Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1863-02-28
ABsrEAor orrHn NATIONAL BANK.

We copy the following abstract of the
national banking bill from the Washington
Republican. Necessity compels Congress
to draw upon the credit of the Government
to the enormous amount of thirteen hundred
millions Of dollars, Nine hundred millions
of dollars of this is to be in the shape of six
per cent bonds, payable, probably, in the
year 1908. This banking bill proposes to
make this immense mass of Government
stock the foundation upon which our nation
al currency shall rest, as explained below,
instead of being mere debt, heavy, inert
burden. To make it the basis of our none
tary system will render it an active and
efficient power instead ofa burden, stay
and support. 1t will give to the national
debt a compensating power, causing 1t to
be at once source of strength and bond
of national unity.
ABSTRACT.
Banks arc to be organized by the subscrip-
tion of stock in shares of 500 each. Stock
holders are entitled to one vote for every
share, and are allowed to vote by proxy,
under properly guarded restrictions. IL
bank of issue be contemplated, which is by
no means q natural consequence OF the Dill,
then bonds of the United States must be
deposited in the Treasury, for which the
Government will furnish notes for the bank
to sign, circulate and redeem as its own, to
the amount of 90 per cent, of the bonds
deposited. No notes will be furnished of
.ess amount than S5, and no other notes may
be issued by the bank.
These notes, during the suspension OF
specie payments, are to be legal tender
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 equivalent to s5 per cent, of the
amonnt of notes they have in circulation,
and should this redemption fund fall below
20 per cent, they are forbidden to issue any
more notes until the deficiency is made
good.
Should the bonds of the United States,
deposited in the Treasury as security for the
notes furnished to the banks for circulation,
fall below par, and continue so for specified
period, the banks are required to deposit
additional bonds. The Government will
appoint a special agent to take charge OF
the affairs of any association that falls to
redeem its issues, and will proceed to redeem
the notes of such association at the public
Treasury, retaining and selling the bonds
deposited to pay for the same.
Banks are forbidden from paying ou.
uncurrent or deprecated money over their
counters; from speculating in real estate
from loaning extensively to their own stock
holders from paying any dividends upon
profits, except all bad and doubtful debts
| ,ln,l a@a1 troh
pledglng or depositing their own funds as
security for any debts due to or advances
received from other banks; and from loan
ing to their own officers, 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 certain prescribed
amount, in defined proportion to the 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 pub
lish statement of their condition, made
under oath to keep publicly posted, foI
the information of all who may be interested
u 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 condition
of their affairs is to be made by q person
appointed by the government.
Payments, transfers, assignments, mortga
ges, deposits, or any acts prejudicial to credi-
tors done in contemplation of insolvency
are declared void. Directors are required
to be sworn officers, and acting under oath
Ample provisions protect associations il
the exercise of all customary powers ant
privileges pertaining to Legitimate banking
Their old and worn or mutilated notes ar,
constantly renewed by the Government with
out cost. Interest upon bonds deposited b.
the banks as security for the circulation
furnished, is to be paid to them semi-annual
ly, in gold the known and wilful violation
of any provision by which the banks are t.
be governed is punished by forfeiture o
the charter, and ample penal provision
protect them from injury by prescribing
punishment for theft, counterfeiting, forgery
and other wrongs committed against then,
| rR57 late letter from COrinth Miss