for refusal or neglect to make return and payment, the person or bank, &c., in default shall pay a penalty of $200 in addition to the penalty and forfeitures provided in other

cases.

Section 3416 provides that whenever any State bank has been converted into a national bank, and the latter has assumed the liabilities of the former, including the redemption of its bills, the national bank shall make the required return and payment on the outstanding circulation so long as it shall exceed five per cent. of the capital before conversion.

Section 3417, as corrected by the act of February 18, 1875, provides that the provisions of this chapter relating to the tax on deposits, capital, and circulation, except as contained in sections 3410, 3411, 3412, 3413, and 3416, and parts of sections 3414 and 3415, relating to the tax of ten per cent. on certain notes, shall not apply to national banks.

CHAPTER NINE.

STAMP TAXES ON SPECIFIC OBJECTS.

Section 3418 provides that upon every check, draft, or order for the payment of money, drawn upon any bank, banker, or trust company, at sight, there shall be paid two cents by the maker thereof or by the person for whose benefit it was made.

Section 3420 provides that checks, drafts, or orders issued by United States officers, or by State, county, town, or other municipal officers, strictly in their ordinary governmental or municipal capacity, are exempt from taxation.

Section 3421 provides that no check, draft, or order issued without being stamped, as required by law, nor any copy thereof, shall be admitted as evidence in any court, until the proper legal stamp be affixed thereto.

Section 3422, as corrected by the act of February 18, 1875, provides that the penalty for issuing any paper, and for accepting or paying any draft or order without the proper legal stamp thereon, duly canceled, shall be $50; but that when the required stamp has not been affixed to any instrument, or copy thereof, any party in interest may appear before the revenue collector of the proper district, who shall, upon payment of the price of the proper stamp, and a penalty of double the amount of the tax remaining unpaid, (but in no case less than $5, and where the tax required exceeds $50, on payment also of interest at six per cent. per annum on the tax from the day.

on which the stamp ought to have been affixed,) affix the proper stamp to the instrument or copy, and note upon the margin thereof the date and the fact that the penalty has been paid, whereupon it shall be held to be as valid as if stamped when issued. And that whenever it shall appear to said collector, upon oath or otherwise, that any such instrument was not duly stamped when made or issued, by reason of accident, mistake, inadvertence, or urgent necessity, and without willful design to defraud the United States of the stamps or delay the payment thereof,-if the original of such instrument, or a duly authenticated copy thereof if the original be lost, shall within twelve calendar months after the making or issuing thereof be brought to said collector to be stamped, and the proper stamp tax shall be paid, he may remit the penalty and cause the instrument to be duly stamped.

Section 3423 provides where an adhesive stamp is used for denoting any tax imposed under this chapter, except as hereinafter provided, the person using it shall write thereon his initials and the date, so that it may not be used again; and that any person who fraudulently uses such an adhesive stamp without so effectually canceling it, except as before mentioned, shall forfeit $50.

Section 3424 provides that the Commissioner of Internal Revenue may prescribe such other method for the cancellation of stamps as he may deem expedient and effectual.

Title XLII.-THE PUBLIC DEBT.

Section 3701 provides that all United States stocks, bonds, treasury notes, and other obligations shall be exempt from State, municipal, or local taxation.

Title XLV.-PUBLIC PRINTING.

Section 3811 provides how the annual reports of the Comptroller shall be printed; and that they shall be ready for delivery on or before the first day of December next after the year to which they relate.

Title LXII.-NATIONAL BANKS.

CHAPTER ONE.

ORGANIZATION AND POWERS.

Section 5133 provides that associations for carrying on the business of banking may be formed under the law by any

number of natural persons not less than five; that the cor porators shall enter into articles of association specifying the object of organization, and containing any other provisions not inconsistent with law that they may see fit to adopt; that the articles shall be signed by the corporators, and a copy of them forwarded to the Comptroller, to be filed in his office.

Section 5134 provides that the corporators shall sign an organization certificate specifying—

1st. The name to be assumed by the association, subject to the approval of the Comptroller.

2d. The place where its business is to be carried on, designating the State, territory or district, and county, city, town, or village.

3d. The amount of capital stock, and number of shares thereof.

4th. The names and residences of shareholders, and number of shares held by each.

5th. That the certificate is made to enable them to avail themselves of the advantages of the banking laws.

Section 5135 provides that the organization certificate shall be acknowledged before a judge of a court of record or notary public, authenticated by seal, and transmitted to the Comptroller to be recorded and preserved in his office.

