The Washington union., 1858-01-31
BANKS IN rHE DISTRICT OF COLUMBIA

condition of the corporations or associations acting
banks Of deposte, discount and issue In the District
OF Columbia, and the authority under which said cor
porations associations assume to transact the bns
Of banking; also to Inquire whether any, and
what further legislation is necessary to regulate and
control banks of deposita circulation, and issne In the
District Of Columbia presented january 2s, 1858.
In pursuance of the power conferred upon them your
committee addressed the following circular to the several
corporations associations carrying business In the
District Of Colufba as banks Of ssue, to witt the trus
tees Of the Bank of the Metropolis Bank of Washington
Patriotic Bank Farmers and Mechanics Bank of George
town. and the Bank of Commerce OF Georgetown
f SENATE CuAxBrR December 20, 1857.
sm have been Instructed by the select committee Of the Senate
appointed the condition Of the corporations
acting ~ banks dcposite dconn and issue In tho District Of Co
lumbs request that will arDish early posi-
e full statement q Tho 'Fs E s @ Ssara p sS1sS hs e
sans with full compste of debtors The amounts due
how ~ srcsecared ana other information which
consider proper aud necessary to Just appreciation Of the
W. Very respectfully, your obedicn. servant ft' 'i
JOHN sIIDETI. Chairman.
The circular was sent to the astnaned Institution
under the impression that it In the same
category the four Others receiving Its title arid cset
cisng its powers derivayey from special act of ncor
poration 1t appears however, that the Bank of Com
erce organized in 1852 by association Of indivd
uals claiming peculiar immunitics privileges but
forming partnership for the transaction Of banking bu
siness under other obligations restrictions than
those resulting from the general law regulating
IN District COLUMBIA and there
fore not subject to the supervision of Congress In the adj
mnisatlon of their affairs If the partners have viola
ted tho law, Dis Id the opnlon Of youf tofittte they
have by issuing notes for circulation they only
nabe for such violation to the ordinary judicial tribunals
The president, however furnished statement Of the
don Of the bank, which will be incorporated in the gen
eral statement of the affairs Of all the banks Of ISSUE for
the purpose of presenting synoptc view of the extent
and character Of their operations. To understand the
present condition and rights the other associations it
necessary to present brief history Of their origin of
the several acts Of Congress amending extending their
charters and providing for the liquidation Of their affairs
The Bank Of Washington was incorporated February
Is, 1911 the Farmers and Mechanics Bank Patriotic
Bank. and Bank Of the Metropolis, March g. 1917 By
the act of March q 1921 the charters Of all these banks
extended to March g. 1886 and by act of February
3 1885, they were further extended and limited to octo
Der /, 1886; and again, July O. 1885, extended to
July A. 1898 on May 81 1888, they extended to
July A. 1910 on July g. 1910, they further
nued to July d. 1844 BY this act Congress adopted the
policy of iqudatng all the Incorporated banks in the
District of Columbia The country then slowly
covering from the disastrous consequences of the general
suspension of 1897 and the mis<hievous effects of de-
based currency felt and appreciated by all classes Of
the community As the act of july 3, lS40 seeifs to
have escaped the attention of the courts and ursconsu
whose judgments and opinions have been invoked to
tain the present action of the banks originally deriving
their charters from Congress- it may be well to give its
provisions in full 1t is to be found In the 9th volume
Of Brown & Littlc's edition of Statutes-at-Iarge,
page 802. Why it was placed among the private
statutes, when every other act relating to bank
banks in the District of Columbia has been classed
with the public acts, is not the province of your
committee to decide The failure of the trustees and
counseors of the banks to take any notice of it. in the
various arguments they have adduced to sustain the le
gaity of their operations since July A. 1874 might per-
haps warrant the suspicion that this deviation from the
ordinary classification not accidental 1t is entitled
San act to continue the corporate existence of certain
banks in the District of Columbia for certain purposes
1t declares that the provisions, restrictions and enact
40. g ,t t,fr IL or i
AN act to extend the charter Of the Union Bank Of
Georgetown, in the District of Columbia be- and the
same hereby extended to the Farmers and Mechanics
Bank Of Georgetown the Bank of the Metropolis the Pa
triotc Bank of Washington, and the Bank of Washing
ton Iroridtd That whenever in the original act the
LIST of July, 1885, occurs, it shall be construed to
mean the 4th Of july ls40 and whenever the ls july
1872, occurs it shall be construed to the 4h July
lS44." fH
The preamble states the motives and object of the
law is in these words "Whereas it appears that an
extension Of the charter Of the Union Bank of George
town beyond lst day of july 1885, together with some
amendment thereof necessary to enable the said copo
ration the better to close its concerns redeem its oa
ons and collect it's debts and the extension and amend
men aforesaid have been asked by the said corporation
for the purposes above specified and for none other
The third section provides for meeting of the stock
holders who may elect trustee trustees not exceeding
three to whom shall be granted until July l. 1s42,
Uuly 4, 1874 the management of the of the
bank as fully and with the limitations together
with Others Hereinafter to be named then given
to the president and directors of said corporation If
trustees be elected the president and directors shall ap
point commissioner to transfer to the trustees all the
property Of the corporation upon the condition. first OF
dischrgng all the debts due from said corporation and
after the satisfaction of this trust upon such other trusts
and conditions their chartera as therein
amended they may fit The 4th section provides that
the said corporation shall not ncr July 1888, Juy A.
l840 issue reissue any bills notes checks payable
bearer issue certificates of deposc payable to bearer
receive any money other property from any other
corporation and from any person other than of its
stockholders deposte and under obligation return
III shall the said corporation at any time after the
lst of July, 1885, receive enter into any oblga
tons liabilities other than such deeds assignments as
may be necessary to convey away absolutely tho prop
crty real personal Of the said bank other than the
renewal from time to time of existing debts due said
poation the receipt of partial payments and the ta
king of such obligations, additional assurances new
liens sureties may be necessary and proper
for securing the collection of debts due to the said bank
on the first of july eighteen hundred and thirty-eight
and for enforcing the performance of obligations created
on or before the day and year last aforesaid.
The act then goes to provide remedies for recovery
OF debts due to corporation The sth section declares
that unless the president and directors for the time
being, OF the sd corporation shall behalf Of the
and in virtue of authority from major
ity in interest and number Of them file their declaration
in writing in the office of the Secretary of the Treasury
within six months from the date of the act asserting
and accepting the extension of the charter thereby grant
ed, under the terms, conditions and limitations con-
taned in the act the corporation shall forfeit all right to
extension of the charter BY the annual letter from
the Secretary of the Treasury it appears that the Bank
Of the Metropolis Bank of Washington Patriotic Bank
Of Washington, and Farmers and Mechanics Bank of
Georgetown severally fled before the expiration of the
six months limited by the act, the certificate Of the
fc,,f IA.