provide a national currency secured by a pledge of United States bonds, and to provide 6 April 1869. for the circulation and redemption thereof," approved June 3d 1864, (a) with intent to Punishment of defraud or deceive, shall be liable to the same punishment therein provided for the accessories. principal. 13 Stat. 116. 59. All suits and proceedings arising out of the provisions of this act, in which the 3 June 1864 256. United States or its officers or agents shall be parties, shall be conducted by the district attorneys of the several districts, under the direction and supervision of the solicitor Duties of district of the treasury. attorneys. Ibid. 257. courts. 60. 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 dis- Jurisdiction of trict in which such association may be established; or in any state, county or municipal the federal court in the county or city in which said association is located, (b) 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. Ibid. 258. 61. 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 Penalty for mutiother evidence of debt, issued by any such association, or shall cause or procure the lating notes. 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. Ibid. 59. 62. 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 Punishment of counterfeiting, any note in imitation of, or purporting to be in imitation of, the cir- forgery. culating 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 alter 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.(c) 63. If any person shall make or engrave, or cause or procure to be made or engraved, Ibid. 60. or shall have in his custody or possession any plate, die or block after the similitude of Engraving any plate, die or block from which any circulating notes issued as aforesaid shall have plates, &c. 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 a's aforesaid; or shall have in his custody or possession any paper adapted to the making Possession of of such notes, and similar to the paper upon which any such notes shall have been paper, &c. 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. 64. It shall be the duty of the comptroller of the currency to report annually to congress at the commencement of its session: Ibid. 61. Comptroller's I. A summary of the state and condition of every association from whom reports annual 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 associations as, in his judgment, may be useful. (a) Supra 57. (b) This clause is permissive, not restrictive of the right to ne a national bank in any court of law or equity given by the 8th section (supra 8). They are liable to be sued in the courts of another state than that in which they are located. Cooke v. VOL. II.-6 State Bank of Boston, 3 Abb. Pr. (N. S.) 339. (c) The offence of passing a counterfeit note of a national bank, is punishable in a state court; the jurisdiction of the federal and state courts, in such cases, is concurrent. Jett v. Virginia, 16 Am. L. R. 260. 3 June 1864. Ibid. 262. Repeal of act of 1863 Ibid. 263. Trustees, &c., not to be personally liable as stockholders. Ibid. 64. 3 March 1865 2 1. 13 Stat. 484. Existing state banks to have preference in organizing national banks. 2 March 1867. 14 Stat. 572. Excess of duty paid by banks to be refunded. 3 March 1869 21. 15 Stat. 326. make reports. What such reports to contain. II. A statement of the associations whose business has been closed during the year, with the amount of their circulation redeemed and the amount outstanding. III. 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. IV. 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 readiness for distribution at the first meeting of congress. 65. The act entitled "An act to provide a national currency, secured by a pledge of 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 appointments made, acts done or proceedings had, or the organization, acts or proceedings 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. 66. 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. 