Democratic Sentinel, Volume 6, Number 18, Rensselaer, Jasper County, 2 June 1882 — NATIONAL BANKS. [ARTICLE]

NATIONAL BANKS.

TbeßUlPaaM* bjrtfee L»werH«u* of Cen*rewf«»r the Rwwwal of Their Charters. The “ bill to enable national-banking aesoefrations to extend their corporate existence, ” as it passed the lower house of Congress, provides that any national-banking association may, at any time within two yean next previous to the date of npintion of its corporate existence under the present law, and with the approval of the Comptroller of the Currency, extend its period of succession, by amending its articles of association, far not more than twenty yean from the expiration of the period of succession named in said articles of association, and shall have succession for such extended period unJees sooner dissolved by act of the shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law. Such amendment of articles of association must be authorized by the consent in writing of shareholdem owning not less than of the capital stock. Section 8 refers to the duty of the Comptroller of the Currency in the premises, providing for special examination into the affairs of each association should he deem it necessary. Section 4 has reference to jurisdiction of suits by or against national-banking associations, placing such suits on the same footing in respect to jurisdiction as suite by or against private banks. Section 5 provides that when any nationalbanking association has amended its articles of association as?provided in this act, and the Comptroller has granted his certificate of approval, any shareholder not assenting to such amendment may give notice in writing to the Directors, within thirty days from the date of the certificate of approval, of his desire to withdraw from said association, in which case he shall be entitled to withdraw the value of the shares so held by him. Section 6is as follows: “That circulating notes of any association so extending the period of its succession which shall be issued to it prior to such extension shall be redeemed at the treasury of the United States, as provided in section 3of the act of June 20, 1874, entitled ‘An act fixing the amount of national-bank currency, and for other purposes,’ and such notes, when redeemed, shall be forwarded to the Comptroller of the Currency and destroyed, as now provided by law. And when the amount of such notes shall be reduced to 5 percent, of the capital stock of the bank issuing the same, the association extended shall deposit lawful money with the Treasurer of the United States sufficient to redeem all its outstanding circulation, as provided in sections 5.222, 5,224 and 5,225 of tho Revised Statutes; and any gain that, may arise from failure to present such circulating notes for redemption shall inure to tbe benefit of the United States, and from time to time as such notes are redeemed or lawful money deposited therefor, as provided by law, new circulating notes shall be issued, bearing such devices, to be approved by the Comptroller of the Currency, as shall make them readily distinguishable from circulating notes heretofore issued; provided, however, that each banking association which shall obtain the benefit of this act shall pay the cost of preparing the plate or plates for such new cir culating notes as shall be issued by it, and all other costs incident to the substitution of such new circulating notes for old, in addition to the tax now imposed on banking associations by law.” Section 7 has reference to such banks as do not desire to extend theft charters, and extends the franchise of such associations for tbe sole purpose of liquidating their affairs until such affairs are finally closed. Section 8 is in the following words : “ That a' national bank now organized or hereafter organized, having a capital of SISOXIOO or less, shall not be required to keep on deposit with the Treasurer of the United States United States bonds in excess of SIO,OOO as security for their circulating notes; and such of those banks having on deposit bonds in excess of that amount are authorized to reduce their circulation by deposit of lawful money as provided by law.” Section 10 provides that any national-bank-ing association now organized or hereafter organized, desiring to withdraw its circulating notes upon deposit of lawful money with the Treasurer of the United States as provided in section 4 of the act of June 20, 1874, entitled “An act fixing the amount of United States* notes, providing for redistribution of nationalbank currency, and for other purposes,” shall be required to give ninety days’ notice to the Secretary of the Treasury of its intention to deposit lawful money and withdraw its circulating notes : Provided, That not more than $5,000,000 lawful money shall be deposited during any calendar month for this purpose ; and provided further, that the provisions of this section shall not apply to bonds called for redemption by tbe Secretary of the Treasury, but when bonds are calltd for redemption banks holding such called bonds shall surrender them thirty days after maturity of their call. Section 11 provides that, on deposit of the bonds, the association making the same shall be entitled to receive from the Comptroller of the Currency circulating notes equal in amount to 90 per cent, of the current market value, not exceeding par. of United States bonds so transferred and delivered, and repeals sections 5,171 and 5,176 of the Revised Statutes. The concluding section reserves the right of Congress at any tirfie to repeal this act and acta of which it is amendatory.