Cedar Falls gazette. [volume] (Cedar Falls, Iowa) 1860-1895, 1862-01-03
National Banking Law.
Especial to the Chicago Tribune.]

The following is brief synopsis of the act
to authorize national currency, secured by
hypothecation of United States 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.
1t provides first for United States Bank
department in the Treasury building, with a
Bank Comptroller to be appointed by tho
President and Senate, with a salary of 81, 900,
to have general charge and supervision over
all banking operations under the act.
1t provides for issuing circulating notes in
the similitudc of bank notes, to be counter.
signed and registered in the Bank Department
to be stamped on their face Secured by q
pledge of United States Stocks, and receiva.
bic for all dues to and from the United States
except duties on imports, and made legal ten.
der for those purposes"
All existing banks in all States and Terri.
tories of the United States may elect or not
to avail themselves of the benefits of this ma.
tional currency on complying with the pro.
visions of the act.
New banks may be formed by any number
of persons under its provisions, with capital
Of$lOO, 900 or more, to circulate this currency
and carry on general banking business in
any part of the United States.
All banks issuing national currency are re.
quired to keep constantly on hand twenty.
five per cent. of their outstanding circulating
notes in specie to secure the prompt redemp.
ton of the same.
Stockholders are 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 sue and be sued in all courts, and
may make all bylaws necessary to carry on
their business. ... ...
Banks under the net are to make quarterly
reports to the Bank Comptroller, who is an.
nually to report to Congress.
If banks fail to redeem their bills and be-
come insolvent, the securities in the hands Of
the Bank Comptroller may be sold at public
auction and the bil-holdcrs first paid.
Insnlvent banks are to have Receiver ap.
pointed, and be wound up by order Of the
court.
Frauds and counterfeiting arc carefully
guarded against. This bill will, the Commit.
tee believe, create large demand for United
States Stocks to be issued for banking pur.
pVbcS. liz OIlIS lSSueu vi u uy pOtNcCdliOJ
Of these stocks will have the faith of the Gov.
vernment pledged to that extent for their re.
demption.
These bills are to be receivable for taxes
and all other public dues to the Government
and for all salaries, and for all other debts
and demands due from the United States foy
services rendered, and for SUPPLIES and ma.
terials furnished. The banks issuing this
national currency arc made liable for its re.
demption, and stockholders arc made liable
for it.
The bill.holders have as security: First
the United States Stock deposited with the
Bank Comptroller; second, the liability o.
the bank issuing bills; third the personal Ii
ability of the stockholders Of the bank to ar
amount equal to their stock; and it is thus
thought to constitute very safe and secure
currency for circulation among the people, t.
pay the army, and all other extraordinary
expenses of the war.