Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1886-12-16
NATION BANKS.
Comptroller Trenholm Submits an
AmeBdatOry Bill Relating to
Banking Associations.
I BY telegraph TO the Dlspatc

Washington, December lj.-COmptr)ller
Trenholm appeared before the House Com
mittcc on Banking and Currency to-day bY
request to state his views touching the IA.
uonal banking system. The Comptroller
stated to the committee that he was not yet
fully prepared to suggest scheme OF re-
organization OF the present system, but be-
lieyed that he would be able to suggest u
practicable plan some time in January next.
Meanwhile he submitted for the cOnsidera-
tion Of the committee a draft OF a bill
amondatOry Of the laws relating TO national
banking associations.
The lst section Of the bill provides that
the cath required to be taken by the officer,
OF banking associations may be administer
ed by nited states commissioners, n0tirles
public, and othtI officers using an official
seal
The 2d clause authorizes the assistant
cashier to make certificatiOnS and Yerit'a-
tions in The absence or disability OF the
cashier The signing Of certified note, Is,
however, excepted from the duties thai
NAV be- 50 tIan,fc rred.
The 3d section provides that il any per
son designated by the Comptroller to eX.
anime the affairs IL a bank shall make any
ldi~t tilliN III hitF NNiAAiHA Ut hiAAAt ~ NhN
Comptroller with intent 10 deceive he
shall be deemed guilty Of a misdemeanor
and punished by imprisonment.
The ith section proposes TO amend section
j,2O9 of the Revised statutes by adding
after the word association in the eleyent
line the words, "Or comptroller OF cur
lency.'
The 5th section requires that bonds re-
gntrfH n Ia Lnnf 1gnpsIf in the Trpu.
Jury a. basis for circulation shall be In
tercst-bearng. and when such bonds ar
called thev must be replaced within three
months after notice by lnterest-be ring
bonds, and in default the Comptroller Is
authorized 10 appoint receiver 10 close
up the affairs Of the bank. In case
the bonds deposited TO secure circu-
aIion exceed the minimum amount
required by law the excess may
be placed with other Understanding
bonds, or circulation secngrd by the excess
shall be surrendered by the association;
whereupOn the excess sn II be delivered By
the Treasurer OF the United States TO the
secretary OF the Treasury for redemption,
with instructions TO deposit from the pro-
ceeds with the Treasurer lawful money TO
the amount OF the outstanding circulation
secured by such bonds. and hold the rest
due on account Of the association holding
the bonds.
The 9Th section provides that boards OF
directors shall be constituted OF not le,-
than five directors, exclusive Of the vice.
president and Of the cashier, II he be 4
member Of the b ard.
The 7th section makes II unlawful for the
bank to take, either in its own name or that
Of any corporation or person, for Ms Dene'
ft. any mortgage upon real estate a. Sc
curity for cOntemp0raneOus loan or for
advances. But no association sprohibited
from discounting any bill of exchange or
promissory note not having more than four
months TO run. although the sane may b.
secured by real estate, when discounted for
an eadOrser In the ordinary course OF bu>i
ness and when the mortgage or lien Is
merely collateral.
The Sth section provides that section
5000 OF the Revised Statutes regarding
total liabilities shall not apply 10 iolns
made upon collateral security Ut least equal
in value 10 the amount payable. But 1t l.
stipulated that be total liability OF any per-
son or firm to the banking association. in-
cluding the loan or collateral, shall not AT
any time exceed 10 per cent. upon the a..
gregate OF IT, paid.in capital stock and sur.
plus fund, minus 90 per cent. OF the capital |
required by law to be retained.
The 9th section provides that an assoeia- |
lion making loans contrary IN law shall be |
subjected TO a penalty, which Is not speci- |
lied In the draft.
The 10th section provides that all penal |