Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-28
Letter frem Hen. II. r. Hurlburd, Gem y
tPOlIeP.

TREASURY DEPARTMENT, Office of Comptrol-
Yer q the Currency, WAsHINGroN, October ,,
OF the Both ultimo, In which you inquire. sis
the receiving Of parcels containing unknown
values, without charge, as generally practised
by the banks, authorized or permitted by Sec
ton s, and II so, are the Stockholders respon-
sible for their safety -
To thrs inquiry reply that Natioual Banks
are incorporated associations, dong business
under law Of the United States, with certain
epecif1ed and limited powers. Section or 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 and
selling exchange, coin, and bullion; by loan
ing money on personal security by obtaining,
issuing, and circulating notes according 10 the
provisions of this act
a National Bank may exercise any or all OF
these privileges, but nothing more. 1t may be
claimed that a bank may receive packages Of
safe Keeping, under the power granted to re-
ceive deposits But the term deposits
mas definite, we'll ascertained meaning, as es-
tablished by custom, and authenticated by
judicial decisions. and is limited in the sense
In which 1t is used here to deposits OF money
payable on demand. If il means anything
more man this, 1t may include anything or
everything. lfit would include silver plate,
ltmieht include cotton or tobacco. " hich would
be abs urd. The practice TO which Won refer
cannot, then, be sanctioned by this particular
power granted.
But can 1t be sanctioned by the authority con-
ferred to exercise such incidental power as
snail be necessary TO carry on the business Of
banklng, dc.! 1 think not. The custody OF
valuables may be a convenience to the Direct.
ors. Stockholders, and customers of a Bank,
but il is not in the slightest degree a 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
d1scountihg promssory 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 II necessary in order TO do any portion of
banking business. Evidently not The prac.
nee, then, Lot being authorized by law, is pro-
hlolted. The enumeration Of powers con-
tne power TO loan money on
loaning money on real estate, nevertheless il is
just as directly prohibited as though it had
been done ia so many words. The rule then,
is that bank can exercise only such powers
as are expressly granted and that power not
granted is specifically prohibited. In this view
OF the case i have no hesitation in saving
that, IN my Judgment 1t is direct trans
Currency Act for National Bank 10
assume tae custody and safe keep
ing o: miscellaneous valuables 1t
is dangerous to the bank. and in the nature
OF fraud upon the stockholders. If the VAL
uables are loet through the carelessness or dis
honesty Of bank officer or clerk, the officers
are undoubtedly liable; and if the practice has
been sanctioned by the board OF directors, they
Will De held liable; and as they the agents
fthe stockholders in managing the AFFAIRS of
the bank, clio not question but that the stock.
holders would in the end be required 10 make
good the resulting loss
L think the custom very hazardous one,
and shall do all in my power 10 discourage IL;
and, under certain circumstances, might be
compelled &c proceed against a bank for a yio-
lation Of its charter, a course which 1 hope
may be avoided by voluntary action on the
part of the banks
Very respectfully yours,
H. X. HULBURD, Comptroller.
j. ). 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 opiHions by
several eminent legal gentlemen have also
been given. In conseq uence thereof we do
net feel justified in longer assuming the re.
sponsibility 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, 1865.
w. s HUNTINGTON,
Cashier First National Bank.