New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-12-14
aooon that the banks should not only deposit with the
Treasurer, but that they should koep With him con

tarlv this proportion Of bonds while section 80 pro
h Nat ne Controller my shalD direct .he return
" any eli bonds 20 tho association tGat transferred
The same upon TIE suE rerder TO hin nnd ne cnceih
ton OF prCportionG'S Nmount ~ It's cieula rs nos
&c THIS proysior construed ny itscif gieht mum;
The rcqu romens of DC 18TH section even i - "o wv
defeat the most 'n.Es'stant object of TIE act. ,o
Section ~, hFs'Jly construed, might Prevcr, w.. .n
National banks f6.n dscounng on the security le
stocks of other corporations many OF which stocks arc
regarded by tshsers among the inost u.h." ~;
aterals; whdefh object OF the restrictions III S saw
ton undoubtedly was merely 20 proven" u"hho "V'a
dscountnc t-son the security Of their own ttoCas ue
from engaging in stock specuiatons nav a s
that under section A. threetlths OF ,hG twenty d t
cent OF lsv fl money required 70 be Kept on iahd Wy
tbo Noiou lguk might be kept IN similar ASSOCIATIONS
in the ciijis named. tHs IN no omT'. INC h,m ="
of the Ash section is SUPPRESSED ", the char
indicate ti0t no such RESTRICTION IN ,eSdio !" '' ~
acter Of slIe dcpositary vas INTENDED A., 49,. .,
IN absolutely strict construction oI another put.
section Il would seem 70 deny 10 pa.kS ~ ru 49,"
namcl tho privileges granted TO those IN oiner p"os
I'm, have thought and decided that more hpern con
strrction should he given TO IT, because It was no sas
M 20 suppc So il 10 have been the intention OF toh
,,ross 10 Withhold from banks IN Cmceso privileges
Granted to banks in hartford. New liavep, &c.
These and others ike them may be reeard.a as ,,
nor defects and snch do not materially fncct the
p-crcr working Of tho system, but tney serve 10 en-
baass the bankers and may canse improper decisions
ON the part II TIE Controller. The law "old DC great
| ly improy cd If 1t were relieved OF them.
! suggest Ilso that section ~ he struck oI' cntfsN
While II is rle that largo loans 10 single individual
OK igln should, as general thing, be aVohec th'rc
may he and lrcOu2nfN are tNrtIloHu NdsNs III
such loans are both necessary aud iIiiclous thhh
therefore mat This IL matter that should be ot to the
ore O. the hanks end that II can be safely inir
suggest also that section 80 10 amended that the
affairs of the National Banks may be managed by not
more than thirteen directors instead of nne and that
only of the directors be required Ia be resi-
dents Of the State IN which the banks are respectively
located ] can conceive of no valid reason why the
stockholders OF National Bank should be prohibited
from eiccing more than mne directors II rs no. sc y,
al. mold az
do so pt some State banks have more than nine al.
rcc,ors and il they should be converted INTO Satiohh
Banks and the stockholders thereo shouu u'si.o "
retain their present number or any ne" nsoci'oh
Should prefer larger number than nine thoy SHOULD
have the privilege Of doine,it., 49,. -, Ion.
The reinforcement that all the directors 81 q bank
bong be residents of The State in which Is located
may In some instances prevent stockholders RON
ayang themselves Of the services OF men whom II may
hc desirable 10 have in the direction. Many persons
carving on business in large cities reside In neigh
horlnr States should they. therefore be disqualified
frop tcng directors Of the city banks The object Tor
which This resolution was Inserted ia the act VIII DOUBT
less bc secured by requiring two thirds o the board "a
be residents Of the State in which an association is or
gaGise1
WHOM have little voice in the management OF tier
banks would suggest that section IL he 30 amended
that the failure 81 National bass he declared pIima
tacie fraudulent aud Stat the officers and directors
tder whose administration oach Insolvency shall occur
bc made per sonny Liable fT the debts OF the bank and
Ne uunisled crimnally unless IL shall appear. upon IN
re.ion .ka. i,s affairs were honestly administered
Tie individual liability provision II continued, vii
prevent y is doing many prudent men ana men
If wealth from bccoIgiIs shareholders in National
harks and conseC ue,ly hinder proper and desirable
distribution of their stock and viii not protect creditor,
e. the same extent would be done by the proposed
liability VI the managtrs
~ hcaton hy as~ociation Of its quarterly reports
Where there is no newspaper an The place where th'
association is located be made IN tho nearest paper
thereto instead Of paper published II the capital
I suggest also. hat section 80 he amended tha'
sockhoders Of banks Of large capital bc Gig Die Ia ne
direction thereof VITO may be the Of less thar
one half per cent Of tie capital As the Law now stands
no stock holder be director an bank 81 siOV"U -
of capital without owning II least $1,000 OF 1t. stock
Such provision is obviously unwse. The best hrai
AID tho .ghcst integrity might thus be excluded IRON
; the mans-cip Of BANKS There Is another objec
ton e. this section. According 10 ts provisions,
,tockhoder WHO owns hut slsUO If stocs can De d.
