is reduced below the amount of the circulation issued for the same, the Comptroller may demand and receive the amount of such depreciation in other United States bonds at cash value, or in money, from the association, to be deposited with the Treasurer as long as such depreciation continues. And the Comptroller, upon the terms prescribed by the Secretary of the Treasury, may permit an exchange to be made of any of the bonds deposited with the Treasurer by any association for other bonds of the United States authorized to be received as security for circulating notes, if he is of opinion that such an exchange can be made without prejudice to the United States; and he may direct the return of any bonds to the association which transferred the same, in sums of not less than one thousand dollars, upon the surrender to him and the cancellation of a proportionate amount of such circulating notes; Provided, That the remaining bonds which shall have been transferred by the association offering to surrender circulating notes are equal to the amount required for the circulating notes not surrendered by such association, and that the amount of bonds in the hands of the Treasurer is not diminished below the amount required to be kept on deposit with him, and that there has been no failure by the association to redeem its circulating notes, nor any other violation by it of the provisions of this Title, and that the market or cash value of the remaining bonds is not below the amount required for the circulation issued for the same.

See Act of June 20, 1874, post; Act of July 12, 1882, §§ 8 and 9, post; Act of March 14, 1900, § 12, post.

§ 5168. [U. S. Comp. Stat. 1901, p. 3474.] Whenever a certificate is transmitted to the Comptroller of the Currency, as provided in this Title, and the association transmitting the same notifies the Comptroller that at least fifty per centum of its capital stock has been duly paid in, and that such association has complied with all the provisions of this Title required to be complied with before an association shall be authorized to commence the business of banking, the Comptroller shall examine into the condition of such association, ascertain especially the amount of money paid in on account of its capital, the name and place of residence of each of its directors and the amount of the capital stock of which each is the owner in good faith, and generally whether such association has complied with all

the provisions of this Title required to entitle it to engage in the business of banking; and shall cause to be made and attested by the oaths of a majority of the directors, and by the president or cashier of the association, a statement of all the facts necessary to enable the Comptroller to determine whether the association is lawfully entitled to commence the business of banking.

See note to the following section.

§ 5169. [U. S. Comp. Stat. 1901, p. 3474.] If upon a careful examination of the facts so reported, and of any other facts which may come to the knowledge of the Comptroller, whether by means of a special commission appointed by him for the purpose of inquiring into the condition of such association, or otherwise, it appears that such association is lawfully entitled to commence the business of banking, the Comptroller shall give to such association a certificate, under his hand and official seal, that such association has complied with all the provisions required to be complied with before commencing the business of banking, and that such association is authorized to commence such business. But the Comptroller may withhold from an association his certificate authorizing the commencement of business whenever he has reason to suppose that the shareholders have formed the same for any other than the legitimate objects contemplated by this Title.

It is the duty of the Comptroller to decide as to the completeness of organization, and his certificate of compliance with the National Banking Act removes any objection which might otherwise have been raised to the evidence upon which he acted. Thatcher v. West River National Bank, 19 Mich. 196; Casey v. Galli, 94 U. S. 673, 24 L. ed. 168; Keyser v. Hitz, 2 Mackey, 490.

§ 5170. [U. S. Comp. Stat. 1901, p. 3474.] The association shall cause the certificate issued under the preceding section to be published in some newspaper printed in the city or county where the association is located, for at least sixty days next after the issuing thereof; or, if no newspaper is published in such city or county, then in the newspaper published nearest thereto.

§ 5171. [U. S. Comp. Stat. 1901, p. 3475.] Repealed by Act of July 12, 1882, § 10, post.

"g 5172. In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secre

tary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom, and numbered, such quantity of circulating notes, in blank, of the denominations of five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, one thousand dollars, and ten thousand dollars, as may be required to supply the associations entitled to receive the same. Such notes shall state upon their face that they are secured by United States bonds or other securities, certified by the written or engraved signatures of the Treasurer and Register and by the imprint of the seal of the Treasury. They shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the signature of the president or vice-president and cashier. The Comptroller of the Currency, acting under the direction of the Secretary of the Treasury, shall as soon as prac ticable cause to be prepared circulating notes in blank, registered and countersigned, as provided by law, to an amount equal to fifty per centum of the capital stock of each national banking association; such notes to be deposited in the Treasury or in the subtreasury of the United States nearest the place of business of each association, and to be held for such association, subject to the order of the Comptroller of the Currency, for their delivery as provided by law: Provided, That the Comptroller of the Currency may issue. national bank notes of the present form until plates can be prepared and circulating notes issued as above provided: Provided, however, That in no event shall bank notes of the present form be issued to any bank as additional circulation provided for by this Act."

