HFN 
 
 
 XI^O 
 
 ^^^^ 
 
 /8(o:^ 
 
 Cornell University Law Library 
 
 The Moak Collection 
 
 PURCHASED FOR 
 
 The School of Law of Cornell University 
 
 And Presented February 14, 1893 
 
 IN HEnORY OF 
 JUDGE DOUQLASS BOARDMAN 
 
 FIRST DEAN OF THE SCKOOL 
 
 By his Wife and Daughter 
 A. M. BOARDMAN and ELLEN D. WILLIAMS 
 
Cornell University Library 
 KFN5250.C62 1864 
 
 Thetaiiki,ng..s)istem,ofJhe^,,state|0^^^^ 
 
 3 1924 022 794 972 
 
Cornell University 
 Library 
 
 The original of tiiis book is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924022794972 
 
THE BANKING SYSTEM 
 
 STATE OP iraiW YORK 
 
 INCLUDIMS ALSO THE 
 
 ACT OF CONGRESS ESTABLISHING, JUNE 3d, 1864, 
 
 NATIONAL BANKING SYSTEM. 
 
THE 
 
 BMKING SYSTEM 
 
 STATE OF NEW YORK, 
 
 WITH NOTES AND RBFERBNCBS TO 
 
 j^DJUDQED OiLSES: 
 
 IimjrilINiVLS)) T«^ 
 
 ACT OP CONGRESS OFJl^^si 186*, ESTABLISHING OR 
 
 ppovra^ For A\'X,«^ 
 
 NATIONAL BANKING SYSTEM. 
 
 JOHN^E AVELAND, 
 
 COUNSELIOR AT LAW. 
 
 SECOND EUIXION; 
 
 BT 
 
 G. S. HUTCHINSON, 
 
 COUNSELLOE AT LAW. 
 
 NEW YORK: 
 ,JOHN S. VOORHIES, LAW BOOKSELLER AND PUBLISHER, 
 
 20 NASSAU STREET. 
 1864. 
 
Entered, according to Act of Congregs, in the year 1864, by 
 
 JOHN S. TOOBHIEIS, 
 
 In the Clerk's Office of the Distiict Court of the United States for the Southern District 
 
 of New Yorku 
 
 BAKBR « GODWIN, FuNTUB, 
 Nbw Yobk. 
 
CONTENTS. 
 
 , An Introduction, containing a brief historical sketch of the 
 two Banking Systems of the State of New York, prior to 
 that introduced by the General Banking Law of 1838. 
 The first system was in force from 1791 to 1829, the second 
 from 1829 to 1838 : pp. vii. to Ixiv. 
 
 IL A table of the Statutes embraced in this Volume, arranged 
 in the order of the years in which they were enacted : pp. 
 Ixv. to Ixxv. 
 
 Ill* A table of the Lending, Cases decided by the Courts of the 
 State of New York, from 1838 to October, 1864, relating 
 to the General Bank Act of 1838, and the powers, <S5c., of 
 corporations formed under it : pp. Ixxvi, to Ixxx. 
 
 IV, General Statutes enacted before 1838, viz, : the S^atj^te of 
 1827 {Revised Statutes), entitled " Of Mqiiieyed, Corpora- 
 tions" (pp, 1-28) ; containing regulations to prevent their 
 insolvency, an^ to secure the rights of their creditors and 
 stockholders (pp. 1-17) ; and concerning the election of 
 their Directors (pp, 17-23) ; also, definitions, of certain 
 terms used in the Ee vised Statutes (pp. 23, 24),; also, the 
 Statute jof 1827 {Bevised. Statutes), entitled "Olth.e,ge;neral 
 powers, privileges, &c., of corporations" (pp. 24-28) ; also, 
 the Statute of 1829, callpd the "S,afety Fund, Act" (pp. 
 
ii CONTENTS. 
 
 29-39) ; the Statute of 1830 {Revised Statutes), called the 
 " Eestraining Act" (pp. 39-50) ; the Statutes of 1830 {Re- 
 vised Statutes), entitled " Of proceedings against corporations 
 in equity" (pp. 50-64) ; and " Of the voluntary dissolution 
 of corporations" (pp, 6fr7^ ; also, the Act of 1830, con- 
 cerning bankpetes ^jp. 75,^0')^^he Act of 1835, imposing 
 certain restrictions W all wdweylfc? corporations (pp. 77-79); 
 and the Act containing special provisions relating to certain 
 corporations (pp. 80-80/). 
 
 V. The General Banking Law of 1838, as originally passed, 
 with notes and references to subsequent amendments, and 
 to the decisions of the Courts (pp. 81-106). 
 
 VI. The General Banking Law as altered by subsequent legis- 
 lation (pp. 211-223). 
 
 VII. All the Special Statutes passed since 1838, amendatory of 
 the General Banking Law (pp. 107-208^^) ; also, the statutes 
 relating to Foreign Bank Notes (pp. 107, 193, 206) ; to suits 
 by or against banking associations (p. 125) ; to Receivers of 
 banking associations (pp. 127, 134, 135, 144, 145, 208p) ; 
 also, the statute to enforce the responsibility of Stockholders 
 in certain banking corporations, &c. (pp. 155, 205, 208v, 
 208ee); to provide for the final closing of incorporated 
 banks, &!c. (p. 208e) ; in relation to the taxation of banks, 
 &c. (pp. 208A, 208cc) ; to provide for the reduction of the 
 capital stock of banks (p. 208<) ; to authorize banks to take 
 and hold United States Stock (p. 208a;) ; to provide for the 
 consolidation of banks (p. 208a:) ; relating to unclaimed 
 dividends and deposits (p. 173) ; to the distribution of funds 
 held by the Comptroller (p. 175); to the establishment of 
 the Bank Department (pp. 178, 208a, 208c, 208p) ; and to 
 
CONTENTS. iii 
 
 the punishment of fraudulent and unauthorized issues and 
 transfers of stock or bonds of corporations (p. 207). 
 
 VIII. The Appendix contains the Restraining Acts of 1782, 
 1804, 1813, and 1818 (pp. 233-239); also, the statutes 
 relating to the proceedings against corporations in Courts 
 of Law (pp. 240-245) ; to assessment of taxes upon corpo- 
 rations (pp. 224-229) ; to the collection of debts against 
 corporations (pp. 232, 233) ; to abatement of suits by or 
 against corporations (p. 230); to proceedings against 
 foreign corporations (pp. 240-253); to promissory notes 
 and bills of exchange (pp. 253-260) ; to interest of money 
 (pp. 260, 261); to usury (pp. 262-265); and to dividends 
 on stocks held by the State, or by literary or charitable 
 institutions (p. 231) ; also, the provisions of the Constitution 
 of 1846 relating to corporations (pp. 264, 265). 
 
 The Appendix contains also, the names of all the Banks 
 chartered by the State of New York, from 1791 to 1829 
 (pp. 284, 285) ; and from 1829 to 1838, under the Safety- 
 Fund System (pp. 286-289) ; and from 1838 to 1855, under 
 the General Banking Law (pp. 289-295) ; also, the names 
 of the Special Charter Banks whose charters had not 
 expired in January, 1855 (pp. 295, 296). 
 
 The Appendix contains also, an account of the Clkaking 
 House established in the City of New York, in 1853 
 (pp. 266-283) ; also, a DieEST of the Leadinq Decisions 
 of the Courts of the State of New York, relating to the 
 General Banking Law, and to the powers of banking 
 corporations organized under it (pp. 297-359). 
 
OTRODFCTION. 
 
 Tb:e origin of Banking dates far back. At first 
 it was entirely a kard-money operation. Tke va- 
 riety of coins used by different nations, gave rise to 
 tke class of money-ckangqrs, — ^tke bankers or bro- 
 kers of tkat day, — tkrougk wkom tke unavailable 
 coin of otker countries could be ckanged into tkat 
 wkick was current in tke land. In Greece, wkere 
 violence often prevailed and property was insecure, 
 treasure could be safely placed only in some spot 
 keld sacred by all. Hence Delpki became a place 
 of deposit, and its celebrated temple was tke seat 
 of a bank as well as of an oracle. In Rome, also, 
 tkere were bankers (argentarii), witk wkom tke 
 revenues, not only of individuals but of tke State, 
 were deposited. 
 
 To tke Jew bankers of commercial Lombardy we 
 are indebted for tke term. Tke progenitors of our 
 spacious and splendid banking-kouses were very 
 simple .tkings : a benck (Italian, banco) was set up 
 in tke market place, for tke exckange of money. 
 
vi INTRODUCTION. 
 
 The first public bank dates from A. D. 1153, and 
 Venice claims the honor, (a) There is something of 
 romance and glory in its origin, for it was founded 
 to aid that heroic republic in the wars of the cru- 
 sades. This was a bank of deposit only. 
 
 With advancing commerce, Florence subsequently 
 became the centre of the monetary transactions of 
 Em-ope, and the business of banking was necessa- 
 rily enlarged. Two hundred and fifty years after 
 the establishment of the Bank of Venice, the 
 Banks of Barcelona and of Grenoa were founded. 
 Two centuries more went by, before the growing 
 commerce of Northern Europe obtained the Banks 
 of Amsterdam, and Hamburgh, and Rotterdam, 
 and Stockholm. The Bank of England dates from 
 1694. Like its Venetian predecessor, it sprang 
 from the exigencies of war. Yet its origin was 
 humble. When one thinks of that vast govern- 
 ment engine as it now exists, its huge banking- 
 house, its army of ofiScers and clerks, its tons of 
 gold and silver, and its operations that reach and 
 affect every quarter of the globe, — ^he can hardly 
 read without a smile the title of its incorporating 
 act : " An Act for the granting to their Majesties 
 several rates and duties upon tonnage of ships and 
 vessels, and upon beer, ale, and other liquors, for 
 
 (a) Levi on Mercantile Law, pp. 199, 200 ; MoCullooh's Diet. (Amer. ed), 
 article " Banks (Foreign)." 
 
INTRODUCTION. vii 
 
 securing certain recompenses and advantages in the 
 said act mentioned to sucli persons as shall volun- 
 tarily advance tlie sum of £1,500,000 towards tlie 
 carrying on the war against France." (b) 
 
 The Bank of Scotland is one year younger than 
 her sister of England. 
 
 The Bank of North America, under the old Con- 
 federation, was established in 1781; the Bank of 
 Ireland in 1783 ; the first Bank of the United 
 States, in 1791 ; and the Bank of France in 1803.(c) 
 
 "With this hasty and partial glance at the chro- 
 nology of banking, we pass to the special history 
 of New York legislation on the subject. 
 
 The details of its changes and progress are in- 
 structive. The system which now works so easily and 
 safely, was reached only through a long and some- 
 times painfal experience. We should know some- 
 thing of the corruption and the gross abuses which 
 prevailed under imperfect and ill-regulated plans of 
 operation, — enkindling at times great popular excite- 
 ment and indignation, — sometimes checking and 
 Sometimes modifying the action of legislatures, — ^in 
 order properly to understand and to appreciate the 
 law which we have. 
 
 It will be seen that from 1791 to 1838 two dis- 
 tinct and widely different systems were tried and 
 
 (6) S Stat, at Large, 6 W. & M. (1694), c. 20, p. 568. 
 (c)Lcvi on Mercantile Law, pp. 199, 200; McCulloch's Diet., article 
 "Banks, Foreign;" Reea' Cyclo., article "Bank." 
 
viii INTRODUCTION. 
 
 abandoned, before the adoption of the one now in 
 use. We shall show what were the leading princi- 
 ples in each of these repudiated methods ; pointing 
 out some of their inherept.,^ects, and some of 
 the evils which their practttjal wor^g unfolded. 
 Nonflmer- The Bank of North ^imerica, alrea^y^entioned, 
 was established at the close of 1 781, with q; recom- 
 mendation, by the Continental Congress, that the 
 several States should grant charters to the institu- 
 tion. This was done by Pennsylvania on the first 
 of AprU, 1V82, and by New York ten days after- 
 ward, (d) 
 
 The grant of power to the Bank of North Amer- 
 ica by the ordinance of Congress, and by the act of 
 the legislature of Pennsylvania, to hold and convey 
 real and personal estate, was in nearly the same 
 words as the grant to the Bank of England in the 
 charter of 1694. (i) But both the ordinance of 
 Congress and the Pennsylvania act of 1*782 omitted 
 the prohibitions and restrictions carefully inserted 
 in the English charter of the Bank of England 
 of 1694, and found also in the charters of the Bank 
 
 {d) See charter, pp. 233, 234, post. 
 
 (e) The act 5 W. & M. chap. 20, July 21, 1694, incorporating the Bank of 
 England, eontains 49 sections ; but sections 19 to S3, both inclusive, relate 
 to the bank, (3 Stat, at Large, 558.) Grant of Power. — " The Governor 
 and Company of the Bank ot England," to have perpetual succession and 
 a common seal, " and that they and their successors, by the name aforesaid, 
 shall be able and capable in law to have, purchase, receive, possess, and 
 *njoy, and retain to them and their successors, lands, rents, tenements, and 
 hereditaments, of what kind, nature, or quality whatsoever ; and also to 
 sell, grant, demise, alien, and dispose of the same, and by the same name 
 to sue and implead," etc. (Section 20). 
 
INTRODUCTION. ix 
 
 of Scotland, the Bank of France, and the Bank of 
 Ireland. (/) 
 
 In 1V85, numerous petitions were sent to the 
 
 {/) By section 27 of the charter of the Bank of England, it was 
 enacted as follows : — 
 
 Prohibition against Teading. — "And to the intent that their Majes- 
 ties' subjects may not he oppressed by the said corporation, by their mono- 
 polizing or engrossing any sort of goods, wares, or merchandises — Be it 
 further declared and enacted by the authority aforesaid, that the said corpo- 
 ration to be made and created by this act, shall not at any time during the 
 continuance thereof deal or trade, or permit or suffer any person or persons 
 ■whatsoever, either in trust or for the benefit of the same, to deal or trade 
 with any of the stock, moneys, or effects of or any ways belouging to 
 the said corporation, in the buying or selling of any goods, wares, or merchan- 
 dise whatsoever," except bullion. The penalty for a violation of the forego- 
 ing prohibition, was declared to be a forfeiture of treble the amount of the 
 goods or merchandise so purchased or traded for, to be recovered by 
 action of debt, wherein no privilege, injunction, restraint, protection, or 
 wager of law should be allowed. 
 
 Loans to the King PaoHiBrrED. — By section 30 the Bank was prohibited 
 from loaning or advancing any sum of money to their Majesties, their 
 heirs or successors, without the authority of Parliament ; and from pur- 
 chasing lands or revenues belonging to the Crown ; and the penalty for a 
 violation of this prohibition was, a forfeiture of treble the Amount loaned, 
 one-fifth to go to the informer. 
 
 Trading in Bullion Allowed. — By the 28th section it was provided, 
 that the Bank might buy and sell gold and silver bullion, and bills of 
 exchange ; and might sell goods really and bona fide left or deposited for 
 money lent thereon, if not redeemed at the time agreed on, <feo. (Statutes at / 
 Large, quarto ed., vol. iiL, p. 558 ; 1 McCulIoeh's Diet., Amer. ed., 1840, p. 16. ) 
 
 The Bank of Scotland. — This institution was established in 1696, by 
 an act of the Scotch Parliament. This act declares " that it shall not be 
 lawful " for the managers, <fcc., of this bank, " on any pretense whatever, to 
 follam any other trade with the joint stock to be employed in said Bank, 
 or any part thereof, or profits arising therefrom," than that of banking ; 
 and the same act provides that if the directors should be found guilty of 
 lending, on account of said Bank, any money to the KiSg, they shall be 
 liable, for every such fault, to triple the value of the money so lent. (1 
 McCuUoch's Diet., Amer. ed., 1840, p. IIY ; Layson's History of Banking, 
 Amer. ed., p. 228; Levi's Mercantile Law, p. 157.) 
 
 The Bank of Ieeland. — This institution was established in 1788, by an 
 act of Parliament. This act prohibited loans to the King, and provides, 
 "that to the intent that the subjects of the King may not he oppressed by 
 the said corporation, by their monopoly of any goods, wares, or mer- 
 chandise, it shall only be lawful for the corporation to deal in bills of 
 
X IKTBODirCTIOlf. 
 
 legislature of Pennsylvania, praying that body to 
 take away tlie charter whicli had been granted to 
 the Baipik of North America. 
 
 These petitions represented that the bank had 
 produced mischievous consequences to the fair tra- 
 der, and had destroyed that equality which ought 
 to exist in a commercial community. They were 
 referred to a committee, who reported that the 
 prayer of the petitioners ought to be granted, and 
 accompanied their report with an act to repeal the 
 act of April 1, 1782, chartering the bank. The 
 immediate adjournment of the legislature prevented 
 action on the report. During the vacation, ia the 
 summer of 1Y85, the agitation and excitement 
 on the subject of the repeal increased ; and in 
 September, 1785, the legislature again met, when 
 eminent counsel were heard at the bar of the 
 House for and against the bank. The excitement 
 ia the State was so intense and widely extended, 
 that the legislature could not resist its influence; 
 and in September, 1785, the Pennsylvania char- 
 ter of this bank was repealed by a large major- 
 ity, (^g) The Bank of North America, after the 
 
 exchange, w in buying or selling bullion, gold, or silver, or in selling any 
 goods, (Sic., really and bona fide left or deposited with the said corporation, 
 for money lent or advanced thereon, and not redeemed at the time agreed 
 on." (LawBon's Hist, of Banking, pp. 20Y, 208 ; 1 MoCuUooh's Diet, pp. 
 121, 122.) 
 
 The Bank of France is " forbidden to traffiok in any thing except money." 
 (Rees' Cyolo., article "Bank.") 
 
 {g) In Reea' Cydo., article " Bank,'' will be found a history of the Bank 
 of North America, chartered by the State of Pennsylvania, and of the 
 repeal of the charter of 1782. 
 
rNTEODTJCTIOK xi 
 
 repeal of the Pennsylvania charter, still carried on 
 its business, claiming the right to do so under the 
 ordinance of the Continental Congress. It, how- 
 ever, in March, ITSY, obtained a new charter from 
 the State of Pennsylvania; and its existence has 
 been continued by successive acts of incorporation, 
 without interruption to the present day. 
 
 But the legislature of Pennsylvania, in the second 
 charter, entitled, " An Act to Eevive the Incorpora- 
 tion of the Bank of North America," was careful to 
 insert the restrictions and prohibitions contained in 
 the charter of the Bank of England, and nearly in 
 the same words (Ii). Established at Philadelphia, 
 the Bank of North America became, in some par- 
 
 (A) This ue'w charter granted by Pennsylvania, after reciting the fact of 
 the passage of the Act of April 1, 1782, and of its repeal in September, 
 1785, also recites as follows: — " Whereas, a bank under proper regulations 
 may be rendered useful to the commerce and agriculture of the State ; and 
 it is proper that the subscribers and stockholders of the Bank of North 
 America should have a charter of incorporation, under such Umitationa an4 
 restrictions as not to become an object of jealousy and apprehension to the 
 good people of this State." Then follow the limitations and restrictions : 
 (1.) It limits the corporate life to 14 years. (2.) Grants power to hold 
 property to the amount of $2,000,000, and no more. (3.) Limits the quan- 
 tity of land to land actually occupied by the bank for the purposes of its 
 business, &o. (4.) Grants power to trade in bullion and bills of exchange, 
 and to sell goods lona fide and really pledged to it as security for loans. 
 (6.) Prohibits trading — "And to the intent that the citizens of this State 
 may not be oppressed by the said Corporation by their monopolizing or en- 
 grossing any sort of goods^ wares, or merchandise : Be it fv/rther enacted, by 
 the authority aforesaid, that the said Corporation shall not, at any time, 
 deal or trade, or permit or suffer, any person or persons whatsoever, either 
 in trust or for the benefit of the same, to deal or trade with any of the 
 stock, moneys, or effects of, or in any way belonging to said Corporation, 
 in the buying or selling of any goods, wares, or merchandise whatsoever, except 
 bullion, as above stated (Laws of Penn. ; ed. of Carey & Bioren, vol. iii. p. 
 188). 
 
