Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-31
Letter from Hen. II. X. Hurlburd, Comp
troller.

troller.
TREASURY DRPAsTMssr, once of Conpirol.
Ter Of the Currency WAsHINGToN, October 2,
ls67.-Dear Sir srn IN receipt of your letter
of the 18th uitimo, In which You IN q uire, .Is
the receiving OF parcels containing unknown
values, without charge, as generally practised
by the banks, authorized or permitted by Sec
ton 8, aud II go, are the Stockholders respop-
sible for their safety f'
To this inquiry reply that National Banks
are incorporated associations, dong business
under law OF the Unied States, with certain
specified and limited powers. Section OF the
Natiopal Currency act defines these powers,
wherein the National Banking Associations
are authorized to exercise under this act all
such In cidental powers shall be necessary
TO carry on the business Of banking by dis
drafts, bills Of exchange, and other evidences
OF debt; by receiving de- osits; by buying ana
selling exchange, coin, ana bullion; by loan
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. Ii may be
claimed that a bank may receive packages Of
valuable securities, plate or other things, for
safe Keeping, under the power granted to re-
ceiye "deposits." But the term "deposiis"
has a definite, well ascertained meaning. Is es-
taollshed by custom, and authenticated by
judicial decisions, and is limited in the sense
in which IL is used here to deposits or money
payable on demand. Ii IL means any thing
more than this, IL may include anything or
everything. 1fit would include silver plate.
ltmieht include cotton or tobacco which would
be absurd. The practice to which You refer
cannot, theh, be sanctioned BY this particular
power granted.
But can 1t be sanctioned by the authority con-
shall be necessary to carry on the business Of
banking" &c.l 1 think not. The custody OF
valuabes may be convenience 10 the Direct
ors, Stockholders, and customers of a Bank,
but IL is not in the slightest degree q necessary
In cident to the business of banking. But there
IL direct limitation TO the scope Of these Incl
following the grant, incidental powers neces-
sary to carry on the business of banking by
discounting promissory notes, DO. Is the power
to assume the custody and safe. keeping of mis- -
cellaneous valuables necessary TO the discount
OF promisfory notes, drafts, bulls Of exchange,
&C.: lie II necessary in order 70 do any portion OF
tice, then. not being AUTHORIZED bylaw, Is pro-
n ,nfts Tas :rumsr.,ao. Of pevers con-
is,leo nSinoss .ne to loan money ON
loaning money on real estate, nevertheless IL Is
just as directly prohibited as though it had
been done in so many words. The rule then,
10 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
erosion Of the provisions Of the National
Currency Act for National Bank TO
assume the custody and safe-keep-
ing OF miscellaneous valuables. IL
il dangerous to the bank. aud in the nature
OF fraud upon the stockholders. II the VAL
u6oles are lost through the carelessness or dis
honesty Of bank ofiicer or clerk, the officers
are doubtedly liable; and IL the practice has
been sanctioned 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 req uired to make
good the resulting loss
i think the custom a very hazardous one.
and shall do all in my power 70 discourage il;
and, under certain circumstances, might be
compelled TO proceed against q bank for o vio-
lation Of its charter, q course which 4 hope
may be avoided by voluntary action on the
part of the banks
Very respectfully yours,
II. 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 opiaions by
several eminent legal gentlemen have also
been given. In conseq uence thereof we do
net feel justified in longer assuming the re.
eponsibility OF the custody Of such articles.
DeposItors are requested to withdraw such
deposits now In our possession, At their con-
venience, before the first day of January, IS6S.
w. =. HUNTINGTON,
Cashier First National Bank.
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