The national Republican., 1867-12-25
srCHRIsTMAs CELEBRA RATIOS
81 Letter From, Hon. II. n. Hulburd,
COMPTROLLER.
TREASURY DKPAprnESr,

orrrc. or co.r1sei.ss q ~ SussssSr,
DEAR SIN, am in receipt of your letter Of the
3oth ultimo, In which you inquire, .Is the re-
sithoS, charge, .. 'SeIi SeneTaIiy Praotissd By he
banks, auth horIzed and permitted by section g. and
II 80, are the stockholders responsible for their
10 mi. inquiry reply that National Bank.
sw % as he
wherein the National Banking Associations are
Incidental powers as shall be necessary to carry
on the business Of banking by discounting and
negotiating promissoIy notes drafts, bills q sx.
depositsi by buying and selling exchange, coin,
and ballionj BY Iosning money on personal
ts note. sssoEdlSS ~ to ahe prosi.ion. % OF hi. seS
A National Bank may exercise any or all Of
these privileges, but nothing more, 1t may be
Po Sr osSsr tns.s oS q .s
po.itsD But the term deposits" ha. = definite,
tom, and authenticated BY Judicial decisions, and
ID limited In the in which II IL used here to
S %SnSS nj. %.y
siiysr plate II might include cotton or toSsssc,
you refer cannot, then. be sanctioned by this
particular power granted.
But can II be sanctioned by the authority con-
| ferred to "exercise such incidental power as
| shall be necessary to carry on the business Of
banking" Sc.t 1 think not. The custody Of
valuabfea may be a convenience to the directors,
stockholders and customers Of a bank, but It Is
not in the slightest degree necessary incident
| to the business OF banking. But there 10 a d.
powers, in the language Immediately following
| the grant, incidental powers necessary to carry
on the business Of banking BY diseounting prom
| custody and safe-keeping OF miscellaneous valu-
| ables necessary to the discount OF promissory
ssry IN order to do any portion Of a banking bu-
| sinessi Evidently not. The practice, then, not
being authorized by law, Is prohibited. The
power to loan money on "personal security"
Nothing Is said about losning money on real es-
tatei nsyerthele.: 4 4 just a. directly prohib.
words. The rule, then, is that a bank can exei-
| else only such powers as are expressly granted
hStea @ II tSis view hev sof the case have no hes
rect transgression Of the provision. Of the Ma
sumo the custody and safe-keeping Of misoells-
| neous valuables. 1t 10 dangerous to the bank,
and in the nature OF fraud upon the stock
clerk, the oficers are undoubtedly liable; and II
directors, they will be held liable, and as they
| are the agents Of the stockholderr In managing
e. q hs bank s0 nG, 91ssGe1 s.s 70
s:ss% .ns very sSs on. and
| shall do all In my power 70 discourage u; and,
under certain eircumstanoes, might be compelled
TO proceed against bank for aviolntion OF its
| ehArter-a course which hope may be avoided
| by voluntary action on the part OF the banks.
Very respectfully, yours,
II. n. HuLnuRD, Comptroller.
"a SatI%g, tEI1rrt., 81: Cashier FIR" National Bank.
The attention Of depositors Of bonds and other
| valuable packages 10 respectfully called to the
above letter from the Comptroller of the Cur
| 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, 1888.
| WM. s. HUNTINGTON,
| de2i-tf Cashier First National Bank.