Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-05-20
Extension Of Bank Charters.
SYNOPSIS OF THE BILL.


WASHINGTON, May 19.-The bill TO enable
the national banking associations to extend
their corporate existence as it passed the
house today provides that any national
banking association may at any time withir
two years next previous to the date of the ex
piratioa OF its corporate existence under the
present law aud with the approval OF the
comptroller OF the currency, extend It's
period of succession by amending its artl-
cles of association for term OF not more than
two years from the expiration OF the period OF
succession named ia the new articles of asso-
citation and shall have succession for such ex-
tended period, unless sooner dissolved by the
act of shareholders owning two-thlrdssOf lis
stock, or unless its Franchise becomes forfeited
by Some violation of the law. Snch amend
mrnt Of the articles of the association must
be authorized by the consent, in writing, OF
shareholders owning not less than two-thirds
of the capital of the association.
Section S refers to the duties of the
comptroller of the currency in the premises,
providing for special examination into the
affairs of each association, should he deem 1t
necessary.
Section ( has reference to the jurisdiction of
suits by or against banking associations show
ing such SUITS on the same footing In respect
to jurisdiction as suits by or against private
banks.
Section 5 provides that when any national
banking association has amended its articles
of association as provided in this act and the
comptroller has granted his certificate of ap-
proYal, any shareholder not asserting to such
amendment may give notice in writing to the
directors within thirty days after the date of
the certificate Of approval of his desire to
withdraw from said association, in which case
he shall be entitled to withdraw the value OF
the shares so held by him.
Section 6 provides for issuing new circu.
lating notes to take the place of the old.
Section refers to such banks as do not
desire TO extend their charter, and extends the
franchises OF such association for the sole
purpose Of liquidlting their affairs until such
affairs are dually closed.
Section is in the following words: "That
national bank now organized or hereafter to be
organized, having a capital OF $l50,000 or less,
shall not be required to keep on deposit with
the treasurer of the United States, United
States bonds in excess of 100000 as security
for their circulating notes, and such OF those
banks having on deposit bonds in excess Of
that amount, are authorized 10 reduce their
circulation by the deposit OF lawful money as
provided by law"
Section 10 provides that any national bank
ing association now organized or hereafter 10
be organized, desiring To withdraw its circu-
lating notes, upon deposit Of
lawful money with the treasurer
of the United States as provided in section 4
of the act of June 20, 1874, entitled, "An act
fixing the amount of United States notes, pro-
vIdiug for the redistribution OF national bank
currency and for other purposes" shall be re-
quired to give ninety days notice to the sec
rotary Of the treasury of its intention to de-
post lawful money and withdraw its circu-
lating notes; provided that not more than
$4,000, 000 of lawful money shall be deposited
during any calaEdar month, and provided fur
Their, that the provisions of this section
shall not apply to bonds called for
redemption by the secretary OF the
treasury, but when bonds are called for re-
demption the bank holding such called.bonds
shall surrender them within thirty days after
the maturity of their call.
Section II provides that on deposit OF bonds
the association making the same shall be en-
titled to receive from the comptroller of the
currency circulating notes equal in amount
to 90 per cent. OF their current market value
not exceeding the par OF United States bonds
so transferred and delivered, and repeats
sections 5,17l and 5,176 of the revised
statutes.
The concluding section reserves the right
to congress at any time to repeal this act and
the acts OF which 1t is amendatOry.