1T9L 
 
 Xll INTRODUCTION. 
 
 ticulars, tlie model of tlie two subsequent nationa 
 banks under the present Constitution of the Unitec 
 States (j). 
 thfu.'s"' February 25, 1791, the first Bank of ihe TTmtec 
 States was incorporated by Congress, with a capital 
 of $10,000,000. Three-fourths of this capital were 
 to be payable in the pubUo debt of the United States 
 and the act of incorporation recites as follows 
 " Whereas it is conceived that the establishment o: 
 a bank for the United States upon a foundatioi 
 sufficiently extensive to answer the purposes intend 
 ed thereby, and at the same time upon principles 
 which offered adequate security for an upright anc 
 prudent administration thereof, will be very con 
 ducive to the successful conducting of the nationa 
 finances ; will tend to give facility to the obtaining 
 of loans for the use of the government in suddei 
 emergencies ; and will be productive of considerabh 
 advantages to trade and industry in general " (Ic). 
 
 Instead of being a merely commercial establish 
 ment, this bank was essentially of a financial anc 
 political character, and it was mainly on this grounc 
 that its constitutionality was defended (]c). Th( 
 
 {j) 3 Hildreth'a History, p. 406. 
 
 (k) Stat, at Large, p. 191. Enoyclo. Amerioana, Article " Bank." 
 In the Ne-w York act of April 11, 1Y82, incorporating the Bank of Nortl 
 America, the legislature of this State inserted this proviso : "Provided alwayt 
 and it is further enacted, That nothing in this act contained shall be cor 
 strued to imply any right or po-wer in the United States in Congres 
 assembled, to create bodies politic, or grant letters of incorporation, in an; 
 case whatever." (1 Greenleaf, p. 60.) 
 
INTRODUCTION. Xlll 
 
 Bmik of Mngland originated in a loan to tlie Britisli 
 Government of £1,500,000 towards tlie carrying on 
 the war wMcIl it was then waging with France. 
 And the first Bank of the United States had a 
 similar origin ; for its charter provided, that the 
 sums subscribed by individuals and corporations 
 should be payable " one fourth ia gold and silver, 
 and three fourths in the public debt " of the United 
 States. Notwithstanding the design and scope of 
 the first Banh of the United States, as indicated in 
 the preamble to the act of incorporation, and in the 
 fact that three fourth parts of its entire capital were 
 payable in the public debt, — yet, by its charter, it 
 was expressly prohibited from making any loan to 
 the Government of the United States exceeding 
 $100,000, or to any State exceeding $50,000, or to 
 any foreign Prince or State, unless previously au- 
 thorized by a law of the United States ; and it was 
 also prohibited from '■'■ pv/rchasing any public debt 
 whatsoever " — and from " directly or indirectly deal- 
 ing or trading in any thing except bills of exchange, 
 gold and silver bullion, and goods really and truly 
 pledged for money lent, and not redeemed in due 
 time, &c." (J). 
 
 (I) As the charter of 1791, of the Bamk of the tTmrED States, became 
 the model upon which the early bank charters, subsequently granted in 
 this State, were ibrmed, it may be instructive to specify what were the 
 leading features of the Bankino System introduced by the Federal Govern- 
 ment under the present Constitution. 
 
 Gkant of Power. — By section 3, the corporation to " have, purchase, 
 receive, posses^ employ, and rejtain to them and their successors, lands. 
 
XIV INTRODUCTION. 
 
 ifS?Yo?i March 21, 1T91, one montli after the Bank of the 
 
 ITM. 
 
 United States was charted by Congress, the legisla- 
 ture of this State passed an act entitled, " An Act 
 to incorporate the stockholders of the Bank of New 
 York." This was the first bank charter granted in 
 this State, after the act incorporating the Bamlc of 
 North America. The charter of the Baiik of New 
 York was substantially the model upon which aU 
 the bank charters granted in this State were framed, 
 prior to the year 1825, when the form of these acts 
 was changed, and new and more stringent prohibi- 
 tions amd rest/rictions were enacted by the legisla- 
 ture, as will be more fully shown, 
 i^^aing These acts of incorporation, after reciting, that 
 
 IbatareB of , • t >^ 
 
 te8*^riOTto Whereas certam persons associated as a Company^ 
 
 \m^ . 
 
 rents, tenements, hereditaments, goods, chattels and effects of what kind, 
 nature, or quality soever, to an amount not exceeding in the whole 
 $16,000,000, including the amount of the capital stock aforesaid," Ac 
 
 Limitation as to Real Estate. — (1.) To a banting house, <fec. (2.) To 
 lauds mortgaged by way of security for debts, &c. (3.) To lands purchased 
 upon judgments for such debts. 
 
 Pbohibihon against Teadino. — Reg. 10. "The said corporation may sell 
 any part of the public debt whereof its stock shall be composed, but shaU 
 not be at liberty to purchase any public debt whatever ; nor shall directly 
 or indirectly deal or trade in any thing except bills of exchange, gold Ot 
 silver bullion, or in the sale of goods really and truly pledged for money 
 lent and not redeemed in due time, or in goods which shall be the produce 
 of its lands." * 
 
 Loans to Goveenment. — Regulation 8 forbids a loan to the government 
 of the United States, Ac, <!iic, exceeding $100,000, imless previously au- 
 thorized "by a law of the United States." 
 
 Penalties fob Violation of Regulations. — For dealing and trading in 
 goods, &c. — a forfeiture of treble the value of goods, <Stc. For loaning 
 money to the Government exceeding $100,000 — a forfeiture of treble of the 
 amount of the unlawful loan. (1 Stat, at Large, pp. 191, 196.) The second 
 Banh of the United States, chartered by Congress April 10, 1816, contained 
 the same prohibitions and restrictions, only made more stringent. 
 
INTEODUCTIOIT. XT 
 
 under the style of the President, Directors, and Com- 
 pany of the Bank of Isfew York [or Bank of Al- 
 bany], by their petition presented to the legislature, 
 have prayed for the privilege of being incorporated, 
 the better to enable them to carry on the business 
 of their institution,"- — ^proceed to enact that the 
 petitioners, &c., be a body corporate and politic by 
 a certain name / that by such name, they and their 
 successors should have succession for a fixed period 
 of years, capable of suing, being sued, &c.; that 
 by such name, they and their successors should be 
 legally capable of purchasing and conveying any 
 estate, real or personal, for the use of the corpora- 
 tion ; that the real estate be limited to the quantity 
 needed for the immediate accommodation of the 
 bank, together with such as should be mortgaged to 
 it by way of security, or conveyed to it in satisfac- 
 tion of debts previously contracted; that all bills 
 or notes issued by order of the corporation, and 
 promising payment of money to any person, or to 
 bearer, should be as blading upon said corporation, 
 and as really assignable and negotiable, as if they 
 had been issued by a private person; that the 
 total amount of debts, over and above the moneys 
 actually deposited in the vaults of the bank, should 
 not exceed three tvmes the capital actually paid in. 
 The capital stock was fixed at a definite sum ; the 
 location of the bank was designated, and all the 
 operations of discount and deposit were to be carried 
 
XTl INTEODUOTIOK 
 
 on in tliat place, <md not elsewhere. The number 
 of directors was fixed, and the mode of election pre- 
 scribed. These charters contained the following 
 prohibition against trading. "The said corporation 
 shall not directly or indirectly deal or trade in buy- 
 ing or selling any goods, wares, or merchandise, or 
 commodities whatsoever, — or in buying or selling 
 any stock created under any act of the Congress of 
 the United States, or of any particular State unless 
 in selling the same when truly pledged to it by 
 way of security for debts due to the said cor- 
 poration." (m) 
 BaniiBg None of the bank charters, prior to 1825, con- 
 
 powers not , /» t i ■ rm 
 
 ^^«^**^_ tamed any 8pec%fiGaUon of banking powers. The 
 legislature, from 1Y91 to 1825, seemed to rely 
 solely upon prohibitory and restrictive clauses 
 inserted in each charter,' — ^upon a declaration, that 
 deaUng or i/rading in State stocks, goods, wares, and 
 merchandise, was not banking — and that thejjoweT" 
 thus to trade or deal, was not necessary to carry on 
 that business, (o) Only seven banks had been incor- 
 
 (m) That this prohibition, in suhstanoe and effect, and generally in tha 
 same words, was inserted in all bank charters prior to 1826, see the 
 following : 
 
 2 Webster's Ed. Laws, p. 364, § 10, lYOl, Charter Banlc of New York. 
 2 " " -p. 362, § 14, 1792, " Bank of Albany. 
 
 8ess. Laws 1807, p. 46, § 10, Charter Mohawk Bank. 
 " " 1811, p. 144, § 1, " Mechanics' and Farmers Bank. 
 " 1813, p. 67, § 1, " Ontario Bank. 
 
 (o) See Talmage v. Pell (3 Selden 828, S46). 
 
INTRODUCTION. XVll 
 
 porated by tMs State prior to 1804. {p) Until 
 that year, tlie riglit of "banking was a common-law 
 right, belonging to individuals, and to be exercised 
 at their pleasure. The legislature had authority to 
 regulate or restrain this right. This was done by ' 
 the Resi/rainmg Acts hereinafter mentioned. After 
 the first restraining law, banking became a franchise 
 derived from a grant of the legislature, and sub- ' 
 sisting in those only who could produce tJie 
 grant, (^q) 
 
 April 11, 1804, an act " to Resi/rain TTnmcor- _ . . 
 porated Ba/riking Associations^'' was passed. (7")&f'''°' 
 The object of this statute was, to guaranty "to 
 banks a monopoly of the rights and privileges 
 granted to them, which had been encroached 
 upon or infringed by private associations." {s) 
 This act was re-enacted in the Eevised Laws of 
 1813. if) "Previous to the restraining acts," says 
 Chief Justice Sa/oage^ " there was no power 
 
 (p) Bank of North America . . .in 1'782. 
 
 Bank of New York . . . .in 1V91. 
 
 Bank of Albany .... in 1792. 
 
 Bank of Columbia . . . .in 1793. 
 
 Manhattan Company . . .in 1799. 
 
 Farmers' Bank . . . .in 1801. 
 
 New York State Bank ... in 1803. 
 
 (2 R. L. 1813, p. 669.) 
 {q) 16 Johns. R., 375, 879; 2 Johns. Ch. R., 371. 
 (r) Laws 1804, p. 615. See p. 234, post. 
 (s) N. YFiremeris Ins. Go. v. My (2 Cowen, 711 . 
 (<) 2 R. L, p. 234. See page 236, post. 
 
XVlU INTBODirCTIOK. 
 
 possessed by a baiik not allo-wed to individuals 
 and private associations. They could in common, 
 issue notes, discount notes, and receive deposits; 
 tlie only difference was, that the former were not 
 liable beyond their corporate property, while the 
 latter were accountable in their persons and to the 
 fuU extent of their private estate." (w) 
 «M2o»a. Upon a memorial of the Chamber of Commerce 
 
 ^**^ of the City of New York, the legislature, in April, 
 1804, passed an act eoGplanatory of the restraining 
 act of that year, and declared it should not be con- 
 strued to affect the corporation created by an act 
 entitled "An Act for supplying the City of New 
 York with pure and wholesome water." (v) 
 
 in^Artof' ^"^ 1813, the legislature passed an act "to pre- 
 vent the passing and receiving of bank notes less 
 than the nominal value of one dollar — and to re- 
 st/rain wnincorporated la/nkmg associations.^'' (w) In 
 1815, the restriction in this act, as to issuing bills 
 less than one dollar, was suspended until the end 
 of the next session of the legislature, (a?) 
 
 November 12, 1816, the legislature passed an act 
 entitled, "An Act concerning banks." (y) By this, 
 it was enacted that no banking company should 
 
 («) 2 Cowen, TIO. («) See page 236, port, 
 
 (w) See page 236, port. (a) Laws of 1815, p. 86. 
 
 (y) See page 287, post. 
 
 1818. 
 
INTRODUCTION. XIX 
 
 issue any Hlls or notes other than for the payment 
 of money ; and that the sums expressed in any bills 
 which any bank should issue, which were, according 
 to the terms thereof, receivable only in payment of 
 debts due, to the bank, should be recoverable by the 
 bearer of such bills, in like manner as if the same 
 contained an express promise for the payment of 
 money, (s) 
 
 April 21, 1818, the legislature passed '•'■An Act 
 relative to hanks^ amdfor other purposes^'' (a) 
 
 Savage, Oh. J., in FvremarHs Insurance Company EestmiH- 
 vs. El/y, (b) says, that the legislature found it^^^^ 
 necessary to pass this act, in order to ^^ place indi- 
 viduals upon the same footing with private associ- 
 ations, with the same view to monopoly by the 
 incorporated banking companies. The first of these 
 acts" [the act of 1804, re-enacted in 1813] "pro- 
 hibits the formation of any bank or fund for the 
 purpose of issuing notes, receiving deposits, making 
 discounts, or transacting any other business which 
 incorporated banks may or do transact by virtue of 
 their respective acts of incorporation. The second " 
 [the act of 1818] "prohibits any person, association 
 of persons, or body corporate, from keeping any 
 office of deposit, for the purpose of discounting 
 promissory notes, or carrying on any kind of bank- 
 
 (s) Laws of 1816, p. 12. See p. 237, post, 
 (a) Laws of 1818, p. 242. Seep. 237, post. 
 (6) 2 Cowen, 711. 
 
XX 
 
 INTRODUCTION. 
 
 ing business or operations wMcli incorporated banks 
 are authorized by law to carry on, or to issue any 
 bills or promissory notes as private bankers, unless 
 thereto specially authorized by law." 
 
 The legislature in April, 1824, passed an act 
 "to prevent the passing and receiving of bank notes 
 payable otherwise than in Icmful money of the 
 United States:''' (c) 
 
 The foregoing statement, and the bank charters 
 and restraining acts to which reference has been 
 made, show the manner in which the banking sys- 
 tem was introduced into this State, and by whom, 
 and upon what principles, the business of banking 
 was authorized by law to be conducted prior to the 
 year 1825. We have seen that the main features of 
 aU these bank charters were derived from the acts 
 incorporating the Bank of England in 1694, and the 
 Bank of the United States in 1791 ; and that as 
 neither of these charters, English or American, de- 
 fined or specified the bcmking powers (d) intended 
 thereby to be granted, it became necessary by re- 
 strictive and prohibitory clauses, to limit the powers 
 of the corporations so created. Thus, we find in all 
 these public enactments, from 1694 to 1825, unequi- 
 vocal declarations by the English Parliament, by 
 Congress, and by successive Legislatures of this State, 
 that trading in any thing, except bullion, foreign 
 
 (c) Laws 1824, p. 803. See p. 239, post. See §§ 10. 11, p. 48, post. 
 
 (d) See § 4, p. 26, post ; and § 1, p. 39, post ; and 2 Cowen K. 711. 
 
INTRODUCTIOlf. xxi 
 
 coins and bills of exchange, — ^is not hcmUng ; and 
 that tlie power to traffic in stocks or merchandise, 
 was not "either necessary or expedient to accom- 
 plish the purpose for which banks are instituted." {e) 
 The model charter of the Bank of New York was 
 granted, as we have already stated, in 1791. The 
 company thus incorporated had been an organized 
 and active business association for more than seven 
 years previous, but had been unable to get a char- 
 ter. The people had not yet forgotten the evils of 
 the Continental paper money, and the legislature 
 was jealous of every thing in that shape. The Bank 
 of Albany was chartered in 1T92, and that of Co- 
 lumbia, at Hudson, in 1793. Until the close of the 
 century, when the whole banking capital of New 
 York was but fourteen hundred thousand dollars 
 (ee)^ no party considerations seem to have influenced 
 the creation or the action of banks. The demands 
 of commerce and the public convenience were alone 
 considered. But party spirit soon became warm 
 and high. The Bank of New York was in Federal 
 hands. The Eepublicans very naturally wished for 
 a bank which they could control. As the legisla- 
 ture had a majority of their opponents, and as even 
 the Republican members were extremely jealous of 
 moneyed institutions, the probability of obtaining a 
 charter was very small. Management might accom- 
 plish what could not be done otherwise. The plan, 
 
 («) See Talmage v. Pell{Z Selden, 328, 346), Gardiner, J. 
 («e) See List of Banks chartered from Vl^l to 1829, pp. 284, 285, ^os<. 
 G 
 
Manhat- 
 
 obtained. 
 
 xxii INTRODUCnOlT. 
 
 devised by "a mind capacious of such tlings," 
 proved successful. The city had just been ravaged 
 B*"^^"*' ^y ^^^ yellow fever, and its need of water in purity 
 SSer*°wa8 and abundaucc had been more felt than ever. At 
 this opportune moment the petitioners asked the 
 government to incorporate them for the benevolent 
 purpose of supplying this great want. It was a 
 noble object, and met with favor. As they could 
 not foresee how much these works would cost, they 
 proposed the liberal sum of $2,000,000 capital. And 
 furthermore, as it was possible that these water- 
 works might not absorb the entire amount, they 
 asked for a provision authorizing the proposed cor- 
 poration to employ its surpl/us capital " in the pur- 
 chase of public or other stock, or in any other 
 moneyed trmisactions or operations not inconsistent 
 with the Constitution and laws of this State, or of 
 the United States." And stUl further, as the object 
 was to supply a want that would never end, it was 
 reasonable that the grant should be perpetual. 
 Such was the charter which Aaron Burr carried 
 through the unsuspecting legislature of 1799, and 
 which, under the modest name of the Manhattan 
 Company^ soon turned out to be a genuine Banking 
 Institution, endowed with great power and endless 
 life (/). 
 
 (/) It seems to be an admitted fact, that at the time the act was passed, 
 incorporating the Manhattan Company, a majority of the members of the 
 legislature, as well as the Council of Revision, did not suspect that it con- 
 tained banking powers. (Ham. Hist, i., 129, 130, ii25-828 ; 1 Burr, 413, 415 ; 
 People V. Manhattan Comp. (9 Wend. 864) ; Laws, Web. ed. p. 870, § 8.) 
 
INTRODUCTION. XXlu 
 
 The incorporation of the New York State Bank 
 at Albany in 1803, of tke Merchants' Bank in 
 New York, 1805, and of the Bank of America in 
 1812, was much mixed up with and influenced by 
 the partizan strifes of that stormy period. In each 
 of these cases there were numerous charges of Irih- 
 ery^ and some of them were but too well substan- 
 tiated. 
 
 Mr. Hcmwnond^ in his Political History of New 
 York, says — " The odium attached to aU those im- 
 plicated in the corrupt means used to promote the 
 incorporation of the Bank of America.^ was so great 
 and so lasting, that no attempts were made for a 
 long time afterwards ; and the iniquitous proceed- 
 ings of former legislatures in relation to granting 
 charters to moneyed institutions, had been so dis- 
 graceful to the State and were so fresh irt the recol- 
 lection of the members of the Convention of 1821, 
 as beyond aE question induced them, with a view 
 to the prevention of these practices, to insert the 
 clause in the Constitution of 1821 which rendered 
 necessary the assent of two-thirds of both houses 
 of the legislature, in order to incorporate any 
 moneyed institution." {g) 
 
 Mr. Hammond gives a history of the means 
 adopted to procure the charter of the Manhattan 
 
 {g) Hammond's History, vol. i. p. 337. 
 
xxiv INTRODUCTIOir. 
 
