Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1863-03-04
Passage ofthe National Currency Bill

nv 40 'N0h VI htlltHtUlhllNeS on lhe
goth passed without amendment the bill
from the Senate to establish ~nationa!
currency 1t is therefore law, as there
Is no doubt that it will receive the sigma
ture Of the president, We subjoin y syn>
opsis OF its leading provisions
Banks are 10 be organized by the sub
scripiIUn OF stock IN shares OF 500 each.
Stocf holders ure allowed to vote by proxy,
under properly regarded restrictions. II
bank Of issue be contemplated, then
bonds of the United States must be de-
posted IN the treasury, tor which the gov.
ernment VIII furnish notes for the bank to
sign, cIrGu,ate and redeem as its own, to
the amount Of ninety per cent. Of The
bonds deposited. No notes will be fur,
nished OF less amount than IS, and no
other notes may be issued by the bank.
| These notes, during the suspension of
specie payments, are TO be a legal tender
for all debts except public dues, by and Ia
all persons, except the banks issuing them,
! The banks must redeem them i'll lawfdl
money of the United States, and for this
purpose are required to keep on hand an
amount equivalent to twenty five per cent
Of the amount of notes they may have in
circulation, and should this redemption
fund fall below this twenty-five per cent. E.
they are forbidden TO issue any more notes
uaul the deficiency il made good
Should the bonds OF the United States,
deposited in the Treasury as security for
the notes furnished to the banks for cir
culatou, fall teiow par, and continue sc
for a specified time, the Danks are requir-
ed to deposit additional bonds. The gov.
erument Will appoint a special agent to
take charge Of the affairs of any associa-
ton that tails To- redeem ITS issues, and
will proceed TO redeem its its issues, aud
will proceed 10 redeem the notes Of such
association at the public Treasury, retain.
ing and selling the bonds 10 pay for the
same.
Banks are forbidden from paying out
uncurrent or deprecated currency over
their counters; from specializing in real
estate; from loaning extensively TO theiI
I own stockholders; from paying any divi
deEdS upon profits, except all bad aud
! doubtful debts are first deducted from
such profits from pledging or depositng
}
: due TO Or advances received from other
banks and from lOaning to their own OF,
| ticers, directors and stockholders, upon
terms more favorable than those eXacted
| from Strangers.
Officers, directors and stockholders are
| forbidden from becoming indebted to
their own banks beyond Il certain pre-,
scrbed amount, in defined proportion IL
| he stock owned by them anG they are
orbidden to sell or transfer any stock
owned by them while directly or indirect.
~ indebted to their tank.
Banks are required periodically to pub.
! lish statement of their condition, made
under oath; to keep publicly posted, for
| the information of all who may be inter.
ested a list OF the names and residences OF
their officers, directors and stockholders,
and of the amount of stock owned by each
and a periodical examination into the con
ditiOn of heir affairs is TO be made by a
person appointed 10y the government.
Payments, transfers, assignments, mort.
cages, deposits, o. any acts prejGdlcial 10
creditors, dane IN con emp,ation of insol
vency, a!e declared void. Directors are
required to DO sworn officers and acting
under oath.
Ample provisions protect associations in
the exercises Of all customary powers ana
privileges pertaining to legitimate bank
ing. Their old aud worn or mutlated
notes are constantly renewed by govern.
ment without cost. Interest upon bonds
deposited by the banks as security for the
circulation furnished is to be paid 10
them semi,annuaIly, in gold the known
and willful violation OF any provision by
which the banks are 10 be governed is
punished by forfeiture of the charter,
and ample penal provisions protect them
from injury, by prescribing punishment
for theft, counterlciting, forgery and other
wrongs committed against them,