Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1863-03-10
The BANKING Act-What it Creates


The Banking Act-What it Creates.
1t creates a Bureau in the Treasury Department
under the title Of the Comptrol sr Of the Currsn-
Cyl nominated by the Secretary Of the Treasury
aud appointed by the President and Senate ga
airy, $1,000; bonds, Sl00,0OOj to hold Office fol
five Years; to have deputy clerks &c none o
whom shall be interested in any banking under the
act.
Associations for banking may be formed by not
less than five persons, who shsl make certificates
specifying the name Of their ocaton, its loca.
ton, amount Of capital, which shall be not lea,
than fifty thousand dollars (anL in cities of over
ten thousand population, not less than one hun.
ded thousand dolarD; names, residence and
number Of shares, of sockholdsr and time oil be-
ginning business this certificate to be legally ac-
knog.edged. Thirty per cent Of capital stock to
be paid in at commencing, and the remaining cap
ltal at ten PER cent every two months until paid
up. ltany one ails to pay, bis stock TO be sold
at auclioo, after three weeks advertising. If not
bid in 30 as 20 cover assessments and costs, It il
forfeited to the association. When the Comp
tr0llsr is satIsd that these conditions are com.
piled with, be shall give the association certil.
cate authorizing hem 10 commence business, which
fact shall be advertised for sixty days. All these
associations are authorized 10 do business in the
usua form, sue and be sued ard to perform all
tue ordinary functions Of banking Their shares
are transferable, personal properly carrying their
liabilities with them. Capital may be increased
from time to time, as may be deemed expedient
They may hold real estate necessary for their
business such as may be mo'tgaged as security
FOR lands, such as may be oBve)ed FOR debts, aud
such as they may purchase under their mortgages,
but no other.
Preliminary to commencing, they deliver to the
United States Treasurer Understanding bonds Of
l.e government to the specified amount, and re.
ce.ye currency-crculating notes in blank, regis
tered and counters5 5ned, equal to ninety per cent
Of the value Of the bonds deposited, but not .x-
ceeding the pr value and at no time shall such
notes exceed the clpiiil stock psi! in. The en-
tire amour, She. no, exceed 100000 600
Slj0000,000 20 associations in States md Terri
tories, according to fcpresentative populations the
other Slj0,0000O0 10 be distributed with regard
10 existing bank capital and business.
The notes are to be from s. to s. ,C00 and *
press On their face that they are secured, and
bear the signatures and seal Of the Treasury De.
partmenti also ire signatures Of the President
and Cashier Of the Association. The Secretary.
20 devise the form and establishment, and have
custody O. the dies and manufacture.
10 Leu Of all taxes on crcuiaiion.under this scl,
or bonds deposited, each association shall pay semi.
annually one per ceat upon the notes received, re-
turns to be made on the Is: July and lsi January
and 10 default two per cent Of The capital to be re-.
covered for the Treasury
When duly issued, these notes shall be received
a. par 10 payment IF taxes. excisss public lasds
and all other dlss 20 be United States xcepl
duties on Imports a'j for al, salaries sra other
debts owing by the Uui.ed States except interest
on public deb; and no association shalii.sue any
other Circulating notes, under penalty Of fine
lna Imprisonment.
II any banA ht 10 redeem lbs notes, the holder
may protest them before a notary, whereupon tue
bank may be suspended by the Comptroller uBder
forms prescribed, their securities forfeited TO the
United States, and enough cancelled 10 redeem the
notes refused. In case Of suspension the securi.
ties to be sod az auction IN New York after thirty
day notice. The Comptroller may 10 promote
the public interest, sell such stock at private sale
but for rot less than the current market value.
The stockholders are not liable for principal
debtors or sure,es to an amount greater than
three.til,hs Of the capital stock paid IN. The
shares shall be 500 each no s,ockhoder can sci
CT transfer while he is liable for any debt Of th,
association, nor receive any dividend, interest or
profit wnlc such liability continues. The same
security, both in kind and amount shall be re-
quired Of shareholders as Of other persons. No
bank shall purchase or hold its own stock or the
stock Of any other company, unless in case Of for
iei;ure or prevent loss upon debts.
Every such bank shall be managed BY five to
nine directors, each 10 be a citizen, and resident
the state one year. and own a. least one per cent.
Of the capital stock up to two hundred thousand
dollars ore-half per cent. Il over that. Every
bank shall always have on hand in lawful money
a, least twenty-five per cent Of its outstanding
notes and deposits They shall not hypothecale
notes to procure money TO be paid 10 on their own
capital stock, or used 10 other bankir operations,
No bank shall petmi, dividends OF iG. 5 to stock
holders for more than six months d losses al any
time exceed profits on hand, no dividend shall be
made, and no dividend shall ever be made greater
than the net pr fits oa hand, deduciiAg losses and
bad debts. Ssmiaunual dividends mar be L.
clated as the directors Judge cxped.ent The
banks may take, in advance, discount on notes,
bills Of exchange, &C., al the current established
rates by the laws Of the several states taking
higher nteres' iorfe',s the debt There are elabo.
rate regulations regarding the business Of ex'
change. Severe penalties ate provided for mis-. |
conduct on the pat Of the bauks their officers &c.
The Secretary may use these banks as depositarie'
Of public moneys ey opt for customs. Legal pre-
ceedings under the act are to be directed by the
Solicitor of the Treasury. Provision is made
against mutilation aud oounterieiling Of notes.
And lastly the Comptroller OF the Currency is to
make fall report annually to Congress Of the
coavion Of each of those banks and associations.