 Compcmy^ in ITGO— of the Merchmts' Bank, in 
 lg05 — .and of the Bcmk of America, in 1812. Qi) 
 
 At the close of the first quarter of the present 
 century, the State of New York had forty-two 
 banking institutions, with the right to employ a 
 capital of $28,900,000. The applications at this 
 time for new bank charters, were very numerous, 
 but not very successful. Cases of alleged corruption 
 and mismanftgement then on trial in the Courts of 
 law, excited great interest, and disinclined the 
 legislature towards the chartering of banks. A com- 
 mittee was appointed to inquire into alleged viola- 
 tions of charters by certain Insurance Companies in 
 the city of New York. The chairman, Mr. Spencer, 
 reported," that the companies referred to, were in 
 the habit of loaning their own bonds on promissory 
 notes or personal securities; that they claimed this 
 ligtit under implied powers, supposed to be con- 
 ferred by vague and general expressions in their 
 charters ; that large amounts of these securities had 
 been issued, and were afloat in the community ; that 
 many of these companies had the right by their 
 charters to loan money; but that the committee 
 questioned their right to issue bonds or notes for 
 the purpose of loaning them / that tJiis was strictly 
 a banking privilege, and within the laws to restrain 
 unincorporated banking associations. He reported 
 
 (A) Hammond's Hist. vol. i., 219, 220, 809-316, 325, 327, 832-338. See 
 also Note u, by General Root, p. 584. 
 
INTRODUCTION. XXV 
 
 also that certain other Insurance Companies, incor- 
 porated witli the obvious intention that they should 
 he located in the interior of the State, had been, 
 after lying dormant for years, resuscitated and 
 brought into operation in the city of New York; 
 that although a location Vfas not expressly directed 
 in the charters of these companies, yet from their 
 titles, and known residence of the persons incorpo- 
 rated, and of the citizens appointed directors and 
 commissioners, there could be no reasonable doubt 
 of the jntention of the legislature; and that the 
 Committee did not believe, that such palpable vio- 
 lations of that intention, and of the spirit of their 
 charters, would be sanctioned or sustained by the 
 courts of thel' State. (JiK) 
 
 Mr. Spencer also reported a bill to pre'^ent ^^^j"*^* 
 fraudulent bankruptcies by incorporated companies-^^SSJ^ 
 This was the most important bill acted upon by the|^e|j^' 
 legislature of 1825 ; and on the 21st day of April 
 of that year, it was enacted, and became a law of 
 this State, under the title of, '■'■An Act to prevent 
 fraudulent hankruptcies ly imiorporated companies^ 
 — to facilitate proceedings against them^-^and for 
 otlier pv/rposesr (^') 
 
 (AA) The report of Mr. Spencee will be found at length in the N. Y. 
 Evening Post of May 11, 1826. In all acts passed in 1825, incorporating 
 Insurance Companies, a prohibition was inserted against such Companies 
 keeping an office for the transaction of business in any place except the 
 city, town, or village designated in their charters. (Laws 1826, p. 46, 
 § 16 ; p. 62, § 16 ; p. 163, § 1.) See Note 87, p. 92, post. 
 
 {j) Laws of 1828, p. 448. 
 
XXVI INTRODUOTIOK. 
 
 This celebrated act contained many stringent reg- 
 ulations, calculated to check abuses in all moneyed 
 corporations, to prevent their insolvency, and to 
 expedite proceedings against them. All transfers or 
 assignments by incorporated companies, in contem- 
 plation of insolvency, were declared by this act 
 uUerl/y void ; and if any incorporated bank should 
 become insolvent, or violate its charter, or any other 
 law binding upon it, the chancellor was authorized, 
 upon the petition of any creditor, or upon the appli- 
 cation of the attorney-general, by process of injunc- 
 tion, to restrain the exercise of its powers, and to 
 appoiat a Receiver of its effects, to be distributed 
 " among the fair and honest creditors thereof." 
 "This," says Chancellor Kent, "was a statute of 
 hmikruptcy in relation to incorporated banks ; and 
 it was an unusual provision, for the English bank- 
 rupt laws, or the general insolvent laws of the 
 several States, never extended to corporations.'''' (F) 
 
 By the Revised Statutes of this State, the provis- 
 ions of the act of 1825 have been re-enacted and 
 greatly enlarged. (J) 
 
 Only two of the numerous applications for bank 
 charters' were granted by the legislature of 1825. 
 The " Commercial Bank of Albany " and the 
 
 (k) 2 Kent's Oom. 815. 
 
 (Z) See Chap. 18, Part I., Titles 2, 3, 4, of 1 Revised Statutes; also the 
 Act concerning the Revised Statutes, passed Dec. 10, 1828, in Sess. Laws of 
 1829, p. 24, § 17. See pages 1-11, post. 
 
INTRODUCTION. XXVll 
 
 "Dutchess County Bank" were chartered in that 
 year. 
 
 The legislature of 1825, in grantiuff charters to rireticgis- 
 the two banks last named, for the first time defined bank™/' 
 
 -, ,, , , powers, 
 
 and hmited the powers of corporations created for ^8^- 
 banking purposes. In each of these charters, is in- 
 serted a precise enumeration of the hanlcmg powers 
 intended thereby to be conferred, accompanied with 
 a declaration, that said banking company, so created, 
 " shall have and possess no other powers whatever, 
 except such as are expressly granted by this act." 
 
 The grant of power to the " Commercial Bank of 
 Albany " was as follows : that said company should 
 have succession, be capable of suing and being sued, 
 have a common seal, &c., and should " have and 
 possess all incidental and necessary powers to carry 
 on the business of -banking, — ^by discounting bills, 
 notes, and other evidences of debt ; by receiving 
 deposits ; by buying gold and silver bullion, and 
 foreign coins ; by buying and selling bills of ex- 
 change, and by issuing bills, notes and other evi- 
 dences of debt ; but the said company shall have 
 and possess no other powers whatever, except such 
 as are expressly granted by this act." Then the 
 company is forbidden to trade, or to carry on " its 
 operations of discount and deposit " elsewhere than 
 in the city of Albany, (m) 
 
 (m) La-v^B 1826, p.' 198, § 1. 
 
XXVIU INTRODUCTION. 
 
 The specification of banking powers in the charter 
 of this bank was adopted by the Eevisers and the 
 legislature, in 1827, as a definition of the term "bank- 
 ing powers ;" (n) and the prohiMtion contained in 
 this charter, that said banking corporation should 
 have and possess no other powers except those 
 thereby expressly granted, has now become a part 
 of the general Statute Law of this State, applicable 
 to all corporations, (d) 
 
 In the year 1826, no bank charters were granted, 
 (p) Numerous applications for acts incorporating 
 banking companies were made and pressed upon the 
 legislature, but all were rejected, or indefinitely 
 postponed, by a large majority of the senators, (gf) 
 tiiM*^mr. Events, however, occurred in 1826 which induced 
 the legislature of 1827 to enact a most stringent 
 and general code of statute regulations in relation 
 to moneyed corporations, (qq) 
 
 In February, 1826, a committfee of the Senate, of 
 which Silas Wright was chairman, recommended 
 that one of the senators be expelled from the Senate,, 
 on the ground that the means used by him in ob- 
 taining charters of certain insurance companies were 
 a violation of his duties as a seng,tor, tended to cor- 
 
 («) 1 E. S. 600, § 4. See p. 26, post, and note. 
 
 (o) IE. S. 600, § 8. See p. 26, post, and note. 
 
 (jj) See Sess. Laws of 1826. 
 
 (g) Hammond's Hist. vol. iii., p. 6T. 
 
 (qq) See Statute Eegulations, pp. I-IV, post 
 
USTTRODUCTIOIf. XXiX 
 
 rupt tlie public morals, and to impair the public 
 confidence in tlie integrity of the legislature. The 
 senator implicated, before any action by the Senate 
 upon the resolution for his expulsion, resigned his 
 seat as a member of that body, (f) 
 
 In the summer and fall of 1826 and early in 182Y, conspir.- 
 
 oy trials of 
 
 several most respectable and influential citizens, ini|?_^"* - 
 the city of New York, were indicted and tried for 
 an alleged conspiracy to defraud the Morris Canal 
 & Banking Company, the Fulton Bank, the Trades- 
 mens' Bank, the Mercantile Insurance Company, the 
 Merchants' Kre Insurance Company, and other 
 moneyed institutions. 
 
 Several of the officers and directors or managing 
 agents of the "Life & Fire Insurance Company," 
 the " Sun Fire Insurance Company," the " United 
 States Lombard Association," and the "Madison 
 Fire Insurance Company," were implicated in these 
 criminal prosecutions, which were widely and gen- 
 erally known and designated at the time as the 
 " coTispiracy t/rialsr 
 
 The high sta,nding, reputed wealth, and eminent 
 talents of the persons indicted, — and the vkst num- 
 ber of stockholders and bondholders ruined by the 
 frauds committed by the officers and directors of so 
 many moneyed corporations, made these criminal 
 trials famous throughout the country, — and the 
 
 if) Hammond's History, toL iii., pp. 68, Y7. 
 
XXX INTRODUCTION. 
 
 fraudulent practices thereby disclosed, produced,- in 
 this State, the most intense excitement and alarm. 
 
 Among the operations which these trials brought 
 to view, none, perhaps, were more clearly revealed 
 than those which had been carried on by the 
 managers of " The Life & Fire Insurance Com- 
 pany" This company was originally chartered in 
 1822, by the name of "The New York Mechanic 
 Life Insurance & Coal Company," and was author- 
 ized to have a capital of $600,000, to make insurance 
 on lives, to grant annuities, to purchase, sell, and 
 work any mine or mines of coal, &c. (s) In 1823, 
 the legislature changed its corporate name to the 
 "Life & Fire Insurance Company," and authorized 
 it to make contracts of insurance " against loss or 
 damage hy f/re." {() 
 
 The legislature, in 1824, further enlarged the 
 powers of this company by enacting, that " all the 
 powers given to the Farmers' Fire Insurance & Loan 
 Company in relation to receiving trusts, be and the 
 same are hereby extended to the Life & Fire In- 
 surance Company." (m) 
 
 The Life & Fire Insurance Company was eoa- 
 pressly authorized, by its original and amended 
 charter, to make iasurances upon lives ; to grant 
 
 («) Laws of 1822, p. 54. (<) Laws of 1823, p. 177. 
 
 («) Laws of 1824, pp. 234, 23B, § 2. As to the powers conferred oa 
 the Farmers' Kre Insurance & Loan Company, see Laws of 1822, chap. 
 240, p. 254. 
 
INTRODUCTION. ^^^ 
 
 annuities; to insure buHdings against loss or damage 
 by fire; to work, explore, purchase, and sell coal 
 mines; to purchase real estate for tlie transaction of 
 its business ; to take by deed or devise, real and 
 personal property left or conveyed to it in trust; to 
 assume, perfonn, and execute any trust wMcli kad 
 been, Or migkt be created or declared by any deed 
 or devise ; and to make loans of its capital stock, 
 funds, or moneys, upon bonds secured by mortgages 
 upon real estate. Clotked witk express powers so 
 various and extensive, tkis company issued and put 
 in circulation its bonds to tke amount of about 
 $1,300,000. 
 
 But from tke uncontrOverted evidence of tke 
 secretary of tke company, it satisfactorily appeared 
 tkat tkese issues were not made for any of tke pur- 
 poses specified in tke ckarter, nor for tke payment 
 of office-rent, clerk-kire, or contingent expenses of 
 tke company. Tke principal business of tkis cor- 
 poration was to get its bonds into circulation, witk 
 a view to raise funds. Tkis was usually done, eitker 
 tkrougk tke medium of an exokange of securities 
 witk tke dealers, or by a direct sale of tke obliga- 
 tions ia tke market, to purckasers, for cask, {v) 
 
 Tke form of tke securities, called lAfe & JFi/re 
 Bonds, " was tkat of ordinary post notes of banking 
 institutions, printed upon an engraved plate, witk a 
 
 iy) Att. Gen. v. Life & Fire Ins. Co. (9 Paige K. 4'72-4'75.) 
 
XXXU IKTEODUCTION. 
 
 vignette, and otter devices wMch are usual upon 
 notes issued as a circulating medium ; the number, 
 date, amount, payee, and time of payment being left 
 blank in the engraved plate, and filled up in writing, 
 signed by the president of the corporation, and 
 counter-signed by the secretary thereof (w) 
 
 They were made payable to some one of the 
 clerks of the company, and endorsed in blank by 
 him ; his name being used to facilitate the opera- 
 rations of the corporation, in issuing and putting 
 the paper in circulation, (a?) 
 
 The United States Lombard Association, in the 
 short space of ten months, issued similar bonds, 
 styled " Lombard Bonds, " to the amount of 
 $1,000,000, and at the time of its failure, had out- 
 standing unpaid $600,000. There was also an issue 
 of bonds called the " Hudson and Lombard Bonds." 
 
 " We have seen," says an able writer of that day, 
 "that these Companies, whUe presenting to the 
 public eye separate and independent institutions, 
 subscribed for by different persons, governed by 
 separate Boards of Directors, each having appa- 
 rently an exclusive capital, — were aU connected 
 together in one common bond, for the attainment of 
 one common purpose. We have seen them moved 
 by the same wires — pledging, hypothecating, and 
 
 (w) See forms of the Life ^ Fire Bonds, pp. 43, 122, post. 
 
 {x) See 9 Paige R., 471, 472-476 ; 4 ihid., 224. See forms 4S, 122, n., post. 
 
INTEODTJCTIOK. XXXIU 
 
 transferring tlie same wortliless bonds, the same 
 worthless notes, the same depreciated stock, and 
 offering the same bankrupt securities." It also ap- 
 peared, that affidavits were made that the capitals 
 of several of the corporations, implicated had been 
 fully paid, when ia fact not one dollar had been paid. 
 Among the actors in these scenes, were some of the 
 principal agents of influential moneyed institutions. 
 "It is not surprising," said Judge Edwards, "that 
 conspiracies composed of men of so much talent, and 
 avaihng themselves of their high standing, should 
 have swept society as with the besom of destruc- 
 tion." (y) 
 
 . In the case of the Attorney General v. The Life 
 & Fire Insurance Company^ (z) the Referees re- 
 ported to the Chancellor, that all the " Idfe <& Fire 
 Bonds " proved before them were null and void, 
 and furnished no evidence of any valid debt against 
 the company ; that it had been urged before them, 
 ' that if these bonds were void, still they were com- 
 petent evidences of money had and received by the 
 company to the use of the holders ; but that they 
 could not yield their assent to this proposition, — for 
 
 (i/) In January, 1827, Hyatt and others were sentenced to the Peniten- 
 tiary. See remarks of Ogden Edwards, Presiding Judge at the time of 
 passing sentence on the convicted parties. (N. Y. Evening Post, Jan. 3, 
 182'?.) See, also, " Trial of Jacob Barker and others for an alleged Conspi- 
 racy, New York, 182'7." Also a "Letter to the New York Delegation iu 
 the Legislature, on the Uses and Abuses of Incorporations." (N. Y. Even- 
 ing Post, Feb. 7-9, 1827.) 
 
 (s) 9 Paige R„ 470. 
 
xxxiv INTRODUCTIOlir. 
 
 if the dealings in question were proMbited by the 
 charter or by the general BeWaining Act, or by 
 either of them, both the express and im$lkd con- 
 tracts were alike null and void; that to establish 
 that the latter was valid, while the former was void, 
 would be opening a door to evade the force and 
 policy of the law ; that all dealers in the Ufe & 
 Fire Bonds of this company were bound to look 
 to its authority to issue them ; and that in legal 
 contemplation they did know, or were bound to 
 know, that the company was transgressing its legit- 
 imate powers, (a) 
 
 Jacob Barker and others excepted to the report 
 of the Eeferees, and upon their exceptions, the de- 
 cision of the Eeferees was reviewed by the Chan- 
 cellor, who confirmed the report. 
 
 In giving his opinion, the Ghmcellor said, — 
 " It was an attempt, on the part of those who had 
 the control of the affairs of this company, to carry 
 on banking business instead of the business for 
 which they professedly obtained their charter. 
 They in fact carried on the business of discounting 
 notes, bonds, and mortgages, and other securities 
 for money, giving in exchange therefor these bills 
 or bonds, endorsed in blank by their own clerks 
 and others, as negotiable securities, which were 
 intended to be, and actually were, put in circulation 
 
 (a) 9 Paige R., 476. 
 
INTRODUCTION. ^^"^ 
 
 as money; in the same manner as tlie post-notes 
 of incorporated banks were issued and circulated 
 as money before the issuing of such notes was pro- 
 hibited by law. (h) * * * * There was suf- 
 ficient on the face of these bonds to show that they 
 were intended as a circulating medium, and were 
 not given by the company to the payees thereof 
 for an actual indebtedness in the course of the 
 legitimate business of the company. At least, 
 there was sufficient to put those who received them 
 upon inquiry as to the fact, whether they were 
 really given for any purpose within the authority of 
 the corporation, and not in violation of the laWs of 
 the State." (c) 
 
 Since the disclosures of 1825 and 1826, there has 
 been no direct evidence of corruption, as a means 
 of procuring bank or other charters. "The dis- 
 graceful scenes of 1812, 1824, and 1825," says Ham- 
 mond, "will never be renewed." (d) 
 
 Not one bank charter was granted in 182Y. (e) 
 The " Conspiracy Trials " were stiU in progress, and 
 the excitement produced by them was unabated, 
 when the legislature met in January, 182Y. Gov- 
 ernor Clinton, in his annual message to that body, 
 stated that the then alarming commercial convul- 
 
 (5) See § 35, p. 38, post, and § 4, p. 114, poaf. 
 
 (c) 9 Paige R., 470, ill ; 4 ibid., 224. 
 
 (d) Hamniond's History, vol. iii., p. IS. 
 
 (e) La-wB of 1827. 
 
XXXvi INTRODUCTION. 
 
 sions stould inculcate tlie necessity of avoiding a 
 recurrence of such calamities, by avoiding tlie causes 
 wMch produced them ; that the calamitous derange- 
 ments in England (/) had been ascribed to a 
 transition state from war to peace, and to excess of 
 production; but the better opinion then was that 
 they were chiefly imputable to excessive emissions 
 of paper money in the shape of bank notes ; and as 
 similar disasters, were experienced almost contem- 
 poraneously in this country, that they might be 
 traced to similar causes ; that a bank might issue 
 notes to three times the amount of its capital paid 
 in ; that this was intended as a wholesome restric- 
 tion, but was in fact a most pernicious authorization 
 and could never be justified by any state of things ; 
 that the authority to create money would always be 
 abused ; that the power of making money was a 
 dangerous faculty, and its liability to perversion 
 was in proportion to its extension ; that banking 
 privileges deposited in unskillful hands might be 
 abused without design — but when granted to fraudu- 
 lent men, who preferred wealth to character, there 
 would be no bounds to the evils that would ensue ; 
 
 f/) In England, during 1826, a large proportion of the country banks 
 were swept off, and produced by their fall an extent of ruin that has 
 hardly been equaled in any country. Moye than seventy of these banking 
 establishments were destroyed in the short space of six weeks. The lucky 
 discovery in the Bank of England of an " old box, containing a quantity of 
 one-pound notes," which had been overlooked, saved the country. (Law- 
 son's Hiat. of Banking, p. 113. MeCuUoch's Diet., Article ''Banking.") 
 