(As amended May 30, 1908.)

See section 5183, U. S. Comp. Stat. 1901, p. 3482, and notes.

As to redemption of lost or stolen bank notes, see Act of July 28, 1892. The imprint of the seal of the Treasury is simply intended to be evidence with regard to the security of the contract, and forms no part of the contract itself. Hence the circulating notes of a national bank are valid without it. U. S. v. Bennett, 17 Blachf. 357, Fed. Cas. No. 14,572.

§ 5173. [U. S. Comp. Stat. 1901, p. 3478.] The plates and special dies to be procured by the Comptroller of the Currency for the printing of such circulating notes shall remain under his control and direction, and the expenses necessarily incurred in executing the

laws respecting the procuring of such notes, and all other expenses of the Bureau of the Currency, shall be paid out of the proceeds of the taxes or duties assessed and collected on the circulation of national banking associations under this Title.

See Act of June 20, 1874, § 3, and Act of July 12, 1882, § 8.

§ 5174. [U. S. Comp. Stat. 1901, p. 3478.] The Comptroller of the Currency shall cause to be examined, each year, the plates, dies, bed-pieces and other material from which the national bank circulation is printed, in whole or in part, and file in his office annually a correct list of the same. Such material as shall have been used in the printing of the notes of associations which are in liquidation, or have closed business, shall be destroyed under such regulations as shall be prescribed by the Comptroller of the Currency and approved by the Secretary of the Treasury. The expenses of any such examination or destruction shall be paid out of any appropriation made by Congress for the special examination of national banks and banknote plates.

(Word “bed-pieces" inserted by Act of February 27, 1877.)

§ 5175. [U. S. Comp. Stat. 1901, p. 3478.] Not more than onesixth part of the notes furnished to any association shall be of a less denomination than five dollars. After specie payments are resumed no association shall be furnished with notes of a less denomination than five dollars.

8 5176.

Repealed by Act of July 12, 1882, § 10, post.

& 5177.

Repealed by Act of January 14, 1875, § 3, post.

§ 5178. [U. S. Comp. Stat. 1901, p. 3480.] One hundred and fifty millions of dollars of the entire amount of circulating notes authorized to be issued shall be apportioned to associations in the States, in the Territories, and in the District of Columbia, according to representative population. One hundred and fifty millions shall be apportioned by the Secretary of the Treasury among associations formed in the several States, in the Territories, and in the District of

1

Columbia, having due regard to the existing banking capital resources, and business of such States, Territories and District. The remaining fifty-four millions shall be apportioned among associations in States and Territories having, under the apportionments above prescribed, less than their full proportion of the aggregate amount of notes authorized, which made due application for circulating notes prior to the twelfth day of July, eighteen hundred and seventy-one. Any remainder of such fifty-four millions shall be issued to banking associations applying for circulation notes in other States or Territories having less than their proportion.

Superseded by Act of January 14, 1875, § 3, post.

§ 5179. [U. S. Comp. Stat. 1901, p. 3480.] In order to secure a more equitable distributing of the national banking currency, there may be issued circulating notes to banking associations organized in States and Territories having less than their proportion, and the amount of circulation herein authorized shall, under the direction of the Secretary of the Treasury, as it may be required for this purpose, be withdrawn, as herein provided, from banking associations organized in States having more than their proportion, but the amount so withdrawn shall not exceed twenty-five million dollars; Provided, that no circulation shall be withdrawn under the provisions of this section until after the fifty-four millions granted in the first section of the act of July twelfth, eighteen hundred and seventy, shall have been taken up.

Superseded by Act of January 14, 1875, § 3, post; see Act of June 20, 1874, § 7, post.

§ 5180. [U. S. Comp. Stat. 1901, p. 3480.] The Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, make a statement showing the amount of circulation in each State and Territory, and the amount necessary to be withdrawn from each association, and shall forthwith make a requisition for such amount upon such associations commencing with those having a circulation exceeding one million of dollars, in States having an excess of circulation, and withdrawing their circulation in excess of one million of dollars, and then proceeding proportionately with other associations having a circulation exceeding three hundred thousand dollars,