Litchfield enquirer., 1865-11-30
af1 tt IE3 Q Ei8it93l1 aEif ssW [Flon Me a Proriiqassnes Journal: THE NATIONAL BANKS.

The act to provide lnationalssctrrency is plain and inte!ligible, and is :tos be the only guide of all natonal banks s9at o5 ya.s4uf. Associations. converted from State banks, must conform strictly to it's provisions. ..s. T. | When once changed from State. to national institutions theybecome associations under the act, and no State enabling acts can control their actioa,th thereafter, or give them any forms or privileges. They are subject to alt the rules regulations and duties in every respect, as as, sociations formed under the act. '... ar,..a,.3
 Such being the case the question of the right or power of State Legislature to grant the privilege of issuing State currency is deci- ded without difficulty, ,f.<.. . .,...~
 The 23d section forbids the issue by na- tional bank Of any other than national curren cy.
 The directors of all converted banks take a solemn oath that they will couutenance no vii olations of the Currency Act f.-z ," -''s"i . There is then no alternative for them but to implicitly obey the law, and retire at once all State currency as fast as presented. 1' -' Section B enacts, that if the directors of any association shall knowingly violate, or per nit any of the officers. agents or servants of the association, to violate any Of tue provisions of this act, all the rights privileges and franchises of the association derived from this act, shall thereby be forfeited.' 'Saa1d'o'4 5svo. .-'.'~
 The amendment of the enabling act of this State, allowing the issuing of State currency, in denominations less than five dollars, up to July lst. 1866, in an amount which, with na- tioral currency, will not exceed ninety per cent. fthe capital of the bank, is, from the nature of the case, of no force or effect but is null and void For if the elegislature could give such a privilege for one, year, it can for ten years.
 A bank in such case. entitled by its depos- it of bonds, to very small circulation, can fill up to the full amount specified in the State amendment -,a .I'i4e< 3g- 3l=7 ?, -f4.4 a54t
 Can such statute be tolerated for moment, or override the provisions of the national law. Enabling acts are useful, so far as they legal ly aid in transferring State to national banls. They can extend no further. -' ai45'' ''4s7 a Converted banks must conform to the rules and duties in all respects of the national law.
 All evasions or violations will only lead then into maze of trouble and embarrassment. 1
 The section of the. act relating to legal re- serve is of the utmost importance, and must be strictly observed. This is in harmony with the law, qua wItn the IHperauve instructons or me Comptroller of the Currency. slI 5a5sa l.
 It will be my duty and constant eudeavor to enforce strict compliance with the sections al- luded to- -r~-..-
 I l feel assured, from my intercourse with the bank officers of this city, that they will insti- tute an: immediate reform, where violations of law exist, with regard to the issue o their State bills. But the work must not be partial, but thorough and complete. a -l 2s. ,t .-al saa
 am aware that the business w,nts of Prov idence require large amount of cirrency of a less denomination than five dollas. At the same time, in the end, nothing esential will be gained by issuing the State bils, for such course will only defer the receipts,f the small CT notes from the Currency Department.
 Very respectfully, A. B. IYaArr.
 .~.s, National Bank Examiner. l Providence, Nov. IA, 1865. r. z.