The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1886-12-16
Comptroller TrenhOIm's Views on
the National Bank ing system.

WASHINGTON, December Is Comp
troller Trenholm appeared before the
Committee on Banking and Currency
today, by request, to state his views
touching the national banking system.
The Comptroller stated TO the COM
mittee that he WAS not yet fully pre-.
pared to suggest scheme OF reorgan-
izatlon Of the present system, but be-
lieved he would be able 10 suggest q
practicable plan some time in January
next. Meanwhile he submitted for
the consideration of the committee q
draft of bill amsndstory OF the laws
relating to national bank assoc ions.
The fiTst section Of he bill provides
that oaths required to be taken by
officers OF banking as oCations may
be administered by United States
Comm ssioners, notaries public aud
other officers using an official seal.
The second cause auhoriz s the
assistant cashier TO make oerifca-
tons aud verifications ia tho absence
or disability Of the cashier, The sign.
ing OF certified notes are, however, ex-
cep.ed from the duties that may be 60
transferred.
The third section provides that If
any person designated by the Comp
troller to examine the affairs OF q
bank shall make any false entry in
any statement made to the Comptroller
with intent to deceive no shall be
deemed guilty Of a misdemeanor, and
punished by imprisonment,
The fourth eection proposes to
amend section 500, Revised Statutes,
by adding after the word "aesociR-
tion," in the eleventh line, the words
"or the Comptroller of the Currency.
The fif.h section requires that the
bonds required to be Kept on deposit
In the Treasury as q basis for crCula
ton shall be interest bearing, and
when such bonds are called they must
be replaced within three montbs sfser
notice, by interest bearing bonds, and
in default the Comptroller is author
lied to appoint receiver to close up
the shairs OF the bank. In case the
bonds deposited to eecuIe circulation
exceed the minimum amount required
by law the excsst may be placed with
other interest bearing bonds, or the
Calculations secured by the excess
shall not be surrendered BY the asso-
citation, whersupon the excess shall
be delivered by the Treasurer OF the
United states to the Secretary OF the
Treasury for redemption, with instruc.
tlone to deposit from the proceeds
with the Treasurer lawful money 10
the amount OF the outstanding circu-
lation secured by such bonds, and hold
the residue on account OF the associa-
tiou holding the bonde.
The sixth section provides that no
boards OF directors shall be conati-
tuted OF less than Ave directors, exclu-
sivs Of the vics president and the
cashier, il he be Il member Of the
board.
The seventh section makes II uu-
lawful for 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 a con-
temporaneous loan or for advances;
but no association is prohibited from
discountiDg any bill of exchange or
promisSory note not having more
than four months TO run, although
the same may be secured by real GO.
tate, 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 800, Revised Statutes, regard
ing total liabilities shall not apply 70
loans made upon collateral security at
least equal in value 10 toe amount
payable, but 1t is stipulated that the
total liability Of any person or firm to
a banking association, inclu ling loan
or collateral, shall not at any time ex.
coed TOPPER cent. npon the aggregate of
it's paid in capital stock aEd surplus