The Montgomery advertiser., 1908-01-20
tombstone & Co.
Cotton Merchants and Exporters
Cotton Bsush. IN Alabama and Mississippi
Branch Offices Troy and Dothan Ala and Jackson Miss
Cotton Merchants al,

half of its lawful money reserve on de.
posit in national bank in central
reserve city, or In a reserve city, and
that every national banking assocfa-
tion situated and doing business out
side OF q central reserve city, or q re-
serve city. may keep three-fifths OF
its lawful money reserve on deposit
In a national bank In central re-
serve city. or In reserve city.
sec. s. That the taxes upon ma
tional bank guaranteed credit notes
provided for in sections 2'and 3. Of this
act, shall be paid In lawful money to
the treasurer OF the United States.
Said taxes, when received, shall con-
stitute a guaranty fund to redeem the
notes of failed banks and to pay the
cost of printing and current redemp-
ton.
-sec. :. That when any national
banking association takes out any ma
ttonai hank Guaranteed credit notes for
issue and circulation. It shall deposit
with the treasurer Of the United states
In lawful money an amount equal to
five per centum thereof. The amount
so deposited shall he placed in the
guaranty fund for the purpose thereof.
But said amount shall be refunded
to the respective banks as soon as the
taxes provided fer in sections and 3
fund above fifty per centum of the
maximum amount of national bank
guaranteed credit noses taken out for
issue and circulation. but that no bank
shall withdraw any part Of its deposit
Of said five per centum until II shall
have to its credit in said fund more
than five per centum.
Sec. 8. That the comptroller Of the
currency shall designate certain cities
NnHVanianfly IN .o .fatta aAr
tions of the United States for the cur
rent daily redemption of said national
bank guaranteed credit notes: he shall
FIX rules and regulations for such re.
demption: and. before authorizing and
permitting any national banking asso-
citation to take out for issues and cfr-
culation any national banking credit
notes, he shall require such bank to
make arrangements satisfactory to him
for the current daily redemption of
such notes in every redemption city
so designated.
"Sec. g. That said national bank
guaranteed credit notes, issued in ac-
cordance with the provisions of this
act shall be, received at par in all
parts of the United States in payment
of taxes, excuses, public lands and all
other dues to the United States except
duties on imports; and also for all SAL
aries and other debts and demands ow-
ing by the United states to individuals,
corporations and associations within
the United States. except interest on
the public debt and, in redemption OF
the national currency. Said notes shall
be received upon deposit and for all
purposes of debt and liability by every
national banking association at par
and without charge OF whatsoever
kind.
"sec. 10. That the holder of any ma
tional bank guaranteed credit note
shall have prior lien on the assets
of the national banking association is
suing 1t and on the statutory liability
of shareholders.
''sec. II. That upon the failure of
national banking association, all out
standing national hank guaranteed
credit notes taken out by 1t in accord
ance with the provisions of this act,
shall upon presentation to the United
States treasury, be paid In lawful mon
ey out of the guaranty fund; but the
United States treasurer shall recover
in lawful money from the assets OF the
failed bank the amount of the guaran-
teed credit notes of such bank out
standing at the time Of failure, and
the same shall be paid into the guar
anty fund as provided in Section 10 OF
this act.
Sec. q. That any national bank 8,
ing association desiring to retire its
bank guaranteed credit notes
or to go into liquidation shall pay
into the guaranty fund an amount OF
lawful money equal to the amount of
its nationals bank guaranteed credit
notes then outstanding. ..Lt.
sec. sl3. That any national bank
ing association desiring to take out
national bank guaranteed credit notes
and having notes outstanding in ex-
cess of sixty-two and one-half per
centum of its paid UP capital. to secure
the payment of which United States
bonds have been deposited may upon
the deposit of lawful money redeem
such excess without reference to the
of nine million dollars each
month prescribed in the act approved
March 4, 1907"