could not be averted; and even the remote possibility of such a lack of confidence would destroy the usefulness of currency based on such securities. If this statement is met with the answer that the Government would be ready to redeem this currency because fully protected by reason of holding those securities, it may be replied that the Government should not be compelled to maintain a reserve to meet these notes if presented for payment, and that Congress, representing the people, would not permit the Government to go into the business of keeping money at hand to meet such emergencies. In answer to the foregoing, it may be shown that the currency contemplated can be made more secure than the present National bank currency, and without the necessity for maintaining a reserve. The circulation of each State bank could be made a preferred lien upon the assets of each institution, to be paid before any other liability is met. The stockholders should be individually liable precisely as the law of the State of New York contemplates. Assurance would be doubly sure if a yearly revenue tax of one-half of one per cent. collected upon the amount of circulation of each bank, was to be placed in the Treasury as a safety fund for the redemption of all circulating notes in any case where the security mentioned might be inadequate. When the accumulation of a safety fund, as herein suggested, exceeded a certain percentage of the amount represented by the circulating notes, it could be disposed of in various ways. For example: It would be equitable to refund to each bank the sum which it had contributed above a certain ratio to its liability for its currency. Such notes should be printed by the Government under the supervision of the Comptroller of the Currency. With an efficient force this plan would not prove cumbersome. It is no objection to the plan to say that it will strengthen the credit of one State and impair that of another. The Legislature of the State of New York has made a like discrimination concerning the securities in which its Savings institutions are authorized to invest and such a distinction. is practically made everywhere in connection with all classes of securities. Certainly, when the State Legislatures countenance theft, for successful repudiation has in many cases been nothing less, the natural and necessary result must be endured; while those who have displayed a decent regard for the rights of others should meet with encouragement. Some plan similar to the one suggested would go far toward binding together the people of the whole nation in a community of interest, and would place a premium on honest administration of State and local governments, which experience has shown to have been needed. Circulating notes should be issued by banks in response to the demands of the trade, provided such notes are absolutely secure. The needs of business must necessarily control. No bank can afford to pay a tax upon such notes when the demand for the same ceases. No one will deny that before the civil war notes issued by some State banks were in a number of cases disreputable, but there existed as honestly managed banks then as at the present time. Their circulating notes were literally as good as gold, because they were paid in gold. It may be added, that without a stable currency we cannot hope for commercial supremacy, while with it we may rest assured as to our future prestige. Such a currency is the chief bulwark of national power. REVISED STATUTES OF THE UNITED STATES. TITLE LXII. NATIONAL BANKS. CHAPTER I. ORGANIZATION AND POWERS. SECTION 5133. Formation of national banking associations. 5135. How certificate shall be acknowledged and filed. 5138. Requisite amount of capital. 5139. Shares of stock and transfers. 5140. How payment of capital stock must be made and proved. 5142. Increase of capital stock. 5143. Reduction of capital stock. 5144. Right of shareholders to vote. 5145. Election of directors. 5146. Requisite qualifications of directors. 5147. Oath required from directors. 5148. Filling vacancies. 5149. Proceedings where no election was held on the proper day. 5151. Individual liability of shareholders. 5152. Executors, trustees, etc., not personally liable. 5153. Duties and liabilities when designated as depositaries of public moneys. 5154. Organization of State banks as national banking associations. 