Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1873-12-11
Liability Of stockholders of National
Banks.

Verify, ''a wicked thing is a calumniator."
We understand that falsehood has been in
dustriously circulated throughout the coun-
ty to the effect that holders of st, OK in nation
al banks are not held liable. by law, for seeu-
rity of individual deposits. To show the
| baseness of such statement, we would call
attention to the twelfth section of the Nationa1
Bank Act, which specifically provides that
holders of stock in associations formed under
the provisions of said act are held individual
| ly responsible "fUr all contracts, debts and
engagements of such associations, to the extent
of the amount of their stock [sharesl therein,
in addition to the amount invested in such
shares in other words, for double the amount
of their stock. From this it will be seen that
ample provision has been made by the trainers
| of the law for the protection of depositors in
| national banks,
Furth ermore, it is absolutely required, BY
4 la W, that banks organized under the provis
ions of the Nutional Bank Act shall at all times
| couform thereto in the keeping on hand and
available a specified reserve fund, sufficient
| Ill the usual transaction of business, to meet
the demands of depostors--the condition. ,of
| the several corporations working under the
| act helng liable to inspection by the Controller
| OF the Currency; who may call for detailed re-
l
| as he may deem advisable and necessary, the
| time when such reports may be called for be
| ing always unknown TO the banks, and com
| piled from their business statements, accord
ing to form furnished at date previous TO the
calling for such reports. The truthfulness of
the reports must be sworn to by an officer of
| the bank, under seal OF q notary public, and
attested to by three members of the board of
| directors of the association; and publication
thereof is required, in due form, in newspa
per where the bank is located Thus it will
! be observed that national banks have no
chance for lodging their duties and liabilities
to depositurs. There is no. wildci.tism. no
loose partnership. nor-re reckless management of
their affairs tolerated.
That the national is the safest, best system
| of banking yet devised in this country has been
cUnclusIvey exemplified 10y the panic out of
| which we are just enIanating. While $50
| called) private and loose partnership banks,
under the punic's pressure, reeled, tottered and
| fell on every hand, but one, we believe-only
one operating under the nn tional system, was
compelled 10 succumb to the arbitrauent OF
compulsory closing OF its doors.
National banks receive ninety per. cent. in
circulating notes for Government bonds; depos
tied with the U. s Treasurer. The First Ma.
tonal Bank OF this place has a circulation oi
Sl8U,OOO, it having deposited $2U0 900 in
bonds to secure the same, which, it will be
conceded is sufficient security. For this rea
son, doubtless. it was that government Uf1i
cial high in authority is reported to have said
that note OF broken national bank is bettel
than ''green back"
/ The stock of the First National Bark is now
held as follows, in shares of one hundred dol
lars each: