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

Line puDilc Seelu 81 Poolty au
vised as to the provisi ,ns and
guarantees upon which ourpresent
National Banking system is found
ed-a subject in which every indi-
yidual is more or less interested
that we regard the following sum-
mary, prepared for the Memnhis
Appeal, as highly interesting and
useful matter:
The creation of National Banks
is derived from a law of Congress
approved in June, 1864, and enti-
tied the National Currency Act.
The first section of the act estab-
fishes separate bureau in the
Treasury Department, at the head
of which an officer prcsides, who
is denominated Comptroller OF the
Currency. The sole office of that
functionary is to supervise the con-
duct of the banks, inaugurated
under this law, to see that they do
not transgress the regulations i'm
posed on them, and to visit upon
them, if they do, the penalties
prescribed.
Section five ordains that all as
sociations under the act shall be
composed of not less than five per-
sons. Those thus acting, shall
make an organization certificate,
which shall specify-First: The
name assumed by such association,
which shall be subject to the APP
proval of the Comptroller. Sec
ond: The place where its opera
tions shall be conducted. Third:
The amount of its capital stock,
and the number of shares into
which the same shall be divided.
Fourth: The names and placesof
residence of the shareholders, and
the number of shares held by
each. The certificate shall be ac-
knowledged before Judge or No
tary Public, and sent, duly au-
thenticated, to the Comptroller,
who shall place the same on rec
ord.
In q town whose population is
not over six thousand, an associa-
ton may be organized under this
act, with a capital not less than
fifty thousand dollars. Other
wise, the minimum is not I'M
der one hundred thousand dollars,
and in city with a population ex-
ceeding fifty thousand persons, the
capital cannot be less than two
hundred thousand dollars.
The natural duration of such
associations shall he twenty years.
They may be sooner dissolved, eli
Their by a forfeit of franchise or
the voluntary action of sharehol-
ders.
The affairs Of every association
must be managed by at least five
Directors, one of whom shall be
the President. 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
anywise hypothecated for any
debt or loan. Should he cease at
any time to own the requisite a.
mount of stock, he shall thereby
vacate his Office as Director.
Capital stock shall be divided
into shares of one hundred dollars,
and be deemed as personal proper
ty. Every shareholder shall be
held individually responsible,
equally and ratably, and not one
for another, in all contracts, debts,
and engagements. of his associa-
ton, to the amount of his stock at
its par oalue.
Banks may increase their capt.
tai from time to time. The maxi
mum of such increase shall be de-
termined by the Comptroller in
the articles of association, and no.
increase shall be valid until the
whole amount of such increase
shall be paid in, and notice there
of transmitted to the Comptroller, |
and his approval received. They
may also reduce their capital, but
never below the amount required
by the Currency Act for their out
standing circulation, nor until the
reduction shall have been
submitted to the Comptroller, and
obtained his rise.
At least fifteen per cent. of the
capital stock shall be paid in be-