Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-24
Letter frsm Hen. II. X. HarI burd, Comp.
trslleP.

trsller.
TREASURY DEPARTMENT, Oykcc Of compsr
Ter 81 he Csrre.ey, WASHINGTON, Octoeer 2.
iee7.-Dear Sir. am IN receipt OF your letter
OF he 3Cth ulumo, In which You In uire aIs
the receiving OF parcels containing unknown
values, without charge, Is generally prsctised
by the banks, authorized or permitted by Sec
ton 3, and II so, are the Stockholders respou-
s1ble for their safety "
To this inquiry / reply that National Banks
are IN coIporaied associations, dong business
under . law Of the United states, win certain
epecified and tmitsd powers. Section or she
National Currency act defines these powers,
wherein the National Banking ASSOCIATIONS
are authorized TO exercise under this act all
such incidental powers shall be necessary
to carry on the bNsioese OF banking by dis
counting and negotiating promissory noses,
drafts, bills OF exchange, and other evidences
Of debt; BY receiving deposits; by baying and
selling exchange, coin, and bullion; by loan
ing money on personal security: by draining,
issuing. and circulating notes according 70 the
A National Bank may exercise any or AT Of
these privileges, bat nothing more. Il may be
claimed that a bank may receive packages Of
valuable securities, plate or other things, for
safe Keeping, under the power granted 70 re-
ceiye "dsposits" But the term deposits
has definite, Well ascertained meaning. as es-
taolished by custom, and authenticated by
judicial decisions, and is limited in The sen se
In which 1t is used mere 10 deposits or money
payable ON demand. II it means anything
more Than this, IL may include ANYTHING OF
everything. II il would include silver plate,
~ mig t include cotton or tobacco which would
be absurd. The practice TO whic IN you refer
cannot, Their, be sanctioned by this parti calar
power granted.
But can If be sanctioned by the authority con-
ferred 10 exercise such incidental powe as
shall be necessary 10 carry on the business Of
banking" &c.l 1 think not. The custody OF
valuables may be a convenience TO the Direct
ors. Stockholders, and customers Of a Bank,
but ~ is not in the slightest degree u necessary
incident to the business of banking But there
Limitation y of hasa in
dental powers, In the language immediately
following the grant, incidental powers neees-
eary TO carry on the business OF banging by
dscounting promssory notes, &c. Is the po wer
to assume the custody and safe. Keeping OF mis-.
cellaneous valuables necessary 70 the discount
OF promissory notes. drafts. bulls OF exchange,
&c; Is IL necessary in order 10 do any portion OF
a banking business. Evidently not The prac-
iee, then. not being authorized by law. ia pro-
hiolted The enumeration OF powers con-
personal security" No-hine is said about
losning money on real estate, nevertheless il A.
Just as directly prohibited as though IL had
been done IN SO many words. The rule then,
is that bank can exercise only such powers
as are expressly granted, and that n 10 ser not
granted is specifically prohibited. In This view
Of the case, 1 have no Hesitation in saying
that. in my Judgment II is a direct trans
erosion of The provisions OF the Nstional
Currency Act for a National Bank to
assume the custody and safe-kesp-
ing OF miscellaneous yaluables. Ii
10 dangerous 10 the bank and in the nature
of n fraud upon the stockholders. 1t the val.
uables are iost through the carelessaess dis.
honesty Of bank officer or clerk, the officer
are undoubtedly liable; and IL the practice has
been sanctioned by the board OF directors, they
Will be held liable; and as they the gents
OF the stockholders I'm managing the affalrs of
the bank, do not question buT that the stock
holders would in the end Be required 70 max.
good the resulting loss.
i think the custom n very haxardens one.
and shall do all in my power 10 discourage il;
and, under certain circumstances, might be
compelled 10 proceed against q bank for vio-
lation Of lis charter, a course which 4 hope
may be- avoided by voluntary action on the
part of the banks
Very respectfully yours,
II. X. HULBUED, Comptroller.
j. ). NORRIS, Esq. Cashier First Maternal
Bank, Baltimore, Maryland.
The attention OF depositors o, bonds and
other valuable packages are respectfully
called 10 the above letter from the Comptroller
Of the Currency. Concurrent opinions by
several eminent legal gentlemen have also
been given. In conss 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.
reDience, before the first day OF January, 1868.
w. >. HUNTINGTON,
Cashier First National Bank.