Year: 1870

The complete circular OF the Controller of
the Currency, giving the forms and instruc-
tions for the organization of gold banks ian
abstract Of which has been published), has
Just been made public. The following sec
tions of the act Of July II, 1870, provide for
the organization of such banks:


SEC 8. And be it further enacted, That
upon the deposit of any United States
bonds. bearing interest payable in gold,
with the Treasurer of tho United States in
the manner prescribed in the nineteenth
and twentieth sections of the national cur
rency act, it shall be lawful for the Con-
troller Of the Currency to issue to the asso-
citation making the same, circulating notes
of different denominations not less than five
dollars not exceeding in amount eighty per
centum of the par value OF the bonds de-
posted which notes shall bear upon their
face the promise of the association to which
they are issued to pay thcm upon presenta-
ton at the office of the association, in gold
coin OF the United States. and shall be re-
tieemable upon such presentation III such
coin: provided, that no banking association
organized under this law shall have circu-
lation in excess of s ,OU0,000.


SEC. i. And be it further enacted, That
every national banking association formed
under the provisions of the preceding sec
of this act, shall at all times keep on hand
not less than twenty-five per centum OF its
outstanding circulation in gold or silver
coin of the United States, and shall receive
at par in the payment OF debt the gold notes
of every other such banking association
which at the time of such payment shall be
redeeming its circulating notes in gold coin
of the United States.


The Controller says:


National banks for the issue of gold notes
can be established, and would probably be
successful and profitable at any point where
direct trade with foreign countries Is carried
on to an extent sufficient to furnish employ
ment 10 the capital and means of the bank,
and in those cities and States where business
is transacted chiefly or entirely upon a coin
basis. but in the small interior towns Of the
Atlantic or Western States it Is not at all
probable that such institutions would be
profitable OF satisfactory 10 the stock
holders.


Banks for the issue of gold notes are to
be organized as provided IN the original law
upon that subject.


The circular suggests a form of articles of
association. the first section to specify the
name and the title of the association.
Second-The place where its office shall
be located and business conducted.
Third-The number OF directors, and time
and place OF the first meeting of stockhold-
ers for the election of the same.
Fourth-,Ihe time and place OF regular
annual meetings tsecond Tuesday in Jan
uaryl OF the stockholders for a like pur-
pose.


Fifth-The amount of capital stock, value
of shares, and provision for the increase OF
stock


Sixth-The election of officers of the asso-
citation, and defining their duties and bonds.
Seventh-The time the association shall
continue twenty years. unless sooner dis
solved by act OF the stockholders owning
rWo-fh thirds of the stock.
Eighth-Specifying rules OF amendment
of articles.


A certified copy of the articles of associ-
alton should be sent TO the Controller OF the
Currency, the certificate being properly
stamped and signed by an officer OF the
bank. or one of the associates.


After the articles OF association have
| been agreed upon the organization certlti-
cate should be prepared, and the original
thereof filed with the Controller.
The cash paid in must not be less than
fifty per cent of the entire capital sub
scribed.


The amount of bonds to be deposited
must never be less than thirty thousand
dollars. nor less than Onethird Of the paid
up capital of the bank.


when fifty per cent of the capital is
paid i'll, certificate OF the officers and dl-
rectors should be made.


After the execution OF the organization
certificate, if the directors are not deslg-
mated in the articles OF association,
the stockholders should proceed, at the
time and place named in the articles of as
sociation, to elect directors, each of whom
should after his election, take an oath OF
the form prescribed in the circular. Each
oath must be immediately transmitted to
the Controller.


ITO enable stockholder to be director
he must own, in his own right, at least one
| ! II. Al, ,$,l r%C0I- off hn
bank, which shall not be hypOthecated or IN
any way pledged for any debt; and the
Office of any director will he vacated upon
his ceasing to be the owner OF at least that
amount of stock.


Before taking any decided steps for the
organization Of banks parties are requested
to correspond with the Controller OF the
Currency.


Applications NAV be made by letter, and
should state the locality where the bank IS
required, naming the city or town, the popu-
lation. a general estimate of the kind and
amount of business, the names OF the prln-
cipal parties who propose to organize the
bank. with information as to their charac-
ter and pecuniary ability.


persons proposing to organize an assO
citation, before proceeding beyond the exc
cution of their articles Of association and
organization certificates, should furnish to





letters from gentlemen tof well known
character and reputation, either from their
official position or otherwise, in regard to
the character and responsibility of the
parties, and the objects contemplated by It's
organization. 1t is better that all questions
on this point should be settled before the
organization is perfected and bonds are
deposited with the Treasurer, than after
ward, as an unfavorable decision OF the
Coptrn1Ier after these +hiuuS have been
done would involve the parties III expense
and trouble that ought to be avoided.
Upon the approval of the application by
the Controller of the Currency, all the forms
necessary for the organization OF the bank
will be furnished.


Particular attention is requested to the
following requirements:'


First-Section six of the act requires that
the name of the association should be ap-
prov ed by the Controller. 1t will be ad-
visable, therefore, that persons desiring to
form an association should advise the Con
troller of the title they desire to assume be-
fore the papers are executed.


Second-In the articles of association and
organization certificate, the names OF the
persons executing them should be written
in full


Third-The organization certificate must
be executed before notary public or judge
of some court of record, and the acknOwl-
edgement authenticated by the seal OF the
notary public.


Fourth-In the copy of the articles of as
sociation the names of the parties should be
given The copy sent to the Controller
should be certified to be true copy by the
president Or cashier.


''The next thing to be done before the as
sOciatiOn can be authorized to commence
h,IS of han 10 IN HpnOSlt