Sec. 53. And be it further enacted, That if the directors of any association shall knowingly violate, or knowingly permit any of the officers, agents, or servants of the association to violate any of the provisions of this act, all the rights, privileges, and franchises of the association derived from this act shall be thereby forfeited. Such violation shall, however, be determined and adjudged by a proper circuit, district, or territorial court of the United States, in a suit brought for that purpose by the Comptroller of the Currency, in his own name, before the association shall be declared dissolved. And in case of such violation, every director who participated in, or assented to the same, shall be held liable in his personal and individual capacity for all damages which the association, its shareholders, or any other person, shall have sustained in consequence of such violation.

Sec. 54. And be it further enacted, That the Comptroller of the Currency, with the approbation of the Secretary of the Treasury, as often as shall be deemed necessary or proper, shall appoint a suitable person or persons to make an examination of the affairs of every banking association; which person shall not be a director or other officer in any association whose affairs he shall be appointed to examine, and who shall have power to make a thorough examination into all the affairs of the association, and, in doing so, to examine any of the officers and agents thereof, on oath; and shall make a full and detailed report of the condition of the association to the Comptroller. And the association shall not be subject to any other visitorial powers than such as are authorized by this act, except such as are vested in the several courts of law and chancery. And every person appointed to make such examination shall receive for his services at the rate of five dollars for each day by him employed in such examination, and two dollars for every twenty-five miles he shall necessarily travel in the performance of his duty, which shall be paid by the association by him examined.

Sec. 55. And be it further enacted, That every president, director, cashier, teller, clerk, or agent of any association, who shall embezzle, abstract, or wilfully misapply, any of the moneys, funds, or credits of the association, or shall, without authority from the directors, issue, or put in circulation, any of the notes of the association, or shall, without such authority, issue, or put forth, any certificate of deposit, draw any order or bill of exchange, make any acceptance, assign any note, bond, draft, bill of exchange, mortgage, judgment, or decree, or shall make any false entry in any book, report, or statement of the association, with intent, in either case, to injure or defraud the association, or any other company, body politic or corporate, or any individual person, or to deceive any offi cer of the association, or any agent appointed to examine the affairs of any such association, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by imprisonment not less than five nor more than ten years.

Sec. 56. And be it further enacted, That all suits and proceedings arising out of the provisions of this act, in which the United States, or its officers, or agents shall be parties, shall be conducted by the district attorneys of the several districts, under the direction or supervision of the Solicitor of the Treasury.

Sec. 57. And be it further enacted, That suits, actions, and proceedings. against any association under this act, may be had in any circuit, district, or

territorial court of the United States, held within the district in which such association may be established; or in any State, county, or municiple court, in the county or city in which said association is located, having jurisdiction in similar cases: Provided, however, That all proceedings to enjoin the Comptroller under this act shall be had in a circuit, district, or territorial court of the United States, held in the district in which the association is located.

Sec. 58. And be it further enacted, That every person who shall mutilate, cut, deface, disfigure, or perforate with holes, or shall unite or cement together, or do any other thing to any bank bill, draft, note, or other evidence of debt, issued by any such association, or shall cause, or procure the same to be done, with intent to render such bank bill, draft, note, or other evidence of debt, unfit to be reissued by said association. shall, upon conviction, forfeit fifty dollars to the association who shall be injured thereby, to be recovered by action in any court having jurisdiction.

Sec. 59. And be it further enacted, That if any person shall falsely make, forge, or counterfeit, or cause, or procure to be made, forged, or counterfeited, or willingly aid, or assist in falsely making, forging, or counterfeiting, any note, in imitation of, or purporting to be in imitation of, the circulating notes issued under the provisions of this act, or shall pass, utter or publish, or attempt to pass, utter, or publish, any false, forged, or counterfeited note, purporting to be issued by any association doing a banking business under the provisions of this act, knowing the same to be falsely made, forged, or counterfeited, or shall falsely altar, or cause or procure to be falsely altered, or willingly aid or assist in falsely altering, any such circulating notes, issued as aforesaid, or shall pass, utter, or publish, or attempt to pass, utter, or publish, as true, any falsely altered, or spurious circulating note, issued, or purporting to have been issued, as aforesaid, knowing the same to be falsely altered, or spurious, every such person shall be deemed and adjudged guilty of felony, and, being thereof convicted, by due course of law, shall be sentenced to be imprisoned and kept at hard labor for a period of not less than five years, nor more than fifteen years, and fined in a sum not exceeding one thousand dollars.

