL BANKING ASSOCIATIONS.

327. Sec. 5173.—The plates and special dies to be pro- 18^
cured by the Comptroller of the Currency for the print- 13 sfat. l!, ni. *
ing of such circulating notes shall remain under his con
trol and direction, ana the expenses necessarily incurred
in executing the laws respecting the procuring of such
notes, and all other expenses of the Bureau o f the Cur
rency, shall be paid out of the proceeds of the taxes or
duties assessed and collected on tine circulation of national
banking associations under this Title.
N o t e .—See act June 20,1874, paragraph 416, post, and act July 12,
1882, paragraph 218, ante, requiring banks to pay cost of their plates.
On April 30, 1914, at the request of the Comptroller of the Currency,
the Secretary of the Treasury designated the Director of Bureau of
Engraving and Printing as custodian of the dies, rolls, and plates,
etc., used for the printing of circulating notes of the Federal reserve
and national banks.

EXAMINATION OF PLATES AND DIES.

328. Sec. 5174 [as amended 1877].—The Comptroller of C
the Currency shall cause to be examined, each year, the stat. i.,m . ’
plates, dies, bed pieces, and other material from which the i8^c.«9;ewstat!
national-bank circulation is printed, in whole or in part, L*»**■
and file in his office annually a correct list of the same.
Such material as shall have been used in the printing of
the notes of associations which are in liquidation, or have
closed business, shall be destroyed, under such regulations
as shall be prescribed by the Comptroller of the Currency
and approved by the Secretary of the Treasury. The ex
penses of any such examination or destruction shall be
paid out of any appropriation made by Congress for the
special examination of national banks ana bank-note
plates.

OBTAINING AND ISSUING CIRCULATING NOTES.
LIMIT TO ISSUE OF NOTES UNDER FITE DOLLARS.

i8w°c.io6/8ec. 22; 329. Sec. 5175.—Not more than one-sixth part of the
13 stat. l.’, 106. ' notes furnished to any association shall be ot a less de
nomination than five dollars. After specie payments are
resumed no association shall be furnished with notes of
a less denomination than five dollars.
No b .— Specie payments were resumed January 1, 1879. (See
act of Marcn 14, 1900, section 12, following Revised Statutes, 5171
limiting the issue of five-dollar notes.)

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

331. Sec. 5177.—
Repealed by act January 14, 1875.
AGGREGATE AMOUNT OF CIRCULATING NOTES NOT
LIMFTED. ACT JANUARY 14, 1875.

1875*0 lfa*.1*; 332. Sec. 3.— That section 5177 of the Revised Statutes
is stat. hi, 29f>. * of the United States, limiting the aggregate amount of
circulating notes of national banking associations, be and
is hereby, repealed; and each existing banking association
may increase its circulating notes in accordance with ex
isting law without respect to said aggregate lim it; and
new banking associations may be organized in accord
ance with existing law without respect to said aggregate
lim it; and the provisions of law for the withdrawal and
redistribution of national bank currency among the sev
eral States and Territories are hereby repealed,
333. Sec. 5178.—
Repealed by act January 14,1875.

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

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

336. Sec. 5181.—
Repealed by act January 14, 1875.
FOR WHAT DEMANDS NATIONAL-BANK NOTES
BE RECEIVED.

MAY

isg^c. loc^sec.23; ?37. Sec. 5182.—After any association receiving circu13 stat. l !, 106. ' lating notes under this Title has 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 de
mand, at its place of business, such association may issue

OBTAINING AND ISSUING CIRCULATING NOTES.

and circulate the same as money. And the same shall be
received at par in all parts of the United States in pay
ment of taxes, excises, public lands, and all other dues
to the United States, except duties on imports; and also
for all salaries and other debts and demands owing by
the United States to individuals, corporations, and asso
ciations within the United States, except interest on the
public debt, and in redemption 01 the national currency.
ISSUE OF POST NOTES, ETC., PROHIBITED.

338. Sec. 5183 [as amended 1875].— No national banking
association shall issue post notes or any other notes to i3s{at.L.'io6.
circulate as money than such as are authorized by the ls^c.soasstat’
provisions of this Title.
L.,320.
DESTBOTING AND BEPLACING WOBN-OUT AND MUTI
LATED NOTES.

339. Sec. 5184.— It shall be the duty of the Comptroller 18^c*
of the Currency to receive worn-out or mutilated circu- wsiat. l.’,io6. ’
lating notes issued by any banking association, and also,
on due proof of the destruction of any such circulating
notes, to deliver in place thereof to the association other
blank circulating notes to an equal amount. Such wornout or mutilated notes, after a memorandum has been
entered in the proper books, in accordance with such reg
ulations as may be established by the Comptroller, as well
as all circulating notes which shall have been paid or sur
rendered to be canceled, [shall be burned to ashes] in
presence of four persons, one to be appointed by the Sec
retary of the Treasury, one by the Comptroller of the
Currency, one by the Treasurer of the United States, and
one b y the association, under such regulations as the Sec
retary of the Treasury may prescribe. A certificate 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
canceled.
N o t e .— Act June 23, 1874, provides for maceration in place o f

burning.
MACEBATION OF NATIONAL BANK NOTES.
23, 1874.

ACT JUNE

340. * * * For the maceration of national bank s^ ry isii?ii a£
notes * * * ; and that all such issues hereafter de- proprlation act
stroyed may be destroyed by maceration instead of bum - ^sec.i; J stat*.
ing to ashes, as now provided by law; and that so much L »206*
of sections twenty-four and forty-three of the national
currency act as requires national bank notes to be burned
to ashes is hereby repealed; that the pulp from such mac
erated issue shall be disposed of only under the direction
of the Secretary of the Treasury.

OBTAINING AND ISSUING CIRCULATING NOTES.
ORGANIZATION
NOTES.

OF ASSOCIATIONS

ISSUE

GOLD

is™o
c1!
341. Sec. 5185 [as amended 1875].— Associations m ay be
i6s{st.L.’, 352. ’ organized in the manner prescribed by this Title for the
1875%.19“ 'stat. purpose of issuing notes payable in gold; and upon the
L-»®02deposit of any United States bonds bearing interest pay
able in gold with the Treasurer of the United States, in
the manner prescribed for other associations, it shall be
lawful for the Comptroller of the Currency to issue to
the association making the deposit circulating notes of
different denominations, but none of them less than
five dollars, and not exceeding in amount eighty per
centum of the par value of the bonds deposited, which
shall express the promise of the association to pay them,
upon presentation at the office at which they are issued, in
gold coin of the United States, and shall be so redeemable.
(But no such association shau have a circulation o f more
than one m illion o f dollars.)
N o t e . — The limitation of circulation of banking associations issuing
notes payable in gold was repealed by the act of January 19, 1875.

RESERVE REQUIREMENTS FOR GOLD BANKS.

TO?c.

8- 5:

2521

stat. l . ’

842. Sec. 5186.— Every association organized under the
preceding section shall at all times keep on hand not less
than twenty-five per centum of its outstanding circulation? in gold or silver coin of the United States; and shall
receive at par in the payment of debts the gold notes of
every other such association which at the time of such
payment is redeeming its circulating notes in gold coin
of the United States, and shall be subject to all the pro
visions of this T itle: Provided, That, in applying the
same to associations organized for issuing gold notes, the
terms “ lawful m oney” and “ lawful money of the United
States” shall be construed to mean gold or silver com of
the United States; and the circulation of such association
shall not be within the limitation of circulation mentioned
in this Title.
CONVERSION OF NATIONAL GOLD BANKS INTO CUR
RENCY BANKS. ACT FEBRUARY 14, 1880.

i8so°o.2^ Mstat! 343. That any national gold bank organized under the
L..&.
*provisions of the laws of the United States, may, in the
manner and subject to the provisions prescribed b y sec
tion fifty-one hundred and fifty-four oi the Revised Stat
utes of the United States, for the conversion of banks in
corporated under the laws of any State, cease to be a gold
bams, and become such an association as is authorized by
section fifty-one hundred and thirty-three, for carrying
on the business of banking, and shall have the same pow
ers and privileges, and shall be subject to the same duties,
responsibilities, and rules, in all respects, as are b y law
prescribed for such associations: Provided, That all cer-

OBTAINING AND ISSUING CIRCULATING NOTES.

tificates of organization which shall be issued under this
act shall bear the date of the original organization of each
bank respectively as a gold bank.
PENALTY FOR ISSUING CIRCULATING NOTES TO UNAU
THORIZED ASSOCIATIONS.
344. Sec. 5187.— No officer acting under the provisions
of this Title shall countersign or deliver to any association, 13 slat, l!, 107. *
or to any other company or person, any circulating notes
contemplated by this Title, except in accordance with the
true intent and meaning of its provisions. Every officer
who violates this section shall be deemed guilty of a high
misdemeanor, and shall be fined not more than double the
amount so countersigned and delivered, and imprisoned
not less than one year and not more than fifteen years.
PENALTY FOR IMITATING BANK CIRCULATION. USE OF
SAME FOR ADVERTISING PURPOSES.
345. Sec. 5188.— Superseded by section 175 of the A ct c jgf
of March 4, 1909.
stat. t., 1122/
Section 175. It shall not be lawful to design, en- orie^iyeenact°ed
grave, print, or in any manner make or execute, or to
m7>
utter, issue, distribute, circulate, or use any business or
professional card, notice, placard, circular, hand-bill, or
advertisement in the likeness or similitude of any circu
lating note or other obligation or security of any bank
ing association organized or acting under the laws of the
United States which has been or may be issued under
any A ct of Congress, or to write, print, or otherwise
impress upon any such note, obligation, or security, any
business or professional card, notice or advertisement, or
any notice or advertisement of any matter or thing what
ever. Whoever shall violate any provision of this sec
tion shall be fined not more than one hundred dollars,
or imprisoned not more than six months, or both.
PENALTY FOR MUTILATING CIRCULATION.
346. Sec. 5189.— Superseded by section 176 of the A ct c 3$
of March 4, 1909.
s t a t . i . , i 122/
S ection 176. Whoever shall mutilate, cut, deface, dis- orT^na^SacTed
figure, or perforate with holes, or unite or cement to- June3»“ 6i
gether, or do any other thing to any bank bill, draft,
note, or other evidence of debt, issued by any national
banking association, or shall cause or procure the same
to be done, with intent to render such bank bill, draft,
note, or other evidence of debt unfit to be reissued by
said association, shall be fined not more than one hun
dred dollars, or imprisoned not more than six months9
or both.
44326°—S. Doc. 412, 64-1----- 5

OBTAINING AND ISSUING CIKCULATING NOTES.

OBTAINING AND ISSUING CIRCULATING NOTES.

OBTAINING AND ISSUING CIBCULATING NOTES.

CHAPTER IV.
REGULATION OF THE BANKING BUSINESS.

40Q. 5190. Place of business.
421. 5196. National banks to take notes of
401. Central reserve cities.—Explanatory
other national banks at par.
note.
422. 5197. Limitation upon rate of in
402. Reserve cities.—Explanatory note.
terest which may be taken.
403. Act December 23, 1913. Demand 423. 5198. Penalty for taking unlawful
and time deposits defined.
interest. Jurisdiction of suits
404. Act December 23, 1913. Reserve
by or against national banks.
requirements—when effect 424. 5199. Dividends.
ive.
425. 5200. Limitation of liabilities which
405. Act December 23,1913. Reserve re
may be incurred by any one
quirements for banks not in
person^ company, etc.
reserve cities.
426. 5201. Associations must not loan
406. Act December 23,1913. Reserve re
on or purchase their own
quirements for banks in re
stock.
427. 5202. Restriction on bank’s in
serve cities.
407. Act December 23,1913. Reserve re
debtedness. Power of na
quirements for banks in cen
tional bank to act as in
tral reserve cities.
surance agent, as real estate
408. Act December 23, 1913. Member
loan broker, and to accept
bank forbidden to keep on
drafts, etc.
deposit with nonmember 428. 5203. Restriction upon use of cir
bank a sum in excess of ten
culating notes.
per cent of its own capital 429. 5204. Prohibition
upon
with
and surplus or to secure dis
drawal of capital. Unearned
counts for nonmember bank.
dividends prohibited.
409. Act December 23,1913. Withdrawal 430. 5205. Assessment tor failure to pay
of reserve by member bank.
up capital stock or for im
pairment of capital.
410. Act December 23,1913. Reserve re
quirements—how estimated. 431. 5206. Prohibition against uncurrent
notes.
411. Act December 23,1913. Reserve re
quirements for national 432. 5207. United States notes not to
be held as collateral.
banks located in Alaska or
outside the continental 433. Act July 12, 1882. Issue of gold
certificates.
United States.
412. Act December 23, 1913. Redemp 434. 5208. Penalty for falsely certifying
checks
tion fund not counted as re
435. Act July 12, 1882. Punishment for
serve.
falsely certifying checks.
413. No reserve required to be held
against United States de 436. 5209. Penalty for embezzlement,
abstraction, willful misappli
posits.
cation, false entries, etc.
414. Act June 20, 1874. Provisions for
redeeming circulation. Five 437. Act January 26, 1907. National
banks not permitted to make
per cent redemption fund.
contributions in connection
415. Act March 3, 1875. Clerical force
with election to political of
for redemption of circulating
fice.
notes.
416. Act July 14, 1890. Disposition of 438. No officer, director, employee, or at
torney of a member bank to
redemption account.
be a beneficiary of or receive
417. Act July 28, 1892. Redemption of
any fee, commission, gift, or
lost or stolen notes and of
other consideration in con
notes not properly signed.
nection with any business
418. 5193. Repealed by act March 14,
of the bank.
1900.
419. 5194. Superseded by repeal of sec 439. 5210. List of shareholders.
440. 5211. Reports to Comptroller of
tion 5193.
•
the Currency.
420. 5195. Place for redemption of cir
culating notes to be desig 441. Act February 26,1881. Verification
of reports.
nated.
71

REGULATION OF THE BANKING BUSINESS.

442. 5212. Report of dividends.
443. 5213. Penalty for failure to make
reports.
444-445. 5214. Taxes on circulation pay
able to the United States.
446. 5215. Half-yearly return of circu
lation.

447. 5216. Penalty for failure to make
return.
448. 5217. Enforcing tax on circulation.
449. 5218. Refunding excess tax.
450. Act March lj 1879. No tax to be paid
by insolvent banks.
451. 5219. State taxation.

PLACE OF BUSINESS*
18mc.iw1mc.!;
400* Sec. 5190.— The usual
1 3 s i a i . l * 101. ’ banking association shall be

business of each national
transacted at an office or
banking house located in the place specified in its organi
zation certificate.
N ote .—See act May 1, 1886, following Revised Statutes. 5136, in
reference to change in place of business. For authority or national
bank to establish branches in foreign countries or dependencies of the
United States, see section 25, Federal reserve act.
CENTRAL RESERVE CITIES—EXPLANATORY NOTE.

^Explanatory

401. [E a c h association organized in any of the cities
named in section 5191, United States Revised Statutes,
was authorized by section 5195, United States Revised
Statutes, to select, subject to the approval of the Comp
troller of the Currency, an association in the city of
New York where it might keep one-half of its lawful
money reserve. This section originally provided for
the redemption of circulating notes at such selected
bank in that city, but all provisions other than that
authorizing the keeping of a portion of the reserve with
such bank were repealed by the act of June 20, 1874.
Since the passage of the act of June 2 1,1 9 17 , however, a
member bank cannot count any balances as reserve except
those due from the Federal Reserve Bank of its district.
Under the provisions of section 2 of the act of March 3,
1887, whenever three-fourths in number of the national
banks located in any city of the United States having a
population of 200,000 snail have made application to
the Comptroller of the Currency, asking that such city
be made a central reserve city, like the city of New
York, the Comptroller of the Currency, with the approval
of the Secretary of the Treasury, was authorized to
grant such request, and under the provisions of this
section the cities of St. Louis and Chicago were designated
as additional central reserve cities on March 18 and
M ay 2, 1887, respectively.
The Federal reserve act confers authority upon the
Federal Reserve Board to add to the number of cities
classified as central reserve cities, to reclassify existing
reserve and central reserve cities, or to terminate their
designation as such. (See section 11, paragraph E ,
Federal reserve a c t .)]
N ote .—Section 5195 and section 2 of the act of March 3,1887, here
tofore referred to, are asfollows:
“ S ec. 5195. Each association organized in any of the cities named
in section fifty-one hundred and ninety-one shall select, subject to the
approval of the Comptroller of the Currency, an association in the city

REGULATION OP THE BANKING BUSINESS.

of New York, at which it will redeem its circulating notes at par;
and may keep one-half of its lawful money reserve in cash deposits in
the city of New York. But the foregoing provision shall not apply to
associations organized and located in the city of San Francisco for the
purpose of issuing notes payable in gold. Each association not organ
ized within the cities named shall select, subject to the approval o f the
Comptroller, an association in either of the cities named, at which it
will redeem its circulating notes at par. The Comptroller shall give
public notice of the names of the associations selected, at which redemp
tions are to be made by the respective associations, and of any change
thatmay be made of the association at which the notes of any association
are redeemed. Whenever any association fails either to make the
selection or to redeem its notes as aforesaid, the Comptroller of the Cur
rency may, upon receiving satisfactory evidence thereof, appoint a
receiver, in the manner provided for in section fifty-two hundred and
thirty-four, to wind up its affairs. But this section shall not relieve any
association from its liability to redeem its circulating notes at its own
counter, at par, in lawful money on demand/’
Section 3 of the act of June 20,1874, amending section 5195, Revised
Statutes, provides—
“ That so much of section thirty-two (section 5195, Revised Statutes)
of said national-bank act requiring or permitting the redemption oi
its circulating notes elsewhere than at its own counter, except as pro
vided for in this section, is hereby repealed.”
Section 2, act of March 3,1887, provides:
“ That whenever three-fourths in number of the national banks
located in any city of the United States having a population of two hun
dred thousand people shall make application to the Comptroller of the
Currency, in writing, asking that such city may be a central reserve
city, like the city of New York, in which one-half of the lawful-money
reserve of the national banks located in other reserve cities may be
deposited, as provided in section fifty-one hundred and ninety-five
of the Revised Statutes, the Comptroller shall have authority, with the
approval of the Secretary of the Treasury, to grant such request, and
every bank located in such city shall at all times thereafter have on
hand, in lawful money of the United States, twenty-five per centum of
its deposits, as provided in section fifty-one hundred and ninety-one
of the Revised Statutes.”
RESERVE CITIES—EXPLANATORY NOTE.
402. [Section 5191, United States Revised Statutes, no^ planatory
names certain cities in which national banks located
therein were required to have on hand in lawful money an
amount equal to at least twenty-five per cent of the aggre
gate amount of their deposits, and provided that every
other association should have on hana in lawful money an
amount equal to fifteen per cent of the aggregate amount
of its deposits. Section 5191 further provided that the
Comptroller of the Currency, with the concurrence of the
Secretary of the Treasury, might appoint a receiver for any
association for failure to make good any deficiency in its
reserve within thirty days after the date when the Comp
troller of the Currency has notified the association to
make good the deficiency. Section 5192, United States
Revised Statutes, proviaed that three-fifths of the re
serve of fifteen per cent-required to be kept by country
banks might consist of balances due to sucn associations
from associations approved by the Comptroller of the
Currency in one of the reserve cities mentioned in said
section. Since the passage of the act of June 21, 1917,
however, a member bank can not count any balances as

BEGULATION OF THE BANKING BUSINESS.

reserve except those due from the Federal Reserve Bank
of its district.
The following are the reserve cities designated in sec
tions 5191 and 5192:
Albany, Baltimore, Boston, Cincinnati, Chicago, Cleve
land, Detroit, Louisville, Milwaukee, New Orleans, New
York, Philadelphia, Pittsburgh, St. Louis, San Francisco,
and Washington.
In addition to the cities listed in the preceding para
graph, the city of Leavenworth, Kansas, was named in
sections 5191 and 5192, but this designation was repealed
by special act of date March 1, 1872. The cities of
Charleston and Richmond were also named as reserve
cities in section 5192, but were not included in the list of
reserve cities enumerated in section 5191. The Comp
troller of the Currency, therefore, did not approve any
banks in those cities as reserve agents. On April 27,
1914, however, three-fourths of the banks in Richmond
having requested that that city be designated as a reserve
city, it was so designated under authority of the act of
March 3, 1887.
The Comptroller of the Currency was authorized under
the act of March 3, 1887, to designate additional reserve
cities whenever three-fourths in number of national
banks located in any city of the United States having a
population of 50,000 requested that the city in question
he so designated. This limit of population was reduced
to 25,000 by the act of March 3, 1903.
The city of New York listed as a reserve city in sections
5191 and 5192 was designated as a central reserve city by
section 5195, and the cities of St. Louis and Chicago
named as reserve cities under sections 5191 and 5192 were
designated, on March 18 and May 2,1887, respectively, as
central reserve cities by the Comptroller of the Currency
with the concurrence of the Secretary of the Treasury,
under the authority granted by the act of March 3, 1887.
In conformity with the provisions of the acts of March
3 ,1 8 8 7 , and March 3 ,1 9 0 3 , the following cities have been
designated by the Comptroller as additional reserve
cities: Atlanta, Brooklyn, Cedar Rapids, Columbus, Dal
las, Denver, Des Moines, Dubuque,.Tort W orth, Galves
ton, Houston^ Indianapolis, Kansas City (K ans.), Kansas
City (M o.), Lincoln, Los Angeles, Minneapolis, Muskogee,
Oklahoma City, Omaha, Portland, Pueblo, Richmond,
Salt Lake City, San Antonio, Savannah, Seattle, Sioux
City, South Omaha, Spokane, St. Joseph, St. Paul, Ta
coma, Topeka, W aco, W ichita. On June 26, 1915, South
Omaha was consolidated with Omaha.
The Federal reserve act confers authority upon the
Federal Reserve Board to add to the number of cities
classified as reserve cities, to reclassify existing reserve
and central reserve cities, or to terminate their designa
tion as such. (See sec. 11, paragraph E , Federal reserve

aot.)

REGULATION OP THE BANKING BUSINESS.

Acting under the authority of this section t^e Federal
Reserve Board has designated the following additional
reserve cities: Birmingham, Ala.; Charleston, S. C.;
Chattanooga and Nashville, Tenn.: Tulsa, OUa.: and
Ogden, Utah.]
Note.-^Sections 5191 and 5192 have not been repealed, but the pro
visions with respect to specific reserve requirements for banks in the
continental United States are superseded by section 19 of the Federal
reserve act as amended June 21,1917, these sections, however, remain
ing in full force and effect for national banks located in Alaska or in a
dependency or insular possession or any part of the United States out
side the continental United States, provided said national banks
remain nonmember banks. The sections in question are as follows,
the italicized portion being superseded, as far as banks in the conti
nental United States are concerned, by later legislation, the remaining
portions of these sections being still in force.
S ec . 5191. Every national banking association in either o f the following
cities: Albany, Baltimore, Boston , Cincinnati, Chicago, Cleveland,
D etroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia,
Pittsburgh, S t. Louis, San Francisco, and Washington, shall at all times
have on hand, in lawful money o f the United States, an amount equal to at
least twenty-five per centum o f the aggregate amount o f its notes in circula
tion and its deposits; and every other association shall at all times have on
hand, in lawful money o f the United States, an amount equal to at least
fifteen per centum o f the aggregate amount o f its notes in circulation, and o f
its deposits.

Whenever the lawful money of any association in any of the cities
named shall be below the amount (o f twenty-five per centum o f its circula
tion and deposits) and whenever tne lawful money of any other associa
tion shall be (below fifteen per centum o f its circulation ana deposits), such
associations shall not increase its liabilities by making any new loans or
discounts otherwise than by discounting or purchasing bills of exchange
payable at sight, nor make any dividends of its profits until the required
proportion, between the aggregate amount of its outstanding notes o f
circulation and deposits and its lawful money of the United States, has
been restored. And the Comptroller of the Currency may notify any
association, whose lawful money reserve shall be below the amount
above required to be kept on hand, to make good such reserve; and if
such association shall fail for thirty days thereafter so to make good its
reserve of lawful money, the Comptroller may, with the concurrence of
the Secretary of the Treasury, appoint a receiver to wind up the busi
ness of the association, as provided in section fifty-two hundred and
thirty-four.
S bc . 5192. Three-fifths o f the reserve offifteen per centum required by the
preceding section to be kept, may consist o f balances due to an association9
available fo r the redemption o f its circulating notes, from associations
approved by the Comptroller o f the Currency, organized under the act o f
June three, eighteen hundred and sixty-four, or under this title, and doing
business in the cities o f Albany , Baltim ore, Boston, Charleston, Chicago,
Cincinnati, Cleveland, D etroit, Louisville, Milwaukee, New Orleans,
New York, Philadelphia, Pittsburgh, Richmond, S t. Louis, San Francisco,
and Washington. Clearing-house certificates, representing specie or

lawful money specially deposited for the purpose, of any clearing-house
association, shall also be deemed to be lawful money in the possession
of any association belonging to such clearing house, holding and owning
such certificate, within the preceding section.
The provisions in section 5191 requiring reserve to be held against circula
tion were repealed by section 2 , act o f June 20 ,18 74 , which provides 11that
section SI o f the National Bank act (sections 5191 and 5192 R . S .) be so
amended that the several associations therein providedfo r shall not hereafter
be required to keep on hand any amount o f money whatever, by reason o f
the amount o f their respective circulations; but the moneys required by said
section to be kept at all times on hand shall be determined by the amount o f
deposits in all respects, as providedfor in the said section.
Additional reserve cities (act o f March 8,1 9 0 8 , amending act o f March 8*
1887).—S mc. 1. That whenever three-fourths in number o f the national

7ft

REGULATION OF THE BANKING BUSINESS.
banks located in any d ty o f the United States having a population o f twentyfive thousand people snail make application to the Comptroller o f the Cur
rency, in writing, ashing that the name o f the city in which such banks are
located shall be added to the cities nam edin sections fifty-on e hundred and
ninety-one and fifty-on e hundred and ninety-tw o o f the Revised Statutes,
the Comptroller shall have authority to grant such request, and every bank
located tn such city shall at all times thereafter have on hand, in lawful
money o f the United States, an amount equal to at least tw enty-five per
centum o f its deposits, as provided in sections fifty-on e hundred and ninetyone and fifty-on e hundred and ninety-five o f the Revised Statutes.
BANK RESERVES.

DEMAND AND TIME DEPOSITS DEFINED.

i9i3? sec!60!®; ^
stat. l ., 270.'
dnfseo. io? 21’

.403. Sec . 19. Demand deposits within the meaning of
this A ct shall comprise all deposits payable within thirty
days, and time deposits shall comprise all deposits pay
able after thirty days, all savings accounts and certificates
of deposit which are subject to not less than thirty days'
notice before payment; and all postal savings deposits.
RESERVE REQUIREMENTS.

1913*sec!6 ^ ; ^
stat’. L., 270/
m s e c . wf

404 . Every bank, banking association, or trust company which is or which becomes a member of any Federal
reserve bank shall establish and maintain reserve bal
ances with its Federal reserve bank as follows:
RESERVE REQUIREMENTS FOR BANKS NOT IN RESERVE
CITIES.

m^sec!6^- ^
405. (a) If not in a reserve or central reserve city, as
stat'. l ., 270. * now or hereafter defined, it shall hold and maintain with
wntWuT
the Federal reserve bank of its district an actual net bal
ance equal to not less than seven per centum of the
aggregate amount of its demand deposits and three per
centum of its time deposits.
RESERVE REQUIREMENTS
CITIES.

FOR

BANKS

RESERVE

406. (b) If in a reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve
bank of its district an actual net balance equal to not less
^ict June 2i *kan ^
Per centum of the aggregate amount of its de1917, sec. io.
' mand deposits and three per centum of its time deposits.
1913* sec!6?*
stat. l .,270.’
i9H?38^ lt . if’,

RESERVE REQUIREMENTS
RESERVE CITIES.

FOR

BANKS

CENTRAL

m^sec*!*' 3i 407. (c) If in a central reserve city, as now or herestat*. l., *270.*
after defined, it shall hold and maintain with the Federal
i9u?3s1 $at. if; reserve bank of its district an actual net balance equal to
WAct June 21 no* less than thirteen per centum of the aggregate amount
' of its demand deposits and three per centum of its time
1917, sec. io.
deposits.
MEMBER BANK FORBIDDEN TO KEEP ON DEPOSIT WITH
NONMEMBER BANK A SUM IN EXCESS OF TEN PER
CENT OF ITS OWN CAPITAL AND SURPLUS OR TO
SECURE DISCOUNTS FOR NONMEMBER BANK.

iq ^ sea^b; %
408. No member bank shall keep on deposit with any
stat*. l ., *271/
State bank or trust company which is not a member bank

REGULATION OF THE BANKING BUSINESS.

a sum in excess of ten per centum of its own paid-up iM^Vstat if*
capital and surplus. No member bank shall act as the m i. ’
' **
medium or agent of a nonmember bank in applying for or iwCsJ!'m? **
receiving discounts from a Federal reserve bank under the
provisions of this Act, except by permission of the Federal
Reserve Board.
WITHDRAWAL OF RESERTE BT MEMBER BANE.

409. The required balance carried by a member bank
JP*%. ^
with a Federal reserve bank may, under the regulations stat’. L, zii.’
and subject to such penalties as may be prescribed by the lgwfa/s&t It
Federal Reserve Board, be checked against and withJune a’
drawn by such member bank for the purpose of meeting wit, see.10. ’
existing liabilities: Provided, however. That no bank shall
at any time make new loans or shall pay any dividends
unless and until the total balance required by law is fully
restored.
RESERTE REQUIREMENTS—HOW ESTIMATED.

410. In estimating the balances required by this Act,
the net difference of amounts due to and from other banks stat’. L.,271.’
shall be taken as the basis for ascertaining the deposits i # u f u’,
against which required balances with Federal reserve m.-i T *
banks shall be determined.
im fsJw ! a*
RESERTE REQUIREMENTS FOR NATIONAL BANKS LO
CATED IN ALASKA OR OUTSIDE THE CONTINENTAL
UNITED STATES.

411. National banks, or banks organized under local
laws, located in Alaska or in a dependency or insular pos- stat’. l., 271.’
session or any part of the United States outside the con- wuf^'stlt. I5'
tinental United States may remain nonmember banks,
June’ a
and shall in that event maintain reserves and comply with 1917, sec. 10.
all the conditions now provided by law regulating them;
or said banks may, with the consent of the Reserve Board,
become member banks of any one of the reserve districts,
and shall in that event take stock, maintain reserves, ana
be subject to all the other provisions of this Act.
REDEMPTION FUND NOT COUNTED AS RESERTE.

412. Sec. 20.— So much of sections two and three of the 19^3ctsJ ><^. ^
Act of June twentieth, eighteen hundred and seventy- stat’. L./271I
four, entitled “ An A ct fixing the amount of United States
notes, providing for a redistribution of the national-bank
currency, and for other purposes,” as provides that the
fund deposited by any national banking association with
the Treasurer of the United States for the redemption of
its notes shall be counted as a part of its lawful reserve as
>rovided in the Act aforesaid, is hereby repealed. And
rom and after the passage of this A ct such fund of five
per centum shall in no case be counted by any national
bulking association as a part of its lawful reserve.

REGULATION OF THE BANKING BUSINESS.
NO RESERVE REQUIRED TO BE HELD AGAINST UNITED
STATES DEPOSITS.

MMseo^' ^
4 13 * gee. 7. * * * That the provisions of section
’ "*
fifty-one hundred and ninety-one of the Revised Statutes,
a$ amended by the Federal Reserve A ct and the amend
ments thereof, with reference to the reserves required to
be kept by national banking associations and other mem
ber banks of the Federal Reserve System, shall not apply
to deposits of public moneys by the United States in des
ignated depositaries.
PROVISIONS FOR REDEEMING CIRCULATION. FITE PER
CENT REDEMPTION FUND. ACT JUNE 20, 1874.

i874*c £a1sec23: 414. Sec. S.— That every association organized, or to be
is s ia t . h’, 123. ’ organized, under the provisions of the said act, and of the
several acts amendatory thereof, shall at all times keep
and have on deposit in the Treasury of the United States,
in lawful money of the United States, a sum equal to five
per centum of its circulation, to be held and used for the
redemption of such circulation; [which sum shall be
counted as a part of its lawful reserve, as provided in
section two of this act;] and when the circulating notes of

any such associations, assorted or unassorted, shall be pre
sented for redemption, in sums of one thousand dollars,
or any multiple thereof, to the Treasurer of the United
States, the same shall be redeemed in United States
notes. All notes so redeemed shall be charged by the
Treasurer of the United States to the respective associa
tions issuing the same, and he shall notify them severally,
on the first day of each month, or oftener, at his discre
tion, of the amount of such redemptions; and whenever
such redemptions for any association shall amount to the
sum of five hundred dollars, such association so notified
shall forthwith deposit with the Treasurer of the United
States a sum in United States notes equal to the amount
o f its circulating notes so redeemed. And all notes of
national banks worn, defaced, mutilated, or otherwise
unfit for circulation shall, when received by any assistant
treasurer, or at any designated depository of the United
States, be forwarded to the Treasurer of the United States
for redemption as provided herein. And when such re
demptions have been so reimbursed, the circulating notes
so redeemed shall be forwarded to the respective associa
tions by which they were issued; but if any of such notes
are wom , mutilated, defaced, or rendered otherwise unfit
for use, they shall be forwarded to the Comptroller of the
Currency and destroyed and replaced as now provided by
law: Provided That each of said associations shall reim
burse to the Treasury the charges for transportation, and
the costs for assorting such notes; and the associations
hereafter organized shall also severally reimburse to the
Treasury the cost of engraving such plates as shall be or
dered by each association respectively; and the amount

REGULATION OF THE BANKING BUSINESS.

assessed upon each association shall be in proportion to
the circulation redeemed, and be charged to the fund on
deposit with the Treasurer: And presided further, That
so much of section thirty-two of said national-bank act
requiring or permitting the redemption of its circulating
notes elsewhere than at its own counter except as pro
vided for in this section, is hereby repealed.
N o t e .— Under section 4 of the act of June 20, 1874, chapter 343, a
national banking association, desiring to withdraw its circulating notes
and take up the bonds deposited with the United States Treasurer as
security therefor, may do -so by depositing with the Treasurer the
required amount in lawful money, whether this consists of coin or of
legal-tender notes. The Treasury, while privileged under sections
3 and 4 of that act to redeem such circulation in United States notes,
has also the right to redeem the same circulation in coin. (Opinion
Attorney General, Vol. 17,121.)
Section 32 of national-bank act is section 5195, Revised Statutes.
The provision permitting the redemption fund to be counted as part of
the lawful reserve was repealed by section 20 of the Federal reserve
act.
Other sections o f act o f June 20,1874 .

Section 1 precedes Revised Statutes, 5133.
Section 2. See note under paragraph 402, ante.
Section 4 follows Revised Statutes, 5167.
Section &follows Revised Statutes, 5172.
Section 6 relates to United States notes only.
Sections 7-9 superseded by act of January 14, 1875, which follow?,
Revised Statutes, 5177.
CLERICAL FORCE FOR REDEMPTION OF CIRCULATING
NOTES. ACT MARCH 3, 1875.

415. That to carry into effect the provisions of sec- i8AstetfrL.,lS 9tion three of the act entitled “ An act fixing the amount partofthesundry
of United States notes, providing for a redistribution of tionwt?pro
the national-bank currency, and for other purposes/’
approved June twentieth, eighteen hundred and seventyfour, the Secretary of the Treasury is authorized to ap
point the following force, to be employed under his direc
tion, namely: In the Office o f the Treasurer: * * *
In the Office of the Comptroller of the Currency * * *
And at the end of each month, the Secretary o f the Treas
ury shall reimburse the Treasury to the full amount paid
out under the provisions of tms section by transfer of
said amount from the deposit of the national banking as
sociations with the Treasury o f the United States; and at
the end of each fiscal year he shall transfer from said
deposit to the Treasury of the United States such sum
as may have been actually expended under his direction
for stationery, rent, fuel, light, and other necessary inci
dental expenses which have been incurred in carrying
into effect the provisions of the said section o f the abovenamed act.
N o t e .—The Appropriation Bill for each year fixes the number and
compensation of the clerks employed in the offices of the Treasurer
of the United States and Comptroller of the Currency in connection
with the redemption of circulating notes.

REGULATION OF THE BANKING BUSINESS.
DISPOSITION OF REDEMPTION ACCOUNT.
1890.

ACT JULY 14,

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

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

417. That the provisions of the Revised Statutes of
’ the United States, providing for the redemption of
national bank notes, shall apply to all national bank notes
that have been or may be issued to, or received by, any
national bank, notwithstanding such notes may have been
lost by or stolen from the bank and put in circulation
without the signature or upon the forged signature of the
president or vice-president and cashier.
418. Sec. 5193.—
Repealed by act March 14,1900.
N ote .—This section as enacted June 8 , 1872 (17 Stat. L., 337), au
thorized the Secretary of the Treasury to receive on deposit from
national banking associations United States notes in sums of not less
than ten thousand dollars and to issue certificates therefor payable on
demand in denominations of not less than five thousand -dollars. This
was repealed by act March 14, 1900, section 6, paragraph 752, post,
which provides for issue of cold certificates payable to order in denomi
nations of ten thousand dollars.

BEGULATION 0 7 THE BANKING BUSINESS.

419. Sec. 5194.—
Dependent on 5193 and superseded by its repeal.
PLACE FOR REDEMPTION OF CIRCULATING NOTES TO
BE DESIGNATED.

420. Sec. 5195.—
See note under paragraph 401, ante.
NATIONAL BANKS TO TAKE NOTES OF OTHER NATIONAL
BANKS AT PAR.

421. Sec. 5196.— Every national banking association
formed or existing under this Title, shall take and receive is slat, l ’ io». ’
at par, for any debt or liability to it, any and all notes or isto'c. sm.mc.sbills issued by any lawfully organized national banking16s“ t-L->253association. But this provision shall not apply to any
association organized for the purpose of issuing notes
payable in gold.
LIMITATION UPON BATE OF INTEREST WHICH MAT BE
TAKEN.

422. Sec. 5197.— Any association may take, 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, Ter
ritory, or District 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 or existing in any such State under this Title.
When no rate is fixed by the laws of the State, or Terri
tory, or District, the bank may take, receive, reserve, or
charge a rate not exceeding seven per centum, and such
interest may be taken in advance, reckoning the days for
which the note, bill, or other evidence of debt has to run.
And the purchase, discount, 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 in
terest, shall not be considered as taking or receiving a
greater rate of interest.

i 3 Sfat.L .,io 8.

PENALTY FOR TAKING UNLAWFUL INTEREST. JURISDIC
TION OF SUITS BY OR AGAINST NATIONAL BANKS.

423. Sec. 5198 [as amended 1875].— The taking, receiving, reserving, or charging a rate of interest greater than
is allowed by the preceding section, when knowingly done,
shall be deemed 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. In case the
greater rate of interest has been paid, the person by
whom it has been paid, or his legal representative2 may
recover back, in an action in the nature of an action of
debt, twice the amount of the interest thus paid from the
association taking or receiving the same; provided such
44326°—S. Doc. 412,64-1------6

18^ctc 1$ x£c $
i3sfet.L.,,io£ '
i8^ c . 80;i8*stit!
L*^20*

REGULATION OF THE BANKING BUSINESS.

action is commenced within two years from the time the
' usurious transaction occurred. That suits, actions, and
proceedings against any association under this Title may
be had in any circuit, district, or territorial court of the
United States held within the district in which such asso
ciation may be established, or in anjr State, county, or
municipal court in the county or city in which said asso
ciation is located having jurisdiction in similar cases.
N o t e .—Additional provisions relating to jurisdiction of actions b y
and against national banks are contained in act Julv 12, 1882, para*
graph 216, ante, and act of August 13.1888, paragraph 212, ante. See
also section 24, judiciary act passed March 3,1911, paragraph 701, post,
and section 736, Revised Statutes of the United States, paragraph 702,
postj as to jurisdiction of district courts to enjoin Comptroller under
section 5237, Revised Statutes, United States.

DIVIDENDS.

1864*0. lw’see.33;
13siat.l.’ 109.

*24. Sec. 5199.— The directors of any association may,
'semiannually, declare a dividend of so much of the net
rofits of the association as they shall judge expedient;
ut 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 same
shall amount to twenty per centum of its capital stock.

LIMITATION OF LIABILITIES WHICH MAT BE INCURRED
BY ANT ONE PERSON, COMPANY, ETC.

426. Sec. 5200
[as amended 1906].— The total liabilities
•
to any association, of any person, or of any company,
lorcf34Jstat. l.’, corporation, or firm for money borrowed, including m
the liabilities of a company or firm the liabilities 0 1 the
several members thereof, shall at no time exceed one-*tenth
part of the amount of the capital stock of such associa
tions, actually paid in and unimpaired and one-tenth part
of its unimpaired surplus fund: Provided, however, That
the total of such liabilities shall in no event exceed thirty
per centum of the capital stock of the association. But
the discount of bills of exchange drawn in good faith
against actually existing values, and the discount of com
mercial or busmess paper actually owned by the persoit
negotiating the same shall not be considered as money
borrowed.

I v O i t v# 1U0|

13 stat. l ., 108.

ASSOCIATIONS MUST NOT LOAN ON OE PURCHASE THEIR
OWN STOCK.

1864*0.loSjsec.35; 426. Sec. 5201.— No association shall make any loan or
13slat, l.'ho. ’ discount on the security of the shares of its own capital
stock, nor be the purchaser or holder of any such shares,
unless such security or purchase shall be necessary to
prevent loss upon a debt previously contracted in good
iaith; and stock so purchased or acquired shall, within
six months from the time of its purchase, be sola or dis
posed of at public or private sale; or, in default thereof,
a receiver may be appointed to close up the business of
the association, according to section fifty-two hundred
and thirty-four.

REGULATION OF THE BANKING BUSINESS.

RESTRICTION ON BANK’S INDEBTEDNESS.
POWER OF
NATIONAL BANK TO ACT AS INSURANCE AGENT,
AS REAL ESTATE LOAN BROKER, AND TO ACCEPT
DRAFTS, ETC.

427. Sec. 5202.— No national banking association shall
io»*soc. 36at any time be indebted, or in any way liable, to an 13sfai. L.'110. '
amount exceeding the amount of its capital stock at such 19$*
time actually paid in and remaining undiminished by s t a t 'l . , aw. 9
losses or otherwise, except on account of demands of the
nature following:
First. Notes of circulation.
Second. Moneys deposited with or collected by the
association.
Third. Bills of exchange or drafts .drawn against money
actually on deposit to the credit of the association, or
due thereto.
Fourth. Liabilities to the stockholders of the associa
tion for dividends and reserve profits.
Fifth. Liabilities incurred under the provisions of the
Federal Reserve Act.
The discount and rediscount and the purchase and
sale bv any Federal reserve bank of any bills receivable
and o f domestic and foreign bills of excnange, and of ac
ceptances authorized by this Act, shall be subject to such
restrictions, limitations, and regulations as may be im- 758.'
posed by the Federal Reserve Board.
That in addition to the powers now vested by law in
national banking associations organized under the laws of
the United States any such association located and doing
business in any place the population of which does not
exceed five thousand inhabitants, as shown by the last
preceding decennial census, may, under such rules and
regulations as may be prescribed by the Comptroller of
the Currency, act as the agent for any fire, life, or other
insurance company authorized by the authorities of the
State in which said bank is located to do business in said
State, by soliciting and selling insurance and collecting
premiums on policies issued by such company; and may
receive for services so rendered such fees or commissions
as may be agreed upon between the said association and
the insurance company for which it may act as agent;
and may also act as the broker or agent for others in mak
ing or procuring loans on real estate located within one
hundred miles of the place in which said bank may be
located, receiving for such services a reasonable fee or
commission: Provided, however, That no such bank shall
in any case guarantee either the principal or interest of
any such loans or assume or guarantee the payment of
any premium on insurance policies issued through its
agency by its principal: Ana provided further, That the
bank shall not guarantee the truth of any statement made
by an assured m filing his application for insurance.
Any member bank may accept drafts or bills of ex
change drawn upon it having not more than three months'

REGULATION OF THE BANKING BUSINESS.

sight to run, exclusive of days o f grace, drawn under regu
lations to be prescribed by the Federal Reserve Board oy
banks or bankers in foreign countries or dependencies or
insular possessions of the United States for the purpose
o f furnishing dollar exchange as required b y the usages of
trade in the respective countries, dependencies, or insular
possessions. Such drafts or bills may be acquired by
Federal reserve banks in such amounts and subject to
such regulations, restrictions, and limitations as m ay be
prescribed by the Federal Reserve Board: Provided, how
ever, That no member bank shall accept such drafts or
bills of exchange referred to this paragraph for any one
bank to an amount exceeding in the aggregate ten per
centum of the paid-up and unimpaired capital and sur
plus of the accepting bank unless the draft or bill o f ex
change is accompanied b y documents conveying or se
curing title or by some other adequate security: Provided
further, That no member bank shall accept such drafts
or bills in an amount exceeding at any time the aggregate
o f one-half of its paid-up and unimpaired capital and sur
plus.
RESTRICTION UPON USE OF CIRCULATING NOTES.

i864^c. io6? sec! 428' Sec. 5203.— No association shall, either directly or
87;
stat. l.', indirectly, pledgt; or hypothecate any of its notes or cir11A
culation, for the purpose of procuring money to be paid
in on its capital stock, or to be used in its banking opera
tions, or otherwise; nor shall any association use its cir
culating notes, or any part thereof, in any manner or
form, to create *r increase its capital stock.
PROHIBITION UPON WITHDRAWAL OF CAPITAL.
EARNED DIVIDENDS PROHIBITED.

i8M*c. we* see!
is;

stat. i>.',

429. Sec. 5204.— No association, or any member thereof,
shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the
form of dividends or otherwise, any portion of its capital:
I f losses have at any time been sustained by any such
association, equal to or exceeding its undivided profits
then on hand, no dividend shall be made; and no divi
dend shall ever be made by any association, while it con
tinues its banking operations, to an amount greater than
its net profits then on hand, deducting therefrom its losses
and bad debts. All debts due to any association, on
which interest is past due and unpaid for a period o f six
months, unless the same are well secured, and in process
o f collection, shall be considered bad debts within the
meaning of this section. But nothing in this section shall
prevent the reduction o f the capital stock o f the associa
tion under section fifty-one hundred and forty-three.
ASSESSMENT FOR FAILURE TO PAT UP CAPITAL STOCK
OR FOR IMPAIRMENT OF CAPITAL.

jsraV asv’ s»!
j; i f 8 t » t . « B .

^30. Sec. 5205 [as amended 1876],— Every association
which shall have failed to pay up its capital stock, as re-

REGULATION OF THE BANKING BUSINESS.

quired by law, and every association whose capital stock i8^ctc Jgje
snail have become impaired by losses or otherwise, shall, *; i&stat. £ , e*!
within three months alter receiving notice thereof from
the Comptroller of the Currency, pay the deficiency in
the capital stock, by assessment upon the shareholders
pro rata for the amount of capital stock held by each;
and the Treasurer of the United States shall withhold
the interest upon all bonds held by him in trust for any
such association, upon notification from the Comptroller
of the Currency, until otherwise notified by him. If any
such association shall fail to pay up its capital stock, and
shall refuse to go into liquidation, as provided by law,
for three months after receiving notice from the Comp
troller, a receiver may be appointed to close up the busi
ness of the association, according to the provisions o f
section fifty-two hundred and thirty-four. And provided,
That if any shareholder or shareholders of such bank
shall neglect or refuse, after three months’ notice, to pay
the assessment, as provided in this section, it shall be the
duty of the board oi directors to cause a sufficient amount
of tne capital stock of such shareholder or shareholders
to be sold at public auction (after thirty days' notice
shall be given by posting such notice of sale in the office
of the bank, and by publishing such notice in a newspa
per of the city or town in which the bank is located, or
m a newspaper published nearest thereto), to make good
the deficiency, and the balance, if any, shall be returned
to such delinquent shareholder or shareholders.
PROHIBITION AGAINST UNCURRENT NOTES.

431. Sec. 5206.—No association shall at any time pay l^ f CtlQ^Ct
out on loans or discounts, or in purchasing drafts or bills 13 slat, l ! , ui. ’
of 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 are not, at any such time,
receivable, at par, on deposit, and in payment of debts by
the association so paying out or circulating such notes;
nor shall any association knowingly pay out or put in
circulation any notes issued by any D a n k or banking asso
ciation which at the time of such paying out or putting in
circulation is not redeeming its circulating notes in law
ful money of the United States.
UNITED STATES NOTES NOT TO BE HELD AS COLLAT
ERAL.

432. Sec. 5207.— No association shall hereafter offer or 18^ Cc. 32^15 stat!
receive United States notes or national-bank notes as l., ho.
security or as collateral security for any loan of money,
or for a consideration agree to withhold the same from
use, or offer or receive the custody or promise of custody
of such notes as security, or as collateral security, or
consideration for any loan of money. Any association
offending against the provisions of this section shall be
deemed guilty of a misdemeanor, and shall be fined not

REGULATION OF THE BANKING BUSINESS.

more than one thousand dollars and a further sum equal
to one-third of the money so loaned. The officer or offi
cers of any association who shall make any such loan
shall be liable for a further sum equal to one-quarter of
the money loaned; and any fine or penalty incurred by a
violation of this section shall be recoverable for the bene
fit of the party bringing such suit.
ISSUE OF GOLD CERTIFICATES.

ACT JULY 12, 1882.

488. Sec. 12.—That the Secretary of the Treasury is
authorized and directed to receive deposits of gold coin
* * * and issue certificates therefor * * *. Such
certificates * * * when held by any national bank
ing association, shall be counted as part of its lawful
reserte; and no national banking association shall be a
member of any clearing house in which such certificates
shall not be receivable m the settlement of clearing-house
balances: * * * And the provisions of section fiftytwo hundred and seven of the Revised Statutes shall be
applicable to the certificates herein authorized and di
rected to be issued.
N ote .—This section given in full, paragraph 729, post. See also cur
rency act of March 14,1900, as amended March 4,1907, March 2,1911,
and June 12, 1916, paragraph 752, post, relating to gold certificates,
and making ten dollars lowest denomination.

PENALTY FOR FALSELY CERTIFYING CHECKS.

434. Sec. 5208.—It shall be unlawful for any officer,
’’ clerk, or agent of any national banking association to cer
tify any check drawn upon the association unless the
person or company drawing the check has on deposit with
the association, at the time such check is certified, an
amount of money equal to the amount specified in such
check. Any check so certified by duly authorized officers
shall be a good and valid obligation against the associa
tion; but the act of any officer, clerk, or agent of any as
sociation, in violation of this section, shall subject such
bank to the liabilities and proceedings on the part of the
Comptroller as provided for in section fifty-two hundred
and thirty-four.
PUNISHMENT FOR FALSELY CERTIFYING CHECKS.
JULY 12, 1882.

ACT

435. Sec. 13.—That anjr officer, clerk, or agent of any
’ national banking association who shall willfully violate
the provisions of an act entitled “ An act in reference to
certifying checks by national banks,” approved March
third, eighteen hundred and sixty-nine, being section
fifty-two hundred and eight of the Revised Statutes of
the United States, or who shall resort to any device, or
receive any fictitious obligation, direct or collateral, in
order to evade the provisions thereof, or who shall certify
checks before the amount thereof shall have been regu-

\l>

REGULATION OF THE BANKING BUSINESS.

larly entered to the credit of the dealer upon the books of
the banking association, shall be deemed guilty of a mis
demeanor, and shall, on conviction thereof in any circuit
or district court of the United States, be fined not more
than five thousand dollars, or shall be imprisoned not
more than five years, or both, in the discretion of the court.
PENALTY FOR EMBEZZLEMENT, ABSTRACTION, WILLFUL
MISAPPLICATION, FALSE ENTRIES, ETC.

436. Sec. 5209.—Every president, director, cashier,
jJ>.
teller, clerk, or agent of any association, who embezzles, 13 stat. 1 11a. ’
abstracts, or willfully misapplies any of the moneys, funds, -li-t/p'tV T l
or credits of the association; or who, without authority 7-A<JtJul glgJ0’
from the directors, issues or puts in circulation any of 226; « Stat., l ’
the notes of the association; or who, without such au- 196*
thority, issues or puts forth any certificate of deposit,
draws any order or bill of exchange, makes any accept
ance, assigns any note, bond, draft, bill of exchange,
mortgage, judgment, or decree; or who makes any false
entry in any book, report, or statement of the associa
tion, with intent, in either case, to injure or defraud the
association or any other company, body politic or cor
porate, or any individual person, or to deceive any officer
of the association, or any agent appointed to examine the
affairs of any such association; and every person who
with like intent aids or abets any officer, clerk, or agent
in any violation of this section, snail be deemed guilty of
a misdemeanor, and shall be imprisoned not less than five
years nor more than ten.
NATIONAL BANES NOT PERMITTED TO MAKE CO N TR I
BUTIONS IN CONNECTION WITH ELECTION TO PO
LITICAL OFFICE. ACT JANUARY 26, 1907.

437. That it shall be unlawful for any national bank, or
any corporation organized by authonty of any laws of set'
Congress, to make a money contribution in connection
with any election to any political office. It shall also be
unlawful for any corporation whatever to make a money
contribution in connection with any election at which
Presidential and Vice-Presidential electors or a Repre
sentative in Congress is to be voted for or any election by
any State legislature of a United States Senator. Every
corporation which shall make any contribution in viola
tion of the foregoing provisions snail be subject to a fine
not exceeding nve thousand dollars, and every officer or
director of any corporation who shall consent to any con
tribution by tne corporation in violation of the foregoing
provisions shall upon conviction be punished by a fine of
not exceeding one thousand and not less than two hun
dred and fifty dollars, or by imprisonment for a term of
not more than one year, or both such fine and imprison
ment in the discretion of the court.

