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APPENDIX.

NATIONAL CURRENCY ACT.

No. I.

AN ACT

TO PROVIDE A NATIONAL CURRency, secured BY A PLEDGÈ
OF UNITED STATES STOCKS, AND TO PROVIDE FOR THE CIR-

CULATION AND REDEMPTION THEREOF.

Be it enacted by the Senate and House of Representatives Currency of the United States of America in Congress assembled, Bureau That there shall be established in the Treasury Department a established. separate bureau, which shall be charged with the execution of this and all other laws that may be passed by Congress respecting the issue and regulation of a national currency secured by United States bonds. The chief officer of the said bureau shall be denominated the Comptroller of the Currency, and Comptroller shall be under the general direction of the Secretary of the of the Currency. Treasury. He shall be appointed by the President, on the nomination of the Secretary of the Treasury, by and with the advice and consent of the Senate, and shall hold his office for the term of five years unless sooner removed by the President, by and with the advice and consent of the Senate; he shall receive an annual salary of five thousand dollars; he shall have a competent deputy, appointed by the Secretary, whose Deputy salary shall be two thousand five hundred dollars, and who Comptroller. shall possess the power and perform the duties attached by law to the office of Comptroller during a vacancy in such office and during his absence or inability; he shall employ, from time to time, the necessary clerks to discharge such duties as he shall direct, which clerks shall be appointed and classified by the Secretary of the Treasury in the manner now provided by law. Within fifteen days from the time of notice of his appointment the Comptroller shall take and subscribe the oath of office prescribed by the Constitution and laws of the United States; and he shall give to the United States a bond in the bond of penalty of one hundred thousand dollars, with not less than Comptroller. two responsible freeholders as sureties, to be approved by the Secretary of the Treasury, conditioned for the faithful discharge of the duties of his office. The Deputy Comptroller so appointed shall also take the oath of office prescribed by bond of Deputy. the Constitution and laws of the United States, and shall give a like bond in the penalty of fifty thousand dollars. The

Clerks.

Oath and

Oath and

Interest for

bidden.

Seal of bureau.

Comptroller and Deputy Comptroller shall not, either directly or indirectly, be interested in any association issuing national currency under the provisions of this act.

SEC. 2. And be it further enacted, That the Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall devise a seal, with suitable inscriptions, for his office, a description of which, with a certificate of approval by the Secretary of the Treasury, shall be filed in the office of the Secretary of State with an impression thereof, which shall thereupon become the seal of office of the Comptroller of the Sealed instru- Currency, and the same may be renewed when necessary. ments evidence Every certificate, assignment, and conveyance executed by the Comptroller, in pursuance of any authority conferred on him by law, and sealed with his seal of office, shall be received in evidence in all places and courts whatsoever; and all copies of papers in the office of the Comptroller, certified by him and authenticated by the said seal, shall in all cases be evidence Impression equally and in like manner as the original. An impression of such seal directly on the paper shall be as valid as if made on wax or wafer.

of seal.

Office for the

SEC. 3. And be it further enacted, That there shall be asbureau in the signed to the Comptroller of the Currency by the Secretary of treasury. Treasury suitable rooms in the Treasury building for conducting the business of the Currency Bureau, in which shall be safe and secure fire proof vaults, in which it shall be the duty of the Comptroller to deposit and safely keep all the plates and other valuable things belonging to his department; and the Comptroller shall from time to time furnish the necessary furniture, stationery, fuel, lights, and other proper conveniences for the transaction of the said business.

.U. S. bonds defined.

Associates

SEC, 4. And be it further enacted, That the term "United States bonds," as used in this act, shall be construed to mean all coupon and registered bonds now issued, or that may hereafter be issued, on the faith of the United States by the Secretary of the Treasury in pursuance of law.

SEC. 5. And be it further enacted, That associations for not less than carrying on the business of banking may be formed by any number of persons, not less in any case than five.

five.

Preliminary

certificate re

Sec. 6. And be it further enacted, That persons uniting to quired, and form such an association shall, under their hands and seals, what to contain, make a certificate which shall specify

Name.

Place of business.

First. The name assumed by such association.

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

Third. The amount of its capital stock, and the number of Capital stock. shares into which the same shall be divided; which capital stock shall not be less than fifty thousand dollars; and in cities whose population is over ten thousand persons, the capital stock shall not be less than one hundred thousand dollars.

Fourth. The names and places of residence of the share- Names, &c. of holders, and the number of shares held by each of them. shareholders. Fifth. The time when such association shall commence.

be acknow

Sixth. A declaration that said certificate is made to enable General desuch persons to avail themselves of the advantages of this act, claration. The said certificate shall be acknowledged before a judge of Certificate to some court of record or a notary public, and the acknowledg ment thereof, certified under the seal of such court or notary, transmitted. ledged and and shall be transmitted, together with a copy of the articles of association which shall have been adopted, to the Comptroller of the Currency, who shall record and carefully preserve the same in his office. Copies of such certificate, duly certified by the Comptroller, and authenticated by his seal of office, copies to shall be legal and sufficient evidence in all courts and places within the United States, or the jurisdiction of the government thereof, of the existence of such association, and of every other matter or thing which could be proved by the production of the original certificate.