INTRODUOTION". XXXVil 
 
 that experience liad proved tliat applications for 
 banking privileges were made for personal benefit, 
 and not for the public accommodation. In con- 
 clusion, lie recommended great caution and more 
 than ordinary circumspection in making such grants 
 in future ; and stated that " some general restrictions 
 were indispensably necessary for limiting the issue 
 of bank paper,— for requiring the possession of a 
 certain quantity of metallic money, and adequate 
 security for the redemption of bank notes, — for 
 compelling the attendance and increasing the respon- 
 sibility of the directors, — for detecting misstate- 
 ments in the periodical renditions of the state of 
 banking institutions, — and for prohibiting the circu- 
 lation of bank notes below a certain sum. (/) 
 
 The views expressed by Governor Clinton in his 
 message of 1827, as to the real causes which pro- 
 duced the commercial and calamitous derangement 
 in England in 1825, and in this country in 1826, 
 have since been more than confirmed by the most 
 
 (/) See Governor Clinton's Message, 182'7. 
 
 "It appears from a published table of the schemes and bubbles projected 
 in England, in 1824, that they amounted to 243, — that the amount of 
 
 capital proposed to be subscribed on these schemes was £248,000,000, 
 
 that the amount actually paid up was £43,062,608, — and that the balance 
 due on the whole of them at the close of the year 1825, was £204,937,392. 
 Numerous other schemes, to which equal publicity was not given, are 
 known to have been projected throughout the United Kingdom. And 
 without exaggeration, it may be inferred — though the statement may as- 
 tonish dupes and directors — that the bubble mania (1825), if carried into 
 execution to its meditated extent, would have required (if it could have 
 been procured) a capital of £350,000,000 sterling." (Lawson's Hist, of 
 Banking, pp. 61, 68.) 
 
 d 
 
SUtnte 
 rcffalatioDS 
 of 182T. 
 
 xxxviii INTRODUCTION. 
 
 sagacious and able writers on tlie subjects of bank- 
 ing and currency, {g) 
 
 Governor Clinton, in April 1827, appointed Jolin 
 C. Spencer, tlien a member of the State Senate, one 
 of the Revisers of the statutes of this State. 
 
 In September, 1827, John Duer, John C. Spencer, 
 and Benjamin F. Butler, — constituting the Bowrd 
 of Revisers^ — ^reported to the^ legislature general 
 Statute Regulations to govern all moneyed corpora- 
 tions which should be created in this State, unless 
 expressly exempted by their charters from its pro- 
 visions. These elaborate regulations are contained 
 in chapter eighteen of the first part of the Revised 
 Statutes. (_/) This chapter was enacted in Decem- 
 ber, 1827, and took effect January 1st, 1828. (I) 
 
 These statute regulations, relating to moneyed 
 corporations, were prepared by Revisers familiarly 
 acquainted with the scenes and events of 1825 and 
 1826, to which reference has been made, — and were 
 enacted by the legislature in 1827, in the midst of 
 the disclosures of the " conspiracy trials." (m) 
 
 {g) McCuUoch's Diet., Article "Banking." Lawson's Hist, of Banking. 
 Gilbart on Banking. 
 
 (j) 1 R. S. 588. See pp. 1-28, post. 
 
 {I) Laws 1829, pp. 11, 12, 13, 14. §§ 1, 2, 4. 
 
 (»i) Mr. Gouge states in his History of Paper-money and Banking in 
 the United States, pp. 185, 186, IST, that " in April, 1826, the ' Marble 
 Manufacturing Company,' a newly instituted bond-issuing concern, became 
 bankrupt" — that in July, August, and September, 1826, followed the bank- 
 ruptcies of the " Green County Bank," the " United States Lombard," the 
 "Franklin Manufacturing Company," the "Hudson Insurance Company," 
 the " New York Life Insurance Company," the " New York Mount Hope 
 
INTRODUCTION. XXXIX 
 
 For nearly thirty years these Statute Eegulations 
 applicaUe to moneyed corporations, have been in 
 force in this State. We can only allude to some of 
 their leading features. 
 
 The stringent provisions in chapter eighteen " to 
 prevent the insolvency of moneyed corporations, 
 and to secure the rights of their creditors and 
 stockholders " were intended by the Revisers as a 
 substitute, in part, for the act of 1825, "to pre- 
 vent fraudulent hanhrutptcies ly incorporated com- 
 panies,^'' (&c, (n) 
 
 The main objects sought to be attained by the 
 general statute regulations reported by the Eevisers, 
 were : to secure the actual payment of the capital 
 on which the operations of a moneyed corporation 
 are founded, and to prevent the capital paid in 
 being withdrawn or diminished (o) ; to prevent 
 dividends being made, except from actual profits (p); 
 to prevent a fraudvlent application or trafisfer of 
 
 Loan Company," the " Sun Fire Insurance," the " Greenwich Insurance," 
 and the " Protection Fire Insurance Companies." In May, 1827, the ease 
 of Lambert v. The People (1 Cowen, 166) was heard and determined by 
 the Supreme Court. In June, 1827, the same ease was argued before the 
 late Court for the Correction of Errors. In September, 1827, that Court 
 ordered a re-argument, and decided the case in December, 1827 (9 Cowen, 
 578, note a; see note b at the end of the case, on pp. 624, 625). Mr. Spencer, 
 one of the Revisers, was a member of the Senate in- 1826 and 1827 — and 
 Mr. Butler was the counsel of Jacob Barter. (See Conspiracy Trials ; also 
 see The People v. JEckford, Barker, and others (7 Cowen, 535). The Pea-- 
 pie V. Vermilyea, Brown, and others (7 Cowen, 408). 
 
 (n) See 3 R. S., 2d ed., p. 630, 
 
 (o) See § 1, sub. 2, p. i,post; § 29, p. \*l,post. 
 
 (pi) See § 1, sub. 1, p. 3, post. 
 
xl ISTBODTJCTION. 
 
 the property and funds of a company, by its direc- 
 tors or officers (q); "to prevent directors from 
 employing the funds of the company in the 
 purchase of shares of its own stock," &c. (r) ; " to 
 prevent speculators, by means of hypothecated 
 stock or otherwise, from acquiring a control of a 
 company in defiance of the wishes of the real 
 stockholders " (s) ; and " in the event of msohency^ 
 to secure an equal distribution of the effects of a 
 company amongst all its creditors^ (u) 
 
 In January, 1828, there were two distinct systems 
 of statute law in force relating to moneyed corpora- 
 tions, — one applicable to those existing prior to 
 that time ; the other to govern all which should be 
 created after January 1st, 1828. (v) 
 
 The early bank charters, containing no reservation 
 of power to the legislature to alter or repeal them, 
 were regarded as contracts. It was, therefore. 
 
 (j) See §§ 1, 8, pp. 6, 7, post, and notes ; also Oillet t. Phillips (3 Ker- 
 nan, 114). 
 
 (r) See § 1, sub. 6, p. 4, post. 
 
 (a) See §§ 37 to 43, pp. 19-21, jsosi. 
 
 (u) See § 9, pp. 8, 9, pout, and note; also Oillet v. Phillips (3 Kernan, 114), 
 and Brouwer v. Harbeek, decided in the Court of Appeals in March, 1854, 
 See note (5), p. 9,^o»<. See Revisers' Notes (8 R. S. 2d ed. p. 630). ^ 
 
 (v). 1 R. S. 601, chap. 18, title iv. "Special provisions relating to cer- 
 tain eorporations." These are applicable to corporations created before Jan- 
 vary 1st, 1828 ; and to certain other corporations not embraced in Title II. 
 of Chapter 18 ; 1 R. S. 588, 689, chap. 18, title ii. Tlie provisions of this 
 Title II. are applicable to moneyed corporations created, &o., after Jamuiry 
 1st, 1828. See p. \,post, and note; also, § 52, p. 23, post; also, 3 R. S, 2d. 
 ed. p. 530. 
 
INTRODTTCTION'. xli 
 
 deemed a questionalble exercise of legislative power, 
 to subject then existing corporations to the new and 
 stringent regulations contained in the second title of 
 the eighteenth, chapter, before referred to. By- 
 section fifty-two of that chapter, the legislature 
 Hmited the application of the provisions of the 
 second title to nioneyed corporations created after 
 January Ist^ 1838. (w) 
 
 The system of statute regulations reported by the 
 Revisers and adopted by the legislature in 1827, for 
 the government of all future moneyed corporations, 
 was in force during the whole of the year 1828. 
 Not a single bank charter, however, was granted in 
 that year. 
 
 This new system of statute law provided for the 
 personal liability of the stockholders, and imposed 
 penalties upon directors of moneyed corporations 
 which were regarded as too onerous and severe, (a?) 
 Responsible parties were indisposed to become 
 directors of moneyed corporations subject to such 
 a code of laws. No bank charters were granted 
 until after the objectionable provisions, above re- 
 ferred to, were modified or repealed by an act 
 passed in April, 1829. (jf) 
 
 January, 1829, Governor Van Bur en in his 
 
 (m) Laws 1829, p. 2C, § 16; also, § 52, p. iZ, post, 
 (x) See §§ 11 to 19, pp. 10-13, post ; also, p. IS, post, and note, 
 (y) See §g 30, 31, of Safety Fund Act of 1829, pp. 36, 31, post; also p. 
 IS, post, and note. 
 
xlii INTRODUCTION. 
 
 annual message to the legislature, stated that 
 of the forty banks then in operation in this State, 
 the charters of ihiri/y-ofie would expire in two, 
 three, and four years ; (s) that the collective cap- 
 ital of these thirty-one banks, actually paid in, 
 amounted to $15,000,000 ; the debts due to them 
 to more than $30,000,000 ; and that the debts due 
 from them to the community, including their stock- 
 holders, amounted to about $30,000,000 ; that the 
 policy pursued of requiring the payment of a large 
 honus to the State, or the performance of service, 
 as the ^ice of bank charters, was condemned by 
 experience ; that the unbiased judgment of all ob- 
 serving and thinking men, would concur in regard- 
 ing it as an expedient from which no good had 
 resulted; that its tendency had always been to 
 weaken the security of the public in these institu- 
 tions for the performance of that in which the pub- 
 lic interest mainly consisted — the faithful redemp- 
 tion of their paper ; that all the conditions that 
 should be prescribed should refer exclusively to the 
 safety and stability of these institutions ; that " our 
 chief duty in this respect is to see that the farmer 
 
 (2) During the session -which commenced in January, 1825, application 
 ■was made for charters for new banking, insurance, and other companies, 
 ■with nominal capitals of the amount of $52,000,000. During the session 
 commencing January 1, 1826, applications -were made for charters for 
 128 banking and other moneyed corporations, -with nominal capitals of 
 $55,637,000. (Gouge's Hist, of Banking, pp. 179, 186.) Only two banks 
 were chartered in 1826, and none in 1826, 1827, or 1828. (See Session 
 Laws of those years.) 
 
INTRODUCTION. xliii 
 
 when lie exclianges Ms produce or estate, the me- 
 chanic his wares, the merchant his goods, and all 
 classes of the community their property or services, 
 for bank paper, may rest contented as to its value ;" 
 that provisions invalidating all confidential assign- 
 ments or trusts of any description — imposing severe 
 penalties upon acts designed to divert the funds 
 from the appropriation which, in justice and policy, 
 ought to be made of them were of value, — and that 
 the importance of some more efficient safeguards 
 had been felt by former legislatures, (a) 
 
 From January, 1829, to April 2d, 1829, the legis- 
 lature, instead of granting or renewing any bank^f"mT'*" 
 charter, were engaged in discussing and perfecting 
 a general act, applicable to all moneyed corpora- 
 tions, having lanhing powers, which should be 
 thereafter created in this State. This general act 
 amended or modified some of the provisions of the 
 general Statute Eegulations of 1827, relating to 
 that class (b) of moneyed corporations ; and pro- 
 vided also for a perpetual fund, to be denomi- 
 nated the '■'■ianh fimdP Hence this amendatory 
 act has ever since been known as the Safety Fund 
 ActoflS^^. 
 
 It was passed on the 2d day of April, in that year, 
 under the title of " An Act to create a fund for the 
 
 (a) See Governor Van Burcn's Message, Jan , 1829. 
 (6) See definition of the term "moneyed corporation," as used in Ihe 
 Eevised Statutes,— § 51, p. i.Z,post. See § 30 4 § 31, pp. 36, Z1,po3t. 
 
xliv INTRODUCTION. 
 
 benefit of certain moneyed corporations, — and for 
 other purposes^ (6) 
 
 One of the most important provisions of the act 
 of 1829, is the express prohibition contaiaed ia the 
 thirty-fifth section. By this, every moneyed corpo- 
 ration subject to the act was prohibited from is-svr 
 ing any bill or note payable on time ; or payable 
 with interest, (d) This act also provided for the 
 visitation and inspection of Sank Commissioners. 
 
 Experience has demonstrated, that the statutory 
 prohibition of 1829, against the issue of post notes 
 by banks, has been more effectual, during the last 
 twenty-five years, in securing to the citizens of this 
 State a uniform and sound currency, and preventing 
 bank insolvency, than all the restrictions and prohib- 
 itions in the statutory regulations of 182*7. " No 
 
 (c) Laws of 1829, p. 167. See pp. 29-38, post Governor Van Buren, 
 in his message of 1829, said that a former legislature had attempted to fur- 
 nish more efficient safeguards, " through the medium of a personal responsi- 
 bility of the stockholders. [See §§ 11 to 19, pp. 10-13, post.'\ But it is 
 objected, that the practical operation of such a provision, would be to 
 defeat the object in view, by throwing this species of property, and of 
 course its management, into the hands of irresponsible men ;" and the Gov- 
 ernor advised that such an experiment had better not be tried ; that it would 
 be unsuooessfal, and the consequences to flow from it disastrous. (See Gov. 
 Van Buren's Meosage, January, 1829.) The Bank Fund, created under the 
 provisions of the general amendatory act of 1829, was intended as a substi- 
 tute for the personal liability of stockholders in cases of insolvency, as pro- 
 vided in the sections of the general code, in part repealed by the act of 
 1829. As to the eflFeet of laws imposing upon stockholders in banking com- 
 panies, a personal liability for debts, see evidence of Gen. Austin and of V. 
 Stiokney, before a Committee of the House of Commons, 1836, pp. 91, 127 ; 
 Carey on the Credit System, London, 1838, p. 128, and note. 
 
 {d) See § 35, p. 88, post ; also, § 4, p. 114, post, and note. 
 
INTRODTTCTION-. xlv 
 
 man or set of men," says Mr. McCuUocli, " lias ever 
 had power to make unrestricted issues of paper, with- 
 out abusing it." (dd) 
 
 Under the safety-fund system, — "bank charters 
 
 •' •' ' Leading 
 
 were of one unvarying form. These charters gave Ky-flTnd' 
 
 bank char- 
 
 a name to these institutions, fixed the place where t^rs. 
 their operations of discount and deposit should be 
 carried on ; the time when their corporate existence 
 should terminate, and the amount of their respect- 
 ive capitals. They also specified the precise powers 
 which these banks should possess in addition to the 
 general powers enumerated in the eighteenth chap- 
 ter of the first part of the Revised Statutes, (e) 
 
 These institutions were expressly prohibited from 
 trading in State stocks, goods, wares, or merchan- 
 dise, and from commencing the business of banking 
 until the whole of their capital stock should be paid 
 in specie. (/) They were also inhibited from hav- 
 ing in circulation at any one time an amount of 
 notes or bills exceeding twice their capitals ; while 
 their loans and discounts were limited to an amount 
 not exceeding twice and a half their capitals, (g) 
 
 (dd) See MoCullooh'B Notes to Smith's Wealth of Nations, p. 491. 
 ZeavittY. Palmer (3 Comstock, 19, S3); Ontario Banh v. Schermerhorn {9 
 Paige, 109, 118, 114), See, also, § 4, p. 114, post, and note; and note 18, 
 pp. 300-305, ^os«, 
 
 (e) See Safety-Fund Bank Charters in Session Laws 1829 to 1836. See, 
 also, §§ 1, 2 (Revised Statutes), pp. 24, 25, post. 
 
 (/) See Safety Fund Bank Charters; also, § 34, p. SS,post. 
 
 (c/) Se6 § 27, p. S6,post. 
 
xlvi INTRODUCTION, 
 
 They were required to contribute annually one 
 half of one per cent, upon their capitals (not 
 exceeding in all three per cent.), for the purpose of 
 creating and continuing a fund to be denominated a 
 "bank fund;" and they were subject to the visitation 
 and inspection of Bank Commissioners. (K) 
 eatet'^fund "^ ^^^^ ycars' trial of this system fully proved, 
 TXk that the "bank fund" was wholly inadequate as 
 an indemnity fund ; that the prohibition against the 
 issue of bills or notes ; exceeding twice the capital, 
 and against loans and discounts exceeding twice and 
 a Ticdf the capital, afforded no guaranty to the public 
 against bank insolvency(TO). It has also been proved 
 that the carefully contrived statute regulations of 
 1827 (w), requiring all banks to make annual state- 
 ments to- the Bank Commissioners, verified by the 
 oaths of their officers, — were in many cases good for 
 nolihing, except to delude or deceive the public as 
 to the real condition of their affairs; that the 
 accounts of the banks that broke looked as well in 
 these official statements as did those of the institu- 
 tions that continued solvent; — that bankrupt and 
 fraudulent concerns alone gained, by a code of regu- 
 lations that could not be enforced, — inasmuch, as it 
 enabled them, by appearing to be prosperous, the 
 better to deceive and blind the public. It had also 
 
 (7() See §§ 2, 3, 4, 15-27, pp. 29, 30, 38-36, pott. 
 (m) Gouge's Hist, of Paper Money, p. 61. 
 («) See §§ 19, 20, pp. 18-15, post. 
 
INTRODUCTION. xlvii 
 
 been demonstrated, that the quarterly inspection of 
 the Bank Commissioners, armed as they were with 
 the power to send for persons and papers (o), and 
 to examine iato all violations and abuses of law 
 by incorporated banking institutions, furnished no 
 reliable security to the public ; and that the peri- 
 odical visits and examinations of these public inspec- 
 tors, restrained only those officers and directors who 
 did not require to be placed under any sort of sur- 
 veillance, while they afforded to less conscientious 
 managers an opportunity, by misleading the Bank 
 Commissioners, and by making false and exagger- 
 ated statements of the affairs of their institutions, to 
 get their condition represented as most prosperous, 
 when perhaps it was quite the reverse. But, even in 
 cases where the managing directors were perfectly 
 honest, it was found that the publication of a hal- 
 ance sheet afforded no certain information as to the 
 actual condition of a bank; that bank directors 
 were, like all other sanguine people, strongly in- 
 clined to over-estimate the real values of the 
 corporate assets ; and thus, that debts and bills 
 receivable estimated, in the official statement, as if 
 they were worth so much bullion, turned out in the 
 end to be worth nothing, (p) 
 
 (o) Lavs 1827, p. 66. 
 
 (p) MoCuUoch's Notes to Smith's Wealth of Nations, Edin. ed. (1846), 
 p. 503. MoCuUoch's Diet, article "Banks." Gouge's Hist, of Paper Money, 
 p. 61. 
 
xlviii mTEODUCTION. 
 
 It has been sIio-Wti that the Bank of England was 
 prohibited from engaging in any commercial or 
 mercantile undertaking, other than dealing in bills 
 of exchange and gold and silver ; and yet this insti- 
 tution conducts the whole banking business of the 
 British Government. " It acts," says Adam Smith, 
 "not only as an ordinary bank, but as a great 
 engine of State." {£) 
 
 It has also been seen, that for nearly half a 
 century this State carefully inserted in every bank 
 charter, an eaypress prohibition against trading in 
 government stocks (f) or in goods and mer- 
 chandise. 
 
 (q) MoCuUooh'a Diet, article " Banlc of England" 
 
 (r) London Banking Circular of January l'7th, 1840, contains the follow- 
 ing declaration; — 
 
 '■ Any mercantile traffic conducted by a bank, beyond that of discount- 
 ing and remitting bills created by the sale or consignment of produce, 
 ought to be suppressed by public indignation. If they speculate in any 
 commodity ybr profit, and not merely to protect themselves against an appre- 
 hended loss, they ought to lose the power of conducting banking affairs, on 
 proof of such an act of delinquency being established." 
 
