Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-30
Letter from Hon. II. r. HurIburd, Conn.
trolleP.

ts troller.
TREASURY DEPARTMENT, Office Of Conptro,-
Ter If the Currency. WAsHINGTON, October ?,
1o67.-Dear Sir: l am IN receipt of your let er
OF The Both ultimo, in which you inc uire els
the receiving of parcels containing unknown
values, without charge, as generally practised
oy the banks, authorized or permitted by Sec
tion s, and If so, are the Stockholders respon
sible for their safety %
To this inquiry reply that National Banks
are incorporated associations, dong business
under a law of the United States, with certain
specified and limited powers. Section OF the
National Currency act defines these powers,
wherein the National Banking Associations
are authorized to exercise under this act all
such incidental powers as shall be necessary
to carry on the business of banking by dis
counting and negotiating promissory notes,
drafts, bills Of exchange, and other evidences
OF debt; by receiving deposits; by buying and
selling exchange, coin, ana bullion; by loan.
ing money on personal security; by obtaining,
issuing, and circulating notes according to the
provisions OF this act
A National Bank may exercise any or oil of
these privileges, but nothing more 1t may be
claimed that bank may receive packages Of
valuable securities, plate or other things, for
safe Keeping, under The power granted To re-
eeive "deposits' But the term deposits
has definite, we'll ascertained meaning, as ss-
tablished by custom, and authenticated by
judicial decisions and is limited in the sense
in which 1t is used here 10 deposits OF money
payable on demand. If it means anything
more than this, it may include anything or
everything. lfit would include silver plate
itmiRht include cotton or tobacco. which would
De abs rd The practice to which you refer
cannot, iheh, be sanctioned by this particular
power granted.
But can 1t be sanctioned by the authority con-
ferred to exercise such incidental pow as
shall be necessary to carry on the business of
BANKING &c! / think not. The custody of
valuables may be a con venieuce to the Direct
ors. stockholders, aud customers OF a Bank,
but 10 is not in the slight degree q necessary
incident to the business OF BANKING But there
Is direct limitation 10 the scope OF thes. Incl
dental powers. IN the language immediately
following the grant, il cidental powers neces.
sary TO carry on the business OF banking by
discouDtiDg promissory notes, &c. Is the power
10 assume the custody and safe. keeping OF mis-
ceiIaneous valuables necessary TO the discount
OF promissory notes. drafts, bulls Of exchange
&C.; is IL necessary in order to do any portion of
a banking business. Evidently not The prac-
tiee, then. not being authorized by law, is pro-
hibifed. The enumeration of powers con-
Non 10 loan i san. %Gn sSo Sn
just as directly prohibited as though il had
been done ia SO many words. The rule then,
is that bank can exercise only such powers
as are expressly granted, and that power not
granted Is specifically prohibited. In this view
OF the case, have NO besitation In saying
that. in my Judgment II is a direct trans.
gression of the provisions Of the National
Currency Act for National Bauk to
assume the custody and safe.keep-
ing OF miscellaneous vaiuables. 1t
10 dangerous TO the hank and in the nature
uables are lost through the carelessness or dis.
honesty Of bank officer or clerk, the officers
are undou btedly liable; and If the practice has
been sanctioned by the board OF directors, they
Will be held liable; and as they are the agents
oftbe stockholders in managing the affairs of
the bank, do not question but that the stock.
holders would in the end be req uired TO make
good the resulting loss
think the custom q very hazardous one.
and shall do all in my power to discourage it;
and, under certain circumstances, might be
compelled to proceed against a bank for a vio-
lation Of IT'S charter, a course which 1 hope
may be avoided BY voluntary action on the
part of the banks
Very respectfully yours,
H. K. HULBURD, Comptroller.
j, NORRIS, Esq, Cashier First National
Bank, Baltimore, Maryland.
The attention OF depositors OF bonds and
other valuable packages respectfully
called TO the above letter from the Com trolIer
OF tie Currency. Concurrent opinions by
several eminent legal gentlemen have also
been gwen. In consequence thereof we do
net feel justified in longer assuming the re.
sponsibiiity of the custody Of such articles
Depositors are requested to withdraw such
deposits now In our possession, at their con-
veDience, before the first day OF January, 1868.
w. y HUNTINGTON,
Cashier First National Bank.