5156. Reservation of rights of associations organized under act of 1863. SECTION 5133. [U. S. Comp. Stat. 1901, p. 3454.] Associations for carrying on the business of banking under this title may be formed by any number of natural persons, not less in any case than five. They shall enter into articles of association, which shall spe[612] cify in general terms the object for which the association is formed, and may contain any other provisions, not inconsistent with law, which the association may seem fit to adopt for the regulation of its business and the conduct of its affairs. These articles shall be signed by the persons uniting to form the association, and a copy of them shall be forwarded to the Comptroller of the Currency, to be filed and preserved in his office. See Act of February 14, 1880, post; Act of July 12, 1882, post. 1. The articles of association of a national banking corporation, when approved by the Comptroller, are in the nature of a charter. Thus, where one of the articles of association of a bank organized under the National Banking Act, and approved by the Comptroller of the Currency, provided that its president should hold office for a term fixed, "unless he should become disqualified or sooner removed by a two-thirds vote of the board" of directors. Held, that the right of removal was complete, independent of any by-law on the subject. Taylor v. Hutton, 18 Abb. Pr. 16; S. C. 43 Barb. 195. 2. National banks were established for the purpose in part of providing a currency for the whole country, and in part to create a market for the loans of the general government. Tiffany v. National Bank of Missouri, 18 Wall. 413, 21 L. ed. 862. 3. Being brought into existence for this purpose by Congress, which is the sole judge of the necessity for their creation, the State can exercise no control over them, nor in any wise affect their operation, except in so far as Congress may see fit to permit. Farmers', etc., National Bank v. Dearing, 91 U. S. (1 Otto) 29, 23 L. ed. 196. It 4. The constitutionality of the "National Banking Act" is unquestioned. rests on the same principle as the act creating the second bank of the United States. Id. 5. Congress has power to create national banks, and to make any provisions which tend to promote their efficiency, and to protect them, not only against State legislation, but also against suits or proceedings in State courts by which that efficiency would be impaired. Chesapeake Bank v. First National Bank, 40 Md. 269, 17 Am. Rep. 601. 6. Congress having legally undertaken to provide a currency for the whole country may secure the benefit of it to the people by appropriate legislation. Veazie Bank v. Fenno, 8 Wall. 533, 19 L. ed. 482. 7. All are bound by constructive notice of the statutes regulating national banks. Scott v. Deweese, 181 U. S. 218, 45 L. ed. 830, 21 Sup. Ct. Rep. 591. 8. A State legislature may change the day on which a bank shall report its property for assessment and to provide that the lien of the assessment may follow into the hands of a vendee. Bank of Kentucky v. Kentucky, 207 U. S. 258. 9. A State cannot enact legislation contravening federal law as to national banks; but they are deemed citizens of the State of location and federal courts have jurisdiction only as they have in suits between individual citizens of the same State. State courts may compel the inspection of books to stockholders. Guthrie . Harkness, 199 U. S. 148. § 5134. [U. S. Comp. Stat. 1901, p. 3454.] The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifically state: First. The name assumed by such association, which name shall be subject to the approval of the Comptroller of the Currency. Second. The place where its operations of discount and deposit are to be carried on, designating the State, Territory or District, and the particular county and city, town or village. Third. The amount of capital stock and the number of shares into which the same is to be divided. Fourth. The names and places of residence of the shareholders and the number of shares held by each of them. Fifth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this title. See Act of May 1, 1886, post. 1. "The general business of an officer of a national bank is to be transacted at its regular place of business. At the same time we know that in the course of business between banks, occasionally the officers do give instructions away from the place of business of the bank." If the bank doing such business sends a statement of the same to the other bank, and it, through its proper officer, recognizes the validity of the same, it is bound by such recognition. DRUM. MOND, J., in Burton v. Burley, 12 Chic. Leg. News, 178. 2. A national bank is a citizen of the State where, by law, it is located within the meaning of the constitution. The designation of its place of business in the certificate of organization determines its locality, and it can have no other. In this case, the authorities upon the subject of the citizenship of corporations are collected and discussed. Cooker. State National Bank, 52 N. Y. 96, 11 Am. Rep. 667. 3. A national bank organized and doing business in another State is prohibited by the Revised Statutes of the State of New York from keeping an office of discount or deposit in the State of New York, and cannot maintain an action upon any note discounted by it at such office, National Bank of Fairhaven c. The Phoenix W. Company, 6 Hun, 71, 73. § 5135. [U. S. Comp. Stat. 1901, p. 3455.] The organization certificate shall be acknowledged before a judge of some court of record or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his office. § 5136. [U. S. Comp. Stat. 1901, p. 3455.] Upon duly making and filing articles of association and an organization certificate, the |