 " After the instructive lessons of experience, which events have recently 
 imparted, any bank in the United States, that should be weak and foolish 
 enough to enter into the business of merchants from the love of profit, would 
 exhibit evidence of unfitness for the discharge of their professional duties, 
 coming very near to a symptom of insanity." — (London Banking Circular, 
 Jariuaryllth, 1840.) 
 
 In the case of the Bank Commissioners v. The St. Lawrence Bank (8 Sei- 
 dell, 513, 516, Gakdiner, J., said, "The purchase of the stock for the 
 purpose of pledging or selling it, as a means of raising money, is not within 
 the powers conferred by the 18th section of the Statute to authorize the 
 business of banking. Such an operation would be evidence of itself, that 
 the institution was seriously embarrassed, if not insolvent, and cannot, with 
 any propriety, be deemed a necessary incident to the power of banking." 
 See also Talmage v. Pell (3 Selden, 328). 
 
INTKODUCnON. xlix 
 
 "We have also shown that this express prohibition 
 against trading was continued by the legislature of 
 this State, from an abundance of caution, in aU. bank 
 charters granted after 1825, which contained a pre- 
 cise enumeration of banking powers^ — and in those 
 also, which were obtained after the enactment of 
 the Revised Statutes, which declare, that in addition 
 to certain general powers therein enumerated, and 
 to those expressly given in its charter, or in the act 
 under which it is or shall be iucorporated, "«.<? 
 corporation shall possess or exercise any corporate 
 powers, except such as shall be necessary to the ex- 
 ercise of the powers so enumerated and given." {s) 
 In January 1838, all the banks in this State, and 
 throughout the United States, were in a state of 
 suspension; the "bank fund" was itself bankrupt; 
 and the confidence of the public in the safety of the 
 hanking system of 1829, was swept entirely away. {£) 
 On the 11th of April, 1838, one hundred and 
 forty-three bank delegates from eighteen States, 
 met in convention in the city of New York, 
 
 (j) 1 E. S. 600, § 3. See § 3, p. 26, ■post, and Talmage v. Pell (3 Selden, 
 328, 346). See also §§ 1, 2, pp. 24, 26, post, 
 
 (t) May 10th, 1837, all the bants in the city of New York, by common 
 consent, stopped payments in specie ; and immediately afterwards the banks 
 throughout the State were in a state of suspension. On the 16th of May, 
 1837, the legislature passed an act "suspendfng, for a limited time, certain 
 provisions of law, and for other purposes." (Laws 1837, p. 514.) By this 
 act, every provision of law then in force, requiring or authorizing pro- 
 ceedings against any bank in this State, with a view to forfeit its charter, 
 was " suspended for one year." This power cannot now be exercised by 
 the legislature without a violation of the Constitution of 1846. (See § 5, 
 p. i&5,pott.) 
 
1 INTEODUCTIOK 
 
 for the purpose of considering tlie subject of the 
 resumption of specie payments. This convention 
 resolved- — " that it be recommended to all the banks 
 of the several States to resume specie payments on 
 the first Monday of January next (1839) ; without 
 precluding an earlier resumption on the part of such 
 banks as may find it necessary, or deem it proper." 
 This resolution was carried by a large majority, 
 fourteen States voting for it, and two only voting 
 against it. (t() This convention of bank" delegates 
 adjourned on the 16th day of April, 1838 ; and 
 two days thereafter (April 18, 1838), the legisla- 
 ture of this State passed an act entitled, " An Act 
 to authorize the business of JBcmhing.'" (it) 
 
 Before taking up the provisions of this important 
 act, let us see what theories were then held by 
 eminent political economists in reference to bank 
 issues and currency, and how it was proposed to 
 remedy the evils which had resulted, both in En- 
 gland and in this country, from excessive issues of 
 paper-money. 
 Ecmejy The pauic of 1825, in England, provoked a most 
 
 proposed. ^ ^ , ~ ^ 
 
 rigid scrutiny into the whole banking system of 
 Great Britain. Paper money, and the principles 
 upon which alone its value can be maintained and 
 banking safely carried on, were discussed in Parlia- 
 ment, and by the most eminent writers on these 
 subjects both in Europe and in the United States. 
 
 («) American Almanac, Boston, 1839, pp. 308, S09. (m) See p. 81, poti. 
 
INTRODUCTION. li 
 
 In February, 1826, Lord Liverpool expressed him- 
 self, in the House of Lords, as follows : " The present 
 system of law as to banks must now be altered, one 
 way or another. It is the most absurd, the most 
 inefficient ; it has not one recommendation to stand 
 upon. The present system is one of the fullest 
 liberty as to what is rotten and had^ but of the 
 most complete restriction as to all that is good." (v) 
 
 "What is really wanted," said Mr. McCuUoch, "is 
 not a regulation to allow banks with large capitals 
 to be set on foot (for there have, at all times, been 
 many such banks in England), — ^but a regulation 
 to prevent any bank, be its partners few or many, 
 from issuing notes without previously gi/ving securil/y 
 for their payment." 
 
 Ml'. McCuUoch insisted upon the doctrine, that 
 to prevent overissues of bank paper, it was neces- 
 sary, not only " to enact that all notes should be 
 payable on demand^ — but that it was further neces- 
 sary, in order to insure compliance with this enact- 
 ment, to prohibit any one from issuing notes until 
 he has satisfied the government of his ability to pay 
 them." It should also be observed, he said, that in 
 recommending that bankers "be obliged to give 
 security for their issues, we in fact merely propose 
 that a system, already adopted with respect to them, 
 should be carried to its proper length. At present, 
 
 («) Lawson's History of Banking, p. 10. 
 
lii INTRODUCTIOK 
 
 notes of the Bank of England, and of tlie joint- 
 stock and other banks, are proMbited from cir- 
 culating unless tbey be payable on demand; and 
 it is admitted on all kands tkat tkis is a proper reg- 
 ulation. But why is it proper? Because it pre- 
 vents any considerable excess of paper from getting 
 into circulation (w), and kinders it, so long as it 
 continues to circulate, from becoming less valuable 
 tkan gold. It is obvious, kowever, tkat tkis regu- 
 lation is defective in tke most important particular : 
 tke redundancy of paper is not tke only evil to 
 be provided against ; it is equally necessary tkat 
 means skould be taken to prevent tke circulation of 
 wortkless paper ; and tkis cannot be effected by 
 merely ordering notes to be paid on being presented. 
 Suck an order is obeyed only by opulent and re- 
 spectable bankers, and forms no ckeck wkatever on 
 tkose of a different ckaracter. It is, tkerefore, in- 
 dispensable, if we would make tke order really 
 effectual, and prevent tke intention of tke legislature 
 from being defeated and tke public defrauded, by 
 tke misconduct or bad faitk of tkose lOlio issue paper^ 
 to provide a security tkat it skall be complied witk, 
 or tkat notes skall, in every case, be paid wken 
 presented." It was furtker urged by Mr. McCul- 
 lock, tkat it was clear tkat tke " security to be 
 given by a bank of issue, ougkt to be proportioned 
 
 {w) See § 35, p. 38, post ; also § 4, p. Wi, post ; also note 78, pp. 300- 
 805, poHt. 
 
INTRODUCTION. liii 
 
 to its issues^ and not to its capital. The former 
 mode will effectually protect the public from loss — 
 the latter gives little or rather no protection what- 
 ever ; that nothing short of the obligation to give 
 securities for their issues can ever give the public 
 that effectual guaranty for the integrity of the cur- 
 rency that is so essential." (x) 
 
 "What objection," said Mr. Ricardo, in his tract 
 On cm Economical and Secure Currency, " can there 
 be against requiring those who take upon themselves 
 the office of furnishing the public with a circulating 
 medium, to deposit with government an adequate 
 security for the due performance of their engage- 
 ments ? In the use of money every one is a trader : 
 those whose habits and pursuits are little suited to 
 explore the mechanism of trade are obliged to make 
 use of money, and are in no way qualified to ascer- 
 tain the solidity of the different banks whose paper 
 is in circulation ; accordingly we find, that men 
 living on limited incomes, women, laborers and 
 mechanics of all descriptions, are often severe 
 sufferers by the failui*es of banks." 
 
 Bold and reckless speculators may amass fortunes ; 
 
 (k) "A security of this sort has been exacted in the case of the Bank 
 of England; and the whole £14,686,000 sterling lent by the bank to gov- 
 ernment must be sacrificed, before the holders of her notes can sustain the 
 smallest loss. Her stability has, therefore, been truly said, by Dr. Smith, 
 to be equal to that of the British QovernmerU." — (McCulloeh's Diet., art. 
 " Bank of England." 
 
 See Art. 8, § 6, of the Constitution of the State of New York of 1846, 
 pp. 264, 266, post. 
 
lir HTTEODUOTlOlf. 
 
 "but the laboring classes, salaried of&cers, annuitants 
 of every sort, professional men,, medical, legal, and 
 clerical, derive little benefit from the golden tar- 
 vest " caused by a redundancy of the currency, " but 
 always share the full proportion of the reverses 
 which inevitably ensue." (y) 
 
 It was objected to the adoption of the plan of 
 requiring a pledge of securities with the Government, 
 that it would be injurious by locking up a portion 
 of the capital of the banks. " But this," said Mr. 
 McGulloch, " is plainly an error. Its only effect in 
 this respect would be, to force such bankers as issue 
 notes, to provide a sv/pplemental capital as a security 
 over and above the capital required for conducting 
 their business. But this supplemental capital would 
 not be unproductive. If it consisted of land, its 
 owners would receive the rents ; and if it consisted 
 of government securities, they would receive the 
 dividends or interest due upon them, in the same 
 way as other persons." " There cannot be a doubt 
 that this is a case in which Government is bound to 
 interfere. We have sustained incomparably more 
 mischief from the issue of spurious paper than of 
 base coin ; and in order to obviate such mischief 
 in future, and to give that security to the public 
 which is so essential, we have no alternative, if we 
 
 (y) Baker on Banjjs in the tTnited States (Boston), p. 41. 
 
INTRODUCTIOK Iv 
 
 will not entirely suppress country notes, but to re- 
 quire security from the issuers P 
 
 It was also contended by bankers in England, 
 that, except so far as the issue of bills and notes is 
 concerned, banking is a private business, (s) But 
 it was urged, that whatever bank notes were in law^ 
 they were practically and in point of fact a legal 
 tender, and could not be rejected without expos- 
 ing parties to much inconvenience ; that laborers, 
 women, minors^ and every sort of persons, were 
 dealers in money, — were incapable of judging of the 
 stability of banking institutions, and were conse- 
 quently liable to be imposed upon ; and that there- 
 fore it was the imperative duty of Oovernment to 
 interfere to protect the interests of those who could 
 not protect themselves, by compelling all issuers 
 of bills or notes on loan, or for circulation as money, 
 to give ample security for their payment in specie, 
 on demand ; that the issue of notes was, of all 
 businesses, tJiat which seemed to hold out the great- 
 est prospect of success to the schemes of those whp 
 attempt to get rich by preying on the public ; that 
 "if a set of individuals, with little or no capital, 
 contrive by fair appearances, promises, and similar 
 devices, to insinuate themselves into the public 
 
 (s) In ISSY, the legislature of this State repealed so much of the 
 Restraining Act as prohibited a person or associatloa of persons not incor- 
 porated" from keeping offices for the purpose of receiving deposits, — or 
 discounting notes or bills." — (Laws IBS'?, p. 14.) See Note 18, p. 49, post. 
 
Ivi INTRODUCTION. 
 
 confidence, and can maintain £20,000, J660,000, or 
 £100,000 in ciraulation^ they secure a good income 
 in tlie meantime, and when the bubble bursts and 
 the impostui'e is detected, they are no worse off than 
 when they set up the bank. On the contrary, the 
 presumption is, that they are a great deal better 
 off^ — and that they have taken care to provide, at 
 the cost of the creditors and a deceived public, a 
 reserve stock for their future maintenance, (a) 
 
 The legislature of 1837 repealed so much of 
 the Kestraining Act of 1830 as prohibited a person, 
 or association of persons not incoirporated^ from 
 keeping an office for the purpose of receiving de- 
 posits, or discounting "notes or bills ; but left in full 
 force the inhibitions of that act against the issuing 
 of bills, notes or other evidences of debt on loan, or 
 for circulation as money, by any person, or associa- 
 tion of persons. But the repealing act expressly , 
 declared that all the provisions of the Restraining 
 Act, relating to " incorporated companies " or 
 " bodies corporate," remained unrepealed, (w) 
 
 The legislature of 1838, by the general banking 
 law, so far modified the Restraining Act, as to 
 authorize corjporations organized under it, as well 
 
 (a) See MoCuUooh's Essays on Money, and on Paper Money and Bank- 
 ing, Phil, ed., 1851 ; also his Notes on Money to Smith's Wealth of Nations, 
 Edin. ed., 1846, pp. 504 — 507 ; also his Dictionary of Commerce, Amer. ed., 
 1840, and London ed., 1850, — articles, "Banks," "Banking," <fee. 
 
 (mi) Restraining Act, §§ 3, 6, pp. 41, 42, ■post. Repealing Act of 18S7, §§ 
 1 to 4, p. 49, post, and note. 
 
INTRODUCTION. Ivii 
 
 as individual bankers, to issue, " loan and circulate 
 as money " a certain hind of promissory notes, still 
 leaving tlie prohibitions of the Restraining Act in 
 full force as to every other evidence of debt, (x) 
 
 We proceed to state some of the distinctive prin- 
 ciples of the third and, as yet, the latest system of 
 New York Banking, introduced by the General 
 Bank Act of 1838. 
 
 Under the safety fund system of 1829, banks T^^jy,. 
 possessed, with other specified powers, the express *^888^<:o°- 
 power to carry on the business of banking " by issu- 
 ing bills, notes and other evidences of debt," paya- 
 ble on demand and without interest, {y) They 
 had the power to create paper money at pleasure, 
 within the statutory limit as to the amount, (z) 
 
 But the general banking law of 1838 excludes 
 this power from the banking system which it es- 
 tablishes. This is effected; [1] by separating the 
 issue department from the banhing department, and 
 placing the former under the exclusive direction of a 
 
 (x) Chancellor Walworth, in Safford v. Wyckoff (4 Hill, 444), said, " The Act 
 of 1838, which only authorizes a certain kind of notes to be put in circula- 
 tion as money, leaves the restraining law in full force as to every other 
 evidence of debt. These banking associations, therefore, are prohibited 
 from Issuing any bills or promissory notes, or.other evidences of debt, for the 
 purpose of loaning them, — or having them put in circulation as money — 
 whatever forms such evidences of debt may assume." See, also, Warner v. 
 Beers (23 Wendell, 118, 158, 159, 188). 
 
 See §§ 3, 6, of the Restraining Act, pp. 41, 42, post ; also §g 1, 2, 3, 
 General Bank Act, pp. 81, 8i,post. 
 
 (y) See note, 38 pp. 94, 96, post, 
 (z) See § 27, p. 36, post. 
 
Iviii INTEODUCTIOlir. 
 
 State Officer / and [2] by withholding from corpora- 
 tions and individuals organized or acting under the 
 general law, any grant of power to loan or circulate 
 any promissory notes except such, as shall be 
 received from the issue department, countersigned 
 and registered in that department, {a) and bearing 
 on their face the stamp of the government. 
 
 The two systems differ widely in the modes pre- 
 scribed for securing bank issues. Under the system 
 of 1829, the " bank fund " was created solely by 
 an annual contribution of one half of one per cent, 
 (not exceeding ia all tliree per cent.) upon the aggre- 
 gate amount of bank capital. (F) This fund was 
 liable for the payment of all the dehts^ exclusive of 
 capital stock, of any of the safety fund banks that 
 should become iosolvent. (p) 
 
 By the system of 1829, the indemnity fund was 
 limited to a certain sum, and was applicable to the 
 payment of all the debts of insolvent banks exclu- 
 sive of capital stock. 
 
 But by the system of 1838, securities in value^ 
 equal to the full amount of circulating notes^ issued, 
 must be actually transferred to the Issue Depart- 
 ment hefore any such notes can be given out or put 
 
 (o) The first fourteen sections of the general law relate exclusively to 
 issues and to regulations for the creation and government of the Issue De- 
 partment at Albany. See §§ 1 to 15, pp. 81-91, post. 
 
 (6) See §§ 2, 3, i, pp. 29, 30, post. 
 
 (c) See §§ 4, 9, 10, pp. 30, 81, Z%post. 
 
INTRODUCTION. lix 
 
 in circulation ; and these securities are to be held 
 in pledge exclusively for the redemption in specie 
 of such circulating notes, (cc) 
 
 Under the one system, the fund was raised by a 
 small percentage upon capital^ without reference to 
 the amount of issues ; under the other, the fund held 
 in pledge is proportioned to the issues^ without any 
 reference whatever to the amount of capital, {d) 
 
 The monopoly of banking, which had been created 
 by the Kestraining Acts of 1804, 1813, 1818, and 
 1830, was swept away by the general law of 1838. 
 
 Bankiag had become a franchise^ derived only by 
 special grant from the government. Hence, bank 
 charters had become " the motive and the means of 
 corruption." (e) The legislature of 1838 broke up 
 this monopoly by authorizing banking corporations 
 to be organized under a general law. In other words, 
 it was made lawful for any number of persons, 
 without application to the government^ to organize 
 as corporations, for the purpose of "establishing 
 offices of discount, deposit, and circulation," upon 
 the terms and conditions and subject to the liabih- 
 
 (cc) See § 12, p. 90, post. 
 
 (d) As early as 1837, Mr. Lloyd advocatad in England the principle 
 of separating the iuue department from the banking department. But it 
 •was not until 1844 that Sir Robert Peel adopted it (coupled with the 
 pledge of securities), in reference to the Banl{ of England on the renewal of 
 its charter in that year. {Stat. 1 and 8 Vict. u. 32.) See note 29, pp. 
 82, 83, 84, post. 
 
 (e) See 23 Wendell, 186. 
 
Ix INTRODTTCTION. 
 
 ties prescribed by the general law (/), and subject 
 also to all general enactments of tbe State applica- 
 ble to numeyed corporations whicb are not incon- 
 sistent "witb that law. {g) 
 
 By the general bank act, each corporation is 
 authorized, without application to the legislature, to 
 fix for itself its corporate name ; to designate the 
 particular city, town, or village, where its operations 
 of discount and deposit shall be carried on ; to de- 
 termine the amount of its capital, and the number 
 of shares into which it shall be i divided ; to fix the 
 period of its corporate existence ; and to provide by 
 its articles for an increase of its capital, and the 
 number of its associates, from time to time. (Ji) 
 
 Immediately upon the passage of the general bank 
 act of 1838, the question as to its being a consti- 
 tutional law was raised and discussed in the courts. 
 The constitution of 1821 declared that the assent of 
 two thirds of the members elected to each branch 
 of the legislature should be requisite to every bOl 
 "creating, continuing, altering, or renewing any 
 body politic or corporate." (^') 
 
 (/) See § 16, p. 91, post. 
 
 ig) In Talmage v. Pell (3 Selden, 328, 340, 341, 34'?), Gardiner, J., said, 
 "If the legislature intended to authorize the creation of banking corpora- 
 tions, we cannot suppose they designed to provide for a privileged class, 
 by exempting them from restrictions imposed upon all others, and deemed 
 necessary to protect the public and stockholders against the fraud or im- 
 providence of the agents who controlled them." 
 
