under the seal of the association, by its president or cashier, to the Comptroller of the Currency. A blank is inclosed for this purpose. You will see on the lower portion of this blank a form of the notice to note-holders and other creditors, and you will please observe the directions printed upon it as to publication. One copy of one issue of each of the papers containing this notice, together with the publisher's certificate, must be sent to this office.

"The law provides that at any time after the vote to go into liquidation, the bank may, but within at least six months from that date must deposit, through this office, with the U. S. Treasurer, lawful money sufficient to retire its outstanding circulation, and withdraw its bonds.

"A blank form for authorizing the withdrawal of the bonds is also inclosed, which, when the bank determines to retire its circulation, should be filled out and forwarded to this office, together with the Treasurer's duplicate receipts for the bonds to be withdrawn. Before the Treasurer will release the bonds, however, all accounts due for semi-annual duty and for expense of redemption of notes must be paid.

"No business should be done after the vote to go into liquidation, except such as is necessary to pay creditors and close up the affairs of the association.

"If the bank is closing business as a National bank for the purpose of reorganization as an institution under State law, no deposits should be transferred from the National bank to the new organization without the consent of depositors, manifested by checking out their deposits from the old bank and re-depositing them in the new.

"A complete record of the meeting of the stockholders and of the vote should be kept and forwarded with the notice of liquidation mentioned above."

The form of certificate of liquidation to the Comptroller of the Currency is as follows:

To the COMPTROLLER OF THE CURRENCY,

in the State of

Washington, D. C.

NATIONAL BANK

188-.

SIR: It is hereby certified, in pursuance of Sections 5220 and 5221 of the Revised Statutes of the United States, that at a meeting of the stockholders of the located at duly notified and held pursuant to law and the articles of association of said bank, at the office of said association at aforesaid, on the day of - -, 18-, it was voted by the stockholders of said association, owning more than two-thirds of its stock, that said association go into liquidation and be closed.

In testimony whereof, I have, by instruction of the board of directors of said association, hereto subscribed my name and affixed the seal of said association at aforesaid, the day and year above written.

[SEAL OF THE BANK.]

President or Cashier.

NOTICE.

located at

in the State of

is All note-holders and others, creditors of said association, are

The

National Bank

closing up its affairs.

therefore hereby notified to present the notes and other claims against the associa tion for payment.

President or Cashier.

Dated

188-.

NOTE. The above notice to be published for a period of two months in a newspaper in the city of New York, and also in a newspaper published in the place in which the bank is located. (See Section 5221, Revised Statutes.) A certificate of the publisher that the required publication has been made, together with a slip containing notice from one issue of each paper, should be sent to the office of the Comptroller of the Currency.

Withdrawal of Bonds.

The law under which this may be done is contained in Sections 5160, page 26; 5167, page 29; 5222, page 60; Section 3, Act of June 20th, 1874, page 87, and Section 7, Act of July 12th, 1882, page 107. Bonds can only be withdrawn by furnishing a power of attorney to the Comptroller of the Currency for the purpose. The following is the usual form of such power of attorney:

At the meeting of the board of directors of the their banking house,

Bank of

held at

188-, the following resolution was adopted: Resolved, That the Comptroller of the Currency be, and he is hereby, authorized U. S. bonds, deposited with the Treasurer of the United States by this bank to secure circulation, and described as follows: $- of the loan of

to withdraw $

; and that

be, and is hereby, authorized to sell, assign, and transfer the same, and to appoint one or more attorneys for that purpose. I hereby certify that the above is a true extract from the minutes of said meeting. [SEAL OF BANK.]

Cashier, and Secretary of the Board of Directors.

NOTE.—The Treasurer's receipts for the bonds proposed to be withdrawn must be forwarded (with this form properly filled) to the Comptroller of the Currency.

Synopsis of Circulars to Officers of National Banks, by the Comptroller of the Currency.

Synopsis of Instructions as to Reports of Condition.

GENERAL.

All organized associations, including those that have not commenced business, must promptly report their condition when called upon, using the latest "Forms" supplied by the Comptroller of the Currency.

The penalty prescribed by Section 5211, page 50, will be duly enforced if reports are not promptly made.

Receipt of reports is not acknowledged, but due notice of non-receipt is given.

