and destruction of a like sum of fractional currency received at the treasury in payment of dues to the United States, and said fractional currency, when so substituted, shall be destroyed and held as part of the sinking fund, as provided in the act approved April 17, 1876.

§ 2. That the trade dollar shall not hereafter be a legal tender, and the Secretary of the Treasury is hereby authorized to limit from time to time the coinage thereof to such an amount as he may deem sufficient to meet the export demand for the same.

§ 3. That in addition to the amount of subsidiary silver coin authorized by law to be issued in redemption of the fractional currency, it shall be lawful to manufacture at the several mints, and issue through the treasury and its several offices, such coin to an amount that, including the amount of subsidiary silver coin and of fractional currency outstanding, shall in the aggregate not exceed at any time $50,000,000.

§ 4. That the silver bullion required for the purposes of this act shall be purchased from time to time at the market rate by the Secretary of the Treasury with any money in the treasury not otherwise appropriated, but no purchase of bullion shall be made under this resolution when the market rate for the same shall be such as will not admit of the coinage and issue as herein provided without loss to the treasury, and any gain or seigniorage arising from this coinage shall be accounted for and paid into the treasury as provided under existing laws relative to subsidiary coinage, provided that the amount of money at any time invested in such silver bullion, exclusive of such resulting coin, shall not exceed $200,000.

NATIONAL BANKS AND BANK CURRENCY.

LAWS IN FORCE AUGUST, 1876.

THE following compilation embraces all the laws in

force August, 1876, governing the organization and management of national banks and the issue and redemption of national-bank currency, under the following heads, viz.:

Chapter I. Organization and Powers of National Banks.

II. Obtaining and Issuing Circulating Notes.

III. Regulation of the Banking Business.

IV. Dissolution and Receivership.

V. Tax on Circulation and on Bank Checks.

VI. Crimes and Misdemeanors.

VII. Interest Laws.

The numbers of the sections are the same as in the Revised Statutes.

CHAPTER I.

ORGANIZATION AND POWERS OF NATIONAL BANKS.

of national

associations.

Articles of

(SEC. 5133.) Associations for carrying on the business Formation of banking under this title may be formed by any num- banking ber of natural persons, not less in any case than five. They shall enter into articles of association, which shall specify in general terms the object for which the association is formed, and may contain any other provisions, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. These articles shall be signed by

associa

tion.

Organization certificate.

Name of association.

Place of business.

Capital stock.

Shareholders.

Object of certificate.

Acknowledgment of organization certificate.

Corporate powers of associations.

2 Abb.,U.S., 416.

Seal.

Succession.

the persons uniting to form the association, and a copy of them shall be forwarded to the Comptroller of the Currency, to be filed and preserved in his office.

(SEC. 5134.) The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifically state:

First. The name assumed by such association; which name shall be subject to the approval of the Comptroller of the Currency.

Second. The place where its operations of discount and deposit are to be carried on, designating the State, Territory, or district, and the particular county and city, town, or village.

Third. The amount of capital stock and the number of shares into which the same is to be divided.

Fourth. The names and places of residence of the shareholders, and the number of shares held by each of them.

Fifth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this title.

(SEC. 5135.) The organization certificate shall be acknowledged before a judge of some court of record, or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his office.

(SEC. 5136.) Upon duly making and filing articles of association and an organization certificate, the association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power:

First. To adopt and use a corporate seal.

Second. To have succession for the period of twenty years from its organization, unless it is sooner dissolved according to the provisions of its articles of association, or by the act of its shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law.

Third. To make contracts.

Contracts.

Fourth. To sue and be sued, complain and defend, in Suits. any court of law and [or] equity, as fully as natural

persons.

ment of officers.

Fifth. To elect or appoint directors, and by its board Appoint of directors to appoint a president, vice-president, cashier, and other officers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, by-laws By-laws. not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers appointed, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

powers.

Seventh. To exercise by its board of directors, or duly Incidental authorized officers or agents, subject to law, all such incidental powers as shall be 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 obtaining, issuing and circulating notes according to the provisions of this Title.

commence business.

But no association shall transact any business except When may such as is incidental and necessarily preliminary to its organization, until it has been authorized by the Comptroller of the Currency to commence the business of banking.

(SEC. 5137.) A national banking association may purchase, hold, and convey real estate for the following purposes, and for no others:

First. Such as shall be necessary for its immediate accommodation in the transaction of its business. Second. Such as shall be mortgaged to it in good faith by way of security for debts previously contracted.

Third. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings.

Power to property.

hold real

Limitation as to mortgages, etc.

Minimum capital required.

Value and transfer of shares of stock.

liabilities

Fourth. Such as it shall purchase at sales under judgments, decrees or mortgages held by the association, or shall purchase to secure debts due to it.

But no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years.

(SEC. 5138.) No association shall be organized under this Title with a less capital than one hundred thousand dollars; except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in any place the population of which does not exceed six thousand inhabitants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a less capital than two hundred thousand dollars.

(SEC. 5139.) The capital stock of each association shall be divided into shares of one hundred dollars each, and be deemed personal property, and transferable on the books of the association in such manner as may be Rights and prescribed in the by-laws or articles of association. Every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities of the prior holder of such shares; and no change shall be made in the articles of association by which the rights, remedies or security of the existing creditors of the association shall be impaired.

of persons holding shares by transfer. Van Allen vs. The

Assessors, 3 Wall. 573.

When capital stock must be

paid in and certified.

Proceedings if shareholder

fails to pay

installments.

(SEC. 5140.) At least fifty per centum of the capital stock of every association shall be paid in before it shall be authorized to commence business; and the remainder of the capital stock of such association shall be paid in installments of at least ten per centum each, on the whole amount of the capital, as frequently as one installment at the end of each succeeding month from the time it shall be authorized by the Comptroller of the Currency to commence business; and the payment of each installment shall be certified to the Comptroller, under oath, by the president or cashier of the association.

(SEC. 5141.) Whenever any shareholder, or his assignee, fails to pay any installment on the stock when the same is required by the preceding section to be paid,