Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-21
CITY ITEMS
Letter from Hen. H. r.. Hurlburd, Comp.
trollsp.


TREASURY DEPARTMENT, Office of Comptrcl-
Ter Of the Currency, WAsHIKGroS, OCTOBER =,
1s67.-Dear Sir am in receipt OF your letter
of the Seth ultimo, in which You ING uire, els
values, without charge, Is generally practised
by the banks, authorized or permitted by Sec
tion 8, and " 80, are the Stockholders respon-
sible for their safety I"
To this inquiry reply that National BANKS
are incorporated associations, dong business
under q Law Of the United States, with certain
National Oarrency act defines these powers,
wherein the National Banking Associations
are authorized 20 "exerctse under this act Sll
:uen incideotal powers as snail Be necessary
TO carry on the business OF banking by dis
counting and negotiating proAissory notes,
drafts. bills of exchange, and other evidences
OF debt; by receiving deposits; by buying aud
selling exchange coin. ana ealiien; by loan
ing money on personal security: by obtaining.
issuing, and circulating notes according TO the
provisions of this act
these privileges. bnt nothing more. Ii may be
claimed that a bank may receive packages Of
valuable securities, plate or other things, for
ceive "deposrsr But the term ..deposis'
has a definite, well ascertained meaning. as es-
taeiished by custom, and authenticated By
lucicial decisions, And is limited in the sense
in which il 10 used here to deposits or money
payable on demand. If IL means anything
more than this. u nav tuciude anything or
everything 1fit would include silver plate.
1t might include cotton or tobacco. which woaId
be absurd. The practice TO which you fefer
cannot, thes, be sanctioned BY this particular
power granted. = -tfrr.f}
Bat can At be- eanet.ensd by the authority con-
ferred to exercise such iucadentai power as
SHAFT be necessary toicarry on the business Of
banking 6ci / think not. The custody of
vAluabies may be n con venIence TO toe Direct
ors. Stockholders, AID customers Of q Bank,
but IL is rot in the slightest degree a necessary
IL direct Limitation tc the scope Of these Incl.
dental powers, In the language immediately
following the grant, incidental Pc wers neces.
sary to carry on the business of bauking by
discountiug prOmiseory notes, &c. Is the power
to assume the custody and safe. keeping Of mis-.
cellaneous vaiuables necessary 70 the discount
of pIomissory notes, drafts, bills OF exchange,
&c: is II necessary in order TO do any portion of
ba mixing business. Evidently not. The prac.
tice, then. aot being authorized by law, is pro-
hibited. The enumeration of powers con-
ferred includes the power to loan money on
epersonal security" Nothing is said about
loa ming money on real estate, nevertheless il is
just as directly prohibited as though it had
been done in 50 many words. The rule then,
lie that bank can exercise only such powers
as are expressly granted, and that 20 wer not
granted is specifically prohibited In this view
of the case, / have no hesitation In saying
that. in my Judgment It is direct trans
erosion OF the provisions Of the National
Currency Act for a National Bank TO
i nssame the ,s.s Snssooy and ,sse. keep
il danf erous to the bank. and in the nature
Of fraud upon the stockholders. If the val
uoOfes ure iOel tnrOuRn tDe careleSsnesS or dis.
honesty Of a bank officer or clerk, the officers
are undoubte dly liable; and if the practice has
been san ciioned by the board Of directors, they
will be held liable; and as they are the agents
ofthe stockholders IN managing the AFFAIRS OF
the bank, do not question but that the stock.
holders would in the end be required to make
good the resulting loss
think the custom q very hazardous one,
and shall do all in my power 70 discourage it;
and, under certain circumstances, might be
compelled to proceed against a bank for vio-
lation OF its charter, course which 1 hope
may be avoided by voluntary action on the
part of the banks
Very respectfully yours,
H. f. HULBURD, Comptroller.
j. s. NORRIS, Esq. Cashier First National
Bank, Baltimore, Maryland.
The attention of depositors OF bonds and
other valuable packages are respectfully
called TO the above letter from the Comptroller
Of the Currency. Concurrent opinions by
several eminent legal gentlemen have also
been given. In conseq uence thereof we do
net feel justified in longer assuming the re.
epOnsibilty OF the custody Of euch articles
DeposItors are requested to withdraw such
deposits now in our possession, at their con-
venience, before the first day OF January, 1868.
W. s. HUNTINGTON,
Cashier First National Bank
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