The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-07-24

con mission appointed by him, as to the |
banRs condition and compliance with |
the law; and the bank must moreover
transfer and deliver in trust 10 the
Treasurer of the United StNtes, bonds
OF the United States to an amount DINO t
less than one-third of its capital stock
paid in, and in no case less than $50, 90;
and may then receive from the Comp
troIler circulating notes n blank, regis
tered and 3countefsigped.7 equal in
amount to- ninety per cent, Of tRe- par
vaIue of enid. bonds. if the capital paid
DO les than s5SO,eQQ. Ii over $oO0, 100
and less xhan 81 ,ee0 Of paid capital
eighty per cent; and IL exeeaalHg q
million, then seYentyfiYe per cent And
these circulating notes cOnstitute whai
we call Naafonab bank cuUreaey. %
By this actiOi 1s64, she entire. am9upt
OF notes for circulation to be issued Is
limited TO three hundred millions. but
this anionptswas increased by the, act OF
July Ia, 1870, 10 fifty -iour miIlieAs mpre.
The plates and dies for these notes are
engfav eaounder tue q uthonity and lsppef-
vision of the Comptroller and Secretary
of the Treasury; and only ene-stxth
part of the notes canIbe of denSmipa-
tionsi r1ess than five dollars; and after
specie, resumption /, no note less than
i've dollars can be issued. hla 4Is.58
The U. 8. bends transferred to the
| Treasurer are in trust for the redemp-
tion Of these notes OF circulation, and
fefipo otherpurposewhnts The iu-
terest on, the bonds, however, accrue 80
the bank while thus held in trust, pro-
sidad the bank has not failed to redeem
| its own circulation. Tile. bank can hold
real estate TO only limited extent. Il
must not permit liability from any one
person or company beyond cne-tenth OF
capital stock paid in. It may charge
the rate of interest allowed BY the laws
of the State where located, and no
4 more; and II more be taken, IL forfeits
all the interest, and is liable to an
action for twice the amount of interest
paid. ."' "+1 -ri.Hs .-
| The National banks in the principal
cities are required to keep on hand a re-
serve OF ''lawful money" equal in amount
10 25 per cent. Of their deposits and
notes in circulation; and in other places,
| 10 per cent. Ii the res erye be reduced
ibelow these proportions no new liabili.
ties can be created nor dividends paid
until the reserve is made good; and un-
less made good in thirty days after no.
Itice from the Comptroller, he may ap.
point receiver to wind up the business
of the bank. City banks must moreover
lkeep one-half Of this lawful money re
calculating notes in that city.
In case any bank fails to redeem its
notes when duly presented, the holder
may cause the same to be protested and
notify the Comptroller OF the fact; and
he shall immediately cause examination
to be made. Ii satisfied of the fact oi
such default, he shall, within thirty
days after such notice, declare the
United States bonds deposited in trust
to be forfeited; whereupon the circalat-
\ ing notes of such defaulting bank are
paid on presentation at the United
States Treasury, and the bonds may be
iseld for the reimbursement OF the Treas
ury. The Comptroller will moreover at
once appoint a receiver, who takes nos.
session of all its assets and proceeds to
wind UP the deiaulting concern for the
ibeneit OF its creditors.
The bonds held in trust for Nationa
bank are not taxable. But the shares O
lstock in the hands OF stockholders art
taxable under the laws OF a State where
located. Butif the State has no law fel
taxing shares in the banks of that State
LIT can not tax the shares Of stock ii
National banks; because the Nationa
lbank law fefbids any discriminatieI
, against National banks. Tue Natiuna
banks are moreover taxed in various
ways, upon their circulation, their de
Iposits, and ON the amount of their capl
tai stock beyond the amount invested II
IU. s. bonds, besides other assessment
for expenses in preparing circulating
notes. &c.
This outlines the general principle
lup0n which our National bank system
proceeds; but its numerous details o
, minor matters can not of course her
be given. In view Of the expert
ence OF dozen years it must b
conceded that the National bank
/ have given US q currency more uniiorr
/ as to the whole country than an
! the country ever before enjoyed. Their
/ | is under this currency, no more Shawn
of bank notes when passing from on
part of the country to another, or fror
\ state 90 State. Even the opponents Q
: the National hank system do not com
, plain of the banks in this regard; bu
base their opposition on the ground
that Governments ought directly, and no
I thus Indirectly, furnish, upon its owl
, responsibility, all the money Of circuls
! tion 60 be used by the people. Upon thi
Question we have now neither time
tsnaaa nar inalina finn to amhark