67. Congress may at any time amend, alter or repeal this act. 68. Any existing bank organized under the laws of any state having a paid-up capital of not less than seventy-five thousand dollars, which shall apply before the first day of July next for authority to become a national bank under the act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June 3d 1864, and shall comply with all the requirements of said act, shall, if such bank be found by the comptroller of the currency to be in good standing and credit, receive such authority in preference to new associations applying for the same: Provided, that it shall be lawful for any bank or banking association organized under state laws, and having branches, the capital being joint and assigned to and used by the mother bank and branches in definite proportions, to become a national bank association in conformity with existing laws, and to retain and keep in operation its branches, or such one or more of them as it may elect to retain; the amount of the circulation redeemable at the mother bank and each branch to be regulated by the amount of capital assigned to and used by each. 69. In all cases where a national bank has paid or may pay in excess of what may be, or has been found due from said bank, on account of the duty required to be paid to the treasurer of the United States, the bank so having paid or paying such excess of duty may state an account therefor, which, on being certified by the treasurer of the United States, and found correct by the first comptroller of the treasury, shall be refunded in the ordinary manner by warrant on the treasury. 70. In lieu of all reports required by section thirty-four of the national currency act, every association shall make to the comptroller of the currency not less than five When banks to reports during each and every year, according to the form which may be prescribed by him, verified by the oath or affirmation of the president or cashier of such association, and attested by the signature of at least three of the directors; which report shall exhibit, in detail and under appropriate heads, the resources and liabilities of the association at the close of business on any past day to be by him specified, and shall transmit such report to the comptroller within five days after the receipt of a request or requisition therefor from him; and the report of each association above required, in the same form in which it is made to the comptroller, shall be published in a newspaper published in the place where such association is established, or if there be no newspaper in the place, then in the one published nearest thereto in the same county, Publication. at the expense of the association; and such proof of publication shall be furnished as 3 March 1869. may be required by the comptroller. And the comptroller shall have power to call ure to report. for special reports from any particular association, whenever in his judgment the same Special reports. shall be necessary in order to a full and complete knowledge of its condition. Any Penalty for failassociation failing to make and transmit any such report shall be subject to a penalty of one hundred dollars, for each day after five days that such bank shall delay to make and transmit any report as aforesaid; and in case any association shall delay or refuse to pay the penalty herein imposed when the same shall be assessed by the comptroller of the currency, the amount of such penalty may be retained by the treasurer of the United States, upon the order of the comptroller of the currency, out of the interest, as it may become due to the association, on the bonds deposited with him to secure circulation; and all sums of money collected for penalties under this section shall be paid into the treasury of the United States. Ibid. 22. earnings. 71. In addition to said reports, each national banking association shall report to the comptroller of the currency the amount of each dividend declared by said association, Reports of diviand the amount of net earnings in excess of said dividends, which report shall be dends and net made within ten days after the declaration of each dividend, and attested by the oath of the president or cashier of said association, and a failure to comply with the provisions of this section shall subject such association to the penalties provided in the foregoing section. IV. VOLUNTARY BANKRUPTCY. 41. Right of set-off. 42. Claims of lien-creditors. 43. Probate of debt to be a waiver of action against the bankrupt. Suits at law to be stayed. 44. Debts due in several rights. 45. Before whom probate to be made. 46. How debts to be proved. 47. Effect of probate. 48. When probate to be postponed. 49. Preferred creditors to surrender their securities. 50. Allowance of probate. Attorneys in fact. 51. Appeal from rejection of probate. 52. Surrender of instruments proved. VII. SALE OF PERISHABLE PROPERTY, ETC. 53. Sales of perishable property. 54. Sales of property the title to which is in dispute. Proceeds to be deemed measure of value. Not to bar actions against assignee. VIII. EXAMINATION OF THE BANKRUPT, ETC. 55. Examination of bankrupts. 56. Of other persons. Process of contempt. 