Section 5136 provides that upon making and filing articles of association and organization certificate, the association shall become a body corporate from date of execution thereof; and by its designated name shall have power

1st. To adopt and use a corporate seal.

2d. To have succession for twenty years from organization, unless sooner dissolved by its articles of association, or by holders of two-thirds of its stock, or by forfeiture of its franchise for violation of law.

3d. To make contracts.

4th. To sue and be sued in courts of law or equity as fully as natural persons.

5th. To choose directors, and by them appoint and dismiss officers, define their duties, require bonds of them, and fix the penalty thereof.

6th. To prescribe, by its directors, by-laws not inconsistent with law, regulating the manner of transferring its stock, electing directors, appointing officers, transferring its property, conducting its general business, and exercising its legal privileges.

7th. To exercise, by its directors or authorized officers or agents, subject to law, all incidental powers necessary to carry on the business of banking, by discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of debt; by receiving deposits, by buying and selling exchange, coin, and bullion; by loaning money on personal security, and by issuing circulating notes according to law.

But no bank is to transact any business except such as is necessarily preliminary to its organization until authorized by the Comptroller to commence banking.

Section 5137 provides that the purchase, holding, or conveying of real estate by national banks, shall be limited to— 1st. What is necessary for their places of business.

2d. That mortgaged to them to secure debts previously contracted.

3d. That conveyed to them in satisfaction of debts.

4th. That purchased to secure their debts, under judgment or otherwise.

But national banks are forbidden to hold real estate under mortgage, or in possession when acquired for debts, longer than five years.

Section 5138 provides that a national bank shall not be organized with less than $100,000 capital, and in cities of over 50,000 inhabitants, not with less than $200,000 capital; but makes an exception as regards places of not over 6,000 inhabitants, in which banks with $50,000 capital may, with the approval of the Secretary of the Treasury, be organized.

Section 5139 provides that the capital stock of each national bank shall be divided into shares of $100 each,* and be deemed personal property, transferable on the bank's books; that the transferee shall succeed to the rights and liabilities of prior holder in proportion to shares transferred; and that no change shall be made in the articles of association which shall impair the rights or security of existing creditors of the bank.

Section 5140 provides that at least one-half of the capital stock of every bank shall be paid in before it shall commence business; and that the remainder shall be paid in by monthly installments of at least one-tenth of the whole capital, each to be certified to the Comptroller by the president or cashier under oath.

*See section 5154 as to shares of converted State banks.

Section 5141 provides that whenever any shareholder or his assignee fails to pay any installment on his stock, as required by the preceding section, the directors may sell the same at public auction, after three weeks' notice in a newspaper published and of general circulation where the bank is located, or if there be none there, in the one nearest thereto, to the person who will pay the highest price for it, if not less than the amount due on it, with costs of advertisement and sale, the excess, if any, to be paid to the delinquent shareholder. That in default of obtaining by such sale the amount due on the stock and costs, the amount previously paid shall be forfeited to the bank, and the stock shall be sold as the directors may order within six months after forfeiture, and if not sold, it shall be cancelled and deducted from the original capital; but if the capital shall thereby be reduced below the lawful minimum, it must be made up within thirty days, or a receiver may be appointed, according to the provisions of sec. 5234, to close up the business of the bank.

Section 5142 provides that any national bank may, by its articles of association, provide for an increase of its capital from time to time, as deemed expedient, subject to the limitations of the law, but that the Comptroller shall determine the maximum of such increase, and that no increase shall be valid until all paid in, notice thereof transmitted to the Comptroller, and his certificate of approval obtained specifying its amount, and that it has been duly paid in.

Section 5143 provides that any national bank may, by the vote of shareholders owning two-thirds of its stock, reduce its capital to any sum not below the amount required by section 5138 to authorize the formation of such bank, but that no reduction which will bring the capital below the amount required for the outstanding circulation of the bank shall be allowable, nor shall any be made until the amount thereof shall be reported to the Comproller and his approval obtained.

Section 5144 provides that in elections of directors, and in deciding questions at meetings of shareholders, each shareholder shall have one vote on each share of his stock, and that shareholders may vote by proxies authorized in writing, but that no officer, clerk, teller, or bookkeeper shall act as proxy, and that no shareholder whose liability is past due and unpaid shall be allowed to vote.

Section 5145 provides that the affairs of every national