 (h) See §§ 16, sub. 1, 2, 3, 4, 6, pp. 92, 93, 94, post; and § 20, p. 9%, post. 
 
 {j) See note 11, ■p. 297, post. 
 
INTRODUCTION. Ixi 
 
 Tlie general banking law did not receive sucli 
 assent. It was passed by a majority vote only. The 
 Supreme Court and the chancellor held that asso- 
 ciations organized under the general law were in 
 fact corporations. (Je) 
 
 But the Court of Errors adjudged that they were 
 not bodies politic or corporate witTiin the spirit and 
 meaning of the constitution ' and that the law was 
 constitutionally passed, although it did not receive 
 the assent of two thirds of the members elected to 
 each branch of the legislature. (J) 
 
 Afterwards, the Supreme Court held that they 
 were corporations within the meamng of the Re- 
 vised Statutes (1 R. S. 414, § 1), and like other 
 moneyed or stock corporations, were liable to taxa- 
 tion on their capital, (m) 
 
 * The Court of Errors affirmed the Judgment of the 
 Supreme Court, in Supervisors of JViagara v. The 
 People^ and held that associations under the general 
 banking law were corporations within the meaning 
 of 1 Revised Statutes, 414, § 1. (n) 
 
 It has now been directly and expressly adjudged 
 
 (i) Thomas v. Dakin (23 Wend., 9) ; Willoughby v. Comstock (3 Hill, 389) ; 
 De Bow V. The People (1 Denio, 9) ; Talmage v. Pell (9 Paige Ch. R., 410). 
 
 (/) Bolander v. Stevens (23 Wend., 103) ; Oifford v. Livingston (2 Denio, 
 380). 
 
 (to) Bank of Watertmen T. Assessors of Watertown (25 Wend., 686 ; S. C. 
 1 Hill, 616) The People v. 'Supervisors of Niagara (4 Hill, 20). 
 
 (n) Supervisors of Niagara v. The People (1 Hill, 504). See 1 R. S. 414, 
 § l,p. Hi, post. 
 
Ixii INTRODU0TIOM-. 
 
 by the highest court in the State, thathese a ssocia- 
 tions are not only corporations within the meaning 
 of the tax law (o), but are " moneyed corporations " 
 within the provisions of the Revised Statutes " to 
 prevent the insolvency of moneyed corporations, and 
 to secure the rights of their creditors and stockhold- 
 ers ;" that they are not corporations in a qualified or 
 restricted sense, but are such to all intents and pur- 
 poses ; and that they are bound and affected by all 
 the statutes of this State relating to moneyed cor- 
 porations, except only so far as such statutes are 
 inconsistent with the general banking law.'(p) 
 
 It has also been finally settled by the Court of 
 Appeals that the amendatory statute of May 14th, 
 1840 (g-), is not confined, in its interpretation, .to bills 
 or notes capable of circulating as money, but, in 
 terms, extends alike to all biUs and notes issued by 
 a. banking association ; and that such notes are ille- 
 gal and void, although made payable in London, in 
 British currency (r), or given for State Stocks pur- 
 chased to raise money to redeem lawful counter- 
 signed circulating notes. (4) 
 
 In Tal/mage v. Pell the Court of Appeals also held 
 
 (o) Supervisors of Niagara v. The People (1 Hill, 604). 
 
 {p) Oillet T. Moody (3 Comstook, 479); Talmage y. Pell (8 Selden, 828). 
 
 (?) See Statute of May 14th, 1840, § 4, p. lU, post. 
 
 (r) Leavitt v Palmer (3 Comstock, 19). 
 
 (s) Bank Oommiasioners v. St. Lawrence Bank (8 Selden, 613). 
 
INTRODUCTIOK. Ixiii 
 
 that associations under the general law, have no 
 power to traffic in State Stocks; that they are 
 banking corporations and possess authority only to 
 carry on the business of banking in the manner and 
 with the pow;ers specified in the general banking 
 law. (t) 
 
 Our brief sketch of New- York legislation on the 
 subject of banking covers more than half a century. 
 It shows that two systems of banking, distinct and 
 dissimilar, were successively adopted, tried, and 
 abandoned. The first of these was in force from 
 1791 to 1829. The second lasted from 1829 to 
 1838. Some of their inherent defects and practical 
 evils, have, we believe, been clearly shown. 
 
 That our present system is a vast improvement 
 on its predecessors, none will deny. It has made the 
 business of banking, subject to certain statutory 
 restraints, free to all. It cuts off a once fruitful 
 source of bribery and corruption. And, finally, 
 by its stern provisions in regard to security for all 
 issues, it seems to furnish for the public all needful 
 safeguards. 
 
 The general law of 1838, modified and amended 
 by several later statutes, has now been in operation 
 nearly twenty years. In the main it has worked 
 well. Its leading principle and most valuable 
 feature — that, to wit, which requires ample security 
 
 (t) See §§ 3, 18, and Notes pp. 82, 94, post ; Talmage v. Pell (3 Selden, 
 328), and Bank Commissioners t. St. Lawrence Bank (8 Selden, 613.) 
 
Ixiv INTRODUCTION 
 
 for the redemption in specie of all bank issues — ^has 
 since been incorporated in the fundamental law 
 of the State of New York, {v) The fact that the 
 British Government has also adopted the same prin- 
 ciple, and applied it to the Bank of England, will 
 not weaken our confidence in its value, (w) 
 
 (v) See Constitution of 1846, p. 266, post. See also p. 84, pott, and 
 note, 
 
 {w) See p. 84, post, and note ; also p. liii. ante, note (x). 
 
STA.TTJTES 
 
 OF THE STATE OF NEW YORK 
 
 EMBRACED IN THIS VOLUME. 
 
 Date. Page. 
 
 1782. An Act to prevent the establishment of amy 
 ia/fhk within this State, other tha/n the Bmik 
 
 * of North America, and for incorporating 
 the scmve within this State. 
 
 Passed April 11, 1782. 233 
 
 1804. An Act to resi/ram, vnincorporated hankvng 
 
 * assodations. Passed April 11, 1804. 234 
 
 1804. Exyplanatory Act, April, 1804. 235 
 
 1813. An Act to prevent the passing amd receimng 
 of iamh notes less than the norrmial value 
 
 * of one dolla/r, a/nd to resi/ram, urmicor- 
 porated iamMng associations. 
 
 Passed April 6, 1813. 236 
 
 1816. An Act concerning ianJcs. 
 
 * Passed Nov. 12, 1816. 237 
 
 1818. An Act relative to lamJcs, amd for other 
 
 * fwposes. Passed April 21, 1818. 237 
 
Ixvi NEW YORK STATUTES. 
 
 Date. Foge. 
 
 1824. An Act to prevent tlie ^passing and receivmg 
 * of hank notes, payable otherwise tha/n in 
 
 lawful money of the United States. 
 
 Passed April 12, 1824. 239 
 
 1827. An Act entitled " Of moneyed corpora- 
 tions " (1 E. S., 588) 1 
 
 1827. An Act containing ^^Regulations tojprevent 
 the insolvency of moneyed corj)orations, 
 a/nd to secure the ri.ghts of thei/r creditors 
 and stockholders." (1 K. S., 588.) . . 1 
 
 1827. An Act containing '■'■Regulations concern- 
 ing the election of directors of m,oneyed 
 corporations." (1 E. S., 595.) ... 17 
 
 1827. An Act entitled " Of the construction of 
 this title," (Title 11., 1 K. S., 588 ; 1 E. S., 
 59S.) 23 
 
 1827. An Act entitled " Cf the general powers, 
 privileges, a/nd liaMlities of corporations." 
 (1 E. S., 599.) 24 
 
 1829. An Act to create Oj fund fm' the henefit of 
 
 certain m,oneyed corporations, a/nd for 
 other pwrposes. Passed April 2, 1829. 29 
 
 1830. An Act entitled " Of unauthorised hanking, 
 
 and the circulat'ion of certain 'notes or evi- 
 dences of debt issued hy hanks." (1 E. S., 
 712.) Called the Eesteainins Act. . 39 
 
 1830. An Act entitled " Of proceedings against 
 
 corporations in Equity." (2 E. S., 461.) . 50 
 
 1830. An Act entitled " Of the vdlumia/ry dissolu- 
 tion of corporations" (2 E. S., 466.) . 64 
 
NEW TOEK STATUTES. Ixvii 
 
 ^'"«- Page. 
 
 1830. An Act entitled " Of proceedings hy and 
 against corporations in courts of lam." (2 
 K-S.,457.) 240 
 
 1830. An Act entitled " Megulations concerning 
 ths assessment of taxes on incorporated 
 companies, and the commutation or collec- 
 tion thereof?'' (1 R. S., 414.) . . . 224 
 
 1830. An Act entitled " Of promissory notes and 
 
 hills of exchange:' (1 E. S., 767.) . . 253 
 
 1830. An Act entitled " Of the interest.of money?'' 
 
 (IKS., 771.) 260 
 
 1830. An Act concerning hcmk notes. 
 
 Passed April 17, 1830. 75 
 
 1832. An Act to prevent the abatement of suits ly 
 or against corporations, in certain cases.. 
 
 Passed April 26, 1832. 230 
 
 1835. An Act to amend the act entitled, " An Act 
 to create a fund foi' the benefit of the 
 creditors of certain moneyed corporations, 
 and for other pu/rposes" passed April 2, 
 1829. Passed May 11, 1835. 77 
 
 1835. An Act in relation to bills of exchange and 
 promissory notes. 
 
 Passed April 23, 1835. 258 
 
 1837. An Act to repeal in part theUemsed Stat- 
 utes relating to vna/uthorised banking, and 
 the circulation of certai/n notes or evidences 
 of debt issued by banks. 
 
 Passed February 4, 1837. 49» 
 
 1837. An Act to prevent usury. 
 
 Passed May 15, 1837. 262 
 
Pagj. 
 
 Ixviii SEW TOBK STATUTES. 
 
 Date. 
 
 1838. An Act to avtfwrize the, husmess oflcmTcmg 
 {as originally passed, with notes). 
 
 Passed April 18, 1838. 81 
 
 1838. Ak Act to authorize the husmess of tanking 
 
 {as altered Try subsequent legislation). . 211 
 
 1839. Ak Act concerning foreign hank notes. 
 
 Passed May 7, 1839. 107 
 
 ISIO. An Act relating to the redemption of lank 
 
 notes. . Passed May 4, 1840. 109 
 
 1840. Ax Act: to amend the Act, entitled " An Act 
 
 to authorise the business of banking." 
 
 Passed May 14, 1840. 113 
 
 1540. Ax Act to amend the Memsed Statutes in 
 
 relation to proceedings against ahsemt debt- 
 ors and foreign corporations. 
 
 Passed May 14, 1840. 245 
 
 1 841. An Act to amend the Act entitled " An Act 
 
 to authorize the business of banking" 
 passed April IS, 1838. 
 
 Passed March 15, 1841. 1 
 
 1 
 
 1841. An Act respecting suits and legal proceed- 
 ings by or against banking associations. 
 
 Passed March 16, 1841. 125 
 
 1541. An Act respecting the appointment of re- 
 * ceivers of moneyed institutions. 
 
 Passed April 27, 1841. 127 
 
 1841. An Act to amend the Ad entitled " An Act 
 to auihori^< the business qfbankingJ" 
 
 Passed May 26, 1841. 129 
 
NEW YORK STATUTES. Ixix 
 
 Date. pjgg 
 
 1842. An Act to repeal cm act entitled '■'■An Act 
 respectmg the appointment of Recevoers of 
 moneyed institutions,'''' passed April 27, 
 1841, a/nd to limit the oornpensation of 
 recei/vers. Passed January 22, 1842. 134 
 
 1842. An Act respecting receivers appointed h/ 
 the iank commission&rs, under the act 
 entitled " An Act respecting the appovnt- 
 ment of receivers of moneyed institutions'^ 
 passed April 27, 1841. 
 
 Passed April 11, 1842. 135 
 
 1842. An Act to amend the lam in, relation to swits 
 
 agai/nst foreign corporations. 
 
 Passed April 11, 1842. 247 
 
 1843. An Act to abolish the office of bcmJc com- 
 
 missioner, and for other purposes. 
 
 Passed April 18, 1843. 136 
 
 1844. Ak Acr to amend the act, passed April 18, 
 
 1838, entitled " An Act to authorise the 
 business of ianhing." 
 
 Passed March 16, 1844. 142 
 
 344. An Act to amend the act passed May 14, 
 1840, ^^ An Act to amend the act entitled 
 am, act to authorize the iusiness of ha/rik- 
 ingP Passed May 6, 1844. 142 
 
 1845. An Act relatme to pwchasers at recevvers' 
 
 sales. Passed April 24, 1845. 144 
 
 1845. An Act in relation to the powers of re- 
 oei/vers and com/mittees of Vwnatics and 
 habitual drimka/rds. 
 
 Passed April 28, 1845. 145 
 
 / 
 
Ixx NEW YORK STATUTES. 
 
 Date. Pa«e. 
 
 1845. An Act vn relaUon to stocks in moneyed 
 corporations held lyy the State, or iy 
 liter a/ry or chwritahle i/nst/itutions. 
 
 Passed May 13, 1845. 231 
 
 1845. An Act to amend the la/w in relation to 
 sv/lts aga/mst foreign corporations. 
 
 Passed May 13, 1845. 249 
 
 1847. An Act concerning the election of directors 
 of lya/nking associations. 
 
 Passed April 29, 1847. 146 
 
 1847. An Act to a/mend an act to abolish the 
 office of hank cormrdssioner, amd for 
 other pwrposes, passed April 18, 1843. 
 
 Passed Dec. 4, 1847. 146 
 ■ Three fifths being present. 
 
 1847. An Act to repeal section fwe of the act 
 
 entitled "An Act to amend an act to 
 abolish the office of hank comrrvissioner, 
 amd for other pv/rposes, passed Dec. 4, 
 1847." Passed Dec. 13, 1847. 151 
 
 1848. An Act a/mendatory of the act entitled, "An 
 
 Act OMthorizing the husiness of hanking^'' 
 passed April 18, 1838, a/nd the acts a/mend- 
 vng the sa/me. Passed April 12, 1848. 152 
 
 1848. An Act to amend the act embitled "An Act 
 
 to a/mend the law in relation to suits 
 against foreign corporations. 
 
 Passed February 21, 1848. 251 
 
 1849. An Act to OMthorize the comptroller to issue 
 
 regist&red notes in lieu of un/registered 
 ones, i/n certain cases. 
 
 Passed March 12, 1849. 154 
 
NEW YORK STATUTES. Ixxi 
 
 Date. Page. 
 
 1849. An Act to enforce the responsibility of 
 stockholders in certcmm ha/nhi/ng corpora- 
 tions and associations, as prescribed by 
 the constitution, and to provide for the 
 ■prompt pa/yments of dema/nds agcmvst such 
 corporations and associations. 
 
 Passed April 5, 1849. 155 
 
 1849. An Act a^nendatory of the act entitled " An 
 Act to authorize the business of bamJcing," 
 passed April 18, 1838, a/nd the acts cmiend- 
 itig the same. Passed April 10, 1849. 170 
 
 1849. An Act to a/mend cm CKt relative to wn- 
 clcmned bank dmidends cmd deposits, 
 passed Man/ 9, 1835, a/nd for other pv/r- 
 poses. Passed April 11, 1849. 173 
 
 1849. An Act to extend the remedies at lam agcmist 
 foreign insurance companies. 
 
 Passed March 16, 1849. 252 
 
 ^) 
 
 1849. An Act to designate the holidays to be 
 
 observed in the aocepta/nce a/nd pa/yment 
 of bills of excJumge a/nd promissory 
 notes. Passed April 4, 1849. 259 
 
 1850. An Act to am,end the act entitled, '•'■An Act 
 
 to a/mend the act entitled cm act to author- 
 ize the business of bcmMng," passed Ma/y 
 14,1840. Passed April 10, 1850. 174 
 
 1850. An Act to provide for a final distribwbion 
 of the funds held by the compl/roller, 
 belonging to the creditors of insol/oe/nt ba/nks 
 amd bankers. Passed April 10, 1850. 175 
 
 1850. An Act to prohibit corporations from inter- 
 posing tlie defence of u,sury in amy action. 
 
 Passed April 6, 1850. 264 
 
Ixxii NEW YORK STATUTES. 
 
 Date, Page. 
 
 1851, An Act to cmiend the act erdAtled;'-'- An Act 
 to authorize the Jmsiness of hcmking" 
 passed Mmj 26, 1841. 
 
 Passed March 29, 1851. 177 
 
 1851. An Act to orga/rvize a hamJc d&parl/ment. " 
 
 Passed April 12, 1851. 178 
 " Three fifths being present." 
 
 1851. An Act to a/mend the several acts relatwig to 
 
 incorporated ha/riks, ianking associa- 
 tions, and individual 'bamkers. 
 
 Passed April 17, 1851. 186 
 
 1862. An Act to amend sect/ion sixteen of chapter 
 nine of title two of pa/rt one of the 
 Revised Statutes. Passed April 16, 1852. 191 
 
 1852. Conawrrent resoluUon. March 4, 1852. 191 
 
 1852. An Act to facilitate the. collection of debts 
 
 against corporations. 
 
 Passed March 19, 1852. 232 
 
 1853. An Act to a/mend an act entitled "An Act 
 
 concerning foreign ha/nh notesP 
 
 Passed April 13, 1853. 193 
 
 1853. An Act relating to incorporated hanks, lam,k- 
 
 vng associations, a/nd i/ndimidual hamhers 
 located a/nd doing Imsi/ness in the city of 
 New York. Passed April 15, 1853. 195 
 
 1854. An Km for the withd/rawal of the ci/rcvlat- 
 
 ing hills of incorporated hanks, whose 
 charters home expired, or ma/y hereafter 
 " expire. Passed April 3, 1854. 197 
 
NEW YORK STATUTES. Lsxiii 
 
 Date, Page. 
 
 1854:. An Act direeting the copies <md certificates 
 of association of banks to he transferred 
 from the secreta/ry's office to the ha/nhmg 
 de/pa/rtmMht. Passed April 10, 1854. 199 
 
 1854, Ak Act a/mendatory of the act entitled ^'■An 
 
 Act cmthorizi/ng the business of hanhmg" 
 passed April 18, 1838, a/nd the acts amend- 
 ing the same. Passed April 15, 1854. 200 
 
 1855. An Act to amend the act entitled " An Act 
 
 to enforce the responsibility of the stock- 
 holders in certain banking incorporations 
 and associations, as prescribed by the 
 constitution, and to provide for the prompt 
 payment of demam,ds against such cor- 
 porations a/nd associations," passed April 
 5, 1849. Passed March 15, 1855. 205 
 
 1855. An Act repealing the act prohibitory of the 
 circulation of the bills of banks not char- 
 tered by the laws of thds State, under the 
 denomination of fvoe dolla/rs. 
 
 Passed March 27, 1855. 206 
 
 1855. An Act to provide for the pwnishmemt of 
 thefroMdident a/ndwnoMthorized issue and 
 tra/nsf&r of the stock amd bonds of corpora- 
 tions a/nd joi/nt-stock compamAes. 
 
 Passed April 5, 1855. 207 
 
 1857. An Act to amend the act to organize a ba/nk 
 depa/rtment, passed April twelfth, eighteen 
 hundred artd fifty-one, and prescribing the 
 powers and duties of the superintendent. 
 
 Passed March 14, 1857. 208a 
 
 /* 
 
Ixxiv NEW YORK STATUTES. 
 
 Date. Paffe. 
 
