Year: 1866




under his direction) of different denomina
tions, in blank, registered anu countersign
ed by himself and the Treasurer. The
amount in notes thus issued shall not ex
ceed 80 per cent. of the amount of th'
bonds deposited, at the par value thereof
if bearing interest at the rate of 5 per cent
per annum; and in no case shall the sun
of such notes issued to any association ex
ceed the amount of its capital actually paie
in.


Such notes, after having been properly
signed by the president and cashier of the
bank to whom they are gwen, shall be re-
ceived at par everywhere in the United
States in payment of taxes, excises, lands
and all other dues to the Government ex
cept duties on imports; and also for al
salaries and other debts owing by the Uni
ted States to creditors within its territory,
except interest on the public debt and in
redemption of the national currency. These
notes, if worn or mutilated, shall be re-
ceived by the Comptroller; and if destroy
ed be shall, upon proof of destruction, re-
place to the bank to whom they belonged
blank notes of an equal amount.


Whereupon the market value of any
bonds, deposited under this Act with the
Treasurer of the United States shall be re.
duced in value below the amount of circu
lation issued for the same, the Comptroller
is empowered to demand from the associa,
ton which deposited them the amount Of
such depreciation in other United States
bonds at cash value.


The loans of banks under this Act shall
at no time exceed one.tenth of the amount
of the capital stock paid. This will salts
factorily interpret the Scant margin of which
so much complaint has been made.


The rate of interest permitted shall be
regulated by the laws of the State wherein
the association may reside If not fixed by
such laws, the Act allows rate of interest
of per cent. per aunum. Any infraction
of this provision shall work forfeiture of
interest, and the party suffering from such
usury may recover double the amount of in
terest so exacted


Every association under this Act. shall
have on hand at all times lawful money of
the United States, Is or IS per cent. (dif
teriug in different cities of the Union, } of
the aggregate Of its notes in circulation and
its deposits. Any bank failing to make
good this reserve for thirty days, after hav
ing been notified to do so BY the Conptrol
Ter, is liable to have its business summarily
wound up.


Every National Bank is compelled to re,
ceive, in payment of all debts due it, the
notes of any other similar institution.


Quarterly reports exhibiting, under oath,
the resources and liabilities of the banks,
shall be made to the Comptroller, under
pain of S100 dollars forfeit, for every FIVE
days delay in making them at the proper
times.


If any Association should refuse to re-
deem one of its notes when presented, in
lawful currency, the party presenting the
same may have it protested and forwarded
to the Comptroller. On the receipt of such
protest, the Comptroller, with the consent
of the Treasurer, may appoint special
agent to investigate the refusal. Should
the fate of such refusal be verified, the
Comptroller shall declare, within thirty
days thereafter, that the United States
bonds and securities pledged by the recu.
SAINT Association, are forfeited to the United
States. Holders of the circulation of such
bank, shall then be notified to present it at
the Treasury of the United States, where
it will be redeemed in lawful currency
The Comptroller shall Furthermore appoint
a receiver-under bond and security-whose
duty it will be to put such bank in liquida'
ton and legally wind up its affairs Under
this commission all done in contemplation
of solvency, which may be prejudicial to
the creditors of the bank, shall be declared
null and void.


Any officer connected with such organi.
cations, who may be guilty of misdemeanor
in his Office, shall, upon conviction, be pun
ished by imprisonment for not less than FIVE
and not more than ten years.


The foregoing includes all of the salient
points which enter into the composition of
our National Bank system. 1t occurs to US
that assuming the basis of this system to
be impregnable, it provides every check,
guard and balance, which the most jealous
wisdom could suggest 1t is necessary to
bear in mind, however, what this basis is.
1t is neither less, nor more, than the credit
of the General Government. Now, with
regard to the permanent sounduess of that
credit, it is due to candor to state that wide
ly divergent opinions prevail. Many con
slider it sufficiently fortified to resist success.
fully all the influences which assail it. On
the other hand, not few believe that it is
dead sea.fruit, which may at any moment
turn to ashes on our lips. The report of
the Secretary of the Treasury furnishes all
the attaiDable information Oh the point.


If an inspection of its statements should
satisfy them about the preliminary and vital
question of the national credit, We have no
hesitation in saying, on behalf of the banks,
that we are acquainted with no scheme of
paper currency which combines Sc much to
approve with so little to condemn. While,
therefore, it is obvious that nothing could
be more foreign from our purpose than to