Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-12-27
Letter from Hen. II. 4. Hurlbura. Csnp D.

TBEAsuRr DEPAsTMKsT, OsFee If CouptroI.
,sr 81 re c1rrency WASHINGTON, ocsoo'r2 ,,
lc57.-Uear Sir am IN r-ce, OF OF your se. er
OF The Stth ulttpo, in which Won in q uire, ,Is
the receiving Of parcels continuing unkuovn
wins without charge, IS generally practised
by toe oabks. authorized or permitted BY Sec.
ton 6, and II 80, are the Stoc kholdsrs respon-
sib'e tor tnsir tafety ~
To this inquiry 1 reply that National Bants
upder q In W Of the Uni ed yates, win certain
spec fed aud limit powers. Section o. II,
Ns'ional currency act defines these po wers,
WHERE IN the Naitoual Banking AseoefNa oos
are suioorized to "exercise unosr ibis ct al
such Incidental powers shall be necessary
to CARY on the business OF bsnzing BY dis
counting and negotiating promissory notes,
drafts, bills of exchange. and other evidences
OF cebt; BY receiving deposits; by buying aud
selling exchange, coin, and boliisn: by loan.
ing money IN personal security: by obtaining,
issuing, ana circulating notes according 70 tie
provisions Of this act
A NanoDai Bank may exercise any or all Of
theTe privileges, but nothing more. It may BE-
clan that q bsnx may receive PACKAGES Of
valuable securities, plate or other things, for
sa,e Keeping. under the power granted to re-
ceiye "deposits Bat the term dsposirs'
has Definite, well ascsrtaiued meaning, as es-
tablIshed BY custom, and authenticated by
judicial decisions. and is limited In the sense
10 which IL is used here to deposits OF money
paysbie ON demand. If it means any thing
more han THE, II NAV incl ade any tang or
everything. Ifit would include ell yer plate.
u nie include cotton or tobacco. which would
cannot, hes, be -anctioned BY shIs particular
power granted.
But can II be sanct toned by the anthority con-
ferred to 'e1ercise such incidental po wer As
snail be necessary 10 carry ON the business Of
banking" &c ] think not. The custody OF
vasuabiee may be con venIence to the Direct
Srs. Stocfno.ders, and customers of Bank,
but IL is not in the slightest degree q necessary
Incident TO the business of banking. But there
is d rect Limitation TO the scope OF these Incl
dental powers, IN the Language immediateiy
Following the grant, incidental powers neces.
sary 10 carry on the business or banking by
discopnting promissory notes, &c. Is the DO yer
to assume the custody and safe-keepiug Of mis-
ceilanecus valuables necessary to the discount
OF promissory notes, drafts, bulls Of exchange
&c. is II necessary in order TO do any portion OF
banking business. Evidently not. The pfac-
tlce, then. not being authorized by law, il pro-
hibited- The enumeration OF powers con-
ferred fnoludes the power TO loan money on
personal security" Nothing is said about
losning money on real estate, nevertheless it is
just as directly prohibited as though it had
been done in so many words. The rule then,
is that bank can exercise only such powers
granted is specifically prohibited. In this view
OF the case. 1 have NO hesitation in saying
that In my Judgment, 1t is q direct trans.
Currency Act for a National Bank to
assume the custody and safe. kesp-
ing OF miscellaneous vaiuables. II
10 daneerous TO the bank, and in toe nature
OF fraud upon the stockholders. If the val.
uables are lost through the carelessness or dis.
honesty OF 8 bank officer or clerk, the officers
are undoubtedly liable: and il the Practice has
been anctioned by he board OF directors, they
will be hello liable; and rs they are the agents
ofthe stockholders In m aging the AFFAIRS of
the bank, do not question buJ that the stock.
holders would In the end be required to make
good the resulting loss
i think the custom a very hazardous one.
aho snail do all in my power 70 discourage IL;
and, under certain circumstances, might be-
compelled TO proceed against a bank for q VIC.
lat1on OF its charter, a-courss which 1 hope
may be avoided by voluntary action on the
part of the baAks
Very respectfully yours,
H X. HULBURD, Comptroller.
}. 3 NoRHIs, Esq Cashier First National
Bank Baltimore, Maryland.
The attention of depositors of bonds aud
other valuable packages respectfully
called to the above letter from the Comptroller
OF the Currency. Concurrent opiaions by
several eminent legal gentlemen have also
been given. In consequence thereof we do
net feel justified in longer assuming the re.
sponsihility OF the custody OF such articles
DeposItors are requested Is Withdraw such
deposits now in our possession, at their con-
yepience, before the frat day of January, 1863
W. s. HUHTINGToN,
Cashier First National Bank