57. Examination where the bankrupt is disabled from attend ance. 58. Bankrupt to be subject to the order of the court until dis59. When default to be excused. 19. Who may be adjudged bankrupt. Petition. Schedules. charged. To execute proper instruments. Inventory. Oath. 20. Reference to register. Warrant. Notice. 24. Return of warrant. Proceedings not to abate by death. V. OF THE ASSIGNMENT. 22. Choice of assignee. Approval of the judge. 23. Assignee may be required to give bond. Approval. In default, to be removed. 24. Assignment to be executed. Effect thereof. 25. Exempt property. Not to pass by assignment. Chattel mortgages not to be affected. 26. Choses in action to vest in the assignee. Power to prosecute and defend suits. Certified copy of assignment to be evidence. Trust property not to pass. 27. Notice to be given of intended action against assignee. Possession of books. Suits not to abate by death or removal of assignee. Power to redeem mortgages, &c. Further assur 60. Power to amend schedules. 61. Examination of bankrupt's wife. 62. Bankrupts not to be liable to arrest, pendente lite. IX. DISTRIBUTION OF THE BANKRUPT'S ESTATE. 63. Creditors to share pro rata. Preference of wages. SureDuties of assignee. ties to make proof of payment. 64. General meeting of creditors. 67. Power to sell uncollectable claims. 68. Dividends not to be disturbed by subsequent proof of claims. 69. Accounts of assignee, prior to final dividend. Examination of assignee. 70. Compensation of assignee. 71. Power to order meetings of creditors. 14 Stat. 517. tion of the dis trict courts. I. JURISDICTION IN BANKRUPTCY. (a) 2 March 1867 2 1. 1. That the several district courts of the United States be and they hereby are con stituted courts of bankruptcy; and they shall have original jurisdiction, in their respecOriginal jurisdic- tive districts, in all matters and proceedings in bankruptcy, and they are hereby authorized to hear and adjudicate upon the same, according to the provisions of this act.(b) The said courts shall be always open for the transaction of business under this act; and the powers and jurisdiction hereby granted and conferred shall be exercised as well in vacation as in term time; and a judge sitting at chambers shall have the same powers and jurisdiction, including the power of keeping order and of punishing any contempt of his authority, as when sitting in court. How exercised. Extent of jurisdiction in bankruptcy. Powers of the courts. 2. The jurisdiction hereby conferred shall extend to all cases and controversies arising between the bankrupt and any creditor or creditors who shall claim any debt or demand under the bankruptcy; to the collection of all the assets of the bankrupt; to the ascertainment and liquidation of the liens and other specific claims thereon; to the adjustment of the various priorities and conflicting interests of all parties; and to the marshalling and disposition of the different funds and assets, so as to secure the rights of all parties and due distribution of the assets among all the creditors ; (c) and to all acts, matters and things to be done under and in virtue of the bankruptcy, until the final distribution and settlement of the estate of the bankrupt, and the close of the proceedings in bankruptcy.(d) 3. The said courts shall have full authority to compel obedience to all orders and decrees passed by them in bankruptcy, by process of contempt and other remedial process, to the same extent that the circuit courts now have, in any suit pending therein (a) The constitution provides that congress shall have power to establish uniform laws on the subject of bankruptcies through out the United States. Art. I. sect. 8. Under this clause, the power to pass bankrupt laws is exclusively in congress. Golden t. Prince, 3 W. C. C. 313. The bankrupt law of 1841 was a constitutional exercise of this power. Ex parte Klein, 1 How. 277. The constitutional requirement that the system of bankruptcy should be uniform throughout the United States, is fulfilled, if the bank rupt law operate uniformly upon whatever would have been liable to execution, if no such law had been passed, though the subjects of its operation may not be, in all respects, the same in every one of the states. Ex parte Appold, 1 Bank. Reg. 178. 