’’

REGULATION OF THE BANKING BUSINESS.
NO OFFICER. DIRECTOR, EMPLOYEE OR ATTORNEY OF
A MEMBER BANK TO BE A BENEFICIARY OF OR
RECEIVE ANY FEE, COMMISSION, GIFT, OR OTHER
CONSIDERATION IN CONNECTION WITH ANY BUSI
NESS OF THE BANK.

iM*f s#.*22;
stat! l ., 272/
imfsec.nf

438. Other than the usual salary or director's fee paid
to any officer, director, employee, or attorney of a memher bank, and other tnan a reasonable fee paid by said
bank to such officer, director, employee, or attorney for
services rendered to such bank, no officer, director, em
ployee, or attorney of a member bank shall be a bene
ficiary of or receive, directly or indirectly, any fee, com
mission, gift, or other consideration for or in connection
with any transaction or business of the bank: Providedhowever, That nothing in this A ct contained shall be con,
strued to prohibit a director, officer, employee, or attor
ney from receiving the same rate of interest paid to other
depositors for similar deposits made with such bank:
And providedfurther, That notes, drafts, bills of exchange,
or other evidences of debt executed or indorsed by direc
tors or attorneys of a member bank may be discounted
with such member bank on the same terms and condi
tions as other notes, drafts, bills of exchange, or
evidences of debt upon the affirmative vote or written
assent of at least a m ajority of the members of the board
of directors of such member bank.
LIST OF SHAREHOLDERS.

i» 4*c

sec’
®ec# ®210*— The president and cashier of every
40; 'is* stai h.] national banking association shall cause to be kept at all

times a full and correct list of the names and residences
of all the shareholders in the association, and the number
of shares held by each, in the office where its business is
transacted. Such list shall be subject to the inspection
of all the shareholders and creditors of the association,
and. the officers authorized to assess taxes under State
authority, during business hours of each day in which
business may be legally transacted. A copy of such Ust,
on the first Monday of July of each year, verified by the
oath of such president or cashier, shall be transmitted to
the Comptroller of the Currency.
REPORTS TO COMPTROLLER OF THE CURRENCY.

i8M*c. we#sec!
®ec* ®311 [as amended 1877].— Every association
34; i s ’stat! l .‘, shall make to the Comptroller of the Currency not less
I0Aet Mar. s, than five reports during each year, according to the form
Sst&.1S, 326.1; w& cb may he prescribed by him, verified by the oath or
Act ’ Fib. 27. affirmation of the president or cashier of such association,
stat! l.] 252.'
and attested by the signature of at least three of the
directors. Each such report shall exhibit, in detail and
under appropriate heads, the resources and liabilities of
the association at the close of business on any past day by
him specified; and shall be transmitted to the Comptrol
ler within five days after the receipt of a request or requi
sition therefor from him, and in the same form in which

REGULATION OF THE BANKING BUSINESS.

it is made to the Comptroller shall be published in a
newspaper published in the place where such association
is established, or if there is no newspaper in the place,
then in the one published nearest thereto in the same
county, at the expense of the association; and such proof
of publication shall be furnished as may be required by
the Comptroller. The Comptroller shall also have power
to call for special reports from any particular association
whenever in his judgment the same are necessary in
order to a full and complete knowledge of its condition.
N o t e .—Section 713 of the Code of Laws of the District of Columbia
provides: “ That all publications authorized or required by said section
fifty-two hundred and eleven of the Revised Statutes, and all other
publications authorized or required by existing law to be made in the
District of Columbia, shall be printed in two or more daily newspapers
of general circulation, published in the City of Washington, one of which
shall be a morning newspaper.”
The Federal Reserve Board is authorized by section 11 of the Federal
reserve act to examine at its discretion the accounts, books, and affairs
of each Federal reserve bank and of each member bank ana to require
such statements and reports as it may deem necessary.

VERIFICATION OF REPORTS.

ACT FEBRUARY 26, 1881.

441. That the oath or affirmation required by section 18^ cFeg5; %
fifty-two hundred and eleven of the Revised Statutes,
verifying the returns made by national banks to the
Comptroller of the Currency, when taken before a notary
public properly authorized and commissioned by the
State in which such notary resides and the bank is located,
or any other officer having an official seal, authorized in
such State to administer oaths, shall be a sufficient verifi
cation as contemplated by said section fifty-two hundred
and eleven: Provided, That the officer administering the
oath is not an officer of the bank.

stat'

.* 352/

REPORT OF DIVIDENDS.

442. Sec. 5212.— In addition to the reports required by is^ctc
the preceding section, each association shall report to the i5 stat. l.* 327* '
Comptroller of the Currency, within ten days after declar
ing any dividend, the amount of such dividend, and the
amount of net earnings in excess of such dividend. Such
reports shall be attested by the oath of the president or
cashier of the association.
PENALTY FOR FAILURE TO MAKE REPORTS.

443. Sec. 5213.— Every association which fails to make c. i $ , ^ i ’ATi5
and transmit any report required under either of the two stat/ir.,3& ’
preceding sections shall be subject to a penalty of one
hundred dollars for each day after the periods, respec
tively, therein mentioned, that it delays to make and
transmit its report. Whenever any association delays or
refuses to pay the penalty herein imposed, after it has
been assessea by the Comptroller of the Currency, the
amount thereof may be retained by the Treasurer of the
United States, upon the order of the Comptroller of the
Currency, out of the interest, as it may become due to the
association, on the bonds deposited with him to secure

REGULATION OF THE BANKING BUSINESS,

circulation. All sums of money collected for penalties
under this section shall be paid into the Treasury of the
United States.
TAXES PAYABLE TO THE UNITED STATES.

RSec. 5214, v s.
Act June 3.1864,

444, Sec. 5214.— In lieu of all existing taxes, every
association shall pay to the Treasurer of the United
States, in the months of January and July, a duty of onehalf of one per centum each half year upon the average
amount of its notes in circulation, [ana a duty o f one-

quarter of one per centum each half year upon the average
amount of its depositsyand a duty of one-quarter o f one per
centum each, half year on the average amount o f w capital
stock, beyond the amount invested %nUnited States boruls].
lflw'sw^V Hi 445. Sec. 13. That every national banking association
stat. l., i» .'

having on deposit, as provided by law, bonds of the United
States bearing interest at the rate of two per centum per
annum, issued under the provisions of this A ct, to secure
its circulating notes, shall pay to the Treasurer of the
United States, in the months of January and July, a tax
of one-fourth of one per centuQi each half year upon the
average amount of such of its notes in circulation as are
based upon the deposit of said two per centum bonds;
and such taxes shall be in lieu of existing taxes on its
notes in circulation imposed by section fifty-two hundred
and fourteen'of the Revised Statutes.

N o t e . —The provisions of section 5214, covering taxes on the average
amount of deposits and capital, were repealed by the act of March 3,
18B3. The 2 per cent Panama Canal bonds were given all rights and
privileges accorded to other 2 per cent bonds of the United States by
Hie act of December 21,1905.
On May 30, 1908, section 5214 was reenacted so as to cover the pro
visions of the original section as modified by the acts of March 3, 1883,
March 14, 1900, and December 21, 1905, and in addition thereto there
was added provisions for the taxation of the additional circulation
issued under the act. The act of May 30, 1908, however, expired on
June 30, 1914, and while it was extended, by section 27 of the act of
December 23, 1913, to June 30, 1915, it was expressly provided in the
latter act that on the expiration of the act of May 30,1908, section 5214
should‘be reenacted to read as such section read prior to May 30,1908.
The acts of December 23, 1913, and August 4,1914. amended the pro
visions in this section of the act of May 30,1908, relative to the taxa
tion of emergency currency. All the provisions for the emergency cur
rency expired on June 30,1915.
The following is section 5214 as it stood prior to the expiration of
the Emergency Currency Act on June 30,1915, with all amendments:
“ Sec. 5214. National banking associations having on deposit bonds
of the United States, bearing interest at the rate of two per centum
per annum, including the bonds issued for the construction of the
Panama Canal, under the provisions of section eight o f 4An Act to pro
vide for the construction o f a canal connecting the waters of the Atlantic
and Pacific oceans,’ approved June twenty-eighth, nineteen hundred
and two, to secure its circulating notes, shall pay to the Treasury of the
United States, in the months of January ana July, a tax of one-fourth
of one per centum each half year upon the average amount of such of
its notes in circulation as are based upon the deposit of such bonds; and
such associations having on deposit bonds of the United States bearing
interest at a rate higher than two per centum per annum shall pay a tax
of one-half of one per centum each half year upon the average amount
of tuch of its notes in circulation as are based upon the deposit of such
bonds.

REGULATION OF THE BANKING BUSINESS.

“ National banking associations having circulating notes secured
otherwise than by bonds of the United States* shall pay lor the first
three months a tax at the rate of three per centum per annum upon the
average amount of such of their notes in circulation as are based upon
the deposit of such securities, and afterwards an additional tax rate of
one-half of one per centum per annum lor each month until a tax of six
per centum per annum is reached, and thereafter such tax of six per
centum per annum upon the average amount of such notes. Every
national banking association having outstanding circulating notes se
cured by a deposit of other securities than United States bonds shall
make monthly returns, under oath of its president or cashier, to the
Treasurer of tne United States, in such form as the Treasurer may pre
scribe, of the average monthly amount of its notes so secured in circu
lation; and it shall be the duty of the Comptroller of the Currency to
cause such reports of notes in circulation to oe verified by examination
of the bank’s records. The taxes received on circulating notes secured
otherwise than by bonds of the United States shall be paid into the
Division of Redemption of the Treasury and credited ana added to the
reserve fund held for the redemption of United States and other notes.”
HALF-YEARLY RETURN OF CIRCULATION [deposits and capi
tal stock],

446. Sec. 5215.—In order to enable the Treasurer to 18£cte
assess the duties imposed by the preceding section, each « ; ’u'stat.
association shall, within ten days from the first days of *
January and July of each year, make a return, under the
oath of its president or cashier, to the Treasurer of the
United States, in such form as the Treasurer may pre
scribe, of the average amount of its notes in circulation,

[and of the average amount of its deposits, and of the aver
age amount of its capital stock, beyond the amount invested
in United States hands), for the six months next preceding
the most recent first day of January or July. Every asso
ciation which fails so to make such return shall be liable
to a penalty 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 col
lected of other corporations under the laws of the United
States.
N o t e .—The taxes on the average amount of deposits and capital
stock were repealed by the act of March 3,1883.

PENALTY FOR FAILURE TO MAKE RETURN.

447. Sec. 5216.— Whenever any association fails to lg^ ‘
make the half-yearly return required by the preceding 13 stat. l .’, ni. ’
section, Hie duties to be paid by such association shall be
assessed upon the amount of notes delivered to such asso
ciation by the Comptroller of the Currency, [and upon ihe

highest amount of its deposits and capital stock, to be ascer
tained in such manner as the Treasurer may deem best].
N o t e .— See note under section 5215 stating that tax on deposits and
capital stock had been repealed.

ENFORCING TAX ON CIRCULATION.

448. Sec. 5217.— Whenever an association fails to pay 18&*.
the duties imposed by the three preceding sections, the 13 sut. l.’, u i. ’
sums due may be collected in the manner provided for the

REGULATION OF THE BANKING BUSINESS.

collection of United States taxes from other corporations;
or the Treasurer may reserve the amount out or the inter
est, as it may become due, on the bonds deposited with
him by such defaulting association.
REFUNDING EXCESS TAX.

449. Sec. 5218.— In all cases where an association has
paid or may pay in excess of what may be or has been
found due from it, on account of the duty required to be
paid to the Treasurer of the United States, the associa
tion may state an account therefor, which, on being certi
fied by the Treasurer of the United States, and found
correct bv the First Comptroller of the Treasury, shall
be refunded in the ordinary manner by warrant on the
Treasury.

s’tat. i., six. ’

NO TAX TO BE PAID BT INSOLVENT BANKS.
1. 1879.

ACT MARCH

450. Sec. 22.— That whenever and after any bank has
i87», see. as si ceased to do business by reason o f insolvency or bankstat.L.,36i.
ruptcy, no tax shall be assessed or collected, or paid into
the Treasury of the United States, on account of such
bank, which shall diminish the assets thereof necessary
for the full payment of all its depositors; and such tax
shall be abated from such national banks as are found by
the Comptroller of the Currency to be insolvent; * * *.
STATE TAXATION.

m fe uS* sec

451. Sec. 5219.—Nothing herein shall prevent all the
shares in any association from being included in the valuio, ation of the personal property of tne owner or holder of
ue^e.7; 14stat. such shares, m assessing taxes imposed b y authority.of
the State within which the association is located; but the
legislature of each State may determine and direct the
manner and place of taxing all the shares of national
banking associations located within the State, subjeot
only to the two restrictions, that the taxation shall not be
at a greater rate than is assessed upon other moneyed
capital in the hands of individual citizens of such State,
and that the shares of any national banking association
owned b y nonresidents of any State shall be taxed in the
city or town where the bank is located, and not elsewhere.
Nothing herein shall be construed to exempt the real
property of associations from either State, county, or mu
nicipal taxes, to the same extent, according to its value,
as other real property is taxed.

’ i3* st»i
Act f * .

l .;

REGULATION OF THE BANKING BUSINESS*

XBGnnjLXiajr car

x h e bajsklhg busotess *

CHAPTER V.
DISSOLUTION A N D RECEIVER SH IP.

500. 5220. Two-thirds vote required for
liquidation.
501. 5221. Notice of voluntary liquida
tion.
502. 5222. Deposit of lawful money to
redeem circulation.
503. 5223. No deposit required for con
solidation.
504. 5224. Reassignment of bonds and
redemption of notes of liqui
dating banks.
505. Act June 20, 1874. Duty of Treas
urer, Assistant Treasurer,
etc., to return notes of failed
or liquidatingbanks to Treas
ury for redemption.
506. 5225. Destruction of redeemed
notes.
507. 5226. Protest of bank circulation.
508. 5227. Bonds forfeited if circula
tion is dishonored. Exami
nation by special agent.
509. 5228. Suspension of business after
default.
510. 5229. Notice to present circulation
for redemption. Cancella
tion *f bonds.
511. 5230. Sale of bonds at auction.
First lien for redeeming cir
culation.
512. 5231. Bonds may be sold at private
sale.
513. 5232. Disposal of redeemed notes.
Regulations for redemption
records.

514. 5233. Redeemed notes to be can
celed.
515. 5234. Appointment and duties of
receivers.
516. 5235. Notice to creditors of insolvent
banks to present claims.
517. 5236. Dividends. Distribution of
assets of insolvent banks.
518. 5237. When bank may enjoin fur
ther proceedings.
519. 5238. Fees and expenses.
520. Act June 30, 1876. When receiver
may be appointed.
521. Act June 30, 1876. Creditor’s bill
against shareholders.
522. Act June 30,1876, as amended 1892.
1897. Appointment, quali
fication, and duties of share
holders’ agent.
523. Act March 29, 1886. Receiver may
purchase property to protect
nis trust.
524. Act March 29, 1886. Approval of
request.
525. Act March 29, 1886. Payment.
526. 5239. Penalty for violation of this
title. Forfeiture of charter.
Individual liability of di
rectors.
527. 5240. Appointment of examinera.
uompensation.#
528. 5241. Limitation of visitorial powers.
529. 5242. Transfers, when void. Illegal
preference of creditors.
530. 5243. Use of the title “ National.”

TWO-THIRDS TOTE REQUIRED FOR LIQUIDATION.

500. Sec. 5220.—Any association may go into liquida- imfc.
sec.
tion and be closed b y the vote of its shareholders owning
13 sta^* L*»
two-thirds of its stock.
«
N ote .— For enforcement of shareholders’ liability when bank is in
liquidation see act of June 30, 1876, following Revised Statutes, 5238.

NOTICE OP VOLUNTARY LIQUIDATION.

501. Sec. 5221.— Whenever a vote is taken to go into 18^ctc
liquidation it shall be the duty of the board of directors « ; ’1 3 'stat’. u,
to cause notice of this fact to be certified, under the seal111
of the association, by its president or cashier, to the
Comptroller of the Currency, and publication thereof to
be made for a period of two months in a newspaper pub
lished in the city of New York, and also in a newspaper
mblished in the city or town in which the association is
ocated, or if no newspaper is there published, then in the

DISSOLUTION AND RECEIVERSHIP.

newspaper published nearest thereto, that the 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.
DEPOSIT OP LAWFUL MONET TO REDEEM CIRCULATION.

mm*®. J r J :
&02* Sec. 5222.—W ithin six months from the date of
42.43; 13stat.l.', the vote to go into liquidation, the association shall deAct Jidv i4. posit with the Treasurer of the United States, lawful
stat l. m !
money of the United States sufficient to redeem all its
*'
outstanding circulation. The Treasurer shall execute
duplicate receipts for money thus deposited and deliver
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; and the money
shall be paid into the Treasury of the United States, ana
placed to the credit of such association upon redemption
account.
NO DEPOSIT REQUIRED FOR CONSOLIDATION.

18to? c.,U2&; Vi
®ec* 5223.—An association which is in good faith
stat. l.‘, 274.’
winding up its business for the purpose of consolidating
with another association shall not be required to deposit
lawful money for its outstanding circulation; but its as
sets and liabilities shall be reported by the association
with which it is in process of consolidation.
REASSIGNMENT OF BONDS AND REDEMPTION OF NOTES
OF LIQUIDATING BANKS.

i8wc.loffsec.42-’
Sec. 5224 [as amended 1875],— Whenever a suffi13stat. l’ 112. ' cient deposit of lawful money to redeem the outstanding
i87s!c. so-is stat! circulation of an association proposing to close its busi*“»320*
ness has been made, the bonds deposited by the associa
tion to secure payment of its notes shall be reassigned to
it, in the manner prescribed by section fifty-one hundred
and sixty-two. And thereafter the association and its
shareholders shall stand discharged from all liabilities
upon the circulating notes, and those notes shall be re
deemed at the Treasury of the United States. And if
any such bank shall fail to make the deposit and take up
its bonds for thirty days after the expiration of the time
specified, the Comptroller of the Currency shall have
power to sell the bonds pledged for the circulation of
said bank, at public auction in New York City, and, after
providing for the redemption and cancellation of said
circulation and the necessary expenses of the sale, to
pay over any balance remaining to the bank or its legal
representatives.
DUTY OF TREASURER, ASSISTANT TREASURERS, ETC.,
TO RETURN NOTES OF FAILED OR LIQUIDATING
BANKS TO TREASURY FOR REDEMPTION. ACT JUNE
20, 1874.

isMc. MMeo*! ®05. Sec. 8.—* * * And it shall be the duty of the
is stat. l.; 125'. ’ Treasurer, assistant treasurers, designated depositaries,
and national bank depositaries of the United States

DISSOLUTION AND RECEIVERSHIP.

♦ * * to assort and return to the Treasury for re
demption the notes of such national banks as have failed,
or gone into voluntary liquidation for the purpose of
winding up their affaire, ana of such as shall hereafter so
fail or go into liquidation.
DESTRUCTION OF REDEEMED NOTES.

606. Sec. 5225 [as amended 1877].—Whenever the
Treasurer has redeemed any of the notes of an association 13 siat. L '1 1 2 . '
which has commenced to close its affairs under the five lg^.e^wstat;
preceding sections, he shall cause the notes to be mutilated L-»
’
and charged to the redemption account of the associa
tion; and all notes so redeemed by the Treasurer shall,
every three months, be certified to and [burned] in the
manner prescribed in section fifty-one hundred and
eighty-four.
N o t e .—See act of June 23,1874, following Revised Statutes, section
5184, directing that bank notes be macerated and not burned.

PROTEST OF BANK CIRCULATION.

507. Sec. 5226.—Whenever any national banking association fails to redeem in the lawful money of the united 13 siat. l . \ u 3. ’
States any of its circulating notes, upon demand of pay
ment duly made during the usual hours of business, at tne
office of such association, or at its designated place of re
demption, the holder may cause the same to be protested,
in one package, by a notary public, unless the president or
cashier of the association whose notes are presented for
payment, [or the president or cashier of the association at
the place%t which they are redeemable) offers to waive de
mand and notice of the protest, and, in pursuance of such
offer, makes, signs, and delivers to the party making such
demand an admission, in writing, stating tne time of the
demand, the amount demanded, and the fact of the non
payment thereof. The notary public, on making such
protest, or upon receiving such admission, shall forthwith
forward such admission or notice of protest to the Comp
troller of the Currency, retaining a copy thereof. If,
however, satisfactory proof is produced to the notary
public that the payment of the notes demanded is re
strained by order of any court of competent jurisdiction,
he shall not protest the same. When the holder of any
notes causes more than one note or package to be pro
tested on the same day, he shall not receive pay for more
than one protest.
Note.—Circulation redeemable only at Treasury or over own coun
ter. Designated places of redemption have not existed since act June
20, 1874. (See note under paragraph 401, ante.)
BONDS FORFEITED IF CIRCULATION IS DISHONORED.
EXAMINATION BT SPECIAL AGENT.

508. Sec. 5227.— On receiving notice that any national 18^ f c#
banking association has failed to redeem any of its circu- 47; 13 stat. l .,114
lating notes, as specified in the preceding section, the
Comptroller of the Currency, with the concurrence of the
44326°—S. Doc. 412,64-1------7

DISSOLUTION AND RECEIVERSHIP.

Secretary of the Treasury, may appoint a special agent,
of whose appointment immediate, notice shall be given to
such association, who shall immediately proceed to ascer
tain whether it nas refused to pay its circulating notes in
the lawful money of the United States, when demanded,
and shall report to the Comptroller the tact so ascertained.
If, from such protest, and the report so made, the Comp
troller is satisfied that such association has refused to pay
its circulating notes and is in default, he shall, within
thirby days alter he has received notice of such failure,
declare the bonds deposited by such association forfeited
to the United States, and they shall thereupon be so
forfeited.
SUSPENSION OF BUSINESS AFTER DEFAULT.

lswfc.
see!
Sec. 5228 [as amended 1875].—After a default on
4e;iistat!iLii3. the part of an association to pay any of its circulating
cflb; is*stat. if) notes has been ascertained by the Comptroller, and notice
m
thereof has been given by him to the association, it shall
not be lawful for the association suffering the same to pay
out any of its notes, discount any notes or bills, or other
wise prosecute the business of banking, except to receive
and safely keep money belonging to it, and to deliver
special deposits.
NOTICE TO PRESENT CIRCULATION FOR REDEMPTION.
CANCELLATION OF BONDS.

iooe sec

47; 13 ‘ stat.
1W#

L.‘

510. Sec. 5229.—Immediately upon declaring the bonds
of an association forfeited for nonpayment of its notes,
the Comptroller shall give notice, in such mann#r as the
Secretary of the Treasury shall, by general rules or other
wise, direct, to the holders of the circulating notes of such
association, to present them for payment at the Treasury
of the United States; and the same shall be paid as pre
sented in lawful money of the United States; whereupon
the Comptroller may, m his discretion, cancel an amount
of bonds pledged by such association equal at current
market rates, not exceeding par, to the notes paid.
SALE OF BONDS AT AUCTION.
ING CIRCULATION.

FIRST LIEN FOR REDEEM-

i864?c. lOMecs. *>11‘ Sec. 5280.—Whenever the Comptroller has becom e
47,A i3stat. l.; satisfied, by the protest or the waiver and admission
111

specified in section fifty-two hundred and twenty-six, or
by the report provided for in section fifty-tw o hundred
and twenty-seven, that any association nas refused to
pay its circulating notes, he may, instead of canceling its
bonds, cause so much of them as may be necessary to
redeem its outstanding notes to be sold at public auction
in the city of New York, after giving thirty days’ notice of
such sale to the association. For any deficiency in the
proceeds of all the bonds of an association, when thus
sold, to reimburse to the United States the amount
expended in paying the circulating notes of the associa
tion, the United States shall have a paramount lien upon

DISSOLUTION AND RECEIVERSHIP.

all its assets; and such deficiency shall be made good out
of such assets in preference to any and all other claims
whatsoever, except the necessary costs and expenses of
administering the same.
BONDS MAT BE SOLD AT PBITATE SALE.

512. Sec. 5231.— The Comptroller jnav, if he deems it lg£f*c 5 5 * ^
for the interest of the United States, sell at private sale 49; 'is‘ stat. ul
any of the bonds of an association shown to have m ade1M*
default in paying its notes, and receive therefor either
money or tne circulating notes of the association. But
no such bonds shall be sold by private sale for less than
par, nor for less than the market value thereof at the
time of sale; and no sales of any such bonds, either public
or private, shall be complete until the transfer of the
bonds shall have been made with the formalities pre
scribed by sections fifty-one hundred and sixty-two, fiftyone hundred and sixty-three, and fifty-one hundred and
sixty-four.
DISPOSAL OF REDEEMED NOTES;
BEDEMPTION BECOBDS.

REGULATIONS FOB

513. Sec. 5232.— The Secretary of the Treasury may, 18& \ * 06Oseol
from time to time, make such regulations respectmg the 47; 13 ’ stat.
disposition to be made of circulating notes after presenta-114#
tion at the Treasury of the United States for payment,
and respecting the perpetuation of the evidence of the
payment thereof, as may seem to him proper.
BEDEEMED NOTES TO BE CANCELED.

514. Sec. 5233.— All notes of national banking associa- 18^*c ^ ^
tions presented at the Treasury of the United States for 47; 13 *stat. l.‘
payment shall, on being paid, be canceled.
U4‘
APPOINTMENT AND DUTIES OF BECEITEBS.

515. Sec. 5234.— On becoming satisfied, as specified in 1^ tc%i06e*cl
sections fifty-two hundred and twenty-six ana fifty-two
13‘ stat. u,
hundred and twenty-seven, that any association h as114*
refused to pay its circulating notes as therein mentioned,
and is in default, the Comptroller of the Currency may
forthwith appoint a receiver, and require of him such bond
and security as he deems proper. Such receiver, under
the direction of the Comptroller, shall take possession
of the books, records, and assets of every description
of such association, collect all debts, dues, and claims
belonging to it, and, upon the order of a court of record
of competent jurisdiction, may sell or compound all bad
or doubtful debts, and, on a like order, may sell all the real
and personal property of such association, 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. Such receiver shall pay over all
money so made to the Treasurer of the United States,
subject to the order of the Comptroller, and also make
report to the Comptroller of all his acts and proceedings.

DISSOLUTION AND RECEIVERSHIP.

Provided. That the Comptroller may, if he deems
’ proper, deposit any of the money so maae in any regular
Government depositary, or in any State or national bank
either of the city or town in which the insolvent bank
was located, or of a city or town as adjacent thereto as
racticable; if such deposit is made he shall require the
epositaiy to deposit United States bonds or other satis
factory securities with the Treasurer of the United States
for the safe-keeping and prompt payment of the m oney
so deposited. Such depositary shall pay upon such
money interest at such rate as the Comptroller may pre
scribe, not less, however, than two per centum per annum
upon the average monthly amount of such deposits.

N ote .—Other provisions authorizing the appointment of receiyers
of national banks and relating to powers and duties of receivers and
agents will be found in the act of June 30, 1876, as amended August
3,1892, and March 2,1897, and the act of March 29,1886. Both these
acts are set forth following section 5238, Revised Statutes.
A receiver may also be appointed, under the provisions of section
5234 of the Revised Statutes of the United States, for the following
violations of law:
Where the capital stock o£ a national bank has not been fuller paid
in and it is thus reduced below the legal minimum and remains so
for thirty days. (Sec. 5141, R. S.)
For failure to make good the lawful money reserve within thirty
days after notice. (Sec. 5191, R. S.)
Where a bank purchases or acquires its own stock to prevent loss
upon a debt previously contracted in good faith, and the same is not
sold or disposed of within six months from the time of its purchase.
(Sec. 5201, R. S.)
For failure to make good any impairment in its capital stock and
refusing to go into liquidation within three months after receiving
notice. (Sec. 5205, R. S.)
For false certification of checks by any officer, clerk, or agent.
(Sec. 5208, R. S.)

NOTICE TO CREDITORS OF INSOLVENT BANES TO PRE
SENT CLAIMS.

516, Sec. 5235.—The Comptroller shall, upon appoint
ing a receiver, cause notice to be given, by advertisement
in such newspapers as he may direct, for three consecu
tive months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof.
DIVIDENDS; DISTRIBUTION OF ASSETS OF INSOLVENT
BANKS.

£
517. Sec. 5236.—From time to time, after full provi
s io n has been first made for refunding to the United
States any deficiency in redeeming the notes of such asso
ciation, the Comptroller shall make a ratable dividend of
the money so paid over to him by such receiver on all such
claims as may have been proved to his satisfaction or ad
judicated in a court of competent jurisdiction, and, as
the proceeds of the assets of such association are paid
over'to him, shall make further dividends on all claims
previously proved or adjudicated; and the remainder of
the proceeds, if any, shall be paid over to the shareholders

DISSOLUTION AND RECEIVERSHIP.

101

of such association or their legal representatives, in pro
portion to the stock by them respectively held.
WHEN BAtfK MAT ENJOIN FURTHER PROCEEDINGS.

518. Sec. 5237.— Whenever an association against 1^®tc
*■
which proceedings have been instituted, on account of any
stat. l .,
alleged refusal to redeem its circulating notes as aforesaid,1U*
denies having failed to do so, it may, at any time within
ten days after it has been notified of the appointment of
an agent, as provided in section fifty-two nundred and
twenty-seven, apply to the nearest circuit, or district, or
Territorial court oi the United States to enjoin further
proceedings in the premises; and such court, after citing
the Comptroller of the Currency to show cause why fur
ther proceedings should not be enjoined, and after the
decision of the court or finding of a jury that such asso
ciation has not refused to redeem its circulating notes,
when legally presented, in the lawful money of the
United States, shall make an order enjoining tne Comp
troller, and any receiver aoting under Ids direction, from
all further proceedings on account of such alleged refusal.
N o t e .—See also sections 24, judiciary act passed March 31,1911, and
756, Revised Statutes, paragraphs 701 and 702, post.

FEES AND EXPENSES.

519. Sec. 5238.— All fees for protesting the notes issued 18^ctc Jgge
by any national banking association shall be paid by the si; Vsta£ l.,
person procuring the protest to be made, ana such asso-115‘
ciation shall be liable therefor; but no part of the bonds
deposited by such association shall be applied to the pay
ment of such fees. All expenses of anv preliminary or
other examinations into the condition of any association
shall be paid by such association. All expenses of any
receivership shall be paid out of the assets of such asso
ciation before distribution of the proceeds thereof.
WHEN RECEIVER MAY BE APPOINTED.
1876.

ACT JUNE 30,

520. Sec. 1.— That whenever any national banking a s-18$*
sociation shall be dissolved, and its rights, privileges, and i9siat. l.' 63/
franchises declared forfeited, as prescribed in section
fifty-two hundred and thirty-nine of the Revised Statutes
of the United States, or whenever any creditor of any
national banking association shall have obtained a judg
ment against it in any court of record, and made appli
cation, accompanied by a certificate from the clerk of the
court stating that such judgment has been rendered and
has remained unpaid for the space of thirty days, or
whenever the Comptroller shall become satisfied of the
insolvency of a national banking association, he may,
after due examination of its affairs, in either case, appoint
a receiver, who shall proceed to close up such association,
and enforce the personal liability of tne shareholders, as
provided in section fifty-two hundred and thirty-four of
said statutes.

102

DISSOLUTION AND EECEIVEB8HIP.
CREDITOR’ S BILL AGAINST SHAREHOLDERS.
30, 1876.

ACT JUNE

wrote. isj'Seo?! 521. Sec. 2.—That when any national banking associa19 stat. L.; 63.' ’ tion shall have gone into liquidation under the provisions
o f section five thousand two hundred and twenty of
said statutes, the individual liability of the shareholders
provided for by section fifty-one hundred and fifty-one
of said statutes may be enforced by any creditor ol such
association, by bill m equity, in the nature of a creditor’s
bill, brought by such creditor on behalf of himself and of
all other creditors of the association, against the share
holders thereof, in any court of the United States having
original jurisdiction m equity for the district in which
sucn association may have been located or established.
APPOINTMENT, QUALIFICATION, AND DUTIES OF SHARE.
HOLDERS' AGENT. ACT JUNE 30, 1876, AS AMENDED
1898, 1897.

iw«*c
522. See. 8.— That whenever any association shall have
» stall/’ 83,’a* been or shall be placed in the hands of a receiver, as prour^st!stetfif’, vided in section fifty-two hundred and thirty-four and
*wifitntr'f2’ other sections of the Revised Statutes of the United
aoo/
' ’’ States, and when, as provided in section fifty-two hun
dred and thirty-six thereof, the Comptroller of the Cur
rency shall have paid to each and every creditor of such
association, not including shareholders who are creditors
of such association, whose claim or claims as such creditor
shaU have been proved or allowed as therein prescribed,
the full amount of such claims, and all expenses of the
receivership and the redemption of the circulating notes
of- such association shall have been provided for by de
positing lawful money of the United States with the
Treasurer of the United States, the Comptroller of the
Currency shall call a meeting of the shareholders of such
association by giving notice thereof for thirty days in a
newspaper pubushea in the town, city, or county where
the business of such association was carried on, or if no
newspaper is there published, in the newspaper published
nearest thereto. At such meeting the shareholders shall
determine whether the receiver shall be continued and
shall wind up the affairs of such association, or whether
an agent shall be elected for that purpose, and in so de
termining the said shareholders shall vote by ballot, in
ergon or by proxy, each share of stock entitling the
older to one vote, and the m ajority of the stock in value
and number of shares shall be necessary to determine
whether the said receiver shall be continued, or whether
an agent shall be elected. In case such m ajority shall
determine that the said receiver shall be continued, the
said receiver shall thereupon proceed with the execution
of his trust, and shall sell, dispose of, or otherwise collect
the assets of the said association, and shall possess all the
powers and authority, and be subject to all the duties and
liabilities originally conferred or imposed upon him by his

DISSOLUTION AND RECEIVERSHIP.

appointment as such receiver, so far as the same remain
applicable. In case the said meeting shall, by the vote
of a m ajority of the stock in value and number of shares,
determine that an agent shall be elected, the said meeting
shall thereupon proceed to elect an agent, voting by b a t
lot, in person or by proxy, each share of stock entitling
the holder to one vote, and the person who shall receive
votes representing at least a m ajority of stock in value
and number shall be declared the agent for the purposes
hereinafter provided; and whenever any of the share
holders of the association shall, after the election of such
agent, have executed and filed a bond to the satisfaction
of the Comptroller of the Currency, conditioned for the
payment and discharge in full of each and every claim
that may thereafter be proved and allowed by and before
a competent court, and for the faithful performance of
all and singular the duties of such trust, the Comptroller
and the receiver shall thereupon transfer and deliver to
such agent all the undivided or uncollected or other as
sets of such association then remaining in the hands or
subject to the order and control of said Comptroller and
said receiver, or either of them; and for this purpose said
Comptroller and said receiver are hereby severally em
powered and directed to execute any deed, assignment,
transfer, or other instrument in writing that may be nec
essary and proper; and upon the execution and delivery
of such instrument to the said agent the said Comptroller
and the said receiver shall by virtue of this act be dis
charged from any and all liabilities to such association
and to each and all the creditors and shareholders thereof.
Upon receiving such deed, assignment, transfer, or
other instrument the person elected such agent shall hold,
control, and dispose of the assets and property of such
association whicn he may receive under the terms hereof
for the benefit of the shareholders of such association,
and he may, in his own name, or in the name of such
association, sue and be sued and do all other lawful acts
and things necessary to finally settle and distribute the
assets and property in his hands, and may sell, compro
mise, or compound the debts due to such association, with
the consent and approval of the circuit or district court
of the United States for the district where the business of
such association was carried on, and shall at the conclu
sion of his trust render to such district or circuit court
a full account of all his proceedings, receipts, and expendi
tures as such agent, which court shall, upon due notice,
settle and adjust such accounts and discharge said agent
and the sureties upon said bond. And in case any such
agent so elected snail refuse to serve, or die, resign, or
be removed, any shareholder may call a meeting of the
shareholders of such association in the town, city, or vil
lage where the business of the said association was car
ried on, by giving notice thereof for thirty days in a
newspaper published in said town, city, or village, or if

103

DISSOLUTION AND RECEIVERSHIP.

no newspaper is there published, in the newspaper pub
lished nearest thereto, at which meeting the shareholders
shall elect an agent, voting by ballot, in person or by
proxy, each share of stock entitling the holder to one
vote, and when such agent shall have received votes rep
resenting at least a m ajority of the stock in value and
number of shares, and shall nave executed a bond to the
shareholders conditioned for the faithful performance
of his duties, in the penalty fixed by the shareholders at
said meeting, with two sureties, to be approved by a
judge of a court of record, and file said bond in the office
of the clerk of a court of record in the county where the
business of said association was carried on, he shall have
all the rights, powers, and duties of the agent first elected
as hereinbefore provided. At any meeting held as here
inbefore provided administrators or executors of deceased
shareholders may act and sign as the decedent might have
done if living, and guardians of minors and trustees of
other persons may so act and sign for their ward or wards
or cestui que trust. The proceeds of the assets or prop
erty of any such association which may be undistributed
at the time of such meeting or may be subsequently re
ceived shall be distributed as follow s:
“ First. To pay the expenses of the execution of the
trust to the date of such payment.
“ Second. To repay any amount or amounts which have
been paid in by any shareholder or shareholders of such
association upon and by reason of any and all assess
ments made upon the stock of such association b y the
order of the Comptroller of the Currency in accordance
with the provisions of the statutes of the United States;
and
“ Third. The balance ratably among such stockholders,
in proportion to the number of shares held and owned by
each. Such distribution shall be made from time to time
as the proceeds shall be received and as shall be deemed
advisable by the said Comptroller or said agent.”
o t e .—Other sections of act June 30, 1876:
Section 4 amends Revised Statutes, 5205.
Section 5 relates to counterfeit notes.
Section 6 relates to savings banks and trust companies, organized
under act of Congress.

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

523. Sec. 1.— That whenever the receiver of any national
’ bank duly appointed by the Comptroller of the Currency,
and who shall have duly qualified and entered upon the
discharge of his trust, snail find it in his opinion neces
sary, in order to fully protect and benefit his said trust,
to the extent of any and all equities that such trust may
have in any property, real or personal, by reason of any
bond, mortgage, assignment, or other proper legal claim
attaching thereto, and which said property is to be sold
under any execution, decree of foreclosure, or proper

DISSOLUTION AND KECEIVEBSHIP.

105

order of any court of jurisdiction, lie may certify the
facts in the case, together with his opinion as to the value
of the property to he sold, and the value of the equity his
said trust may have in the same, to the Comptroller of
the Currency, together with a request for the right and
authority to use and employ so much of the money of
said trust as may be necessary to purchase such property
at such sale.
APPROVAL OF REQUEST. ACT MARCH 29, 1886.

524. Sec. 2.—That such request, if approved by the 1$ tc
Comptroller of the Currency, snail be, together with the 2* stat.
certificate of facts in the case, and his recommendation as
to the amount of money which, in his judgment, should be
so used and employed, submitted to the Secretary of the
Treasury, and if tne same shall likewise be approved by
him, the request shall be by the Comptroller of the Cur
rency allowed, and notice thereof, with copies of the
request, certificate of facts, and indorsement of approvals,
shall be filed with the Treasurer of the United States.

s.*

PAYMENT. ACT MARCH 29, 1886.

525. Sec. 3.—That whenever any such request shall be 1^ !te
allowed as hereinbefore provided, the said Comptroller of 2*skt.
the Currency shall be, and is, empowered to draw upon
and from such funds of any such trust as may be depos
ited with the Treasurer of the United States for the
benefit of the bank in interest, to the amount as may be
recommended and allowed and for the purpose for which
such allowance was made: Provided, however, That all
payments to be made for or on account of the purchase of
any such property and under any such allowance shall be
made by the Comptroller of the Currency direct, with the
approval of the Secretary of the Treasury, for such pur
pose only and in such manner as he may determine and
order.

' *

PENALTY FOR VIOLATION OF THIS TITLE; FORFEITURE
OF CHARTER; INDIVIDUAL LIABILITY OF DIRECTORS.

526. Sec. 5239.—If the directors of any national banking association shall knowingly violate, or knowingly 13 skt. l.', lie. ’
permit any of the officers, agents, or servants of the asso
ciation to violate any of the provisions of this Title, all
the rights, privileges, and franchises of the association
shall be thereby forfeited. Such violation shall, how
ever, be determined and adjudged by a proper circuit,
district, or Territorial court of the United States, in a
suit brought for that purpose by the Comptroller of the
Currency, in his own name, before the association shall be
declared dissolved. And in cases of such violation, every
director who participated in or assented to the same shall
be held liable in his personal and individual capacity for
all damages which the association, its shareholders, or any
other person, shall have sustained in consequence of sucn
violation.

106

DISSOLUTION AND RECEIVERSHIP.
APPOINTMENT OF EXAMINERS, COMPENSATION.

u®f*c
527. Sec. 5240 [as amended 1918].—The Comptroller
is slal.L’ n«. ’ of the Currency, with the approval of the Secretary of the
8#; isstit! Treasury, shall appoint examiners who shall examine
L'Act®'D«! 23 every member bank at least twice in each calendar year
i8i3, sec. a; 3$and oftener if considered necessary: Provided, however,
stat. l., 271. 'n ia t1 ^ e Federal Reserve Board may authorize exam
ination by the State authorities to be accepted in the
case of State banks and trust companies and may at any
time direct the holding of a special examination of
State banks or trust companies tnat are stockholders in
any Federal reserve bank. The examiner making the
examination of any national bank, or of any other mem
ber bank, shall have power to make a thorough exam
ination of all the affairs of the bank and in doing so he
shall have power to administer oaths and to examine
any of the officers and agents thereof under oath and
shall make a full and detailed report of the condition of
said bank to the Comptroller of the Currency.
The Federal Reserve Board, upon the recommendation
of the Comptroller of the Currency, shall fix the salaries
of all bank examiners and make report thereof to Con
gress. Hie expense of the examinations herein pro
vided for shall be assessed by the Comptroller of the
Currency upon the banks examined in proportion to
assets or resources held by the banks upon the dates of
examination of the various banks.
In addition to the examinations made and conducted
by the Comptroller of the Currency, every Federal reserve
bank may, with the approval of the Federal reserve
agent or the Federal Reserve Board; provide for special
examination of member banks within its district. The
expense of such examinations shall be borne by the
bank examined. Such examinations shall be so con
ducted as to inform the Federal reserve bank of the
condition of its member banks and of the lines of credit
which are being extended by them. Every Federal re
serve bank shall at all times furnish to the Federal Reserve
Board such information as may be demanded concerning
the condition of any member bank within the district
of the said Federal reserve bank.
No bank shall be subject to any visitatorial powers
other than such as are authorized by law, or vested in
the courts of justice or such as shall be or shall have
been exercised or directed by Congress, or by either
House thereof or by any committee of Congress or of
either House duly authorized.
The Federal Reserve Board shall, at least onoe each
year, order an examination of each Federal reserve bank,
and upon joint application of ten member banks the
Federal Reserve Board shall order a special examination
and report of the condition of any Federal reserve bank.

DISSOLUTION AND KECBTVEBSHIP.

107

LIMITATION OS' YISITO&IAL POWERS.

528. Sec. 5241.—No association shall be subject to
mb* «*.
any visitorial powers other than such as are aut hori zedst ai - l-!
by this Title, or are -vested in the courts of justice.
N o t e .— See also the fourth paragraph in section 5240, immediately
preceding.

TRANSFERS, WHEN VOID;
CREDITORS.

ILLEGAL PREFERENCE OF

529. Sec. 5242.—All transfers of the notes, bonds, bills
of exchange, or other evidences of debt owing to any®;
national banking association, or of deposits to its credit;
all assignments of mortgages, sureties on real estate, or
of judgments or decrees in its favor; all deposits of
money, bullion, or other valuable thing for its use, or for
the use of any of its shareholders or creditors; and all
payments of money to either, made after the commission
of an act of insolvency, or in contemplation thereof, made
with a view to prevent the application of its assets in the
manner prescribed by this chapter, 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;
and no attachment, injunction or execution, shall be
issued against such association or its property before
final judgment in any suit, action, or proceeding, in any
State, county, or municipal court.

7jgg9^
l,

USE OF THE TITLE “ NATIONAL.”

530. Sec. 5243.—All banks not organized and trans- j^ 0*,
*•
acting business under the national currency laws, or n sUt. l4«h. '
under this Title, and all persons or corporations doing
the business of bankers, brokers, or savings institutions,
except savings banks authorized by Congress to use the
word “ national” as a part of their corporate name, are
prohibited from using the word “ national” as a portion
of the name or title of such bank, corporation, nrm, or
partnership; and any violation of this prohibition com
mitted after the third day of September, eighteen hun
dred and seventy-three, snail subject the party charge
able therewith to a penalty of fifty dollars for each day
during which it is committed or repeated.

108

DISSOLUTION AND BECEIVEB8HIP.

DISSOLUTION AND BECEIVEBSHIP.

DISSOLUTION AND RECEIVERSHIP*

CHAPTER VL
THE FEDERAL RESERVE ACT.

As amended b y the acts approved August 4 and August 15, 1914,
March 3,1915, September 7, 1916, and June 21, 1917.
000. Title of act.
001. Definition of terms.
602.

002a.
602b.
602c.
602d.
602e.
602f.

602h.

602i.
602k.
6021.
602m.
602n.
603.
604.
604a.
604b.
604c.
604d.
604e.
604f.

604i.
605.
605a.
605b.
605c.
605d.
605e.
606.
607.
607a.

Federal reserve districts—organi
zation committee.
Authority of committee.
Acceptance of terms of act.
Subscriptions to capital stock.
Responsibility of shareholders.
Failure of national banks to accept
terms of act—penalty.
Failure of national banks to be
come member banks*—penalty.
Public subscription®—when ac
cepted.
Limit to stock held by any indi
vidual copartnership or corpora
tion other than a member bank.
Public stock, how transferable.
Allotment of stock to United
States.
Voting power.
Transfer of stock.
Minimum capital of Federal re
serve bank.
Reserve cities, status of.
Authority of organization com
mittee to employ assistants.
Branches of Federal reserve bank’ .
Organization of Federal reserve
banks. Application for stock
by national oanks.
Organization certificate.
Powers of Federal reserve banks.
Directors of Federal reserve banks.
Classification of directors.
Election of class A and class £
directors.
Appointment of class C directors.
Federal reserve agent, duties of.
Compensation of directors.
Organization of Federal reserve
banks. Authority of organiza*tion committee.
First meeting of directors. Des
ignation of terms of office.
Increase and decrease of capital
stock.
Stock not transferable.
Increase of capital stock.
Applications for capital stock.
Certificate of increase in stock of
Federal reserve bank.
Reduction of capital stock.
Insolvency of member bank.
Division of earnings.
Tax exemptions.

609b.
609c.

609d.
609e.
609f.

610.
610a.
610b.
610c.
610d.

610e.
610f.
610g.
610h.
611.
611a.

611b.
611c.
611d.
611e.
611f.

Conversion of State banks into
national banks.
State banks may subscribe.
Applications for membership.
Regulations and restrictions.
Member banks required to make re
ports to Federal Reserve Board
and subject to examination by
examiners appointed by the
board and such banks under
officers, agents, and employees
subject to penalties of section
•5209.
Failure to comply with regula
tions—penalty.
Withdrawal from membership in
Federal reserve bank by State
bank or trust company.
Amount of capital Required to en
able State bank to become mem
ber bank.
Rights, powers, and liabilities of
State Banks which become mem
ber banks.
Appointment, compensation and
qualification of members of Fed
eral Reserve Board.
Governor and vice governor; offi
cers; qualification of members.
Provision for expenses.
First meeting of board; Secretary
of Treasury chairman of board.
Member of Federal Reserve Board
not to be officer, director, or
stockholder in any banking in
stitution or trust company.
Vacancies on board—how filled.
Powers of Secretary of Treasury.
Federal Reserve Board to make
annual report to Speaker of the
House of Representatives.
Comptroller of the Currency.
Powers of Federal Reserve Board.
Examination of books of Federal
reserve banks and member
banks. Board may require re
ports.
Rediscounts.
Suspension of reserve require
ments.
Issue and retirement of Federal
reserve notes.
Reserve cities.
Suspension or removal of officer
or director of a Federal reserve
bank.
I ll

112

THE FEDERAL RESERVE ACT.

611g. Writing off doubtful or worthless
assets.
611h. Suspension of operations of Federal
reserve bank.
611i. Requirement of bonds from Fed
eral reserve agents and authority
to make necessary regulations
under this act.
611i. General supervision.
61lk. Permit to national banks to act as
trustee, executor, administrator,
or registrar of stocks and bonds.
6111. Employment of attorneys, clerks,
etc., and provisions for payment
of salaries.
611m. When Federal Reserve Board may
permit member bank to carry in
Federal reserve bank a portion
of the reserve heretofore required
by law to be held in its own
vaults.
612. Federal advisory council.
612a. Powers of Federal advisory pouncil.
613. Powers of Federal reserve banks.
613a. Rediscounts—notes, drafts, and
bills of exchange.
613b. Acceptances
and
limitations
thereof.
613c. Exceptions as to limit of indebted
ness. Power of, to act as insur
ance agent, as real-estate loan
broker, and to accept drafts, etc.
614. Open-market operations.
615. Government deposits.
616. Federal reserve notes authorized.
616a. Applications for Federal reserve
notes.—Collateral security.
616b. Reserve requirements for Federal
reserve banks.
616c. Issue and redemption of Federal
reqprve notes. No Federal re
serve bank permitted to pay out
notes issued through another
Federal reserve bank.
616d. Deposits of gold with Treasurer for
redemption of Federal reserve
notes.
616e. Federal Reserve Board may grant
or reject application of Federal
reserve bank for Federal reserve
notes. Federal reserve notes
first lien on all the assets of the
bank.
616f. Reduction of note issues.
616g. Substitution of collateral.
616n. Preparation of Federal reserve
notes. Plates and dies to be
leader control of Comptroller of
Currency. Where notes are to
be deposited.
616i. Appropriation for expense of
printing national-bank notes
may be used for printing Federal
reserve notes.
616j. When Federal reserve bank shall
receive checks and drafts on
deposit at par.

616k. Charges for collection and for sale
of exchange.
6161. Federal Reserve Board may exer
cise functions of a Clearing
House and may require Federal
Reserve Banks to exercise such
functions.
616m. Secretary of the Treasury to re
ceive deposits of sold coin or
gold certificates witn the Treas
urer or Assistant Treasurer of the
United States when tendered
by any Federal reserve bank oi
Federal reserve agent for credit
to its or his account with the
Federal Reserve Board.
617. National banks not required to
make deposit of United States
bonds pnor to commencement
of business.
618. Refunding bonds. Retirement of
circulating notes.
618a. Purchase of United States bonds
by Federal reserve banks.
618b. Issue of circulating notes to
Federal reserve banks on secur
ity of United States bonds. Cir
culating notes so issued obliga
tions of Federal reserve bank.
618c. Issue of one-year gold notes and 3
per cent bonds of the United
States in exchange for 2 per cent
United States bonds.
618d. Exchange of 3 per cent bonds for
one-year gold notes.
619. Bank reserves. Demand and time
deposits defined. Reserve re
quirements, when effective.
619a. Reserve requirements for banks
not in reserve cities.
619b. Reserve requirements for banks in
reserve cities.
619c. Reserve requirements for banks in.
central reserve cities.
619d. Member bank forbidden to keep on
deposit with nonmember bank,
a sum in excess of ten per cent
of its own capital and surplus or
to secure discounts for nonmem-,
ber bank.
619e. Withdrawal of reserve by member
bank.
619f. Reserve requirement, haw esti
mated.
619g. Reserve requirements for national
banks located in Alaska or out
side the continental United
States.
620. Redemption fund with Treasurer
not to be counted as reserve.
621. Bank examinations. Appointment
and powers of examiners. Ac
ceptance of reports of examina
tions by State authority.
621a. Salaries of bank examiners.
621b. Examinations b y Federal reserve
bank.

113

THE FEDERAL RESERVE ACT.

621c. Examinations of Federal reserve
banks.
622. Loans and gratuities to bank ex
aminers forbidden. Nationalbank examiners not permitted to
perform any other service for
compensation while holding
such office for any bank or officer
or employee thereof.
622a. Officers or employees not per
mitted to receive any fee or
other consideration in connec
tion with any business of the
bank other than the salary or
the director’s fee. Examiners
forbidden to disclose the names
of borrowers or the collateral for
loans to other than the proper
officers.
623. Liability of stockholders of
national banks.

624.
625.
626.

Loans on real estate.
Foreign branches.
Repeal of provisions of law incon
sistent with the provisions of the
Federal reserve act.
627. Act of May 30, 1908, extended to
June 30, 1915. Eeenactment of
certain sections of Revised Stat
utes.
627a. Bate of taxation on circulating
notes secured otherwise than by
bonds of the United States.
When Secretary of Treasury au
thorized to suspend limitations
of act of May 30, 1908.
628. Reduction of capital of national
banks.
629. Invalidation of clause, etc., in act
not to invalidate remainder of act.
630. Reservation of right to amend or
repeal.

TITLE OF ACT.

600. Be it enacted by the Senate and House of Repre-19^
sentatives of the TJnitea States of America in Congress as- stat'.
sembled, That the short title of this A ct shall be the “ Fed

^
l

., 251.’

eral Reserve A ct.”
DEFINITION OF TERMS.

601. Wherever the word “ bank” is used in this Act, 19$*
^
the word shall be held to include State bank, banking stat. l ., 251/
association, and trust company, except where national
banks or Federal reserve banks are specifically referred to.
The terms “ national bank” ana “ national banking
association” used in this Act shall be held to be synony
mous and interchangeable. The term “ member bank”
shall be held to mean any national bank, State bank, or
bank or trust company which has become a member of
one of the reserve banks created by this Act. The term
“ board” shall be held to mean Federal Reserve Board;
the term “ district” shall be held to mean Federal reserve
district; the term “ reserve bank” shall be held to mean
Federal reserve bank.
FEDERAL RESERVE DISTRICTS—ORGANIZATION COM
MITTEE.

602. Sec. 2.—As soon as practicable, the Secretary of 19^ct
^
the Treasury, the Secretary of Agriculture and the Comp- stat. l ., 251/
troller of the Currency, acting as “ The Reserve Bank
Organization Committee,” shau designate not less than
eight nor more than twelve cities to be known as Federal
reserve cities, and shall divide the continental United
States, excluding Alaska, into districts, each district to
contain only one of such Federal reserve cities. The
determination of said organization committee shall not
be subject to review except by the Federal Reserve
Board when organized: Provided, That the districts
44326°—S. Doc. 412,64-1----- 8

THE FEDERAL RESERVE ACT*

shall be apportioned with due regard to the convenience
and customary course of business and shall not neces
sarily be coterminous with any State or States. The dis
tricts thus created may be readjusted and new districts
may from time to time be created by the Federal Reserve
Board, not to exceed twelve in all. Such districts shall
be known as Federal reserve districts and may be desig
nated by number. A majority of the organization com
mittee shall constitute a quorum with authority to act.
AUTHORITY OF COMMITTEE.

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

602b. Under regulations to be prescribed by the organi
zation committee, every national banking association in
the United States is hereby required, ana every eligible
bank in the United States and every trust company
within the District of Columbia, is hereby authorized to
signify in writing, within sixty days after the passage of
this Act, its acceptance of the terms and provisions
hereof.
SUBSCRIPTIONS TO CAPITAL STOCK.

602c. When the organization committee shall have
designated the cities in which Federal reserve banks are
to be organized, and fixed the geographical limits of the
Federal reserve districts, every national banking asso
ciation within that district shall be required within
thirty days after notice from the organization commit
tee, to subscribe to the capital stock of such Federal
reserve bank in a sum equal to six per centum of the
paid-up capital stock ana surplus 01 such bank, onesixth of the subscription to be payable on call of the
organization committee or of the Federal Reserve Board,
one-sixth within three months and one-sixth within six
months thereafter, and the remainder of the subscrip
tion, or any part thereof, shall be subject to call when
deemed necessary by the Federal Reserve Board, said
payments to be in gold or gold certificates.
RESPONSIBILITY OF SHAREHOLDERS.

602d. The shareholders of every Federal reserve bank
shall be held individually responsible, equally and ratably,
and not one for another, for all contracts, debts, and

THE FEDERAL RESERVE ACT.

115

engagements of such bank to the extent of the amount
of their subscriptions to such stock at the par value
thereof in addition to the amount subscribed, whether
such subscriptions have been paid up in whole or in part,
under the provisions of this Act.
FAILURE OF NATIONAL BANKS TO ACCEPT TERMS OF
ACT—PENALT Y.

