Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1863-03-26
THE NEW BANKINg Acr

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The Washington Chronicle gives The
following synopsis Of the Barking Act.
recently passed by Congress:
Banks are to be organised bv the
subscription Of stock in shares Of s1oo
each. Stockholders are entitled to one
vote for every share. and are allowed
to vote by proxy, under properly guard
ed restriction. II bank Of issue be
contemplated. which is by no means a
natural consequence of the bill, then
bonds Of the United States must be de-
posted in the Treasury, for which the
Government will furnish notes for the
bank to sign, circulate and redeem as
its own, 10 the amount OF 90 per cent.
OF the bonds deposited. No notes will
be furnished of less amount than IS,
and no other notes may be issued BY
the bank.
These notes during the suspension of
specie payment, are to be a legal ten
der for all debts except public dues, by
and TO all persons, except to the banks
issuing them. The banks must redeem
them IN lawful money OF The United
States. and for this purpose are required
to keep on hand an amount of eauiva-
lent to 25 per cent. of the amount Of
notes they have in circulation, and
should their redemption fund fall below
25 per cent, they are forbidden to is
sue any more notes until the deficiency
is made good.
Should the bonds Of the United
States, deposited in the Treasury as Sc
curity for the notes furnished to the
banks for circulation fall below par,
and continue so for specified period,
the banks are required to deposit addi-
tional bonds. The Government will
appoint special agent to take charge
OF the affairs Of any association that
fails to redeem the notes of such asso-
Citations at the public Treasury. retain
ing and selling the bonds deposited to
pay for the same.
Banks are forbidden from paying out
uncurrent or deprecated money over
their counters, from specializing in real
estate. from loaning extensively to their
own stockholders; from paying any
dividends upon profits, except all bad
and doubtful debts are first deducted
from such profits; from pledging or de-
posting their own funds as security
for any debts due to or advances re-
ceived from other banks; and from
loaning their own officers, directors and
stockholders, upon terms more favor
able than those exacted from strangers.
Officers, directors and stockholders
are forbidden from becoming indebted
to their own banks beyond certain
prescribed amount, in defined propor-
ton to stock owned by them; and they
are forbidden to sell or transfer any
stock owned by them while directly or
indirectly indebted to their bank.
Banks are required periodically to
publish a statement of their condition
made under oath; to keep publicly post
ed, for the information Of all who may
be interested, list Of names and res
idence Of their officers, directors and
stockholders, and Of the amount of
stock owned by each; and periodical
examination into the condition of their
affairs is to be made by a person ap-
pointed by the Government.
Payments, transfers, assignments,
mortgages, deposits, or any act preju-
dicial to creditors done in contempla-
tion of insolvency. are declared void.
Directors are required to be sworn off.
ers, and acting under oath.
Ample provisions protect association
in the exercise OF all customary pow
ers and privileges pertaining to legiti-
mate banking. Their old and worn or
mutilated notes are constantly renewed
by Government without cost. Interest
without bonds deposited by the banks
as security for the circulation furnished,
is to be paid to them semi-annually, in
gold; the known and willful violation
Of any provision by which the banks
are to be governed is punished by for
feiture Of the charter, and ample penal
provision protect them from injury by
prescribing punishment for theft, coun-
terfeiting, forgery, and other wrongs
committed against them.