The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1882-02-11
The Extension of Bank Charters.

The bill to extend the charters of national
banks, agreed upon by the Committee ON
Banking and Currency, and reported to the
House on Tuesday, was accompanied by
comprehensive report upon the present situa-
ton of the banks. The bill provides that the
consent in writing of not less than two-thirds
of the capital stock of the association shall be
required to the amendment of the articles of
association in applying for an extension under
the provisions of the act, and such consent
shall be certified by the President or Cashier
to the Comptroller of the Currency, and 1t is
made mandatory upon the Comptroller of the
Currency to grant or withhold his certificate
of approval as the cxamination-provided for
by the act-may disclose that the affairs of
the association are in a satisfactory condition
or otherwise. Three new sections are added.
Section provides for the disposition of stock
by any shareholder who may refuse to consent
to the extension. Section 6 provides for the
cancellation of the old notes and the issue of
new ones to banks extending their charters.
Section provides that national banks which
do not avail themselves of the provisions of
the act and whose corporate existence shall
expire, shall be required to comply with the
provisions of the Revised Statutes in the same
manner as if the shareholders had voted to go
into liquidation.
BY the terms of the National Banking act
the authorized duration of banking associa-
ton was limited to the period of twenty years,
which limit has been reached. 1t has been
suggested that, in the absence of legislation
extending charters, the banks could reorgan-
ize and go on under different names. but the
committee believe there are advantages at
tending the extending of their charters which
cannot be gained by any reorganization. The
banks hold undivided profits and surplus in
i I'll ...,.af,l 10
SIs4, 900. 600. Had it not been for this fund
very many would have been unable to have
stood the panic of 1878. From 1876 TO 1879,
inclusive. the losses of the banks, through the
failure of debtors To pay their obligations.
aggregated $50. 81, 069. Such, however, was
the strength afforded BY the fund of undivided
earnings that no serious consequences fellow
ed. he refusal or neglect to extend existing
organizations compcls the division OF this ae-
enmuated surplus. BY continuing their char
tiers banks which have gained good reputa
lion viii resp the advantages therefrom, the
expenses and Inconvenience incident to d
new organization will be avoided, while the
trust funds invested in national bank stock
can legally continue under the extended char
tiers, which could not be carried To new or
CARNATIONS.
Ia the absence Of any authority TO continue
their business. within the next twelve months
S93 b.snks mast 90 into liquidation This
will compel the Withdrawal Of SOP, Ice. $50 OF
lawful money now IN active circulation, ia or
der u procure S55,76s.700 United States
bonds lodged with the Comptroller. Upon
one single day-Feh. y, iSs,i-;he charters
Of 81 hanks will expire. involving the retire
ment To The Treasury of ss,4,eO0,oO0. Il i
Hot difficult; 60 conjecture she influence Of such
+ a contraction Of the currency upon the bust
ness Of the country aud the values Of property,
F even il every national bank should reorganise
F b. forming a new association under the exist
ing law