602e. Any national bank failing to signify its accept- 19^ct
^
ance of the terms of this Act withm the sixty days afore- stat. l., 252.
said, shall cease to act as a reserve agent, upon thirty
days’ notice, to be given within the discretion of the said
organization committee or of the Federal Reserve Board.
FAILURE OF NATIONAL BANKS TO BECOME MEMBER
BANKS—PENALTY.

602f. Should any national banking association in the
^
United States now organized fail within one year after s t a t ic .,252/
the passage of this Act to become a member bank or fail
to comply with any of the provisions of this Act applicable
thereto, all of the rights, privileges, and franchises of
such association granted to it under the national-bank
Act, or under the provisions of this Act, shall be thereby
forfeited. Any noncompliance with or violation of this
Act shall, however, be determined and adjudged by any
court of the United States of competent jurisdiction in a
suit brought for that purpose in the district or territory
in which such bank is located, under direction of the
Federal Reserve Board, by the Comptroller of the Cur
rency in his own name before the association shall be
declared dissolved. In cases of such noncompliance or
violation, other than the failure to become a member
bank under the provisions of this Act, every director
who participated m or assented to the same shall be held
liable in his personal or individual capacity for all dam
ages which said bank, its shareholders, or any other
person shall have sustained in consequence of such
violation.
Such dissolution shall not take away or impair any
remedy against such corporation, its stockholders or
officers, for any liability or penalty which shall have been
previously incurred.
PUBLIC SUBSCRIPTIONS—WHEN ACCEPTED.

602g. Should the subscriptions by banks to the stock 19^ fc
^
of said Federal reserve banks or any one or mote of them stat'. L.,253/
be, in the judgment of the organization committee, in
sufficient to provide the amount of capital required there
for, then and in that event the said organization com
mittee may, under conditions and regulations to be pre
scribed by it, offer to public subscription at par such
an amount of stock in said Federal reserve banks, or any
one or more of them, as said committee shall determine,
subject to the same conditions as to payment and stock:
liability as provided for member banks.

116

THE FEDERAL RESERVE ACT.

LIMIT TO STOCK HELD BY ANY INDIVIDUAL, COPART
NERSHIP, OR CORPORATION OTHER THAN A MEMBER
BANK. PUBLIC STOCK, HOW TRANSFERABLE.

iM3? •£eC2;
stat'. l ., 253.'

602h. No individual, copartnership, or corporation
other than a member bank of its district shall be per
mitted to subscribe for or to hold at any time more tnan
$25,000 par value of stock in any Federal reserve bank.
Such stock shall be known as public stock and may be
transferred on the books of the Federal reserve bank by
the chairman of the board of directors of such bank.
ALLOTMENT OF STOCK TO UNITED STATES.

Act Dec. 23,
1913, ^
sec. 2; „
stat’ uTm’ "

602i. Should the total subscriptions by banks and the
public to the stock of said Federal reserve banks, or any
one or more of them, be, in the judgment of the organiza
tion committee, insufficient to provide the amount of
capital required therefor, then and in that event the said
organization committee shall allot to the United States
such an amount of said stock as said committee shall de
termine. Said United States stock shall be paid for at
par out of any money in the Treasury not otherwise ap
propriated, and shaft be held by the Secretary of the
Treasury and disposed of for the benefit of the United
States in such manner, at such times, and at such price,
not less than par, as the Secretary of the Treasury shall
determine.
VOTING POWER.

1*13* wo6®* 3&
602j. Stock not held b y
stat’. L.,253.’
titled to voting power.

member banks shall not be en-

TRANSFER OF STOCK.

1913* wc80* %
stat’. l . , 253.’

602k. The Federal Reserve Board is hereby empowered to adopt and promulgate rules and regulations
governing the transfers of said stock.
MINIMUM CAPITAL OF FEDERAL RESERVE BANK.

1m * sec** %
stat’. L.,253.’

6021. No Federal reserve bank shall commence business with a subscribed capital less than $4,000,000.
RESERVE CITIES, STATUS OF.

Act JDec^ 23^ 602m. The organization of reserve districts and Federal
reserve cities snail not be construed as changing the
present status of reserve cities and central reserve cities,
except in so far as this Act changes the amount of
reserves that may be carried with approved reserve
agents located therein.

stat’. l . , 253’

AUTHORITY OF ORGANIZATION COMMITTEE TO EMPLOY
ASSISTANTS.

,««* sec. 2; %
602n.
The, organization committee
power to
1913,
38
.
.
,shall have V
stat. L.,253.
appoint such assistants and incur such expenses m carrying out the provisions of this Act as it shall deem neces
sary, and such expenses shall be payable by the Treasurer
of the United States upon voucher approved by the Secre-

117

THE FEDERAL RESERVE ACT.

tary of the Treasury, and the sum of $ 100 ,000, or so
much thereof as may be necessary, is hereby appropri
ated, out of any moneys in the Treasury not otherwise
appropriated, for the payment of such expenses*
BRANCH OFFICES.

BRANCHES OF FEDERAL RESERVE BANKS.

603. Sec. 3. The Federal Reserve Board may permit
or require any Federal reserve bank to establish branch
banks within the Federal reserve district in which it is
located or within the district of any Federal reserve bank
which may have been suspended. Such branches, sub
ject to such rules and regulations as the Federal Reserve
board may prescribe, shall be operated under the super
vision of a board of directors to consist of not more than
seven nor less than three directors, of whom a majority
of one shall be appointed by the Federal reserve bank of
the district, and the remaining directors bv the Federal
Reserve Board. Directors of branch banks shall hold
office during the pleasure of the Federal Reserve Board.

^
stat”. L .,253.’

FEDERAL RESERVE BANKS.

ORGANIZATION OF1 FEDERAL RESERVE BANKS. APPLI
CATION FOR STOCK BY NATIONAL BANKS.

604. Sec. 4.— When the organization committee shall 19^ct
have established Federal reserve districts as provided in stat'.
section two of this Act, a certificate shall be filed with the
Comptroller of the Currency showing the geographical
limits of such districts ana the Federal reserve city
designated in each of such districts. The Comptroller of
the Currency shall thereupon cause to be forwarded to
each national bank located in each district, and to such
other banks declared to be eligible by the organization
committee which may apply therefor, an application
blank in form to be approved by the organization com
mittee, which blank shall contain a resolution to be
adopted by the board of directors of each bank executing
such application, authorizing a subscription to the capital
stock of the Federal reserve bank organizing in that dis
trict in accordance with the provisions of this Act.

^
254,'

ORGANIZATION CERTIFICATE.

604a. When the minimum amount of capital stock prescribed by this Act for the organization of any Federal stat'.
reserve bank shall have been subscribed and allotted, the
organization committee shall designate any five banks
of those whose applications have been received, to
execute a certificate of organization, and thereupon the
banks so designated shall, under their seals, make an
organization certificate which shall specifically state
the name of such Federal reserve bank, the territorial
extent of the district over which the operations of such

254.’

THE FEDERAL RESERVE ACT,

118

Federal reserve bank are to be carried on, the city and
State in which said bank is to be located, the amount of
capital stock and the number of shares into which the
same is divided, the name and place of doing business
of each bank executing such certificate, and o f all banks
which have subscribed to the capital stock of such
Federal reserve bank and the number of shares sub
scribed by each, and the fact that the certificate is made
to enable those banks executing same, and all banks
which have subscribed or may thereafter subscribe to
the capital stock of such Federal reserve bank, to avail
themselves of the advantages of this Act.
The said organization certificate shall be acknowl
edged before a judge of some court of record or notary
public; and shall be, together with the acknowledgment
thereof, authenticated by the seal of such court, or
notary, transmitted to the Comptroller of the Currency,
who shall file, record and carefully preserve the same m
his office.
POWERS OF FEDERAL RESERVE BANES.

maf sec.*?;
stat. l* 264.

604b. Upon the filing of such certificate with the
Comptroller of the Currency as aforesaid, the said Fed
eral reserve bank shall become a body corporate, and as
such, and in the name designated in such organization

c«

1 11 1

_______ _. __
4
>d of twenty
years from its organization unless it is sooner dissolved
by an Act of Congress, or unless its franchise becomes
forfeited by some violation of law.
Third. To make contracts.
Fourth. To sue and be sued, complain and defend, in
any court of law or equity.
Fifth. To appoint b y its board of directors such
officers and employees as are not otherwise provided for
in this Act, to define their duties, require bonds of them
and fix the penalty thereof, and to dismiss at pleasure
such officers or employees.
Sixth. To prescribe by its board of directors, by-laws
not inconsistent with law, regulating the manner in
which its general business may be conducted, and the
privileges granted to it by law may be exercised and
enjoyed.
Seventh. To exercise by its board of directors, or duly
authorized officers or agents, all powers specifically
granted by the provisions of this Act and such incidental
powers as shall be necessary to carry on the business of
banking within the limitations prescribed by this Act.
Eighth. Upon deposit with the Treasurer of the
United States of any bonds of the United States in the
manner provided by existing law relating to national
banks, to receive from the Comptroller of the Currency
circulating notes in blank, registered and countersigned

THE FEDERAL RESERVE ACT.

119

as provided by law, equal in amount to the par value of
the bonds so deposited, such notes to be issued under the
same conditions and provisions of law as relate to the
issue of circulating notes of national banks secured by
bonds of the United States bearing the circulating priv
ilege, except that the issue of such notes shall not be
limited to the capital stock of such Federal reserve bank.
But no Federal reserve bank shall transact any business
except such as is incidental and necessarily preliminary
to its organization until it has been authorized by the
Comptroller of the Currency to commence business
under the provisions of this Act.
DIRECTORS OF FEDERAL RESERVE BANKS.

604c. Every Federal reserve bank shall be conducted 19^ct
under the supervision and control of a board of directors. sta£ l „
The board of directors shall perform the duties usually
appertaining to the office of directors of banking associa
tions and au such duties as are prescribed by law.
Said board shall administer the affairs of said bank
fairly and impartially and without discrimination in favor
of or against any member bank or banks and shall, subject
to the provisions of law and the orders of the Federal
Reserve Board, extend to each member bank such dis
counts, advancements and accommodations as may be
safely and reasonably made with due regard for the
claims and demands of other member banks.

\3$
255.

CLASSIFICATION OF DIRECTORS.

604d. Such board of directors shall be selected as herein-19^ ^ * 3. ^
after specified and shall consist of nine members, holding statl l ., 255.’
office for three years, and divided into three classes,
designated as classes A, B, and C.
Class A shall consist of three members, who shall be
chosen by and be representative of the stock-holding
banks.
Class B shall consist of three members, who at the time
of their election shall be actively engaged in their district
in commerce, agriculture or some other industrial pur
suit.
Class C shall consist of three members who shall be
designated by the Federal Reserve Board. When the
necessary subscriptions to the capital stock have been
obtained for the organization of any Federal reserve
bank, the Federal Reserve Board shall appoint the class
C directors and shall designate one of such directors as
chairman of the board to be selected. Pending the desig
nation of such chairman, the organization committee
shall exercise the powers and duties appertaining to the
office of chairman in the organization of such Federal
reserve bank.
No Senator or Representative in Congress shall be a
member of the Federal Reserve Board or an officer or a
director of a Federal reserve bank.

THE FEDERAL RESERVE ACT.

No director of class B shall be an officer, director, or
employee of any bank.
No director of class C shall be an officer, director,
employee, or stockholder of any bank.
ELECTION OF CLASS A AND CLASS B DIRECTORS.

604e. Directors of class A and class B shall be chosen in
the following manner:
The chairman of the board of directors of the Federal
reserve bank of the district in which the bank is situated
or, pending the appointment of such chairman, the
organization committee shall classify the member banks
of the district into three general groups or divisions.
Each group shall contain as nearly as may be one-third
of the aggregate number of the member banks of the
district and Shall consist, as nearly as may be, of banks
of similar capitalization. The groups shall be designated
by number by the chairman.
At a regularly called meeting of the board of directors
of each member bank in the district it shall elect by ballot
a district reserve elector and shall certify his name to the
chairman of the board of directors of the Federal reserve
bank of the district. The chairman shall make lists of
the district reserve electors thus named by banks in each
of the aforesaid three groups and shall transmit one list to
each elector in each group.
Each member bank: shall be permitted to nominate to
the chairman one candidate for director of class A and
one candidate for director of class B. The candidates
so nominated shall be listed by the chairman, indicating
by whom nominated, and a copy of said list shall, within
fifteen days after its completion, be furnished by the
chairman to each elector.
Every elector shall, within fifteen days after the receipt
of the said list, certify to the chairman his first, second,
and other choices of a director of class A and class B, re
spectively, upon a preferential ballot, on a form furnished
by the chairman of the board of directors of the Federal
reserve bank of the district. Each elector shall make a
cross opposite the name of the first, second, and other
choices for a director of class A and for a director of class
B, but shall not vote more than one choice for any one
candidate.
Any candidate having a majority of all votes cast in the
column of first choice shall be declared elected. If no
candidate have a majority of all the votes in the first
column, then there shall be added together the votes cast
by the electors for such candidates in the second column
and the votes cast for the several candidates in the first
column. If any candidate then have a majority of the
electors voting, by adding together the first and second
choices, he shall be declared elected. If no candidate
have a majority of electors voting when the first and sec-

121

THE FEDERAL RESERVE ACT.

ond choices shall have been added, then the votes cast in
the third column for other choices shall be added together
in like manner, and the candidate then having the high
est number of votes shall be declared elected. An imme
diate report of election shall be declared.
APPOINTMANT OP CLASS C DIEECTOES.
SEEVE AGENTS, DUTIES OP.

FEDEEAL EE-

604f. Class C directors shall be appointed by the Fed- 19^
eral Reserve Board. They shall have been for at least stat'.
two years residents of the district for which they are ap
pointed, one of whom shall be designated by said board
as chairman of the board of directors of the Federal re
serve bank and as ‘ Federal reserve agent/ He shall be a
erson of tested banking experience, and in addition to
is duties as chairman of the board of directors of the
Federal reserve bank he shall be required to maintain,
under regulations to be established by the Federal Re
serve Board, a local office of said board on the premises of
the Federal reserve bank. He shall make regular reports
to the Federal Reserve Board and shall act as its official
representative for the performance of the functions con
ferred upon it by this act. He shall receive an annual
compensation to be fixed by the Federal Reserve Board
and paid monthly by the Federal reserve bank to which
he is designated. One of the directors of class C shall be
appointed by the Federal Reserve Board as deputy chair
man to exercise the powers of the chairman of the board
when necessary. In case of the absence of the chairman
and deputy chairman, the third-class C director shall pre
side at meetings of the board..
Subject to the approval of the Federal Reserve Board,
the Federal reserve agent shall appoint one or more as
sistants. Such assistants, who shall be persons of tested
banking experience, shall assist the Federal reserve agent
in the performance of his duties and shall also have power
to act in his name and stead during his absence or disa
bility. The Federal Reserve Board shall require such
bonas of the assistant Federal reserve agents as it may
deem necessary for the protection of the United States.
Assistants to the Federal reserve agent shall receive an
annual compensation, to be fixed and paid in the same
manner as that of the Federal reserve agent.

^
l

., m

COMPENSATION OF DIEECTOES.

604g. Directors of Federal reserve banks shall receive,
%
in addition to any compensation otherwise provided, a stat'. l ., 257.
reasonable allowance for necessary expenses in attending
meetings of their respective boards, which amount shall
be paid by the respective Federal reserve banks. A ny
compensation that may be provided by boards of direc
tors of Federal reserve banks for directors, officers or
employees shall be subject to the approval of the Federal
Reserve Board.

THE FEDERAL RESERVE ACT.
ORGANIZATION OF FEDERAL RESERVE BANES.
THORITY OF ORGANIZATION COMMITTEE.

604h. The Reserve Bank Organization Committee
may, in organizing Federal reserve banks, call such meet
ings of bank directors in the several districts as may be
necessary to carry out the purposes of this Act, and may
exercise the functions herein conferred upon the chair
man of the board of directors of each Federal reserve
bank pending the complete organization of such bank*
FIRST MEETING OF DIRECTORS.
TERMS OF OFFICE.

DESIGNATION

604i. At the first meeting of the full board of directors
of each Federal reserve bank, it shall be the duty of the
directors of classes A, B and C, respectively, to designate
one of the members of each class whose term of office
shall expire in one year from the first of January nearest
the date of such meeting, one whose term of office shall
expire at the end of two years from said date, and one
whose term of office shall expire at the end of three years
from said date. Thereafter every director of a Federal
reserve bank chosen as hereinbefore provided shall hold
office for a term of three years. Vacancies that may
occur in the several classes of directors of Federal reserve
banks may be filled in the manner provided for the origi
nal selection of such directors, such appointees to hold
office for the unexpired terms of their predecessors.
STOCK*ISSUES; INCREASE AND DECREASE OF CAPITAL.

INCREASE AND DECREASE OF CAPITAL STOCE.

605. Sec. 5.—The capital stock of each Federal reserve
bank shall be divided into shares of $100 each. The out
standing capital stock shall be increased from time to
time as member banks increase their capital stock and
surplus or as additional banks become members, and may
be decreased as member banks reduce their capital stock
or surplus or cease to be members.
STOCE NOT TRANSFERABLE.

605a. Shares of the capital stock of Federal reserve
banks owned by member banks shall not be transferred
or hypothecated.
INCREASE OF CAPITAL STOCE.

605b. When a member bank increases its capital stock
or surplus, it shall thereupon subscribe for an additional
amount of capital stock of the Federal reserve bank of
its district equal to six per centum of the said increase,
one-half of said subscription to be paid in the manner
hereinbefore provided for original subscription, and onehalf subject to call of the Federal Reserve Board.
APPLICATIONS FOR CAPITAL STOCE.

605c. A bank applying for stock in a Federal reserve
bank at any time after the organization thereof must sub-

THE FEDERAL RESERVE ACT.

123

scribe for an amount of the capital stock of the Federal
reserve bank equal to six per centum of the paid-up
capital stock ana surplus of said applicant bank, paying
therefor its par value plus one-hall of one per centum a
month from the period of the last dividend.
CERTIFICATE OF INCREASE IN STOCK OF FEDERAL
RESERVE BANK.

e05d. When the capital stock of any Federal reserve 19^ct
^
bank shall have been increased either on account of the stat! l ., 25 /
increase of capital stock of member banks or on account
of the increase in the number of member banks, the board
of directors shall cause to be executed a certificate to the
Comptroller of the Currency showing the increase in
capital stock, the amount paid in, and by whom paid.
REDUCTION OF CAPITAL STOCK.

605e. When a member bank reduces its capital stock it
se£*%; ^
shall surrender a proportionate amount of its holdings in stat. l ., 257/
the capital of said Federal reserve bank, and when a mem
ber bank voluntarily liquidates it shall surrender all of its
holdings of the capital stock of said Federal reserve bank
and be released from its stock subscription not previously
called. In either case the shares surrendered shall be
canceled and the member bank shall receive in payment
therefor, under regulations to be prescribed by the Federal
Reserve Board, a sum equal to its cash-paid subscriptions
on the shares surrendered and one-half of one per centum
per month from the period of the last dividend, not to
exceed the book value thereof, less any liability of such
member bank to the Federal reserve bank.
INSOLVENCY OF MEMBER BANK.

606. Sec. 6.— If any member bank shall be declared in -19^
^
solvent and a receiver appointed therefor, the stock held stat’. l ., m
by it in said Federal reserve bank shall be canceled, with
out impairment of its liability, and all cash-paid sub
scriptions on said stock, with one-half of one per centum
per month from the period of last dividend, not to exceed
the book value thereof, shall be first applied to all debts
of the insolvent member bank to the Federal reserve bank,
and the balance, if any, shall be paid to the receiver of the
insolvent bank. Whenever the capital stock of a Federal
reserve bank is reduced, either on account of a reduction
in capital stock of any member bank or of the liquidation
or insolvency of such bank, the board of directors shall
cause to be executed a certificate to the Comptroller of
the Currency showing such reduction of capital stock and
the amount repaid to such bank.
DIVISION OF EARNINGS.

607. Sec. 7.—After all necessary expenses of a Federal 19^ f
reserve bank have been paid or provided for, the stock- stat
holders shall be entitled to receive an annual dividend of
six per centum on the paid-in capital stock, which divi

THE FEDERAL RESERVE ACT.

dend shall be cumulative. After the aforesaid dividend
claims have been fully met, all the net earnings shall be
paid to the United States as a franchise tax, except that
one-half of such net earnings shall be paid into a surplus
fund until it shall amount to forty per centum of the paidin capital stock of such bank.
The net earnings derived by the United States from
Federal reserve banks shall, in the discretion of the Secre
tary, be used to supplement the gold reserve held against
outstanding United States notes, or shall be applied to
the reduction of the outstanding bonded indebtedness of
the United States under regulations to be prescribed by
the Secretary of the Treasury. Should a Federal reserve
bank be dissolved or go into liquidation, any surplus re
maining, after the payment of all debts, dividend require
ments as hereinbefore provided, and the par value of the
stock, shall be paid to and become the property of the
United States and shall be similarly applied.
TAX EXEMPTIONS.

607a. Federal reserve banks, including the capital stock
and surplus therein, and the income derived therefrom
shall be exempt from Federal, State, and local taxation,
except taxes upon real estate.
CONVERSION OF STATE BANES INTO NATIONAL BANKS.

608. Sec. 8.— Section fifty-one hundred and fifty-four,
,112! United States Revised Statutes, is hereby amended to
^ read as follows:
Any bank incorporated by special law of any State or
of the. United States or organized under the general laws
of any State or of the United States and having an unim
paired capital sufficient to entitle it to become a national
banking association under the provisions of the existing
laws may, by the vote of the shareholders owning not less
than fifty-one per centum of the capital stock of such
bank or banking association, with the approval of the
Comptroller of the Currency be converted into a national
banking association, with any name approved by the
Comptroller of the Currency: Provided, however, That said
conversion shall not be in contravention of the State law.
In such case the articles of association and organization
certificate may be executed by a majority of the directors
of the bank or banking institution, and the certificate
shall declare that the owners of fifty-one per centum of
the capital stock have authorized the directors to make
such certificate and to change or convert the bank or
banking institution into a national association. A ma
jority of the directors, after executing the articles of asso
ciation and the organization certificate, shall have power
to execute all other papers and to do whatever may be
required to make its organization perfect and complete as
a national association. The shares of any such bank may
continue to be for the same amount each as they were
Jfr

THE FEDERAL RESERVE ACT.

125

before the conversion, and the directors may continue to
be directors of the association until others are elected or
appointed in accordance with the provisions of the
statutes of the United States. When the Comptroller
has given to such bank or banking association a certificate
that the provisions of this Act have been complied with,
such bank or banking association, and all its stockhold
ers, officers, and employees, shall have the same powers
and privileges, and shall be subject to the same duties,
liabilities, and regulations, in all respects, as shall have
been prescribed by the Federal Reserve Act and by the
national banking Act for associations originally organized
as national banking associations.
STATE BANES AS MEMBERS.

STATE BANKS MAT SUBSCRIBE.

609. Sec. 9. Any bank incorporated by special law of l9fg*
^
any State, or organized under the general laws of any stat’. L.,250.’
State or of the United States, desiring to become a mem- wnfsec.sL6 a'
ber of the Federal Reserve System, may make application
to the Federal Reserve Board, under such rules and regu
lations as it may prescribe, for the right to subscribe to
the stock of the Federal reserve bank organized within the
district in which the applying bank is located. Such ap
plication shall be for the same amount of stock that the
applying bank would be required to subscribe to as a na
tional bank. The Federal Reserve Board, subject to such
conditions as it may prescribe, may permit the applying
bank to become a stockholder of such Federal reserve
bank.
APPLICATIONS FOR MEMBERSHIP.

609a. In acting upon such applications the Federal igfg* ^
Reserve Board shall consider the financial condition of the stat'. l . m ’
applying bank, the general character of its management, l^sec-aT a’
and whether or not the corporate powers exercised are
consistent with the purposes of this act.
Whenever the Federal Reserve Board shall permit the
applying bank to become a stockholder in the Federal
reserve bank of the district its stock subscription shall be
payable on call of the Federal Reserve Board, and stock
issued to it shall be held subject to the provisions of this
act.
REGULATIONS AND RESTRICTIONS.

609b. All banks admitted to membership under 19£f*
^
authority of this section shall be required to comply with stat' l., 259.’
the reserve and capital requirements of this act and to
conform to those provisions of law imposed on national
51>
banks which prohibit such banks from tending on or pur
chasing their own stock, which relate to the withdrawal
or impairment of their capital stock, and which relate to
the payment of unearned dividends.

126

t h e fe d e r a l reserve a c t .

MEMBER BANKS REQUIRED TO MAKE REPORTS TO FED
ERAL RESERVE BOARD AND SUBXECT TO EXAMINA
TION BY EXAMINERS APPOINTED BY THE BOARD
AND SUCH BANKS UNDER OFFICERS, AGENTS, AND
EMPLOYEES SUBJECT TO PENALTIES OF SECTION

6209.
609c. Such banks and the officers, agents, and emstat'. L ., m ’
ployees thereof shall also be subject to the provisions of
and to the penalties prescribed by section fifty-two huniU7a«hS?* a’ ^re<^ and nine of the Revised Statutes, and shall be re
quired to make reports of condition and of the payment
of dividends to the Federal reserve bank of which they
become a member. Not less than three of such reports
shall be made annually on call of the Federal reserve bank
on dates to be fixed by the Federal Reserve Board.
Failure to make such reports within ten days after the
date they are called for shall subject the offending bank to
a penalty of $100 a day for each day that it fails to trans
mit such report; such penalty to be collected by the
Federal reserve bank by suit or otherwise.
As a condition of membership such banks shall like
wise be subject to examinations made by direction of the
Federal Reserve Board or of the Federal reserve bank by
examiners selected or approved by the Federal-Reserve
Board!
Whenever the directors of the Federal reserve bank
shall approve the examinations made by the State
authorities, such examinations and the reports thereof
may be accepted in lieu of examinations made b y exam
iners selected or approved by the Federal Reserve Board:
Provided, however, That when it deems it necessary the
board may order special examinations by examiners of its
own selection and shall in all cases approve the form of the
report. The expenses of all examinations, other than
those made by State authorities, shall be assessed against
and paid by the banks examined.
in t «£“ '»; si

FAILURE TO COMPLY WITH REGULATIONS—PENALTY.

iwsf

609d. If at any time it shall appear to the Federal
Reserve Board that a member bank has failed to comply
with the provisions of this section or the regulations of the
Federal Reserve Board made pursuant thereto, it shall be
within the power of the board after hearing to require
such bank to surrender its stock in the Federal reserve
bank and to forfeit all rights and privileges of member
ship. The Federal Reserve Board may restore member
ship upon due proof of compliance with the conditions
imposed by this section.

btat’. l ., m ’

lswfsefc^8

WITHDRAWAL FROM MEMBERSHIP IN FEDERAL RE
SERVE BANK BY STATE BANK OR TRUST COMPANY.

a’

609e. Any State bank or trust company desiring to
withdraw from membership in a Federal reserve bank
may do so, after six months’ written notice shall have been
filed with the Federal Reserve Board, upon the surrender

T H E FEDERAL RESERVE A C T .

127

and cancellation of all of its holdings of capital stock in
the Federal reserve bank: Provided, however. That no
Federal reserve bank shall, except under express author
ity of the Federal Reserve Board, cancel within the same
calendar year more than twenty-five per centum of its
capital stock for the purpose of effecting voluntary with
drawals during that year. All such applications shall be
dealt with in the order in which they are filed with the
board. Whenever a member bank shall surrender its
stock holdings in a Federal reserve bank, or shall be
ordered to do so by the Federal Reserve Board, under
authority of law, all of its rights and privileges as a mem
ber bank shall thereupon cease and determine, and after
due provision has been made for any indebtedness due or
to become due to the Federal reserve bank it shall be
entitled to a refund of its cash paid subscription with
interest at the rate of one-half of one per centum per
month from date of last dividend, if earned, the amount
refunded in no event to exceed the book value of the stock
at that time, and shall likewise be entitled to repayment
of deposits and of any other balance due from the Federal
reserve bank.
AMOUNT OF CAPITAL REQUIRED TO ENABLE STATE
BANK TO BECOME MEMBER BANK.

609f. No applying bank shall be admitted to member- 19f^
^
ship in a Federal reserve bank unless it possesses a paid- stat'. l., m.
up, unimpaired capital sufficient to entitle it to become a i9i7?sec.3?e ’
national banking association in the place where it is situ
ated under the provisions of the national-bank act.
RIGHTS, POWERS, AND LIABILITIES OF STATE BANKS
WHICH BECOME MEMBER BANKS.
m

6Q9g. Banks becoming members of the Federal Re- 19nfsec!3ne
serve System under authority of this section shall be sub
ject to the provisions of this section and to those of this
act which relate specifically to member banks, but shall
not be subject to examination under the provisions of the
first two paragraphs of section fifty-two hundred and
forty of tne Revised Statutes as amended by section
twenty-one of this act. Subject to the provisions of this
act and to the regulations of the boara made pursuant
thereto, any bank becoming a member of the Federal
Reserve System shall retain its full charter and statutory
rights as a State bank or trust company, and may con
tinue to exercise all corporate powers granted it by the
State in which it was created, and shall be entitled to all
privileges of member banks: Provided, however, That no
Federal reserve bank shall be permitted to discount for
any State bank or trust company notes, drafts, or bills of
exchange of any one borrower who is liable for borrowed
money to such State bank or trust company in an amount
greater than ten per centum of the capital and surplus of
such State bank or trust company, but the discount of

128

t h e fe d e r a l re se rv e a c t.

bills of exchange drawn against actually existing value
and the discount of commercial or business paper actually
owned by the person negotiating the same shall not be
considered as borrowed money within the meaning of this
section. The Federal reserve bank, as a condition of the
discount of notes, drafts, and bills of exchange for such
State bank or trust company, shall require a certificate or
guaranty to the effect tnat the borrower is not liable to
such bank in excess of the amount provided by this sec
tion, and will not be permitted to become liable in excess
o f this amount while such notes, drafts, or bills of ex
change are under discount with the Federal reserve bank.
It shall be unlawful for any officer, clerk, or agent of
any bank admitted to membership under authority of this
section to certify any check drawn upon such bank unless
the pereon or company drawing the check has on deposit
therewith at the time such check is certified an amount of
money equal to the amount specified in such check.
Any check so certified by duly authorized officers shall be
a good and valid obligation against such bank, but the act
o f any such officer, clerk, or agent in violation of this
section may subject such bank to a forfeiture of its mem
bership in the Federal Reserve System upon hearing by
the Federal Reserve Board.
FEDERAL RESERVE BOARD.

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

^
stat'. l ., m

’

610. Sec. 10.—A Federal Reserve Board is hereby
created which shall consist of seven members, inducting
the Secretary of the Treasury and the Comptroller of the
Currency, who shall be members ex officio, and five mem
bers appointed by the President of the United States, by
and with the advice and consent of the Senate. In
selecting the five appointive members of the Federal Re
serve Board, not more than one of whom shall be selected
from any one Federal reserve district, the President shall
have due regard to a fair representation of the different
commercial, industrial and geographical divisions of the
country. The five members of the Federal Reserve
Board appointed bv the President and confirmed as afore
said shall devote their entire time to the business of the
Federal Reserve Board and shall each receive an annual
salary of $12,000, payable monthly together with actual
necessary traveling expenses, and the Comptroller of the
Currency, as ex officio member of the Federal Reserve
Board, shall, in addition to the salary now paid him as
Comptroller of the Currency, receive the sum of $7,000
annually for his services as a member of said board.
The members of said board, the Secretary of the Treas
ury, the Assistant Secretaries of the Treasury, and the
Comptroller of the Currency shall be ineligible during the
time they are in office and for two years thereafter to

T H E FEDERAL RESERVE A C T .

129

hold any office, position, or employment in any member
bank. Of the five members thus appointed b y the Presi
dent at least two shall be persons experienced in banking
or finance. One shall be designated by the President to
serve for two, one for four, one for six, one for eight, and
one for ten years, and thereafter each member so ap
pointed shall serve for a term of ten years unless sooner
removed for cause by the President.
GOVERNOR AND VICE GOVERNOR;
FICATION OF MEMBERS.

OFFICERS; QUALI

610a. Of the five persons thus appointed, one shall be
designated by the President as governor and one as vice stat!
governor of the Federal Reserve Board. The governor
of the Federal Reserve Board, subject to its supervision,
shall be the active executive officer. The Secretanr of
the Treasury may assign offices in the Department of the
Treasury for the use of the Federal Reserve Board. Each
member of the Federal Reserve Board shall within fifteen
days after notice of appointment make and subscribe to
the oath of office.

PROVISION FOR EXPENSES.

610b. The Federal Reserve Board shall have power to
&
levy semiannually upon the Federal reserve banks, in pro- stat! l .,26 i . ’
portion to their capital stock and surplus, an assessment
sufficient to pay its estimated expenses and the salaries
of its members and employees for the half year succeed
ing the levying of such assessment, together with any
deficit carried forward from the preceding half year.
FIRST MEETING OF BOARD.
CHAIRMAN OF BOARD.

SECRETARY OF TREASURY

610c. The first meeting of the Federal Reserve Board
^
shall be held in Washington, District of Columbia, as soon stat! l .,26 i . ’
as may be after the passage of this Act, at a date to be
fixed by the Reserve Bank Organization Committee. The
Secretary of the Treasury shall be ex officio chairman
of the Federal Reserve Board.
MEMBER OF FEDERAL RESERVE BOARD NOT TO BE
OFFICER, DIRECTOR, OR STOCKHOLDER IN ANY
BANKING INSTITUTION OR TRUST COMPANY.

610d. No member of the Federal Reserve Board shall be 1
£
^
an officer or director of any bank, banking institution, ^tat! l ., 261. ’
trust company, or Federal reserve bank nor hold stock
in any bank, banking institution, or trust company; and
before entering upon his duties as a member of the Fed
eral Reserve Board he shall certify under oath to the
Secretary of the Treasury that he has complied with this
requirement.
VACANCIES ON BOARD—HOW FILLED.

610e. Whenever a vacancy shall occur, other than by 19^ct
expiration of term, among the five members of the Federal stat! un
44326°—S. Doc. 412,64-1------9

130

t h e fed eral reserve a c t .

Reserve Board appointed by the President, as above pro
vided, a successor shall be appointed by the President,
with the advice and consent of the Senate, to fill such
vacancy, and when appointed he shall hold office for the
unexpired term of the member whose place he is selected
t o filf
The President shall have power to fill all vacancies
that may happen on the Federal Reserve Board during
the recess of the Senate, by granting commissions which
shall expire thirty days after the next session of the
Senate convenes.
POWERS OF SECRETARY OF TREASURY.
stat’.

., 26 i.’

Nothing in this Act contained shall be construed
as taking away any powers heretofore vested by law in
the Secretary of the Treasury which relate to the super
vision, management, and control of the Treasury Depart
ment and bureaus under such department, and wherever
any power vested by this Act in the Federal Reserve
Board or the Federal reserve agent appears to conflict
with the powers of the Secretary of the Treasury, such
powers shall be exercised subject to the supervision and
control of the Secretary.
FEDERAL RESERYE BOARD TO MAKE ANNUAL REPORT
TO SPEAKER OF THE HOUSE OF REPRESENTATIVES.

iM3rtsec®M- al
stat! L ., 261.'

The Federal Reserve Board shall annually make
a full report of its operations to the Speaker of the House
of Representatives, who shall cause the same to be printed
for the information of the Congress.
COMPTROLLER OF THE CURRENCY.

iM8*gec*io ^
stat’. l ., m i .

610h. Section three hundred and twenty-four of the
Revised Statutes of the United States shall be amended
so as to read as follows: There shall be in the Department
of the Treasury a bureau charged with the execution of
all laws passed by Congress relating to the issue and
regulation of national currency secured by United States
bonds and, under the general supervision of the Federal
Reserve Board, of all Federal reserve notes, the chief
officer of which bureau shall be called the Comptroller of
the Currency and shall perform his duties under the
general directions of the Secretary of the Treasury.
POWERS OF FEDERAL RESERVE BOARD.

8vC« XXf o o

stat.

., 2 ti.

611.
Sec. 11.—The
Federal
Reserve Board shall be
. « * !
«
i
authorized and empowered:
EXAMINATION OF BOOKS OF FEDERAL RESERVE BANKS
AND MEMBER BANKS BY FEDERAL RESERVE BOARD.
BOARD MAY REQUIRE REPORTS.

msf s i ^ i i - 6 1 1 a . (a) To examine at its discretion the accounts,
stat. l . , 28i. ’
books and affairs of each Federal reserve bank and of
each member bank and to require such statements and
reports as it may deem necessary. The said board shall

THE FEDERAL RESERVE ACT.

131

publish once each week a statement showing the condi
tion of each Federal reserve bank and a consolidated
statement for all Federal reserve banks. Such state
ments shall show in detail the a'ssets and liabilities of the
Federal reserve banks, single and combined, and shall
furnish full information regarding the character of the
money held as reserve and the amount, nature and
maturities of the paper and other investments owned or
held by Federal reserve banks.
REDISCOUNTS.

611b. (b) To permit, or, on the affirmative vote of at i9^ f *£.**11; 3k
least five members of the Reserve Board to require stat'. l ., 252. ’
Federal reserve banks to rediscount the discounted paper
of other Federal reserve banks at rates of interest to be
fixed by the Federal Reserve Board.
SUSPENSION OF RESERVE REQUIREMENTS.

61 le. (c) To suspend for a period not exceeding thirty 19^ct ^ ^ .^ 5
days, and from time to time to renew such suspension for stat'. l . , * 2 . *
periods not exceeding fifteen days, any reserve require
ment specified in this Act: Provided, That it shall estab
lish a graduated tax upon the amounts by which the
reserve requirements of this Act may be permitted to fall
below the level hereinafter specified: And providedfurthery
That when the gold reserve held against Federal reserve
notes falls below forty per centum, the Federal Reserve
Board shall establish a graduated tax of not more than
one per centum per annum upon such deficiency until
the reserves fall to thirty-two and one-half per centum,
and when said reserve falls below thirty-two and one-half
per centum, a tax at the rate increasingly of not less than
one and one-half per centum per annum upon each two
and one-half per centum or fraction thereof that such
reserve falls below thirty-two and one-half per centum.
The tax shall be paid by the reserve bank, but the reserve
bank shall add an amount equal to said tax to the rates
of interest and discount fixed by the Federal Reserve
Board.
ISSUE AND RETIREMENT OF FEDERAL RESERVE NOTES.

61 Id. (d) To supervise and regulate through the bureau
sj
under the charge of the Comptroller of the Currency the stat*. l ., 252. ’
issue and retirement of Federal reserve notes, and to pre
scribe rules and regulations under which such notes may
be delivered by the Comptroller to the Federal reserve
agents applying therefor.
RESERVE CITIES.

61 le. (e) To add to the number of cities classified as 19f f
reserve and central reserve cities under existing law in stat'. l ., 202. ’
which national banking associations are subject to the
reserve requirements set forth in section twenty of this
A ct; or to reclassify existing reserve and central reserve
cities or to terminate their designation as such.

132

THE FEDERAL RESERVE ACT.

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

i9^ct*a»!ecu*^ 61 If. (f) To suspend or remove any officer or director
stat. l ., 252. ’
of any Federal reserve bank, the cause of such removal
to be forthwith communicated in writing by the Federal
Reserve Board to the removed officer or director and to
said bank.
WRITING OFF DOUBTFUL OR WORTHLESS ASSETS.

M3? s ^ i i ; ^
61 lg. (g) To require the -writing off of doubtful or
' worthless assets upon the books and balance sheets of
Federal reserve banks.

stat'. l ., 252.

SUSPENSION OF OPERATIONS OF FEDERAL RESERVE
BANK.

19K? sec^ii;^
statiL .,282.

61 lb. (h) To suspend, for the violation of any of the
provisions of this Act, the operations of any Federal re
serve bank, to take possession thereof, administer the
same during the period of suspension, and, when deemed
advisable, to liquidate or reorganize such bank.
REQUIREMENT OF BONDS FROM FEDERAL RESERVE
AGENTS AND AUTHORITY TO MAKE NECESSARY
REGULATIONS UNDER THIS ACT.

wwct sec^h-1$ 6111. (i) To require bonds of Federal reserve agents, to
’ make regulations for the safeguarding of all collateral,
bonds, Federal reserve notes, money or property of any
kind deposited in the hands of such agents, and said
board shall perform the duties, functions, or services spec
ified in this Act, and make all rules and regulations neces
sary to enable said board effectively to perform the same.

stat'. l ., 2»2.

GENERAL SUPERVISION.

1913^ sec^ii-3^ ®Hj- (j) To exercise general supervision over said Fedst&t.L.,232. ' eral reserve banks.
PERMIT TO NATIONAL BANKS TO ACT AS TRUSTEE, EX
ECUTOR, ADMINISTRATOR, OR REGISTRAR OF
STOCKS AND BONDS.

1913* sec°°ii; ai
stat! l . , m

’

61
(k) To grant by special permit to national banks
applying therefor, when not in contravention of State or
local law, the right to act as trustee, executor, administra
tor, or registrar of stocks and bonds under such rules and
regulations as the said board may prescribe.
EMPLOYMENT OF ATTORNEYS, CLERKS, ETC., AND PRO
VISION FOR PAYMENT OF SALARIES.

1913? se^i; ^
6111. (1) To employ such attorneys, experts, assistants,
stat’. l ., 262/
clerks, or other employees as may be deemed necessary to
conduct the business of the board. All salaries and fees
shall be fixed in advance b y said board and shall be paid
in the same manner as the salaries of the members of said
board. All such attorneys, experts, assistants, clerks,
and other employees shall be appointed without regard to
the provisions of the Act of January sixteenth, eighteen

THE FEDERAL RESERVE ACT*

133

hundred and eighty-three (volume twenty-two, United
States Statutes at Large, page four hundred and three),
and amendments thereto, or any rule or regulation made
in pursuance thereof: Provided, That nothing herein
shall prevent the President from placing said employees
in the classified service.
WHEN FEDERAL RESERVE BOARD MAT PERMIT MEMBER
BANK TO CARRY IN FEDERAL RESERVE BANK A POR
TION OF THE RESERVE HERETOFORE REQUIRED BT
LAW TO BE HELD IN ITS OWN VAULTS.

611m. (m) Upon the affirmative vote of not less than 19^ ?39s|gJ; L7;
five of its members the Federal Reserve Board shall have 752.’
power, from time to time, by general ruling, covering all
districts alike, to permit member banks to carry in the
Federal reserve banks of their respective districts any
portion of their reserves now required by section nine
teen of this Act to be held in their own vaults.
FEDERAL ADVISORY COUNCIL.

612. Sec. 12.— There is hereby created a Federal Ad%
visory Council, which shall consist of as many members stat'. l ., 263.’
as there are Federal reserve districts. Each Federal re
serve bank by its board of directors shall annually select
from its own Federal reserve district one member of said
council, who shall receive such compensation and allow
ances as may be fixed by his board of directors subject to
the approval of the Federal Reserve Board. The meet
ings of said advisory council shall be held at Washington,
District of Columbia, at least four times each year, and
oftener if called by the Federal Reserve Board. The
council may in addition to the meetings above provided
for hold such other meetings in Washington, District of
Columbia, or elsewhere, as it may deem necessary, may
select its own officers and adopt its own methods of pro
cedure, and a majority of its members shall constitute a
quorum for the transaction of business. Vacancies in the
council shall be filled by the respective reserve banks, and
members selected to fill vacancies shall serve for the un
expired term.
POWERS- OF FEDERAL ADVISORY COUNCIL.

612a. The Federal Advisory Council shall have power, 19^ctse^e®
-2 ^
by itself or through its officers, (1) to confer directly with stat'. l ., 263.
the Federal Reserve Board on general business conditions;
(2) to make oral or written representations concerning
matters within the jurisdiction of said board; (3) to can
for information and to make recommendations in regard
to discount rates, rediscount business, note issues, reserve
conditions in the various districts, the purchase and sale
of gold or securities by reserve banks, open-market opera
tions by said banks, and the general affairs of the reserve
banking system.

THE FEDERAL RESERVE ACT.
POWERS OF FEDERAL RESERVE BANES.

DeiV Ik
Sec. 13.—Any Federal reserve bank may
*263/ receive from any of its member banks, and from the
^IFat l 7’ United States, deposits of current funds in lawful money,
” national-bank note3, Federal reserve notes, or check,
June 21, an(j
payable upon presentation, and also, for
collection, maturing notes and bills; or, solely for pur
poses of exchange or of collection, may receive from
other Federal reserve banks deposits of current funds in
lawful money, national-bank notes, or checks upon
other Federal reserve banks, and checks and drafts, pay
able upon presentation within its district, and maturing
note3 and bills payable within its district; or, solely for
the purposes o f exchange or of collection, may receive
from any nonmember bank or trust company deposits
of current funds in lawful money, national-bank notes,
Federal reserve notes, checks and drafts payable upon
presentation, or maturing notes and bills: Provided,
Such nonmember bank or trust company maintains with
the Federal reserve bank of its district a balance sufficient
to offset the items in transit held for its account by the
Federal reserve bank: Provided further, That nothing
in this or any other section of this act shall be construed
as prohibiting a member or nonmember bank from mak
ing reasonable charges, to be determined and regulated
by the Federal Reserve Board, but in no case to exceed
10 cents per $100 or fraction thereof, based on the total
of checks and drafts presented at any one time, for col
lection or payment of checks and drafts and remission
therefor by exchange or otherwise; but no such charges
shall be made against the Federal reserve banks.
REDISCOUNTS — NOTES, DRAFTS, AND BILLS OF EX
CHANGE.

^
**263/
stat!

613a. Upon the indorsement of any of its member
banks, which shall be deemed a waiver of demand, notice
' and protest by such bank as to its own indorsement ex
clusively, any Federal reserve bank may discount notes,
drafts, and bills of exchange arising out of actual com
mercial transactions; that is, notes, drafts, and bills of
exchange issued or drawn for agricultural, industrial, or
commercial purposes, or the proceeds of which have been
used, or are to be used, for such purposes, the Federal
Reserve. Board to have the right to determine or define
the character of the paper thus eligible for discount,
within the meaning of this Act. Nothing in this Act
contained shall be construed to prohibit such notes,
drafts, and bills of exchange, secured by staple agricul
tural products, or other goods, wares, or merchandise
from being eligible for such discount; but such definition
shall not mclude notes, drafts, or bills covering merely
investments or issued or drawn for the purpose of carry
ing or trading in stocks, bonds, or other investment
securities, except bonds and notes of the Government of

THE FEDERAL RESERVE ACT.

135

the United States. Notes, drafts, and bills admitted to
discount under the terms of this paragraph must have a
maturity at the time of discount of not more than ninety
days, exclusive of days of grace: Provided, That notes,
drafts, and bills drawn or issued for agricultural purposes
or based on live stock and having a maturity not exceed
ing six months, exclusive of days of grace, may be dis
counted in an amount to be limited to a percentage of the
assets of the Federal reserve bank, to be ascertained and
fixed by the Federal Reserve Board.
The aggregate of such notes, drafts, and bills bearing
the signature or indorsement of any one borrower,whether
a person, company, firm, or corporation, rediscounted for
any one bank shall at no time exceed ten per centum of
the unimpairted capital and surplus of said bank; but this
restriction shall not apply to the discount of bills of ex
change drawn in good faith against actually existing
values.
ACCEPTANCES AND LIMITATIONS THEREOF.

613b. Any Federal reserve bank may discount accept- Act Deo. 23.
ances of the kinds hereinafter described, which have a
maturity at the time of discount of not more than three 19^
months’ sight, exclusive of days of grace, and which are aw/
a* ”
indorsed by at least one member bank.
191$ 39 s&tl 1?'
Any member bank may accept drafts or bills of ex- 752A
*’ _ * ’’
change drawn upon it having not more than six months 1917® sec. T e 9
sight to run, exclusive of days of grace, which grow out
o f transactions involving the importation or exporta
tion of goods; or which grow out of transactions involv
ing the domestic shipment of goods provided shipping
documents conveying or securing title are attached at
the time of acceptance; or which are secured at the time
of acceptance by a warehouse receipt or other such
document conveying or securing title covering readily
marketable staples. No member bank shall accept,
whether in a foreign or domestic transaction, for any
one person, company, firm, or corporation to an amount
equal at any time in the aggregate to more than ten per
centum of its paid-up and unimpaired capital stock and
surplus, unless the bank is secured either by attached
documents or by some other actual security growing
out of the same transaction as the acceptance; and no
bank shall accept such bills to an amount equal at any
time in the aggregate to more than one-half of its paid-up
and unimpaired capital stock and surplus: Provided,
however, That the Federal Reserve Board, under such
general regulations as it may prescribe, which shall
apply to all banks alike regardless of the amount of
capital stock and surplus, may authorize any member
bank to accept such bills to an amount not exceeding
at any time in the aggregate one hundred per centum of
its paid-up and unimpaired capital stock and surplus:
Provided, further, That the aggregate of acceptances

136

t h e fed eral reserve a c t .

growing out of domestic transactions shall in no event
exceed fifty per centum of such capital stock and surplus.
Any Federal reserve bank may make advances to its
member banks on their promissory notes for a period not
exceeding fifteen days at rates to be established b y such
Federal reserve banks, subject to the review and determi
nation of the Federal Reserve Board, provided such
promissory notes are secured by such notes, drafts, bills
of exchange, or bankers’ acceptances as are eligible for
rediscount or for purchase by Federal reserve banks under
the provisions of this Act, or by the deposit or pledge of
bonds or notes of the United States.
EXCEPTIONS AS TO LIMIT OF INDEBTEDNESS. POWER
TO ACT AS INSURANCE AGENT, AS REAL ESTATE
LOAN BROKER, AND TO ACCEPT DRAFTS, ETC.

613c. Section fifty-two hundred and two of the Revised
Statutes of the United States is hereby amended so as to
read as follows: No national banking association shall at
any time be indebted, or in any way liable, to an amount
exceeding the amount of its capital stock at such time
actually paid in and remaining undiminished by losses or
otherwise, except on account of demands of the nature
following:
First. Notes of circulation.
Second. Moneys deposited with or collected by *the
association.
Third. Bills of exchange or drafts drawn against
money actually on deposit to the credit of the association,
or due thereto.
Fourth. Liabilities to the stockholders of the associa
tion for dividends and reserve profits.
Fifth. liabilities incurred under the provisions of the
Federal reserve Act.
ArtStept. 7,
The discount and rediscount and the purchase and sale
763 ;
* *’ by any Federal reserve bank of any bills receivable and of
domestic and foreign bills of exchange, and of accept
ances authorized by this Act, shall be subject to such
restrictions, limitations, and regulations as may be
imposed by the Federal Reserve Board.
That in addition to the powers now vested b y law in
national banking associations organized under the laws of
the United States any such association located and doing
business in any place the population of which does not
exceed five thousand inhabitants, as shown by the last
preceding decennial census, may, under such rules and
regulations as may be prescribed by the Comptroller of
the Currency, act as the agent for any fire, life, or other
insurance company authorized by the authorities of the
State in which said bank is located to do business in said
State, by soliciting and selling insurance and collecting
premiums on policies issued by such company; ana
may receive for services so rendered such fees or com
missions as may be agreed upon between the said associaAct
stat'

Bee. 23,

THE FEDERAL RESERVE ACT.

137

tion and the insurance company for which it may act as
agent; and may also act as the broker or agent for others
in making or procuring loans on real estate located
within one hundred miles of the place in which said bank
may be located, receiving for such services a reasonable
fee or commission: Provided, however, That no such bank
shall in any case guarantee either the principal or interest
of any such loans or assume or guarantee the payment
of any premium on insurance policies issued through
its agency by its principal: And provided further, That
the bank shall not guarantee the truth of any statement
made by an assured in filing his application for insurance.
Any member bank may accept drafts or bills of ex
change drawn upon it having not more than three months1
sight to rim, exclusive of days of grace, drawn under
regulations to be prescribed by the Federal Reserve
Board by banks or bankers in foreign countries or
dependencies or insular possessions of the United States
for the purpose of furnishing dollar exchange as required
by the usages of trade in the respective countries, de
pendencies, or insular possessions. Such drafts or bills
may be acquired by Federal reserve banks in such
amounts and subject to such regulations, restrictions, and
limitations as may be prescribed by the Federal Reserve
Board: Provided, however, That no member bank shall
accept such drafts or bills of exchange referred to this
paragraph for any one bank to an amount exceeding in
the aggregate ten per centum of the paid-up and unim
paired capital and surplus of the accepting bank unless
the draft or bill of exchange is accompanied by docu
ments conveying or securing title or by some other
adequate security: Provided further, That no member
bank shall accept such drafts or bills in an amount
exceeding at any time the aggregate of one-half of its
paid-up and unimpaired capital and surplus.
OPEN MARKET OPERATIONS.

614. Sec. 14.—Any Federal reserve bank may, under
^
rules and regulations prescribed by the Federal Reserve stat!
Board, purchase and sell in the open market, at home or 1^ 3 9 setet.
abroad, either from or to domestic or foreign banks, firms,754**
corporations, or individuals, cable transfers and bankers'
acceptances and bills of exchange of the kinds and ma
turities by this Act made eligible for rediscount, with or
without the indorsement of a member bank.
Every Federal reserve bank shall have power:
(a) To deal in gold coin and bullion at home or abroad,
to make loans thereon, exchange Federal reserve notes
for gold, gold coin, or gold certificates, and to contract for
loans of gold coin or bullion, giving therefor, when neces
sary, acceptable security, including the hypothecation of
United States bonds or other securities which Federal
reserve banks are authorized to hold;

138

THE FEDERAL RESERVE ACT*

. (b) To buy and sell, at home or abroad, bonds and notes
of the United States, and bills, notes, revenue bonds, and
warrants with a maturity from date of purchase of not
exceeding six months, issued in anticipation of the col
lection of taxes or in anticipation of the receipt of assured
revenues by any State, county, district, political subdivi
sion, or municipality in the continental United States, in
cluding irrigation, drainage and reclamation districts,
such purchases to be made in accordance with rules and
regulations prescribed by the Federal Reserve Board;
(c) To purchase from member banks and to sell, with
or without its indorsement, bills of exchange arising out
of commercial transactions, as hereinbefore defined;
(d) To establish from time to time, subject to review
and determination of the Federal Reserve Board, rates
of discount to be charged by the Federal reserve bank for
each class of paper, which shall be fixed with a view of
accommodating commerce and business;
21’
W To establish accounts with other Federal reserve
banks for exchange purposes and, with the consent or
upon the order and direction of the Federal Reserve
Board and under regulations to be prescribed by said
board, to open and maintain accounts in foreign coun
tries, appoint correspondents, and establish agencies in
such countries wheresoever it may be deemea best for
the purpose of purchasing, selling, and collecting bills of
exchange, and to buy and sell, with or without its indorse
ment, through such correspondents or agencies, bills of
exchange (or acceptances) arising out of actual commer
cial transactions which have not more than ninety days
to run, exclusive of days of grace, and which bear the
signature of two or more responsible parties, and, with
the consent of the Federal Reserve Board, to open and
maintain banking accounts for such foreign correspond
ents or agencies. Whenever any such account has been
opened or agency or correspondent has been appointed
by a Federal reserve bank, with the consent of or under
the order and direction of the Federal Reserve Board,
any other Federal reserve bank may, with the consent
and approval of the Federal Reserve Board, be permitted
to carry on or conduct, through the Federal reserve
bank opening such account or appointing such agency
or correspondent, any transaction authorized by this
section under rules and regulations to be prescribed by
the board.
GOVERNMENT DEPOSITS.

im ? sec^i;
Stat* l .,166.’

