The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-06-16

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lien in favor of the United States on
the securities so deposited and on the
assets Of the banks composing the as
sociation will be amply sufficient for
the protection of the United States,
he may direct an issue Of additional
circulating notes to the ASSOCIATION,
on behalf Of such bank, to an amount
in his discretion, not, however, ex-
ceeding seventy-fvc per centum of
the cash value Of the securities so de-
posted: Provided, That upon the de-
post of any of the State, city, town,
county, or other municipal bonds, of
a character described in section
three of this act, c,rouratrng notes
may be issued to the extent Of not ex-
cecding ninety per ccntum of the mar.
ket value of such bonds so deposited:
And provided further, That no ma
tional banking association snail be
authorized in any event to issue cir
culating notes based on commercial
paper in excess of thirty per ccntum
Of it's mimpaircd capital and sur
plus. The term commercial paper'
shall be held to include only notes
representing actual commercial trans.
actions, which when accented BY the
association shall bear the names of
at least two responsible parties and
have not exceeding Tour months to
run.
Th" banks and the assets Of all
banks belonging to the association
shall be jointly and scvcrally liable
to the United States for the rcdcmp-
tlon OF such additional circulation;
and to secure such liability the lien
created by section fifty-two hundred
and thirty OF The revised statutes shall
| extend to and cover the assets of all
banks belonging to the association.
and t" the securities deposited by the
banks; with the association pursuant
TO The provisions Of this act; but as
between the several banks COMPOSING
such association each bank shall be
liable only in the proportion that its
| capital and surplus bears to the a"-
%l""atc capital and surplus of all
| such banks. The dissertation NAV, M
any time. require Of any of its con-
Stllncnt banks a deposit Of additional
securities or commercial paper. or an
exchange of the securities already on
deposit. I" secure additional circrla-
tl"n; and in case or the failure of
such bank /" make such deposit or
exchange the association may. aftci
ten days notice to the bank. sell the
securities and papc, already in its
hands ut public SALE and deposit the
proceeds with the treasurer Of the
United States as fund for the re-
dcmption of such additional circula-
ton. IF snch fund be insufficient for
hat purpose the association NAV re-
cover from the bank the amount of
he deficiency by suit in the circuit
court of the United States, and shall
have the benefit Of lie lien hcreinaf-
ter provided for in favor Of the
United States upon The assets Of such
bank. The association or the sccrc-
tary "f the treasury may permit or
require the withdrawal Of any such
securities or commercial paper and
the substitution Of other securities or
commercial paper of equal value
therefor
See. ,. That whenever any bank
belonging to national currency as
S"riaiion shall fail % preserve or
make good lis redemption fund in the
treasury Of the United Stat,t. ~
uuirrd by section three of the act of
June goth, 1871. chapter 3l3. and the
provisions Of this act. the treasurer
OF the United States shall notify such
national currency association to make
good such redemption fund. and upon
the failure of such national currency
association to make goos such fund.
the treasurer Of the United States
may. in his discretion, apply so much
OF the redemption fund belonging to
the other banks composing such ma
tlonal currency association as NAV
be necessary for that purpose: and
such national currency ASSOCIATION
may. after five dayS- notice to such
bank. proceed to sell at public sale
the securities deposited by such bank
with the association pursuant to the
provisions of section one Of this act.
and deposit the proceeds with the
| r on
fund for the redemption Of the addi-