The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-02-01
National Banks.

the National Currency Act. The first
section OF the Act establishes d sepa-
rate bureau in the Treasury Depart
ment, at the head of which an officer
pres1des, who is denominated the
Comptroller of the Currency. The
sole office Of that functionary is to
supervise the conduct of the banks
1lnaugurated under this law, to see
that they do not transgress the regu-
latlons imposed on them, and to visit
upon them, if they do, the penalties
prescribed.
Section five ordains that all asso-
cations under the Act shall be COM
posed OF not less than five persons
Those thus acting shall make an or
ganlzation certificate, which shall
specify-tirst, the name assumed by
such association, which shall be snb-
lect to the approval of the Comptrol-
Ter. Second, the place where its ope-
rations shall be conducted. Third
the amount of its capital stock, aud
the number of shares into which the
same shall be divided. Fourth. the
names and places of residence OF the
shareholders, and the number of
shares held by each. The certificate
shall be acknowledged before Judge
or notary public, and sent, duly au-
thenticated, to the Comptroller, who
shall place the same on record.
In q town whose population is not
over 5000. an association may be or
ganlzed under this Act, with capital
of not less than $5O,OOO. Otherwise,
the minimum is not under S1OO, 900;
and in city with q population ex-
ceeding $4,000 persons, the capital
cannot be less than 5000, 900.
The natural duration of such asso-
Citations shall be twenty years. They
may be sooner dissolved, either by
forfeiture of franchise or the volunta-
ry action of share holders.
The affairs of every association
must be managed by at least five di-
rectors, one of whom shall be the pre-
sident. Each director 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 any way hypothetical for any
debt or loan Should he cease at
any time to own the requisite amount
of stock, he shall thereby vacate his
Office as director.
Capital stock shall be divided into
shares of 500, and be deemed as
personal property. Every share-hold-
er shall be held idually respon-
slble, equally ana +ably, and not
one for another, i Ill contracts,
debts and engagements of his asso-
citation, to the amount of his stock at
its par value.
Banks may increase their capital
from time to time The maximum of
such increase shall be determined by
the Comptroller, III 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 Comptrol-
ler, and his approval received They
may also reduce their capital, but
never below the amount required by
the Currency Act for their outstand-
ing circulation, nor until the pro-
posed reduction shall have been sub
mitted to the Comptroller, and
obtained his oise.
At least Is per cent. Of the capital
stock shall be paid in before business
can commence, and the remainder of
such capital must be paid in install
ments of 10 per cent. each on the
whole amount of the capital, as fre-
quently as one instalment each
month, from the time the Comptron-
er shall authorize the commencement
of business
Before its Inauguration, every as
sociation 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 CT expansion or
reduction, the banks will be required
to have always on hand bonds to the
extent of one-third of the stock ac-
tually 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 strict record of all
such transfers, and give prompt ad-
vice Of the sane to the association
from whom the bonds transferred |
originated.
Upon delivery to the Treasurer of
the required amount, and character
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