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before commencing busi. ness.

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 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. Stock of delin- Sec. 15. And be it further enacted, That if any sharequent stockhold. holder, or his assignee, shall fail to pay any installment on

the stock when the same is required by the foregoing section to be paid, the directors of such association may sell the stock of such delinquent shareholder at public auction, having given three weeks' previous notice thereof in a newspaper published and of general circulation in the city or county where the association is located, and if no newspaper is published in said city or county, then in a newspaper published nearest thereto, 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 the excess, if any, shall be paid to the delinquent shareholder.

If no bidder can be found who will pay for such stock the amount due thereon to the association, and the cost of advertisement and sale, the amount previously paid shall be forfeited to the association, and such stock shall be sold, as the directors may order, within six months from the time of such forfeiture, and if not sold it shall be canceled and deducted from the capital stock of the association; and if such cancellation and reduction shall reduce the capital of the association below the minimum of capital required by this act, the capital stock shall, within thirty days from the date of such cancellation, be increased to the requirements of the act; in default of which a receiver may be appointed to close up the business of the association according to the provisions of the fiftieth section of this act.

DEPOSIT OF UNITED STATES BONDS.

Bonds to be deposited

SEC. 16. And be it further enacted, That every association, after having complied with the provisions of this act, pre

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liminary to the commencement of banking business under -before comits provisions, and before it shall be authorized to com

mencing busi mence business, shall transfer and deliver to the Treasurer of the United States any United States registered bonds bearing interest to an amount not less than thirty thousand dollars nor less than one-third of the capital stock paid in, which bonds shall be deposited with the Treasurer of the United States, and by him safely kept in his office until the same shall be otherwise disposed of in pursuance of the provisions of this act;

And the Secretary of the Treasury is hereby authorized to receive and cancel any United States coupon bonds, and to issue in lieu thereof registered bonds of like amount, bearing a like rate of interest, and having the same time to run; and the deposit of bonds shall be, by every association, increased as its capital may be paid up or increased, so that every association shall at all times have on deposit with the Treasurer registered United States bonds to the amount of at least one-third of its capital stock actually paid in:

Provided, That nothing in this section shall prevent àn association that may desire to reduce its capital or to close

its business and dissolve its organization from taking up its bonds upon returning to the Comptroller its circulating notes in the proportion hereinafter named in this act, nor from taking up any excess of bonds beyond one-third of its capital stock and upon which no circulating notes have been delivered.

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CERTIFICATE OF ORGANIZATION.

SEC. 17. And be it further enacted, That whenever a cer- Examination by tificate shall have been transmitted to the Comptroller of Comptroller prethe Currency, as provided in this act, and the association ing certificato. transmitting the same shall notify the Comptroller that at least fifty per centum of its capital stock has been paid in as aforesaid, and that such association has complied with all the provisions of this act as required to be complied with before such association shall be authorized to commence the business of banking, the Comptroller shall examine into the

When certificate

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 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.

Sec. 18. And be it further enacted, That if, upon a careful is to be issued by examination of the facts so reported, and of any other facts Comptroller.

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 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 of this act required to be complied with before being entitled to commence the

business of banking under it, and that such association is -publication authorized to commence said business accordingly; and it

shall be the duty of the association to cause said certificate to be published in some newspaper published in the city or county where the 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, the certificate shall be published in a newspaper published nearest thereto.

thereof.

TRANSFER OF BONDS TO TREASURER.

Transfer of bonds
deposited -
how made.

Sec. 19. And be it further enacted, That all transfers of United States bonds which shall be made by any association under the provisions of this act shall be made to the Treasurer of the United States in trust for the association, with a memorandum written or printed on each bond, and signed by the cashier or some other officer of the association making the deposit, a receipt therefor to be given to said association, or by the Comptroller of the Currency, or by a clerk appointed by him for that purpose, stating that it is held in trust for the association on whose behalf such transfer is made, and as security for the redemption and payment of any circulating notes that have been or may be delivered to such association.

No assignment or transfer of any such bonds by the Treas- Comptroller to urer shall be deemed valid or of binding force and effect countersign unless countersigned by the Comptroller of the Currency. It shall be the duty of the Comptroller of the Currency to keep in his office a book in which shall be entered the name -keep transfer of every association from whose accounts such transfer of books: bonds is made by the Treasurer, and the name of the party to whom such transfer is made; and the par value of the bonds so transferred shall be entered therein; and it shall be the duty of the Comptroller, immediately upon countersigning and entering the same, to advise by mail the asso- -and notify ciation from whose account such transfer was made of the parties : kind and numerical designation of the bonds and the amount thereof so transferred.

Sec. 20. And be it further enacted, That it shall be the -to have access duty of the Comptroller of the Currency to countersign and enter in the book, in the manner aforesaid, every transfer urer to his books. or assignment of any bonds held by the Treasurer presented for his signature; and the Comptroller shall have at all times during office hours access to the books of the treasurer, for the purpose of ascertaining the correctness of the transfer or assignment presented to him to countersign; and the Treasurer shall have the like access to the book above mentioned, kept by the Comptroller, during office hours, to ascertain the correctness of the entries in the same; and the Comptroller shall also at all times have access to the bonds on deposit with the Treasurer, to ascertain their amount and condition.

to Treasurer's books, and Treas.

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CIRCULATING NOTES.

Sec. 21. And be it further enacted, That upon the transfer Circulating notes and delivery of bonds to the Treasurer, as provided in the to be delivered to foregoing section, the association making the same shall be proportion, &c.

,

entitled to receive from the Comptroller of the Currency circulating notes of different denominations in blank, registered and countersigned as hereinafter provided, equal in amount to ninety per centum of the current market value of the United States bonds so transferred and delivered, but not exceeding ninety per centum of the amount of said bonds at the par value thereof, if bearing interest at a rate not less than five per centum per annum; and the amount of such circulating notes to be furnished to each association shall be in proportion to its paid-up capital, as follows, and no more;

To each association whose capital shall not exceed five hundred thousand dollars, ninety per centum of such capital;

To each association whose capital exceeds five hundred thousand dollars, but does not exceed one million dollars, eighty per centum of such capital;

To each association whose capital exceeds one million dollars, but does not exceed three millions of dollars, seventyfive per centum of such capital;

To each association whose capital exceeds three millions of dollars, sixty per centum of such capital;

And that 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 District of Columbia, and in the Territories, according to representative population, and the remainder shall be apportioned by the Secretary of the Treasury among associations formed in the several States, in the District of Columbia, and in the Territories, 8 having due regard to the existing banking capital, resource, and business of such State, District, and Territory. [As amended by act of March 3, 1865, chapter 82.]

Sec. 22. And be it further enacted, That the entire amount of notes for circulation to be issued under this act shall not exceed three hundred millions of dollars. 9

8. The act of July 12, 1870, chapter 252, section 6, provides for a re-distribution of $25,000,000 of circulation, to be taken from the banks of States having an excess, and given to those of States having less than their proportion.

9. The amount of currency notes which may be issued is increased $54,000,000 by the act of July 12, 1870, section 1, to be apportioned as therein

Apportionment of circulation among the States.

Limitation of amount,

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