615. Sec. 15.—The moneys held in the general fund of
the Treasury, except the five per centum fund for the re
demption of outstanding national-bank notes and the
funds provided in this Act for the redemption of Federal
reserve notes may, upon the direction of the Secretary of
the Treasury, be deposited in Federal reserve banks,
which banks, when required by the Secretary of the

THE FEDERAL RESERVE ACT.

139

Treasury, shall act as fiscal agents of the United States;
and the revenues of the Government or any part thereof
may be deposited in such banks, and disbursements may
be made by checks drawn against such deposits.
No public funds of the Philippine Islands, or of the pos
tal sayings, or any Government funds, shall be deposited
in the continental United States in any bank not belong
ing to the system established by this Act:1 Provided, how
ever, That nothing in this Act shall be construed to deny
the right of the Secretary of the Treasury to use member
banks as depositories.
NOTE ISSUES.

FEDERAL RESERVE NOTES AUTHORIZED.

616. Sec. 16.— Federal reserve notes, to be issued at
%
the discretion of the Federal Reserve Board for the pur- stat! L ./m
pose of making advances to Federal reserve banks through
the Federal reserve agents as hereinafter set forth and for
no other purpose, are hereby authorized. The said notes
shall be obligations of the united States and shall be re
ceivable by all national and member banks and Federal
reserve banks and for all taxes, customs, and other public
dues. They shall be redeemed in gold on demand at the
Treasury Department of the United States, in the city of
Washington, District of Columbia, or in gold or lawful
money at any Federal reserve bank.
COLLATERAL SECURITY.

APPLICATIONS FOR FEDERAL RESERVE NOTES.

616a. Any Federal reserve bank may make applica^
tion to the local Federal reserve agent for.such amount stat'. l . , m ’
of the Federal reserve notes hereinbefore provided for i 9w f39 stat*. l?;
as it may require. Such application shall be accom- ;6£ct June
panied with a tender to the local Federal reserve agent 1917, sec. 7.
of collateral in amount equal to the sum of the Federal
reserve notes thus applied for and issued pursuant to
such application. The collateral security thus offered
shall be notes, drafts, bills of exchange, or acceptances
acquired under the provisions of section thirteen of this
act, or bills of exchange indorsed by a member bank of
any Federal reserve district and purchased under the
i Section 7 of the act approved April 24,1917, known as “ An act to authorize an issue
of bonds to meet expenditures for the national security and defense, and, for the pur
pose of assisting in the prosecution of the war, to extend credit to foreign governments,
and for other purposes,” provides “ that the Secretary of the Treasury, in his discretion,
is hereby authorized to deposit in such banks and trust companies as he may designate
the proceeds, or any part thereof, arising from the sale of the bonds and certificates of
indebtedness authorized by this Act, or the bonds previously authorized as described in
section four of this Act, and such deposits may bear such rate of interest and be subject
to such terms and conditions as the Secretary of the Treasury may prescribe: Provided,
That the amount so deposited shall not in any case exceed the amount withdrawn from
any such bank or trust company and invested in such bonds or certificates of indebted
ness plus the amount so invested by such bank or trust company, and such deposits shall
be secured in the manner required for other deposits by section fifty-one hundred and
fifty-three, Revised Statutes, and amendments thereto: Provided further, That the pro
visions of section fifty-one hundred and ninety-one of the Revised Statutes, as amended
by the Federal Reserve Act and the amendments thereof, with reference to the reserves
required to be kept by national banking associations and other member banks of the
Federal Reserve system, shall not apply to deposits of public moneys by the United
States in designated depositaries.”

140

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

provisions of section fourteen of this act, or bankers’
acceptances purchased under the provisions of said sec
tion fourteen, or gold or gold certificates; but in no event
shall such collateral security, whether gold, gold certifi
cates, or eligible paper, be less than the amount of Federal
reserve notes applied for. The Federal reserve agent
shall each day notify the Federal Reserve Board o f all
issues and withdrawals of Federal reserve notes to and
b y the Federal reserve bank to which he is accredited.
Tne said Federal Reserve Board may at any time call
upon a Federal reserve bank for additional security to
protect the Federal reserve notes issued to it.
RESERVE
BANKS.

REQUIREMENTS

FOR

FEDERAL

RESERVE

mb* se?8?*- 38 616b. Every Federal reserve bank shall maintain re
st®!'. l .,266.'
serves in gold; or lawful money of not less than thirtytJ C J T a ' five per centum against its deposits and reserves in gold
of not less than forty per centum against its Federal re
serve notes in actual circulation: Provided, however,
That when the Federal reserve agent holds gold or gold
certificate as collateral for Federal reserve notes issued
to the bank such gold or gold certificates shall be counted
as part of the gold reserve which such bank is required
to maintain against its Federal reserve notes in actual
circulation.
ISSUE AND REDEMPTION OF FEDERAL RESERVE NOTES.
NO FEDERAL RESERVE BANK PERMITTED TO PAT
OUT NOTES ISSUED THROUGH ANOTHER FEDERAL
RESERVE BANK.

ms*see,'V 36

616c. Notes so paid out shall bear upon their faces a
distinctive letter and serial number which shall be asuu?n&£* a’ signed b y thb Federal Reserve Board to each Federal
reserve bank. Whenever Federal reserve notes issued
through one Federal reserve bank shall be received by
another Federal reserve bank, they shall be promptly
returned for credit or redemption to the Federal reserve
bank through which they were originally issued or, upon
direction of such Federal reserve bank, they shall be for
warded direct to the Treasurer of the United States to be
retired. No Federal reserve bank shall pay out notes
issued through another under penalty of a tax of ten per
centum upon the face value o f notes so paid out. Notes
presented for redemption at the Treasury of the United
States shall be paid out of the redemption fund and re
turned to the Federal reserve banks through which they
were originally issued, and thereupon such Federal re
serve bank shall, upon demand of the Secretary of the
Treasury, reimburse such redemption fund in lawful
money or, if such Federal reserve notes have been re
deemed by the Treasurer in gold or gold certificates, then
such funas shall be reimbursed to the extent deemed
necessary by the Secretary of the Treasury in gold or
;old certificates, and such Federal reserve bank shall, so
ong as any of its Federal reserve notes remain outstand-

s ta f

.,266.’

THE FEDERAL RESERVE ACT.

141

ing, maintain with the Treasurer in gold an amount suffi
cient in the judgment of the Secretary to provide for all
redemptions tol>e made by the Treasurer. Federal re
serve notes received by the Treasurer otherwise than for
redemption may be exchanged for gold out of the redemp
tion fund hereinafter provided and returned to the re
serve bank through which they were originally issued, or
they may be returned to such bank for the credit of the
United States. Federal reserve notes unfit for circula
tion shall be returned by the Federal reserve agents to
the Comptroller of the Currency for cancellation and de
struction.
DEPOSITS OF GOLD WITH TREASURER FOR REDEMPTION
OF FEDERAL RESERVE NOTES.

616d. The Federal Reserve Board shall require each 19^ctse£e<~6. ^
Federal reserve bank to maintain on deposit in the Treas- stat. l . *266. ’
ury of the United States a sum in gold sufficient in the lgnfseclT5 a'
judgment of the Secretary of the Treasury for the redemp
tion of the Federal reserve notes issued to such bank, but
in no event less than five per centum of the total amount
of notes issued less the amount of gold or gold certificates
held by the Federal reserve agent as collateral security;,
but such deposit of gold shall be counted and included as
part of the forty per centum reserve hereinbefore re
quired.
FEDERAL RESERVE BOARD MAT GRANT OR REJECT AP
PLICATION OF FEDERAL RESERVE BANK FOR FED
ERAL RESERVE NOTES. FEDERAL RESERVE NOTES
FIRST LIEN ON ALL THE ASSETS OF THE BANK.

616e. The board shall have the right, acting through
the Federal reserve agent, to grant, in whole or in part, stat*. l ., 200/
or to reject entirely the application of any Federal reserve bank for Federal reserve notes; but to the extent
that such application may be granted the Federal Reserve
Board shall, through its local Federal reserve agent, sup
ply Federal reserve notes to the banks so applying, and
such bank shall be charged with the amount of notes
issued to it and shall pay suck rate of interest as may be
established by the Federal Reserve Board on only that
amount of such notes which equals the total amount of
its outstanding Federal reserve notes less the amount of
gold or gold certificates held by the Federal reserve agent
as collateral security. Federal reserve notes issued to any
such bank shall, upon delivery, together with such notes
of such Federal reserve bank as may be issued under sec
tion eighteen of this act upon security of United States
two per centum Government bonds, become a first and
paramount lien on all the assets of such bank.
REDUCTION OF NOTE ISSUES.

616f. Any Federal reserve bank may at any time re- 19^ctre? eiV ^
duce its liability for outstanding Federal reserve notes by stat'.L..k7.'
depositing with the Federal reserve agent its Federal re- wnfsec.1? 6 lf

THE FEDERAL RESERVE ACT.

142

serve notes, gold, gold certificates, or lawful money of the
United States. Ifoderal reserve notes so deposited shall
not be reissued, except upon compliance with the condi
tions of an original issue.
The Federal reserve agent shall hold such gold, gold
certificates, or lawful money available exclusively for ex
change for the outstanding Federal reserve notes when
offered by the reserve bank of which he is a director.
Upon the request of the Secretaiy of the Treasury the
Federal Reserve Board shall require the Federal reserve
agent to transmit to the Treasurer of the United States
so much of the gold held by him as collateral security for
Federal reserve notes as may be required for the exclusive
purpose of the redemption of such Federal reserve notes,
but such gold when deposited with the Treasurer shall be
counted and considered as if collateral security on deposit
with the Federal reserve agent.
SUBSTITUTION OF COLLATERAL.

i#i3Ct««e*x6- aS

616g. Any Federal reserve bank may at its discretion
withdraw collateral deposited with the local Federal rewnfsei™.8 a’ serve agent for the protection of its Federal reserve notes
issued to it and shall at the same time substitute therefor
other collateral of equal amount with the approval of the
Federal reserve agent under regulations to be prescribed
by the Federal Reserve Board. Any Federal reserve bank
may retire any of its Federal reserve notes by depositing
them with the Federal reserve agent or with the Treasurer
of the United States, and such Federal reserve bank shall
thereupon be entitled to receive back the collateral de
posited with the Federal reserve agent for the security of
such notes. Federal reserve banks shall not be required
to maintain the reserve or the redemption fund hereto
fore provided for against Federal reserve notes which have
been retired. Federal reserve notes so deposited shall not
be reissued except upon compliance with the conditions
of an original issue.
AH Federal reserve notes and all gold, gold certificates,
and lawful money issued to or deposited with any Federal
reserve agent under the provisions of the Federal reserve
act shall hereafter be held for such agent, under such
rules and regulations as the Federal Reserve Board may
prescribe, in the joint custody of himself and the Federal
reserve bank to which he is accredited. Such agent and
such Federal reserve bank shall be jointly liable for the
safe-keeping of such Federal reserve notes, gold, gold cer
tificates, and lawful money. Nothing herein contained,
however, shall.be construed to prohibit a Federal reserve
agent from depositing gold or gold certificates with the
federal Reserve Board, to be held by such board subject
to his order, or with the Treasurer of the United States
for the purposes authorized by law.

stat’. i/., 267. ’

THE FEDERAL RESERVE ACT.

143

PREPARATION OF FEDERAL RESERVE NOTES. PLATES
AND DIES TO BE UNDER CONTROL OF COMPTROLLER
OF CURRENCY. WHERE NOTES ARE TO BE DEPOS
ITED.
616h. In order to furnish suitable notes for circulation 19^otseJ)ei,6- 3^
as Federal reserve notes, the Comptroller of the Cur- stat! l . , ’267/
rency shall, under the direction of the Secretary of the
Treasury, cause plates and dies to be engraved in the
best manner to guard against counterfeits and fraudulent
alterations, and shall have printed therefrom and num
bered such quantities of such notes of the denominations
of $5, $10, $20, $50, $100, as may be required to supply
the Federal reserve banks. Such notes shall be in form
and tenor as directed by the Secretary of the Treasury
under the provisions of this Act and shall bear the dis
tinctive numbers of the several Federal reserve banks
through which they are issued.
When such notes have been prepared, they shall be
deposited in the Treasury, or in the subtreasury or mint
of the United States nearest the place of business of each
Federal reserve bank and shall be held for the use of
such bank subject to the order of the Comptroller of the
Currency for tneir delivery, as provided by this Act.
The plates and dies to be procured by tne Comptroller
of the Currency for the printing of such circulating notes
shall remain under his control and direction, and the
expenses necessarily incurred in executing the laws relat
ing to the procuring of such notes, and all other expenses
incidental to their issue and retirement, shall be paid by
the Federal reserve banks, and the Federal Reserve
Board shall include in its estimate of expenses levied
against the Federal reserve banks a sufficient amount to
cover the expenses herein provided for.
The examination of plates, dies, bed pieces, and so
forth, and regulations relating to such examination of
plates, dies, and so forth, of national-bank notes provided
lor in section fifty-one hundred and seventy-four Revised
Statutes, is hereby extended to inelude notes herein pro
vided for.
APPROPRIATION FOR EXPENSE OF PRINTING NATIONALBANK NOTES MAY BE USED FOR PRINTING FEDERAL
RESERVE NOTES.
616i. Any appropriation heretofore made out of the 19^
^
general funds of the Treasury for engraving plates and stat'. l . , *267.’
dies, the purchase of distinctive paper, or to cover any
other expense in connection with tne printing of nationalbank notes or notes provided for by the Act of May
thirtieth, nineteen hundred and eight, and any distinctive
paper that may be on hand at the time of the passage of
this Act m^y be used in the discretion of the Secretary
for the purposes of this Act, and should the appropria
tions heretofore made be insufficient to meet the require
ments of this Act in addition to circulating notes pro
vided for by existing law, the Secretary is hereby author-

THE FEDERAL RESERVE ACT.

ized to use so much of any funds in the Treasury not
otherwise appropriated for the purpose of furnishing the
notes aforesaid: Provided, however, That nothing in this
section contained shall be construed as exempting na
tional banks or Federal reserve banks from their liability
to reimburse the United States for any expenses incurred
in printing and issuing circulating notes.
WHEN FEDERAL RESERVE BANK SHALL RECEIVE CHECKS
AND DRAFTS ON DEPOSIT AT PAR.

616j. Every Federal reserve bank shall receive on de
posit at par from member banks or from Federal reserve
banks checks and drafts drawn upon any of its depos
itors, and when remitted by a Federal reserve bank,
checks and drafts drawn by any depositor in any other
Federal reserve bank or member bank upon funds to the
credit of said depositor in said reserve bank or member
bank.
CHARGES FOR COLLECTION AND FOR SALE OF EX
CHANGE.

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

6161. The Federal Reserve Board shall make and pro
mulgate from time to time regulations governing the trans
fer of funds and charges therefor among Federal reserve
banks and their branches, and may at its discretion exercise
the functions of a clearing house for such Federal reserve
banks, or may designate a Federal reserve bank to exer
cise such functions, and may also require each such bank
to exercise the functions of a clearing house for its mem
ber banks.
SECRETARY OF THE TREASURY TO RECEIVE DEPOSITS
OF GOLD COIN OR GOLD CERTIFICATES WITH THE
TREASURER OR ASSISTANT TREASURER OF UNITED
STATES WHEN TENDERED BY ANY FEDERAL RESERVE
BANK OR FEDERAL RESERVE AGENT FOR CREDIT
TO ITS OR HIS ACCOUNT WITH THE FEDERAL RE
SERVE BOARD.

616m. That the Secretary of the Treasury is hereby
authorized and directed to receive deposits of gold coin or
of gold certificates with the Treasurer or any assistant
treasurer of the United States when tendered b y any
Federal reserve bank or Federal reserve agent for credit
to its or his account with the Federal Reserve Board.

THE FEDERAL RESERVE ACT.

145

The Secretary shall prescribe by regulation the form of
receipt to be issued by the Treasurer or Assistant Treas
urer to the Federal reserve bank or Federal reserve agent
makinjg the deposit, and a duplicate of such receipt shall
be delivered to the Federal Reserve Board by the Treas
urer at Washington upon proper advices from any
assistant treasurer that such deposit has been made.
Deposits so made shall be held subject to the orders of
the Federal Reserve Board and shall be payable in gold
coin or gold certificates on the order of the Federal Re
serve Board to any Federal reserve bank or Federal
reserve agent at the Treasury or at the Subtreasury of
the United States nearest the place of business of such
Federal reserve bank or such Federal reserve agent: Pro
vided, however, That any expense incurred in shipping
gold to or from the Treasury or subtreasuries in order to
make such payments, or as a result of making such pay
ments, shall be paid by the Federal Reserve Board and
assessed against the Federal reserve banks. The order
used by the Federal Reserve Board in making such pay
ments shall be signed by the governor or vice governor,
or such other officers or members as the board may by
regulation prescribe. The form of such order shall be
approved by the Secretary of the Treasury.
The expenses necessarily incurred in carrying out
these provisions, including the cost of the certificates or
receipts issued for deposits received, and all expenses
incident to the handling of such deposits shall be paid by
the Federal Reserve Board and included in its assess
ments against the several Federal reserve banks.
Gold deposits standing to the credit of any Federal
reserve bank with the Federal Reserve Board shall, at
the option of said bank, be counted as part of the lawful
reserve which it is required to maintain against outstand
ing Federal reserve notes, or as a part of the reserve it is
required to maintain against deposits.
Nothing in this section shall be construed as amend
ing section six of the act of March fourteenth, nineteen
hundred, as amended by the acts of March fourth, nine
teen hundred and seven, March secottid, nineteen hundred
and eleven, and June twelfth, nineteen hundred and six
teen, nor shall the provisions of this section be construed
to apply to the deposits made or to the receipts or cer
tificates issued under those acts.
NATIONAL BANKS NOT REQUIRED TO MAKE DEPOSIT OP
UNITED STATES BONDS PRIOR TO COMMENCEMENT
OF BUSINESS.

617.
Sec . 17. So much of the provisions of section 19^c
t ^
fifty-one hundred and fifty-nine of the Revised Statutes stat. l W
of the United States, and section four of the act of June wnfsec. a!® 2 *
twentieth, eighteen hundred and seventy-four, and sec
tion eight of the act of July twelfth, eighteen hundred and
eighty-two, and of any other provisions of existing stat44326°—S. Doc. 412,64-1----- 10

THE FEDERAL RESERVE ACT.

146

utes as require that before any national banking assor
ciation shall be authorized to commence banking busi
ness it shall transfer and deliver to the Treasurer of the
United States a stated amount of United States regis
tered bonds, and so much of those provisions or of any
other provisions of existing statutes as require any
natipnal banking association now or hereafter organized
to maintain a minimum deposit of such bonds with the
Treasurer is hereby repealed.
REFUNDING BONDS.

RETIREMENT OF CIRCULATING NOTES.
Act sec.
Dec.
1913
is; ^

stat’.

618. Sec. 18.—After two years from the passage of
this Act, and at any time during a period of twenty years
thereafter, any member bank desiring to retire the whole
or any part of its circulating notes, may file with the
Treasurer of the United States an application to sell for
its account, at par and accrued interest, United States
bonds securing circulation to be retired.
PURCHASE OF UNITED STATES BONDS BT FEDERAL
RESERVE BANKS.

1913? se?6^; ai
stat. l . , 268.'

618a. The Treasurer shall, at the end of each quarterly
period, furnish the Federal Reserve Board with a list of
such applications, and the Federal Reserve Board may,
in its discretion, require the Federal reserve banks to
urchase such bonds from the banks whose applications
ave been filed with the Treasurer at least ten days before
the end of any quarterly period at which the Federal
Reserve Board may direct the purchase to be made:
Provided, That Federal reserve banks shall not be per
mitted to purchase an amount to exceed $25,000,000 of
such bonds in any one year, and which amount shall
include bonds acquired under section four of this Act by
the Federal reserve bank.
Provided further. That the Federal Reserve Board shall
allot to each Federal reserve bank such proportion of
such bonds as the capital and surplus of such bank shall
bear to the aggregate capital and surplus of all the Fed
eral reserve banks.
Upon notice from the Treasurer of the amount of bonds
so sold for its account, each member bank shall duly
assign and transfer, in writing, such bonds to the Federal
reserve bank purchasing the same, and such Federal
reserve bank shall, thereupon, deposit lawful money with
the Treasurer of the United States for the purchase price
of such bonds, and the Treasurer shall pay to the member
bank selling such bonds any balance due after deducting
a sufficient sum to redeem its outstanding notes secured
by such bonds, which notes shall be canceled and perma
nently retired when redeemed.

THE FEDERAL RESERVE ACT,

147

ISSUE OF CIRCULATING NOTES TO FEDERAL RESERVE
BANKS ON SECURITY OF UNITED STATES BONDS.
CIRCULATING NOTES SO ISSUED OBLIGATIONS OF
FEDERAL RESERVE BANK.

618b. The Federal reserve banks purchasing such bonds
shall be permitted to take out an amount of circulating sta t'.L .,‘m
notes equal to the par value of such bonds.
Upon the deposit with the Treasurer of the United
States of bonds so purchased, or any bonds with the cir
culating privilege acquired under section four of this Act,
any Federal reserve bank making such deposit in the
manner provided by existing law, shall be entitled to
receive from the Comptroller of the Currency circulating
notes in blank, registered and countersigned as provided
by law, equal in amount to the par value of the bonds so
deposited. Such notes shall be the obligations of the
Federal reserve bank procuring the same, and shall be in
form prescribed by the Secretary of the Treasury, and to
the same tenor and effect as national-bank notes now
provided by law. They shall be issued and redeemed
under the same terms and conditions as national-bank
notes except that they shall not be limited to the amount
of the capital stock of the Federal reserve bank issuing
them.

aS
'

ISSUE OF ONE YEAR GOLD NOTES AND THREE PER CENT
BONDS OF THE UNITED STATES IN EXCHANGE FOR
TWO PER CENT UNITED STATES BONDS.

618c. Upon application of any Federal reserve bank,
approved by the Federal Reserve Board, the Secretary stat'. l., 'm !
of the Treasury may issue, in exchange for United States
two per centum gold bonds bearing the circulation privi
lege, but against which no circulation is outstanding,
one-year gold notes of the United States without the
circulation privilege, to an amount not to exceed onehalf of the two per centum bonds so tendered for ex
change, and thirty-year three per centum gold bonds
without the circulation privilege for the remainder of the
two per centum bonds so tendered: Provided, That at
the time of such exchange the Federal reserve bank ob
taining such one-year gold notes shall enter into an obli
gation with the Secretary of the Treasury binding itself
to purchase from the United States for gold at the ma
turity of such one-year notes, an amount equal to those
delivered in exchange for such bonds, if so requested by
the Secretary, and at each maturity of one-year notes so
mrchased by such Federal reserve bank, to purchase
rom the United States such an amount of one-year notes
as the Secretary may tender to such bank, not to exceed
the amount issued to such bank in the first instance, in
exchange for the two per centum United States gold
bonds; said obligation to purchase at maturity such
notes shall continue in force for a period not to exceed
thirty years.

148

THE FEDERAL RESERVE ACT.

For the purpose of making the exchange herein pro
vided for, the Secretary of the Treasury is authorized to
issue at par Treasury notes in coupon or registered form
as he may prescribe in denominations of one hundred
dollars, or any multiple thereof, bearing interest at the
rate of three per centum per annum, payable quarterly,
such Treasury notes to be payable not more than one
year from the date of their issue in gold coin of the pres
ent standard value, and to be exempt as to principal and
interest from the payment of all taxes and duties of the
United States except as provided by this Act, as well as
from taxes in any form by or under State, municipal, or
local authorities. And for the same purpose, the Secre
tary is authorized and empowered to issue United States
gold bonds at par, bearing three per centum interest pay
able thirty years from date of issue, such bonds to be of
the same general tenor and effect and to be issued under
the same general terms and conditions as the United
States three per centum bonds without the circulation
privilege now issued and outstanding.
EXCHANGE OF THREE PER CENT BONDS FOR ONE TEAR
GOLD NOTES.

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

reserve bank,
the Secretary
bonds in ex
provided for.

BANE RESERVES.

DEMAND AND TIME DEPOSITS DEFINED—RESERYE
REQUIREMENTS—WHEN EFFECTIVE.

1913*sec^i‘9-

619. Sec. 19. Demand deposits within the meaning
of this Act shall comprise all deposits payable within
i9nfsec.wf 21* thirty days, and time deposits shall comprise all deposits
payable after thirty days, all savings accounts and cer
tificates of deposit which are subject to not less than
thirty days’ no#tice before payment, and all postal savings
deposits.1
Every bank, banking association, or trust company
which is or which becomes a member of any Federal
reserve bank shall establish and maintain reserve bal
ances with its Federal reserve bank as follows:
stat'.

. *270.’

RESERYE REQUIREMENTS FOR BANES NOT IN RESERVE!
CITIES.

i9i3ct8ec>eci9-

619a. (a) If not in a reserve or central reserve city,
as now or hereafter defined, it shall hold and maintain
i9nfsec.uio? 21’ with the Federal reserve bank of its district an actual net
balance equal to not less than seven per centum of the
aggregate amount of its demand deposits and three per
centum of its time deposits.

stat?.

*270.’

i Section 7 of the Act approved April 24,1917, provides in part, “ That the provi
sions of section fifty-one hundred ana ninety-one of the Revised Statutes, as amended
by the Federal Reserve Act and the amendments thereof, with reference to the re
serves required to be Kept by national banking associations and other member banks
of the Federal Reserve System, shall not apply to deposits of public moneys by the
United States in designated depositaries.

THE FEDERAL RESERVE ACT.
RESERVE REQUIREMENTS
CITIES.

FOR

BANKS

149

RESERVE

619b. (b) If in a reserve city, as now or hereafter
^
defined, it shall hold and maintain with the Federal stat’.L.^Vo. ’
reserve bank of its district an actual net balance equal to 1914; 33 stat. l .'
not less than ten per centum of the aggregate amount of 69^cfc June 2lf
its demand deposits and three per centum of its time 1917, sec. 10.
deposits.
RESERVE REQUIREMENTS
RESERVE CITIES.

FOR BANKS

CENTRAL

619c. (c) If in a central reserve city, as now or here- 19^ctse£eci9. ^
after defined, it shall hold and maintain with the Federal stat\ l . , 270.’
reserve bank of its district an actual net balance equal 1914; 38 stat. l.\
to not less than thirteen per centum of the aggregate 69,^ct June 21
amount of its demand deposits and three per centum of M 7, sec. 10.
its time deposits.
MEMBER BANK FORBIDDEN TO KEEP ON DEPOSIT WITH
NONMEMBER BANK A SUM IN EXCESS OF TEN PER
CENT OF ITS OWN CAPITAL AND SURPLUS OR TO
SECURE DISCOUNTS FOR NONMEMBER BANK.

619d. No member bank shall keep on deposit with
any State bank or trust company which is not a member stat'. L.,‘271.'
bank a sum in excess of ten per centum of its own paid-up wuf38^tlt. if;
capital and surplus. No member bank shall act as m^ct June u*
the medium or agent of a nonmember bank in applying 1917, sec. 10.
for or receiving discounts from a Federal reserve bank
under the provisions of this Act, except by permission
of the Federal Reserve Board.
WITHDRAWAL OF RESERVE BY MEMBER BANK.

619e. The required balance carried by a ipember 19^ct se^6^. ^
bank with a Federal reserve bank may, under the stat’. l.,*271.’
regulations and subject to such penalties as may be lsufaslstlt. if)
prescribed by the Federal Reserve Board, be checked69^,. June
against and withdrawn by such member bank for the 1917, sec. 10. '
purpose of meeting existing liabilities: Provided, how
ever, That no bank shall at any time make new loans or
shall pay any dividends unless and until the total balance
required bylaw is fully restored.
RESERVE REQUIREMENT—HOW ESTIMATED.

619f. In estimating the balances required by this 19^3ct
Act, the net difference of amounts due to and from other st. t., 271.
banks shall be taken as the basis for ascertaining the wuf38^tlt. if)
deposits against which required balances with Federal69^ . June J
reserve banks shall be determined.
1917, sec. 10. '
RESERVE REQUIREMENTS FOR NATIONAL BANKS LO
CATED IN ALASKA OR OUTSIDE TH jS CONTINENTAL
UNITED STATES.

6192. National banks, or 1: 1
1
1
23*
local Taws, located in Alaska
insular possession or any pari
.... ........if;
outside the continental United States may remain non

150
Act June
1917, sec. 10 .

THE FEDERAL RESERVE ACT.

l>member banks, and shall in that event maintain reserves

and comply with aU the conditions now provided by law
regulating them; or said banks may, with the consent of
the Reserve Board, become member banks of any one of
the reserve districts, and shall in that event take stock,
maintain reserves, and be subject to all the other pro
visions of this Act.
REDEMPTION FUND WITH
COUNTED AS RESERVE.

Act Dec.
1913, sec. 20;
Stat. It,, 271.

TREASURER NOT

620. Sec. 20.—So much of sections two and three of
the Act of June twentieth, eighteen hundred and seventyfour, entitled “ An Act fixing the amount of United
States notes, providing for a redistribution of the nationalbank currency, and for other purposes,” as provides that
the fund deposited by any national banking association
with the Treasurer of the United States for the redemp
tion of its notes shall be counted as a part of its lawful
reserve as provided in the Act aforesaid, is hereby re>ealed. And from and after the passage of this Act such
und of five per centum shall in no case be counted by any
national banking association as a part of its lawful
reserve.

BANE EXAMINATIONS.

APPOINTMENT AND POWERS OF EXAMINERS—ACCEPT
ANCE OF REPORTS OF EXAMINATIONS BY STATE
AUTHORITY.
Act Dec.
1913, sec. 21;
Stat. L., 271.

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

Act Dec.
1913, sec. 21;
Stat. L., 272.

621a. The Federal Reserve Board, upon the recom
mendation of the Comptroller of the Currency, shall fix
the salaries of all bank examiners and make report thereof
to Congress. The expense of the examinations herein
provided for shall be assessed by the Comptroller of the

THE FEDERAL RESERVE ACT.

151

Currency upon the banks examined in proportion to
assets or resources held by the banks upon the dates of
examination of the various banks.
EXAMINATIONS BY FEDERAL RESERVE BANK.

621b. In addition to the examinations made and conducted by the Comptroller of the Currency, every Federal stat. l . ,
reserve bank may, with the approval of the Federal
reserve agent or the Federal Reserve Board, provide for
special examination of member banks within its district.
The expense of such examinations shall be borne by the
bank examined. Such examinations shall be so con
ducted as to inform the Federal reserve bank of the con
dition of its member banks and of the lines of credit
which are being extended by them.
Every Federal
reserve bank shall at all times furnish to the Federal
Reserve Board such information as may be demanded
concerning the condition of any member bank within the
district of the said Federal reserve bank.
No bank shall be subject to any visitatorial powers
other than such as are authorized by law, or vested in the
courts of justice or such as shall be or shall have been
exercised or directed by Congress, or by either House
thereof or by any committee of Congress or of either
House duly authorized.

2k
272/

EXAMINATIONS OF FEDERAL RESERVE BANKS.

621c. The Federal Reserve Board shall, at least once
^
each year, order an examination of each Federal reserve stat'. L.,272/
bank, and upon joint application of ten member banks
the Federal Reserve Board shall order a special examina
tion and report of the condition of any Federal reserve
bank.
LOANS AND GRATUITIES TO BANK EXAMINERS FOR
BIDDEN. NATIONAL-BANK EXAMINERS NOT PER
MITTED TO PERFORM ANY OTHER SERVICE FOR
COMPENSATION WHILE HOLDING SUCH OFFICE FOR
ANY BANK OR OFFICER OR EMPLOYEE THEREOF.

622. Sec. 22.— No member bank or any officer, director, or employee thereof shall hereafter make any loan or fctat'. 1^
grant any gratuity to any bank examiner. Any bank
officer director, or employee violating this provision
shall be deemed guilty of a misdemeanor and shall be
imprisoned not exceedmg one year or fined *not more than
$5,000, or both; and may be fined a further sum equal to
the money so loaned or gratuity given. Any examiner
accepting a loan or gratuity from any bank examined by
him or from an officer, director, or employee thereof shall
be deemed guilty of a misdemeanor and shall be im
prisoned not exceeding one year or fined not more than
$5,000, or both; and may be fined a further sum equal to
the money so loaned or gratuity given; and shall forever
thereafter be disqualified from holding office as a nationalbank examiner. No national-bank examiner shall per-

^
272.'

1 52

t h e fed eral reserve a c t .

form any other service for compensation while holding
such office for any bank or officer, director, or employee
thereof.
OFFICERS OR EMPLOYEES NOT PERMITTED TO RECEIVE
ANY FEE OR OTHER CONSIDERATION IN CONNECTION
WITH ANY BUSINESS OF THE BANK OTHER THAN THE
SALARY OR THE DIRECTOR’ S FEE. EXAMINER FOR
BIDDEN TO DISCLOSE THE NAMES OF BORROWERS
OR THE COLLATERAL FOR LOANS TO OTHER THAN
THE PROPER OFFICERS.

stat! l., 272.’

622a. Other than the usual salary or director’s fee
paid to any officer, director, employee, or attorney of a
21, member bank, and other than a reasonable fee paid by
said bank to such officer, director, employee, or attorney
for services rendered to such bank, no officer, director,
employee, or attorney of a member bank shall be a
beneficiary of or receive, directly or indirectly, any fee,
commission, gift, or other consideration for or in connec
tion with any transaction or business of the bank: Pro
vided, however, That nothing in this Act contained shall
be construed to prohibit a director, officer, employee, or
attorney from receiving the same rate of interest paid to
other depositors for similar deposits made with sucn bank:
And providedfurther, That notes, drafts, bills of exchange,
or other evidences of debt executed or indorsed by
directors or attorneys of a member bank may be dis
counted with such member bank on the same terms and
conditions as other notes, drafts, bills of exchange, or
evidences of debt upon tne affirmative vote or written
assent of at least a majority of the members of the board
of directors of such member bank.
No examiner, public or private, shall disclose the
names of borrowers or the collateral for loans of a
member bank to other than the proper officers of such
bank without first having obtained the express permission
in writing from the Comptroller of the Currency, or from
the board of directors of such bank, except when ordered
to do so by a court of competent jurisdiction, or by direc
tion of the Congress of the United States, or of either
House thereof, or any committee of Congress or of either
House duly authorized. Any person violating any pro
vision of this section shall be punished by a fine of not
exceeding $5,000 or by imprisonment not exceeding one
year, or both.
Except as provided in existing laws, this provision shall
not take effect until sixty days after the passage of this
Act.
LIABILITY OF STOCKHOLDERS OF NATIONAL BANKS.

msfse&'as; % 623, Sec. 23.— The stockholders of every national bankstat. L./273.’
ing association shall be held individually responsible for
alTcontracts, debts, and engagements of such association,
each to the amount of his stock therein, at the par value
thereof in addition to the amount invested in such stock.
The stockholders in any national banking association

THE FEDERAL RESERVE ACT.

153

who shall have transferred their shares or registered the
transfer thereof within sixty days next before the date of
the failure of such association to meet its obligations, or
with knowledge of such impending failure, shall be liable
to the same extent as if they had made no such transfer,
to the extent that the subsequent transferee fails to
meet such liability; but this provision shall not be con
strued to affect in any way any recourse which such share
holders might otherwise have against those in whose
names such shares are registered at the time of such
failure.
LOANS ON BEAL ESTATE.

624. Sec. 24.—Any national banking association not
^
situated in a central reserve city may make loans secured stat'. L.,273/
by improved and unencumbered farm land situated within
stat l 7;
its Federal reserve district or within a radius of one hun- 754dred miles of the place in which such bank is located, irre
spective of district lines, and may also make loans secured
by improved and unencumbered real estate located
within one hundred miles of the place in which such bank
is located, irrespective of district lines; but no loan made
upon the security of such farm land shall be made for a
longer time than five years, and no loan made upon the
security of such real estate as distinguished from farm
land shall be made for a longer time than one year nor
shall the amount of any such loan, whether upon such
farm land or upon such real estate, exceed fifty per centum
of the actual value of the property offered as security.
Any such bank may make such loans, whether secured by
such farm land or such real estate, in an aggregate sum
equal to twenty-five per centum of its capital and surplus
or to one-third of its time deposits and such banks may
continue hereafter as heretofore to receive time deposits
and to pay interest on the same.
The Federal Reserve Board shall have power from
time to time to add to the list of cities in which national
banks shall not be permitted to make loans secured upon
real estate in the manner described in this section.
FOREIGN BRANCHES.

625. Sec. 25.—Anynationalbanking association possess^
ing a capital and surplus of $ 1 ,0 0 0 ,0 0 0 or more may file stat”. l ., *273.'
application with the Federal Reserve Board for permis
sion to exercise, upon such conditions and under such 19^ct39
L7»
regulations as may be prescribed by the said board, 755.’
either or both of the following powers:
First. To establish branches in foreign countries or
dependencies or insular possessions of the United States
for the furtherance of the foreign commerce of the
United States, and to act if required to do so as fiscal
agents of the United States.
Second. To invest an amount not exceeding in the
aggregate ten per centum of its paid-in capital stock and

THE FEDERAL RESERVE ACT.

154

surplus in the stock of one or more banks or corporations
chartered or incorporated under the laws of the United
States or of any State thereof, and principally engaged in
international or foreign banking, or banking in a depen
dency or insular possession of the United States either
directly or througn the agency, ownership, or control of
local institutions in foreign countries, or in such depen
dencies or insular possessions.
Such application shall specify the name and capital of
the banking association filing it, the powers applied for,
and the place or places where the banking operations pro
posed are to be carried on. The Federal Reserve Board
shall have power to approve or to reject such application
in whole or in part if for any reason the granting of such
application is deemed inexpedient, and shall also have
power from time to time to increase or decrease the
number of places where such banking operations may be
carried on.
Every national banking association operating foreign
branches shall be required to furnish information con
cerning the condition of such branches to the Comp
troller of the Currency upon demand, and every member
bank investing in the capital stock of banks or corpora
tions described under subparagraph two of the first
paragraph of this section shall be required to furnish in
formation concerning the condition of such banks or cor
porations to the Federal Reserve Board upon demand,
and the Federal Reserve Board may order special exami
nations of the said branches, banks, or corporations at
such time or times as it may deem best.
Before any national bank shall be permitted to pur
chase stock in any such corporation the said corpora
tion shall enter into an agreement or undertaking with
the Federal Reserve Board to restrict its operations or
conduct its business in such manner or under such limi
tations and restrictions as the said board may prescribe
for the place or places wherein such business is to be
conducted. If at any time the Federal Reserve Board
shall ascertain that the regulations prescribed by it are
not being complied with, said board is hereby author
ized and empowered to institute an investigation of the
matter and to send for persons and papers, subpoena
witnesses, and administer oaths in order to satisfy itself
as to the actual nature of the transactions referred to.
Should such investigation result in estabUshing the
failure of the corporation in question, or of the national
bank or banks which may be stockholders therein, to
comply with the regulations laid down by the said
Federal Reserve Board, such national banks may be
required to dispose of stock holdings in the said corpora
tion upon reasonable notice.
Every such national banking association shall con
duct the accounts of each foreign branch independently
of the accounts of other foreign branches established by

THE FEDERAL RESERVE ACT.

155

it and of its home office, and shall at the end of each
fiscal period transfer to its general ledger the profit or
loss accrued at each branch as a separate item.
Any director or other officer, agent, or employee of
any member bank may, with the approval of the Federal
Reserve Board, be a director or other officer, agent, or
employee of any such bank or corporation above men
tioned in the capital stock of which such member bank
shall have invested as hereinbefore provided, without
being subject to the provisions of section eight of the
Act approved October fifteenth, nineteen hundred and
fourteen, entitled “ An Act to supplement existing laws
against unlawful restraints ana monopolies, and for
other purposes.”
REPEAL OF PROVISIONS OF LAW INCONSISTENT WITH
THE PROVISIONS OF THE FEDERAL RESERVE ACT.

626. Sec. 26.—All provisions of law inconsistent with jg^fsec^; fg
or superseded by any of the provisions of this Act are to stat. l . , 274.’
that extent and to that extent only hereby repealed:
Provided} Nothing in this Act contained shall be con
strued to repeal the parity provision or provisions con
tained in an Act approved March fourteenth, nineteen
hundred, entitled “ An Act to define and fix the standard
of value, to maintain the parity of all forms of money
issued or coined by the United States, to refund the public
debt, and for other purposes,” and the Secretary of the
Treasury may, for the purpose of maintaining such parity
and to strengthen the gold reserve, borrow gold on the
security of United States bonds authorized by section two
of the "Act last referred to or for one-year gold notes
bearing interest at a rate of not to exceed three per centum
per annum, or sell the same if necessary to obtain gold.
When the funds of the Treasury on hand justify, he may
purchase and retire such outstanding bonds and notes.
ACT OF MAY 30, 1908, EXTENDED TO JUNE 30, 1915.
REENACTMENT OF CERTAIN SECTIONS OF REVISED
STATUTES.

627. Sec. 27.—The provisions of the Act of May thir- 19^3ctse®e^. ^
tieth, nineteen hundred and eight, authorizing national stat. l .,‘274.’
currency associations, the issue of additional national- 19 ^ 3 8 stat. l !|
bank circulation, and creating a National Monetary Com- 682-’
mission, which expires by limitation under the terms of
such Act on the thirtieth day of June, nineteen hundred
and fourteen, are hereby extended to June thirtieth, nine
teen hundred and fifteen, and sections fifty-one hundred
and fifty-three, fifty-one hundred and seventy-two, fiftyone hundred and ninety-one, and fifty-two hundred and
fourteen of the Revised Statutes of the United States,
which were amended by the Act of May thirtieth, nine
teen hundred and eight, are hereby reenacted to read as
such sections read prior to May thirtieth, nineteen hun
dred and eight, subject to such amendments or modifica
tions as are prescribed in this Act:

156

THE FEDERAL RESERVE ACT.
BATE OF TAXATION ON CIRCULATING NOTES SECURED
OTHERWISE THAN BT BONDS OF THE UNITED STATES.
WHEN SECRETARY OF TREASURY AUTHORIZED TO
SUSPEND LIMITATIONS OF ACT OF MAY 30, 1908.

627a.— Provided, however, That section nine of the Act
first referred to in this section is hereby amended so as to
1914^38 stat. l.; change the tax rates fixed in said Act by making the portion applicable thereto read as follows:
National banking associations having circulating
notes secured otherwise than by bonds of the United
States, shall pay for the first three months a tax at the
rate of three per centum per annum upon the average
amount of such of their notes in circulation as are based
upon the deposit of such securities, and afterwards an
additional tax rate of one-half of one per centum per
annum for each month until a tax of six per centum per
annum is reached, and thereafter such tax of six per
centum per annum upon the average amount of such
notes: Providedfurther. That whenever in his judgment
he may deem it desirable, the Secretary of the Treasury
shall have power to suspend the limitations imposed by
section one and section tnree of the Act referred to in this
section, which prescribe that such additional circulation
secured otherwise than by bonds of the United States
shall be issued only to National banks having circulating
notes outstanding secured by the deposit of bonds of the
United States to an amount not less than forty per centum
of the capital stock of such banks, and to suspend also the
conditions and limitations of section five of said Act except
that no bank shall be permitted to issue circulating notes
in excess of one hundred and twenty-five per centum of its
unimpaired capital and surplus. He shall require each
bank and currency association to maintain on deposit in
the Treasury of the United States a sum in gold sufficient
in his judgment for the redemption of such notes, but in
no event less than five per centum. He may permit
National banks, during tne period for which such pro
visions are suspended, to issue additional circulation under
the terms and conditions of the Act referred to as herein
amended: Provided further, That the Secretary of the
Treasury, in his discretion, is further authorized to extend %
the benefits of this Act to all qualified State banks and
trust companies, which have joined the Federal reserve
system, or which may contract to join within fifteen days
after the passage of this Act.
stat.L .

,'ml

REDUCTION OF CAPITAL OF NATIONAL BANKS.

lM^se?6^; ^
628. Sec. 28.— Section fifty-one hundred and fortystat. l . , i 74.’
three of the Revised Statutes is hereby amended and reen
acted to read as follows: Any association formed under
this title may, by the vote of shareholders owning twothirds of its capital stock, reduce its-capital to any sum
not below the amount required by this title to authorize
the formation of associations; but no such reduction shall
be allowable which will reduce the capital of the associa

THE FEDERAL RESERVE ACT,

157

tion below the amount required for its outstanding circu
lation, nor shall any reduction be made until the amount
of the proposed reduction has been reported to the Comp
troller of the Currency and such reduction has been ap
proved by the said Comptroller of the Currency and by
the Federal Reserve Board, or by the organization com
mittee pending the organization of the Federal Reserve
Board,
INVALIDATION OF CLAUSE, ETC., IN ACT NOT TO INVALI
DATE REMAINDER OF ACT.

629. Sec. 29.— If any clause, sentence, paragraph, or 19^fge®6^ ' ^
part of this Act shall for any reason be adjudged by any stat. L ., 275.’
court of competent jurisdiction to be invalid, such judg
ment shall not affect, impair, or invalidate the remainder
of this Act, but shall be confined in its operation to the
clause, sentence, paragraph, or part thereof directly in
volved in the controversy in which such judgment shall
have been rendered.
RESERVATION OF RIGHT TO AMEND OR REPEAL.

630. Sec. 30.—The right to amend, alter, or repeal this
^
Act is hereby expressly reserved.
stat. l ., *275.’

158

THE FEDERAL BESEBVE ACT.

THE FEDERAL BESERVE ACT.

159

160

THE FEDERAL BESEBVE ACT.

THE FEDERAL RESERVE ACT.

44326'—S. Doc. 412,64-1------11

161

1 HE FEDERAL RESERVE ACT.

THE FEDERAL RESERVE ACT.

163

164

THE EEDEBAL BESEBVE ACT.

CHAPTER VII.
ACTS OF A GENERAL NATURE AND SECTIONS OF THE REVISED STATUTES,
NOT INCLUDED IN THE NATIONAL BANK ACT, AFFECTING NATIONAL
BANKS.

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

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

ALL SUITS UNDER BANKING LAW IN WHICH THE UNITED
STATES OR ANT OF ITS OFFICERS OR AGENTS ARE
PARTIES TO BE CONDUCTED BT DISTRICT ATTORNETS UDER THE SUPERVISION OF THE SOLICITOR
OF THE TREASURT.

700. Sec.• 380.—All
suits and
proceedings
arising
out Io W jC * WI®?» -1
•
• | ___
•
..
i* ?
| •
^ S C C iO O ,
of the provisions of law governing national banking asso- 12stat. l.,6so.
ciations, in which the United States or any of its officers i8«4?e.io6™c.56;
or agents shall be parties, shall be conducted by the d is-13s*®*- L->u®- ’
trict attorneys of tne several districts under the direction
and supervision of the Solicitor of the Treasury.
N o t e .—The United States Supreme Court decided in the case of
Gibson v. Peters (150 U. S., 342) that a district attorney could not
receive any compensation for services in conducting a suit arising
out of the provisions, of the national banking laws in which the United
States or any of its officers or agents are parties.

JURISDICTION OF DISTRICT COURT TO ENJOIN COMPTROLLER.

701. Sec. 24.—The district court shall have original sec 24^stat9L'
j urisdiction as follows:
1092.'
sfc

♦

Sixteenth. Of all cases commenced by the United
States, or by direction of any officer thereof, against any
national banking association, and cases for winding up
the affairs of any such bank; and of all suits brought by
any banking association established in the distnct for
wmch the court is held, under the provisions of title
“ National Banks,” Revised Statutes, to enjoin the
Comptroller of the Currency, or any receiver acting under
his direction, as provided by said title. And all national
banking associations established under the laws of the
United States shall, for the purposes of all other actions
by or against them, real, personal, or mixed, and all suits

165

166

A CTS OF G ENER AL N A T U R E .

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

WHERE SUCq PROCEEDINGS MUST BE BROUGHT.

i8«4Ctc io60secs'
50,57; 13 stat. l . ,
115, lie.

702. Sec. 736.—All proceedings by any national banking association to enjoin the Comptroller of the Currency, under the provisions of any law relating to national
banking associations, shall be had in the district where
such association is located.
SEALED CERTIFICATES OF COMPTROLLER COMPETENT
EVIDENCE.

1864*0 A

13 stat. l . 100! '

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

CERTIFIED COPT OF ORGANIZATION CERTIFICATE AS
EVIDENCE.
i 864° c 106*860 613 stat. l . , ioi. ’

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

C IR C U L A T IO N .

TAX ON CIRCULATION.

705. Sec. 3408.—
Note.—The tax on circulation was originally provided for in the act
of June 30,1864. The taxation provisions were amended by section 6
of the act of March 3,1865, by section 9 of the act of July 13,1866, and
by the act of June 6.1872, section 37. The provisions as thus amended
were incorporated in the Revised Statutes as section 3408. This sec
tion included three subsections, the first imposing a tax on deposits,
the second on capital, and the third on circulation of banking institu
tions. The first and second subsections of this section were repealed
by the act of March 3,1883, and the third subsection was superseded by
the act of February 8, 1875.
CIRCULATION—WHEN EXEMPTED FROM TAX.

706.
Sec. 3411.— Whenever the outstanding circul
of any bank, association, corporation, company, or person
1866°c. 184/Le.1®; is reduced to an amount not exceeding five per centum of
14 stat. l . ’ 146. ’ the chartered or declared capital existing at the time the
same was issued, said circulation shall be free from taxa-

stat/L. 486. ’

167

ACTS OF GENERAL N A T U R E .

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

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

709. Sec. 20.— That every such person, firm, associa- c
tion, corporation, State bank, or State banking associa- stat/L., 311. ’
tion, ana also every national banking association, shall
pay a like tax of ten per centum on the amount of notes
of any person, firm, association other than a national
banking association, or of any corporation, State bank, or
State banking association, or of any town, city, or munici
pal corporation, used for circulation and paid out by them.
BANKS’ RETURNS; PAYMENT OF TAX PENALTIES.
FEBRUARY 8, 1875.

ACT

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

SEMIANNUAL RETURN BY BANKS.

711. Sec. 3414.—A true and complete return of the 18^ctc/y*e s™>
monthly amount of circulation, [of deposits, and of capi- no;'i3*stat. .\
tal], as aforesaid, and of the monthly amount of notes of 27i ct July 13,
persons, town, city, or municipal corporations, State
^ec- 9>
banks, or State banking associations paid out as aforesaid Act ‘ Mar. 26,
for the previous six months, shall be made and rendered in lfstat.' l ’ ,T * 2;
duplicate on the first day of December and the first day 18^ctc J3^ e s£>
of June, by each of such banks, associations, corporations, 37; ' 17*stat. l . ‘,
companies, or persons, with a declaration annexed thereto, ^Act Dec 24,
under the oatn of such person, or of the president or }fg{act- s4^, 5;
cashier of such bank, association, corporation, or com
pany, in such form and manner as may be prescribed by
the Commissioner of Internal Revenue, that the same
contains a true and faithful statement of the amounts

ACTS OF GENERAL NATURE,

168

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

FAILURE TO MAKE RETURN.
MATE.

COMMISSIONER TO ESTI

7m sec
712. Sec. 3415.—In default of the returns provided in
no;' i3 stat. l.', the preceding section, the amount of circulation, [deposit,
27jict July 13, capital]) and notes of persons, towns, city, and municipal
ifsiati *l' m6.9; corporations, State banks, and State banking associations
Act ’ n©c. 24, paid out, as aforesaid, shall be estimated by the Commisi77slat. l!, 402.2’ sioner of Internal Revenue, upon the best information he
can obtain. And for any refusal or neglect to make
return and payment, any such bank, association, corpora
tion, company, or person so in default shall pay a penalty
of two hundred dollars, besides the additional penalty and
forfeitures provided in other cases.
N o t e .—See

note under preceding section.

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

713. Sec. 3416.— Whenever any State bank or banking
association has been converted into a national banking
igfcfc. iSfaec.1#: association, and such national banking association has
14 siat. L .’, 146. assumed the liabilities of such State bank or banking
association, including the redemption of its bills, by any
agreement or understanding whatever with the representa
tives of such State bank or banking association, such
national banking association shall be held to make the
dilation outstandexceed five per
sion of such State
bank or banking association.

stat/L., 486.'

TAX PROVISIONS RESTRICTED.

?14. Sec. 3417 [as amended 1875].—The provisions of
chapter relating to the tax on the [deposits, capital,
^A ct ju iy 13, and] circulation of banks and to their returns, except as
sec. contained in sections thirty-four hundred and ten, thirtyAct Feb.' is; four hundred and eleven, thirty-four hundred and twelve,
l.^ 19.80118 tat*thirty-four hundred and thirteen, and thirty-four hun
dred and sixteen, and such parts of sections thirty-four
hundred and fourteen and thirty-four hundred and fif
teen as relate to the tax of ten per centum on certain notes,
shall not apply to associations which are taxed under and
by virtue o f Title “ National Banks.”

i 864Ctc J i 73 sec’

no;113

stat. l . ‘, this

N o t e .—See note under section 3414 stating that taxes on deposits
and capital were repealed by act March 3, 1883.

ACTS OF GENERAL NATURE.
TAXES ON INSOLVENT BANKS.

169

ACT MARCH 1, 1879.

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

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

TAX ON UNITED STATES AND NATIONAL BANK NOTES.

OBLIGATIONS OF UNITED STATES EXEMPT FROM TAXA
TION.

716. Sec. 3701.—All stocks, bonds, Treasury notes, and 18^ctc
other obligations of the United States, shall be exempt 12 dtat. L, m.
from taxation by or under State or municipal or local c. raTsec3'
authority.
see. 1; 13 Stat. L., 13. Act June 30,1864, c. 172, sec. 1; 13 Stat. L ., 218. Act Jan. 28! 1865,’
c. 22, sec. 1; 13 Stat. L ., 425. Act Mar. 3,1865, c. 77, sec. 2; 13 Stat. L., 469. Act July 14,
1870, c. 256, sec. 1; 16 Stat. L., 272.

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

717. Sec. 1.—That circulating notes of national bank- 18£ct
^
ing associations and United States legal-tender notes and stat'. l ., 278.’
other notes and certificates of the United States payable
on demand and circulating or intended to circulate as
currency and gold, silver or other coin shall be subject
to taxation as money on hand or on deposit under the
laws of any State or Territory: Provided, That any such
taxation shall be exercised in the same manner and at the
same rate that any such State or Territory shall tax money
or currency circulating as money within its jurisdiction.

Sec. 2. That the provisions of this act snail not be 18£ct
deemed or held to change existing laws in respect of the stat. l . , m
taxation of national banking associations.

RESTRICTIONS ON NOTES LESS THAN ONE DOLLAR.

