Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1863-02-27
Ohio 9tatesnram
The New United States Bank Law.

The bill to provide q national currency
commonly known as Mr.. CHASE q Banking bill
has passed both branches of Congress- Having
passed the House on the night of February Doth
by majority of twenty. The bill very long
consisting of sixty-two sections, and occupying
between FIVE and ak closely printed columns Of
the New York World. The following Ia q
synopsis Of it's leading sections
Associations for carrying on the business OF
banking may DO formed by any number of per-
sons, not less in any case than FIVE.
The amount of capital stock shall not be less
than $5O 00O, and in cities whose population is
over IL, 600 persons the capital stock shall NOT
be less than 100000.
At least thirty per cent. of the capital stock
OF euch associations shall be paid In at the time
of the commencement of their banking busi-
naas; 80 he remainder of the capital stock
ehall be paid in insuaImeuv5 vr os IusIss 49,. ~.
cent each, on the whole amount to which the
association shall be limited, as frequently as
one installment at the end Of each succeeding
two months from the time of the commence.
ment Of its banking operations until the whole
Of the capital stock shall be paid in.
The associations shall be authorized to COM
mence the business of banking when thirty
per cent. OF their capital stock has been paid in
The banks organized under this law shall
have the privilege of continuing In existence
for period not exceeding twenty years.
| Every association, after having complied
with the preliminary provisions Of this act, shall
trsusfer and deliver to the treasurer of the
United States any United States bonds bearing
interest to an amount not less than one.third OF
the capital stock paid 10; and they shall be en-
titled to receive from the comptroller of the
currency circulating bank notes equal in amount
to ninety per cent, of the current market value
of the United States bonds 90 transferred and
delivered, but not exceeding tho par vslue
thereof.
The entire amount Of circulating bank notes
to be issued under this act shall not exceed
s3OO,OOO,0OO. Of this sum, $3.50, 100000 shall
be apportioned to associations in the United
States, in the District of Columbia, md in the
territories, according to representative popula-
tion; and the remainder, $3.50, 100000, shall be
apportioned by the Secretary of the Treasury
in his discretion. The circulating bank notes
shall be engraved under the direction of the
Secretary the Treasury, and shall be in the
denominations Of S., $40, 500, $50, 800, $500
and ST. UOO, as may be required.
The banks ahall pay two per cent per annum
49,
BILE semi.annually, one per cent. On The frst
days Of January and July.
The bank notes authorized under this law
shall be received at par in all psrss of the
United States ip payment of all dues to the
United Statee, except for duties on Imports,
and shall be plid by the United States TO ind
vldusls, corporations and associations within
the United States, for all debts and demands
owing by the United States, .xcept interest ON
public debt.
For all debts contracted by the banks for cir
culatlon, deposits, or otherwise, each share.
holder shall be liable to the amount, at their
par value, Of the shares held by him, in addi-
ton to tho amount invested In such oharep.-
That is, eocyy shareholder is liable to lose double
The amount Of his shares.
Every bank shall hold at all times on amount,
in lawful monay of the United StAtfs, equal 10
at least twenty five per cent Of the aggregate
amount of its outstanding notes Of circulation
and its deposits, and the penalty for inlraction
OF this rule shall be to wind up the bank under
receiver. Balances due to ony association
organized under this act in other places from
any association in the cities of Boston, Provi-
dence, New York, Philadelphia, Baltimore,
| Cincinnati, Chicago, St. Louis, or New Orleans,
in good credit, subject to be drawn for at sight,
shall be deemed part of their balances of law
ful money in hand, to the extent of three ffths
OF the said amount of twenty five per cent. Of
caeh balance required. In other words, coun.
try banks can keep on hand only ten per cent,
OF lawful money Instead of twenty five per
cent aud the city banks can and will use, Of
course, the fifteen per cent. Of lawful money
deposited with them BY the country banks as q
portion Of their required cash balance of TWEEN.
ty.five per cent. This is q liberal clause, and
can be and doubtless will be used with loose
freedom inconsistent vita sound banking.
The worst form of Mr.. CHAsE's "Pct Bank
ing system" is developed in section flfty-dve,
which enacts
That the Secretary of the Treasury sic here
by authorized, whenever in his judgment the
public interests will be promoted thereby, to
employ any of such associations doiug business
under this act as repositories of the public
moneys, except receipts from customg."
Thus, the Secretary of the Treasury is placed
at the head Of banking associations with three
hundred millions of capital, and their notes
everywhere circulating as national money. By
a wave Of his hand, he can raise and depress st
pleasure the prices of all the property in the
country,