Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1861-12-30
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The New Bank Bill.

The following is a brief synopsis Of the
act to authorize national currency secured
by the hypothecation of 0. s. stocks, and to
provide for the circulation and redemption
thereof prepared by the Committee of Ways
and Means, and to be introduced into the
House hereafter:
1t provides for United States Bank De-
partment in the Treasury building, with a
Bank Comptroller, appointed by the Presi-
dent and Senate, with salary Of FIVE thou
sand dollars, to have q general charge and
supervision over all banking operations un-
der the act.
1t provides for the issue of circulating
notes in the similitude Of bank notes, to be
countersigned and registered in the Bank
Department, to be stamped on their face,
secured by pledge oil United States stocks,
and receivable for all dues to and from the
United States, except duties on imports, and
made legal tenders for these purposes. All
existing banks in all the States and Terrific.
ries of the United States may elect or not to
avail themselves of the benefit of the national
currency, on complying with the provisions
of the act.
New banks may be formed by any number
of persons under its provisions, with capitals
of one hundred thousand dollars or more, to
circulate this currency and carry on gener.
al banking business in any part of the Uni
ted States. All banks Issuing the national
currency are required to keep constantly on
hand % per cent. Of their outstanding circu
lating notes in specie to secure the prompt
\ pafrv oN bra
made individually liable for the debts of the
bank to the amount Of their stock. Banks
organized under this act are to have a seal,
may create succession by their name, may
sue and be sued in all courts, and may make
all bylaws necessary to carry on their bust
ness. Banks under this act are to make
quarterly reports to the bank comptroller,
who is annually to report to Congress. If
the banks fail TO redeem their bills, and be-
come insolvent, the securities in the hands
of the bank comptrollers may be sold at pub
lie auction, and the bill holder first paid. -
Tnsolvent banks are TO have receivers ap-
pointed, and be wound up by order of the
Court.
Frauds and eounterieiting are guarded
against. This bill, the Committee believe,
will create a large demand for United
States stocks to be used for banking pur-
poses. The bills issued on a hypothecation
of these stocks will have the faith of Gov
ernment pledged to that extent for their re-
demptiou. These bills are to be receivable
for ell salaries and all other debts and de-
mands due from the United States for servi.
ces rendered and for supplies and material
furnished. The banks issuing this national
currency are made liable for its redemption,
and the stockholders are liable for it.
The bill holder ''has security" first, of the
United States stocks deposited with the
bank Comptroller. Second, the liability of
the bank issuing the bills, and third, to the
personal liabilities of the stockholders of the
banks to an amount equal to their stock,
and it is thought to constitute q very safe
and secure currency for circulation among
the people to pay the army and all the other
extraordinary expenses of the war.