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

the national currency. These notes,
II Worn OF mutilated, shall be re-
ceived by the Comptroller; and if de-
stroyed he shall, upon proof of de-
struction, replace to the bank to
whom they belonged blank notes of
an equal amount.
Whereupon the market value of
any bonds, deposited under this Act
with the Treasurer Of the United
States shall be reduced in value below
the amount Of circulation issued for
the same, the Comptroller is empow-
cred to demand from the association
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 one-tenth of
the amount of the capital stock paid.
This will satisfactorily interpret the
scant margin of which so much COM
plaint 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 interest of
Z Per cent. per annum. Any infrac-
ton OF this provision shall work q
forfeiture OF interest, and the party
suffering from such usrlry may re-
cover 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, Is or 25
per cent, differing in different cities
of the Union. of the aggregate. of
its notes in circulation and its de-
posts. 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 bu-
siness summarily wound mp.
Every National Bank is compelled
to receive, in payment of all debts due
1t, the notes of any other similar in
stitution.
Quarterly reports exhibiting, under
oath, the resources and liabilities of
the banks, shall be made to the Comp
troller, under pain Of 500 forfeit,
for every five days delay in making
them at the proper times.
If any Association should refuse to
redeem one of it's notes when pre-
sented, in lawful currency, the party
presenting the same may have it pro-
tested and forwarded to the Comp
troller. On the receipt of such pro
test, the Comptroller, with the con
sent of the Treasurer, may appoint q
special agent to investigate the re-
fusal. Should the fate of such refusal
be verified, the Comptroller shall
declare, within thirty days thereafter,
that the United States bonds and Sc
curities pledged by the recusant AS
ISOLATION, are forfeited to the United
States. Holders of the circulation of
such bank, shall then be notified to
present it at the Treasury of the
United States, where it will be re-
deemed in lawful currency. The
Comptroller shall furthermore ap-
point q receiver-under bond and Sc
curity-whose duty it will be to put
such bank in liquidation and legally
wind up its affairs. Under this COM
mission all done in contem plation
OF solvency, which may be prejudi-
cial to the creditors of the bank,
shall be declared null and void.
Any officer connected with such or
CARNATIONS, who may be guilty of
misdemeanor in his office, shall, upon
conviction, be punished by imprison-
ment for not less than five, and not
more than ten years.
The foregoing includes all of the
salient points which enter into the
composition of our National Bank
system. 1t occurs to us, that assum-
ing the basis Of this system to be i'm
pregnable, it provides every check,
guard and balance, which the most |
jealous wisdom could suggest. It is
necessary to bear in mind, however,
what this basis is It is neither less,
nor more, than the credit of the |
General Government. Now, with
regard to the permanent soundness
of that credit, it is due to candor to
state that widely divergent opinions
prevail. Many consider it sufficiently
fortified to resist successfully all the
influences which assail it. On the
other hand, not few believe that it |
is dead sea-fruit, which may at any
moment turn to ashes on our lips. |
The report of the Secretary Of the
Treasury furnishes all the attainable
information on the point.
If an inspection of its statements
should satisfy them about the pre-
liminary and vital question of the |
national credit, we have no hesitation
il saying, on behalf of the banks,
that we are acquainted with no scheme