See. 60. And be it further enacted, That if any person shall make or engrave, or cause or procure to be made or engravd, or shall have in his custody or possession, any plate, die. or block, after the similitude, of any plate, die, or block, from which any circulating notes, issued as aforesaid, shall have been prepared or printed, with intent to use such plate, die, or block, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid, or shall have in his custody or possession any blank note, or notes engraved and printed after the similitude of any notes issued as aforesaid, with intent to use such blanks, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid, or shall have in his custody or possession any paper adapted to the making of such notes, and similar to the paper upon which any such notes shall have been issued, with intent to use such paper, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid, every such person, being thereof convicted by due course of law, shall be sentenced to be imprisoned and kept to hard labor for a term not less than five or more than fifteen years, and fined in a sum not exceeding one thousand dollars.

Sec. 61. And be it further enacted, That it shall be the duty of the Comptroller of the Currency to report annually to Congress, at the commencement of its session :

First. A summary of the state and condition of every association from whom reports have been received the preceding year, at the several dates to which such reports refer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of their debts and liabilities, the amount of circulating notes outstanding, and the total amount of means and resources, specifying the amount of lawful money held by them at the times of their several returns, and such other information in relation to said association as, in his judgment, may be useful.

Second. A statement of the associations whose business has been closed during the year, with the amount of their circulation redeemed, and the amount outstanding.

Third. Any amendment to the laws relative to banking by which the system may be improved, and the security of the holders of its notes and other creditors may be increased.

Fourth. The names and compensation of the clerks employed by him, and the whole amount of the expenses of the banking department during the year. And such report shall be made by or before the first day of December in each year, and the usual number of copies, for the use of the Senate and House, and one thousand copies for the use of the Department, shall be printed by the public printer, and in rediness for distribution at the first meeting of Congress.

Sec. 62. And be it further enacted, That the act entitled "an act to provide a national currency, secured by a pledge of the United States' stocks, and to provide for the circulation and redemption thereof," approved February 25th, 1863, is hereby repealed: Provided, That such repeal shall not affect any appointment made, acts done, or proceedings had, or the organization, acts, or proceed ings of any association organized, or in the process of organization, under the act aforesaid And provided, also, That all such associations so organized, or in process of organization, shall enjoy all the rights and privileges granted, and be subject to all the duties, liabilities, and restrictions imposed by this act, and, with the approval of the Comptroller of the Currency, in lieu of the name specified in their respective organization certificates, may take any other name preferred by them and duly certified to the Comptroller, without prejudice to any right acquired under this act, or under the act hereby repealed; but no such change shall be made after six months from the passage of this act: Provided, also, That the circulation issued or to be issued by such association shall be considered as a part of the circulation provided for in this act.

Sec. 63. And be it further enacted, That persons holding stock, as executors, administrators, guardians, and trustees, shall not be personally subject to any liabilities as stockholders; but the estates and funds in their hands, shall be liable in like manner, and to the same extent, as the testator, intestate, ward, or person interested in said trust funds would be if they were respectively living and competent to act and hold the stock in their own names.

Sec. 64. And be it further enacted, That Congress may at any time amend, alter, or repeal this act. -Approved, June 3, 1864.

JOURNAL OF BANKING, CURRENCY, AND FINANCE.

THE NEW NATIONAL BANK LAW, A GREAT IMPROVEMENT ON THE OLD LAW; NUMBER OF THESE BANKS IN EACH STATE-WILL NOT INCREASE MUCH IN THE FUTURE-PUBLIC DEPOSITS IN, AND CIRCULTION OF NATIONAL BANKS-CIRCULATION OF STATE BANKS IN THE THREE CITIES-EFFECT OF MONEY MARKET ON THE CIRCULATION OF THE BANKS-BANK RETURNS OF THE THREE CITIES -CIRCULARS FROM THE CURRENCY BUREAU RESPECTING THE REDEMPTION OF NATIONAL BANK NOTES, AND THE TRANSFER OF UNITED STATES BONDS-FINANCIAL AFFAIRS IN ENGLAND-STATE OF THE MONEY MARKET-RETURNS OF THE BANK OF ENGLAND AND THE SAVINGS' BANKS-STATE OF CIRCULATION IN THE UNITED KINGDOM-BANK OF FRANCE ELTURNS.

