The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-06-24
NATIONAL BANKING LAW SYN
OPSIS.

Section 5l33. Associations for
carrying on the business of banking
under this title, may be formed by
any number of natural persons, not less
in any case than FIVE"
Sec. 5I37. Associations shall be
organized under this title with a less
capital than one hundred thousand
dollars; except that banks with a CAPT
tai of not less than fifty thousand dol,
lars may, with the approval of the
Secretary of the Treasury, be organ
lied in any place the population of
which does not exceed 5000. No as
ISOLATION shall be organized in a city
the population of which exceeds So
900 with a less capital than two hun
dred thousand dollars"
Sec. 5l5l. The shareholders of
every national banking associ 4tion
shall be held Individually responsible,
equally and ratably, and o for n
another, for all contracts, debts, and
engagements of such association, to
the extent of the amount of their stock
therein, at the pr value thereof, in
addition to the amount invested in
such shares"
This applied to all banks save those
that have an actual capital of five
millions or over.
Sec. 5l53. All national banking
associations, designed for that purpose
by the Secretary of the Treasury shall
be repositories of public money, en,
cept receipts from customs, under such
regulations as may be prescribed by
the Secretary, and they may also be
employed as financial agents of the
government, etc. etc. The Secretary
of the Treasury shall require the asso
citation thus designed to give satisfac
tory security by the deposit of United
States bonds and otherwise for the
safe keeping and prompt payment of
the public money deposited with
them"
Sec. 5l57 prohibited the issuing of
more than 354 millions of dollars.
The act to provide for the resumption
of specie payments repealed the sec,
ton just recited and in lieu thereof
enacted "and each existing banking
association may increase its circulat,
ing notes in accordance with existing
law aOathOW re pect to SAID aggregate
limit, and new banking associations
may be organized in accordance with
existing law without respect to sald 0g
gr4gate bmat," and then repealed the
law for redistribution of national bank
currency among the States and Terri,
tories.
The act of May 81, 1878, made the
further retirement of legal tender
notes illegal and fixed the amount at
the then circulation, S346, 900, 900.
Sec. 5l82 says any association
under this title "that has caused its
promise 10 pay such notes on demand
to be signed by the president and
cashier thereof in such manner as 10
make shem," (now mark the language
of the law obligatory promissory
notes payable on demand, such asso
Citations may issue and circulate the
same as money" And the same shall
be received at par in all parts of tt
United States in pay nent of taxes,
excuses, public lands and all other dues
to the United States except duties on
exports; and also for all salaries and
other debts and demands owing Y
the United States to individuals cor.
porations and associations where the
United States except interest on the
debt and in redemption of the nation
al currency"
RESERVES.
Sec. 5l9l specifies certain citi4s as
reserve cities but under the act to
provide additional reserves.
Sec. 2 it is provided "that when.
ever three fourths in number of the
national banks located in any city of
the United States having \ population
of 200, 900 shall make application, the
Comptroller nay have authority in
conjunction with the Secretary OF the
Treasury to grant such requests, and
that such banks then shall have at all
times on hand in lawful money of the
United States 25 per centum of its de-
posts.
Sec. 519l provides that "every
other association shall at all times
have on hand in lawful money of the
United States an amount equal to at
least Is per centum of the aggregate
amount of it's deposits"
Sec. 5I92 provides that "~three-ffths
of the revenue of fifteen per centum
Chat is 9 per century required by the
preceding section to be kept may
consist of balances due to an associa-
ton, available for the redemptin of it's
circulating notes, ETC., e:c. Clearing
House certificates representing specie
or lawful money specially deposited