Savannah morning news. [volume] (Savannah) 1868-1887, 1886-12-16
TRENII0LM'S BANK VIEWS
A PRELIMENARY DRAFT OF HIS
NEW BILL SUBMITTED.

gsges on Real Estate Ruled Out-A
Chance for Embarrassed Banks.
WASHINGTON, Dec. 15,-Comptroller
Trenholm appeared before the House
Committee on Banking and Currency to-
DAY, by request, to state his views touch
ing the national banking system. The
Comptroller stated to the committee that
be was not yet fully prepared to suggest
scheme of reorganization OF the present
system, but he believed that he would be
able to suggest alpractical plan some time
in January next. Meanwhile he submit
ted for the consideration OF the commit
tee draft of bill amendatory of the
laws relating to national banking asso-
Citations. The first section OF the bill pro-
vides that the oaths required to be taken
| by officers of banking associations may
be administered by United States COM
missioners, notares public, and other
officers using an Official seal,
CERTIFICATIoNs AND vERIFICATIoNs.
The second clause authorizes an as
| sistant cashier to make certi6cations and
verifications in the absence or disability
of the cashier. The signing of certified
| notes is, however, excepted from the
duties that may be so transferred.
The third section provides that If any
| person designated by the Comptroller to
examine the affairs OF bank shall make
any false entry in any statement made to
| the Comptroller with the intent to de-
ceive, he shall be deemed guilty of mis-
demeanor and be punished by imprison-
ment.
The fourth section proposes to amend
| section 6209 Of the Revised Statutes by
adding after the word ''associatiOn" In
the eleventh line the words ''or the Comp
troiler of the Currency"
BONDS ON DEPOSIT.
The fifth section requires that the bonds
required to be kept on deposit IN the
| Treasury as basis for circulation shall
| be interest bearing, and when such bonds
are called they must be replaced within
| three months after notice by interest
| bearing bonds, and IN default the Comp.
| troler is authorized to appoint receiver
| to close up the affairs OF the bank. In
case bonds deposited to secure circula-
tion exceed the minimum amount re-
| quired by law the excess may be placed
| with other interest bearing bonds, or the
| circulation secured by the excess shall
| be surrendered by the association. where
| upOn the excess shall be delivered by the
| Treasurer OF the United States to the Sec
| retary of the Treasury for redemption,
with instructions to deposit from the
| proceeds with the Treasurer lawful
monev to the amount of the outstanding
circulation secured by such bonds, and
| hold the residue on account OF the asso-
| citation holding the bonds.
BOARDS OF DIRECTORS.
The sixth section provides that boards
| of directors shall be constituted OF not
less than five directors, exclusive OF the
vice-presldent and of the cashier, II he be
| a member OF the board.
The seventh section makes it unlawful
| for a bank to take, either in its own name
| or that of any corporation or person, for
| its benefit, any mortgage upon real estate
as security for cOntemporaneous loan
| or for advances. But no association is
prohibited from discounting any bill of
| exchange or prOmissory note not having
! more than four months to run, although
| the same may be secured by real estate
when discounted for an indorser in the
| ordinary course of business, and when
the mortgage or lien Is merely collateral.
The eighth section provides that section
! 300 of the Revised Statutes, regarding
total liabilies, shall not apply to loans
| made upon collateral security at Least
| equal In value to the amount payable,
| but 1t 10 stipulated that the total liability
of any person or firm to banking assocI-
alton, including loan or collateral, shall
not at any time exceed 10 per cent. upon
| the aggregate Of its paid in capital stock
| and surplus fund, minus the ~ per cent.
| capital required by law to be retained.
The ninth section provides that associa-
! tons making loans contrary TO law
| SHALL be subjected to a penalty which is
not specified in the draft.
COLLECTING THE PENALTIES.
The tenth section provides that all pen
| alties provided by the act shall be as
| sessed against the offending association
by the Comptroller subject to an appeal
| 10 the Secretary Of the Treasury, and in
| default of payment shall be withheld by
he Treasurer from the interest of the
bonds deposited, aud If that be not suffi-
clent the balance shall be recover ed
| through suit.
The eleventh, twelfth, thirteenth and
| fourteenth sections relate to suplus funds.
| They provide that whenever the surplus
fund of anv bank shall exceed by 20 per
| cent. the amount Of its capital stock, the
| shareholders may be relieved OF the indi-
vidual responsibility imposed by section
5sl5l of the Revised Statute and every as
socIation may be relieved OF such liza.
| bility in the proportion which the sur
plus, after deductine the 20 per cent.
| reserved, bears as the whole amount
I
ever. can be obtained through any process
by which any portion OF the capital stock
| NAV be converted into the surplus. In
| case the surplus is reduced by loss or
| otherwise below the amount required for
| exemption the association is required
after notice to pay the deficiency by as,
sessment upon the shareholders, and il
the deficiency be not made good the bank
is TO be placed in the hands OF a receiver.
The fifteenth section provides that banks
designated by the Secretary OF the Treas
ury as repositories of public money,
which have deposited bonds for it's safe
keeping, shall not be required 10 keep on
| hand any reserve above the amount oil
such deposits.
The sixteenth and last section empow.
ers the Deputy Comptroller TO perform
such duties as may be assigned to him by
the Comptroller
FAILED BANKS.
| A supplement 10 the bill relating to
| failed banks provides that where assets
| of any insolvent association for which a
receiver has been appointed shall be suf-
| fcent TO pay all creditors in full the asso-
citation shall not be deemed TO be dis
solved, but after the delivery OF the assets
TO the agent OF the shareholders the assO-
| citation shall be entitled To resume busi-
ness II shareholders owning two-thirds OF
the capital stock shall decide to do so.
Before resuming business. however, the
association is required to restore the en-
| tire amount Of It's capital stock. Upon
approval OF the Comptroller the amount
OF capital stock may be reduced before