718. Sec. 3583.— Superseded by section 178, act March
4, 1909.
Sec. 178. No person shall make, issue, circulate, or 18^ctcmSSJm61^
pay out any note, check, memorandum, token, or other 12 stat. l . ' 592. ’
obligation for a less sum than one dollar, intended t o c. ^ ^ ^ f &
circulate as money or to be received or used in lieu of stat- ^ un
lawful money of the United States; and every person so
offending shall be fined not more than five hundred dol
lars, or imprisoned not more than six months, or both.
N o t e .—This restriction is held to apply only to checks issued for
the purpose of circulating as money ana not to checks issued in the
ordinary course of business.

170

ACTS OF GENERAL NATURE.
LEGAL TENDER.

FOREIGN COINS.

719. Sec. 3584.—No foreign gold or silver coins shall
*be a legal tender in payment of debts.

i 857Ctc. S ebsec.23;

11 siat. l!, 163.

N o t e .—The coinage by the government of Philippine Islands of the
various silver and minor coins for use in the islands is authorized and
the legal-tender quality of such coins as well as of the £old coins of the
United States in the islands is prescribed by the act of July 1, 1902,
c. 1369, secs. 76-83; 32 Stat. L., 710; and the act of March 2, 1903, c.
980, sec. 4; 32 Stat. L., 953.

GOLD COIN OF THE UNITED STATES.

isref c.Fm, sec. 720. Sec. 3585.—The gold coins of the United States
17 ‘ stat. l.) shall be a legal tender in all payments at their nominal
value when not below the standard weight and limit of
tolerance provided by law for the single piece, and when,
reduced in weight below such standard and tolerance,
shall be a legal tender at valuation in proportion to their
actual weight.

14;

721. Sec. 3586.—
[Superseded by res. July 22, 1876, No. 17, sec. 2; act Feb. 28, 1878,
c. 20, sec. 1; act June 9, 1879, c. 12, sec. 3.]
AUTHORIZING COINAGE OF STANDARD SILVER DOLLARS
AND MAKING THEM LEGAL TENDER. ACT OF FEB
RUARY 28, 1878.
im * c £ bsec.1;
20 siat. l ’., 25. '

722. Sec. 1.— That there shall be coined, at the several
mints of the United States, silver dollars of the weight of
412£ grains Troy of standard silver, as provided in the
act o f January 18, 1837, on which shall be the devices
and superscriptions provided by said act; which coins
together with all silver dollars heretofore coined by the
United States, of like weight and fineness, shall be a
legal tender, at their nominal value, for all debts and
dues public and private, except where otherwise ex
pressly stipulated in the contract.
SUBSIDIARY SILYER COINS. ACT JUNE 9, 1879.

1879*0 i2“sec. 3: 723. Sec. 3.—That the present silver coins of the United
21 slat.l!,8. * 'States of smaller denominations than one dollar shall
hereafter be a legal tender in all sums not exceeding ten
dollars in full payment of all dues public and private.
MINOR COINS.

i873Ctc.^3i‘, sec'. 724. Sec. 3587.—The minor coins of the United States
1$ 17‘ stat. l .‘, shall be a legal tender, at their nominal value for any
427.

407

amount not exceeding twenty-five cents in any one pay
ment.
UNITED STATES NOTES.

1862*0 i?bsec.^

725. Sec. 3588.—United States notes shall be lawful
money, and a legal tender in payment of all debts, public
i8R c. 142,sec.1}; and private, witnin the United States, except for duties
r « Jan n ’lSff 011 imPorts and interest on the public debt.

12 siat. l ! . 345. ’

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

ACTS OF GENERAL NATURE.

171

DEMAND TREASURY NOTES.

726. Sec. 3589.—Demand Treasury notes authorized by 18^ctc
the act of July 17, 1861, chapter 5, and the act of Febru- 12 s la t . L ' 259.
ary 12, 1862, chapter 20, shall be lawful money and a 18^ . 2^* 2 stS;
legal tender in like manner as United States notes.
af'iwi cA33^ec*
1; 12Stat. L., 345. ActMar. 17,1862, c. 45, sec. 2; i2Stat. L.’37.*
INTEREST-BEARING NOTES.

727. Sec. 8590.—Treasury notes issued under the au-c.A^t^ ,3,218^
thority of the acts of March 3,1863, chapter 73, and June sta t.’L .^ io .’
30, 1864, chapter 172, shall be legal tender to the same imX m^lec.3!
extent as United States notes, for their face value, exclud- 13stat*L»ris
ing interest: Provided, That Treasury notes issued under
the act last named shall not be a legal tender in payment
or redemption of any notes issued by any bank, banking
association, or banker, calculated and intended to circu
late as money.
FOR WHAT DEMANDS NATIONAL-BANK NOTES MAY BE
RECEIVED.

728. Sec. 5182.—
N o t e .—See section

5182, national-bank act, paragraph 337, ante.

GOLD CERTIFICATES. ACT JULY 12, 1882.

729. Sec. 12.—That the Secretary of the Treasury is 18^ct
authorized and directed to receive deposits of gold coin stat. l., 165. ’
with the Treasurer or assistant treasurers of the United
States, in sums of not less than twenty dollars, and to
issue certificates therefor in denominations of riot less
than twenty dollars each, corresponding with the denomi
nations of United States notes. The coin deposited for or
representing the certificates of deposits shall be retained
in the Treasury for the payment of the same on demand.
Said certificates shall be receivable for customs, taxes,
and all public dues, and when so received may be reis
sued; and such certificates, as also silver certificates, when
held by any national banking association, shall be counted
as part of its lawful reserve; and no national banking
association shall be a member of any clearing house in
which such certificates shall not be receivable in the settle
ment of clearing-house balances: Provided, That the Sec
retary of the Treasury shall suspend the issue of such
gold certificates whenever the amount of gold coin and
gold bullion in the Treasury reserved for the redemption
of United States notes falls below one hundred millions
of dollars®; and the provisions of section fifty-two hun
dred and seven of the Revised Statutes shall be appli
cable to the certificates herein authorized and directed
to be issued.
N o t e .—See section 6 of the currency act of March 14, 1900, as
amended March 4,1907, March 2,1911, and June 12,1916, paragraph 752,
post, for additional provisions relating to gold certificates and making
$10 lowest denomination. Gold and silver certificates are not legal
tender, but are receivable for all public dues.

172

ACTS OF GENERAL NATURE.
G O V E R N M E N T D E P O S IT A R IE S .

DUTT OF DISBURSING OFFICERS.

isMhc
^ 0 . Sec. S620 [as amended 1877].— It shall be the duty
14stat. l.! 64. ’ of every disbursing officer haying any public money inisrcfc. w^sec.2!; trusted to him for disbursement, to deposit the same with
i» stat. l., 249. the Treasurer or some one of the assistant treasurers of
the United States, and to draw for the same only as it
may be required for payments to be made by him in pur
suance of law; and draw for the same only in favor
of the persons to whom payment is made, ana all trans
fers from the Treasurer of the United States to a dis
bursing officer shall be by draft or warrant on the
Treasury or an assistant treasurer of the United States.
In places, however, where there is no Treasurer or assist
ant treasurer, the Secretary of the Treasury may, when
he deems it essential to the public interest, specially au
thorize in writing the deposit of such public money in
any other public depository, or, in writing, authorize the
same to be kept in any other manner, and under such
rules and regulations as he may deem most safe and
effectual to facilitate the payments to public creditors.
N o t e .—See also act March 2, 1907, 34 Stat. L., 1166, authorizing
Army officers to keep in their possession restricted amounts of public
funds. See also act December 23,1913, section 15, paragraph 734, post.

PROVISIONS FOR DEPOSIT BT CERTAIN POSTMASTERS.

1873* c M^2- if

731" Sec. 8847 [as amended 1908].— Any postmaster,
stat’ L..604.'
having public money belonging to the Government, at an
i9oef
3$ office within a city or town where there is no Treasurer or
stat. l .\ 4i5.' Assistant Treasurer of the United States, or designated de
positary, may deposit the same temporarily, at his own
risk and in his official capacity, in any national or State
bank in the State in whicn the said postmaster resides, or
in which his office is located, or within a reasonable radius
of his post office in an adjacent State, but no authority
or permission is or shall be given for the payment to or
receipt by a postmaster or any other person, of interest,
directly or indirectly, on any deposit made as herein
described.
MISAPPROPRIATING POSTAL FUNDS OR PROPERTT;
PUNISHMENT FOR; PRIMA FACIE EVIDENCE; DEPOS
ITS, ETC., PERMITTED.

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

•

i9wf c. 32i ‘ sec. Sec. 225.— Whoever, being a postmaster or other per225^35 staf. l.‘ son employed in or connected with any branch of the
postal service, shall loan, use, pledge, hypothecate, or
convert to his own use, or shall deposit in any bank, or
exchange for other funds or property, except as author
ized by law, any money or property coming into his hands
or under his control in any manner whatever, in the exe
cution or under color of his office, employment, or service,

ACTS OF GENERAL NATURE.

whether the same shall be the money or property of the
United States or not; or shall fail or refuse to remit to or
deposit in the Treasury of the United States or in a desig
nated depository, or to account for or turn over to the
proper officer or agent, any such money or property,
when required so to do by law or the regulations of tne
Post Office Department, or upon demand or order of the
Postmaster General, either directly or through a duly
authorized officer or agent, shall be deemed guilty of
embezzlement; and every such person, as well as every
other person advising or knowingly participating therein,
shall be fined in a sum equal to the ainount or value of the
money or property embezzled, or imprisoned not more
than ten years, or both. Any failure to produce or to pay
over any such money or property, when required so to do
as above provided, shall be taken to be pnma facie evi
dence of such embezzlement; and upon the trial of any
indictment against any person for such embezzlement, it
shall be prima facie evidence of a balance against him to
produce a transcript from the account books of the Audi
tor for the Post Office Department. But nothing herein
shall be construed to prohibit any postmaster depositing,
under the direction of the Postmaster General, m a na
tional bank designated by the Secretary of the Treasury
for that purpose, to his own credit as postmaster, any
funds in Eds charge, nor prevent his negotiating drafts or
other evidences of debt through such Dank, or through
United States disbursing officers, or otherwise, when in
structed or required so to do by the Postmaster General,
for the purpose of remitting surplus funds from one post
office to another.
NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA
RIES OF PUBLIC MONETS.

733. Sec. 5168 [as amended 1907],—
N o t e .;—See section

5153 under “ National-bank act.’*

GOVERNMENT DEPOSITS.

784. Sec. 15.—The moneys held in the general fund of ^
the Treasury, except the five per centum fund for the Lredemption of outstanding national-bank notes and the
funds provided in this Act for the redemption of Federal
reserve notes may, upon the direction of the Secretary of
the Treasury, be deposited in Federal reserve banks, which
banks, when required by the Secretary ol the Treasury,
shall act as fiscal agents of the United States; and the
revenues of the Government or any part thereof may be
deposited in such banks, and disbursements may be made
b y checks drawn against such deposits.
No public funds of the Philippine Islands, or of the
postal savings, or any Government funds, shall be de
posited in tne continental United States in any bank
not belonging to the system established by this Act:
Provided, rmtever, That nothing in this Act shall be con-

174

ACTS OP GENERAL NATURE.

stnied to deny the right of the Secretary of the Treasury
to use member banks as depositories.
DEPOSIT OF PROCEEDS ARISING FROM SALE OF BONDS.
NO RESERVE REQUIRED TO BE KEPT AGAINST UNITED
STATES DEPOSITS.

i9nse^?r‘
’ ' '

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

mm®*tm*7*; si 7®®* Sec. 6.— That all Federal land banks and joint stock
stat’. l., 365.’ land banks organized under this Act, when designated for
that purpose b y the Secretary of the Treasury, shall be
depositaries of public money, except receipts from cus
toms, under such regulations as may be prescribed by
said Secretary; and they may also be employed as finan
cial agents of the Government; and they shall perform
all such reasonable duties, as depositaries of public money
and financial agents of the Government, as may be re
quired of them .. And the Secretary of the Treasury shall
require of the Federal land banks and joint stock land
banks thus designated satisfactory security, by the deposit
of United States bonds or otherwise^ for the safekeeping
and prompt payment of the public money deposited with
them, ana for the faithful performance of their duties as
financial agents of the Government. No Government
funds deposited under the provisions of this section shall
be invested in mortgage loans or farm loan bonds.
PENALTY FOR UNAUTHORIZED DEPOSIT OF PUBLIC
MONET.

737. Sec. 5488.—
Originally enacted June 14,1866, see 14 Stat. L. 64. Superseded
by sec. 87 of the act of Much 4,1909.

ACTS OF GENERAL NATURE.

175

Sec. 87.— Whoever, being a disbursing officer of the 18^ctc J™e SJ£
United States, or a person acting as such, shall in any 2; 1i stat. w!
manner convert to his own use, or loan with or without 1909? c. 321,* sec.'
interest, or deposit in any place or in any manner, except fjj^35 stat- L**
as authorized by law, any pubUc money intrusted to him;
or shall, for any purpose not prescribed by law, withdraw
from the Treasurer or any assistant treasurer, or any au
thorized depositary, or transfer, or apply, any portion of
the public money intrusted to him, shall be deemed guilty
of an embezzlement of the money so converted, loaned,
deposited, withdrawn, transferred, or applied, and shall be
fined not more than the amount embezzled, or imprisoned
not more than ten years, or both.
N o t e .—Sections

5489 to 5496 do not refer to national banks.

PENALTY FOE UNAUTHORIZED RECEIPT OR USE OP
PUBLIC MONEY.

788. Sec. C497.—
Originally enacted June 14, 1866 (14 Stat. L. 65), and amended by
act of February 3,1879 (20 Stat. L. 280). Superseded by sec. 96 of the
act of March 4, 1909.

Sec. 96.— Every banker, broker, or other person not an 19^ctse^a^. ^
authorized depositary of public moneys, who shall know- stat’. l., hoe.’
ingly receive from any disbursing officer, or collector of
internal revenue, or other agent 01 the United States, any
ublie money on deposit, or by way of loan or accommoation, with or without interest, or otherwise than in pay
ment of a debt against the United States, or shall use,
transfer, convert, appropriate, or apply any portion of the
public money for any purpose not prescribed by law; and
every president, cashier, teller, director, or other officer of
any bank or banking association who shall violate any
provision of this section is guilty of embezzlement of the
public money so deposited, loaned, transferred, used, con
verted, appropriated, or applied, and shall be fined not
more than the amount embezzled, or imprisoned not more
than ten years, or both.

Note.—For duties and liabilities of depositaries see note under sec.
5153, paragraph 241, ante.
O F F E N S E S A G A IN S T T H E C U R R E N C Y .

OBLIGATION OR OTHER SECURITY OP THE UNITED
STATES DEFINED.

739. Sec. 147.— The words “ obligation or other security 19^ctc
s4’
of the United States ” shall be held to mean all bonds, cer- m jVstal l . ;
tificates of indebtedness, national-bank currency, cou- ^ m is ^ b 463
pons, United States notes, Treasury notes, gold certifi- fn°t*if 7°**^
cates, silver certificates, fractional notes, certificates of ism.
deposit, bills, checks, or drafts for money, drawn by or
upon authorized officers of the United States, stamps and
other representatives of value, of whatever denomination,
which have been or may be issued under any Act of
Congress.

176

ACTS OP GENERAL NATURE.
FORGING OB COUNTERFEITING SECURITIES; PUNISH
MENT FOR.

3 2 ?' sac!
740. Sec. 148.— Whoever, with intent to defraud, shall
M8-’ 35s staiL.', falsely make, forge, counterfeit, or alter any obligation or
mc MU^SfsT* other security of the United States shall be fined not more
. f f i f V fftr than five thousand dollars and imprisoned not more than
mm.
’ fifteen years.
M W *c

COUNTERFEITING NATIONAL-BANK NOTES;
MENT FOR.

PUNISH

ww?c ®n' s#c! 741. Sec. 149.—Whoever shall falsely make, forge, or
MfcVstaiL.; counterfeit, or cause or procure to be made, forged, or
sec Mis”1!?^®8 counterfeited, or shall willingly aid or assist in falsely
onactof F«b.' 2^ making, forging, or counterfeiting, any note in imitation
m®. Hegnaisted of, or purporting to be in imitation of, the circulating
UDe ’
notes issued by any banking association now or hereafter
authorized ana acting under the laws of the United States;
or whoever shall pass, utter, or publish, or attempt to
pass, utter, or publish, any false, forged, or counterfeited
note, purporting to be issued by any such association do
ing a banking business, knowing tne same to be falsely
made, forged, or counterfeited; or whoever shall falsely
alter, or cause or procure to be falsely altered, or shall
willingly aid or assist in falsely altering, any such circulat
ing notes, or shall pass, utter, or publish, or attempt to
passj utter, or publish as true, any falsely altered or
spurious circulating note issued, or purporting to have
been issued, b y any such banking association, knowing
the same to be falsely altered or spurious, shall be finednot
more than one thousand dollars and imprisoned not more
than fifteen years.
USING PLATES TO PRINT NOTES WITHOUT AUTHORITY,
ETC.; DISTINCTIVE PAPER WITHOUT AUTHORITY;
PUNISHMENT FOR.

ltwfc. an,' sec! 742. Sec. 160.— Whoever, having control, custody, or
ufc’ as'Bta&L.) possession of any plate, stone, or other thing, or any part
thereof, from which has been printed, or which may be
omctof
prepared by direction of the Secretary of the Treasury for
mm.
’ the purpose of printing, any obligation or other security
of the United States, snail use such plate, stone, or other
thing, or any part thereof, or knowingly suffer the same to
be used for the purpose of printing any such or similar ob
ligation or other security, or any part thereof, except as
may be printed for the use of the united States by order
of the proper officer thereof; or whoever by any way, art,
or means shall make or execute, or cause or procure to be
made or executed, or shall assist in making or executing
any plate, stone, or other thing in the likeness of any plate
designated for the printing of such obligation or other se
curity; or whoever shall sell any such plate, stone, or other
thing, or bring into the United States or any place subject

ACTS OF GENERAL NATURE.

177

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

743. Sec. 151.—Whoever, with intent to defraud, shall
pass, utter, publish, or sell, or attempt to pass, utter, pub- uijVstajLL.*,
fish, or sell, or shall bring into the United States or any ^543
place subject to the jurisdiction thereof, with intent to enwU<f
pass, publish, utter, or sell, or shall keep in possession or ism .
conceal with like intent, any falsely made, forged, coun
terfeited, or altered obligation or other security of the
United States, shall be fined not more than five tnousand
dollars and imprisoned not more than fifteen years.
44326°—S. Doc. 412,64-1------12

178

ACTS OF GENERAL NATURE.
TAKING IMPRESSIONS OF TOOLS, IMPLEMENTS, ETC.;
PUNISHMENT FOR.

i 909Ctc 32F*sec!
152; *35* staf. l . ‘,

744. Sec. 152.—Whoever, without authority from the
United States, shall take, procure, or make, upon lead,
sec.75432^ res.des foil, wax, plaster, paper, or any other substance or mateenarte^Feb11/
an impression, stamp, or imprint of, from, or by the
1867.
* ' use of any bedplate, bedpiece, die, roll, plate, seal, typ%, or
other tool, implement, instrument, or thing used or fitted
or intended to be used in printing, stamping, or impress
ing, or in making other tools, implements, instruments, or
things to be used or fitted or intended to be used in print
ing, stamping, or impressing any kind or description of
obligation or other security of the United States now
authorized or hereafter to be authorized by the United
States, or circulating note or evidence of debt of any bank
ing association under the laws thereof, shall be fined not
more than five thousand dollars, or imprisoned not more
than ten years, or both.
HAVING UNLAWFUL POSSESSION
PUNISHMENT FOR.

IMPRESSIONS;

745. Sec. 153.—Whoever, with intent to defraud, shall
have in his possession, keeping, custody, or control, withsec.?54^ ^ s des out authority from the United States, any imprint, stamp,
enacte/ ^ e b 1
or impression, taken or made upon any substance or mate1867.
’ ' rial whatsoever, of anv tool, implement, instrument, or
thing, used, or fitted or intended to be used, for any of the
purposes mentioned in the preceding section ; or wnoever,
with intent to defraud, shall sell, give, or deliver any such
imprint, stamp, or impression to any other person, shall
be fined not more than five thousand dollars, or impris
oned not more than ten years, or both.
1909*0 32?* sec
153/ 35’ stat’. l . ;

DEALING IN COUNTERFEIT SECURITIES; PUNISHMENT
FOR.

i909Ctc aa*sec' 746. Sec. 154.— Whoever shall buy, sell, exchange,
i54;'35* staf l.*, transfer, receive, or deliver any false, forged, countersec. 54w“^ s .des feited, or altered obligation or other security of the United
enactif^Feb? States, or circulating note of any banking association or1867.
’ ' ganized or acting under the laws thereof, which has been
or may hereafter be issued by virtue of any Act of Con
gress, with the intent that the same be passed, published,
or used as true and genuine, shall be fined not more than
five thousand dollars, or imprisoned not more than ten
years, or both.
CIRCULATING BILLS OF EXPIRED BANKS; PUNISHMENT
FOR; CIRCULATION PERMITTED.

1909*c. a?' sec! 747. Sec. 174.—In all cases where the charter of anv cor174;'35*staI L.* poration which has been or may be created by Act o f Congress has expired or may hereafter expire, if any director,
enact«f’*iuiy11 ° ® cer>or agent of the corporation, or any trustee thereof,
1838.

' or any agent of such trustee, or any person having in his
possession or under his control the property of the corpo-

179

ACTS OF GENERAL NATURE*

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

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

stat. l ., k ’

CURRENCY ACT, APPROVED MARCH 14, 1900,

749. Section 1. Gold dollar declared to be
standard unit ol value.
750. Sec. 2. Secretary of Treasury to set
apart and maintain a gold reserve
of one hundred and fifty million
dollars in gold coin and bullion
for the redemption of United
States notes and notes issued
under the act of July 14, 1890.
May sell bonds to replenish re
serve.
751. Sec. 3. Silver dollar to remain legal
tender.

752. Sec. 4. Divisions of issue and edemption established.
753. Sec. 5. When silver dollars are
coined from bullion purchased
under act of July 14, 1890, an
equal amount of Treasury notes
to be canceled and silver certifi
cates issued.

754 Sec. 6. Issue of gold certificates.
Issue of gold certificates payable
to order.
755. Sec. 7. Issue of silver certificates.
756. Sec. 8. Subsidiary silver coinage.
757. Sec. 9. Recoinage of uncurrent sub
sidiary silver coin.
758. Sec. 10. Amends section 5138, Re
vised Statutes. (See said sec
tion under national-bank act.)
759. Sec. 11. Refunding of United States
bonds.
760. Sec. 12. This section is inserted in
national-bank act following sec
tion 5171, which it supersedes.
761. Sec. 13. See sec. 5214, Revised Stat
utes, under national-bank act.
762. Sec. 14. International bimetallism.

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

180

ACTS OF GENERAL NATURE.
GOLD DOLLAR DECLARED TO BE STANDARD UNIT OF
VALUE.

1900* sec^i- 31

stat’ l . , 45. ’

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

1900* sec^ a
stat.

., 45.

’

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

ACTS OF GENERAL NATURE.

181

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

{

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

SILVER DOLLAR TO REMAIN LEGAL TENDER.

751. Sec. 3.—That nothing contained in this Act shall 19^ctgeJkj: ^
be construed to effect the legal-tender quality as now pro- stat'. l .,46.’
vided by law of the silver dollar, or of any other money
coined or issued by the United States.
DIVISIONS OF ISSUE AND REDEMPTION ESTABLISHED.

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

182

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

1900* sec ’“ istat' l., 47. ’

lsi

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

Act

754. Sec. 6 [as amended by acts of March 4,190 7, March 2,
1911, and June 12,1916].—That the Secretary of the Treasury is hereby authorized and directed to receive deposits of
Mar 2
coin with the Treasurer, or any assistant treasurer of
i9ii; 36 stat. l.,’ the United States, in sums of not less than twenty dollars,
*L t June 12, and to issue gold certificates therefor in denominations
wi6; 39 stat. l.,’ 0f n0t less than ten dollars, and the coin so deposited shall
be retained in the Treasury and held for the payment of
such certificates on demand, and used for no other pur
pose. Such certificates shall be receivable for customs,
taxes, and all public dues, and when so received may be
reissued, and when held by any national banking asso->
ciation may be counted as a part of its lawful reserve:
Provided, That whenever and so long as the gold coin
and bullion held in the reserve fund m the Treasury for
the redemption of United States notes and Treasury
notes shall fall and remain below one hundred million
dollars the authority to issue certificates as herein pro
vided shall be suspended: And provided further, That
whenever and so long as the aggregate amount of United
States notes and silver certificates in the general fund of
the Treasury shall exceed sixty million dollars the Secre
tary of the Treasury may, in his discretion, suspend the
issue of the certificates herein provided for: And pro
vided further, That of the amount of such outstanding
certificates one-fourth at least shall be in denominations
of fifty dollars or less: And provided further, That the
Secretary of the Treasury may, in his discretion, issue
such certificates in denominations of ten thousand dollars,
payable to order: And provided further, That the Secre
tary of the Treasury may, in his discretion, receive, with
the assistant treasurer in New York and the assistant
treasurer in San Francisco, deposits of foreign gold coin
at their bullion value in amounts of not less than one
thousand dollars in value and issue gold certificates therestat. hj 47. ’

ACTS OF GENERAL NATURE.

183

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

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

SUBSIDIARY SILYER COINAGE.

756. Sec. 8.— That the Secretary of the Treasury is 19^ct s<Jfarg. ^
hereby authorized to use, at his discretion, any silver stat. l., 47. ’
bullion in the Treasury of the United States purchased
under the Act of July fourteenth, eighteen hundred and
ninety, for coinage into such denominations of subsidiary
silver coin as may be necessary to meet the public require
ments for such coin: Provided, That the amount of sub
sidiary silver coin outstanding shall not at any time ex
ceed in the aggregate one hundred millions of dollars.
Whenever any silver bullion purchased under the Act of
July fourteenth, eighteen hundred and ninety, shall be
used in the coinage of subsidiary silver coin, an amount
of Treasury notes issued under said Act equal to the cost
of the bullion contained in such coin shall be canceled
and not reissued.

184

ACTS OF GENERAL NATURE.

RECOINAGE OF UNCURRENT SUBSIDIARY SILVER COIN.

isoof s e c 3i
Sec. 9.—That the Secretary of the Treasury is
stat l., is.'
hereby authorized and directed to cause all worn and un
current subsidiary silver coin of the United States now
in the Treasury, and hereafter received, to be recoined,
and to reimburse the Treasurer of the United States for
the difference between the nominal or face value of such
coin and the amount the same will produce in new coin
from any moneys in the Treasury not otherwise appro
priated.
758. Sec. 10.—
Amends section 5138, Revised Statutes. (See said section under
National-bank act.)
REFUNDING OF UNITED STATES BONDS.
stat’. l ., 48.

*3i ^59. Sec. 1 1 .—That the Secretary of the Treasury is
* hereby authorized to receive at the Treasury any of the
outstanding bonds of the United States bearing interest
at five per centum per annum, payable February first,
nineteen hundred and four, and any bonds of the United
States bearing interest at four per centum per annum,
payable July first, nineteen hundred and seven, and any
bonds of the United States bearing interest at three per
centum per annum, payable August first, nineteen hun
dred and eight, and to issue in exchange therefor an equal
amount of coupon or registered bonds of the United
States in such form as he may prescribe, in denomina
tions of fifty dollars or any multiple thereof, bearing
interest at tlie rate of two per centum per annum, payable
auarterly, such bonds to be payable at the pleasure of
the United States after thirty years from the date of
their issue, and said bonds to be payable, principal and
interest, in gold coin of the present standard value, and
to be exempt from the payment of all taxes or duties
of the United States, as well as from taxation in any
form by or under State, municipal, or local authority:
Provided*, That such outstanding bonds may be received
in exchange at a valuation not greater than their present
worth to yield an income of two and one-quarter per
centum per annum; and in consideration of the reduction
of interest effected, the Secretary of the Treasury is au
thorized to pay to the holders of the outstanding bonds
surrendered for exchange, out of any money in the Treas
ury not otherwise appropriated, a sum not greater than
the difference between their present worth, computed as
aforesaid, and their par value, and the payments to be
made hereunder shall be held to be payments on account
of the sinking fund created by section thirty-six hundred
and ninety-four of the Revised Statutes: And provided
further, That the two per centum bonds to be issued un
der the provisions of this Act shall be issued at not less
than par, and they shall be numbered consecutively in
the order of their issue, and when payment is made the

ACTS OF GENERAL NATURE.

185

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

761. Sec. 13.—
Inserted after section 5214. Revised Statutes.
INTERNATIONAL BIMETALLISM.

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

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

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

763. Sec. 1, Act March 4, 1907.
Amends section 6 of ac t of March 14, 1900. This amended section
is incorporated in said xt, paragraph 752, ante.
ISSUE OF TREASURY NOTES. ACT MARCH 4 , 1907.

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

186

ACTS OF GENERAL NATURE.

present fixed by law: And provided further, That nothing
in this Act shall be construed as affecting the right of any
national bank to issue one-third in amount of its circu
lating notes of the denomination of five dollars, as now
provided by law.
765. Sec. 3 —
Amends section 5153, Revised Statutes, paragraph 241, ante.

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

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

1909? secAU39; h
stat. l ., 117/

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

ACTS OP GENERAL NATURE.

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

768. Be it enacted by the Senate and House of Repre- Act
sentatives of the United States of America in Congress stat. l?,‘
assembled, That the Secretary of the Treasury be, and he
is hereby, authorized to insert in the bonds to be issued
by him under section thirty-nine of an Act entitled “ An
Act to provide revenue, equalize duties, and encourage
the industries of the United States, and for other pur
poses,” approved August fifth, nineteen hundred and
nine, a provision that such bonds shall not be, receivable
by the Treasurer of the United States as security for
the issue of circulating notes to national banks; and the
bonds containing such provision shall not be receivable
for that purpose.
CERTIFIED CHECKS WHEN RECEIVABLE FOR DUTIES AND
TAXES.

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

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

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

ACTS OF GENERAL NATURE.

3, assembled, That it shall be lawful for collecting officers
3 to receive certified checks drawn on national and State
banks and trust companies, during such time and under
such regulations as the Secretary of the Treasury may
prescribe, in payment for duties on imports, internal taxes,
and all public dues, including special customs depositsand the Act of March second, nineteen hundred and
eleven, entitled “ An Act to authorize the receipt of certi
fied checks for duties on imports and internal taxes,” is
hereby amended accordingly.

ACTS OF GENERAL NATURE*

ACTS OF GENERAL NATURE.

CHAPTER VIII.
SPECIAL ACTS RELATING TO NATIONAL BANKS.

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

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

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

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

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

801. Sec. 5.— That the Constitution, and except as 19^ f set ps; a
herein otherwise provided, all the laws of the united stat. l ., i4il
States which are not locally inapplicable, shall have the
same force and effect within the said Territory as else
where in the United States: Provided, That sections
eighteen hundred and fifty and eighteen hundred and
ninety of the Revised Statutes of the United States shall
not apply to the Territory of Hawaii.
N o t e .—The Attorney General of the United States in an opini
>imon
rendered June 23, 1900, held “ That the act of April 30, 1900, * *
extended the national banking acts to the Territory of Hawaii, and
would authorize the Comptroller to grant permission for the organiza
tion of national banks therein. (See my opinion of June 2, 1900, rela
tive to the same question as applied to Porto Rico.) But I do not think
that the provisions of section 5154 apply to banks existing in Hawaii
prior to the passage of the act of April 30,1900. Sections 5154 and 5155
seem, by their especial terms, to refer only to banking institutions organ
ized under special or general laws of a State, and do not seem to apply at
all to banks organized under the laws of any Territory. 1 think the
object of these two sections was to enable the banks that were previously
strictly State institutions to become national corporations, and the
operation of the act in that respect is to be so restricted.”

SPECIAL ACTS,

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

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

803. Sec. 1.—That the First National Bank of An
napolis, now located in the city of Annapolis and State
of Maryland, is hereby authorized to change its location
to the city of Baltimore, in said State. Whenever the
stockholders representing three-fourths of the capital
of said bank, at a meeting called for that purpose, deter
mine to make such change, the president and cashier shall
execute a certificate, under the corporate seal of the bank,
specifying such determination, and shall cause the same
to be recorded in the office of the Comptroller of the Cur
rency, and thereupon such change of location shall be
effected, and the operations of discount and deposit of
said bank shall be carried on in the city of Baltimore.
§
S ec . 2. That nothing in this act contained shall be so
construed as in any manner to release the said bank from
any liability or affect any action or proceeding in law in
which the said bank may be a party or interested. And
when such change shall hr
1
i• •.
aforesaid, notice thereof
published in two weekly p A
„
not less than four weeks.
S ec . 3. That whenever the location of said bank shall
have been changed from the city of Annapolis to the city
of Baltimore, in accordance with the first section of this
act, its name shall be changed to The Traders1 National
Bank of Baltimore, if the board of directors of said bank
shall accept the new name by resolution of the board,
and cause a copy of such resolution, duly authenticated,
to be filed with the comptroller of the currency.
Sec . 4. That all the debts, demands, liabilities, rights,
privileges, and powers of the First National Bank of
Annapolis shall devolve upon the Traders’ National

SPECIAL ACTS.

Bank of Baltimore whenever such change of name is
effected.
S e c . 5. That this act shall take effect and be in force
from and after its passage.
N o t e .—Acts of a similar nature to the one preceding have been
enacted by Congress for the following purposes:
Authorizing The Manufacturers1 National Bank of New York to
change its location from the city of New York to the city of Brooklyn.
(Approved July 27, 1868.)
Authorizing The City National Bank of New Orleans, Louisiana, to
change Its name to Tne Germania National Bank of New Orleans.
(Approved March 1,1869.)
Authorizing The Second National Bank of Plattsburgh, New York,
to change its name to The Vilas National Bank of Plattsburgh.
(Approved March 1, 1869.)
Authorizing The First National Bank of Delhi, New York, to change
its location and name to The First National Bank of Port Jervis, New
York. (Approved May 5,1870.)
Authorizing The First National Bank of Fort Smith, Arkansas, to
change its location and name to the First National Bank of Camden,
Arkansas. (Approved July 1, 1870.)
Authorizing the Jersey Shore National Bank, Pennsylvania, to
change its location and name to The Williamsport National Bank,
Pennsylvania. (Approved December 22, 1870.)
Authorizing tne Worcester County National Bank of Blackstone,
Massachusetts, to change its location and name to The Franklin
National Bank, Massachusetts. (Approved February 9, 1871.)
Authorizing The Farmers’ National Bank of Fort Edward, New York,
to change Its location and name to The North Granville National Bank,
New York. (Approved February 18, 1871.)
Authorizing The Worthington National Bank of Cooperstown, New
York, to change its location and name to The First National Bank of
Oneonta, New York. (Approved February 27, 1871.)
Authorizing The Warren National Bank of South Danvers, Massa
chusetts, to change its name to The Warren National Bank of Peabody,
Massachusetts. (Approved March 12,1872.)
Authorizing The First National Bank of Seneca, Illinois, to change its
location and name to The First National Bank of Morris, Illinois.
(Two acts, approved April 5,1872, and June 18,1874.)
Authorizing The Railroad. National Bank of Lowell, Massachusetts,
to change its location and name to The Railroad National Bank of
Boston, Massachusetts. (Approved May 31,1872.)
Authorizing The National Bank of Lyons, Michigan, to change its
location and name to The Second National Bank of Ionia, Micmgan.
(Approved December 24, 1872.)
Authorizing The East Chester National Bank of Mount Vernon, New
York, to change its location.and name to The German National Bank
of Evansville, Indiana. (Approved January 11,1873.)
Authorizing The First National Bank of Newnan, Georgia, to change
its location and name to The National Bank of Commerce, Atlanta,
Georgia. (Approved January 23, 1873.)
Authorizing The First National Bank of Watkins, New York, to
change its location and name to The First National Bank of Penn Yan,
New York. (Approved February 19,1873.)
Authorizing The National Bank of Springfield, Missouri, to change
its name to The First National Bank of Springfield Missouri. (Ap
proved March 3,1873.)
Authorizing The Kansas Valley National Bank of Topeka, Kansas,
to change Its name to The First National Bank of Topeka, Kansas.
(Approved March 3,1873.)
Authorizing The First National Bank of Saint Anthony, Minnesota,
to change its location and name to The Merchants* National Bank of
Minneapolis, Minnesota. (Approved January 8,1874.)
Authorizing The Second National Bank of Havana, New York, to
change its name to The Havana National Bank of Havana, New York.
(Approved January 9, 1874.)
44326°—S. Doc. 412, 64-1----- 13

193

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

194

SPECIAL ACTS.

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

SPECIAL ACTS.

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

195

196

SPECIAL ACTS.

Sp e c ia l a c t s .

CHAPTER IX.
OPINIONS OF THE ATTORNEY GENERAL ON GUARANTY LAWS OF OKLA
HOMA AND KANSAS, AND ON THE INSURANCE OF BANK DEPOSITS.

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

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

THE OKLAHOMA DEPOSIT GUARANTY LAW.

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

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

199

200

OPINIONS OP THE ATTORNEY GENERAL.

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

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

OPINIONS OF THE ATTORNEY GENERAL.

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

903.
The Attorney General of the United States, in an
opinion rendered March 31, 1915, said:
I have the honor to acknowledge the receipt of your letter of Feb
ruary 12, 1915, inclosing letter of the Comptroller of the Currency,
opinion of the Acting Solicitor of the Treasury, and brief filed with
the Comptroller on behalf of a guaranty company and certain national
banks, in which the question is raised as to whether a national bank
may enter into a contract with a guaranty company under which, in
consideration of premiums paid by the bank, the company “ insures
and guarantees each depositor in the bank the full payment of his de
posit therein.” You aak m y opinion upon this question.
In my opinion, it is within the power of a national bank to enter into
such a contract.
The law confers upon national banks such incidental powers as are
required to meet all legitimate demands of the banking business, and
to enable them to conduct their affairs safely and prudently within the
scope of their charters. Section 5136, Revised Statutes; First National
Bank v. National Exchange Bank (92 U. S. 122, 127). The power to
give security for deposits seems to be recognized by section 5153,
Revised Statutes, as among these incidental powers. The section last
mentioned, after providing that all associations created under the act,
shall, when so designated by the Secretary of the Treasury, be deposi
taries, further provides that “ The Secretary of the Treasury shall re
quire the associations thus designated to give satisfactory security, by
tne deposit of United States bonds and otherwise, for the safe keeping
and prompt payment of the public money deposited with them,” etc.
It is believed that this section is more reasonably construed as a recog
nition of the existence of the power on the part of national banks to
give security for deposits than as a grant by implication of authority to
give security for Government deposits alone.
The power of banks to give security for deposits or for payment of
their debts has been frequently recognized. It has been held that the
property of a bank may be pledged as security for a debt ( United States
v. Robertson (1831), 5 Pet., 641, 650); that a bond with sureties may be
given to prevent depositors from withdrawing their accounts ( Wylie v.
Commercud & Farmers9 Bank (1902), 41 S. E., 504, 509; 68 S. C., 406);
and that a national bank may give its bond with sureties to secure a
deposit of State funds (State o f Nebraska v. First National Bank o f
Orleans (1898), 88 Fed., 947, 951).

201

202

OPINIONS OF THE ATTORNEY GENERAL.

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

0 P1N 10US OF THE ATTORNEY GENERAL.

203

204

OPINIONS OF THE ATTORNEY GENERAL.

INDEX TO NATIONAL-BANK ACT, ETC.
[Index to Federal reserve act, p. 251.J

Paragraph.
Abstract of report of condition to be included in annual report........................
110
Abstraction, penalty for.....................................................................................
436
Acceptance of drafts or bills of exchange by member banks of Federal Reserve
System...........................................................................................................
206
Acknowledgment. (See Oath.)
Acknowledgment of organization certificate......................................................
203
Acting Comptroller of the Currency..................................................................
103
Act, the national-bank......................................................................................
200
Acts:
Of a general nature, not included in national-bank act, affecting national
banks................................................................................................... 700-770
Special, authorizing change of name or location of national bank..............
803
Additional Deputy Comptroller.........................................................................
104
Administrator, power of national banks to act as..............................................
207
Administrators, not personally liable................................................................
240
Advertisements (see also Publication, Printing):
Imitation of circulation in, penalty for.......................................................
345
Notice to creditors of insolvent banks.........................................................
516
Agency, National Bank Redemption, provisions for...................................... 414,415
Agent:
Association as fiscal, of Government...........................................................
241
Bonds, examination by...............................................................................
310
Central reserve city.....................................................................................
401
Central reserve city, additional..................................................................
401
Circulation, to witness destruction.............................................................
339
Foreign branches of national banks as fiscal, of United States....................
208
Insurance, when national bank may act as.................................................
427
Liquidating bank........................................................................................
522
Reserve................................................................................................... 401-407
Reserve, city, additional central, provisions for.........................................
401
Shareholders, appointment and qualifications of........................................
522
Shareholders, duties of................................................................................
522
Special, to examine bank failing to redeem notes......................................
508
Witnessing destruction of circulation by....................................................
339
Aggregate amount of circulation not limited.....................................................
332
Aiding misdemeanors of officers.........................................................................
436
Alaska, reserve requirements, etc., for national banks in..................................
411
Allotment. (See Shares.)
316
Allotment of united States bonds to be purchased by Federal reserve bank---Amendments:
Proposed, to national-bank act to be made in Comptroller’s report............
110
Restriction of, to articles of association.......................................................
223
Suggested, to improve system, to appear in annual report..........................
110
Amount:
102
Of bond of Comptroller of Currency...........................................................
Of bond of Deputy Comptroller of Currency...............................................
103
Of bonds required to be on deposit......................................................... 302,313
Of capital required.....................................................................................
222
Of circulation obtainable............................................................................
323
Of circulation that may be redeemed at one time, minimum.....................
414
Of dividends that may be declared............................................................
429
Of redemption fund required......................................................................
414
Of reserve required to be held by—
Banks elsewhere than in reserve city...................................................
405
Central reserve city banks...................................................................
407
Country banks......................................................................................
405
Reserve city banks...............................................................................
406

205

206

INDEX TO NATIONAL-BANK ACT, ETC.

Amount-Continued.
paragraph.
Of tax on circulation...................................................................................
444
Of United States bonds that may be refunded in one year.........................
316
Recoverable for usurious interest charges....................................................
423
That national banks may borrow.................................................................
427
Annual examination of bonds by association.....................................................
310
Annual meeting of shareholders........................................................................
230
Annual report of Comptroller of the Currency....................................................
110
Appointment:
Agent, shareholders.....................................................................................
522
Agent to examine bonds..............................................................................
310
Agent to witness destruction of circulation.................................................
339
Clerks of Comptroller’s office.......................................................................
105
Committee to examine plates, etc...............................................................
328
Committee to witness destruction of circulation..........................................
339
Comptroller.................................................................................................
101
Deputy Comptroller....................................................................................
103
204
Directors of associations..............................................................................
Dissenting shareholders, committee of apprisal..........................................
217
Examiners of associations............................................................................
527
Officers of associations.................................................................................
204
Receivers of associations.......................................................................... 515,520
Shareholders’ agent.....................................................................................
522
Special commission for preliminary examinations of associations..............
320
Vacancies in board of directors....................................................................
235
Appraisal. (See Shares.)
Appraisal of value of stock to be purchased from shareholders dissenting to ex
tension of charter........................................................ ...................................
217
Approval of Comptroller of Currency required for extension of charter............
215
Approval of request for receiver to buy property...............................................
524
Articles of association:
Amendment of, for extension of corporate existence............................... 213,214
Amendment of, restricted............................................................................
223
Converted State bank, execution of, by......................................................
243
Increase of capital stock by amendment of.................................................
227
Proceedings in regard to, and form of..........................................................
201
Provisions for elections when not provided for in .......................................
236
Reduction of capital stock...........................................................................
228
Assessments:
For examination..........................................................................................
527
430
Impairment of capital.................................................................................
Plates, engraving of..................................................................................218,414
Redemption of circulation...........................................................................
313
Repayment of tax........................................................................................
449
Reports of circulation, failure to make..................................................... 447,448
Reports of condition and earnings and dividends, failure to make.............
443
Semiannual duty.........................................................................................
446
Shareholder’s personal liability...................................................................
238
Tax on unauthorized circulation.............................................................. 708-710
Transportation of notes................................................................................
414
439
Assessors, shareholders’ lists accessible to..........................................................
Assets:
Comptroller’s annual report to contain statement of national banks...........
110
Expense of receiver paid from ....................................................................
519
Failed bank, may be turned over to agent.................................................. 522
Insolvent banks, distribution of..................................................................
517
Of consolidated banks.................................................................................
503
Receiver to collect, etc................................................................................
515
Receiver to sell on order of court.................................................................
515
Report of condition to contain statement of................................................
440
Shareholders’ agent to distribute.................................................................
522
United States has paramount lien on..........................................................
511
Assignee, failure to pay installments...............................................................
225
Assignment (see also Treasurer United States; Bonds, United States):
Of assets after insolvency void....................................................................
529
Register of bonds.........................................................................................
307
United States bonds as security for circulation...........................................
306

INDEX TO NATIONAL-BANK ACT, ETC.

207

Paragraph.
Assistant Deputy Comptroller...........................................................................
104
Assistant Treasurer of United States:
Circulation of liquidated and insolvent banks, duty of..............................
505
Circulation, unfit, to be sent to Treasurer for redemption..........................
414
Fraudulent notes to be marked by.............................................................
746
Public moneys to be deposited with....................................................... 730,731
Unauthorized withdrawal of public money from........................................
737
Associations:
Defined......................................................................................................
300
National banking, provisions for formation of.............................................
201
Organized under act of 1863 not affected....................................................
245
To be notified of transfer of bonds..............................................................
308
341
To issue gold notes— ...............................................................................
Assorting charges for redeemed circulation........................................................
414
Attachment, not to issue prior to final judgment of court..................................
529
Attorney General, opinions of........................................................................ 900-903
Auction:
Bonds of expiring associations.........................1...................................... 219,504
Bonds of liquidating associations........................... ...... ........ ................ 219,504
Bonds, sale of, when association has failed to pay its circulating notes___
511
Enforcement of assessment, impaired capital.............................................
430
Purchase of property by rece ver................................................................
523
Sale of delinquent national-bank stock..................... .................. ...............
430
Sale of dissenting shareholders’ stock.........................................................
217
Authority:
To commence business................................................................................
320
To coin silver dollars...................................................................................
722

208

INDEX TO NATIONAL-BANK ACT, ETC,

Paragraph.

Bad debts defined..............................................................................................
429
Ballot. (See Elections; Shareholders.)
Bank balances, net to or from to be used in reserve calculations.......................
410
Bank circulation. (See Circulation.)
Bank examiners.................................................................................................
527
Bank examinations.............................................................................................
527
Banking house:
Association may own...................................................................................
221
Location......................................................................................................
400
Banking powers (see also Beal estate and national banking associations):
Coiporate.....................................................................................................
204
Incidental.............................. *....................................................................
204
Banks not in reserve cities. (See Country banks.)
Banks other than national, statement to be given in annual report.....................
110
Bills of exchange:
Discount o f..................................................................................................
422
Illegal transfer of, void................................................................................
529
Interest on .................................................................................................
422
Member bank of Federal Reserve System may accept................................
206
Not considered borrowed money.................................................................
425
Penalty for official malfeasance, relative to.................................................
.436
Restrictions on loans, not applicable to......................................................
425
Restriction on associations, liability, not applicable to................................
427
Transfer of, to create a preference, void.....................................................
529
Bimetalism........................................................................................................
762
Board of directors. (See Directors.)
Bonds, official:
Comptroller.................................................................................................
102
Deputy Comptroller....................................................................................
103
Officers of associations.................................................................................
204
Public depositaries......................................................................................
241
Receiver.....................................................................................................
515
Shareholders’ agent.....................................................................................
522
Shareholders’ , on election of agent..............................................................
522
Bonds, others, to secure deposits........................................................................
241
Bonds, United States:
Annual examination of, provided for..........................................................
310
Assignment or transfer of, to be countersigned by Comptroller.....................
306
Association to be notified of transfer or assignment......................................
308
Cancellation of, forfeited, for circulation redeemed.....................................
510
Circulation issuable on..................................................................... 304,317,323
Circulation obtainable on.................................................................. 304,317,323
Comptroller, access to records of, and deposit with Treasurer....................
309
Coupon, to be exchanged for registered........................................................
305
Deficiency in proceeds from sale of, what first lien.....................................
511
Defined.......................................................................................................
301
Deposit of, not required to begin business...................................................
302
Depositaries required to deposit..................................................................
241
Depreciation in value of, how made good....................................................
311
Exchange of, for Treasury gold notes..........................................................
318
Exchange of, permitted..............................................................................
311
Forfeiture of, for failure to redeem circulation............................................
508
General provisions respecting.....................................................................
311
Gold, banks to deposit................................................................................
341
Government depositaries, deposit of, required............................................
241
Increase of deposit o f...................................' .............................................
304
Interest on, liable for penalty for failure to make reports to Comptroller...
443
Interest on, liable for penalty for failure to make returns and pay taxes___
425
Interest on, withheld on impaired capital..................................................
430
Lawful money, deposit of, to retire circulation and withdraw......................
312

INDEX TO NATIONAL-BANK ACT, ETC.

209

Bonds, United States—Continued.
Paragraph.
Liquidating bank, reassignment o f.............................................................
504
Minimum amount to be deposited........................................................... 302,313
Maximum circulation issuable on............................................................... 323
Obligations of the United States, including, defined.................................... 739
Panama Canal, available as security for circulation....................................
303
Panama Canal, additional issue of, authorized...........................................
767
Panama Canal, authorized by act of August 5, 1909, not receivable as se
curity for circulation...............................................................................
768
746
Penalty for illegal dealing in counterfeit.................. ................................
Penalty for illegal possession or use of material for printing.......................
741
Penalty for passing counterfeit...................................................................
743
Penalty for taking or possessing unauthorized impressions of tools, etc.,
used in printing.................................................................................. 745,746
Record of transfer or assignment of, to be kept by Comptroller....................
307
Reduction of deposit of..............................................................................
304
Refunding under provisions of Federal reserve act.....................................
304
Refunding of........................................................................................... 316, 757
Registered, to be deposited with Treasurer United States...................... 301,302
Relation of, on deposit to capital................................................................
304
Return of, to association.............................................................................
311
Sale of, at auction for failure to redeem circulation...................................
511
Sale of, privatsly, at not less than par, for failure to redeem circulation.. 512
Secretary of Treasury authorized to sell, to make good gold reserve.........
750
Taxation, exempt from...............................................................................
716
Tax on circulation secured b y....................................................................
444
Tax on circulation secured by Panama Canal bonds............................... 303,444
241
To secure deposits......................................................................................
Transfer of, now effected............................................................................
306
Treasurer of United States to have access to records of Comptroller relative to 309
Treasurer United States to hold, in trust for association.............................
306
Withdrawal of, and of circulation............................................................ 312,414
Withdrawal of.............................................................................................
304
Bookkeeper. (See Officers.)
Books. (See Comptroller; Treasurer United States.)
Borrowed money (see Liability of association; Loans):
Limit of amount.........................................................................................
427
To make good gold reserve, by Secretary of Treasury, authorized..............
750
Branch banks:
Chicago World’s Fair..................................................................................
803
Louisiana Exposition..................................................................................
803
State banks entering system by conversion may retain..............................
244
Branches, foreign, authorized............................................................................
208
Broker, when national bank may act as broker in procuring loans on real estate. 427
Bureau of Comptroller of Currency...................................................................
100
Bureau of Currency, expense of........................................................................
327
Bureau of Engraving and Printing, Director of, designated as custodian of
plates, dies, etc., of Federal reserve and national bans notes........................
327
Business:
Authorization of association to begin, when............................................ 224,319
Place of.......................................................................................................
400
509
Suspension of, after default to pay circulation...........................................
Business paper:
Discount of.............................................................................................. 422,427
Excepted from limit on loans.....................................................................
425
By-laws prescribed by directors of national banks............................................
204
44326°—S. Doc. 412,64-1------14

210

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.
440
Call for report of condition................................................................................
Cancellation. (See Bonds, United States, circulation.)
Cancellation of bonds forfeited...........................................................................
510
Cancellation of circulation redeemed.................................................................
514
Capital stock:
522
Agent of shareholders to distribute assets ratably.......................................
Amount required— ...................................................................................
222
Amount to be paid before association begins business............................ 224,319
Appointment and qualification of shareholders’ agent................................
522
Assessment for impairment of......................................................................
434
Association to begin business, amount to be paid.......................................
224
Borrowed money must riot exceed.....................................’. .......................
427
Branches of converted State banks.............................................................
244
Certificate of officers and directors required relative to payment of......... 224,319
Circulation not to be used to create increase of...........................................
428
Circulation outstanding not exceeding 5 per cent of, free from taxation__
706
Circulation, proportion to............................................................................
304
Conversion of State banks authorized..........................................................
243
Creditors* bill against shareholders..............................................................
521
Deposit ef tTnited States bonds based on....................................................
302
Directors, individual liability of.................................................................
526
Directors, qualification of............................................................................
231
Disposition of, delinquent shareholders......................................................
225
Dividends declared on, and net earnings in excess of dividends to be
reported...................................................................................................
442
Dividends on, and creation of surplus.........................................................
424
Dividends on, when prohibited...................................................................
429
223
Division of, into shares, and number and value of each.............................
Enforcement of assessment, to make good impairment of...........................
430
520
Enforcing individual liabilities of shareholders of, by receiver..................
Enforcing payment of..................................................................................
225
Holders of shares of, in expiring associations to be extended or reorganized,
to have preference in allotment of shares.................................................
217
Holding of shares of, required by directors.. . ......................................... 231,234
Impairment of, assessment for....................... .............................................
430
Impairment of, receiver may be appointed for failure to make good.........
520
Increase of, provisions for.................................................................. 226,227,304
Individual liability of shareholders.............................................................
238
Liability pf association not to exceed, except on account of certain demands.
427
Liquidation, shareholders owning two-thirds of, may vote to go into.........
500
List of shareholders of, to be transmitted to the Comptroller......................
439
Loans on security of shares, or purchase of, prohibited...............................
426
Loans restricted to 10 per cent of, including surplus, etc............................
425
Minimum amount, required of national banks............................................
222
Minimum of bonds to..................................................................................
302
Number of shares and amount of, stated in organization certificate............
202
Of national banks held by converted State banks.......................................
243
Payment gf, jjrpvisions for..........................................................................
224
Penalty for failure to make good impairment of..........................................
430
Personal liability of shareholders.................................................................
238
Population to govern minimum amount......................................................
222
Pqrchage of, prohibited...............................................................................
426
Receiver may be appointed when, impaired..............................................
430
Receiver may be appointed when, not fully paid in ..................................
225
Redaction of, provisions for..................................................................... 228,304
Relation of bond deposit to........................................................................
304
Restoration of, when below the minimum required....................................
225
Shareholders of, list to be kept and subject to inspection...........................
439
Shareholders owning two-thirds of, may place an association in liquidation..
500

INDEX TO NATIONAL-BANK ACT, ETC.