 1857. An Act in relation to ianks, imiking asso- 
 ciations, indi/oidual ladkers, am,d the lamk , 
 depa/rtment. Passed March 28, 1857. 208o 
 
 1857. An Act to provide for the final closi/ng of 
 incorporated ianhs, continuing the busi- 
 ness of hanking vm,til the expiration of 
 their cha/rters. Passed April 13, 1857. 208i 
 
 1857. An Act in relation to the assessment of 
 taxes on incorporated companies. 
 
 Passed April 15, 1857. 208A 
 
 1857. An Act to amend the laws relative to bank- 
 
 ing, and to prevent the improper retention 
 of the notes of country banks. 
 
 Passed April 30, 1857. 208m 
 
 1858. An Act to restrain banks, banking institu- 
 
 tions and individual bankers from assu/m- 
 ing the title of sa/oings banks, or receiving 
 deposits as such. Passed April 9, 1858. 208o 
 
 1859. An Act in relation to the bank department. 
 
 Passed April 11, 1859. 208j? 
 
 1859. An Act to provide for the reduction of the 
 capital stock of banking associations. 
 
 Passed April 13, 1859. 208;; 
 
 1859. An Act to amend ^^An Act to enforce the 
 responsibility of stockholders in certain 
 banking associations," passed April fifth, 
 eighteen hundred and forty-nine. 
 
 Passed April 15, 1859. 208« 
 
 1862. An Act to authorize the incorporated banks 
 of the State to take and Jwld any stock of 
 the United States, or of the State of New 
 York. Passed March 27, 1862. 208a7 
 
NEW YORK STATUTES. IxxY 
 
 B»te. Page. 
 
 1862. As Act to provide for the G&nsoUdation of 
 
 hanking associations. 
 
 Passed April 22, 1862. 208a! 
 
 1863. An Act to a/mend am, act entitled ^'•An Act 
 
 to autJwrize the business of ha/nhvng" 
 passed April eighteen, eighteen hund/red 
 and thirty-eight. Passed March 4, 1863. 2085J 
 
 1863. An Act in relation to the taxation of man- I 
 
 eyed corporations a/nd associations. 
 
 Passed April 29, 1863. 208cc 
 
 1863. An Act to amend the hanking la/ws of this 
 
 State. . ' Passed April 29, 1863. 20Sdd 
 
 1863. An Act to amend an act entitled "An Act 
 to enforce the responsihiUly of stockholders 
 in certain hanking corporations and asso- 
 ciations as prescribed by the constitution, 
 a/nd to provide for the prompt payment of 
 demands against such corporations a/nd 
 associations,^^ passed April fifth, eighteen 
 hundred and forty-rm/ne. 
 
 Passed May 2, 1863. 208ee 
 
 Note. — The acts designated by a * in the margin of the foregoing list 
 are obsolete, or have been repealed. 
 
TABLE OF CASES 
 
 DIICIBED BT THE 
 
 COURTS OF THE STATE OF KEW YORK, 
 
 RELATING TO THE 
 
 GENERAL BANE ACT OF 1838, AND ACTS 
 AMENDATORY THEREOF. 
 
 Names al Cases. Beporte. Pages, this ToL 
 
 Arnold v. The Suffolk Bank. . 21 Barb., S. C. R., 424 . 330 
 
 Assmors of ^atertown {Pec^ t.) | ^^ Hj^'^'ie*® ' ' i 804, 306 
 
 Sank of Ama (Jtobmson v.) . 21 N. Y. Rep., 406 . . 350 
 
 Sank of Attiea -v. Manufacturers and) nn-m v -o em o.<q 
 
 Trader^ Sank. . . j- 20 JN. Y. Kep., 501 . 349 
 
 Sarik Commissioners v. St. Lawrmee ( 8 Barb. S. C. R., 430 ) „„„ „oo 
 
 Sank ■j 3 Selden, 613 \ ^^^' **''^ 
 
 Bamk of ChUlicothe v. Do^e. . 8 Barb., S. C. R., 233 . 818 
 
 Sank of DansvQle, In the matter of. 6 Hill, 370 . . 811 
 
 Bank of New York (lAvingston v.) 26 Barb., S. C. R., 304 . 340 
 
 Sank of Orleans Y. Merrill. . 2 Hill, 296 . . 306 
 
 Bank of Sing Sing (Zeggett v.) 24 N. Y. Rep., 288 . . 365 
 
 Bank of Watertown, People ex, rel. v. ( 25 Wend., 686 . ) 
 
 Assessors of Watertown. . \ 1 Hill, 616 . \ °^' ^^° 
 
 Barnes v. Ontario Bank. . 19 N. Y. Rep., 162 . 846 
 
 Beers (Warner Y.) . . . 23 Wend., 103 . . 298 
 
 Beers (Swift v.) . . 3 Denio, 70 . . 813 
 
 Blatchford (Leavitt v.) . , 5 Barb., S. C. R., 9 . 315 
 
 Blunt y.MarHn . . _ \ ^ot reported . . . 314 
 
 ^tZ^y.^: ^ ^- ^ ^""^^'^^l 2 Sand. Ch. R., 23 . 811 
 
Reports. 
 
 Pages, this vol. 
 
 23 Wend., 103 . 
 
 298 
 
 19 N. Y. Rep., 246 . 
 
 . 347 
 
 11 N. T. Eep., 507 
 
 342 
 
 25 N. Y. Rep., 163 . 
 
 367 
 
 t ;6 N. Y. Rep., 125 
 
 340 
 
 1 Denio, 620 i . 
 
 312 
 
 1 Sand. S. C. R., 693. 
 
 99« 
 
 24 N. Y. Rep., 548 
 
 355 
 
 31 Barb., S. C. R., 84 . 
 
 . 348 
 
 17 N. Y. Rep., 607 
 
 342 
 
 18 N. Y. Rep., 240 . 
 
 . 345 
 
 19 N. Y. Rep., 37 . 
 
 346 
 
 25 N. Y. Rep., 163 
 
 . 357 
 
 23 N; Y. Rep., 192 
 
 3S3 
 
 TABLE OF CASES. Ixxvii 
 
 Names of Oases. 
 Bola/nder v. Stevens. 
 
 Bradley {International Sank v.) 
 
 Bruee {aty Bank of Colvmbus v.) 
 
 Buffalo GUy Bank v. Oodd. 
 
 Butchers amd Droveri Bank (Farm- \ 
 en and Medhamusi Bank of Ken 
 Oo.y.) 
 
 Campbell {OUlet y.) 
 
 Case y. MecTumics' Bk. Assoeia&m 
 
 Chittenango Bank {JEhle v.) . 
 
 Church (Perkins v.) 
 
 C% Bank of Columbus v. Bruce. 
 
 Codd (Sacketts Harbor Bank v.) 
 
 Codd V. BcUhhone. 
 
 Codd (Buffalo City Bank v.) 
 
 Cmrniir of Taxes (People v.) 
 
 Comm'r of Taxes (People, ex rel. \ „,, -r.,!, <j p p ror orb 
 
 HanmerBanky.) . ^ 37 Barb., S. C. R., 636 366 
 
 Gmmtock (WHlmighlnf y.) . 3 HUl, 389 . . .308 
 
 CrandaU ( VaXk v.) . . 1 Sand. Ch. R., 179 . 310 
 
 CurHs y. LeamM, and Leamtt y. Curtis ) 
 & Blatchford (MUlion and Mrst [• 17 Barb., S. C. R., 309 . 323 
 
 Half Million Trust Case) . ) 
 
 Ouyler d> Sexton y. Simdford. . 8 Barb., S. C. R., 225 319 
 
 Dakin (Thomm y.) . . 22 Wend., 9 . . 297 
 
 J)e Bow y. The People . . 1 Dehio, 9. . . 312 
 
 Delafield y. Kinney. . . 24 Wend., 345. . 299 
 
 Dodge (Bank of CMllicothe v.) . 8 Barb., S. C. R., 233 . . 318 
 
 Dodge (MweU v.) . . 33 Barb., S. C. R., 336 . 353 
 
 Dtd)ois (Sagory y.) . . .3 Sand. Ch. R., 466 . . 313 
 
 JEUe y. Chittenango Bank. . 24 N. Y. Rep., 648 . 365 
 
 Mwell V. Dodge. . . .33 Barb., S. C. R., 336 . 363 
 
 My y. ^ague. . . 1 Qarke, Ch. R., 361 . 299 
 
 Mcehange Bank v. Monteath. . 26 N. Y. Rep., 606 . . 369 
 
 farmers and M!echamcs' Bank of\ 
 Kent Co., Md., y. the Butchers <fc {• 16 N. Y. Rep., 126 . 340 
 
 ■i\. 
 
 Drover^ Bank. 
 
 ^"Zdy f ""'^ "f^'"^'' ^''- (^'"•- [ 26 Barb., S. 0. R., 668 . 341 
 
 ^"B^f yf"^ "■^ ^^' ^^ ^^°' \ 26 I^- Y. Eep., 460 . 368 
 
Ixxviii 
 
 TABLE OF CASES. 
 
 Names of Cases. 
 Oifford V. lAvingsUm. 
 
 &Uletv. Camjobell. 
 
 CHlletv. Moody. 
 
 Gillet V. PMUpi. 
 Griffin {Leavitt v.) 
 
 Reports. Pages, this vol. 
 
 2 Denio, 380 . . 312 
 
 1 Denio, 520 . . 312 
 
 j 6 Barb., S. C. E., 186 » ,„ „ 
 
 \ 8 Comatock, 479 \ ^^*' **''" 
 
 3 Keman, 114 . . 323, 328 
 3 Sand., Oh. R., 170 {note a) 318 
 
 Hwima (Bhmt v.) 
 
 Not rymrted. 
 
 
 1n.i 
 
 HoUkter Bank (In matter of) 
 
 23 N. T. Rep., 508 
 
 . 
 
 364 
 
 Hunt V. Van Alstyne. . 
 
 26 Wend., 605 
 
 
 306 
 
 Hvmt {Nwth Amer. Trust ami Sank- 
 ing Co. v.) 
 
 [ iVbi riported. 44, 
 
 , 45, 46, 
 
 4'7, n. 
 
 Intematkmal Bank v. Bradley. 
 
 19 N. Y. Rep., 245 - 
 
 
 347 
 
 Kinney (Delafield v.) 
 
 24 Wend., 345 
 
 
 299 
 
 Zami {Seneca Go. Bank v.) . 
 
 26 Barb., S. C. R., 695 
 
 , 
 
 341 
 
 Lawrence {Palmer v.) 
 
 1 Selden, 389 
 
 . 
 
 321 
 
 LeavUty. Tylee. 
 
 1 Sand., Ch. R., 207 
 
 
 311 
 
 leavitt V. Griffin. 
 
 3 Sand., Ch. R., 170, (w,ni!p a) 
 
 813 
 
 Leavitt v. Yates. 
 
 4 Edw., Ch. R., 134 
 
 
 314 
 
 Leavitt v. Blatchford. 
 
 5 Barb., S. C. R., 9 . 
 
 , 
 
 315 
 
 Leavitt v. Blatchford {Second Half 
 MiUion Trust Case) 
 
 ■ J!fbt reported in Supreme C(nirt. 
 
 327 
 
 Leavitt v. Palmer. 
 
 3 Comstock, 19 
 
 
 317 
 
 Leavitt v. Blatchford, Our&s et al ) 
 {Million and Mrst Half Million }■ 17 Barb., S. C. R., 309 
 Trust Case) . . ) 
 
 Leavitt v. Curtis and CurUs v. Lea- ) 
 vitt {Million and Mrst Half Million 1- 1 5 N. Y. Rep., 9 
 Trust Case). Original <md cross svit. ) 
 
 "^rl: 2^;'S ^^""' ^"'-^1 '' ^- ^- ^^p-' ''' 
 
 Leggett v. B<mk of Sing Sing. . 24 N. Y. Rep., 283 
 
 Livingston v. The Bank of New York. 26 Barb., S. C. R., 304 
 
 lAvingston {Gifford y.) . 2 Denio, 880 
 
 Manufacturers and Trader^ Bank ) „„ ht -o- t. 
 {Bank of Attica y.) . . ^ 20 N. Y. Rep., 601 
 
 Martin {BUmt Y.) . . Not reported. . 
 
 Mayor of Tray v. The Mutual Bank. 20 N. Y. Rep., 387 
 
 McBride v. The Farmers' Bank of ) „„ -k, -^ y, . ,„ 
 Salem. Ohio. . . / [ 26 N. Y. Rep., 450 
 
 Meads v. 7%« Merchants? Bank of AU I. ok w y R ^A<^ 
 bony. . . . ; ' ' 
 
 Merrill {Bank of Orleans v.) . 2 Hill, 295 
 
 . 331 
 
 343 
 
 . 355 
 
 340 
 
 . 312 
 
 349 
 
 7 note 4 
 348 
 
 . 368 
 
 357 
 . 306 
 
TABLE OF CASES. Ixxix 
 
 Names of Cases. Eeports. Pages, this vol. 
 
 Montealh (Exchange Bank v.) 26 IT. Y. Rep., 605 . . 369 
 
 Moo,y (Omt ..) . . \l a4V,; 1«« \ 315. 320 
 
 ""tlla ^. ^""^^ ^J"' "-^i 2« Barb., S. 0. R., 668 . 341 
 
 Mutual Bamh {Mayor of Troy y.) 20 N. Y. Rep., 38Y . 348 
 
 N.Y.B<mkmgCo.{Bowgerardy.) 2 Sand., Ch. R., 23 . . 311 
 
 North Americam, Trmt and SanMnq ) w t ^ i j ^, ,u ^ 
 
 Co.v.Hma. . . "l^^ot reported. . UrAI note. 
 
 OHver Zee <h Oo.'sBank (In matter of) 21 N.Y. 'Rep., 9 . . 349 
 
 Oneida Bank v. Ontario Bank. 21 N. Y. Rep., 490 . 351 
 
 Ontario Bank (Barnes v.) . 19 N. Y. Rep., 152 . . 346 
 
 Oniario Bank (Oneida Bank v.) 21 N. Y. Rep., 490 . 351 
 
 Falmer v. Yates. . . 3 Sand., S. C. R., 137 . 316 
 
 JPalmer (Zeavitt y.) . . 3 Comstock, 19 . . 317 
 
 Palmer y. Zawrence. . . 1 Selden, 389 . . 321 
 
 Park Bank v. Wood. . . 24 N. Y. Rep., 93 . 354 
 
 ' V. Tenth Ward Bank. 3 Edw., Ch. R., 395 . 299 
 
 Patehin v. Bitter. . . 27 Barb., S. C. R., 34 . 342 
 
 Pell (Talma^e v.) . . . { ^ ^^^^'^^^ ^^^ J 298, 317, 321 
 
 People V. Comm'r of Taxes, &c. 23 N. Y. Rep., 192 . . 353 
 
 People,exrel. Hanover Bamk,x. Com r) „f,-c,„„\, a n -o cqk oec 
 
 0/ Taxes, dbe. . . S ' ' " 
 
 People, ex rel. Bank of Wateriown, t. ) 25 Wend., 686 ) „_ . „-- 
 
 Assessors of Watertown. f 1 HiU, 616 ) **"*' **"' 
 
 People V. Supervisors of Niagara. ■! ^ -mj,' g„^ [ 309, 311 
 
 People (Be Bow v.) . . 1 Denio, 9 . . 312 
 
 People V. Walker. . . .21 Barb., S. C. R., 630 . 328 
 
 PerUns v. Church. . . 31 Barb., S. C. R., 84 . 348 
 
 Phillips (Oillet\.) . . 3 Kern., 114 . .323,328 
 
 Bathbone (Codd -v.) . . 19 N. Y. Rep., 37 . . 346 
 
 _ . .^ D , /r „ ^\ (29 Barb., S. C. R., 369 ) „.„ „„„ 
 
 Beeiprodty Bank (In matter of ) j 22 N Y Rep 9 C 346,362 
 
 Bitter (Patehin v.) . . 27 Barb., S. C. R., 34 . 342 
 
 Bobinson Y. Bank of Attica. . 21 N. Y. Rep., 406 . . 360 
 
 Sacketts Harbor Bank v. Codd. 18 N. Y. Rep., 240 . 345 
 
 SaffordY.Wyckoff. . . {{^,^1 ' . \ ^^^'^^^ 
 
Ixxx 
 
 TABLE OF CASES. 
 
 Names of Cases. 
 S<fgory v. Ihibois. . 
 Sandford (Cuyler <fc Sextm v.) 
 Schermerhorn v. Talman. 
 Seneca Co. Bank v. Lamb. . 
 Smith V. Strong. 
 Spragiie (Ely v.) . 
 
 State of Ohio v. LeamM {See Talmage ] 
 v.Rill). . . . ] 
 
 Stevens (Bolander v.) 
 
 iS. Lawrence Bank {Bank Corn's v.) 
 
 Strong {Smith v.) . 
 Suffolk Bank' {Arnold v. ) 
 Supervisors of Niagara {7%e Peo- 
 
 Reports. 
 3 Sand., ,Ch. R., 466 
 
 8 Barb., S. C. E., 225 
 
 14 N. Y. Eep., 93 
 
 26 Barb., S. C. B. 596 
 
 2 HiU, 241 
 
 1 Clarke, Ch. B., 351 
 
 3 Selden, 328 
 
 23 Wend., 103 
 
 1 8 Barb., S. C. R., 430 
 I 3Selden, &13 [ 
 
 2 HiU, 241 
 
 27 Barb., S. C. B., 424 
 
 pie T.) 
 
 V. Beers. . 
 
 ■e V. Pdl. 
 
 T(dmage{Tracyv.) Indiana Case, 
 lalman {Schermerhorn v.) 
 Tenth Ward Ba/ak {Parmly v.) 
 Thomas v. Dakin. 
 
 Tract/ V. Talmagie {ImMama ease). 
 
 Th/lee V. Yates. 
 
 Th/lee {Leavitt v.) 
 
 United States Trust Compamy v. 
 United States Fire Insurance Co. 
 
 Valk v. Crandcdl. 
 
 Van Alstyrw {Ewnt v.) 
 
 Walker {The Pecple v.) 
 
 Warner v. Beers. 
 
 Watertown, Assessors of {People, exrel. 
 Bank of Wdertovm, v.) 
 
 WitUyughhy v. Comstock. . 
 
 Wood {Park Bank v.) . 
 
 Wyckoff {Safford v.) 
 
 Tales {7h/lee Y.) . 
 Yates {Lea/oitt v.) 
 Yates {Palmer v.) . 
 
 4 Hill, 20 1 
 1 HiU, 504 f 
 
 3 Denio, 10 
 
 ( 9 Paige, Ch. R., 410 ) 
 ( 3 Selden, 328 J 
 
 18 Barb., S. C. E., 456 
 
 14 N. T. Eep., 93 
 
 3 Edw., Ch. R., 395 
 
 22 Wencl., 9 . 
 
 ( ISBarb., S.C. E., 456] 
 ( 14 N. Y. E6p., 163 j 
 
 3 Barb., S. C. R., 222 
 
 1 Sand., Ch. E., 207 
 
 [ 18 N. Y. Rep., 199 
 
 1 Sand., Ch. R., 179 . 
 
 25 Wend., 605 
 
 21 Barb;, S. C. R., 680 
 
 28 Wend., 103 
 
 ( 25 Wend., 686 ) 
 ( 1 HUl, 616 . y 
 
 3 HUl, 389 
 
 24 N. Y. Rep., 93 
 
 j 1 HiU, 11 ) ~~ 
 1 4 HUl, 442 ) 
 
 3 Barb., S. C. R., 222 
 
 4Edw. Ch. R., 134 
 
 3 Sand., 137 
 
 Pages, this tqL 
 313 
 319 
 
 341 
 308 
 299 
 
 317, 321 
 
 . 298 
 
 i 320, 322 
 
 308 
 330 
 
 309, 311 
 
 313 
 
 298, 317, 321 
 
 327, 330 
 329 
 299 
 
 . 297 
 
 [ 327, 330 
 
 . 315 
 311 
 
 348 
 
 . 310 
 306 
 328 
 
 . 298 
 
 • 304, 306 
 
 308 
 . 364 
 
 300, 309 
 
 315 
 814 
 316 
 
GENERAL STATUTES 
 
 APPLICABLE TO 
 
 BANKING CORPORATIONS, 
 
 OKGANIZED UNDER THE 
 
 REVISED STATUTES. 
 