rector Of bank with $500 900 capital while one must
own 80 Op Il stock TO be director OF bank VIII
Isuggesi sIso ,la. section 81 be repealed. !, Asa'
RON the consideration that dcprec aion Of govern
i, Il. hardly ins 10 the banks compel them TO farmsi
these securities pledge for their circulation. at Tia
{ TO the caprsces Of the New York Stock Exchange.
Inc aet authorizes the organization Of banks with
capital Of 5000 each ana regare. t.e M a.,
, ness 40 That a bank may commence tie Business u
banLinr With q iaid in capital Of only $1,000
Isag.c-t that tho act be 30 amended that no banl
shall commence business with less capital actual,
pad IN than $1,000 10 say nothing OF the iaciltie
which the law affords 10 the banks for building up
hei.cious caPtl by me u's Of It's circulating notes
altogether too Insignificant sum. even al the com
mencement TO the capital Of bank IL very qesiion
able whether oank should be organized With capita
ess than 800 COO; so 90 10 be paid In al tia com
mencenent Of business and the balance IN nsalmen.
b. Of ten per certeyery "a days Thereafter.
There is a present, provision Tor the v0un' ar
4 olong Of the aiona banks suggest Therefore tha
provision be inserted in the act requiring banks tina
may desre 10 close up their affairs 70 g'e notice
their intention TO do TO the Controller 81 the cur
c rency and su-h notice 10 the public ~ lie nay pre-
scribe and asthorzing the banks at time after
years from tho pubic OF tuch notice TO WITHDRAW
e from the Treasurer the bonds deposited with him 70
the security Of their circulation upon paying into ia
Treasury Of hs United States the amount Of their out
lstanding notes in lawful money, which notes shs
;. thenceorih be rcdcenabc at the Treasury. aud IL
banks respectively and the stockholders thereof be dis
charged from nj liability therefor.
tie hat circulation 10 inGre 10 the Government
not 70 the bank but 10 will be remembered. that ID
notes are furnished the banks at the expense Of III
ly what may be lost destroyed; especially th
banks being at expense therefor, will be likely
keep their circulation clean and uImuiated, BIZ IRE
quent Exchanges Of old notes for new once.
| / suggest, also that the act he 80 amended that III
rate of interest b. De charged by the National Banks b.
uniform IN all the States; that The penalty for usury b.
forfeiture of Tie interest instead Of forfeiture Of tn
debt on which more than the legal rate is taken.
that the baxts In the large commercial ces Of tho
board States be rel eyed IN certain contingencies from
all penalties FOR usury In order that they may prevent
40 far ns practicable by raising the rate Of interet
ccssye npcftatonE of foreign merchandise and AeaFy
loxpOnatOns 81 the precious metals.
Ie expcd.ncy 0f making the rate OF interest uniforn
Throughout the country Is manifest The objection Il
natonal legislation upon this sui s that tie States
are supposed 10 have TIE exclusive night 10 regulate the
interest upon loans Of money.
II il true that the pov 10 regulate the rates Of in
feresi at which money sa be loaned has always been
exercised except in the Of the United States Bank
the States aud II is also that the laws upon
sIbiect in the different states have been various ard
| changeabe. There are scarcely two States In the