211

Capital stock—Continued.
Paragraph.
209
Shareholders owning two-thirds of, may change title and location..............
Shareholders owning two-thirds of, may increase.................................... 226,227
Shareholders owning two-thirds of, may reduce.........................................
228
Shareholders owning two-thirds of, may extend corporate existence..........
214
Shareholders entitled to one vote on each share of, held by.......................
229
Shareholders of, converted State banks not liable, when............................
238
Shareholders of, not consenting to an extension may withdraw..................
217
Shares of, acquired for debt to be disposed of, when..................................
426
State taxation of shares of............................* ............................................
451
Subscriptions to, when payable..................................................................
224
424
Surplus fund to be created to the amount of 20 per cent of........................
Transfer of shares........................................................................................
239
United States registered bonds to be deposited as security for circulation
to be based on.........................................................................................
302
When increase of, .becomes valid................................................................
226
Withdrawal of bonds on reduction of, or closing of business.......................
304
Withdrawal of bonds, limited.....................................................................
311
Withdrawal of, prohibited..........................................................................
429
Cashier (see also President; Officers):
4
Appointment of..........................................................................................
204
Bank examiner may examine, on oath.......................................................
527
Bond assignment by...................................................................................
306
Certificate of officers and directors..............................................................
319
Certificate of stock payment.......................................................................
224
Circulating notes, to sign......................................................................... 324,337
Election or appointment of.........................................................................
204
Embezzlement by......................................................................................
436
Examiner of own bank, can not b e ............................................................
527
Expiration of corporate existence, certification by.....................................
219
Extension of corporate existence, certification by......................................
214
False certification of checks........................................................................
436
Incomplete circulation, provisions relative to............................................
417
Increase of stock, certification of................................................................
226
Liquidating bank, duty in.........................................................................
501
Penalty for—
Countersigning or delivering circulation improperly............................
344
False certification of checks.............................................................. 434,439
Issuing circulation of expired associations...........................................
747
Official malfeasance.............................................................................
436
Pledging, etc., circulation....................................................................
432
Unauthorized receipt of public money................................................
738
Protest of circulation, waiving notice of.....................................................
507
229
Proxy, not to act as...................................................................................
Reports of condition, verified by............................................................. 440,441
Reports of earnings and dividends, verified by..........................................
442
439
Shareholders, lists of, by............................................................................
Signature of, forged or wanting, not to invalidate circulation.....................
417
Taxable circulation, returns by..................................................................
446
Unauthorized circulation, returns by.........................................................
710
Voluntary liquidation, certified by.............................................................
501
Cash reserve required:
Banks elsewhere than in reserve city.........................................................
405
Central reserve city....................................................................................
407
Reserve city banks.....................................................................................
406
Central reserve agents. (See Agents; Reserve; Reserve agents.)
Central reserve cities:
Cash reserve required.................................................................................
407
Number and classification of................................................................... ..
401
Certificate:
Certified copy of organization, evidence...... .............................................
704
Comptrollers, of authority..........................................................................
320
Converted State banks................................................................................
243
Destruction of circulation on retirement account........................................
416
Destruction of notes....................................................................................
339
Execution of organization...........................................................................
203
Extension of corporate existence................................................................
215

212

INDEX TO NATIONAL-BANK ACT, ETC.

Certificate—Continued.
Paragraph.
Increase of stock valid, when......................................................................
226
May be withheld, when...............................................................................
320
Officers and directors to attest.....................................................................
319
Of deposit as time deposits..........................................................................
403
Of payment of stock..................................................................... ..............
224
Organization, to specify...............................................................................
202
Payment of installments of stock to be certified.........................................
224
Publication of Comptroller’s, of authority...................................................
321
Purchase of property by receiver, required.................................................
523
228
Reduction of stock valid, when...................................................................
Sealed, of Comptroller, evidence.................................................................
703
To be made by association, showing bonds deposited with Treasurer.........
310
Voluntary liquidation....................................^............................................
501
Certificates:
Gold, issue of...............................................................................................
433
Gold.............................................................................................................
754
Silver...........................................................................................................
755
United States, subject to State tax..............................................................
717
Certification of checks, when forbidden, {penalty for...................................... 434,435
Certified checks, receivable under certain conditions for duties on imports,
internal taxes, etc........................................................................................ 769,770
Certified copies of reports, etc......................................................................... 703, 704
Change of location, special acts authorizing.......................................................
803
Change of title and location...............................................................................
209
Change of title and location, debts not affected by............................................
210
Charges for transportation and assorting of circulation for redemption...............
414
Charter (see also Corporate existence^:
Certificate of Comptroller authorizing the bank to begin business known as.
320
Extension of................................................................................................
213
Forfeiture of.................................................................................................
526
Issue of, to national banks...........................................................................
320
Reextension of.............................................................................................
220
Term for which issued.................................................................................
204
Charter number of Fifth-Third National Bank of Cincinnati, Ohio, changed...
802
Charter number to be printed on circulation.....................................................
325
Checks:
Certified, receivable for duties on imports and internal taxes................. 769, 770
False certification of, unlawful....................................................................
434
Falsely certified, an obligation of association..............................................
434
Penalty for false certification of...................................................................
435
Chicago, 111., designated as central reserve city.................................................
401
Cincinnati, Ohio, change of charter number of Fifth-Third National Bank.......
802
Circulation:
Aggregate amount not limited............................................. .......................
332
Amount of, obtainable.................................................................................
323
Amount of, obtainable by gold banks................................*.......................
341
Association may issue..................................................................................
204
Association to receive interest on bonds as long as, honored.......................
311
Associations consolidating, deposit of lawful money to retire, unnecessary.
503
Associations to redeem, in lawful money on demand..................................
401
Banks other than national, tax on........................................................... 708-710
Bonds in excess of amount required may be withdrawn.............................
304
Bonds forfeited when, dishonored...............................................................
508
Bonds having been forfeited........................................................................
508
Bonds, United States, to secure..................................................................
302
Capital not to be reduced below amount of outstanding.............................
228
Cancellation of redeemed............................................................................
514
Certificates of destruction, by whom executed............................................
339
Charter number on.......................................................................................
325
Collection of tax on.....................................................................................
448
Consolidating banks.....................................................................................
503
Cost of plates to be paid by association.......................................................
414
Counterfeiting, etc............................................................... 344,346,740,741,747
Countersigning unlawfully..........................................................................
344
Denominations, minimum...........................................................................
329
Deposit of lawful money to withdraw.........................................................
314

INDEX TO NATIONAL-BANK ACT, ETC.

213

Circulation—Continued.
Paragraph.
302
Deposit of United States bonds to secure...................................................
Deposit of bonds to be increased when capital is increased........................
304
Destroyed, to be replaced by an equal amount of new notes.....................
414
Disposition of redemption account balances...............................................
416
Enforcing payment of tax on......................................................................
448
Examination of bank upon request of, by ayent of Comptroller.................
508
218
Expense of plates for new notes of extended banks....................................
Expenses of redemption, how paid.............................................................
414
Expired associations, penalty for issuing....................................................
747
Extended bank, shall differ from prior issue..............................................
218
Failed banks, redemption of.................... .................................................
505
Failure to redeem.......................................................................................
507
Federal reserve banks.................................................................................
317
For what, is receivable...............................................................................
337
Fraudulent notes to be so stamped.............................................................
748
Gain from lost and destroyed......................................................................
218
Gold banks, amount not limited.................................................................
342
Gold bank, to be redeemed in gold coin....................................................
341
Government depositaries to receive, at par................................................
241
Imitation of, prohibited.............................................................................
345
Increasing capital stock, use of, prohibited................................................
428
Inscription on.......................................................................................... 324, 341
Lawful money deposit to retire circulation Umited....................................
314
lim it on aggregate amount of.....................................................................
323
505
Liquidating banks, redemption of..............................................................
liquidating bank to deposit lawful money to redeem................................
504
Maceration of........................................................................................... 339,340
Minimum amount that may be withdrawn.................................................
312
Minimum denominations............................................................................
329
Minimum deposit of bonds required...........................................................
302
Mutilation of, prohibited............................................................................
346
Not considered borrowed money................................................................
427
414
Notice of redemption of, to be forwarded to bank......................................
Notice to present, for redemption when bonds have been forfeited............
510
Of converted State bank, where redeemable..............................................
244
Other, prohibited for national bank...........................................................
338
Panama Canal bonds to secure....................................................................
303
Paper for printing.................. ....................................................................
326
Penalty for engraving, etc., without authority...........................................
742
Penalty for failure to make return of, taxable............................................
447
Place for redemption o f..............................................................................
414
Plates and dies for printing of.....................................................................
327
Plates and dies to be engraved for..............................................................
324
Pledging, as security prohibited.................................................................
428
Profit on unredeemed, inures to the United States.....................................
218
Proceedings when return is not made.........................................................
712
Prohibition against circulating uncurrent notes..........................................
431
Proportion to bonds deposited....................................................................
323
Propprtion to capital....................................... *..........................................
302
Protest o f....................................................................................................
507
Receivable at par by all national banks.....................................................
425
Receivable for what....................................................................................
337
Redeemed, to be canceled..........................................................................
514
Redemption fund........................................................................................
414
Redemption of, closed banks................................................................... 505,506
Redemption of, extended banks.................................................................
218
Redemption of, incomplete........................................................................
417
Redemption of, in United States notes.......................................................
414
Redemption of, liquidating banks........................................................... 505,506
Redemption records....................................................................................
513
Reduction or retirement of.........................................................................
313
Refunding excess tax..................................................................................
449
Register of Treasury’s signature to be on....................................................
324
Reserve not determined by........................................................................
402
Reserve not to be kept on...........................................................................
402
Reserve requirement repealed....................................................................
402

214

INDEX TO NATIONAL-BANK ACT, ETC.

Circulation-Continued.
Paragraph.
Restriction of tax provisions........................................................................
714
Restriction on notes less than $1.................................................................
718
Restriction on notes less than $5.................................................................
329
323
Restriction on notes of $5............................................................................
Retirement account.....................................................................................
416
Retirement o f........................................................................................... 314,315
Retiring, under provisions of Federal reserve act........................................
304
Semiannual return of, subject to tax........................................................ 446,711
Signing..................................................................................................... 324,337
Statement concerning, of closed banks to appear in annual report of Comp
troller.......................................................................................................
110
Tax on.........................................................................................................
444
Tax on converted bank................................................................................
713
Tax on, insolvent banks remitted........................................................... 451,715
Tax on, secured by Panama Canal bonds....................................................
303
Tax on, State bank issue.......................................................................... 705,712
Tax on, subject to State law........................................................................
717
Treasurers and public depositaries to return all, of closed banks................
505
When exempt from tax................................................................................
706
When issuable..............................................................................................
337
Withdrawal of, by depositing lawful money, limitation of................ 312,314,414
Worn or mutilated, to be redeemed.............................................................
414
Worn out or mutilated, destroyed............................................................ 339,340
Citizens’ national banking associations, where...................................................
212
Claims (see Insolvency; Receiver), notice to present, against insolvent banks.. 516
Classification of central reserve cities.................................................................
401
Clearing house, receipt in settlement of balances of gold and silver certificates
by....................................................................................................................
433
Clerks:
Appointment and qualification of, by the Secretary...................................
105
415
Clerical force for the redemption of circulating notes.................................
Duties of, fixed by the Comptroller.............................................................
105
Employment of, for the bureau, by the Comptroller..................................
105
Names and compensation of, in annual report and Official Register....... 110, 111
Of banks can not act as proxy.....................................................................
229
dosed associations (see Insolvency), statement to appear in annual report.......
110
Code of the District of Columbia. (See separate index.)
414
Coin (see Gold; Silver), right to redeem circulation in ......................................
Coins, Philippine Islands, legal tender..............................................................
719
Collection of penalty for failure to make semiannual return of circulation........
446
Collection of tax on circulation, enforcement o f................................................
448
Commencement of business, provisions to be complied with, prior to...............
319
Commercial paper:
Discount of............................................................................................... 422,427
Excepted from limit on loans......................................................................
425
Commission, not to be paid officer, director or employee of member bank___
438
Commissioner of Internal Revenue, tax on circulation of insolvent banks to be
remitted by................................................................... .................................
715
Commissioner of Internal Revenue, returns of circulation other than natio/ial,
to be made to.............................................................................................. 711,712
Committee:
Of appraisal.................................................................................................
217
Of destruction, provisions for......................................................................
339
Compounding debts of insolvent national banks................................................
515
Comptroller of Currency:
Action as to agent of shareholders...............................................................
522
Agent, special, to be appointed for association failing to redeem circulation. 508
Annual report to be made to Congress by...................................................
110
Appointment, term, and salary o f...............................................................
101
Approval required for extension of charter.................................................
215
Approve receiver’s purchase of property................................................. 524,525
Approve reserve agent.................................................................................
401
Articles of association and organization certificate of national banks to be
filed with.............................................................................................. 201,202
Assessment of tax on circulation when bank fails to make return...............
447
Bond of........................................................................................................
102
Bonds and records of, with Treasurer, access to..........................................
309

INDEX TO NATIONAL-BANK ACT, ETC.

215

Comptroller of Currency-Continued.
Paragraph.
Bonds, sale of, privately or at public auction, by................................... 511,512
Bond transfers to be recorded by................................................................
307
Capital stock, increase or reduction of, to be approved by............... 226,227,228
Certificate to begin business.......................................................................
320
Certificates of destruction of circulation on retirement account..................
416
Certified copy of organization certificate, evidence....................................
704
Charter number of bank, to be put in circulating notes b y........................
325
Circulation—
Of extended banks to be destroyed bv................................................
218
Plates and dies to be engraved by order of..........................................
324
To be issued by...................................................................................
323
Worn, mutilated, destruction of....................................................... 339,340
Cited in injunction of receiver...................................................................
518
Clerks.........................................................................................................
105
Creditors of failed banks, dividends to be paid to, by................................
517
Distribution of annual report of.............................................................. 112,113
Duties of.....................................................................................................
100
Enforce stockholders ’ liability................*...................................................
238
324
Engraving of plates for printing of circulation to be ordered by.................
Enjoined by bank, how..............................................................................
518
Evidence, sealed certificates......................................................................
703
Examiners, appointed by...........................................................................
527
Examiners' salary, recommended by..........................................................
527
E^miners' reports to................... .............................................................
527
Exchange of bonds to secure circulation....................................................
311
Expense of examinations assessed b y .........................................................
527
Expense of bureau......................................................................................
327
213
Extension of corporate existence, approval of, by......................................
Federal Reserve Board, ex officio member of.............................................
101
Fine for failure to make reports to..............................................................
443
512
Forfeit, cancel, or sell bonds for default in payment of notes.....................
Forfeiture of charter, suit to be brought b y................................................
526
Impairment of capital, action to be taken by.............................................
430
Interest in banks, prohibited......................................................................
106
Jurisdiction of district court to enjoin........................................................
701
Liquidation of associations, to be notified of...............................................
501
List of shareholders, copy to be sent to......................................................
439
National bank examiners appointed by......................................................
527
Notice to banks short in reserve.................................................................
402
Notice to creditors of insolvent banks........................................................
516
Notice to present circulation for redemption when bonds have been for
feited.......................................................................................................
510
Oath of directors to be filed with................................................................
234
Oath to be taken and bond to be given by.................................................
102
Organization certificate to be filed with.....................................................
203
Payment of capital to be certified to..........................................................
224
Plates and dies, examination of..................................................................
328
Printing annual report of......................................................................... 112,113
Proceedings to enjoin.............................................................................. 701,702
Qualification of...........................................................................................
102
217
Reappraisal of value of stock of shareholders by........................................
Receivers appointed by..........................................................1........ 402,515,520
Reports of banks, other than national, to be obtained and published, b y ..
110
Reports to be made to............................................................................. 440,441
Report to be made annually to Congress.....................................................
110
Rooms, etc..................................................................................................
108
Salary of.....................................................................................................
101
Seal of.........................................................................................................
107
Shareholders’ agent, action as to.................................................................
522
State banks converted, approved by..........................................................
243
Term of.......................................................................................................
101
Title and location, change of, to be approved by.......................................
209
Title of national banks subject to approval of.............................................
202
306
Transfer and assignment of bonds to be countersigned by..........................
To determine if association can commence business...................................
319
Withdrawal of circulation to have consent of..............................................
314

216

INDEX TO NATIONAL-BANK ACT, ETC.
Paragraph.

Comptroller of Treasury, refunding of excess payment of tax on circulation to
be approved by...............................................................................................
449
Condition, report of............................................................................................
440
Congress:
Comptroller’s annual report to be made to..................................................
110
Visitatorial powers of...................................................................................
527
214
Consent of two-tnirds necessary for extension of charter.................................. J
Consolidations of national banks, provisions regarding liquidations and bonds. 503,504
Contract insuring or guaranteeing deposits by national banks...........................
903
Contracts, power for association to make............................................................
204
Contributions, political, prohibited...................................................................
437
Conversion of national gold banks into currency banks.....................................
343
Conversion, State banks.....................................................................................
243
Corporate existence:
Expiration of......................... ........................................................ ...........
219
Extension of............................................................................................ 213-215
Reextension of............................................................................................
220
. Term of.......................................................................................................
204
Corporate powers. (See Powers.)
Corporate seal, power to adopt and use..............................................................
204
204
Corporation (see also Liability of associations), association becomes, when........
Corporations, interlocking directorates forbidden........................................... 232,233
Cost. (See Expense.)
Cost of plates.................................................................................................. 218,414
Counterfeits (see Fraudulent notes, etc.)............................................................
748
Counterfeiting, making or using notes, plates, tools, etc................................ 740,748
Counterfeiting, plates and dies, to be guarded against.......................................
324
Country banks:
Cash reserve required..................................................................................
405
Distribution of reserve................................................................................
405
Reserve required to be held with Federal reserve bank.............................
405
Reserve requirements for............................................................................
405
Reserve that may be held with bank in reserve or central reserve cities...
405
Coupon bonds, to be exchanged for registered...................................................
305
Courts. (See Crimes, jurisdiction, etc.)
Creditors:
Bill in equity by, against shareholders........................................................
521
Cheeks falsely certified a valid obligation of association...........................
436
Directors ’ 1lability.......................................................................................
526
219
Expiration of existence, notice to......................................... .....................
Insolvency, notice of, to..............................................................................
516
Nonpayment of circulation, notice of, to.....................................................
510
Payment of assets of failed banks................................................................
517
Preference of, illegal....................................................................................
529
Rights not to be impaired...........................................................................
529
Shareholders, list of, subject to inspection by.............................................
439
Shareholders, personal liability of, to.......................................................... ‘ 238
Voluntary liquidation, notice of, to............................................................. • 501
Creditor’s bills; against shareholders..................................................................
521
Crimes, jurisdiction, etc.:
Abstraction of money, funds, etc.................................................................
436
Aiders and abettors/....................................................................................
436
Counterfeiting circulation, etc................................................................. 740,744
Dealing in counterfeit circulation................................................... ...........
746
Embezzlement........................................................................... 436,732,737,738
Enjoining of Comptroller and receiver........................................................
518
Evidence, certified copy of organization certificate....................................
704
Evidence, sealed certificate fo Comptroller competent...............................
703
False certification of checks..................................................................... 434,435
False entries................................................................................................
436
Forging or counterfeiting United States securities.....................................
740
Having or taking unauthorized impressions of tools, etc.......................... 744,745
Illegal possession or use of material for circulation......................................
742
Imitating circulation for advertising purposes.............................................
345
Improper countersigning or delivering circulation......................................
344
Interlocking directorates forbidden.............................................................
233

INDEX TO NATIONAL-BANK ACT, ETC.

217

Crimes, jurisdiction, etc.—Continued.
Paragraph.
Issuing circulation without authority.........................................................
436
Issuing circulation of expired associations..................................................
747
Jurisdiction, general, of national-bank cases............................................ 212,216
Jurisdiction to enjoin Comptroller or receiver.............................................
701
Misapplication, willful................................................................................
436
Mutilating circulation.................................................................................
346
739
Obligations of the United States defined....................................................
436
Official malfeasance....................................................................................
Passing counterfeit circulation....................................................................
743
Pledging United States notes or bank circulation.......................................
432
Political contributions................................................................................
437
Suits in which United States or its officers are parties................................
700
Taking unauthorized impression of tools, etc..............................................
744
Violation of national-bank act.....................................................................
526
Currency. (See Circulation; Gold; Gold certificates; Silver; Silver certifi
cates; Lawful money; United States note certificates; Federal reserve notes.)
Currency Bureau:
Designation of Office of Comptroller of Currency........................................
100
Expense of..................................................................................................
327
Expense of, in liquidating failed banks......................................................
I ll
Offices, vaults, etc., for...............................................................................
108
Submission of list of employees............................................................... 110, 111
Custodian of plates and dies, etc., for Federal reserve and national-bank notes..
327

218

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.
236
Date of election of directors...............................................................................
Date upon which an association becomes a. body corporate..................: ..........
204
Date when application for extension of charter may T>e made...........................
213
Dates for payment of tax on circulation.............................................................
303
Dealing in counterfeit circulation, penalty for...................................................
746
Debts, compounding of:
Not affected by change of title or location..................................................
210
Real estate held for.....................................................................................
221
Declaration of dividends....................................................................................
428
Default in payment of circulation.................................................................. 507,509
Deficiency. (See Bonds; Capital; Circulation; Receiver; Reserve.)
Definitions:
Bad debts....................................................................................................
429
Central reserve cities...................................................................................
401
Demand and time deposits..........................................................................
403
300
Of national banking associations and associations................... ....................
Of United States bonds...............................................................................
301
Reserve cities..............................................................................................
402
Delinquent shareholders, sale of stock of...........................................................
430
Delivery of circulating notes..............................................................................
323
Demand deposits defined...................................................................................
403
Demands for which national-bank notes are receivable......................................
337
Denominations:
Circulation of gold banks.............................................................................
341
Circulation of national banks.......................................................................
324
Converted State-bank shares........................................................................
243
Gold certificates...................................................................................... 433,754
Panama Canal bonds...................................................................................
767
Shares of national-bank stock................................................................... 223,243
Silver certificates.........................................................................................
755
Treasury notes.............................................................................................
764
Depositaries of public moneys........................................................................ 241,242
Depositaries of the United, circulation of liquidating and insolvent banks, duty
of....................................................................................................................
505
Deposit guaranty law:
Kansas.........................................................................................................
901
Oklahoma....................................................................................................
900
Deposit not required in consolidation................................................................
503
Deposit of United States bonds not required.....................................................
302
Deposit of lawful money:
For circulation of extending banks..............................................................
218
To redeem circulation of liquidating banks.................................................
502
To withdraw circulation..............................................................................
311
Deposits:
515
Insolvent banks, deposit of funds of.................................. ........................
Insurance or guaranty of, by national banks...............................................
903
Not considered borrowed money.................................................................
427
Public money.................................................................................... 241,242,730
Postmasters’.................................................................................................
731
Reserve to be kept on................................................................ 405,407,414, 744
Reserve determined by............................................................................ 402,410
To redeem circulation, disposition of..........................................................
416
United States, no reserve required to be held against...............................
413
Various kinds defined..................................................................................
403
With nonmember banks limited..................................................................
408
Depreciation (see Bonds; Circulation) in value of bonds to secure circulation..
311
Deputy Comptroller of Currency:
Additional, bond of.....................................................................................
104
Appointed by Secretary of the Treasury.................................................. 103,104
Appointment...............................................................................................
103

INDEX TO NATIONAL-BANK ACT, ETC.

219

Deputy Comptroller of Currency—Continued.
Paragraph.
Bond...........................................................................................................
103
Duties................................................................................................. .
103
Interest in bank prohibited........................................................................
106
Oath to be taken.........................................................................................
103
Salary of......................................................................................................
103
Deputy comptroller, additional:
Bond of.......................................................................................................
104
Powers of.....................................................................................................
104
Salary of.....................................................................................................
104
Description of national-bank notes....................................................................
324
Designation of central reserve cities..................................................................
401
Destruction committee provided for..................................................................
339
Destruction of circulation of extended banks....................................................
218
Destruction of worn out and mutilated notes................................................. 339,340
Dies. (See Plates.)
Director of Bureau of Engraving and Printing designated as custodian of dies,
plates, etc., of Federal reserve and national-bank notes................................
327
Directors:
Appointment or election of.........................................................................
204
Assessment for impairment of capital, provisions for enforcement of..........
430
Attestation of reports to Comptroller by.....................................................
440
Capital impaired, duties in .........................................................................
225
Certificate of officers and.............................................................................
319
Certification of, to extension.......................................................................
214
Conversion of State banks, action b y..........................................................
243
Dividends, declaration of, b y.....................................................................
428
Duties of.....................................................................................................
204
Election of..................................................................................................
204
Election postponed.....................................................................................
236
Embezzlement, penalty..............................................................................
436
Enforcing payment of capital.....................................................................
225
Failure to hold annual election...................................................................
236
Forfeiture of charter for violation, etc., by.................................................
526
Interlocking, prohibited.............................................................................
232
Liquidated bank, duties in ........................................................................
501
Liability of..................................................................................................
526
319
Names and residences of, to be ascertained by Comptroller.......................
Not to be appointed by the Comptroller to examine own bank..................
527
Number and election of..............................................................................
230
Number, constituting board of....................................................................
230
Oath of............................................................................................ ...........
234
Penalty for issuing circulation of expired association................................
747
Penalty for official malfeasance...................................................................
436
Penalty for political contributions..............................................................
437
Penalty for unauthorized receipt of public money.....................................
738
237
President.............................. ......................................................................
President of board to be a...........................................................................
237
Powers of.....................................................................................................
204
Provisions for..............................................................................................
230
Proxy can not act as...................................................................................
229
Qualifications of..........................................................................................
231
Restrictions as to interlocking....................................................................
232
Sale of stock acquired from delinquent shareholders..................................
225
Shareholders dissenting to extension to give notice, etc.............................
217
Term of.......................................................................................................
230
Three-fourths to be resident of State...........................................................
231
Vacancies in board of..................................................................................
235
Disbursing funds of United States officers, depositing with national-bank
depositaries.....................................................................................................
730
Disbursing officers, penalty for unauthorized deposit of public money, by.......
737
Discount. (See Loans; Liability of association; Interest.)
Dismissal of officers............................................................................................
204
Disposal of redeemed circulating notes..............................................................
§13
Disposition of assets of insolvent banks.............................................................
517
Disposition of earnings, by United States, from Federal reserve banks................
750
Disposition of redemption account....................................................................
416

220

INDEX TO NATIONAL-BANK ACT, ETC.
Paragraph.

Dissenting shareholders, withdrawal of, on extension........................................
217
Dissolution, (see Expiration of corporate existence; Forfeiture; Insolvency;
Liquidation) of banks not extending period of succession..............................
219
Distinctive paper:
National-bank circulation, etc., to be printed on........................................
326
Unauthorized possession or use of................................................................
742
Distribution of assets by shareholders’ agent......................................................
522
Distribution of reserve:
Banks elsewhere than in reserve cities........................................................
405
Central reserve cities, banks in...................................................................
407
Reserve cities, banks in...............................................................................
406
District attorney, suits in which United States or its officers are parties, to be
conducted by..................................................................................................
700
District court, jurisdiction of, to enjoin Comptroller..........................................
701
District of Columbia Code. (See separate index.)
Dividends:
Comptroller to make ratable, of assets of insolvent banks...........................
517
Directors may declare, when.......................................................................
424
Earnings ana, to be reported.......................................................................
442
Not to be paid by certain converted State banks when surplus is impaired..
238
Penalty for failure to report earnings and....................................................
443
Prohibited when reserve is short.................................................................
409
Restriction on association’s liability............................................................
427
Unearned, prohibited..................................................................................
429
Unpaid, not considered borrowed money....................................................
427
Divisions of Issue and Redemption established in office of United States Treas
urer.................................................................................................................
752
Drafts:
Against deposits not considered borrowed money.......................................
427
Liability of association, relative to..............................................................
427
Member banks of Federal Reserve System may accept..............................
206
Obligations of United States, including......................................................
739
Official malfeasance.....................................................................................
436
Penalty for mutilating.................................................................................
346
Dues. (See Tax; Duties.)
Duties:
Associations organized under the act of February 25, 1863..........................
245
Circulation—
Converted State banks..........................................................................
713
Enforcing payment of, on.....................................................................
448
Exempt from........................................................................................
706
Not receivable for customs...................................................................
337
Refunding excess on.............................................................................
449
Restrictions on......................................................................................
714
Semiannual on................................................................................... 444,447
Unauthorized.......................................... : ........................................ 705, 710
Comptroller’s...............................................................................................
100
Deputy Comptroller’8..................................................................................
103
Directors’ ..................... ..................... .............................................. 204,230, 234
Disbursing officers’ ......................................................................................
730
Examiners’ ..................................................................................................
527
Gold certificates receivable for....................................................................
754
Imports and internal taxes may be paid by certified check.................... 769,770
Officers’.......................................................................................................
204
On imports, certified checks receivable for, under certain conditions.........
770
Public depositaries, designation and...........................................................
241
Receiver, appointment and.........................................................................
515
Shareholders’ agent.....................................................................................
522
Duty of Treasurer in regard to circulation of liquidating and insolvent banks.
505

INDEX TO NATIONAL-BANK ACT, ETC.

221

Paragraph.
Earnings and dividends to be reported..............................................................
442
Earnings by United States from Federal reserve banks, disposition of..............
750
237
Election of president of the board................. ..................................................
Election or appointment of directors, appointment officers............................ 204,230
Elections:
Change of title or location...........................................................................
209
Corporate powers.........................................................................................
204
Extension of corporate existence................................................................
213
Failure to hold annual................................................................................
236
Failure to hold at appointed time...............................................................
236
Increase of stock.........................................................................................
227
Number of directors....................................................................................
230
Oath of directors.........................................................................................
234
Qualifications of directors...........................................................................
231
Qualifications of shareholders.....................................................................
229
Reduction of stock......................................................................................
228
Shareholders’ agent....................................................................................
522
Voluntary liquidation.................................................................................
500
Embezzlement, misapplication of funds, etc.:
Money-order funds......................................................................................
732
Penalty for..................................................................................................
436
Unauthorized deposit of public money by disbursing officer.................. 737,738
Employees and expenses................................................................................110,327
Enforcing payment of capital stock, provisions for............................................
225
Enforcing payment of tax on circulation...........................................................
448
Enforcement of act in reference to interlocking directorates.............................
233
Engraving. (See Circulation; Plates and dies.)
Enjoining Comptroller or receiver from further proceedings.............................
518
Equity, bills in, against shareholders................................................................
521
240
Estates, liability of, as shareholders..................................................................
Estimate of reserve requirements......................................................................
410
Evidence........................................................................................................ 703,704
Examination of organization proceedings preliminary to granting authority to
begin business................................................................................................
319
Examinations:
Annual, of bonds........................................................................................
310
Ascertainment of value of stock of dissenting shareholders.........................
217
Assessment for.............................................................................................
527
Bonds and records, provisions for...............................................................
309
Compensation of examiners........................................................................
527
Examiners to make.....................................................................................
527
Expense of..............................................................................-...................
527
Federal reserve banks.................................................................................
527
Foreign branches of national banks............................................................
208
limitation of visitatorial powers................................................................
528
List of shareholders subject to....................................................................
439
Member banks...........................................................................................
527
National banks............................................................................................
527
Number to be made....................................................................................
527
Plates and dies, annually............................................................................
328
Preliminary, to begin business...................................................................
319
Preliminary, expense of..............................................................................
519
Qualification of examiners..........................................................................
527
Special, of extended associations................................................................
215
State banks and trust companies................................................................
527

222

INDEX TO NATIONAL-BANK ACT, ETC.

Examiners:
Paragraph.
Appointment of...........................................................................................
527
Powers of.....................................................................................................
527
Qualifications of..........................................................................................
527
Reports of....................................................................................................
527
Salaries of....................................................................................................
527
Special commission......................................................................................
320
Exceptions:
Associations organized under the act of 1863 ...............................................
319
Converted State bank may continue to hold stock of other national banks..
243
Converted State banks may retain branches...............................................
244
Converted State banks, par value of stock..................................................
243
Indebtedness of national banks, restriction on............................................
427
Insolvent national banks not required to pay tax.......................................
450
Tax on obligations of United States............................................................
716
Tax on circulation secured by Panama Canal bonds...................................
303
To limit on amount of loans.........................................................................
425
To restriction on amount of borrowed money..............................................
427
Excessive loans..................................................................................................
425
Excess payment of tax on circulation, refunding of...........................................
449
Exchange, bills of, member banks of the Federal Reserve System may accept...
206
Exchange of bonds.............................................................................................
323
Exchange of bonds to secure circulation............................................................
311
Exchange of certain United States bonds for Treasury gold notes by Federal
reserve banks........ .........................................................................................
318
Exchange of coupon for registered bonds...............................................................305
Execution. (See Suit.)
Executor, power of national bank to act as........................................................
207
Executors, not personally liable.........................................................................
240
Existence:
Expiration of...............................................................................................
219
Extension of................................................................................................
213
Reextension of.............................................................................................
220
Term of corporate, of national banks...........................................................
204
Expenditures on account of Panama Canal........................................................
767
Expenses:
Bureau of the Currency...............................................................................
327
Bureau, to be stated in Comptroller’s annual report................................ 110, 111
Circulation, redemption of..........................................................................
414
Circulation, transportation and redemption of retired.................................
313
Duties of shareholders’ agent relative to......................................................
522
527
Examinations............................................... ..............................................
Examinations, dissenting shareholders........................................................
217
Examinations, special.................................................................................
215
Examiners...................................................................................................
527
Liquidation of failed national banks...........................................................
I ll
Of examinations..........................................................................................
527
Plates, cost of......................................................•................................... 218,414
Plates and dies, examination of...................................................................
328
Reappraisal for dissenting shareholders.......................................................
217
Receivership, how paid...............................................................................
519
Receivership, paid prior to election of shareholders’ agent.........................
522
Sale of bonds................................................................................................
511
Sale of delinquent stock..............................................................................
225
Expiration of charter..........................................................................................
219
Expired associations, penalty for issuing circulation of......................................
747
Extension of charter.............................................................. ............................
213
Extension of charter, provisions for redemption of circulation...........................
218

INDEX TO NATIONAL-BANK ACT, ETC.

223

Failed national banks:
Paragraph.
Redemption of circulation..........................................................................
505
Report of expenses......................................................................................
I ll
Failure (see Insolvency):
Of shareholder to pay installments..............................................................
225
To hold election $X appointed time.............................................................
236
To make reports to Comptroller..................................................................
443
To make return on circulation other than national.....................................
712
To pay up capital, assessment for...............................................................
430
To redeem circulation.................................................................................
507
To redeem circulation of extended banks...................................................
218
False entry, penalty for, official malfeasance.....................................................
436
Falsely certifying checks...................................................................................
434
Penalty for..................................................................................................
435
Farm lands, loans on..........................................................................................
205
Federal reserve agent:
Information concerning member banks to be furnished Federal Reserve
Board by..................................................................................................
527
Special examination of member banks to be approved by..........................
527
Federal reserve banks:
Circulation may be issued to.......................................................................
317
Examination of...........................................................................................
527
Examinations of, by Federal Reserve Board..............................................
440
Fiscal agents of United States.....................................................................
615
Government depositaries.............................................................................
615
Government deposits in ........................................................ : ....................
242
Rediscounts to be regulated by...................................................................
427
Reserve required to be held with, by banks elsewhere than in reserve
cities........................................................................................................
405
Reserve required to be held by reserve city banks.....................................
406
Reserve required to be held by central reserve city banks.........................
407
Reserve, withdrawal of, by member banks........................... ......................
409
Special examination of member banks may be ordered by.........................
527
Statements and reports by..........................................................................
440
Treasury gold notes may be obtained in exchange for certain United States
bonds.......................................................................................................
318
United States bonds, purchase of, by..........................................................
316
Federal Reserve Board:
Approval required for exchange of United States bonds for Treasury gold
notes........................................................................................................
318
Central reserve cities may be changed or added to, by...............................
401
Comptroller of the Currency ex officio member of......................................
101
Examination of Federal reserve banks ordered by......................................
527
Examiners’ Salaries fixed by............................. .........................................
527
Federal reserve banks may be required to purchase United States bonds by.
316
Federal reserve notes to be issued by Comptroller of Currency under the
supervision of...........................................................................................
100
Information concerning member banks to be furnished by Federal reserve
agents......................................................................................................
527
Interlocking directorate act as to banks and trust companies to be enforced
by............................................................................................................
233
Issue of Federal reserve notes under supervision of....................................
100
May change or add to central reserve cities................................................
401
Permission for member bank to secure discounts for nonmember banks may
be granted b y..........................................................................................
408
Rediscounts by Federal reserve banks to be regulated by..........................
427
Reduction of capital to be approved by......................................................
228
Reserve cities may be changed or added to by...........................................
401
Reserve withdrawals under regulations b y .................................................
409
Special examination of member banks to be approved by..........................
527
Statements and'reports from Federal reserve banks and member banks may
be required by.........................................................................................
440

224

INDEX TO NATIONAL-BANK ACT, ETC.

Federal reserve notes:
Paragraph.
Comptroller of Currency to issue, under supervision of Federal Reserve
Board........................................................................................................
100
Execution of laws relating to.......................................................................
100
Issue of........................................................................................................
317
Federal Trade Commission, enforcement of part of interlocking directorate act
b y....................................................................................................................
233
Fees (see Examiners; Receivers), protesting circulation....................................
519
Fees not to be paid officers, directors, or employees of member bank............
438
Fifth-Third National Bank, Cincinnati, Ohio, charter number changed...........
802
Filling vacancies................................................................................................
235
Fine. (See Penalty.)
Firm. (See Liability of association.)
511
First lien, United States has, on all assets.........................................................
Fiscal agents (see Agent; Government depositaries), Federal reserve banks as..
615
Five per cent redemption fund..........................................................................
414
Not counted as reserve................................................................................
412
Foreign branches, national banks may establish................................................
208
Foreign coins not legal tender............................................................................
719
Issue of certificates on.................................................................................
754
Forfeiture of bonds when association refuses to redeem circulation...................
508
Forfeiture of charter, suit to be brought for, by Comptroller of the Currency__
526
Forged signatures on bank notes not to prevent redemption of..........................
417
Forgery of United States securities.. .................................................................
740
Formation of national banking associations........................................................
201
Form of report of condition................................................................................
440
Franchise, forfeiture of.......................................................................................
526
Fraudulent notes, United States and national-bank officers to mark.................
748
108
Furniture for Currency Bureau..........................................................................

INDEX TO NATIONAL-BANK ACT, ETC.

225

Paragraph.
Gain from failure to redeem circulation of extended hanks...............................
218
615
General fund of United States may be deposited in Federal reserve banks___
Gifts, not to be made to officer, director, or employee of member bank.........
438
Gold:
Banks not required to take circulation of other banks at par......................
421
Certificates not to be issued when reserve of gold coin and bullion is depleted.
754
433
Certificates, when part of national-bank reserve.........................................
Circulation of gold banks redeemable in .....................................................
341
Deposit of, for certificates........................................................................ 433,754
Dollar, standard unit of value.....................................................................
749
Issue of certificates of deposit of.............................................................. 433,754
Organization of gold banks..........................................................................
341
Reserve of one hundred and fifty millions..................................................
750
Reserve of gold banks to be silver and........................................................
342
Taxation of, gold certificates, etc., by State...............................................
717
Gold banks:
Circulation of, issuable................................................................................
341
Conversion of...............................................................................................
343
Deposit of bonds by....................................................................................
341
Exempted from provisions relative to other bank circulation.....................
421
Organization of...........................................................................................
341
Reserve required for................................................................................ 342,401
Tax on circulation......................................................................................
444
Gold bank notes................................................................................................
341
Gold certificates:
Deposit of gold for................................................................................... 729,754
Deposit of foreign gold for...........................................................................
754
Issue of, prohibited, when..........................................................................
729
Minimum denominations......................................................................... 729,754
Payable to order.........................................................................................
754
Receivable for.................................................................................. 433,719,754
Gold coins:
Foreign, not legal tender............................................................................
719
United States, legal tender.........................................................................
720
United States, legal tender in Philippine Islands.......................................
719
Gold notes, issue of, in exchange for certain United States bonds....................
318
Gold reserve in Treasury, gold certificates not to be issued when depleted.........
754
Government deposits........................................................................................
615
Government depositaries:
730
Deposit ana withdrawal of public moneys..................................................
Deposits by certain postmasters..................................................................
731
Designation and duties of...........................................................................
241
Federal reserve bank as..............................................................................
242
National banks as.......................................................................................
241
National-bank circulation to be received b y..............................................
241
National banks as financial agents of the Government................................
241
Penalty for misapplication of money-order funds.......................................
732
Penalty for unauthorized deposit of public moneys....................................
737
Penalty for unauthorized receipt or use of public moneys..........................
738
Reserves on. (See Federal Reserve act, par. 619.)
Secretary of the Treasury to designate........................................................
241
Securities to be deposited by......................................................................
241
Government’s funds to be deposited, where......................................................
615
Guaranty law:
Kansas........................................................................................................
901
Oklahoma...................................................................................................
900
Guaranty of deposits by national banks............................................................
903
Guaranty of solvency of bank............................................................................
902
Guardians, not personally liable........................................................................
240
44326°—S. Doc. 412,64-1----- 15

226

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Having authorized impression of tools, penalty for............................................
Hawaii:
National banking laws applicable to...........................................................
Reserve requirements, etc., for national banks in........; .............................
How organization certificate shall be acknowledged and filed..........................
How payment of capital stock must be made ana certified...............................
House of Representatives, Comptroller’s report to be sent to.............................
Hypothecation:
Of capital stock by directors restricted........................................................
Of circulation prohibited.............................................................................
Of stock by directors, prohibited.................................................................

745
801
411
203
224
112
231
428
234

INDEX TO NATIONAL-BANK ACT, ETC.

227

Paragraph.
Illegal preference of creditors............................................................................
529
Illegal use of title *1National ” ...........................................................................
530
Impairment of capital, assessment for...............................................................
430
Imports and internal taxes, duties on, may be paid by certified check............. 769,770
Incomplete circulation (see also Circulation); Redemption of...........................
417
Increase of capital................................................................................... 226,227,304
Individual liability, enforcement of..................................................................
515
Individual liability of shareholders...................................................................
238
Information concerning member banks to be furnished Federal Reserve Board
by Federal reserve agent................................................................................
527
Injunction. (See Comptroller; Suits.)
Insolvency:
Assets, distribution of, by receiver.............................................................
517
Expenses incident to, report of...................................................................
I ll
Funds of, where deposited..........................................................................
515
Impairment of capital.................................................................................
430
Jurisdiction of courts to enjoin Comptroller................................................
701
Jurisdiction of national-bank cases.......................................................... 212,216
Notice to creditors of associations in...........................................................
516
Penalty for issuing circulation of associations in.........................................
747
Preference of creditors................................................................................
529
Receiver, appointment of...........................................................................
515
Receiver, duties of.....................................................................................
515
Receiver, when may be appointed.......................................................... 515,520
Redemption of circulation of associations in..............................................
505
Shareholders’ agent....................................................................................
522
Taxes on banks in, remitted.................................................................... 450,715
Inspection of list of shareholders......................................................................
439
Installments, capital stock may be paid in.......................................................
224
Installments, failure to pay................................................................................
225
Insurance agent, when national bank may act as agent for insurance company..
427
Insurance company, insurance of solvency of bank by.....................................
902
Insurance of deposits by national banks............................................................
D03
Interest-bearing Treasury notes are legal tender................................................
727
Interest in national banks prohibited:
By Comptroller..........................................................................................
106
By Deputy Comptroller..............................................................................
106
Interest. (See also Usury):
On bonds deposited with Treasurer............................................................
311
Rate of, chargeable by national banks........................................................
422
Interlocking directorates, when forbidden..................................................... 232,233
Internal Revenue, Commissioner of:
Penalty for failure to make returns to, of taxable circulation....................
712
Remission of tax against insolvent State banks....................................... 450,715
Semiannual return to, of taxable circulation other than national...............
711
Internal taxes, certified checks receivable for, under certain conditions..........
770
International bimetalism, act March 14, 1900, relative to.................................
762
Interstate Commerce Commission, enforcement of act in reference to interlock
ing directorates, as to common carriers, by....................................................
233
Issue and Redemption Divisions established, Treasurer’s Office.......................
752
Issue of:
Circulation by Comptroller of Currency......................................................
323
Circulation to Federal reserve banks..........................................................
317
Gold certificates..........................................................................................
433
Gold certificates and gold certificates payable to order...............................
754
Gold notes, provision for.............................................................................
341
Notes under $5 limited...............................................................................
329
Post notes, etc., prohibited.........................................................................
338
Silver certificates........................................................................................
755
Treasury gold notes in exchange for certain United States bonds..............
318
Issuing circulation of expired associations, penalty for.....................................
747
Isthmian Canal Commission, estimate of cost of Panama Canal.........................
767

228

INDEX TO NATIONAL-BANK ACT, ETC.

J.
Judgment (see also Suits):
Paragraph.
520
Appointment of receiver when judgment obtained against bank............
Illegal preference of creditors......................................................................
529
Jurisdiction (see Crimes, jurisdiction, etc.) of suits by or against national banks. 216,423

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

901

INDEX TO NATIONAL-BANK ACT, ETC.

229

Ii.
Larceny. (See Crimes, jurisdiction, etc.)
Lawful money:
Paragraph.
Defined.................................................................................................... 342,414
Defined for gold banks................................................................................
342
Deposit of, to retire United States bond-secured circulation............ 312,313,314
Exemption of circulation from taxation, when, deposited. .*......................
706
Expiring associations to deposit..................................................................
219
Extended banks to deposit......................................: .................................
218
Five per cent fund.................................................................................. 414,416
Forfeiture of bonds for failure to redeem circulation in..............................
508
Limit of amount, to be deposited monthly.................................................
314
Liquidating associations to deposit................... : ........................................
502
Liquidating associations, consolidating not to deposit................................
503
510
Payment of protested circulation in ...........................................................
Protest of circulation for failure to redeem in.............................................
507
Receiver to be appointed for failure to maintain reserve of........................
402
Redemption account, disposition of............................................................
416
Reserve to be
••
.......
9
m
402
Withdrawing circulation, deposit of...........................................312,313,314,414
Lawful-money reserve, determined by deposits............................................. 342,410
Legal-tender coins, Philippine Islands.............................................................
719
Legal tender:
Foreign coins not accepted as.....................................................................
719
Gold coins..................................................................................................
720
Minor coins.................................................................................................
724
Silver dollars........................................................................................... 722,751
Subsidiary silver coins................................................................................
723
United States notes.......................................................................... 725, 726,727
Liability:
Association’s, for pledging, etc., United States notes, etc...........................
432
Converted State bank, for old notes............................................................
713
Creditor’s bill against shareholders.............................................................
521
Enforcement of individual, by receiver............... .....................................
515
Estates owning stock subject to..................................................................
240
False certification of checks........................................................................
434
Individual, of directors..............................................................................
526
Individual, of shareholders.........................................................................
238
Limited to amount of capital, except.........................................................
427
Of stockholders who have transferred their shares......................................
239
Shareholder’s, debars from voting...............................................................
229
Shareholders of certain banks exempt from................................................
238
Trustees, exempt from, w h e n .................................................................
240
Liabilities:
Associations organized under the act of February 25, 1863 .........................
245
Change of title or location not to affect................................................... 210, 211
Comptroller’s annual report to contain statement of national banks...........
110
Converted State banks................................................................................
713
Deficiency in reserve not to increase..........................................................
402
Deposit of lawful money relieves from, on circulation................................
504
Duties of receiver.......................................................................................
515
Exceptions to limitation.............................................................................
427
Extended associations.................................................................................
216
Incurred under provisions of Federal reserve act, not considered borrowed
money.....................................................................................................
427
LimiJ of, for national banks........................................................................
427
Liquidating associations, on consolidation......................................... *----503
Loans, restrictions on..................................................................................
425
Reports of condition to show.......... *...........................................................
440
Restrictions on............................................................................................
427
Statements of condition to show.................................................................
440
To stockholders for unpaid dividends not considered borrowed money......
427
Lien, United States has paramount, on assets of association..............................
511

230

INDEX TO NATIONAL-BANK ACT, ETC.

Limitations:
Paragraph.
Associations, corporate existence.....................................................................
204
Bonds, withdrawal o f.....................................................................................311,312
Borrowed money not to exceed capital...........................................................
427
Capital, converted State banks........................................................................
243
Capital stock—
Increase of............................................................................................... 226,227
Payment o f.................................................................................................
224
Reduction of...............................................................................................
228
Requisite amount o f...................................................................................
222
Circulation— •
Denominations............................................................................................
324
Deposit of lawful money on withdrawing................................................
312
Exempt from tax, when.............................................................................
706
Obtainable..................................................................................................
323
Obtainable by gold banks..........................................................................
341
Tax on..................................................................................................... 444,714
To be taken at par......................................................................................
421
Unauthorized, tax on............................................................................. 708-710
Corporate existence of converted gold banks..................................................
343
Creditors of insolvent banks, notice to............................................................
516
Creditors of insolvent banks, illegal preference..............................................
529
Directors, number of.........................................................................................
230
Dividends....................................................................................................... 424,429
Expiration of corporate existence....................................................................
219
Extension of corporate existence..................................................................213,220
Gold certificates, denominations of..................................................................
433
Impairment of capital.......................................................................................
430
Interest rate.......................................................................................................
422
Issue of notes under $5......................................................................................
329
Jurisdiction, general, of national-bank cases........................................212,216,701
Lawful money deposited to retire circulation.................................................
313
Liability of national banks...............................................................................
427
Location of associations, change o f..................................................................
209
Loans to one individual, etc.............................................................................
425
“ National,” in title of bank.............................................................................
530
Place of business................................................................................................
400
Public depositaries............................................................................................
241
Real estate holdings..........................................................................................
221
Rediscounts not to exceed capital...................................................................
427
Reserve, gold banks..........................................................................................
342
Receiver, appointment of.................................................................................
520
Receiver, purchase of property to protect trust..............................................
523
Reports of condition, transmitted....................................................................
440
Reports of earnings and dividends, transmitted.............................................
442
Reserve requirements.......................................................................................
402
Reserve with central reserve agents........ ............................................ 401,405,406
Reserve with Federal reserve banks................................................................
405
Reserve with reserve agents......................................................................... 402,405
Shareholders, personal liability o f..................................................................
238
Shareholders, personal liability of shareholders of certain converted banks..
238
Shares of stock, par value.................................................................................
223
Shares of stock, directors to own......................................................................
231
State taxation of money....................................................................................
717
State taxation of national banks......................................................................
451
Stock purchased or acquired............................................................................
426
Suits, conduct of................................................................................................
700
Time for which own stock taken for debt may be held.................................
426
Time in which recovery may be made for usurious interest charges.........
423
United States bonds deposited........................................................................
302
Visitoral powers........................................................................................ ! ___
528
Voluntary liquidation, vote..............................................................................
500
Voluntary liquidation, deposit of lawful money.............................................
502
Voters at elections............................................................................................
229

INDEX TO NATIONAL-BANK ACT, ETC.

231

Liquidation:
Paragraph.
Bonds withdrawn..............................................................................................
504
Creditor’s bill against shareholders.................................................................
521
Consolidation.....................................................................................................
503
Expiring associations to comply with provisions for......................................
219
Lawful money to be deposited........................................................................
502
Notice of, to be published...............................................................................
501
Penalty for issuing circulation of associations in ............................................
747
Redemption of circulation of associations in ....................... *..................... 505,506
Sale of bonds, when..........................................................................................
504
Vote required....................................................................................................
500
Liquidation and receivership (see also Liquidation; Receiver):
Bonds, deficiency in, first lien on assets for redemption of circulation.......
511
Bonds, forfeiture o f................................................................... '......................
508
Bonds, sale of, at auction................................ ................................................
511
Bonds, sale of, privately..................................................................................
512
Bonds, withdrawal of................................................ .......................................
504
Charter, forfeiture of.........................................................................................
526
Circulation, protest of.......................................................................................
507
Consolidation, provisions for............................................................................
503
Creditor’s bill against shareholders.................................................................
521
Deposit of lawful money on liquidation.........................................................
502
Distribution of assets of insolvent associations...............................................
517
Enjoining proceedings......................................................................................
518
Enjoining proceedings, where brought...........................................................
702
219
Expiring associations.................................................................... ..................
Illegal preference of creditors...................................................... ...................
529
Jurisdiction, general, of national-bank cases..................................................
212
Jurisdiction of district courts...........................................................................
701
Notice of vote to liquidate...............................................................................
501
Notice to creditors of insolvent associations...................................................
516
Notice to present circulation for redemption.................................................
510
Penalty for issuing circulation of expired associations..................................
747
Receiver, appointment of................................................................................
515
Receiver, purchase of property to protect trust.............................................
523
Receiver, when may be appointed . ...............................................................
520
Receivership, expenses of................................................................................
519
Shareholders’ agent, appointment of..............................................................
522
Shareholders’ agent, duties of..........................................................................
522
Suits, conduct of...............................................................................................
700
509
Suspension of business for nonpayment of circulation..................................
Taxes on insolvent associations remitted..................... .............................. 450,715
Vote required for liquidation..........................................................................
500
List of shareholders..................................................................................................
439
Loans:
Associations’ liability restricted......................................................................
427
Circulation as collateral for, restricted............................................................
428
Limitation of, to one individual, etc..............................................................
425
On farm lands................................................................................................ 205,221
Prohibited on security of own stock...............................................................
426
Prohibited when reserve is short.....................................................................
409
Real estate, prohibited.....................................................................................
221
Location (see also Title and location):
Change of....................................................................................................... 209,803
Of banking house..............................................................................................
400
Organization certificate, to state.....................................................................
202
Losses, bad debts and, to be deducted from profits before declaring dividend..
429
Lost or stolen national-bank notes, redemption of................................................
417

232

INDEX TO NATIONAL-BANK ACT, ETC.

M.
Maceration:
Paragraph.
Redeemed circulation to be disposed of b y....................................................
340
Redeemed circulation of failed and liquidated banks to be disposed of b y .
506
Management by directors.........................................................................................
230
Maximum. (See Bonds; Capital; Circulation; Limitations.)
May change name and location, how___................................................................
209
Meetings, a n n u a l...................................................................................................
230
Member bank examiners..........................................................................................
527
Member banks:
Depositaries of United States...........................................................................
615
Examinations by Federal Reserve Board.......................................................
527
lim it to deposit that may be kept with nonmember bank...........................
408
Officer, director, or employee not to receive any fee, commission, etc----438
Prohibited from securing discounts from Federal reserve banks for non
member banks................................................................................................
408
Provisions for national banks outside of continental United States to become
411
Reserve requirements............................................................................ 403-412-413
Reserve, withdrawal of, from Federal reserve banks.....................................
409
Statement and reports b y .................................................................................
441
Method of refunding United States bonds as permitted by Federal reserve act.
316
Minimum (see Bonds; Capital; Circulation; Limitation) amount of capital.........
222
Minor coins:
Philippine Islands, legal tender......................................................................
719
United States, when legal tender.....................................................................
724
Misapplication:
Money-order funds............................................................1..............................
732
Penalty for.........................................................................................................
436
Misdemeanor. (See Crimes: Penalty; Official malfeasance.)
732
Money-order funds, misapplication of...................................................................
Moneys. (See Lawful money; Legal tender; Circulation; Public moneys.)
Monthly installments, capital may be paid in ......................................................
224
Mortgages:
Assignment of, when illegal..................... *......................................................
529
Assignment, when official malfeasance............................................................
436
Real estate, possession, etc., of, by association..............................................
221
506
Mutilated, circulation of failed and liquidated to b e...........................................
Mutilated or worn circulation, redemption of.................................................... 339,414

INDEX TO NATIONAL-BANK ACT, ETC.

