Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-30
The Natlonal Bank Charters BIN.

Inc NatluH1A Danh NudEl6Ic Dill
The bill for the extension of the exist
ing charters Of the national banks, which
first passed the House, and then, having
been amended by the Senate, also passed
that body, is again in the hands of the
Senate, the House having refused to con-
cur in certain of the Senatorial amend
ments. The measure will be submitted
70 a conference committee, which will
probably come to a speedy understand
ing, and the bill will therefore become
law some time before Congress sdjourns.
As the bill now stands it makes pro-
vision for the extension or renewal Of
charters which expire under the old law
limiting such charters TO twenty years,
for the period Of twenty years longer by
consent Of shareholders owning not less
thsn two-thirds Of the capital stock who
may desire 10 avail themselves of the
privilege. they being first required to
submit 10 a special examination by Or
der OF the Comptroller of the Currency
70 show that the affairs Of the bank are
in a satisfactory condition. 1t is also
provided that shareholders not willing
TO continue their investment into the ex-
tended term shall be paid the cash value
of their stock by the association as as
sessed in the usual form of arbitration
and approved by the Comptroller of the
Currency. New notes are to be issued
in place OF the old notes at the expense
az the banks extending their charters,
sad the government is to have the bene-
Fl Of any gain that shall arise from a
failure to present the old notes.
The provisions above enumerated ap-
Ply exclusively to the subject of charter
extension The following is con-
densed statement of the provisions of
The bin, which spply to all national
banking Institutions:
Il. National banks may henceforth
be sued in State courts the same as banks
not organized under United States laws.
with the restriction that no attachment,
Injunction OF execution shall be issued
before final judgment in the State or
local court.
p. Banks with a capital of $4,000
OF less may reduce their circulation to
onethird Of their capital, provided that
the amount Of their circulating notes
shall at no time exceed 80 per cent. of
the face value Of the bonds deposited TO
secure the same. By another section it
IS stipulated that q bank Withdrawing
its circulating notes in cOnfOrmsnce with
this privilege shall not be permitted to
increase It's circulation within period of
SIX months thereafter, and that not more
than g 600, 900 Of the circulating notes
in the aggregate shall be withdrawn
during any one month.
50 Il is provided that the Secretary of
the Treasury shall issue gold certificates
in exchange for the deposit of gold coin
Ia the same manner that silver certifi-
cafes are now issued: that both gold and
silver certificates may be held by Che
banks and counted as a part of their
lawful reserve; aud that no bank shall
Dc a member Of a clearing house associa-
ton In which gold and silver certificates
~DA.A MWA " ANlAANNA III 0IANANAANnA VI
ha'ances. To prevent the withdrawal of
gold from the Treasury under the re-
sumption act in order TO deposit it in
exchange for certificates, the Secretary
% the Treasury is required to suspend
the issue Of gold certificates whenever
the redemption gold reserve in the Treas
ury falls below the sum of 500, OOO coo.
"A The Secretary of the Treasury is
also authorized TO exchange per cent
bonds for the 81 per cent. extended
bonds The former, like the latter, will
be rg&eeinsble at the pleasure Of the gov
trument, with the restriction that they
shall not be called % long as there are
higher interest bonds outstanding which
are subject to call. There is some guar
sniee OF a longer tenure Of the bonds in
this provision which will probably in
duce the banks to wish for the exchange
as soon IS the bill shall become law.
IS The generalization of checks is
male a penal offense, and every officer
and clerk Of a bank who shall be guilty
thereof Is subjected to a fine of not more
than 5000 and Imprisonment for not
more than I've years.
Il viii be seen that, should these pro-
visions be embodied in the bill under
consideration as it finally passes, our ma
Uoual banking system will be greatly
changed. and much Of the danger which
now attaches thereto will be eliminated.
The clause allowing national banks to be
sued in State courts the same as banks
not organized under United States laws
Is specially commendable. Ii brings
those institutions more directly in sub
oriinatiOn 10 the State governments,
and thus largely removes the principle of
nationalism from the sYstem-a step
which must meet the approval of all
true friends Of our system Of government
who sre true 10 the principles upon which
TIE Republic was founded, and do
not believe that the doctrine of
safe sovereignty, the corner stone
Of the Republic, was obliterated by
the war. The clause which restricts
tie powers Of the banks in the matter of
Withdrawing their circulation at will is
also an exceedingly wise provision. The
Danger Of the power heretofore vested
in these institutions was demon
stsated by the banks themselves when,
during the Hayes administration, they
threatened BY concert Of action TO pre-
cipate a financial panic upon the country
unless Congress would legislate to suit
their wishes, OF if the legislative depart
mcnt Of The government would not make
itself subseruent to them unless the
Executive would veto bills of which
they did rot approve. This opened the
ewes Of the whole country to the immense
power for evil welded by the banks. and
led to the cuvtsilment Of their privileges
as herein noted.
We notice that certain financial jour
nals q the North arc violently opposed
10 the fifth clause of the bill above quo
ted, via. the prohibition of the overcer-
TIC ton Of checks by the banks The
New York Financial and Commercial
Cln0nislC. for instance, claims that It is
not possible for bank to pass day
without being required to pay a check
where there Is not sufficient money to
meet it. ard that this bill proposes
making the officers (of bsnks) mere pup