The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1869-05-27
responsibilities and Liabilities of
National Bsnks-Important Opin.
ion OF the Attorney General.


National Bspks-Important Opin.
ion OF the Attorney General.
ArrORsEr eESrEaL's o.yrcr.i .
SIN: In your letter. Of April Z, isds, trans
sfosl Of tSey ~ sss' 81 iron the oS%p
calling attention TO his letter OF October III
lsos, and referring TO letter oil the late Sec
retary o. the Treasury to my predecessor OF
the points presented herewith which have
been carefully considered, And upon which /
an me now ~ prepared to submit ny opinion.
9Th instant, that he is Uniformed and has
reason TO believe that quite a number OF ma.
, Yoa bank: In the city and State of New
Limitations imposed by the act OF Coneres,
contemplate = return to the State ssstrrn
Under, what they called the enabling ast'
purpose AID IN ss is,ts ns Of sts ssos bSr
~, lsss, he states ,that 1.-THE president and
pW.sGtnIs 81 tan National McchNnics' ard
a smmets Hawk oil Albany, sp Institution or
p.ional currency sesused by a pledge Of
United states bonds, and TO provide for the
Gmenistion ana redemption thereof passed
bank into 4 state banking As.cei alton under
the provisions Of an eet. paused BY the LegIs.
,stuse % the state q New York, April ~,
tnga.soelations to become State b.nL,nv "a.
soelatlons, &c, and that by virtae OF such
conversion they are absolvei from all allie.
glance and tesPon,ibiaty as a nationai Bank
act OF Consrcts.n -
am Of the opinion that It Is no, within the
power q the Legislature % New York to
duties or liabilities created In. or conferred
upon abantiss association established under
an act q Congress. The powers, privileges
rived from the soFsresnsy 2hics ave s ss
i,tenes. The Leguistsre Of New York may
.nndouetedly ineorporste, or provide b.. law
ior the Incorporation OF, banking association
In that State; but backing associations thus
etssted are new and distinct bodies corporate,
WIN which corporation. deriving their exist.
enee from the nitet, States cannot be merRed,
or In any manner Identified, without the au'
thority Of Congress.
Any lawful contract which a national hank,
ing a'oeiation might make with a private
person, or with another Corporation, may un.
dop6tedly DO made with = corporation estab.
lished by the state OF New York for banking
pTfpo,ss and authorized by the. state to enter
NATIONAL banking association In the manner
provided by the LAVE Of the United States, the
property OF each an association may be dis
peteut by the local law to receive such trans
Ter, so far as the restrictions, liabilities and
duties Imposed BY act OF Congress upon tho
| corporation winding up its affairs, witt sS.mit
But II seems to me that it ise misuse OF Ian.
| guAge to say that the rs,lonal banking assoc.
! citation Is in any sense changed into the bank.
! rug Corporation created by the laws oil the
State, or merged In it, and l can perceive no
power or authority existing in the Legislature
OF the state OF New York BY which the prop
erty OF the national corporation shall, "by act
otlAw, and without any conveyance or trans.
Ter, be vested 10, and become the property Of,
such state banking association The statute
| Of New York may Indeed provide for the creA.
| tion OF = corporation clothed with the capacity
| to receive q transfer Of property In such man.
ner As the Legislature Of that State may de.
| terminei ant As far As its capacity to receive
I L. H.RI NI.aI a.
| full control over the subject. But the creation
l OF the capacity In the new corporation is an
entire different thing from the attempt to
| transfer from the national corporation its
| property. The powers and mode OF action of
| the national corporation depend wholly upon
the action Of the national legislature.
am further Of opinion that when snationAl
banking association has taken the proper
| measures for Its own dissolution, in conform.
| ity with its article OF association, and under
the provisions of the act OF Congress OF June
| ., 1854, such dissolution 10 not complete until
| the necessary action has teen had for the re-
| demptlon Of its circulating notes, either by
| actually redeeming them and surrendoring
| them to the Comptroller Of the Currency, OF
\ by depositing an amount of Treasury notes
| with him adequate to their redemption AS
provided by that acti and that, until these
acts are completed, the existence of the ma
! tional banking association continues under
| the laws that Its capital cannot be lawfully
! distributed among Its shareh folders, or trans.
TERED TO any other person or body corporstei
|
Comptroller Of the Currency In the manner
| aud to the extent prescribed by the act of Don.
| gress TO the same extent as before its liquids
| ton commencedj that II Is still required to
| make regular and proper reports and returns
| OF its condition TO the Comptroller in the
manuer prescribed by the statute; that 1t is
| subject to the penalties which the statute pro-
vides for failure to make such returns; that
| its obligation to keep its reserve of lawful
money still continues; that Its directors must
| still be the owners Of so much Of its capital
| stock as the statute directs, and that Il 10 un.
| lawful to eRdanger the lien Of the United
| states upon Its assets by = transfer OF them
| without ctrer confederation than the formA.
| ton OF new banking association by the
same stockholders. 1t follows as = conse.
! quence that whatever remedies the act Of
Congress gives for a violation of its pFovis
ions may be pursued by the Comptroller of
| the Currency.
Whether such remedy is to he found In OBJ.
| tanning decree Of frrfcitre and appointment
| OF = receiver, ~ The cNactlOu and collection OF
| penalties or by an Injunction from y court OF
| equity to restrain acts from which loss or dan.
| ger to the rights Of the United States may be
reasonably Apprehcndeh, will depend, OF
| course, upon the special facts OF the case, aud
| upon the nature and extent OF the violations
OF its corporate duty, which the National
BANKING Association, Undertaking to dissolve
Its corporate existence and liquidate ita
affairs, may be found TO commit.
| return herewith the papers transmitted,
| lhavs the honor to he, very respectfully
your ohedient servant, Il. r. HOAR,
Attorney General.
Hon. GEO. =. BOUTWELL,, Sery Of Treasury