The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-11-24
State law on its own SOIL without qualification or
explanation. The wording Is as follows

State law its own soil. without qualification or
explanation. The wording is as follows
Section "a. And be further enac.d. That any bank
Incorporated by special law, any bnklng institution
organized under general law OF any State nav by
thorty OF this act become national under
It's provisous by the name prescribed ia is organization
certificate; and In such case the articles OF association
and the organization certificate required by this act may
be executed by majority OF the directors OF the bank
or banking institution aud said certificate shall declare
that the owners OF twothirds OF the capital STOCK
have authorized the directers TO make such cerhcse
and to charge and convert the said bank or ba kiug
institution into national associst under this sct
And majority of the directors, after executing said ar
have power 10 execute ali other papers do what
may be required TO make it's organization periect
any such bank NAV coutinue to be Tor the
each they were before said conversion, ana the
citation until Others are elected or appointed
with the provisions OF this act, aud any state nanK
which is stockhoder in any other bsnk by authority
] OF state laws, may continue 70 bold its 81 ok,
although either bank or both, may be orgaized under
and have accepted the provisions OF this act When the
Comptroller shall give to such association certincate.
under bis hand and official SEAL that the PROVISIONS or
this act have been complied with, and that is author
lied to the business OF banking under IT, the
association shall have the Same powers and privileges,
and shall be subject 10 tho same duties, resrcns bies
and rules all respects prescribed In this act for
other associations organized under IT, and shall be held
and regarded association under this act.
As early as Is4l the Bank Of Commerce was by
an arrangement with the Secretary of the Treasury
made the sole depository of the government in
this CITY, The Collector of Customs first deposited
In it in 1912; but with the establishment of the
Sub-Treasury it ceased to be depositary OF the
government. 1t loaned million of dollars to the
United States in lS4l and half million more in
ls43. On the first Of August, 1866. the capital Of
the bank was increased by the addition of 90 900
shares at $40 EACH and scrip shares to the amount
| Of 81 ,sll $50. making with the original five
millions, $751; $50. Subsequently the amount
was raised to ten millions, at which it now stands.
1--we admit Of no difficulty in the way of the
bank organizing under the national law, it will
achieve the object of its desire expressed in its
report Of 1857, when it said (page l5):--"We can
not now indulge the expectation once entertained
Of connecting the United States with the Bank of
Commerce in New York" The prophecy of the
past is belied, and the bank is. if all goes well,
about to emerge from the confines Of the
State iuto q full blown national existence.
The advantages which it will derive from the
change are an exemption from considerable por-
ton Of that taxation which it resisted, and for
which levy was made not long ago; after which,
upon appeal, the case went against tho bank, and
having been carried to the Supreme Court of the
United States, it is stiu pending there.
The new law being far more in favor of the
banks than the government, the shareholders will
incur only limited responsibility. as the follow
ing extract from the National Currency act will
show
The shareholders OF each association formed under the
provisions OF this and OF each existing bank or bank
Ing association ths may ACCEPT the provisions OF this
act shall he held individually responsible. equally and
rataby and for another, for all contracts debts
and OF such association to the extent OF tho
amount stock therein at tho par value thereof,
addition amount vested In such shares except
that shAreholders Of any banking association now
existing under State laws having not less than ave
millions OF dollars Of capital actually paid 10, and
surplus OF twenty per centum on hand. both TO be
detcruined by Comptroller OF tho Currency shall DO
liable only amount invested In their shares, and
such surplus OF twenty per centun shall be kept und
inshed sod be 10 addition 10 the surplus provided for Ia
this and at any time there shall be deficiency In
said surplus twenty per centum the said banking $3.50
citation shall pay dividends TO it, shareholders until
such deficiency shall be made good and In case OF such
deficiency Comptroller OF the Currency may compel
said banking association to close tts business aud wind
up its affairs under the provisions Of this act
Whether the constitutionality Of tho Currency
act approved June 8. 1864, as concerns its pro.
visions with regard to State banks, will be con-
tested, remains to be seen; but in all probability
the shareholders interested win quietly submit TO
the new order of things, and the Chase theory
will be carried into effect with impunity.
Tho United States Assistant Treasurer reports