Affidavits must be made before a notary public, justice of the peace, or other officer duly authorized to take acknowledgments of oaths. Such notary, or officer, however, must not be an officer of the bank. (See Act of February 26th, 1881, page 106.)

DETAILS.

I. "Notes and bills discounted."-Here include only discounted paper and notes for loans.

II. "Suspended and bad debts."-All paper past due, and all with interest unpaid for six months, as defined in Section 5204.

III. "Indebtedness of directors."-Loans for their use or benefit and debts for which they are responsible.

IV. "Overdrafts."-To be stated as such, and not deducted from deposits.

V. "Premiums."-Premium or interest paid on United States and other bonds and securities, specie, &c., should be reported as such, and not included as part of their face value.

VI. "Bonds and securities."-Enter all, whether State or National, at their par value, without regard to premium or interest. (See Premiums, par. 5.) If held below par, enter at cost

price. Report no bonds as "deposited with the United States Treasurer to secure circulating notes," or for other purposes, before bank has received Treasurer's receipt for same.

VII. "Specie."-Report precise amount; if any be mutilated or uncurrent, enter at cost price.

VIII. "Capital stock."-Until all the requirements of Section 5140, page 13, as to payments of original capital stock, or those of Section 5142, page 16, as to increase thereof, are respectively complied with, do not report payments thereon as capital stock paid in," but enter them so as to show amount of capital stock officially acknowledged, and amount paid but not acknowledged by the Comptroller separately.

IX. "Surplus fund."-Section 5199, page 44, must be complied with, and requisite amount carried to "surplus fund,” and so reported.

X. "Circulating notes."-The total amount of notes received from Comptroller of Currency must be stated, and all on hand, whether signed or not, entered as indicated on blanks furnished.

XI. "State circulation outstanding."-This item is only for banks converted from State to National with any of the old circulation unredeemed.

XII. "Lawful money reserve. Banks are reminded that the provisions of law as to keeping their reserve of lawful money good are explicit and absolute, that disregard of them is an open violation of law, and that it is the Comptroller's duty to enforce the penalties of the law for such violation.

Reserve.

The law now regulating the reserves which National banks are required to keep on hand to protect their deposits is found in Sections 5191, 5192 and 5195 of the Revised Statutes as modified by Section 2, part of Section 3 of the Act of June 20th, 1874, and part of Section 12 of the Act of July 12th, 1882.

Section 5191 (see page 39) names sixteen cities, each bank located in any one of which is required to have on hand at all times lawful money of the United States, equal at least to 25 per cent. of the aggregate amount of its circulation and de

posits; and that each bank located elsewhere than in the cities named is required to have on hand lawful money at least equal to 15 per cent. of its aggregate circulation and deposits. There are thus banks of two classes-25 per cent. banks and 15 per cent. banks.

That the words on hand in this section do not mean in the bank itself-in its own vault or till-may be seen from sections 5192 and 5195. 5195. Section 5192 provides that three-fifths of the reserve which 15 per cent. banks are required to keep may consist of balances, available for redemption of circulating notes, due to the association from National associations approved by the Comptroller of the Currency, located in any of the sixteen cities named, the other two-fifths being in bank. Section 5195 provides that 25 per cent. banks outside of New York may each keep one-half of their lawful reserve in a National bank approved by the Comptroller located in New York city. The provisions in the sections mentioned having reference to the redemption of circulating notes of National banks at redemption agencies in New York and other reserve cities have been repealed by Sections 1 and 2 of the Act of June 20th, 1874, leaving still in force the right to keep a certain portion of their required reserve with banks in those cities. Sections 1 and 2 of the Act mentioned also repeal all provisions requiring reserve on circulating notes.

Instead of reserve on circulation, each National bank is required to keep at all times with the Treasurer of the United States, in lawful money, a sum equal to 5 per cent. of its circulation. This 5 per cent. fund is also permitted to be counted as a portion of the reserve on deposits. The 25 per cent. banks are divided into two classes: those in New York city and those in the other reserve cities.

In New York city the required reserve is 25 per cent. of deposits, all of which must be in bank.

In the other reserve cities the required reserve is also 25 per cent. of deposits, only one-half or 121⁄2 per cent. of which need be kept in bank; the remaining 121⁄2 per cent. can be deposited in New York with approved reserve agents.

Outside of New York and the reserve cities the reserve is