profits, until such reserve is made good. If within thirty days after notice from the Comptroller to make such reserve good the same is not done, the Comptroller, with the concurrence of the Secretary of the Treasury, may appoint a receiver to wind up the affairs of such bank.

The reserve required to be kept by National Gold Banks is not only a percentage on its deposits, as in the case of national banks, but on its circulation as well.

Each national bank in any of the reserve cities shall, with the approval of the Comptroller, select a national bank in a central reserve city, at which it may redeem its circulating notes at par, and may keep one half of its lawful money reserve in cash deposits in such central reserve city, but this does not apply to National Gold Banks.

Every national bank must receive and take at par, for any debt or liability to it, the notes or bills of any other national bank, except the notes of associations organized for the purpose of issuing notes payable in gold.

The rate of interest which may be charged is the legal rate prevailing in the State where such bank is located, or the same as that which State banks of issue are permitted by State law to charge.

Where no rate is fixed, seven per centum; but the premium on a bill of exchange payable at some other place, is not considered interest.

The penalty for usury is the recovery of twice the amount of interest received, by an action commenced within two years from the time of the transaction.

The Directors may, semi-annually, declare a dividend of so much of the net profits as they shall judge expedient, but before the declaration of such dividend, each bank shall carry one tenth of its net earnings of the preceding half year to its surplus fund until the same shall amount to twenty per cent. of its capital stock.

Not more than ten per cent. of the capital paid in shall

be loaned to any individual corporation or firm, or the different members thereof, but this does not prohibit the discount of bills of exchange drawn against existing values, or of commercial paper owned by the person negotiating the same.

No loan or discount may be made on the security of the stock of such bank, nor shall a bank become the purchaser or holder of such shares except as security for a previously contracted debt, and such stock shall within. six months be disposed of, on notice, at public sale, on failure to do which a receiver may be appointed.

The liabilities of a bank shall at no time exceed its capital stock paid in and undiminished, except on demands of the following nature:

Ist. Notes of circulation.

2d. Moneys deposited with or collected by the association.

3d. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto.

4th. Liabilities to the stockholders of the association for dividends and reserve profits. Its circulating notes. shall not be pledged or hypothecated to procure money to be paid in on, or to increase its capital.

No portion of its capital, either in the form of dividends. or otherwise, shall be withdrawn by the association or any member.

No dividends shall be declared in excess of the net profits of the bank, after deducting all losses sustained and bad debts contracted. Debts on which interest is due and unpaid for six months, unless well secured and in process of collection, shall be considered "bad debts."

Every association which shall have failed to pay up its capital stock, as required by law, and every association whose capital stock shall have become impaired by losses or otherwise, shall, within three months after receiving notice thereof

from the Comptroller of the Currency, pay the deficiency in the capital stock, by assessment upon the shareholders pro rata for the amount of capital stock held by each; and the Treasurer of the United States shall withhold the interest upon all bonds held by him in trust for such association upon notification from the Comptroller of the Currency, until otherwise notified by him.

"And provided. That if any shareholder or shareholders of such bank shall neglect or refuse, after three months' notice, to pay the assessment, as provided in this section, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such shareholder or shareholders to be sold at public auction (after thirty days' notice shall be given by posting such notice of sale in the office of the bank, and by publishing such notice in a newspaper of the city or town in which the bank is located, or in a newspaper published nearest thereto), to make good the deficiency; and the balance, if any, shall be returned to such delinquent shareholder or shareholders."

No bank shall pay out or put in circulation the notes of any other bank which are not receivable and redeemable at par by such bank.

Over-certification of checks is strictly prohibited, rendering officers or clerks liable to imprisonment for not less than five years nor more than ten, and giving the Comptroller power to appoint a receiver.

A list of the shareholders shall be kept by the President and Cashier, containing the names and residences of the shareholders and the number of shares of stock held by each, which list shall be subject to inspection by the shareholders of the banks, creditors, and State officers authorized to assess taxes, and on the first Monday of July a copy of such list sworn to by the President or Cashier shall be mailed to the Comptroller.

Five reports a year shall be mailed by each bank to the Comptroller, verified under oath by the President and Cashier and attested by at least three directors, giving in

detail under proper headings the resources and liabilities of the bank at the close of business of any past day by him specified, and shall be mailed to the Comptroller within five days after a request for same, and in the form in which mailed to the Comptroller shall be published in a newspaper, as heretofore described, and proof of such publication sent the Comptroller. The Comptroller may also, whenever he deems it desirable, call for special reports.

Each bank must, within ten days after declaring any dividend, report to the Comptroller the amount of such dividend, also the amount of the net earnings, of such bank in excess of such dividend, which report shall be attested by the oath of the President or the Cashier.

A penalty of one hundred dollars a day for each day's delay after the periods named in the last two paragraphs is imposed for failure to make and transmit the reports therein mentioned, which penalty, upon delay or refusal to pay by the association after it has been assessed, may be retained by the United States Treasurer, upon the order of the Comptroller, out of the interest, as it may become due, on the bonds deposited by said association to secure circulation. All penalties collected under this section shall be paid into the Treasury of the United States.

The following taxes are payable, on the average amount of its circulating notes, in January and July of each year one half of one per cent.

Semi-annually on the average deposits one fourth of one per cent. and a like per cent. on the average amount of its capital stock beyond the sum invested in United States bonds.

It is required to report, within ten days from the first days of January and July yearly, to the Treasurer the average amount of its notes in circulation, of its deposits, and of its capital beyond the amount invested in United States bonds for the preceding half year. The penalty

provided for a failure to so report is two hundred dollars, to be collected as above, or by suit.

The Comptroller upon the failure of any bank to make such report shall assess the tax on circulation, on the amount of notes delivered to such bank, and upon the highest amount of its capital and deposits. These taxes are collected out of the interest on the bonds to the credit of the bank. Over-payments of taxes are refunded.

The National taxes just recited do not prevent the imposition of State taxes, except that such taxes shall not be of a discriminating nature.

Examiners may be appointed by the Comptroller with the approval of the United States Treasurer to make an examination into all the affairs of any national bank, and report thereon. They shall have the power to examine officers or clerks under oath, and call for the production of any books and papers belonging to the bank which they may deem necessary. The fees of such examiner or examiners, for the examination of banks not located in the redemption cities or in the States of Oregon, California, Nevada, or the Territories, shall be, for banks having a capital of less than $100,000, $20; $100,000-$300,000, $25; $300,000 and less than $400,000, $35; $400,000 but less than $500,000, $40; $500,000-$600,000, $50; $600,000 and over, $75.

These charges shall be assessed by the Comptroller upon, and paid by the banks so examined.

The fees charged for the examination of banks in the redemption cities' and in the States of Oregon, California, or Nevada, or any of the Territories, shall be fixed by the Secretary of the Treasury upon the recommendation of the Comptroller. No person shall be appointed to examine the affairs of any bank of which he is a director or other officer.

Any national bank may go into liquidation and be 1 There are now no redemption cities.