Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-06-28
Bank Charter Extension Bill.

The main points Of this bill, which passed the
senate last week. are as follows: Any national
bank may, previous to the expiration OF Its cor
porate existence under the present Jaw, extend
Its period of succession for a term Of not more
than twenty years from the expiration OF it, pres
ent charter. In the case of every bank seeking to
extend its charter, the comptroller OF the currency
Is directed by the bill to cause a thorough exam
nation to be made OF the banks affairs, and to
grant the extension only II the result is satisfac
tory. In suits hereafter In which a national bank
may be a party, jurisdiction shall be the same a.
in suits by or against banks This bill further
provides that no attachment injunction or execu-
ton shall be issued against national bank before
final Judgment in any action in any state court.
The circulating notes OF any bank so extending its
charter shall be redeemed and replaced by notes
OF new design. National banks now organized,
or hereafter organized, having capital of $780,,
900 or less, shall not be required TO keep on de-
post, or deposit with the treasurer OF the United
States, United States bonds in excess OF one-third
of their capital stock security for their circulat-
ing notes; and such of these banks having ON de-
post bonds in excess of that amount are author
lied to reduce their circulation by the deposit of
lawful money provided that the amount OF such
circulating notes shall not in any case exceed
ninety per cent of the par value Of the bonds de-
posted. Section nine allows the bank to deposit
lawful money for the purpose of redeemng their
bonds held as security for circulation; but bank
thus withdrawing any portion OF its circulation is
not to be allowed to increase its circulation again
within six months thereafter; and not more than
So 600, OO0of lawful money shall be deposited dur
ing any calendar month for this purpose. Sec
ton ten provides that the banks shall receive
from the comptroller circulating notes equal in
amount to ninety per cent Of the current value OF
the bonds deposited not exceeding par, and at no
time shall the total amount OF such notes issued
to any bank exceed ninety per centum of the
amount at such time actually paid in of its capital
stock. Section eleven authorizes the refunding
of three and a half per cents into three per cent
bonds Section twelve authorizes the issue of
gold certificates, and such certificates also sill
yer certificates, when held by any national bank
shall be counted part Of its lawful reserve;
and no banking association shall be member of
any clearinghouse In which such certificates shall
not be recevablen the settlement of the clearing
house balances, provided that the secretary of
the treasury shall suspend the issue OF such gold
certificates whenever the amount Of gold coin
and gold bullion in the treasury reserved for the
redemption Of United States notes, falls below
000 and the provisions OF section 5 207 of
the Revised Statutes shall be applicable to the
certificates herein authorized and directed to be
issued. Section thirteen provides penalty of
OF So 600 fine or five years Imprisonment, or both,
for any bank official who shall certify checks be-
fore the amount hereof shall have been regularly
credited on the books to the maker of the check