233

Paragraph.
803
Name, change of, by national bank.......................................................................
Name of association to be approved of by Comptroller of Currency....................
202
National, use of the word, in titles of associations other than national, prohibited.
530
National-bank act:
Authority for title.............................................................................................
200
Provides for a national currency, etc..............................................................
200
245
Status of national banks organized under the act of February 25,1863 ___
National-bank examiners.........................................................................................
527
National Banking Association defined...................................................................
300
National Banking Associations:
Acceptance of drafts and bills of exchange.....................................................
206
Amendment of articles of association restricted.............................................
223
Articles of association entered into b y ............................................................
201
Borrowed money restricted..............................................................................
427
Branches may be retained by converted State banks...................................
244
Capital required................................................................................................
222
Cancellation of redeemed circulation..............................................................
514
Certificate of officers and directors...................................................................
319
Change of name and location...........................................................................
803
Change of title and location.......................................................................... 209-211
Charter forfeiture...............................................................................................
526
Charter number to be printed on circulation of.............................................
325
Circulation obtainable b y .................................................................................
323
Circulation of, tax on............................................................................. 441-450, 717
414
Circulation of, to be redeemed in United States notes..................................
Circulation to be taken at par..........................................................................
421
Circulation of, for what receivable..................................................................
337
Circulation unsigned or with forged signatures to be redeemed....................
417
Closed bank circulation................................................................................ 505,506
Comptroller and Deputy Comptroller not to be interested in, issuing circu
106
lation. .............................................................................................................
Consolidation, no deposit required for circulation of liquidated banks----503
Conversion of State banks into........................................................................
243
Corporate and incidental powers of........... .....................................................
204
Defined..............................................................................................................
300
Depositaries of public money...........................................................................
241
Deposit of bonds by, requirement repealed....................................................
302
Directors of, individually liable, when...........................................................
526
Directors, number and election of...................................................................
230
Directors, oath of...............................................................................................
234
231
Directors, qualifications of...............................................................................
Election, holding annual.............................................................................. 230,236
Enjoining proceedings....................................................................................
518
Examination of, prior to being authorized to begin business.................... 319,320
Examiners of.....................................................................................................
527
Excepted from certain taxes on circulation....................................................
714
219
Expiration of corporate existence, provisions on...........................................
Extended bank circulation...... .......................................................................
218
Exchange of bonds............................................................................................
305
Extension of Corporate existence of............................................................. 213,215
Foreign branches...............................................................................................
208
General provisions respecting bonds...............................................................
311
Gold bank circulation, provisions for issuing.................................................
341
Gold banks may be organized..........................................................................
341
Gold banks, conversion of................................................................................
343
Increase of capital stock b y.......................................................................... 226,227
Insurance or guaranty of deposits b y..............................................................
903
Lending on own stock prohibited....................................................................
426

234

INDEX TO NATIONAL-BANK ACT, ETC.

National Banking Associations—Continued.
Paragraph.
Liquidating bank circulation........................................................................ 502-506
Liquidation, provisions for............................................................................ 500-504
Loans on farm lands..........................................................................................
205
Lost or stolen notes of, to be redeemed............................................................
417
Not required to deposit United States bonds..................................................
302
Organization certificate to specifically state....................................................
202
Payment of stock prior to beginning business.................................................
224
Place of business................................................................................................
400
Political contributions prohibited....................................................................
437
Post notes, issue of, prohibited.........................................................................
338
Power to act as trustee, administrator, executor, or registrar of stocks and
207
bonds........................... : .................................................................................
Power to insure solvency of bank....................................................................
902
324
Preparation of bank circulation................................................... ...................
President of, to be chosen by board.................................................................
237
Publication of certificate of authority..............................................................
321
Purchasing own stock prohibited.....................................................................
426
Receiver may be appointed for failure to restore capital...............................
225
Reduction of capital stock................................................................................
228
Receiver for, when may be appointed.............................................................
520
Redemption and destruction of circulation of..................................... 339,340,414
Redemption account, disposition of.................................................................
4X6
Regulation of business of..................................................................................
400
Relation of bond deposit to capital of.............................................................
304
Reserve requirements.................................................................................... 403-412
Reserve requirements outside of continental United States.........................
411
Security for circulation.................................................................................. 302,303
Shares of stock...................................................................................................
223
229
Shareholders of, qualifications of, at election.................................................
Shareholders* agent...........................................................................................
522
Shareholders of, personally liable...................................................................
238
Shareholders of, when not personally liable....................................................
238
Status of, organized under the act of February 25,1863......................... .
245
Subscribed stock not paid for, forfeited to......................... .............................
225
Suspension of business after default to pay circulation.................................
509
Taxation of circulation of, by States, etc.................................................... 716, 717
Tax provisions restricted..................................................................................
714
Taxes on insolvent, remitted........................................................................ 450,715
Transfer of shares of stock.................................................................................
239
Where proceedings to enjoin must be brought. .
...................................
702
Withdrawing circulation........................................................................ 312,313, 314
212
National banks deemed citizens of States in which located.......... .....................
National banking laws applicable to Hawaii................................ - .......................
801
National banking laws applicable to Porto R ico....................................................
800
National-bank notes obligations of the United States....... ...................................
739
National-bank notes, penalty for counterfeiting....................................................
741
Newspaper:
Certificate of authority to commence business to be published in ...............
321
236
Election notice to be given in .........................................................................
430
Impairment of capital notice to be published in ..........................................
Liquidation notice to be published m .............................................................
501
Notice of meeting to elect shareholders’ agent to be published in ...............
522
Notice to creditors of insolvent banks to be advertised in ............................
516
Reports of condition to be published in ..........................................................
440
Sale of stock of delinquent shareholders to be published in .........................
225
New York City:
%
Associations in. reserve agents...................................................................... 402,420
Bonds of liquidated banks that failed to make deposit, to be sold in .........
504
Bonds, sale of forfeited, in ................................................................................
511
Designated as central reserve city...................................................................
401
Notice of expiration of corporate existence to be published in paper in .. . .
219
Notice of voluntary liquidation to be published in paper in ....................
501
Net profits. (See Dividemas.)

INDEX TO NATIONAL-BANK ACT, ETC.

235

Nonmember banks:
Paragraph.
Amount of deposit that may be kept with, by member banks, restricted..
408
Discounts from Federal reserve banks not allowed through member banks..
408
Reserve requirements for national banks that are.........................................
411
Nonresidents:
Directors............................................................................................................
231
State, etc., taxation of stock of........................................................................
451
No release from liabilities by change of title or location......................................
211
Notary public:
Acknowledgment of organization certificate before.......................................
203
Acknowledgment of reports.......................................................................... 440-442
Protest of circulation b y .................................................................................
507
Notes (see Circulation) of the United States are legal tender........................... 725-727
Notice (see Publication; Printing):
516
Creditors of insolvent banks to present claim................................................
Of election........................................................................................................
236
Of sale of bonds................................................................................................
511
Of transfer of bonds to be'given association..................................................
308
To present circulation for redemption when bonds have been forfeited___
510
Notification of redemption of circulation by United States Treasurer................
414
Number of:
Central reserve cities........................................................................................
401
Copies of annual report................................................................................. 112,113
Examinations to be made................................................................................
527
Reports of condition that may be called for...................................................
440
Null and void, illegal preference............................................................................
529

236

INDEX TO NATIONAL-BANK ACT, ETC.

Oath:
Paragraph.
Certificate of officers and directors................................................................ 224,319
Directors.............................................................................................................
234
Examiners may take statement under.............................................................
527
Execution of organization certificate........................................................... 203,243
Official, by Comptroller....................................................................................
102
Official, by Deputy Comptroller......................................................................
103
Payment of installments...................................................................................
224
Reports of condition, and earnings and dividends..................................... 440-442
Semiannual return of circulation............................. T.....................................
446
Shareholders, list of...........................................................................................
439
Obligations of the United States:
Defined...............................................................................................................
739
Exempt from taxation.......................................................................................
716
Penalty for—
Dealing in counterfeit................................................................................
746
Illegal possession or use of material for....................................................
742
Passing counterfeit.....................................................................................
743
Pledging......................................................................................................
432
Taking or having unauthorized impression of tools, etc..................... 745,746
Office force for redemption of circulation................ ..............................................
415
Officers (see also President; Cashier):
Bonds assigned to be signed by cashier or other.............................................
306
Certificate of directors and................................................................................
319
Certificate of payment of increase of stock......................................................
226
224
Certification of payment of stock by president or cashier.............................
Circulation properly signed by, issuable.........................................................
337
Disqualified to examine national banking associations in which interested
as......................................... „ ..........................................................................
527
Election or appointment of, by directors........................................................
204
Examination of, under oath.............................................................................
527
False certification of checks, forbidden...........................................................
434
Forfeiture of charter, provisions for...................................................*.............
526
Forged signatures of, to circulation, not to invalidate...................................
417
Fraudulent notes to be marked b y ..................................................................
748
Oath, administration of, to reports...................................................................
441
Official malfeasance, penalty for......................................................................
436
Penalty for false certification of checks...........................................................
435
Penalty for improperly countersigned, etc., circulation................................
344
Penalty for issuing circulation of expired associations...................................
747
Penalty for official malfeasance........................................................................
436
Penalty for pledging, etc., circulation............................................................
432
Penalty for political contributions...................................................................
437
Penalty for unauthorized receipt of public money........................................
738
Preference of creditors......................................................................................
529
President of board a director............................................................................
237
President or cashier—
'Certification of extension..........................................................................
214
Certification of expiration of existence...................................................
219
Certification of liquidation.......................................................................
501
Waiving notice of protest..........................................................................
507
President or vice president and cashier to sign circulation...........................
324
Proxy, not to act as...........................................................................................
229
520
Receiver, appointment of, for violation of national-bank act b y ..................
Redemption of unsigned circulation...............................................................
415
Reports of condition, verification of, by president or cashier.................... 440,441
Reports of earnings and dividends, attestation of, by president or cashier..
442
Shareholders’ lists verified by president or cashier........................................
439
Taxation, circulation subject to, returns by president or cashier................
446
Taxation, unauthorized circulation, returns Dy president or cashier..........
711
Officers, United States:
730
Deposit and withdrawal of public money.......................................................
Penalty for improper countersigning or delivering circulation.....................
344
Penalty for unauthorized deposit o f public money........................................
737
Receiving or disbursing public money to mark fraudulent...........................
748
Offices, vaults, etc., assignment of, to the Comptroller by the Secretary...........
108

INDEX TO NATIONAL-BANK ACT, ETC.

237

Official:
Paragraph.
Malfeasance, penalty for...................................................................................
436
Register, information for..................................................................................
I ll
Seal of Comptroller of the Currency................................................................
107
Oklahoma, deposit guaranty la w ............................................................................
900
Organization and powers of national banks:
Amendment of articles of association..............................................................
223
Articles of association.'....................................................................................
201
Branches of converted State banks.................................................................
244
Capital stock......................................................................................................
202
222
Capital stock requirements..............................................................................
Certificate of authority to begin business.......................................................
320
319
Certificate of officers and directors........................................... ......................
Change in title and location..................................................... ’ ......................
209
Conversion of gold banks.................................................................................
343
Conversion of State banks................................................................................
243
Corporate powers...............................................................................................
204
Deposit of bonds............................................................................................... • 302
Directors, election o f........................................................................................
236
Directors, number and election of...................................................................
230
234
Directors, oath of..............................................................................................
Directors, qualification o f................................................................................
231
Directors, to choose president.........................................................................
237
Directors, vacancy, how filled.........................................................................
235
Enforcing payment of stock............ .......... - ....................................................
225
319
Examination preliminary to beginning business...........................................
Execution of organization certificate...............................................................
203
Extension of corporate existence.....................................................................
213
Failure to hold election....................................................................................
236
Gold banks, conversion of................................................................................
343
Gold banks, organization o f.............................................................................
341
Incidental powers.............................................................................................
204
Increase of capital stock, provisions for....................................................... 226,227
Increase of capital stock, when valid..............................................................
226
Liquidation.......................................................................................................
500
Location and title, change of...........................................................................
209
Location.............................................................................................................
202
Organization certificate....................................................................................
202
Payment of stock..............................................................................................
224
President, election of, by board......................................................................
237
President, qualification o f................................................................................
237
Publication of certificate of authority to begin business...............................
321
228
Reduction of capital stock, provisions for......................................................
225
Restoration of capital stock.............................................................................
Shareholders......................................................................................................
202
Shareholders, personal liability o f..................................................................
238
229
Shareholders, qualification of, at election......................................................
Shareholders, when personally liable..............................................................
238
Shares of stock..................................................................................................
223
State banks, conversion of...............................................................................
243
State banks, converted, may retain branches................................................
244
Status of associations organized under act of Feb. 25, 1863..........................
245
T itle...................................................................................................................
202
Title and location, change o f...........................................................................
209
Vacancies in board, how filled........................................................................
235
Organization certificate:
Acknowledgment o f..........................................................................................
203
Certified copy of, evidence..............................................................................
704
Comptroller to grant or withhold.....................................................................
320
Conversion of gold banks.................................................................................
343
Conversion of State banks................................................................................
243
Execution o f......................................................................................................
203
Sealed certificate of Comptroller, evidence....................................................
703
Specifications in ................................................................................................
202
Other bonds to secure deposits...............................................................................
241
Other real estate owned...........................................................................................
221
Other cities may be designated as central reserve cities......................................
401
Other reserve cities. (See Reserve cities.)
Overdue paper............................................................................. ............................
429

238

INDEX TO NATIONAL-BANK ACT, ETC*

P.
Panama Canal bonds:
Paragraph.
Additional issue................................................................................................. ..... 767
Available as security for circulation............................... ............................... .....303
Issued under act Aug. 5, 1909, not receivable as security for circulation...
768
Tax on circulation secured b y ...................................................................... 303,444
Panama, reserve requirements, etc., for national banks in ........................................411
Paper for printing circulating notes........................................................................ .....326
Paper used for United States securities, penalty for use of without authority...
742
Par, bonds not to be sold at less than..................................................................... ..... 512
Par, national banks to take notes of other national banks at.....................................425
Par value of capital stock of converted State banks............................................. .....243
Par value of stock..................................................................................................... .....223
Passing counterfeit circulation, penalty for.................................................................743
Past due paper.......................................................................................................... .....429
Payment of:
Assessment for impaired capital............................................................................430
Capital stock, provisions relative to ................................................................ .....224
Claims against insolvent banks...................................... ................................. .....517
Tax on circulation............................................................................................. .....444
Tax on circulation other than national........................................................... .....710
Payments for:
Purchase of property by receiver provided for....................................................525
Which national bank notes are receivable..................................................... .....337
Penalty:
Appointment of receiver for violations of act..............................................515,520
Bond of Comptroller............................................................................................... 102
Bond of Deputy Controller........................................................................... 103,104
Circulating notes less than $1, issue of............................................................ .....718
Counterfeiting circulation, etc...................................................................... 740,747
Dealing in counterfeit circulation......................................................................... 746
Embezzlement, abstraction, willful misapplication, false entries, etc..............436
False certification of checks............................................................................. .....435
Failure to make reports......... ................................................................................443
Failure to pay installment on stock.....................................................................225
Failure to redeem circulation................................................................................508
Forfeiture of charter for violations of bank act....................................................526
Forging or counterfeiting United Statep securities......................................... .....740
Illegal possession or use of material for circulation........................................ .....742
Imitating bank circulation for advertising purposes,..........................................345
Improper countersigning or delivering circulation..............................................344
Interest, unlawful...................................................................................................423
Interlocking directorates.................................................................................. ..... 233
Issuing circulation of expired associations..................................................... ...... 747
Jurisdiction of the United States courts...................................................... 212,216
Mutilating circulation....................................................................................... .....346
Misapplication of money-order funds....................................................................732
“ National,” unlawful use of the word............................................................ .....530
Official malfeasance................................................................................................436
Passing counterfeit circulation......................................................................... .....743
Pledging United Stated notes or bank circulation......................................... .....432
Reports to Comptroller, failure to make...............................................................443
Reserve, maintenance o f.................................................................................. .....402
Reserve, shortage...................................................................................................409
Semiannual return of circulation, failure to make...................................... 446-149
Taking or having unauthorized impression of tools, etc............................. 744,745
Unauthorized deposits of public m oney...............................................................737
Unauthorized receipt or use of public money......................................................738
Usury.............................................................................................................. 422,423
Violations of any of the provisions of the bank act........................................ .....526
Period for which real estate may be held....................................................... ............221
Personal liability. (See Shareholders; Trustees; Liability.)
Personal property, shares of stock of national banks taxed as...................................451
Philippine Islands, legs1 tender coins................. ...................................................... 719

INDEX TO NATIONAL-BANK ACT, ETC.

239

Philippine Islands:
Paragraph.
Public funds in the United States to be deposited in member banks.........
615
Reserve requirements, etc., for national banks in .........................................
411
742
Photographing United States securities without authority, penalty for........
Place of business, organization certificate to state............................................ 400,202
Place for redemption of circulation.......................................................................
414
Place where proceedings to enjoin Comptroller must be brought........................
702
Place where tax on shares in national banks is to be paid...................................
451
Places where circulation may be redeemed..........................................................
414
Plates:
Control of...........................................................................................................
327
Cost of engraving................................................................................... 218,327,414
Custody of.........................................................................................................
108
Engravmgof.....................................................................................................
324
328
Examination annually...................... .............................................................
Expense of examination and destruction of...................................................
328
Extended banks...............................................................................................
218
Liquidating bank, to be destroyed.................................................................
328
Penalty for counterfeiting or having possession of counterfeit.................. 742,744
744
Penalty for taking unauthorized impression of tools, etc..............................
Penalty for having false impressions of tools, etc...........................................
745
Pledging or hypothecating circulation prohibited................................................
428
Political contributions prohibited..........................................................................
437
Population, relation of capital stock to..................................................................
222
Porto R ico:
National banking laws applicable to...............................................................
800
Reserve requirements, etc., for national banks in .........................................
411
Postal savings funds to be deposited in member banks........................................
615
Postmasters:
Deposit of public funds b y ..............................................................................
731
Misapplication of money-order funds b y ........................................................
732
Postmaster General, deposit of funds by authority of...........................................
732
Post notes, national banking associations prohibited from using.........................
338
Power:
Comptroller to assess fine for failure to make reports....................................
443
311
Of attorney to receive interest on bonds........................................................
Of national banks to act as trustee, executor, etc..........................................
207
Of national banks to insure deposits...............................................................
903
To hold real property.......................................................................................
221
Powers (see also Comptroller):
Granted to national banks...............................................................................
204
Incidental, of national banks..........................................................................
204
Of examiners.....................................................................................................
527
Of national banks to insure solvency of bank................................................
902
Receiver........................................................................................................ 515,523
Shareholders’ agent..........................................................................................
522
Visitatorial, limitations o f................................................................................
528
Preference:
In allotment of shares in succeeding association............................................
217
Of creditors illegal............................................................................................
529
Preliminary examinations, expense of...................................................................
519
Preparation of circulation, provisions for...............................................................
324
President (see also Officers):
Certificate of officers and directors................................................................
319
Certificate of stock payment............................................................................
319
Countersigning or delivering circulation improperly.....................................
344
Director to b e...................................................................................................
237
Election or appointment of, by directors.................................................... 204,237
False certification of checks by, and penalty for....................................... 434,435
Liquidating bank, duty in ..............................................................................
501
Of the board, election o f— 1..........................................................................
237
Official malfeasance, penalty for.....................................................................
436
Proxy, not to act as..........................................................................................
229
Public money, unauthorized receipt of, b y ...................................................
738
Reports of condition, verified b y ...................................................................
440
Reports of earnings and dividends to be verified by.....................................
442
Signature of, forged, not to invalidate circulation............ .
417

240

INDEX TO NATIONAL-BANK ACT, ETC.

President (see also Officers)—Continued.
Paragraph.
Signature of, on circulation.......................................................................... 324,337
Violations of act, by, penalty for................................................................. 436,526
President of the United States, appointment* of Comptroller b y .........................
101
Printing:
Annual report of the Comptroller, number printed and distribution o f .. 110-112
Certificate of authority to begin business........................................................
321
Charter number on circulation..........................................................................
325
Circulating notes on distinctive paper..............................................................
326
Circulation of associations.................................................................................
324
Circulation of extended banks............ ............................................................
218
Creditors of insolvent associations, notice to...................................................
516
Notice of special annual election....................................................................
236
Notice of sale of delinquent stock................................................................ 225,430
Notice of sale of bonds at public auction........................................................
511
Notice of liquidation........................................................................................
501
Notice of expiration.........................................................................................
219
Penalty for counterfeiting circulation............................................................
741
Penalty for illegal possession or use of material tor circulation.....................
742
Penalty for imitating circulation.....................................................................
345
Penalty for taking or having unauthorized impression of tools, etc., for__ 744,745
Reports of condition...................... ..................................................................
440
Shareholders agent, notice of election o f .......................................................
522
Voluntary liquidation, notice o f......................................................................
501
Private sale of bonds to secure circulation............................................................
512
Proceedings:
If shareholder fails to pay installments...........................................................
225
To enjoin Comptroller................................................................................... 701,702
Where no election is held on the proper day..................................................
236
Profits, undivided, not considered borrowed money............................................
427
Prohibitions:
427
Borrowed money in excess of capital..............................................................
Business not to be transacted until authorized by Comptroller....................
204
Circulation, pledging o f....................................................................................
428
Comptroller or Deputy Comptroller from being interested in any association
issuing national currency..................................*...........................................
106
Counterfeiting, etc........................................................................................ 740,746
Deposit of Government money in banks not belonging to Federal Reserve
System............................................................................................................
242
Imitation of circulation....................................................................................
345
Interlocking directorates........ . ......................................................................
232
Issuing circulation to unauthorized associations............................................
344
426
Loaning on own stock— .................................................................................
Loans in excess of a certain lim it...................................................................
425
Member bank limited in amount of deposit with, and forbidden to secure
discounts from, Federal reserve banks for nonmember banks...................
408
Mutilation of circulation..................................................................................
346
National-bank notes not to be used as security for loans...............................
432
Notes less than $1..............................................................................................
718
Officers of bank not to administer oath for reports of condition...................
441
Political contributions..... ........................... ...................................................
437
Postmasters not to receive interest on deposits..............................................
731
338
Posts notes, issue of........ ...................................... ..........................................
Public funds of Philippine Islands, postal savings or any Government
funds not to be deposited in banks other than member.............................
615
Purchase of own stock.......................................................................................
426
Reserve shortage...............................................................................................
409
Restriction as to visitatorial powers................ ..............................................
528
Sale of bonds for default of payment of circulation at less than par............
512
Unauthorized deposit of public money...........................................................
737
Unauthorized receipt of public money................ ; .........................................
738
Uncurrent notes not to be put in circulation............................... .................
431
United States notes not to be used as security for loans................................
436
Use of title “ National” ............................. .....................................................
530
Using plates to print notes without authority.................................................
742
Usurious rate of interest...-...............................................................................
422
Voters at elections.............................................................................................
229
Withdrawal of capital.......................................................................................
421

INDEX TO NATIONAL-BANK ACT, ETC.

241

Paragraph.
Proof of publication, report of condition................................................................
440
Protest of circulation:
Bonds forfeited, when......................................................................................
508
Bonds, sale of, when..................................................................................... 511,512
507
Failure to redeem circulation............. . ...........................................................
Provisions:
Appointment of receiver..................................... ........... .......... ....................
515
Assessment when bank fails to make return on circulation..........................
447
Dividends................................ . ........ - .............................................................
424
Enforcing payment of tax on circulation........................................................
448
Examination of bonds and records.............................................................. 309-311
Excess payment of tax on circulation, refunding o f......................................
449
Federal Reserve Board to sell United States bonds to Federal reserve
banks....... ............ - ........................................................................................
316
For changes in deposit of bonds......................................................................
304
For deposits by disbursing officers...................................................................
730
For deposits by postmasters.................... .......................................................
731
For destruction and replacing of circulation............................................... 339,340
For liquidation of banks at expiration of charter...........................................
219
For national banks outside the continental United States to become mem
ber banks............... - ......................................................................................
411
For obtaining circulation.................................................................................
323
For organization of gold banks.........................................................................
341
For redeeming circulation............................. ..................................................
414
For redemption of circulation when charter is extended..............................
218
For reimbursement of expenses for redemption of circulation......................
415
For withdrawal of circulating notes................................................................
312
Gold certificates, issue o f.................................................................................
433
Impairment of capital......................................................................................
430
Inspection of list of shareholders.....................................................................
439
Liquidation.................................................................................................... 500,501
Of articles of association...................................................................................
201
Of by-laws..............- .......... ..............................................................................
204
Payment of tax on circulation.........................................................................
444
Reports of condition.........................................................................................
440
Respecting bonds, general.................... ..........................................................
311
Retirement of circulation by sale of United States bonds............................
315
Shareholders’ agent, election o f......................................................................
522
Surplus............................................................ .................................................
424
To be complied with before commencing business.................................... 302,319
Proxies authorized...................................................................................................
229
Proxies can vote for shareholders’ agent................................................................
522
Publication (see also Printing):
Annual election, notice of holding special.....................................................
236
Certificate of authority to begin business.......................................................
321
Creditors of insolvent associations, notice to..................................................
516
Nonpayment of circulation, notice to present................................................
510
Reports of condition of national banks...........................................................
440
Sale of bonds, notice of....................................................................................
511
Sale of delinquent stock, notice of.............................................................. 225,430
Shareholders^ agent, notice of election of.......................................................
522
Voluntary liquidation, notfce o f......... . .........................................................
501
Public debt, national-bank circulation receivable for, with certain exceptions.
337
Public deposits (see aho Deposits):
Banks to give security for................................................................................
241
Duty of disbursing officers...............................................................................
730
Duty of postmasters..........................................................................................
731
Postmasters........................................................................................................
731
Purchase of real estate.............................................................................................
221
Public dues, certified checks receivable for, under certain conditions...............
770
Public sale of stock purchased from dissenting shareholders...............................
217
Pulp from macerated circulation............................................................................
340
Purchasing own stock prohibited...........................................................................
426
Purchase of property by receiver........................................................................ 523 525
Purchase of united States bonds by Federal reserve banks................................
316
Purpose of organization certificate to be stated therein........................................
202
44326°— S. Doc. 4 1 2 ,6 4 -1 -------16

242

INDEX TO NATIONAL-BANK ACT, ETC.

Qualification:
Paragraph.
Comptroller of the Currency.............................................................................
102
Deputy Comptroller..........................................................................................
103
Directors of national banks...............................................................................
231
Examiners of associations.................................................................................
527
522
Shareholders’ agent...................... ...................................................................
Quarters for Currency Bureau..................................................................................
108

INDEX TO NATIONAL-BANK ACT, ETC.

243

R.
Kate. (See Interest; Tax; Usury.)
Paragraph.
Kate of interest which may be charged..................................................................
422
Ratio. (See Bonds; Capitol and circulation.)
Real estate:
Investments and holdings restricted................................................................
221
Loans on, permitted with certain restrictions.................................................
205
Mortgages, lim ited............................................................................................
221
Subject to State, etc., taxation........................................................................
451
Real estate broker, when national bank may act as broker in procuring loans
on real estate............... ........................................................................................
427
Reassignment of bonds, liquidating bank..............................................................
504
Receipt for bonds transferred...................................................................................
306
Receiver:
Appointment and duties of..............................................................................
515
Appointment of—
For failure to dispose of own stock...........................................................
515
For failure to restore diminished capital.................................................
515
For false certification of checks................................................................
515
For nonpayment of circulation.................................................................
515
For impairment of capital.........................................................................
515
For insolvency.................................................................... •......................
520
For nonmaintenance of reserve................................................................
515
When capital reduced by failure to pay installments............................
225
Courts may enjoin.............................................................................................
518
519
Expenses of, how paid.....................................................................................
General jurisdiction of national-bank cases....................................................
212
Jurisdiction of district courts to enjoin Comptroller or..................................
701
Purchase of property by, to protect trust.......................................................
523
Receiverships. (See Liquidation and receivership; Receiver.)
Recoinage oi uncurrent subsidiary silver..............................................................
757
Records, regulations for redemptions.......... .................................... ....................
513
Redeeming circulation.......................................................................*...................
414
Redemption:
Cancellation of circulation sent for..................................................................
514
Deposit of lawful money for, of associations in liquidation...........................
502
Division^ Treasurer’s Office, established.........................................................
752
Disposition of, account.....................................................................................
416
Extended banlfcirculation..............................................................................
218
First lien on assets............................................................................................
511
Five per cent fund for—
To be maintained.......................................................................................
414
Not part of lawful reserve......................................................................412,414
Forfeiture of bonds............................................................................................
508
Forged signatures not to prevent.....................................................................
417
General provisions respecting..........................................................................
414
Incomplete circulation.....................................................................................
417
Issue and Redemption divisions established..................................................
752
Lawful money, o f circulation...........................................................................
414
Liquidating bank circulation...................................................................... 505,504
Lost national-bank notes..................................................................................
417
Notice to present circulation for......................................................................
510
Of circulating notes issued prior to extension................................................
218
Of circulation, place for...................................................................................
414
Proceeds from sale of bonds for, of circulation...............................................
504
Profit on circulation not presented for............................................................
218
Protest of circulation, for failure to redeem....................................................
507
Records of..........................................................................................................
513
Retirement account..........................................................................................
416

244

INDEX TO NATIONAL-BANK ACT, ETC.

Redemption—Continued.
Paragraph.
Sale of bonds.................................................................................................. 511,512
State bank circulation............................................................................................706
Stolen national-bank notes............................................................................... .....417
United States notes, of circulation, in ............................................................. .....414
United States and Treasury notes, to be in gold............................................ .....750
Unsigned circulation to be redeemed.............................................................. .....417
Withdrawn circulation...................................................................................312,313
Worn or mutilated circulation...................................................................... 339,340
Redemption account, disposition of...................................................................... ,
414
Redemption of United States notes, gold coin and bullion to be set apart as
reserve for.............................................................................................................. .....750
Rediscounts by Federal reserve banks, Federal Reserve Board to regulate............427
Rediscounts lim ited.......................................................................................................427
Reduction of—
Bonds to secure circulation....................................................................................311
Capital............................................................................................................ 228, 304
Circulating notes.....................................................................................................313
Reextension of charter............................................................................................. .....220
Refunding—
Bonds under provision of Federal reserve act......................................................315
Excess payment tax on circulation.......................................................................449
Of United States bonds..................................................................................... .....759
Of United States bonds under Federal reserve act..............................................315
Register of the Treasury, signature on circulation......................................................324
Registered bonds, intended by term United States bonds................................... .....301
Registered bonds, exchange of coupon bonds for........................................................305
Registrar of stock and bonds, power of national banks to act as.......................... .....207
Registry of transfer of bonds.................................................................................... .....307
Regulations for exchange of bonds.......................................................................... .....323
Regulations for redemption records........................................................................ .....513
Regulation of banking business:
Assessment, enforcement of............................................................................. .....430
Circulation, improper use of............................................................................. .....428
Dividends................................................................................................................424
Dividends prohibited, when............................................................................ .....429
Examiners, appointment of.............................................................................. .....527
Examiners, compensation of..................................................................................527
Impairment of capital....................................................................................... .... 430
Interest, lim ited................................................................................................ .....422
Interest, unlawful, penalty for......................................................................... .....423
Laws governing certain associations................................................................ .....300
Liability of association restricted........................................................................ 427
Loans, restrictions on.................................................. '..................................... .... 425
Net profits.......................................................................................................... .....424
Place of business.....................................................................................................400
Real estate, purchasing, etc.................................................................................. 221
Reports of condition.......................................................................................... .....440
Reports, failure to make................................................................................... .....443
Reports, verification of.................................................................................. 441,442
Reports of dividends and earnings.......................................................................442
Reserve cities..........................................................................................................402
Reserve cities, balances with agents.....................................................................406
Reserve cities, central............................................................... ................... 401,402
Reserve cities, requirements............................................................................ .....402
Reserve requirements, gold banks................................................................... .... 342
Shareholders, list of.......................................................................................... .... 439
State taxation of associations................................................................................ 451
Stock, holding, etc............................................................................................ .... 426
Surplus and dividends...................................................................................... .... 424
Uncurrent notes, use of, prohibited..................................................................... 431
Unearned dividends prohibited....................................................................... .... 429
Visitatorial powers, limitation o f..................................................................... .... 528
Reimbursement {see Circulation; Expense; Plates and dies) of expenses for
redemption of circulation..................................................................................... .... 415
Removal of Comptroller of the Currency.....................................................................101
Replacing worn-out and mutilated circulation.......................... .............................. 339

INDEX TO NATIONAL-BANK ACT, ETC.

245

Reports:
Paragraph.
Amendments proposed in Comptroller’s annual.............................................
110
Annual, number to be printed..................................................................... 112,113
Annual, to be made to Congress......................................................................
110
Banks’ , other than national.............................................................................
110
Circulation, semiannual return of....................................................................
446
Closed banks.................................................................................................. 110, 111
Condition of national banks in annual............................................................
110
Distribution of annual.................................................................................. 112,113
Dividends and earnings................................................................................ 442,443
Failure to make, to Comptroller......................................................................
443
List of shareholders...........................................................................................
439
Of examiners.....................................................................................................
527
Payment of capital stock.............................................................................. 224, 225
Printed, number of copies of annual........................................................... 112,113
Receiver, to Comptroller..................................................................................
515
Statement of condition of national banks, Federal reserve banks, and
member banks............................................................................................ 440,441
Requirements prior to commencing business........................................................
319
Requisite:
Amount of capital......................... —................................................................
222
Qualifications of directors.................................................................................
231
Requisites of organization certificate.....................................................................
202
245
Reservation of rights of associations organized under act of 1863........................
Reserve:
Clearing-house certificates................................................................................
402
410
Deposits to govern amount of..........................................................................
Determined by deposits, not circulation........................................................
402
Federal reserve banks, that may be held with........................................... 405-407
Five per cent fund not counted as...............................................................412,414
Gold and silver, held by gold banks...............................................................
342
Gold certificates................................................................................................
433
Lawful money............................................................................................... 402,414
Maintenance of..................................................................................................
402
413
None required to be held against United States deposits.............................
On circulation not required.............................................................................
402
Penalty for failure to maintain........................................................................
402
Proportion of, with agents..................................................................... 401,405,406
Proportion of, with Federal reserve bank.......................................................
405
Requirements................................................................................................ 402-412
Required to be held with Federal reserve bank...........................................
407
Requirements for gold banks...........................................................................
342
Silver certificates..............................................................................................
729
Withdrawal of, from Federal reserve bank.....................................................
409
Reserve agents (see also Agent), balance with.............................................. 401,405,406
Reserve cities:
Additional, provisions for............................................................................. 401,402
Cash reserve required.......................................................................................
406
Central, deposits in ......................................................................... 401,402,405,406
Central, provisions for......................................................................................
401
Classification of.................................................................................................
402
Designation of...................................................................................................
402
Distribution of reserve to be held by banks in ..............................................
406
Names of............................................................................................................
402
Requirements, not applicable to gold banks in San Francisco.......................
401
Requirements of associations in ................................................................... 402,406
Reserve requirements.......................................................................................
406
Reserve that may be held with, by banks elsewhere than in reserve cities.. .
405
Reserve requirements:
Banks not in reserve or central reserve cities.................................................
405
Central reserve cities.................................................................................... 401,407'
Country banks...................................................................................................
405
Estimate of........................................................................................................
410
Five per cent redemption fund not counted as reserve.................................
412
How estimated..................................................................................................
410
Reserve cities other than central................................................................ 402,406
When effective..................................................................................................
404

246

INDEX TO NATIONAL-BANK ACT, ETC.

Residences:
Paragraph.
List of shareholders and, reported annually.................. ................................. .....439
List of shareholders and, in organization certificate......................................... .....202
National banks........................................................................................................212
Qualifications of directors of associations........................................................ .....231
Resources. (See Assets.)
Restoration of capital stock, provisions for......................................................... 225,430
Restrictions:
Amount of lawful money that may be deposited to withdraw circulation.. 314
Gold certificates, issue of.................................................................................. .....729
Notes less than $1.............................................................................................. .....718
On banks’ indebtedness.........................................................................................427
On loans...................................................................................................... ........... 425
State tax on national-bank shares.................................................................... .....451 *
Tax on circulation............................................................................................. .....714
Upon use of circulating notes........................................................................... .....428
Visitatorial powers lim ited............................................................................... .....528
Resumption of specie payments...................................................................................329
Retirement account, circulation for which deposits made to redeem..........................416
Retirement of:
Circulating notes....................................... , .................................................. -.
313
Circulation by deposit of lawful money.......................................................... .....314
Circulation by safe of United States bonds..................................................... .....315
Retiring circulation under provisions of Federal reserve act.................................. .....315
Returns. (See Circulation; Reports; Taxation.)
Right of shareholders to v o te .......................................................................................229
Rooms, vaults, and furniture for Currency Bureau.................................. .................108

INDEX TO NATIONAL-BANK ACT, ETC.

247

Paragraph.
401
St. Louis designated as a central reserve city .......................................................
Salaries of examiners...............................................................................................
527
Sale:
#
Assets of insolvent association, by receiver....................................................
515
Assets of insolvent associations, by shareholders’ agent..................................
522
Bonds, for failure to redeem circulation....................................... 504,508,511,512
Of stock purchased from dissenting shareholders.............................................
217
Stock, for delinquent payment of installment...............................................
225
Stock, for impairment of capital......................................................................
430
Stock taken for debt........ ...............................................................................
426
Savings accounts as time deposits..........................................................................
403
Savings banks (see Code of District of Columbia), statements to be given in
annual report........................................................................................................
110
Seal, power of association to adopt and use...........................................................
204
Seal of Office of Comptroller:
704
Certified copy of organization certificate under, evidence..............................
Certificates under, competent evidence..........................................................
703
Description, impression of, and certificate of approval by Secretary of the
Treasury, to be filed with the Secretary of State..........................................
107
Devised by Comptroller and approved by Secretary.....................................
107
Secretary of Interior, report to, of bureau employees..............................................
I ll
Secretary of State, description, impression, and certificate of seal of Comp
troller to be filed with..........................................................................................
107
Secretary of the Treasury:
Agent, special, to be appointed for associations failing to redeem circula
tion.................................................................................................................
508
Appointment of clerical force, for redemption of circulation, b y ....................
415
Appointment of Comptroller on recommendation of.......................................
101
Appointment and classification of clerks b y ..................................................
105
Appointment of Deputy Comptroller b y .................................................... 103,104
Assignment of rooms, etc., for the Comptroller b y.........................................
108
Authorized to exchange registered for coupon bonds.......................................
305
Authorized to issue 3 per cent gold bonds and Treasury gold notes.............
318
Certified checks may be received for duties, internal taxes, and all public
dues upon regulations prescribed b y.............................................................
770
Circulating notes printed under direction of..................................................
326
Circulation, worn or mutilated, destruction of, b y....................................... 339,340
Clerks for Comptroller of the Currency appointed by......................................
105
Deposit of Government moneys upon direction of.........................................
615
Depositaries of public moneys designated b y ................................................
241
Duties of Comptroller under general direction of...........................................
100
Earnings from Federal reserve banks, disposition of, b y...............................
750
Examiners, appointments to be approved b y................................................
527
Exchange of bonds, terms of, prescribed b y............................................... 311,323
Gold certificates, authority to issue............................................................. 433,729
Gold certificates to be issued b y......................................................................
754
Gold dollar to be maintained as standard unit of value b y...............................
749
Gold notes may be issued by, in exchange for certain United States bonds.. .
318
Gold reserve for redemption of United States and Treasury notes to be
maintained b y ...............................................................................................
750
May prescribe rules for printing charter numbers on circulation...............
325
National bank examiners, appointments to be approved b y ......................
527
Notice to present circulation for redemption when bonds have been for
feited..............................................................................................................
510
Organization of national banks with capital less than $100,000 to be approved
b y ...................................................................................................................
222
Panama Canal bonda, additional issue b y ......................................................
767
Plates and dies, regulations for, examination of, to be approved b y .........
328
Post-office money-order funds placed in national banks designated b y ...
732

248

INDEX TO NATIONAL-BANK ACT, ETC.

Secretary of the Treasury—Continued.
Paragraph.
Public-money deposits.....................................................................................
730
340
Pulp from maceration to be disposed of b y ....................................................
Purchase of property by receiver to be approved b y ............................. 524,525
Recommendation of appointment of Comptroller b y .....................................
101
Receivers, appointment of, by Comptroller, concurrence in by, in certain
cases................................................................................................................
402
Refunding United States bonds.......................................................................
759
Regulations for redemption records.................................................................
513
Regulations for reimbursement of circulation retirement account. .1 ........
416
Seal of office of Comptroller to be approved b y .............................................
107
State-bank circulation, regulations for redemption of, to be prescribed b y .
706
102
Sureties on bond of Comptroller of Currency to be approved b y ........... . .
Sureties on bond of Deputy Comptroller to be approve b y ....................... 103,104
When silver dollars are coined, Treasury notes to be canceled, and silver
certificates to be issued b y ...........................................................................
753
Withdrawal of circulation to be approved b y .................................................
314
Sections of Revised Statutes, not included in the national-bank act, affecting
national banks___: ............................................................................................ 700-770
Security for circulation (see Bonds, United States), United States bonds a s.. 302,303
Security for Government deposits...........................................................................
241
Security for loans:
Personal.......................................... : ................... ............................................
204
United States notes and national bank notes not to be used as....................
432
Semiannual return of circulation............................................................................
446
Senate:
Comptroller appointed by the President, by and with the advice o f.........
101
Comptroller’s report to be sent to....................................................................
112
Shareholders:
Agent of, to return to, assets of insolvent associations...................................
522
Annual meeting................................................................................................
230
Appointment and qualification of agent o f.....................................................
522
Assessment for impairment of capital.............................................................
430
Assets of insolvent association to be returned to, ratably after debts are paid.,
517
214
Consent of, necessary to extension..................................................................
Conversion of State banks, requirements........................................................
243
Creditor’s bill against........................................................................................
521
Directors, election or appointment of, b y ................................................... 204, 230
Dissenting to extension, may withdraw............................................................. 217
Duties of agent of..............................................................................................
522
Enforcement of assessment for impairment of capital stock....................
430
Enforcing payment by, of installments...........................................................
225
240
Estates ana funds with trustee liable for assessment.....................................
Extension of corporate existence.................................................................. 213,214
Failure to pay installments..............................................................................
225
Impairment of capital, assessment...................................................................
430
Increase of capital stock b y .......................................................................... 226, 227
Individual liability of.......................................................................................
238
Liability, enforcement of, by receiver......................................................... 515,520
Liability of, who have transferred their shares...............................................
239
List of, to be kept and sent to Comptroller.....................................................
439
List of, subject to inspection............................................................................
439
Location, change of, b y ....................................................................................
209
Names, residences, and number of shares held by each in organization
certificate................................................. .....................................................
202
Personal liability of, in certain converted State banks.................................
238
Provision for election by, when.......................................................................
236
Proxies, votirg b y .............................................................................................
229
Qualifications of directors.................................................. ..............................
231
Reduction of capital stock b y ..........................................................................
228
Rights, and liabilities of, on transfer of shares........... ,...... ............................
223
Title and location of association, change of, b y ......... ....................................
209
Vote of, necesary to place association in liquidation.....................................
500
Voters, qualification o f.....................................................................................
229

INDEX TO NATIONAL-BANK ACT, ETC.

249

Shares:
Paragraph.
Association not to own or hold its own, except..............................................
426
Capital stock number, and name of nolders to be stated in organization
certificate.......................................................................................................
202
Consent of owners of two-thirds, necessary to extension..............................
214
Converted State bank to be the same as prior to conversion........................
243
Disposition of, taken for debt..........................................................................
426
Fifty per cent of aggregate value of, to be paid in prior to beginning busi
ness.................................................................................................................
224
Holding of, in other banks by converted banks authorized..........................
243
Installments, payment, and certification of...................................................
224
439
List of owners of, to be kept and copy sent to Comptroller..........................
Loan on security of, prohibited.......................................................................
428
Oath of director relative to..............................................................................
234
Owners of two-thirds may place association in liquidation...........................
500
Organization certificate to state capital and number of. *........ *...................
202
Personal property................................................ ......................................... 223,451
Preference in allotment of, in succeeding associations..................................
217
Purchased or acquired......................................................................................
426
Qualifications of directors................................................................................
231
Receiver may be appointed for failure to dispose of, taken...................... 426,515
Sale or forfeiture of, for failure to pay installments due................................
225
Sale of, when necessary......................................................................... 217,426,430
State taxation of...............................................................................................
451
Transfer o f.........................................................................................................
223
Value of, of shareholders dissenting to extension, how ascertained.............
217
Value, par, of each........................................................................................ 223,243
Voting........................................................................................ • ....* ..............
229
Signature on circulation:
Not required for redemption of........................................................................
417
President or vice president and cashier..........................................................
324
Treasurer and Register, United States............................................................
324
Silver:
Construed to be lawful money, when.............................................................
342
Reserve of gold banks to gold and...................................................................
342
Silver certificates:
Clearing-house balances payable in .................................................................
729
Denominations of..............................................................................................
755
Issue of, in place of Treasury notes, when.....................................................
753
Issue of, when............................................................................................... 753,755
Reserve of national banks may be..................................................................
729
Silver coinage:
Dollars............................................................................................................ 751,753
Subsidiary...................................................................................................... 756,757
Silver coins:
Foreign, not legal tender..................................................................................
719
Philippine Islands, legal tender......................................................................
719
United States, are legal tender.................................................................... 722,723
Silver dollars to remain legal ten der.................... ........................................... 722,751
Solicitor of the Treasury, conduct of suits under direction and supervision o f. . .
700
803
Special acts relating to national banks..................................................................
Special agent. (See Agent.)
Special customs deposits, certified checks receivable for, under certain condi
tions......... ............................. ..............................................................................
770
Special examination for extension of charter......................................................
215
Special reports, authority for..................... ............................................................
440
Specie payments, no notes under $5 to be issued after resumption of................
329
Standard unit of value, gold dollar declared to be...............................................
749
State banks:
Branches of, converted.....................................................................................
244
Circulation of, when exempt from taxation....................................................
706
Conversion o f....................................................................................................
243
Examination (member banks)........................ .......... ....................................
527
Penalty for failure to make return of tax on circulation...............................
712
Penalty for unauthorized receipt of public money........................................
738
Reports of, provided for............................................................ .......................
110

250

INDEX TO NATIONAL-BANK ACT, ETC.

State banks—-Continued.
Paragraph.
Return of taxable circulation................................................................................ 711
Shareholders’ personal liability, exceptions................................................... .....238
Shares of, converted.......................................................................................... .....243
Statement of condition...........................................................................................110
Tax on circulation..................................................................................................705
Tax on circulation of converted............................................................................713
Tax on unauthorized circulation.................................................................. 708-710
State courts. (See Comptroller; Suits.)
State, Territory^ or District:
Change of title or location of associations.............................................................209
Conversion of bank organized under authority of laws of...................................243
Interest, national banks not to take, etc., in excess of legal rate in ............. .....422
“ National, ” use of the word in titles.............................................................. .....530
Qualification of directors.................................................................................. .....231
Proceedings to enjoin Comptroller or receiver to be brought in district in
which association is located.......................................................................... .....702
Taxation of circulation of State, etc., associations...................................... 705,715
Taxation of money b y................................................................................... 716,717
Taxation of national banks b y ......................................................................... .....451
Stationery, etc.......................................................................................................... .....108
Status not changed by extension of charter........................................................... .....216
Status of associations organized under the act of 1863 .......................................... .....245
Statutory bad debts defined.................................................................................... .....429
Stock:
Amount of capital, to be stated in organization certificate........................... .....202
Increase of capital............................................................................................. .....226
Of national banks may be held by converted State banks........................... .....243
Par value of....................................................................................................... .....223
Payment and certification of.................................................................................224
Purchased or acquired...................................................................................... .....430
Reduction of capital......................................................................................... .....228
Transfer of shares....................................................................................................223
Stocks, Umted States, exempt from taxation........................................................ .....716
Stolen national-bank notes, redemption o f............................................................ .....417
Subsidiary silver coinage..................................................................................... 756,757
Succession:
Expired associations...............................................................................................217
Penod of, national banks.......................................................................................204
Suits:
Against United States officers or agents................................................................700
Certified copy of organization certificate evidence in ................................... .....704
Circuit and district courts, jurisdiction of............................................212,216, 701
Corporate powers of associations...................................................................... .....204
Creditors’ bill against shareholders.................................................................. .....521
Crimes, jurisdiction, etc. (See Crimes.)
District courts, jurisdiction oit to enjoin Comptroller.................................... .... 701
Enjoining Comptroller or receiver................................................................... .... 518
Forfeiture of charter.......................................................................................... .....526
Proceedings to enjoin Comptroller to be brought, where.............................. .... 702
Sealed certificate of Comptroller competent eviden ce.................................. .... 703
Shareholders’ agent........................................................................................... .... 522
Shareholders’ liability, to enforce................................................................... .... 515
Solicitor of the Treasury to direct and supervise certain................................... 700
Surplus:
Converted State banks with capital of $5,000,000.......................................... .... 238
Creation of.............................................................................................................. 424
Loans, lim it of, measured by capital and............................................................ 425
Surplus and dividends, provisions for surplus and payment of dividends.............. 424
Surrender of bonds. (See Bonds, United States.)
Suspension of business after refusal to pay circulation......................................... .... 509

INDEX TO NATIONAL-BANK ACT, ETO.

251

Paragraph.
Taking unauthorized impressions of tools, penalty for.........................................
744
Tax:
Circulation—
Enforcing payment of................................................................................
448
Exempt from..............................................................................................
706
Failure to make returns............................................................................
447
Of converted State banks..........................................................................
713
Bate and time of payment........................................................................
444
Refunding excess.......................................................................................
449
Secured by Panama Canal bonds.............................................................
303
Semiannual return o f................................................................................
446
Money of all kinds subject to, by States, etc.................................................
717
Notes, State banks, corporation, company, or persons................ .
705-708,710
Notes, State banks, corporation, company, or persons, failure to make
712
returns............................................................. .............................................
Notes, State banks, corporation, company, or persons, semiannual return..
711
Provisions restricted on circulation.................................................................
714
Remission of, on insolvent national banks................................................. 450,715
State taxation of national banks......................................................................
451
Taxation. (See Tax.)
Taxes:
Intemal-revenue, on imports may be paid by certified checks....................
769
Teller. (See Officers.)
Term:
Of office for directors........................................................................................
230
For which charter is issued..............................................................................
204
For which real estate may be held..................................................................
222
Territorial court. (See Comptroller; Redemption; State, etc.)
The national-bank act, authority for title..............................................................
200
Time:
Allowed for transmission of reports of condition............................................
440
Deposits defined...............................................................................................
403
For payment of assessment for impairment of capital...................................
430
For payment of tax on circulation..................................................................
444
In which liquidating banks must deposit lawful money........................... 502,504
315
In which United States bonds may be refunded................................ *........
Title and location, change of, by national banks....................................... 209,211,803
Title of association to be approved by Comptroller of Currency.........................
202
Transfer of bonds................................................................................................... :
306
Association to be notified.................................................................................
308
Record of...........................................................................................................
307
Transfer of shares of capital stock, effect of................................ ; .........................
239
Transfer of shares of stock.......................................................................................
223
Transfers (see Treasurer, United States; Bonds, United States), when void.......
529
Transportation charges for redeemed circulation..................................................
414
Treasurer, United States:
Application to sell bonds to be filed with......................................................
315
Circulation of liquidating and insolvent banks, duty of............................ 505,506
Circulation, tax on, to be paid t o ...,..............................................................
444
Circulation, withdrawal of, provisions for......................................................
314
Deposits of bonds with.....................................................................................
302
Deposit of bonds with, to secure circulation..................................................
323
Deposit of lawful money with, by liquidating bank.....................................
502
Disposition of redemption account..................................................................
416
Enforcing tax on circulation............................................................................
448
Examination of bonds and records, provisions for.............................. 309,310,311
Federal Reserve Board to be furnished with list of applications to sell bonds.
316
fin e for failure to make reports to Comptroller to be retained b y ...............
443
Interest on bonds to be retained by, when................................................. 430,448

252

INDEX TO NATIONAL-BANK ACT, ETC.

Treasurer, United States—Continued.
Paragraph.
Lawful money to redeem circulation of extended banks to be deposited
with................................................................................................................
218
Proceedings on default in making return on circulation subject to d u ty ...
448
Public moneys to be deposited with Assistant Treasurer, Government de
positaries, or............................................................................................... 730, 731
Purchase of property by receiver, approval to be filed with.........................
524
Receiver to pay all money received to...........................................................
515
Redemption—
Fund to be kept with................................................................................
414
Of circulation Jby........................................................................................
414
414
Of circulation in United States notes b y .................................................
Semiannual return to, of circulation subject to duty....................................
446
Signature of, on circulation..............................................................................
324
Tax, excess, refunding......................................................................................
449
Tax on circulation, to be paid to.....................................................................
444
Transfer of bonds in trust for associations to be made to...............................
306
Treasury, extended banks to reimburse, cost of new plates.................................
218
Treasury notes:
Cancellation o f............................................................................................... 753,756
Demand, legal tender.......................................................................................
726
Interest-bearing.................................................................................................
727
Issue of........................................................................................................... 318, 764
Redeemable in gold.......................................................................................1.
750
Tax, exempt from.............................................................................................
. 716
Treasury, United States (see also Treasurer, United States):
Association to reimburse, for cost of redemption of circulation and plates..
414
Currency Bureau in ..........................................................................................
100
Divisions of Issue and Redemption established.............................................
752
Notice to present circulation at.......................................................................
510
Penalty for failure of associations to report, to be paid into...................... 443,446
Redemption account, disposition of................................................................
416
Redemption fund, 5 per cent, in .....................................................................
414
Redemption of circulation at.................................................. 312,414,505,513,514
Trial for violation of interlocking directorate act..................................................
233
Trust companies:
Examinations (member)...................................................................................
527
Trust companies in District of Columbia. (See separate index.)
Trust, purchase of property by receiver to protect...............................................
523
Trustees:
Not personally liable........................................................................................
240
Power of national banks to act as....................................................................
207

INDEX TO NATIONAL-BANK ACT, ETC.

IT.