8. c. 16 Am. L. R. 624. The object of the act is to compel an equal distribution of the bankrupt's assets among all his creditors. Morgan v. Mastick, 2 Bank. Reg. 163. (b) The jurisdiction of the district courts, sitting as courts of bankruptcy, is superior and exclusive, in all matters arising under the bankrupt act. Ex parte Barrow, 1 Bank. Reg. 125. They have full and adequate jurisdiction in all matters relating to bankruptcy, at law and in equity. Ex parte Bowie, 1 Bank. Reg. 185. The power to pass uniform laws on the subject of bankruptcles, is not limited by the principles on which the English bankrupt laws are founded. Ex parte Klein, 1 How. 277. Congress has a complete constitutional authority to enact a bankrupt law, giving to the district and circuit courts full jurisdiction, in law and equity. Mitchell v. Great Works Milling and Manufacturing Co., 2 Story 648. They had power, under the constitution, to bring all parties, estates and interests connected with a bankrupt, into the district court for adjudication; but by the act of 1867 they have not done so. Ex parte Campbell, 16 Am. L. R. 100; Ex parte Burns, Ibid. 105. The district courts have power to order a sale of mortgaged property, discharged of the encumbrances. Dwight v. Ames, 2 Bank. Reg. 147. (c) The district court may ascertain and liquidate a prior lien on the bankrupt's property. Ex parte Winn, 1 Bank. Reg. 131. A claim for damages for a collision against a vessel in the hands of the assignee. must be determined in bankruptcy. Ex parte People's Mail Steamship Co., 2 Bank. Reg. 170. It will not restrain the proceedings of a bona fide lien-creditor for the collection of his debt. Ex parte Donaldson, 16 Am. L. R. 213. But in case of involuntary bankruptcy, if the bankrupt have fraudu lently confessed a judgment in contemplation of bankruptcy, with a view to give a preference to the judgment-creditor, and the latter had reasonable cause to believe that such was the intent, he may be enjoined, either by the district court in bankruptcy, or in a distinct proceeding in the circuit court. Irving v. Hughes, 16 Am. L. R. 209; and see Ex parte Jacoby, 6 Int. R. Rec. 149; Ex parte Metcalf, Ibid. 223; Ex parte Reed, Ibid. 21; 8. c. 24 Leg. Int. 196; Ex parte Wallace, 2 Bank. Reg. 52; Ex parte Kerosene Oil Co., Ibid. 164; s. c. 2 Am. L. T. Bank. 79. A district court has no power to grant an injunction to stay proceedings in another court, by reason of the pendency of proceedings in bankruptcy in another state, and before another tribunal. Ex parte Richardson, 2 Bank. Reg. 74. A proceeding by the assignee to restrain the suit of a lien-creditor, may be by petition; it is not necessary to file a bill. Ex parte Kerosene Oil Co., 2 Bank. Reg. 164. The court will not enjoin a suit in the state court, against the marshal, for seizing the goods of a third person, under a warrant against the bankrupt. Ex parte Marks, 2 Bank. Reg. 175. A (d) This does not authorize the district courts to enjoin the state courts, or their suitors. Ex parte Campbell, 16 Am. L. R. 100. Contra, Ex parte Reed, 24 Leg. Int. 196; 8. c. 6 Int. R. Rec. 21; Ex parte Jacoby, Ibid. 149; Ex parte Metcalf, Ibid. 223. judgment cannot be assailed in the district court, but the assignee and creditors must resort to the state court to test its validity. Ex parte Burns, 16 Am. L. R. 105; and see Atkinson v. Purdy, Crabbe 551. Where there is no conflict of jurisdiction between the officers of the state courts and court of bankruptcy, the latter will not interfere with its summary process, to prevent such conflict. Ex parte Davidson, 2 Bank. Reg. 49. A court of bankruptcy has power to dispose of the encumbered property of the bankrupt in any manner deemed best for the interest of all concerned. Ex parte Salmons, 2 Bank. Reg. 19; Dwight v. Ames, Ibid. 147. Its jurisdiction, however, to sell real estate and pay off liens, is not exclusive. Ex parte Bowie, 1 Bank. Reg. 185. creditor may petition the court for relief, to be paid a judgment against the bankrupt, out of moneys in the hands of the assignee; but the proper way to bring the creditor into the case is by petition, not by motion. Ex parte Smith, 2 Bank. Reg. 98. The court has power to supersede the proceedings in bankruptcy, with the consent of the creditors. Ex parte Miller, 1 Bank. Reg. 105; Ex parte Sherburne, Ibid. 155; Morris's Estate, Crabbe 70. A in equity. Said courts may sit, for the transaction of business in bankruptcy, at any place in the district, of which place and the time of holding court they shall have given notice, as well as at the places designated by law for holding such courts. 2 March 1867. courts. 4. The several circuit courts of the United States, within and for the districts where Ibid. & 2. the proceedings in bankruptcy shall be pending, shall have a general superintendence Jurisdiction of and jurisdiction of all cases and questions arising under this act; (a) and except when the circuit special provision is otherwise made, may, upon bill, petition or other process, of any party aggrieved, hear and determine the case in a court of equity. (b) The powers and How exercised. jurisdiction hereby granted may be exercised either by said court, or by any justice thereof, in term time or vacation. diction. actions. 