bank from its obligation to pay and discharge all the liabilities created by law, or incurred by it before such change.

Upon such change the plates and dies of any such bank in the Banking Department shall be forthwith so obliterated as to prevent all future use of the same.

Section 63: "Whenever any banking corporation, organized and doing business under the laws of the United States, shall under the provisions of any act of Congress be authorized to dissolve its organization as such national bank corporation, and shall have taken the action required to effect such dissolution, a majority of the directors of such dissolved corporation may, upon the authority in writing of the owners of two thirds of its capital stock, execute the certificate of incorporation required by Section 40 of this chapter.

"Upon the execution and proof of acknowledgment of such certificate, which shall also set forth the authority in writing of the stockholders as required by this section, and upon filing a copy thereof in the office of the Superintendent of Banks, with proof that the original is duly recorded in the office of the clerk of the county where any office of such corporation shall be located, such corporation shall be held and regarded as an incorporated bank under and in pursuance of the laws of this State, and shall be entitled to all the privileges and be subject to all the liabilities of banks so incorporated; and thereupon all the property of the dissolved national bank corporation shall immediately by act of law and without any conveyance or transfer be vested in and become the property of such State bank. The directors of the dissolved corporation at the time of such dissolution shall be the directors of the bank created in pursuance hereof until the first annual election of directors thereafter, and shall have power to take all necessary measures to perfect its organization, and to adopt such regulations concerning its business and management as may be proper and just and not inconsistent with law."

The section relating to Circulating notes, plates, etc., will be here omitted, as State banks no longer issue circu

lating notes, only one bank having out an issue of about $2400. The sections relating to the issue of notes, deposit of securities to insure their payment, and other matters connected therewith are consequently omitted.

Section 76. After the application of the proceeds of such security to the redemption of the circulating notes presented within the time prescribed by Section 73, the residue of such proceeds shall be deposited in the Treasury and applied toward paying the ordinary expenses of the Banking Department.

Notices required to be given to creditors of insolvent banks shall be published at least six weeks in one or more newspapers selected by the Superintendent.

Section 79. Any bank or its receiver or agents and any individual banker or his legal representative or successor may give notice to the superintendent of their or his intention to close business.

After the payment of all lawful claims and demands against such bank or banker they or he may divide the remaining property of the bank or banker among the stockholders or their personal representatives.

Section 82 prohibits the circulation of foreign bank notes, by which is meant the notes of any bank situated outside of the State of New York.

Section 83 provides that no bank shall pay out for paper discounted or purchased any circulating note not received by such bank at par.

No bank or individual banker shall issue or put in circulation any bill or note of such bank or banker unless the same shall be made payable on demand and without interest, except bills of exchange on foreign countries or places beyond the limits or the jurisdiction of the United States, which bills may be made payable at or within the customary usance, or at or within ninety-days' sight, and, except certificates of deposit payable on presentation, with or without interest, to bearer or to the order of a

person named therein; but no such certificate of deposit shall be issued except as representing money actually on deposit.

"All checks, bills of exchange, or drafts appearing on their face to have been drawn upon any bank or individual banker carrying on banking business under the laws of this State, which are on their face payable on any specified day or in any number of days after date or sight thereof, shall be due and payable on the day mentioned for the payment of the same, without any days of grace being allowed, and it shall not be necessary to protest the same for non-acceptance."

By the Act of May 9, 1894, "on all notes, drafts, checks, acceptances, bills of exchange, bonds, or other evidences of indebtedness made, drawn, or accepted by any person or corporation after this act shall take effect and in which there is no expressed stipulation to the contrary, no grace, according to the custom of merchants, shall be allowed, but the same shall be due and payable, as therein expressed, without grace. "This act shall take effect and be in force on the 1st day of January, 1895."

Section 88.-"No foreign corporation, other than a national bank, shall keep any office for the purpose of receiving deposits, or discounting notes or bills, or issuing any evidence of debt to be loaned or put in circulation as money within this State."

Section 89.-"No bank in this State or any officer or director thereof, shall open or keep an office of deposit or discount other than at its usual place of business.

"Every such officer or director violating the provisions of this section shall forfeit to the people of the State the sum of $1000 for every such violation."

Section 90.-" No person shall pay, give, or receive in payment, or in any way circulate or attempt to circulate any bank bill or any promissory note, bill, check, draft, or other evidence of debt, issued by any bank or individual banker, which shall be made payable otherwise than in lawful money of the United States.

"Every person violating this provision shall forfeit to the people of the State the face amount or value of such bill, note, or other evidence of debt so given, paid, received, circulated, or offered, to any person who will sue for the same sixty days after the commission of the offence."

Section 91.-" All bills, notes, or other instruments which shall be issued by any bank or individual banker purporting to be received in payment of debts due to it, shall be deemed and taken to be promissory notes for the payment on demand of the sum or value expressed in such instrument, and such sum shall be recoverable by the holder or bearer of such instrument, in like manner as if the same were a promissory note."

Section 92.-"No person engaged in the business of banking in this State, not subject to the supervision of the superintendent and not required to report to him by the provisions of this chapter, shall make use of any office sign at the place where such business is transacted, having thereon any artificial or corporate name, or other words indicating that such place or office is the place or office of a bank; nor shall such person or persons make use of or circulate any letter-heads, billheads, blank notes, blank receipts, certificates, circulars, or any written or printed or partly written and partly printed paper whatever, having thereon any artificial or corporate name, or other word or words, indicating that such business is the business of a bank.

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Every person violating this provision shall forfeit the sum of $1000. But this section shall not apply to any person or persons engaged in the business of banking prior to October, 1892."

CHAPTER IV.

Methods of Business of Banks-Loans-Mutual Assistance-Over-Certification-Reclamation-Management-Board of Directors-Officers and

Employés.

Methods of Business.-The method of conducting business is in a general way the same in all banks, whether national, State, savings, or private. They all receive money from their depositors, on which savings banks and some private banks allow interest, but State and national banks generally do not. This money is again loaned at a higher rate of interest than that paid to the depositors; the dif erence in rate between the interest paid and the interest received constituting the entire income of savings banks and forming the principal income of all banks.

Of course, in the different banks the loans made by them assume a different form, the law prescribing that banks of deposit may negotiate loans on commercial paper and personal securities, the National law forbidding banks organized under it to loan on real estate. Consequently, the bulk of all loans made by banks of deposit must be on commercial paper and personal security.

The laws of the State of New York forbid savings banks loaning on commercial paper, and specify, with great particularity, the kind of collateral on which they may make loans, including in that collateral first mortgages on real estate,-hence, a very large portion of their loans are made on real estate.