The national Republican., 1867-12-28
81 Letter from Hon. II. n. Hulburd,
CoMPTRoLLER.
TREASURY DEPARTMENT,

TREAsuRr DEPARTMENT,
o'''of or c0arF%sHaaFs %ahIsSaog, SS Ta6 os S'stsS
DEAR SIR; am IN receipt Of your letter Si the
sS S%T m T. ShsS 1a5s sss
banks, authorized and permitied BY section and
II %, are the stockholders responsible for their
10 ihis inquiry reply that National Bank. ,
are incorporated associations, doing business bushes.
specified and limited powers. Section Of the
National Currency act defines these powers,
authorized to &esereise under this act ali such
Incidental powers as shall be necessary to carry
on the business Of banking by discophtins, and
change. and other les OF debt; BY receiving
depositsi by buying and selling exchange, coin,
esu.y .aS S.SSSp Sg GssHs ss %SnIy synd On ss
A National Bank may exercise any or all OF
s%e9 ss tst BANK msy %I,s
uable securities, plate or other things, for safe
pade, the pOws, s,sntea e s
wellascertained meaning, 40 established By Gus.
tom, and authenticated BY Judicial decisions, and
deposits Of money mo ~ psyaSie on demand. II Il
means anything more than this II may include
anything or everything. II 4 would include
which would be absurd The practice TO which
you refer cannot, then, be sanctioned by this
But can Il be sanctioned by the authority con
ferred to exercise such incidental power as
shall be necessary TO carry on the business Of
banking" &c.t l think not. The custody Of
| yaluabies may be q convenience to the directors,
stockholders and customers OF a bank, but u is
not in the slightest degree a necessary incident
rect limitation to the scope OF these incidental
powers, in the language Immediately following
Sy
issory notes, &c. Is tho power to assume the
custody and safe.Eespins Of miscelianeon ~ valu.
notes, drafts, Bills OF exchange, sei Is Il nece;-
ssry In order to do any portion Of banking bu.
enumeration OF powers conferred include. the
power to loan money on personal security"
tstej nevertheless, Il is just directly prohib-
tied as though II had been done in 50 many
words. The rule, then, 10 that a bank can exef-
hibited. In this view OF the case have no heat
IN :as.E no 81 Ss 81
tionai Currency act for q National Bank to as
sume the custody and ssfe-keepins. Of miseells.
and in the nature Of fraud upon the stock.
holders. II the yalusbles are lost through the
ssIee,,nes: Of dishonesty q bank Scsr g,
the practice has been sanctioned BY the board Of
directors, they will be held l!ablei and as they
the affairs Of the bank, I do not question bull
that the stockholders would in the end be re-
quired to make good the resulting loss. A.,
think the custom very hazardous one, and
shall do all in my power 70 discourage ~ and
under certain circumst lancer, might be compelled
to proceed against bsnk for violation Of IL
oharter--a course which hope may be avoided
BY voluntary action on the part Of the bsnks.
Il. h. HuLsunp, comptsolIrr.
Iss ,i. ssrr... ST.: ca'A'sr Fr't Nas''aai sasl
fhe attention Of depouitors Of bonds and othel
valuable packages is respectfully called TO tn,
above letter from the Comptroller Of tho Cur
renoy. Conourre"t opinions by several eminen
legal gentlemen hh Se also been given. In eonse
quence thereof we do not feel Justified In longe
assuming the responsibility OF the custody of sucl
articles. Depositors are requested TO Withdraw
such deposlts now In our possession, at thei
convenience, before the lst day of January, 1903
WM. s.. HUNTINGDON,
de2l-tf Cashier First National Bank.