The national Republican., 1867-12-27
sS Letter from Hon. II. n. Hulburd
COMPTROLLER.
TErAsuRr DEPARTMENT.,

TREASURY DEPAprNEST, !
or''el O' c01FF%sGaass %a.asSnos Sr EaS os s'srssS
DEAR SIN; 1 am in receipt OF your letter Of the
ssisins of parcels % eonisininsa & Snfhewn Values
without charge, as generally practieed by the
saietyr'
To this inquiry reply that National Banks
under a law Of the United States, with certain
specified and limited powers. Section OF the
Ms9hai ,b Hss defines tsss RSw
authorized to "exercise under this act all such
incidental powers as shall be necessary to carry
negotiating promssory notes, drafts, bills Of ex-
change, and other evidences Of debit by receiving
deposits; by buying and selling exchange, coin,
and bullionj by loaning money on personal
security; by obtaining, issuing, and circulating
notes according to the provisions OF this act.n
these privileges, but nothing more. 1t may be
claimed that bank may receive packages Of VAL
uable securities, plate or other things, for safe
posits.a but the term Sdepositsn has a definite,
| well-ascertained meaning, as established by GUS
is limited in the sense in which il is used here to
means anything more than thi. It may include
silver plate It might include cotton or, tobacco,
which would be absurd. The practice'to which
you refer cannot, then, be sanctioned BY this
| But can Ii be sanctioned by the authority con-
| ferred to "exercise such incidental power as
banking" sc.i Think not. The custody OF
valuables may be convenience to the directors,
stockholders and customers OF a bank, but 4 4
| not in the slightest degree necessary incident
to the business Of banking. But there 10 di.
rect limitation to the scope of these incidental
the grant, Incidental powers necessary to carry
on the business Of banking by dlscounting prom
R0sss the P9ws, sH ,n the
| ables necessary to the discount OF promissory
notes, drafts, bills OF exchange, Sci Is II neces-
sinessi Evidently not The practice, then, not
enumeration OF powers conferred includes the
Nothing is said about ioaning money on real es-
tstei nevertheless, II Is just as directly prohib-
words. The fule, then, Is that a bank can exef-
81; sss ss;s,ss:s ,ss sss
Ha N a % q he y The Ma
sume the custody and safe-keeping Of niscelia-
necus ysluables. II 10 dsngeious to the bank,
and in the nature Of 4 fraud upon the stock
| csrelessness or dishonesty Of . bank oifioer OF
clerk, the ofioers are undoubtedly liablel and n
directors, they will be held lIablei and as they
| are the agents Of the stockholders In managing
the affair. Of the bank, IL, DO not question m but
| quired to make good the resulting loss.
| think the custom very hazardous one, and
| shall do all In my power to discourage itj and,
under certain circumstances, might be compelled
| to proceed against q bank for a violation of Its
| charter-a course which hope may be avoided
| by voluntary action on the part of the banks.
| Very respectfully, yours,
| II. n. HuLBuRD, Comptroller. 81
"a Ss,I%at. EIDrri.. 81: Cashier Frt National Bank.
|. The attention OF depositors Of bonds and other
valuable packages Is respectfully called to the
above letter from the Comptroller OF the Cur
renoy. Concurrent opinions by several eminent
legal gentlemen have also been given. In conse-
quence thereof we do not feel justified In longer
assuming the responsibility OF the custody OF such
articles. Depositors are requested to withdraw
such deposits now In our possession, at their
convenience, before the lst day OF January, 1865.
| WIN. s. HUNTINGTON,
de2I-tf Cashier First National Bank.