Certified

evidence,

be

How capital

stock must be

paid in.

SEC. 7. And be it further enacted, That at least thirty per eentum of the capital stock of such association shall be paid in at the time of the commencement of its banking business, and the remainder of the capital stock of such association shall be paid in instalments of at least ten per centum each on the whole amount to which the association shall be limited, as frequently as one instalment at the end of each succeeding two months from the time of the commencement of its banking operations, until the whole of the capital stock shall be paid in. SEC. 8. And be it further enacted, That if any shareholder, Proceedings or his assignee, shall fail to pay any instalment on the stock against delinwhen the same is required by the foregoing section to be paid, holders. the directors of such association may sell the stock held by such delinquent shareholder, at public auction, having given three weeks' previous notice thereof in a newspaper published and of general circulation in the city where the association is located, if the same be located in a city, and if not so located, then in a newspaper printed, or of general circulation, in the county where the same is located, to any person who will pay the highest price therefor, and not less than the amount then due thereon, with the expenses of advertisement and sale; and if any, shall be paid to the delinquent shareholder.

the

excess,

quent share

of amount of

If no bidder can be found who will pay for such stock the amount due thereon to the association, and the costs of adver tisement and sale, the amount previously paid shall be forfeited to the association, and such stock may subsequently be sold as the directors may order.

Comptroller SEC. 9. And be it further enacted, That whenever a certifito be notified cate shall have been transmitted to the Comptroller of the stock paid in. Currency, as provided in this act, and the association transmitting the same shall notify the Comptroller that at least thirty per centum of its capital stock has been paid as aforesaid, and that such association has complied with all the provisions of this act required to be complied with before such association shall be authorized to commence the business of banking, and that such association is desirous of commencing Proceedings such business, the Comptroller shall immediately proceed, in of Comptroller such manner as he shall by general rules prescribe, to examine upon receipt of the condition of such association; to ascertain especially the notice. amount of money paid in on account of its capital stock; the name and place of residence of each of the directors of such association, and the amount of the capital stock of which each is the bona fide owner, and generally whether such association has complied with all the requirements of this act 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 such association, a statement of all the facts necessary to enable the Comptroller to determine whether such association is lawfully entitled to commence the business of banking under this act.

Proceedings continued.

commence

banking.

SEC. 10. And be it further enacted, That 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 shall appear that such association is lawfully Certificate of entitled to commence the business of banking, the Comptroller authority to shall give to such association a certificate under his hand and official seal, showing that such association has complied with all the provisions of this act required to be complied with before being entitled to commence the business of banking under it, and that such association is authorised to commence said busiPublication ness accordingly; and it shall be the duty of such association to cause said certificate to be published in some newspaper, published in the city or county where such association is located for at least sixty days next after the issuing thereof; Provided, That if no newspaper is published in such city or county, such certificate shall be published as the Comptroller of the Currency shall direct.

of certificate.

limitation.

SEC. 11. And be it further enacted, That every association Corporate orformed pursuant to the provisions of this act may make and ganization and use a common seal, and shall have successsion by the name designated in its articles of association and for the period limited therein, not, however, exceeding twenty years from the passage of this act; by such name may make contracts, sue and be sued, complain and defend in any court of law or equity as fully as natural persons, and may make by-laws, approved by the Comptroller of the Currency, not inconsistent with the laws of the United States or the provisions of this act, for the election of directors, the management of its property, the regulation of its affairs, and for the transfer of its stock; and shall have power to carry on the business of banking by obtaining and issuing circulating notes in accordance with the Banking priprovisions of this act; by discounting bills, notes, and other vileges conferevidences of debt; by receiving deposits; by buying and selling gold and silver bullion, foreign coius, and bills of exchange; by loaning money on real and personal security in the manner specified in their articles of association for the purposes authorized by this act, and by exercising such incidental powers as shall be necessary to carry on such business; to choose one of their number as president of such association, and to appoint a cashier and such other officers and agents as their business may require; and to remove such president, cashier, officers, and agents at pleasure, and appoint others in their place; and their usual business shall be transacted in banking offices located at the places specified respectively in its certificate of association, and not elsewhere.

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red.

Officers.

Place of busi

ness.

Shares per

and how transferred.

SEC. 12. And be it further enacted, That the shares of associations formed under this act shall be deemed personal sonal property, property, and shall be transferable on the books of the association in such manner as may be prescribed in the by-laws or articles of association; and 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 Rights 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. For Individual all debts contracted by such association for circulation, deposit, liabilities or otherwise, each shareholder shall be liable to the amount, shareholders. at their par value, of the shares held by him in addition to the amount invested in such shares.

creditors secur

ed.

of

SEC. 13. And be it further enacted, That it shall be lawful Capital stock for any association formed under this act, by its articles of how increased, association, to provide for an increase of its capital from time

to time as may be deemed expedient, subject to the limitations

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