The Washington times., 1902-12-01

1902; declined to Il in 1897 and 1898, but
rose TO 14l7 in 1900. to 1449 in 1901. and
to 14.S4 in 1902 At the close Of the last
fiscal year OF the total money in the
country 81. So, ,266. .g5s) but $3.50, ,476, 1894
was in bank note currency.
Voluntary Liquidation.
Within a period Of three years subse-
Quent 10 the establishment of the ma
tional banking system. fourteen associa-
tions had been placed in voluntary liqui-
dation under the provisions Of section
1920 Of the Revised Statutes Of the Unit
ed States-that is. by vote Of sharehold-
ers owning two-thirds Of capital stock.
or the number. however. three were re-
organized under similar titles and one
was absorbed by another association.
In the existence Of the system. to and
including the year ended October 81.
1902, 1889 associations. with aggregate
capital Of s210, $50. we're liquidated
under authority conferred by the act
cited. OF which. however. 1856. with capt.
tai OF S3S ,555, 200. we're organized under
similar titles
Under the provisions OF the act of
February 25. 1863. 9S banks were or
ganized. whose corporate existence ran
for a period OF but nineteen years. in
consequence Of which their charters ex-
pired in 1882 Up 20 the close Of the
report year. 1902. l2S banks. with an ag-
gregate capital of SIS. .979 500. reached
the termination OF their corporate ex-
istence. and were closed under the pro-
visions Of section Of the act Of July
u, 1882. or the number. 70. with capi-
tai OF $l2,557 900. reorganized under sim
liar titles. Summarizing the foregoing.
it appears that. under the provisions
OF both acts cited. 1.412 banks. with cap
ital aggregating $229 455 .O60. passed out
Of the system.
Liquidation and Consolidation.
The national currency act. which fol-
lows closely the material features Of the
banking law OF the state Of New York.
contains no statutory provision author
izing the consolidation Of banking ass9-
Citations in the manner provided by the
New York law The law OF hat State
empowers shareholders owning at least
two-thirds OF the capital stock Of the
interested corporations TO consent in
writing to consolidation. and author
izes the directors Of each corporation
10 enter into an agreement for consoIi-
dation. prescribing the terms and condi-
tions, the name Of the new consolidated
bank, the directorate. term OF charter.
manner OF converting shares OF the old
into shares OF the new or consolidated
bank When such agreement has been
hled with and approved by the State
superintendent Of banks. the consoli-
dated corporations become a single cor
poration, with the same franchises.
rights. liabilities. etc. Of the constitu-
ent corporations.
The act provides that dissenting
shareholders shall be paid the value OF
their stock. and the stock so surrendered
held and disposed Of by the new corpora
tion for its own beneht.
A Change in the Law.
The Comptroller recommends that sec
tion 1923 Of the Revised Statutes Of the
United States be amended to provide in
effect for consolidation Of national banks
on the lines OF the law Of the State OF
New York, except that the corporate ex-
istenoe Of the closing bank shall be ter
minated as provided by section 1920. AMI
that where the capital stock OF the alb
sorbing bank Is increased for the pur-
pose in conformity with the provisions
or section 5142 that the new stock may
be issued to shareholders Of the closing
association upon surrender and cancel
lation Of their old shares at the book
value Of the stock Of the absorbing
bank, but not less than par
II is also suggested that in the event
Of the requirement Of business OF a clos
ed national banking association by an
other association, but without the con
solidation OF shareholders' interests,
that upon increase of the capital stock
of the absorbing bank for the purpose,
directors Of the association shall be au-
thorized by vote OF shareholders repre- |
senting two-thirds OF the stock 10 sell |
the additional shares az the interests OF /
the association NAV demand. regardless /