253

Paragraph.
Unauthorized deposit of public money, by disbursing officer.............................
737
Unauthorized receipt or use of public money by banks, etc...............................
738
Uncurrent notes, issue of, prohibited.....................................................................
431
Uncurrent subsidiary silver, recoinage of..............................................................
757
Undivided profits not considered borrowed money.............................................
429
Unearned dividends prohibited.............................................................................
429
Unfit circulation, redemption of.............................................................................
414
United States (see also Officers of the United States; Crimes, jurisdiction, etc.):
Bonds. (See Bonds.)
Coins are legal tender.................................................................................... 720-724
Courts of, may enjoin proceedings...................................................................
518
Courts, jurisdiction of, not affected.................................................................
212
Debt, deposits to redeem circulation to be reported monthly as..................
416
Deposits in Federal reserve banks...................................................................
615
Deposits. (See Government depositaries.)
Gain by failure to redeem notes by extended banks.....................................
218
Obligations, exempt from taxation..................................................................
716
Obligation of, defined.......................................................................................
739
Securities, penalty for counterfeiting or forging.............................................
740
Suits in which, is a party.................................................................................
700
United States disbursing officers:
Fraudulent notes to be marked by..................................................................
748
Penalty for unauthorized deposit of public money.................................... 737, 738
Withdrawal of public money...........................................................................
730
United States notes:
Are legal tender................................................................................................
725
Circulation of banks redeemable in ................................................................
414
Fraudulent, to be marked...............................................................................
748
Issue of..............................................................................................................
764
Obligations of United States defined..............................................................
739
Penalty for:
Dealing in counterfeit...............................................................................
746
Illegal use or possession of material for printing.....................................
745
Passing counterfeit....................................................................................
743
Pledging, etc........................................................................................ .
432
Taking or having unauthorized impressions of tools, etc.................... 744, 745
Redeemable in gold..........................................................................................
750
Subject to taxation by States, etc...................................................................
717
Unit of value, gold dollar to be standard...............................................................
749
Unpaid dividends not considered borrowed money.............................................
427
Unsigned national bank currency, redemption of................................................
417
Using plates to print notes without authority.......................................................
742
Use of circulation, restricted...................................................................................
428
Use of title “ National ” prohibited........................................................................
530
Usury:
Interest, when not............................................................................................
422
Penalty for........................................................................................................
423

254

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Vacancies, board of directors, filling......................................................................
235
Value of capital stock of converted State banks, par............................................
243
Value of capital stock, par.......................................................................................
223
Vaults for Currency Bureau.....................................................................................
108
Verification of report of condition...........................................................................
441
Vice president (see also Officers):
Bonds, United States, may sign transfer of.....................................................
30(5
Circulation, may sign.................................................................................... 324,337
Election or appointment o f...............................................................................
204
Proxy, not to act as...........................................................................................
229
Violations of provisions of national-bank act, forfeiture of charter for.................
526
Visitatorial powers restricted..................................................................................
528
Visitatorial powers, limitation o f............................................................................
528
Void, illegal preference............................................................................................
529
Voluntary liquidation. (See Liquidation.)
Vote required:
For change of title or location..........................................................................
209
For conversion of State bank............................................................................
243
For increase.......................................................................................................
227
For liquidation.............................................................................................. 204,500
For reduction.....................................................................................................
228
For shareholders’ agent....................................................................................
522
For voluntary liquidation.................................................................................
500
To fix date of election.......................................................................................
236
Voters, qualifications of shareholders at elections..................................................
229

INDEX TO NATIONAL-BANK ACT, ETC.

255

Paragraph.

When receiver may be appointed...........................................................................
520
Where proceedings to enjoin Comptroller must be brought................................
702
Withdrawal:
Bonds, general provisions respecting...........................................................311,414
Circulation, provisions for.............................................................. 312,313,314,414
Deposit and, of public moneys.................................................................... 730,737
Dissenting shareholders....................................................................................
217
Expired associations, bonds of.........................................................................
219
Illegal preference of creditors..........................................................................
529
Liquidating associations, bonds of...................................................................
504
Of reserve from Federal reserve bank.............................................................
409
Reduction of capital.........................................................................................
228
Unearned dividends.........................................................................................
429
Worn-out circulation, destroying and replacing....................................................
339

INDEX TO THE FEDERAL RESERVE ACT.
A.

Acceptance:
Paragraph
Failure of national banks to signify....................................................... 602e, 602f
Of terms of act................................................................................................... 602b
Acceptances, bankers’ ....................................................................................613b, 614
Acceptances rediscounted by Federal reserve banks.................................. 613b, 613c
Accommodation extended to member banks......................................................... 604c
Accounts:
Foreign.............................................................................................................. 614'
With other Federal reserve banks for exchange purposes............................. 614
Acknowledgment of organization certificate of Federal reserve banks................ 604a
Act of March 14,1900, parity provisions reaffirmed..............................................626
Act of May 30, 1908, certain provisions extended, etc..........................................627
Additional national-bank circulation..................................................................... 627
Tax rate changed.............................................................................................. 627a
Additional reserve and central reserve cities........................................................ 611e
Administrators, national banks as.......................................................................... 611k
Advancements extended to member banks........................................................... 604c
Advisory council............................................................................................... 612,612a
Agencies, foreign...................................................................................................... 614
Agent, when bank may act as insurance agent or as broker in procuring loans
on real estate.........................................................................................................613c
Agent, Federal reserve............................................................................................ 604f
Alaska................................................................................................................ 602,619g
Reserve requirements for national banks in ...................................................6l.9g
Aldrich-Vreeland Act, effect on............................................................................. 627
Amending section 5154, United States Revised Statutes..................................... 608
Amendment to section 5202, United States Revised Statutes, liability of
national banks...................................................................................................... 613c
Amount of capital required for Federal reserve banks......................................... 6021
Amount of capital stock required to be subscribed to.......................................... 602c
Amount:
Of Federal reserve bank circulating notes not lim ited..................... - .......... 618b
Of Federal reserve notes that may be issued..................................................616a
Of gold notes that'may be issued to Federal reserve banks.......................... 618c
Of redemption fund required for Federal reserve notes................................ 616d
Of reserve required for Federal reserve notes................................................. 616b
Of reserve required to be held by—
Banks elsewhere than in reserve cities.................................................... 619a
Central reserve city banks........................................................................ 619c
Country banks........................................................................................... 619a
Reserve city banks.................................................................................... 619b
Of United States bonds that may be purchased by Federal reserve banks
from member banks...................................................................................... 618a
That may be loaned on farm lands.,...............................................................624
Annual report of Federal Reserve Board to House of Representatives............... 610g
Application for Federal reserve notes.....................................................................616a
Application for Federal reserve notes subject to action of Federal Reserve
Board..................................................................................................................... 616e
Application for membership after organization of Federal reserve banks........... 605
Appointment of:
Employees of Federal Reserve Board............................................................. 6111
Examiners.............................................................................................. *.........621
Members of Federal Reserve Board............. *.................................................610
257
44326°— S. Doc. 4 1 2 ,6 4 -1 -------17

258

INDEX TO FEDERAL RESERVE ACT.

Appropriation:
Paragraph.
For expenses of organization committee.......................................................... 602n
For expenses of printing Federal reserve notes...............................................616i
Assessments for examiners....................................................................................... 621a
Assessment on Federal reserve banks:
To pay cost of Federal reserve notes................................................................616h
To pay salaries and expenses of board.................................................. 610b, 6111
Assistants to organization committee...................................................................... 602n
Attorneys nor to receive fee or other consideration other than usual fee or salary. 622a
Authority of Reserve Bank Organization Committee............................................ 602a

INDEX TO FEDERAL RESERVE ACT.

259

Bank:
^Paragraph.
Balances, net, to or from to be used in reserve calculation,
- • 619f
Defined.............................................................................................................. 601
Examinations........................................................................... 621-622,625n
Bank examiners:
Appointment o f.................................................................................................621
Gratuities to, prohibited.................................................................................. 622
Loans to, prohibited......................................................................................... 622
Powers of........................................................................................................... 621
Salaries of.......................................................................................................... 621a
Secrecy enjoined of.......................................................................................... 622a
Service to banks and their directors, officers, etc., restricted to official
duties..............................................................................................................622
Bankers’ acceptances..................................................................................... 613b-614
Banks;.
Eligible..................................................................................... 602b, 608, 609-609d
May become national, how.............................................................................. 608
Not in reserve cities. (See Country banks.)
Outside continental United States..................................... #............................619g
Bed pieces for Federal reserve Aotes....... .................................*........................... 616h
Bills of exchange:
Acceptable by member banks......................................................................... 613b
Bought by Federal reserve banks from member banks................................. 614
Foreign............................................................................................................... 614
Limit to liability of national banks not to include........................................ 613c
Open-market operations................................................................................... 614
Rediscounted by Federal reserve banks.............................................. 613a-613c
Bills of State and subdivisions thereof dealt in by Federal reserve banks........... 614
Bills receivable, subject to rediscount............... ..........................................613a-613c
Board, held to mean Federal Reserve Board.........................................................601
Board of directors of Federal reserve bank (see also Federal reserve bank,
directors of).................................................................................................. 604c-604i
Certificate to be made by, when capital is increased or reduced......... 605d, 606
Bond, Federal reserve agent................................................................................... 611i
Bonds, United States:
Dealt in by Federal reserve banks.................................................................. 614
Hypothecation of, by Federal reserve banks.................................................. 614
National banks not required to deposit prior to commencement of business.. 617
Purchase of, by Federal reserve banks........................................................... 618a
Refunding.................................................................................................. 618-618c
To secure Federal reserve bank notes............................................................. 604b
“ Two’s” exchange for 1-year gold notes and 30-year gold bonds................. 618c
Thirty-year 3 per cent gold, without circulating privileges.......................... 618c
In exchange for 1-year 3 per cent Treasury notes.......................................... 618d
Branch:
Federal reserve banks.......................................................................................603
National banks—
Foreign....................................................................................................... 625
In dependencies........................................................................................ 625
By-laws of Federal reserve banks........................................................................... 604b

260

INDEX TO FEDERAL BESERVE ACT.

Paragraph.
Cable tra cers, purchase and sale of, in open market.......................................... 614
CancellaW BM M tifr^reserve notes..................................................................... 616c
Capital, am aH ^H prfred to enable State bank to become member bank........ 609f
Capital stock o^W oeral reserve banks:
Allotment of.............................................................................................. 602c, 604a
Cancellation and redemption of.............................................................. 605e, 606
Dividends...........................................................................................................607
Hypothecation of, prohibited when owned by member bank...................... 605a
Increase and decrease of............................................................................ 605-606
Liability of holders.................................................................................. 602d. 606
Maximum amount permitted to be held by any one individual or corpo
ration.............................................................................................................. 602h
. Minimum amount of, before organization...................................................... 6021
Net earning, apportionment of.......1................................................................ 607
Payment for..................................................................................... 602c, 602g, 609
Shares of $100 each.............................. - ........................................................... 605
Subscriptions to—
After organization of Federal reserve banks............................................ 605b
By banks— .............................................................................. 602c, 604,619g
By public........................................................................................... 602g,602h
By State banks............................................................................. 604,609,609a
By trust companies...................................................................... 604,609,609a
By trust companies in District of Columbia........................... 604,602b, 602c
By United States........................................................................................ 602i
Transfer of....................................................................................... 602h, 602k, 605a
Voting power of, lim ited................................................................................... 602j
Cash reserve required:
Banks elsewhere than in reserve cities............................................................619a
Central reserve city banks................................................................................ 619c
Reserve city banks............................................................................................ 619b
Central reserve cities................................................................................................ 602 m
Cash reserve required........................................................................................ 619c
Number may be increased or decreased.......................................................... 611e
Reserve board to control................................................................................... 611e
Status of............................................................................................................. 602m
Certificate of:
Increase of capital of Federal reserve banks................................................... 605d
Organization of Federal reserve banks............................................................ 604a
Reduction of capital of Federal reserve banks............................................... 606
Certificates of deposit as time deposits................................................................... 619
Chairman of board of directors of Federal reserve banks............................. 604d, 604f
Changing collateral for Federal reserve notes........................................................ 616g
Charter forfeited by national banks not accepting terms of this act.................... 602t
Charter of Federal reserve banks to be for 20 years............................................... 604b
Checks receivable at par by Federal reserve banks, when................................... 616j
Circulating notes of:
Federal reserve banks, issue of......................................................................... 618b
Member banks, retirement of.................................................................... 618,618a
Circulation (see Federal reserve bank notes and Federal reserve notes):
Federal reserve notes.................................................................................. 6i6,616a
Limit to liability of national banks not to include........................................ 613c
Civil service, President may place employees of Federal Reserve Board under.. 6111
Class A directors.............................................................................................. 604d, 604e
Class B directors.............................................................................................. 604d, 604e
Class C directors.............................................................................................. 604d, 604i
Clearing house for Federal reserve banks and member banks.............................. 6161
Collateral for Federal reserve notes......................................................................... 616a
Substitution of........................... ........................................................ .
61^g

INDEX TO FEDERAL RESERVE ACT.

261
Paragraph.

Collection charges................................................ *. *............................................... 616k
Collateral, limit to liability of national banks not to include.............................. 613c
Commercial paper :
Eligible for rediscount...................................................................................... 613a
Foreign............................................................................................................... 614
Purchase and sale of......................................................................................... 614
Security for Federal reserve notes................................................................... 616a
Comptroller of the Currency :
Duties performed under direction of the Secretary of the Treasury........ .... 610h
Duties when Federal reserve districts have been established....................... 604
Examination of member banks........................................................................ 621
Examiners’ salaries, recommended b y ............................................................ 621a
Examiners’ reports to....................................................................................... 621
Expense of examination, assessed b y ............................................................. 621a
Federal reserve notes, issued b y ...................................................................... 611d
Federal reserve notes, unfit for circulation, to be returned to...................... 616c
May permit examiners to disclose information in regard to member banks.. 622a
Member of Federal Reserve Board.................................................................. 610
Member of Reserve Bank Organization Committee....................................... 602
National-bank examiners appointed b y.......................................................... 621
Organization certificate of Federal reserve banks to be filed with................ 604a
Plates, dies, etc., for Federal reserve notes under supervision and control of. 616h
Powers of........................................................................................................... 61Oh
Salary of............................................................................................................. 610
Suits against national banks not complying with terms of this act................ 602f
Congressman not allowed to be member of Federal Reserve Board or officer or
director.................................................................................................................. 604d
Congress, visitatorial powers of............................................................................... 621b
Contracts, powers of Federal reserve banks to make............................................ 604b
Conversion of State banks....................................................................................... 608
Corporate seal, Federal reserve banks.................................................................... 604b
Correspondents, foreign........................................................................................... 614
Council, Federal advisory................................................................................ G12, 612a
Country banks:
Cash reserve required....................................................................................... 619a
Distribution of reserve..................................................................................... 619a
Reserve requirements for................................................................................. 619a
Reserve required to be held with Federal reserve bank............................... 619a
Reserve that may be held with bank in reserve or central reserve city ......... 619a
County bonds, etc., dealt in by Federal reserve banks........................................ 614
Currency act of Mar. 14, 1900, parity provisions reaffirmed.................................626
Currency associations............................................................................................... 627
Customs, Federal reserve notes receivable for....................................................... 616

262

INDEX TO FEDERAL RESERVE ACT.

Paragraph.

Daily report by Federal reserve agent of Federal reserve notes........................... 616a
Definitions................................................................................................................. 601
Demand and time deposits............................................................................... 619
Demand deposits defined........ ............................................................................... 619
Dependencies:
Branches of national banks in .................................................................. .... 625
National banks in ............................................................... . .............................619g
Depositories.............................................................................................................. 615
Deposits:
In Federal reserve banks................................................................... 613,614,615
Reserves against......................................................................................... 616b
In member banks, reserves against.......................................................... 63-9,619f
Limit to liability of national banks not to include...................................; . . 613c
Of Government funds................................................................................ 613,615
Secretary of Treasury to receive deposits of gold coin or gold certificates
tendered by Federal reserve bank or agent................................................616m
Various kinds defined....................................................................................... 619
With Federal reserve agent of Federal reserve notes, gold, etc., by Federal
reserve banks......................................................................................... 616f, 616g
With nonmember banks, limited..................................................................... 619a
Denomination of gold notes issuable to Federal reserve banks............................. 618c
Deputy Federal reserve agent................................................................................. 604f
Description of Federal reserve notes.............................................................. 616c, 616h
Destruction of Federal reserve notes...................................................................... 616c
Dies, etc., for Federal reserve notes....................................................................... 616h
Directors (see Federal reserve banks, directors of):
Branch Federal reserve banks.......................................................................... 603
Liability for violation of this act by national banks...................................... 602f
Not to receive fee or other considerations other than usual fee or salary— 622a
Of Federal reserve banks, suspension or removal of...................................... 611f
Discount rates:
Established........................................................................................................ 614
Increased by tax on deficiency in reserve requirements............................... 611c
Recommendations by council.......................................................................... 612a
Discounts:
By Federal reserve banks................................................................................. 613a
Extended to member banks............................................................................. 604c
Dissolution of:
Federal reserve bank............................................................................... 604b, 607
National member banks.................................................................................... 602f
Distribution of reserve:
Banks elsewhere than in reserve city.............................................................. 619a
Central reserve city, banks in .......................................................................... 619c
Reserve city, banks in ...................................................................................... 619b
District:
Bonds, etc., dealt in by Federal reserve banks.............................................. 614
Certificates showing geographical lines of Federal reserve............................ 604
Held to mean Federal reserve district............................................................. 601
District of Columbia, trust companies in, eligible................................................. 602b
Dividends:
Of Federal reserve banks.................................................................................. 607
'Prohibited when reserve is short..................................................................... 619e
Unpaid, limit to liability of national banks not to indude........................... 613c
Doubtful assets of Federal reserve banks, written off........................................... 611g
Drafts:
Limit to liability to national banks, not to include....................................... 613c
Receivable at par by Federal reserve banks, when....................................... 616J
Rediscounted by Federal reserve banks......................................................... 613a
Drainage, bonds, etc., dealt in by Federal reserve banks.................................... 614
Duties:
Of Federal advisory council............................................................................. 612
Of Reserve Bank Organization Committee........................................ ,T.......... 602

INDEX 10 FEDERAL RESERVE ACT.

263

Paragraph.
Earnings, division of................................................................................................ 607
Election of directors of Class A and Class B .......................................................... 604e
Eligible banks.................................................................................. 602b, 608,609-609d
Employees not to receive fee or other consideration other than usual salary-----622
Employees of Federal reserve banks...................................................................... 604b
Employees of Federal Reserve Board....... . ...........................................................6111
Estimate of reserve requirements........................................................................... 619f
Examiners:
Appointment of................................................................................................. 621
Powers of............................................................................................................621
Qualifications of................................................................................................ 621
Reports of.......................................................................................................... 621
Salaries of.......................................................................................................... 621a
Examinations:
Assessments for..................................................................................................621a
Bank.................................................................................................... 621-622,625
Examiners to make........................................................................................... 621
Expense of......................................................................................................... 621a
Federal reserve banks.......................................................................................621c
Member banks.................. ......................................................................... 621,621b
National banks.................................................................................................. 621
Number to be made.......................................................................................... 621
Of foreign branches of national banks............................................................. 625
Of plates, dies, bed pieces, etc.. of Federal reserve notes............................. 616h
qualifications of examiners..............................................................................621
tate bank and trust companies...................................................................... 621
Exceptions to lim it to liability of national banks.................................................613c
Exchange, account with other Federal reserve banks for purposes of................. 614
Exchange charges............................................................................................616k, 6161
Exchange of certain United States bonds for gold notes...................................... 618d
Executive officers of Federal Reserve Board.........................................................610
Executors, national banks as.................................................................................. 611k
Exempt from taxes except real estate.................................................................... 607a
Exempt from taxes, gold notes issued in exchange for gold bonds...................... 618c
Expenses:
For Federal reserve notes........................................................................616h, 616i
Of examiners..................................................................................................... 621a
Of Federal advisory cou n cil............................................................................612
Of Federal Reserve Board................................................................................ 610b
Exports, acceptances on, eligible as discounts by Federal reserve and member
banks.................. ................................................................................................. 613b
Extension of additional currency act to June 30,1915......................................... 627

I n d e x to f e d e r a l r e se k v e A c t .

Paragraph.
Failure to accept terms of this act................................................................. 602e, 602f
Failure to make report, penalty ........................ ......................................... 609c-609d
Farm lands, loans on................................................................................................ 624
Federal advisory council.................................................................................. 612,612a
Federal reserve agent............................................................................................... 604f
Bond required of............................................................................................... 611i
Daily report on issue and withdrawal of Federal reserve notes.................... 616a
Deposits With, of Federal reserve notes, gold, etc., by Federal reserve
banks............... ..................................................................................... 616f, 616g
Deputy............................................................................................................... 604t
Federal reserve notes issued to Federal reserve banks through.................... 616
Federal reserve notes, applications for, made to............................................ 616a
Gold coin or gold certificates to be received as deposits by Secretary of
Treasury when tendered by Federal reserve bank or agent.................... 616m
Information concerning member banks to be furnished Federal Reserve
Board b y ...................................................... *................................................ 621b
Powers of, second to those of Secretary of Treasury...................................... 610f
S alaiyof............................................................................................................. 604f
Special examination of member banks to be approved b y ............................621b
Federal reserve banks.............................................................................................. 602a
Acceptances, purchase and sale of, in open market.......................................614
Rediscount of.................................................................................... 613b, 613c
Account with other Federal reserve banks.......................................613,614,6161
Advances to, by means of Federal reserve notes............................... * .......... 616
Amount of capital stock to be subscribed to................................................... 602c
Application for Federal reserve notes subject to action of Federal Reserve
Board............................................................................................................... 616e
Bankers’ acceptances, purchase and sale of, in open market........................ 614
Bills of exchange—
Purchase and sale o f.................................................................................. 614
Purchase from member banks................................................................... 614
Bills of State and political subdivision thereof dealt in ................................ 614
Branches............................................................................................................. 603
Foreign connections................................................................................... 614
By-laws............................................................................................................... 604b
Cable transfers, purchase and sale of............................................................... 614
Capital stock of.................................................................................................. 6021
Certificate of organization................................................................................. 604
Charter, term o f................................................................................................. 604b
Checks received at par, when...........................................................................616i
Circulating notes, issue of................................................................................. 618b
Circulating notes, redemption of......................................................................618b
Clearing-house provisions.................................................................................. 6161
Collateral deposited with Federal reserve agent for Federal reserve notes.. 616a
Increasing, to reduce liability for notes................................................... 616f
Substitution of..................... *.................................................................... 616g
Withdrawal o f............................................................................................. 616g
Collection charges..................................................................................... 616k, 6161
Commercial paper—
Purchase and sale o f................................................................................... 614
Rediscount of.....................................................................................613a-613c
Security for Federal reserve notes...........................................616a, 616f, 616g
Contracts, power to make.................................................................................. 604b
Corporate body................................................................................................... 604b
Powers of..................................................................................................... 604b
Council, recommendations by.......................................................................... 612a
Depository, Government........................................................................... 613,615

IfcrbEX T o I'Et)E&A.L RESERVE ACT.

265

Federal reserve banks—Continued.
Deposits—
Paragraph.
Defined and classified................................................................................619
From member banks...........................................................................613,616j
From or in other Federal reserve banks.................................... 613,614,616]
From the United States..................................................................... 613, ol5
Reserves against......................................................................................... 616b
With Federal reserve agent of Federal reserve notes, gold, etc__ 616f, 616g
Directors................................................................................................... 604c-604i
Chairman of (Federal reserve agent)............................................... 604d, 604f
Bond required of.................................................................................611i
Chosen, how............................................................................. 604d, 604e, 604f
Classification of.......................................................................................... 604d
Compensation of......................................................................................... 604g
Duties of.......................................................................... . ......................... 604c
Extension of discount, advancement and accommodations b y ............. 604c
Number and classification of............................................................ * ... 604d
Qualifications of......................................................................................... 604d
Removal of................................................................................................. 611f
Suspension of..............................................................................................611f
Term of.............................................................................................. 604d, 604i
Vacancies.................................................................................................... 604i
Discount rates to be established............................................................. 611c, 614
Dissolution of........................................................................................... 604b, 607
Dividends of......................................................................................................607
Doubtful assets of, to be written off................................................................. 611g
Drafts, received at par, when...........................................................................616j
Earnings, divisions o f....................................................................................... 607
Employees......................................................................................................... 604b
Establishment of, to be officially announced by Secretary of Treasury-----619
Examination of................................................................................................. 621c
Examination of member banks b y .................................................................. 621b
Exchange charges............................................................................................. 616k
Exempt from taxes........................................................................................... 607a
Expense of Federal Reserve Board to be paid b v ..........................................610b
Federal reserve notes. See Federal reserve notes.)
Fiscal agent of the United States.................................................................... 615
Foreign connections..........................................................................................614
Franchise tax.................................................................................................... 607
Gold bond, 30-year 3 per cent without circulating privilege................618c, 618d
Under same general terms as United States threes without circulating
privilege now issued.............................................................................. 618c
Gold coin or gold certificates to be received as deposits by Secretary of
Treasury wnen rendered by Federal reserve bank or agent.................... 616m
Gold loans, made of, and contracted for......................................................... 614
Gold, purchase and sale of...................................................................... 612a, 614
Gold notes, 1-year 3 per cent without circulating privilege................. 618c, 618d
Exempt from taxes.................................................................................... 618c
Government deposits................................................................................. 613,615
Hypothecation of United States bonds for gold loans..............., ................... 614
Individual liability of shareholders................................................................ 602d
Liquidation of............................................................................................ 607, 611h
Loans made of, and contracted for.................................................................. 614
Municipal securities dealt in ............................................................................614
National banks must become shareholders o f............................... 602b, 606e, 6021
Net earnings of, apportionment of................................................................... 607
Notes of (see Federal reserve notes)........................................................ 604b, 611d
Notes of State and political subdivisions thereof dealt in .............................614
Officers and employees..................................................................................... 604b
Officers of, may be removed or suspended......................................................611f
Open-market operations................................................................................... 614
Organization o f................................................................................ 602a, 604a, 604h
Official announcement of, by Secretary of Treasury.............................. 619
Powers of................................ ............................................................ 613-614,604b

266

INDEX TO FEDERAL RESERVE ACT.

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

INDEX TO FEDERAL RESERVE ACT.

267

Federal Reserve Board—Continued.
Paragraph.
Employees of, not in classified service............................................................ 6111
Examinations of Federal reserve banks and member banks..........................611a
Examinations ordered by.......................................................................... 621-621c
Examiners’ salary fixed b y ..............................................................................621a
Expenses of, how paid............................................................................ 610b, 611e
Extension of discounts etc., by directors, subject to orders of...................... 604c
Federal advisory council, expenses to be approved b y ................................ 612
Federal reserve banks may be required to purchase United States bonds
b v . . . . , ................................................................................................. 618a, 618b
Federal reserve notes issued under the supervision o f.................................. 610h
Federal reserve notes issued and retirement regulated by............................ 61 Id
Foreign branches of national banks.................................................................625
Foreign business to be approved b y ............................................................... 614
Governor of........................................................................................................ 610a
Information concerning Federal reserve banks to be furnished to, by Fed
eral reserve agent.......................................................................................... 621b
Issue of Federal reserve notes regulated by...............................................616,616a
Interest on rediscounts to be fixed by............................................................ 611b
Making farm loans............................................................................................ 624
Meetings o f.................................................................................. : ................... 610c
Members of........................................................................................................ 610
Conditions precedent on.................................................................... 610,610d
Oath of office...................................................................................... 610,610d
Qualifications of......................................................................................... 610a
Removal of, by President.........................................................................610
Restriction on, during and after term of office................................ 610,610d
Salaries o f...................................................................................................610
Term of....................................................................................................... 610
National banks to act as trustee, etc., by permission of................................ 611k
Offices................................................................................................................ 610a
Open-market operation operated b y ............................................................... 614
Permission for member banks to secure discounts for nonmember banks
may be granted by........................................................................................ 619d
Powers of.................................................................................................... 611-611e
Powers secondary to those of Secretary of Treasury, when........................... 610f
Power to add to list of cities prohibited from making farm loans................ 624
Purchase of United States bonds by Federal reserve banks on order of........... 618a
Redemption fund for Federal reserve notes to be required by..................... 616d
Rediscounting of paper of Federal reserve banks by other Federal reserve
banks.............................................................................................................. 611b
Report of, to House of Representatives........................................................... 610g
Safeguarding assets of Federal reserve banks b y ............................................. 611i
Special examination of member banks to be approved by...............................621b
Substitution of collateral for Federal reserve notes to be regulated b y ........... 616g
Suits against national banks not complying with terms of this act.................. 602f
Suspension of reserve requirements by............................................................. 611c
Transfer of public stock in Federal reserve banks to be regulated b y ............ 602k
Vacancies.......................................................................................................... 610e
Vice governor.................................................................................................... 610a
Violations of act, of Federal reserve banks, duty of.......................................... 611h
Federal reserve cities....................................................................................... 602,604
Federal reserve banks therein......................................................................... 602a
Federal reserve districts................................................................................... 602,604
Designation by number....................................................................................602
Farm land loans confined to............................................................................ 624
How apportioned.............................................................................................. 602
Increase in number o f...................................................................................... 602
Readjustment o f............................................................................................... 602
Federal reserve notes (obligations of United States):
Acceptable for...................................................................................................616
Application for................................................................................611b, 616a, 616e
Authorization o f................................................................................................616
Cancellation and destruction o f.......................................................................616c
Character o f..............................................................................................616c, 616h
Collateral for......................................................................................................616a
Cost of making, etc.................................................................................. 616h, 616i

268

INDEX TO FEDERAL RESERVE ACT.

Federal reserve notes (obligations of United States)—Continued*
Paragraph.
Daily report of issue ana withdrawal o f...................................... ♦* .................616a
Denominations o f.............................................................................................. 616h
Deposit by bank of issue with Federal reserve agent.................................... 616f
Description o f...........................................................................................616c, 616h
Destruction o f.................................................................................................... 616c
Examination of plates, dies, etc....................................................................... 616h
Expense for making, issue, and redemptoin paid by Federal reserve
banks..................................................................................................... 616h, 616i
Form o f.............................................................................................................. 616h
Held for distribution, where............................................................................. 616h
Identification marks on........................................................................... 616c, 616h
Interest paid to United States on account o f..................................................616e
Issue and retirement of, regulated by board..........................................611d, 616
Liability for, may be reduced.......................................................................... 616f
Lien on assets.................................................................................................... 616e
Paper for............................................................................................................ 616i
Penalty for paying out, by Federal reserve bank, other than bank of issue.. 616c
Plates, dies, paper, etc............................................................................ 616h, 016i
Printing o f................................................................................................ 616h,616i
Purpose o f__ .....................................................................................................-616
Receivable for................................................................................................... 616
Received by Federal reserve bank other than bank of issue............................ 616c
Recommendations concerning, by council.......................................................612a
Redeemed in gold on demand...........................................................................616
Redemption fund............................................................................616c, 616d, 616f
Redemption of...................................................................................616,616c, 616f
Reduction of, liability for................................................................................ 616f
Reissue of notes deposited with Federal reserve agent.................................. 616f
Reserves against...................................................................................... 616b, 616d
Return to bank of issue.....................................................................................616c
Securities for............................................................................................ 616a, 616b
Substitution of collateral for............................................................................ 616g
Supervision o f................................................................................................... 611a
Federal reserve notes (circulating, obligations of Federal reserve banks).............. 604b
For United States bonds purchased of member banks by Federal reserve
banks..................................................................................................... 604b, 618b
For United States bonds with circulation privilege against which no cir
culation is outstanding................................................................. ....... 604b, 618b
Issued and redeemed as national-bank notes........................................ 604b, 618b
Fiscal agent of United States:
Federal reserve banks a s ..................................................................................615
In foreign countries, dependencies.................................................................. 625
Five per cent redemption fund not counted as reserve........................................ 620
Foreign acceptances.................................................................................................614
Foreign agencies of Federal reserve banks................................... ..........................614
Foreign branches of national' banks........................................................................ 625
Foreign correspondents............................................................................................ 614
Forfeiture of charter by national banks for not accepting terms of this act........ 602f
Franchise tax on Federal reserve banks..............................................., ................607

INDEX TO FEDERAL RESERVE ACT.

269

Paragraph.

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

Paragraph.

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

270

INDEX XO FEDERAL BESEBVE ACT.

Paragraph.

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

INDEX TO FEDERAL EESERVE ACT.

Ii.

271

Paragraph.
Lawful money deposits for reduction of liability for Federal reserve notes........ 616b
Liabilities, rights and powers of State banks when member banks.................... 609g
Liabilities incurred under the provisions of this act.............................................613c
Liabilities of national banks................................................................................... 613c
Liability for Federal reserve notes, reduction of...................................................616f
Liability of director of national banks violating this act...................................... 602f
Liability of stockholders:
Of Federal reserve banks.......................................................................... 602d, 606
Of national banks............................................................................................. 623
Lien on assets amount of Federal reserve notes first............................................. 616e
Limitations, none on amount of Federal reserve bank notes............................... 604b
Lim it not placed on amount of Federal reserve bank circulating notes............. 618b
Limit to amount of acceptance on imports and exports....................................... 613b
By Federal reserve banks................................................................................ 613b
By member banks.............................................................................................613b
Limit to amount of gold notes issuable to Federal reserve banks........................ 618c
Limit to amount of public stock in Federal reserve bank held by one individual,
etc......................................................................................................................... 602h
Limit to amount of United States bonds that Federal reserve banks may pur-,
chase from member banks................................................................................... 618a
Limit to maturity of discounts by Federal reserve banks.............................613a, 613b
Liquidating of member banks................................................................................ 605e
Liquidating of Federal reserve banks............................................................. 607,611h
Loans of gold by Federal reserve banks.................................................................614
Loans on farm lands.................................................................................................624
Loans prohibited when reserve is short..................................................................619e
Loans to bank examiners prohibited......................................................................622

272

INDEX 1 0 FEDERAL BESERVE ACT.

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

INDEX TO FEDERAL RESERVE ACT.

273

Paragraph.
Report of condition b y ............................................................................................ 60J)c
Report of earnings and dividends b y ............................................................. 609c
Reserve requirements.........................................................................611m, 619-620
Reserve, withdrawal of, from Federal reserve banks.................................... 619e
Reserves.....................................................................................................619-619f
Against deposits.................................................................................. 619-619f
Balances in Federal reserve banks considered a s...................................619f
Banks in central reserve cities........................... .................................... 619c
Banks in reserve cities.............................................................................. 619b
Banks not in central reserve or reserve cities........................................... 619a
Checking against, in Federal reserve banks............................................ 619e
Net balance due to and from other banks considered in estimating........619f
State banks as................................................................................................... 609
Withdrawal from Federal reserve bank................................................... 609e
Deposits with nonmember banks............................................................. 619d
Examinations o f........................................................................................ 621
Member banks, rights, powers, and liabilities o f .................................. 609g
Stock in Federal reserve banks.............................................................. 602c, 604
605
Transfer of stock in Federal reserve banks............................................ 602k, 605a
Trust companies as........................................................................................... 609
Deposits with nonmember banks. 7.......................................................... 619d
Examinations o f........................................................................................ 621
Withdrawal from Federal reserve bank................................................... 609e
Trust companies in District of Columbia........................................................ 602b
Members, Federal advisory council....................................................................... 612
Minimum amount of capital of Federal reserve banks......................................... 6021
Mints, Federal reserve notes may be deposited in ............................................... 616h
Mortgages on farm lands..........................................................................................624
Municipal securities dealt in by Federal reserve banks.......................................614
44326°— S. Doc. 412,64-1------18

274

INDEX TO FEDERAL RESERVE ACT.

N.
National banking associations:
Paragraph.
Defined.............................................................................................................. 601
Examiners of...................................................................................................... 621
Reserve requirements. ...................................................................................619
Reserve requirements outside continental United States.............................. 619g
National-bank examiners (see also Examiners):
Prohibited from performing other services for banks, etc.............................. 622
Prohibited from receiving loans or gratuities from member banks.................622
National banks (see also Member banks)................................................................ 601
Administrators................................................................................................... 611k
Alaska......................................................................................................... 602,619g
Branches in foreign countries and dependencies....................................... .. 625
Capital stock—
Decrease of......................................................................................... 605d, 606
628
Increase of......................................................... *.............................. 605a, 605d
Charter bonds no longer required.................................................... ................ 617
Circulation—
A ct of May 30, 1908, extended.................................................................. 627
Retirement o f............................................................................................. 618
Tax rate for certain circulating notes changed........................................ 627a
Commencing business, provisions for deposit of United States bonds with
Treasury repealed.......................................................................................... 617
Dependencies.....................................................................................................6l9g
Deposits, time, and interest thereon................................................................ 624
Directors’ lia b ility.. : ............................................................................... ........ 602f
Dissolution for failure to enter system............................................................. 602f
Executors........................................................................................................... 611k
Foreign branches...............................................................................................625
Hypothecation of stock in Federal reserve banks.......................................... 605a
Liability of......................................................................................................... 613c
Loans on farm lands.......................................................................................... 624
Mortgages on farm lands....................................................................................624
Must become member banks................................................................... 602b, 602e
Notes of—
Liability for cost of, unaffected................................................................ 616i
May be retired..................................................................................... 618,618a
Other banks may become................................................................................. 608
Outside continental United States...................................................................619g
Penalty for failure to enter system......................................................... 602e, 602f
Philippine Islands............................................................................................. 619g
Redemption fund for notes not counted as reserve........................................ 620
Refunding bonds........................................................................................618,618a
Registrar of stocks and bonds...........................................................................611k
Required to become member banks....................................................... 602b, 602e
602f
Retirement of circulating notes................................................................ 618,6I8a
State banks may convert to.............................................................................. 608
Stock in Federal reserve bank................................................................ 602c, 604
605
Stockholders, responsibility and liability...............................................602f, 623
Surplus, increase or decrease of....................................................................... 605
Time deposits and interest thereon.................................................................. 624
Transfer of stock in Federal reserve banks............................................ 602k, 605a
Trustees.............................................................................................................. 611k
National currency association..................................................................................627

INDEX TO FEDERAL RESERVE ACT.

275

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

276

INDEX TO FEDERAL RESERVE ACT.

o.
Paragraph.

Obligation of Federal reserve banks to purchase gold notes................................. .618c
Obligations of Federal reserve banks, circulating notes are................................. .618b
Obligations of United States, Federal reserve notes...............................................616
Officers and employees of Federal reserve banks.................................................. .604b •
Officers not to receive fee or other consideration other than usual fee or salary__ _622a
Officers of Federal reserve banks, suspension or removal of................................. 611f
Open-market operations........................................................................................... .614
Recommendations by council.......................................................................... .612a
Organization certificate of Federal reserve banks....................................................604a
Organization committee. (See Reserve Bank Organization Committee.)
Other reserve cities. (See Reserve cities.)

INDEX TO FEDERAL RESERVE ACT.

277

P.
Paragraph.
Panama, reserve requirements, etc., for national banks in .................................. 619g
Paper for Federal reserve notes.............................................................................. 6I61
Parity maintained.................................................................................................... 626
Par, when checks and drafts receivable by Federal reserve banks at................. 616j
Payment of expenses of organization committee.................................................. 602n
Payments of capital stock subscriptions................................................................ 602c
Penalties:
Acceptance of fees, etc., by directors, officers, and employees of member
banks.............................................................................................................. 622a
Divulging information by bank examiners.................................................... 622a
Failure to make report............................................................................ 609c, 609d
Gratuities to bank examiners................................. ........................................ 622
Loans to bank examiners................................................................................. 622
Member banks not national banks for failure to comply with conditions,
etc......................................................................................................... 609c, 609d
National banks failing to comply with provisions of this act.............. 602e, 602f
Paying out Federal reserve notes by Federal reserve banks other than bank
of issue........................................................................................................... 616c
Reserve shortage............................................................................................... 619e
Violations of act by Federal reserve banks............................................. .
611h
Period for which Federal reserve bank charter is issued...................................... 604b
Philippine Islands:
Bank in, may not become member bank. *................................................... 619g
Public funds in United States to be deposited in member banks................615
Reserve requirements for national banks in ................................................... 619g
Plates, dies, etc., for Federal reserve notes........................................................... 616h
Political subdivisions, bonds, etc., dealt in by Federal reserve banks............... 614
Porto Rico, reserve requirements, etc., for national banks in ............................. 619g
Postal savings funds to be deposited in member banks....................................... 615
Powers of:
Examiners......................................................................................................... 621
Federal advisory council.................................................................................. 612a
Federal reserve banks...................................................................... 604b, 613-614
Federal Reserve Board............................................................................. 611-6111
Not to conflict with those of Secretary of Treasury................................ 610f
Reserve Bank Organization Committee.......................................................... 602
State Bank as Member Bank.................. .*..................................................... 609g
President may place Federal Reserve Board employees under civil service... 6111
President of United States, members of Federal Reserve Board appointed
b y ................................................................................................................... 610, 610e
Printing Federal reserve notes............................................................................... 616h
Prohibitions:
Central reserve city banks from making farm loans....................................... 624
Gratuities and loans to bank examiners.......................................................... 622
Member banks limited in amount of deposits with and forbidden to secure
discounts from Federal reserve banks for nonmember banks.................. 619d
Members of Federal Reserve Board, Assistant Secretary of Treasury, and
Comptroller of Currency not to hold office in any member bank......... 610, 610d
National-bank examiners not to perform other services for banks, etc___ 622
Officers and employees, from receiving fee or other consideration other than
usual salary or fee........................................................................................ 622a
Public funds of Philippine Islands, postal savings, or any Government
funds not to be deposited in any bank other than member bank............. 615
Reserve shortage............................................................................................... 619e
Restrictions as to visitatorial powers...............................................................621b
Senators and Representatives not allowed to be members of Federal Reserve
Board or director of Federal reserve bank................................................. 604d
Transacting business by Federal reserve bank until authorized by Comp
troller.............................................................................................................. 604b

278

INDEX TO FEDERAL RESERVE ACT.
Paragraph.

Profits, undivided, lim it to liability of national bank not to include.................613c
Provisions for national banks outside continental United States to become
member banks....................................................................................................... 619g
Public dues, Federal reserve note3 receivable for................................................. 616
Public Federal reserve bank stock................................................................ ........ 602g
Amount of, limited to any one individual or corporation............................. 602h
Liability of holders of.............................................................................. 602d, 602g
Par value of.............................................................................................. (>02g, 605
Payment for.............................................................................................. 602c, 602g
Tax free............................................................................................................. 607a
Transfer o f......................................................................................................... 602h
Voting power, none........................................................................................... 602j
Purchase of:
Bills of exchange from member banks............................................................ 614
Gold notes by Federal reserve banks.............................................................. 618c
United States bonds by Federal reserve banks.............................................. 618a

Q»

Paragraph.

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

IN D E X TO FEDERAL RESERVE ACT.

279

Paragraph.
Rate of taxation on “ additional currency ” ........................................................... 627a
Bates of discount................................................................................... 611b, 611c, 614
Bates of interest on Federal reserve notes............................................................. 616e
Beal estate loans...................................................................................................... 624
Reclamation bonds, etc., dealt in by Federal reserve bank.................................614
Bedemption fund:
In United States Treasury for Federal reserve notes...................616c, 616d, 616f
Not counted as reserve (5 per cent, of national banks)................................. 620
Of Federal reserve notes.................................................................................. 618b
Bedemption of Federal reserve bank circulating notes........................................ 618b
Bediscount by Federal reserve banks:
Acceptances....................................................................................................... 613b
Bills of exchange.............................................................................................. 613a
Bills receivable................................................................................................. 613a
Drafts................................................................................................................. 613a
Notes.................................................................................................................. 613a
Paper discounted by other Federal reserve banks........................................611b
Paper, rediscounted, as collateral for Federal reserve notes......................... 616a
Becommendations by council......................................................................... 612a
Begulations by board.............................................................................. 611b, 613c
Beduction:
Of capital of Federal reserve bank................................................. 605,605d, 606
Of liability for Federal reserve notes............................................................. 616f
Befunding bonds.............................................................................................. 618-618c
Begistrar of stock and bonds, national bank as..................................................... 611k
Begulations:
For Federal reserve notes.................................................................................611d
For transfer of funds and charges therefor among Federal reserve banks-----616k
For transfer of public stock in Federal reserve banks................................... 602k
To be prescribed by organization committee................................................. 602b
Beissue of Federal reserve notes deposited with Federal reserve agent............. 63 6f
Bejection of application for Federal reserve notes................................................616e
Removal or suspension of officer or director of Federal reserve b a n k ................613 f
Reorganization of Federal reserve banks...............................................................611h
Repealing clause, general........................................................................................626
Report of board to House of Representatives........................................................ 61Og
Report of condition by Federal reserve banks, weekly............................. ..........611a
Report of condition by member banks.................................................................. 609r»
Report of earnings and dividends by member banks........................................... 609^
Reports:
Of examination................................................................................................. 621
Of foreign branches of national banks............................................................. 625
Representatives not allowed to become members of Federal Reserve Board or
mrectors of Federal reserve banks............................. , ....................................... 604d
Requiring national banks to become member banks............................................ 602b
Reserve banks held to mean Federal reserve banks............................................. 601
Reserve bank organization committee.................... .............................................. 602
Admission of banks other than national banks....................................... 609,609a
Allots stock of Federal reserve banks to United States................................. 602i
Appropriation for expenses of.......................................................................... 602n
Certificates showing districts to be filed with Comptroller............................604
Designates Federal reserve cities and districts....................................... 602,602a
Exercises powers of chairman of Federal Reserve Board until such is
appointed.................................................................................. 604d, 604e, 604h
General powers of.................................................................................... 602a, 602n
How constituted............................................................................................... 602
Majority a quorum............................................................................................ 602
Offers stock of Federal reserve bank to public.................................. *.......... 602g
Organizes each Federal reserve bank.............................................................. 602a

280

INDEX TO FEDERAL RESERVE ACT.
Paragraph.

Reserve cities............................................................................................................ 602m
Cash reserve required........................................................................................619b
Distribution of reserve...................................................................................... 619b
Federal Reserve Board to control.................................................................... 611e
Number may be increased or decreased..........................................................611e
Reserve requirements....................................................................................... 619b
Reserve that may be held with, by banks elsewhere than in reserve cities. 619a
Reserve districts. (See Federal reserve districts.)
Reserve requirements of Federal reserve banks:
Against deposits................................................................................................. 616b
Against Federal reserve notes.................................................................616b, 616d
Suspension of, by board.................................................................................... 611c
Tax on deficiency in ......................................................................................... 611c
Reserve requirements of member banks...........................................................619-619f
Banks in central reserve cities.........................................................................619c
Banks in reserve cities.......................................... ........................................... 619b
Banks nothin central reserve or reserve cities.................................................619a
Country banks................................................................................................... 619a
Central reserve cities.........................................................................................619c
Estimate of.........................................................................................................619f
Redemption fund not counted as reserve.........................................................620
Recommendations by council.......................................................................... 612a
Reserve Board may permit member banks to carry larger proportion of reserve
with Federal reserve banks............................... 1.................................................611m
Reserve cities other than central.................... ................................................619b
To be held with Federal reserve banks...........................................................619d
When effective.................................................................................................. 619
Reserve:
That may be held with member banks................................... *............. 619a, 619b
Withdrawal of, from Federal reserve banks.................................................... 619e
Reserves., tax on deficiency in ................................................................................ 611c
Increase rates of interest and discount............................................................ 611c
Restriction, visitatorial powers lim ited.................................................................. 621b
Retirement of:
Federal reserve notes........................................................................................ 611d
National-bank notes................................................................................... 618,618a
Revenue bonds of State or political subdivisions thereof dealt in by Federal
reserve banks.........................................................................................................614
Rights of State bank when member bank.............................................................. 609f

INDEX TO FEDERAL RESERVE ACT.

281

S.
Paragraph.
Safeguarding assets of Federal reserve banks........................................................ 611i
Salaries:
Of examiners..................................................................................................... 621a
Of Federal Reserve Board' employees............................................................. 6111
Of members of Federal Reserve Board........................................................... 610
Salary:
Director Federal reserve bank......................................................................... 6G4g
Federal reserve agent....................................................................................... 604f
Savings accounts as time deposits.......................................................................... 619
Seal of Federal reserve bank................................................................................... 604b
Secretary of Agriculture, member of Reserve Bank Organization Committee... 602
Secretary of Treasury:
.Amount of redemption fund for Federal reserve notes determined b y ........616d
Assistant, restrictions on, subject to term...................................................... 610
Circulating notes of Federal reserve banks, form to be prescribed b y ......... 618b
Chairman of Federal Reserve Board............................................................... 610c
Deposit of Government funds upon direction of..........................................615
Deposit of gold coin or certificates to be received when tendered by Fed
eral reserve bank or agent............................................................................ 616m
Earnings from Federal reserve banks to be used under regulations pre
scribed b y ...................................................................................................... 607
Examiners1appointment to be approved b y .................................................621
Gold notes and bonds issued in exchange for certain United States bonds
b y ..........................................................................................................618c, 618d
Maintaining of parity....................................................................................... 626
Member of Federal Reserve Board.................................................................. 610
Member of Reserve Bank Organization Committee....................................... 602
Payment of expenses of Organization Committee to be approved b y .......... 602n
Plates, dies, etc., for Federal reserve notes engraved by direction o f..........616h
Powers heretofore vested in, unchanged......................................................... 610f
Redemption fund for Federal reserve notes controlled b y ............................616c
Redemption fund required b y ........................................................................ 6J5
Strengthening gold reserves............................................................................. 626
Section 5154, United States Revised Statutes, amended..................................... 608
Section 5202, United States Revised Statutes, amended..................................... 613c
Securities:
Dealt in by Federal reserve banks.................................................................. 614
Purchase and sale of, recommended by council............................................ 612a
Security?
For Federal reserve notes........................................................................ 616a, 616b
For gold transactions........................................................................................ 614
Senate, members of Federal Reserve Board to be confirmed b y ......................... 610
Senators and Representatives not allowed to be members of Federal Reserve
Board or officers or (jtirectors of Federal reserve banks..................................... 604d
Shareholders of Federal reserve banks, liability of..................................... 602d, 606
Short title, “ Federal Reserve A ct” ....................................................................... 600
Special examination of foreign branches of national banks................................. 625
State banks as member banks.................................................................. 601,609,609d
Amount capital required to become member bank...................................... 609f
Deposits with nonmember banks.................................................................... 619d
Examinations of................................................................................................ 621
Requirements precedent.........................................................................- ___ 609a
Requirements subsequent...................................................................... 609b, 609c
Withdrawal from membership in Federal reserve bank............................... 609e
Subscription to stock............................................................................................... 609
Surrender of privileges.................................................................................... 609d

282

INDEX TO FEDERAL RESERVE ACT.
Paragraph.

State banks may become national banks......................... ..................................... 608
State revenue bonds, warrants, etc., dealt in by Federal reserve banks............ 614
Statement of condition of Federal reserve banks, weekly.................................... 611a
Strengthening gold reserves of the United States.................................................. 626
Stock of Federal reserve banks. (See Capital stock.)
Stockholders of Federal reserve banks, liability of...................................... 602d, 606
Stockholders of national banks, responsibility and liability o f................... 602f, 623
Subscription to capital stock of Federal reserve banks:
After organization of Federal reserve banks................................................... 605b
B y banks................................................................................................... 602c, 604
By public........................................................................................................... 602g
By State banks.................................................................................... 604,609,609a
By trust companies............................................................................. C04,609,609a
By trust companies in the District of Columbia................................... 602c, 604
By United States............................................................................................... 602i
Substitution of collateral for Federal reserve notes............................................... 616g
Sub treasury, Federal reserve notes may be deposited in ..................................... 616n
Succession of Federal reserve banks....................................................................... 604b
Suits against national banks not complying with terms of this act..................... 602f
Suits by or against Federal reserve banks.............................................................. 604b
Supervision of:
Federal reserve banks by board....................................................................... 611j
Federal reserve notes........................................................................................ 611d
Surplus funds of Federal reserve banks.................................................................. 607
Free from taxation............................................................................................. 607a
On dissolution or liquidation............................................................................ 607
Suspension:
Of Federal reserve banks.................................................................................. 611h
Of reserve requirements by Federal Reserve Board...................................... 611c
Or removal of officers or directors of Federal reserve banks..........................611f

IN D E X TO FEDERAL RESERVE A C T .

283

T.
Taxes:
Paragraph.
Federal reserve banks free from, except on real estate................................. 607a
Federal reserve notes receivable for................................................................ 616
For paying out Federal reserve notes by bank other than bank of issue___ 616c
Franchise, on Federal reserve banks.............................................................. 607
Gold notes, 1 year, 3 per cent, without circulation privilege, free from___ 618c
Income on capital stock and surplus of Federal reserve banks free from ... 607a
On deficiency in reserve requirements........................................................... 611c’
Rates of, for certain circulating notes of national banks, changed............... 627a
Term of office for directors of Federal reserve banks.................................... 604d, 604i
Time deposits defined............................................................................................. 619
Time deposits in national banks............................................................................. 624
Title “ Federal reserve act” .................................................................................... 600
Transfer of Federal reserve stock......................................................... 602h, 602k, 605a
Transfer of national bank stock, effect of, on liability of stockholder.................623
Treasurer of United States:
Application to, for retirement of circulating notes by member banks.. 618,618a
Expenses of organization committee payable b y ........................................... 602n
Federal reserve notes received b y ................................................................... 616c
Quarterly report to Federal Reserve Board of applications to sell bonds... 618a
aFederal reserve notes redeemable at............................................................... 616
Federal reserve notes may be deposited in .................................................... 616h
Treasury gold notes issuable to Federal reserve banks in exchange for certain
United States bon ds.................................................................................. 618c, 618d
Trust companies:
As member banks. (See State banks as member banks)....... 601,602b, 608,609d
In District of Columbia.................................................................................... 602b
(Member) examinations.............................................................................. v . 621
Withdrawal from membership in Federal reserve bank............................... 609e
Trustees, national banks as................. i .................................................................. 611k

284

IN D E X TO FEDERAL RESERVE A C T .

U.
United States:

Paragraph.

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

INDEX TO FEDERAL RESERVE ACT.

285

Y.
Paragraph.

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

Paragraph.

Warrants of State or political subdivisions thereof dealt in by Federal reserve
banks..................................................................................................................... 614
Weekly statement of condition by Federal reserve banks............................... 611a
Withdrawal from membership in Federal reserve bank by State bank or trust
com pany.............................................................................................................. 609e
Withdrawal of:
Collateral for Federal reserve notes................................................................. 616g
Of reserve from Federal reserve banks...........................................................G19e
Worthless assets of Federal reserve banks to be written off..................................611g

INDEX TO SECTIONS OF REVISED STATUTES.
Section.

32 4
32 5
32 6
32 7
32 8
32 9
33 0
33 1
33 2
33 3
380..........
736..........
88 4
88 5
3408.........
341 1
341 2
341 3
341 4
341 5
341 6
341 7
358 3
358 4
358 5
358 6
358 7
358 8
358 9
359 0
3620.........
364 0
364 1
364 2
364 3
.
364 4
.
364 5
364 6
.
364 7
.
364 8
.
364 9
3701........

«e .

11
11
12
12
12
12
13
13
13
13
159
160
160
160
160
160
161
161
161
162
162
162
163
164
164
164
164
164
165
165
166
41
41
41
41
41
41
41
41
41
41
43

Section.

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

Page.

Section.

66
66
22
22
22
23
31
31
31
32
32
33
33
33
34
34
38
39
39
39
39
40
40
42
43
43
50
50
50
51
52
52
52
53
53
53
53
58
58
59
59
60

286

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

Page.

61
61
62
62
62
62
62
62
62
62
63
63
64
64
65
65
65
72
75
75
80
81
81
81
81
81
82
82
82
83
84
84
84
85
85

88
88
89
89
90

Section.

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

Page.

91
91
91
92

02
95
95
96
96
96
97
97
97
98
98
98
99
99
99
99

100
100
101
101
105
106
107
107
107
169
170
170
170
171
172
172
172
172
168
169

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

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