5. Said circuit courts shall also have concurrent jurisdiction with the district courts Concurrent jurisof the same district, of all suits at law or in equity, which may or shall be brought by the assignee in bankruptcy against any person claiming an adverse interest, or by such person against such assignee, touching any property or rights of property of said bankrupt transferable to or vested in such assignee; but no suit at law or in equity shall Limitation of in any case be maintainable by or against such assignee, or by or against any person claiming an adverse interest, touching the property and rights of property aforesaid, in any court whatsoever, unless the same shall be brought within two years from the time the cause of action accrued, for or against such assignee :(c) Provided, that nothing herein contained shall revive a right of action barred at the time such assignee is appointed. Ibid. 49. 6. All the jurisdiction, power and authority conferred upon and vested in the district ries. powers. in the said District of Columbia or in either of the said territories. And in those Circuit court II. REGISTERS. 14 Stat. 518. registers. 7. It shall be the duty of the judges of the district courts of the United States, within 2 March 1867 3 3. and for the several districts, to appoint in each congressional district in said districts, upon the nomination and recommendation of the chief justice of the supreme court of Appointment of the United States, one or more registers in bankruptcy, to assist the judge of the district court in the performance of his duties under this act. No person shall be eligi- Qualifications. ble to such appointment unless he be a counsellor of said court, or of some one of the courts of record of the state in which he resides. Before entering upon the duties of Bonds. his office, every person so appointed a register in bankruptcy shall give a bond to the United States, with condition that he will faithfully discharge the duties of his office, in a sum not less than one thousand dollars, to be fixed by said court, with sureties satisfactory to said court, or to either of the said justices thereof; and he shall, in open court, take and subscribe the oath prescribed in the act entitled “An act to prescribe Oath. an oath of office, and for other purposes," approved July 2d 1862, (d) and also that he will not, during his continuance in office, be, directly or indirectly, interested in or benefited by the fees or emoluments arising from any suit or matter pending in bankruptcy, in either the district or circuit court in his district. Ibid. 4. 8. Every register in bankruptcy, so appointed and qualified, shall have power, and it shall be his duty to make adjudication of bankruptcy; to receive the surrender of Powers and duany bankrupt; (e) to administer oaths in all proceedings before him; to hold and ties of registers. preside at meetings of creditors; to take proof of debts; to make all computations of dividends, and all orders of distribution, and to furnish the assignee with a certified copy of such orders, and of the schedules of creditors and assets filed in each case; to audit and pass accounts of assignees; to grant protection; to pass the last examina (a) No appeal lies to the circuit court from an adjudication of bankruptcy. Ex parte O'Brien, 6 Int. R. Rec. 182. Nor on any other question arising in the course of the proceedings. Ex parte Read, 2 Bank. Reg. 2; Ruddick v. Billings, 3 Bank. Reg. 14. (b) Any creditor who considers himself aggrieved by the discharge of a bankrupt, has a right to be heard in the circuit court, by bill or petition. Ruddick v. Billings, 3 Bank. Reg. 14; and see Irving v. Hughes, 16 Am. L. R. 209; Langley v. Perry, 2 Bank. Reg. 180; s. c. 17 Am. L. R. 427. The circuit court has jurisdiction of a bill in equity brought by the assignee to redeem a chattel mortgage; Dwight v. Ames, 2 Bank. Reg. 147; and may enjoin a sale under a power contained in the mortgage. Ibid. The only construction which gives due effect to all parts of the act relating to revisory jurisdiction, seems to be that, which, on the one hand, excludes from the category of general superintendence and jurisdiction of the circuit court the appellate jurisdiction defined by the 8th section; and in the other, brings within that category all decisions of the district conrt, or of the (c) This has no application to a cause of action arising in faver (d) See tit. "Oaths," 1.' (e) The register may receive a surrender of the bankrupt's |