We devote a large part of our space this month to the new United States Banking Law. An examination of its leading features will convince our readers that it is, in many respects, a great improvement on the proposed law, and also on the act of last session. For all the evil that has been taken from it, and all the good there is in it, we are devoutly thankful. It now becomes necessary that these banks should give security for the public monies received; and, further, that such as are organized in St. Louis, Louisville, Chicago, Detroit, Milwaukie, New Orleans, Cincinnati, Cleveland, Pittsburgh, Baltimore, Philadelphia, Boston, Albany, Leavenworth, San Francisco, and Washington, shall redeem their currency at par in New York city, and associations organized elsewhere shall redeem either in one of said cities or in New York. The bill also provides that these National Banks shall be liable to State taxation, and subject to the laws of the State in which they are situated, in respect to the interest they may charge. These provisions certainly remove some of the most objectionable features of the system, and we believe a little more discussion of the merits, or rather demerits, of the act, and a little more experience of its workings, will convince all that government has certainly nothing to gain, but everything to lose, by encourag ing the formation of National Banks at such a time as this.

As to the individuals who are engaged in organizing them, we think they show great courage, and fear they will experience little but disappointment. Organizing any bank, at a time when there is no legitimate bank business for even the old institutions, would be considered by most a little imprudent. But when we remember that the profits of these national associations depend entirely on government business, that the capital they are banking on is made up of values greatly inflated; that a point in the future must be reached, and not far distant, where these values must be reduced to their proper limits, we cannot but feel that they are very far from having a safe and quiet sea to sail upon. As the Secretary of the Treasury has resigned possibly these new lights may be quickly snuffed out by a repeal of the act itself.

But even as the law now stands the provisions which we have referred to above have taken from these banks the chief privileges and advantages given them before. Their only hope of success was founded upon the destruction of the State institutions, and the Secretary, therefore, freely expressed his determination to ruin the State Banks, that the National Banks might be built up. Congress, however, did not sympathize with him in his crusade, and so passed the law in the form we now have it. Thus these new banks have received a great check,

and, hereafter, they will form a less conspicuous feature in the financial affairs of the country.

The following table gives a statement of the number and aggregate capital of the new National Banks in each State on the 27th of May :

The number now increases very slowly. One great inducement for their establishment, as we have already stated, was the use of the public money; but now the provision of law requiring security to be given makes this privilege less agreeable, and, besides, this using government funds has been found to be extra hazardous. The exigencies of the public service require the money at times to be suddenly drawn down very close, and this is incompatible with the use of it to any great extent. The only safe use the public money can be put to is to lend it at call, or, in other words, to promote speculation that may be suddenly destroyed to the great loss of the banks.

The clause in the new bill in relation to compelling the national banks to redeem their notes at commercial centres seems to have grown out of the necessities of the case. There is very little general business done by means of bank facilities. Almost all business is done now on a cash basis. The government supplies are however furnished by dealers who do not get their money promptly from the department, and therefore require discounts from the banks. Then when they get their pay it is in drafts on national banks. These banks attempted to make payment in the uncurrent notes of national banks at a distance, a proceeding which the old banks very properly resented. To remedy this the new loan makes the national banks keep their notes at par. In relation to this a correspondence took place between the Comptroller and a national bank, in which the Comptroller wrote the following letter:

DEAR SIR:

TREASURY DEPARTMENT, Office of the Comptroller of
the Currency, WASHINGTON, May 28, 1864.

Your favor of the 27th inst. is received. I am acting in an executive, and not in a judicial capacity; but I have no hesitation in giving my opinion upon the point presented by you, which opinion is, that Government depositaries, whether they are Assistant Treasurers or National Banks, have the right to pay Government drafts, by whomsoever held, in the kind of currency which is receivable for Government dues, and by which Government obligations can be discharged.

The Government is bound to receive in payment of all its dues, except duties on imports, the notes of the national banks. A draft of the Government upon a national