Daily union and American. [volume] (Nashville, Tenn.) 1865-1866, 1866-01-24

] L
| NATIONAE. HANKS.
| The public seem so poorly advised as to
the provisions and guarantees upon which
our present National Banking system is
founded subject in which every indiyid.
ual is more or less interested--tlnt we ne
gard the following summary, prepsred for
the Memphis Appeui, as highly interesting
and useful matter;
| The creatioi Of National Banks is de-
rived from law of Congress, approved in
Juue, 1864, and entitled the National Cur
rency Act. The first section Of the act es-
tablishes separate bureau in the Treasury
| Department, at the head Of which an officer
| presides, who is denominated the Comp
troller Of the Currency. The sole office of
| that fanctionary Is to supervise the conduct
Of the banks inaugurated under this law,
70 see that they do not transgress the regu-
lations imposed ON them, and to visit upon
them, il they do, the penalties prescribed. :.
| Section Eve ordaips that all associations
| under the act shall be composed Of not less
than five persons. Those thus acting, shall
make an organization certificate, which shall
IL
association, which shall be subject to the APP
proval of the Comptroller. Second: The
place where its operations shall be conduct-
ed Third: The amount of its capital
stock, and the number of shares into which
the same shall be divided. Fourth:, The
names and places Of residence Of the share
holders, and the number Of shares held by
each. The certificate shall be acknowledged
before Judge or Notary Public, and sent
duly authenticated, to the Comptroller, who
shall place the same on record.
1 In town whose population is not over
six thousand, an association may be organ
ized under this act, with capital of not less
than fifty thousand dollars. Otherwise, the
minimum is not under one hundred thous-
and dollars, and in a city with a population
exceeding fifty thousand persons, the capital
cannot be less than two hundred thousand
dollars =
The natural duration Of such associations
shall be twenty years. They may be sooner
dissolved, either by a forfeit Of franchise or
the voluntary action of shareholders.
The affairs Of every association must be
managed by at least Eve Directors, one Of
whom shall be the President. Each Direct
or shall possess, In his own right at least ten
shares of the capital stock, and declare on
oath, that said shares are not pledged, or in
anywise hypothecated for any debt or loan..
Should he cease, at any time to own the re-
qnisite amount of stock, he shall thereby
yacate his office as Director. -
Capital stock shall be divided into shares
of one hundred dollars, and be deemed as
personal property. Every shareholder shall
be held individually responsible, equally
and ratably, and not one for another, in all
contracts debts, and engagements of his as
sociation, to the amount Of his stock at its
par tdlue. ,s- e
Banks may increase their capital from
time to time. The maximum of such in
crease shall be determined by the Comp
troller in the articles of association, and no
increase shall be valid until the whole
amount Of such increase shall be paid in,
and notice thereof transmitted TO the Comp
trollcr, and his approval received. They
may also reduce their capital, but never be-
low the amount required by the Currency
Act for their outstanding circulation, nor
until the proposed reduction shall have been
submitted to the Comptroller, and obtained
his rise. saas 10 q 7ess q laI
At least 6sfeen per cent. Of the capital
stock shall be paid in before business can
commence, and the remainder Of such eapi- |
tai must be paid in instalments of ten per
cent. each, on the whole amount of the capi-
tai, as frequently rs one instalment each
month, from the time the Comptoller shall
authorize the commencement Of business.
Before its Inauguration, every association
shall transfer and deliver to the Treasurer of |
the United 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
enforced, so that In whatever act, either of
expansion or reduction, the banks will be |
required to have always on hand bonds to
the extent Of one-third Of the stock actually
paid in. 3 ~ sllf b s 81
The bonds thus deposited shall be held by
the Treasurer of the United States for the
associations delivering them, and no trans
fer Of such bonds by the Treasurer shall be
valid until the tranfer is eountersigned by
the Comptroller Of the Currency. The lat
Der must keep a strict record Of all such
transfers, and give prompt advice Of the
same to the association from wham the
bonds transferred originated. u -
Upon delivery to the Treasurer of the re-
quired amount, and character of bonds, the |
bank so delivering, shall receive from the
Comptroller, circulating notes lengraved
under his direcfien) Of different denomina-
tions, in blank, registered and counterigued |
by himself aad the Treasurer. The amount |
in notes thus issued shall nos exceed ninety pr
cent. OF the amount of the bonds deposited, at /
the psr value thereof, Il bearing interest at
the rate Of Eve per cent. per annum and in |
no case shall the sum of such notes issued 10
any association exceed the amount nf It's cap
ital stock actually paid in. - De- =
a Such notes after having been properly |
signed by the President, and Cashier OF the |
Bank to whom they are given, shall be re-
ceived at par everywhere in the United
States, in payment Of taxes excises, iands,
and all other dues to Government except /
duties ON imports; and also for all salaries
and other debts owing by the United States
to creditors within its territory, except in
terest IN the public debt and in redemption
Of the national currency. These notes, If /
worn, .:or mutilated, shall be received. by |
the Comptroller, and II destroyed, he shall /
upon proof Of destruction, replace to the
Bank TO whom they belonged, blank notes Of
an equal amount. s
Whenever the market value Of any
Bonds, deposited under this act with the
Treasurer Of the United States, shall be re-
dnced in value below the amount Of eircu- 1
idfiOn Issued tOf tnc same, tnc COmptftIler
Is empowered to demand from the Associa-
ton which deposited Them, the amount Of
such depreciation, in other United States
bonds, at cash value. ~
The loans Of Banks under this act shall
at no time exceed ope-tenth OF the amount
of the capital stock paid. This will salts
hetoriIy interpret the sctnt margin, Of
which so much complaint has been made.
The rate Of interest permitted, zhail be
by the laws Of the State wherein i
the Association may reside. IL not fixed by
such laws, the act allows . rate Of interest
Of seven per cent. per annum. Any in
fraction Of this provision shall work for A
feiture Of interest, and the party suffering
from such usury, may reasver double the
amount Of interest 20 exacted.
Every Association under thls act, shall
have on hand at al times lawful money ofthe
United States, fifteen or twenty-five per cent,
differing in different cities sf the Union, ,)of
the aggregate Of IL notes In circulation and
its deposits. Any Bank falling to make
good this reserve for thirty days after having
been notified to do 20 by the Comptroller, IL
liable to have lis business sulnniarily wound i
up.
Every National Bank i compelled 10 re-
ceive IN payment Of all debts due 4, the |
notes Of asy ether similar insfituti0n,
Quarterly reports. exhihiii,ss, under oath.
the resonsces aHd liabilities of the hanks