Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-23
Letter from Hon. n. X. Hurlburd, Comp.
tPolleP.

ActtcT iIem mon. n N. HufIburu, Temp
troller.
TREASURY DEPARTMENT, Office of Comptrol-
Ter Of the Currency WAsHINGroN, October =,
let1.-Dear Sir am in receipt OF your letter
OF the Both ultimo, in which you inquire, sis
the receiving OF parcels containing unknown
yaiues, without charge, as generally practised
by the banks, authorized or permitted by Sec
ton 8, and If so, are the Stockholders respon-
sible for their safety ?"
To this inquiry l reply that National Banks
are incorporated associations, dong business
under law of the United States, with certain
specihed 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 aud
selling exchange, coin, and 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 all 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 es-
tabhshed by custom, and authenticated by
judicial decisions, and is limited in the sense
in which IL Is used here to deposits OF money
payable on demand. Ii it means anything
more than this, il may include any thing or
everything. If il would include silver plate,
1t might include cotton or tobacco. hich would
be absurd. The practice to which you refer
cannot, then, be anctioned by this particular
power granted.
But can it be sanctioned by the authority con-
ferred to exercise such incidental power
shall be necessary 70 carry on the business Of
banking" &c.l l think not. The custody of
valuables may be convenience to the Direct
ors, Stockholders, and customers of a Bank,
but IL is not in the slightest degree q necessary
incident to the business Of banking. But there
is direct Limitation TO the scope Of these Incl
dental powers, In the language immediately
following the grant, incidental powers neces.
sary to carry on the business of banking by
discounting promissory notes, &C. Is the power
to assume the custody and safe keeping Of mis-
cellaneous valuables necessary to the discount
OF promissory notes, drafts, bills of exchange,
&c; is IL necessary in order to do any portion of
banking business. Evidently not. The prac-
tice, then, not being authorized by law, is pro-
hibited. The enumeration OF powers con-
ferred includes the power to loan money on
personal security" Nothing is said about
loaning money on real estate, nevertheless 1t is
just as directly prohibited as though it had
been done in so many words. The rule then,
is that bank can exercise only such powers
as are expressly gran ted, and that power not
granted is specifically prohibited. In this view
IN sA 10 IS direct asns
Currency Act Tor National Bank to
assume the custody and safe.keep-
ing OF miscellaneous valua6les. 1t
OF fraud upon the stockholders. If the val
uables are lost through the carelessness or dis.
honesty Of a bank officer or clerk, the officers
are undoubtedly liable; and il the practice has
been sanctioned by the board Of directors, they
will be held table, 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.
l think the custom a 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 q vio-
lation of its charter, a course which L hope
may be avoided by voluntary action on the
part of the banks
Very respectfully yours,
H. r. 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 consequence thereof we do
net feel justified in longer assuming the r..
sponsbility of the custody Of such articles.
Deposltors are requested to withdraw such
deposits now in our possession, at their COIL
venience, before the first day OF January, 1868.
w. s. HUNTINGTON,
Cashier First National Bank.