FINANCES OF THE UNITED STATES. 



411 



The following table shows the circulation of 

 the State banks in the Northern States up to 

 July, 1863 : 



The course of banking in the year was some- 



what affected by the passage of a law author- 

 izing the formation of National Banks. This 

 law will be found in full at page 296 of this 

 volume. 



BANK CIRCULATION OF THE SEVERAL STATES. 



TMENT, ) 



THE CURRENCY, V 

 <uly, 1th, 1863. ) 



Under this law, small banks began to form 

 in many of the States. The Secretary of the 

 Treasury stated, in his annual report, 134 new 

 banks in all the States, with a capital of 

 $16,081,200, or an average of $120,000 each. 

 The amount of capital paid in by 134 banks 

 was $6,784,710, and the amount of stock lodged 

 for notes ordered was about $3,675,275. 



The following instructions were issued by 

 the Comptroller of the Treasury for the guid- 

 ance of those desiring to form National Bank- 

 ing Associations : 



TREASURY DEPARTMENT, 

 OFFICE OF COMPTROLLER OF TI 

 WASHINGTON, Jitl^,, 



For the instruction and guidance of those who may 

 desire to form Banking Associations under the act en- 

 titled " An act to provide a National Currency, se- 

 cured by a pledge of United States Stocks, and to pro- 

 vide for the circulation and redemption thereof," ap- 

 proved February 25th, 1863, the following information 

 is given : 



1st. The corporate names of the associations will be 

 National Banks, and they will be designated as the 

 First, Second, Third, &c., &c., National Bank of the 

 place in which they may be located. Even where 

 there is but one in a particular town, and no prospect 

 of another, it will still be designated as the First Na- 

 tional Bank. 



2d. On the preliminary or organization certificate 

 a five cent stamp is required. The original Articles of 

 Association must be stamped with a five cent stamp 

 for each sheet of paper used, and the copies of the ar- 

 ticles to be sent to this office must show that the origi- 

 nals have been legally stamped, and must be certified 

 to as being true copies by some officer of the associa- 

 tion. The certificate and oath required by the 10th 

 section of the act must be stamped, each requiring a 

 five cent stamp, one stamp to be attached to the certi- 

 ficate and the other to the oath. 



3d. It is important that organization or preliminary 

 certificates of association should be carefully prepared 

 and executed ; that the names of the stockholders 

 should be written in full, and that there should be no 

 erasures or interlineations therein. It will be borne in 

 mind that these certificates are not subscription pa- 

 pers, and while the parties to them must sign them 

 with their own hands, and acknowledge them in per- 

 son, it is not necessary, nor exactly proper, for them 



to enter their own names in their own hands, in the 

 4th article. 



The right of a partner to seal and acknowledge for a 

 co-partner is at least questionable. It is therefore im- 

 portant, if partners unite in the preliminary certificate 

 for the organization of a National Bank, that they 

 should sign, seal and acknowledge the same individu- 

 ally, and not as co-partners. It is also desirable that 

 the same rule should be observed in the Articles of 

 Association. 



4th. Before a certificate is given by the Comptroller, 

 authorizing an association, organized under the act, to 

 commence the business of banking, according to the 

 provisions of the 10th section of the act, the following 

 requirements of the act must have been complied with : 

 1st. A copy of the Articles of Association must have 

 been forwarded to the Comptroller, and also the state- 

 ment of oath contemplated by the 9th section, and the 

 oaths of Directors required by the 39th section. 2d. 

 United States interest-bearing bonds to an amount 

 equal to not less than one-third of the capital stock 

 paid in, must have been transferred and delivered to 

 the Treasurer of the United States. 



5th. The United States bonds held by the National 

 Banks, and that part of their capital invested in these 

 bonds, are, it is understood, exempt from National and 

 State taxation. For the amount of national tax to 

 which they will be subject on their circulation, and on 

 their profits, and for license, reference is made to the 

 laws of Congress relating to the internal revenue. 



The 19th section of the act, as far as the amount of 

 taxation is regarded, is superseded by the 7th section 

 of an act to provide ways and means for the support of 

 the Government, approved March 3d, 1863. 



6th. Circulating notes of the highest style of engrav- 

 ing, and printed on the best quality of paper, will be 

 furnished to the National Banks at the expense of the 

 Government, under the provisions of the act, at the 

 earliest day practicable, and in the order in which the 

 banks are organized. The notes will first be supplied 

 to the first associations organized under the act ; and 

 inasmuch as serious doubts seem to be entertained in 

 regard to the power of Congress to enlarge or increase 

 the privileges of corporations created by the State au- 

 thority, it may be deemed best to have these doubts 

 removed by the opinion of the Attorney-Generator the 

 decision of a competent court, before the national cur- 

 rency is furnished to existing State banks, under the 

 62d section of the act. 



7th. The act provides that the preliminary certifi- 

 cate, with a copy of the Articles of Association which 

 shall have been adopted, shall be forwarded to the 



