Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1866-02-01

time the Comptroller shall author
ize the commencement of bust
ness.
Before its Inauguration, every
association shall transfer and de-
liver to the Treasurer of the Uni
ted States registered bonds of the
United States, bearing interest, to
an amount not less than one-third
of the capital stock paid in. This
proportion is to be vigorously en-
forced, so that in whatever act, Ell
Their of expansion or reduction, the
banks will be required to have al
ways on hand to the extent of one
third of the stock actually paid in.
The bonds thus deposited shall
be held by the Treasurer of the
United States for the associations
delivering them, and no transfer
Of such bonds by the Treasurer
Shall be valid until the transfer is
countersigned by the Comptroller
of the Currency. The latter
must keep a strict record of all
such transfers, and give prompt
advice of the same to the associa-
ton from whom the bonds trans
ferred originated.
Upon delivery to the Treasurer
of the required amount, and char
acter of bonds, the bank SO deliv-
ering, shall receive from the Comp
troller, circulating notes engraved
under his direction) of the differ
ent denominations, in blank, regis
tered and countersigned by him.
self and the Treasurer. The a.
mount in notes thus issued shall
not erceed ninety per cent. of the
amount of the bonds deposited, at
the par value thereof, if bearing
interest at the rate of five per
cent. per annum; and in no case
shall the sum of such notes issued
to any association exceed the
amount Of its capital stock actu-
ally paid in.
Such notes after having been
properly signed by the President,
and Cashier of the Bank to whom
they are given, shall be received
at par everywhere in the United
States, in payment of taxes, excl
ses, lands, and all other dues to
Government, except duties on i'm
ports; and also for all salaries and
other debts owing by the United
States to creditors within its terri
tory, except interest on the public
debt, and in redemption of the
national currency. These notes,
if worn, or mutilated, shall be re-
ceived by the Comptroller, and if
destroyed, he shall upon proof of
destruction, replace to the Bank
to whom they belonged, blank
notes Of an equal amount.
Whenever the market value of
any Bonds, deposited under this
act with the Treasurer of the Uni
ted States, shall be reduced in val
ue below the amount of circulation
issued for the same, the Comptroll-
er is empowered to demand from
the Association which deposited
them, the amount of such depreci-
alton, in other United States bonds,
at cash value.
The loans of Banks under this
act, shall at no time exceed one
tenth of the amount of the CAPT
tai stock paid. This will satisfac-
toriIy interpret the scant margin,
of which so much complaint has
been made.
The rate of interest permitted,
shall be regulated by the laws of
the State wherein the Association
may reside. If not fixed by such
laws, the act allows rate of in
terest of seven per cent. per an
mum. Any infraction of this pro-
vision shall work a forfeiture ofin-
terest, and the party suffering
fiom such usury, may recover
double the amount of interest so
eXacted.
Every Association under this
act, shall have on hand at all times
lawful money of the United States,
fifteen or twenty-five per cent, !
differing in different cities of the
of the aggregate of its
notes in circulation and deposits.
Any Bank failing to make good
this reserve for thirty days after
having been notified to do SO by
the Comptroller, is liable to have
Its business summarily wound up. !.
H