 CHAP. XYIII. PAET I. TITLE II. (1 E. 8. 588.) 
 
 ENACTED m DEC, 182'r : TOOK EFFECT JAN. 1, 1828. 
 •(2 H. S. Appendix, p. 775^776, § 5.) 
 
 TITLE II. 
 
 OF MONEYED COEPORATIONS. (1 H. S. 588.) 
 ART. I. — Regulations to prevent the insolvency of moneyed 
 
 CORPORATIONS, AND TO SECURE THE RIGHTS OE THEIR 
 CREDITORS AND STOCKHOLDERS. 
 
 ART. II.— Regulations concerning the election of directors 
 
 OF MONEYED CORPORATIONS. 
 
 ART. III. — Of the construction of this Title. 
 
 AETIOLE FIEST. 
 
 Regulations to prevent the Insolvency of Moneyed Corporations, and 
 to secure the Rights of their Creditors and Stockholders. 
 
 Seo. 1. Restrictions and prohibitions upon moneyed corporations. 
 
 2. Unpaid interest due, not to be calculated as profits for purpose of a 
 
 dividend. 
 
 3. How surplus profits to be ascertained, from which dividend is to be 
 
 made. 
 
 4 Amount of losses exceeding undivided profits, to be charged to cap- 
 ital, <&c. 
 
 6. When loans exceed three times amount of capital, excess to be 
 called in. 
 
 6. In what cases stock pledged to be sold and charged as reduction of 
 capital. 
 
 1 
 
2 GENERAL STATUTES APPLICABLE TO 
 
 1. Conveyances of effects for use of a corporation, must be directly to it ; 
 except, &c. 
 
 8. Property of corporation worth more than |1,000 not to be conveyed 
 
 without resolution of board. 
 
 9. Conveyances in contemplation of insolvency, void. 
 
 10. (fell. Penalty on directors for violating preceding sections. 
 12. & 13. When directors to be charged -with knowledge of affairs of 
 the corporation. 
 
 14. When insolvencies of moneyed corporations to be deemed fifaudulent. 
 
 15. Liability of directors, by whose acts fraudulent insolvencies occa- 
 
 sioned. 
 
 16. Liability of stockholders in cases of fraudulent insolvency. 
 ] 7. Liability, in such case, of persons who transferred stock. 
 
 18. Construction of the term " stockholder;" 
 
 19. Corporations to transmit to comptroller, statement of their affairs 
 
 annually. 
 
 20. <fe 21. Matters to be set forth in such statement. 
 
 22. Penalty for not transmitting statement. 
 
 23. Comptroller to enter statement in a book, which is to be open to pub- 
 
 lic inspection. 
 
 24. Comptroller to report to the legislature violations of the charter or 
 
 of this Titie. 
 
 25. Forms of statemertts to be prepared by comptroller and transmit- 
 
 ted, ifec. 
 
 26. Banks not to issue bills for less than one dollar. 
 
 27. Penalty on banks and their officers for buying their own notes in cer- 
 
 tain cases. 
 
 28. Officers, <fec. of banks not to discount notes offered to bank and re- 
 
 jected. 
 
 29. Moneyed corporations not to commence business until stock is paid in. 
 
 30. Affidavit of the fact to be made, and where filed. 
 
 31. Charter void, if within a year after it was granted affidavit be not 
 
 filed, (See notes 1 <fc 2.) 
 
 EeatrictionB ^ ^- ^^ shall not be lawful for the directors of any mon- 
 r,?eoTorr'eyed corporation,- 
 
 (1) In October, 1852, the Court of Appeals, in the case of Talmage v. Pell 
 (3 Selden, 828-348), hdd, — " that eveiy association organized under the act 
 to authorize the business of banking, and the acts amending the same, is a 
 moneyed corporation within the meaning of the statutes of this State relating 
 to moneyed corporations, and is bound and affected by those statutes, except- 
 ing only so far as such statutes arc inconsistent with the provisions either of 
 the act to authorize the business of banking or the acts amending the same.'' 
 
 (2) In July, 1850, the Court of Appeals, in GUlet y. Moody (3 Comstock, 
 479-488), AeW, — that banking associations, organized under the general bank- 
 
BANKING CORPORATIONS. 3 
 
 1. To make dividends, except from tlie surplus profits gg^^^''^^^'!' 
 arising from tlie -business of the corporation : 
 
 2. To divide, withdraw, or in any manner pay to the 
 stockholders, or any of them, any part of the capital stock 
 of the corporation ; or to reduce such capital stock with- 
 out the consent of the legislature : 
 
 3. To discount or receive any note or other evidence 
 of debt, in payment of any installment actually called in 
 
 ing law, are moneyed corporations, and as such, are within the statute " to 
 prevent the insolvency of moneyed corporations, and to secure the rights of their 
 creditors and stockholders." 
 
 " In the third place," says Gakdinek, J., in Talmage v. Pell, "this asso- 
 ciation, as a banking corporation, was subject to all general laws relating to 
 that class of corporations, except in so far as those laws, or some of their par- 
 ticular provisions, have been modified or superseded by the Act of 1838, 
 under which this institution was organized, and by subsequent statutes. 
 This proposition is the necessary result of the decision in The Supervisors of 
 Niagara v. The People, 1 Hill, 504, and Gfillet v. Moody, in this Court. If 
 banks organized under this law are subject to taxation, and to the act to pre- 
 vent the insolvency of moneyed corpoi-ations, as settled by these adjudica- 
 tions, no reason is perceived why they are not bound by all general laws 
 relating to moneyed corporations, not in cmijlict with the, one under which 
 they are created." * * * "If the legislature intended to authorize the 
 creation of banking corporations, we cannot suppose thstt they designed to 
 provide for a privileged class, by exempting them from restrictions imposed 
 upon all others, and deemed necessary to protect the public and stockholders 
 against the fraud or improvidence of the agents who controlled them." (3 Sel- 
 den, 328, 340, 841, 347.) See \ R.S., 588 & 599, § S2, and tlie amendatory 
 Act ofAprU 24 1829. {Laws 1829, § 1 c& § 35.) 
 
 In Gaffney v. Colville (6 Hill, 567-580), the Supreme Court held, — that 
 where a stockholder of a bank sues for a violation of the first section of the 
 above Title 2, he need not join all the directors who participated in the act 
 charged, but may proceed against them separately ; and it was also held, tiat a 
 stockholder may sue for making a dividend out of the capital stock, instead 
 of the surplus profits, though he has received a share of the divid^ndi pro- 
 vided he did so without knowledge of the facts rendering ij^iflegal ; and 
 also that the act complained of on the part of the directors, should be alleged 
 to have been done by them, — that an allegation that they caused and pro- 
 cured it to be done, or that they authorized and permitted the jashier to do 
 it, is not sufficient. 
 
4 GENERAL STATUTES APPLICABLE TO 
 
 and required to be paid, or with the intent of providing 
 the means of making such payment : 
 
 4. To receive or discount any note or other evidence 
 of debt, with the intent of enabling any stockholder to 
 withdraw any part of the money paid in by him, on his 
 stock : 
 
 5. To apply any portion of the funds of their corpora- 
 tion, except surplus profits, directly or indirectly, to the 
 purchase of shares of its own stock : 
 
 6. To receive any such shares in payment or satisfao 
 tion of any debt due to their corporation, except as herein- 
 after provided : 
 
 7. To receive fr*m any other stock corporation, in ex- 
 
 3 Comst. 479. ■' -"^ ' 
 
 change for the shares, notes, bonds, or other evidences of 
 debt of their own company, shares of the capital stock of 
 such other corporation, or notes, bonds, or other evidences 
 of debt, issued by such other corporation : 
 
 8. To make any loans or discounts, if the corpora- 
 tion have banking powers, by which the whole amount 
 of the loans and discounts of the company shall be made 
 to exceed three times its capital stock, then paid in, and 
 actually possessed : ( 3 ) 
 
 9. To make any loans or discounts to the directors of 
 such corporation, or upon paper upon which such direct- 
 
 (3) The legislature, by an act passed April 2d, 1829 (^Zaws 1829, p. 161, 
 1'72); entitled " An Act to create a fund for the benefit of the creditors of certain 
 moneyed corporations, and for other purposes," modified this provision as to 
 " moneyed corporations having banking powers " thereafter created in this 
 State, tifl follows: 
 
 " § 2'7. It shall not be lawful for any such moneyed corporation to issue, or 
 have outstanding or in circulation, at any time, an amount of notes and bills 
 loaned, or put la circulation as money, exceeding twice its capital stock then 
 paid in and actually possessed ; nor shall its loans and discounts at any time 
 exceed twice-and a halfbt, the amount of its capital stock so paid in and pos- ' 
 sessed." See § 1 of the Act of April 2d, 1829. 
 
BANKING CORPORATIONS. 5 
 
 ors, or any of them, shall be responsible, to an amount ex- 
 ceeding in the aggregate, one-third of the capital stock of 
 such corporation, actually paid in and possessed ; but no 
 securities taken for any such loan or discount, shall be held 
 invalid. 
 
 § 2. In the calculation of the profits of any moneyed cJeSu^S."^'^ 
 corporation previous to a dividend, interest then unpaid, 
 although due or accrued, on debts owing to the com- 
 pany, shall not be included. 
 
 §3. In order to ascertain the sui-plus profits, fronig^"''P'"*P"' 
 which alone a dividend can be made, there shall be 
 charged in the account of profit and loss, and deducted 
 from the actual profits, — 
 
 1. All the expenses paid or incurred, both ordinary 
 and extraordinary, attending the management of the af- 
 fairs, and the transaction of the business of the company : 
 
 2. The interest paid, or then due, or accrlied, on debts 
 owing by the company : 
 
 3. All losses sustained by the company ; and in the 
 computation ofsuch losses, all debts owing to the company 
 shall be included, which shall have remained due with- 
 out prosecution, and no interest having been paid thereon, 
 for more than one year ; or, on which judgments shall 
 have been recovered, that shall have remained for more 
 than two years unsatisfied, and on which no interest shall 
 have been paid during that period. 
 
 8 4. When any losses shall be sustained by any such Losses how 
 
 o J J J to be charged. 
 
 corporation, that shall exceed its undivided profits then 
 realized and possessed, they shall be charged as a reduc- 
 tion of the capital stock of the company ; and no dividends 
 shall thereafter be made on the shares of such stock, until 
 
6 GENERAL -STATUTES APPLICABLE TO 
 
 the deficit of capital, so created, shall be made good, either 
 by the recovery of the moneys charged as lost or from the 
 subsequently accruing profits of the company. 
 
 Loans when § 5. If, from the occurreuce of losses charged, or 
 In- proper to be charged, as a reduction of its capital stock, the 
 
 whole amount of the loans and discounts made by any 
 corporation having banking powers, shall exceed three 
 times the amount to which its capital paid in is or ought 
 to be reduced, it shall be the duty of the directors of such 
 corporation, to call in and cause to be paid, without delay, 
 such a portion of such loans as shall reduce their whole 
 amount within the limits before prescribed. 
 
 Proceedings § 6. If any sharos of its own capital stock shall be 
 
 on stock by- w «/ x , 
 
 wherd'ew' is hypothecated or pledged to any moneyed corporation, and 
 ne pai .i ^^^ ^^^^ which they shall be intended to secure shall not 
 be paid when due, it shall be the duty of the directors of 
 the company, within sixty days thereafter, to cause such 
 shares to be sold ; and if within that period, such shares 
 shall not be sold, and the debt shall remain unsatisfied, the 
 shares shall be charged at the amount actually paid thereon, 
 as a reduction of the capital stock of the company, and no 
 dividends shall thereafter be made, until the deficit so cre- 
 ated, be made good from the subsequently accruing profits 
 of the company. 
 ^oerwn^con- § 7. JSfo couveyauce, assignment, or transfer of any ef- 
 rafion, "watfects, for the use, benefit, or security of any such corpora- 
 tion, shall be valid in law unless it be made to the corpo- 
 ration directly and by name ; but the provisions of this 
 section shall not be construed to apply to a conveyance or 
 assignment for the benefit of creditors, in which such cor- 
 poration shall be included, or to a conveyance or assign- 
 
BANKING CORPORATIONS. I 
 
 ment of the effects of a debtor under the laws of this State, 
 or of any other state or country. (4) 
 
 § 8. No conveyance, assignment, or transfer, not au- ^o^JI^^^^^^^ 
 thorized by a previous resolution of its board of directors, iotK ™ 
 shall be jnade by any such corporation of any of its real 
 estate, or of any of its effects, exceeding the value of one 
 thousand dollars ; but this section shall not apply to the 
 issuing of promissory notes, or other evidences of debt, by 
 the officers of the company in the transaction of its or- 
 dinary business, nor to payments in specie or other current 
 money, or in bank bills, made by such officers ; nor shall 
 it be construed to render void any conveyance, assignment, 
 or transfer, in the hands of a purchaser for a valuable con- 
 sideration, and without notice. ( 4 ) 
 
 (4) The Revisers say, that the principal object sought to be attained by 
 §§ 7 & 8 was — " To prevent a fraudulent application or transfer of the prop- 
 erty and funds of a company (§§ 1, 8)." 3 R S. 2dM.,p. 530. See Hoyt 
 v. Thompson (1 Selden, 320), Johnson y. Bush (3 Barb. Ch. R. 207), Gillet v. 
 Moody (3 Comst. 479, 486), To.lm.age v. Pell (3 Selden, 328, 347, 348). See 
 Oill^ V. Campbell (1 Denio, 620) ) this case questioned in Qillet y. Moody (3 
 Comst. 486). 
 
 In 1846, Assistant Vice Chancellor Sandford, in Blunt & Pruyn v. 
 Hanna, and in Blunt & Pruyn y. Martin (not reported), delivered the fol- 
 lowing opinion: " The Assistant Viob Chancellor. — ^The principal questions 
 argued in these causes are not sufficiently raised or presented by the plead- 
 ings to enable the Court to determine them. There is, however, one objec- 
 tion taken in the answers, which, although in some measure formal, goes to 
 complainant's whole right of action. 
 
 " They derive their title to the mortgages in question through an as- 
 signment of a large number of securities, including those executed by the 
 St. Lawrence Bank to the Canal Bank of Albany, on the 31st day of 
 March, 1841. 
 
 " The answers deny that any legal or valid assignment was made of these 
 mortgages respectively to the Canal Bank. It appears by the testimony, that 
 on the day last mentioned, the St. Lawrence Bank bought of the Canal Bank, 
 $20,000 of the five per cent. New York State Stocks, and took in payment 
 the bonds of the St. Lawrence Bank, payable in certain monthly installments, 
 and an assignment of the securities already referred to, to secure the pay- 
 ment of the bonds. The transaction was negotiated by Mr. Van Rensselaer, 
 the president of the St. Lawrence Bank. He states that the authority under 
 
GENERAL STATUTES APPLICABLE TO 
 
 lb. § 9. No such conveyance, assignment or transfer, nor 
 
 any payment made, judgment suffered, lien created, or 
 
 which he made the purchase, and with the cashiei' executed the assignment, 
 was their general power as president and cashier, and also a resolution of 
 tlie board of directors, which was not produced, but whioli, I infer from 
 his statement, authorized him to raise money on the securities and credit 
 of the Bank. If the resolution were in truth more extensive than this, the 
 complainants should have produced it. It forms a part of their title which 
 the answers distinctly put in issue. 
 
 " Such being the authority, the assignment was invalid, and transferred no 
 title to the Canal Bank. 
 
 " It has been decided repeatedly in this Court, as well as in the Supreme 
 Court, that the assooiatidns brought into existence under the "Act to author- 
 ize the business of Banking," passed April 18th, 1838, are corporations ; and 
 that they are subject to the general provisions of law which are applicable 
 to like corporations, except where the above act and subsequent legislation 
 have otherwise provided. 
 
 " In the case of David Leavitt, Receiver of the North American Trust and 
 Banking Company, v. 7h/lee and others (December 4th, 1846), I decided that 
 the eighth and ninth sections of the Title of the Revised Statutes relative to 
 'moneyed corporations' (1 R. S. 591), were applicable to banking associa- 
 tions established under the General Banking Law. Under these sections, 
 the assignment of the mortgages in question to the Canal Bank, was not 
 ' valid in law.' 
 
 " The fact that the Canal Bank paid value fo^ the assignment does not 
 alter the case. They could not become bona fide purchasers without notice 
 of the defect, because the previous resolution of the boal-d of directors, 
 authorizing the transfer, was by law as necessary a part of the authority of 
 the St Lawrence Bank to execute the transfer, as was the General Banking 
 Law itself which brought the Bank into existence. Nor would the knowl- 
 edge and consent of the directors of the St. Lawrence Bank, spoken of by 
 Mr. Van Rensselaer, supply the place of the previous resolution of the 
 board of directors, which the statute prescribes. It is the resolution of the 
 board, placed upon its minutes, which fixes and perpetuates the responsibil- 
 ity of the transaction, and which the statute designed to secure. 
 
 " If the Canal Bank acquired no valid title to the mortgages, none enured 
 to the complainants. 
 
 " It is contended in their behalf, that the defendants have not stated that 
 the Receiver of the St. Lawrence Bank, or any one else, asserts a claim to 
 these securities ; and further, that the defendants have no right to litigate 
 this question, or if they have such right, they must avail themselves of it 
 by a cross bill, bringing forward the adverse claimants. 
 
 " To this it may be answered, that the complainants assert a right here, 
 founded on an assignment of the mortgages, which right the defendants 
 
BANKING CORPORATIONS. -9 
 
 security given, by any such corporation wli^n insolvent, or 
 in contemplation of insolvency, with the intent of giving 
 a preference to any particular creditor over other creditors 
 of the company, shall be valid in law ; and every person 
 receiving, by means of any such conveyance, assignment, 
 transfer, lien, security or payment, any of the effects of 
 the corporation, shall be bound to account therefor to its 
 creditors or stockholders, or their trustees, as the case shall 
 require. (5) 
 
 deny, and the proof shows that no such right exists. This is a perfect an- 
 swer to the complainants' suit. It is just as effectual as if, on ^i traverse of 
 the execution of the assignment set forth in the bill, the evidence had shown 
 it to be forged. If the defendants had assumed to state who owned the 
 mortgages, they would have raised an immaterial issue, upon which they 
 woidd be quite likely to be misinformed, and to . fail in sustaining. They 
 were not botmd to make such a statement, much less to enlarge the circle 
 of the litigation by bringing in the parties in whom the title remained, in case 
 the assignment were invalid. Nor is it true, that the defendants have no in- 
 terest in this question. If the mortgages are valid, and they belong to the 
 Receiver, and not to the complainants, a payment to the latter, under a de- 
 cree in this suit, would not relieve the complainants from paying them to 
 the Receiver, if he could show notice to them, which this case discloses. It 
 is to be regretted, that the important points made for the defence, at the 
 hearing upon the merits, cannot be disposed of without further litigation ; 
 but I have no alternative, and the bills must be dismissed with costs." 
 Oeorge S. M. Lynch, Assistant Vice OhanceUor's Clerk : J. Blunt and John 
 Dhek for complainants, and A, 0. Bkown for defendants. 
 
 (5) The Hevisers say, that the principal object sought to be attained by 
 § 9 was, — "In the event of insolvency, to secure an equal distribution of the 
 effects of a company, amongst all its creditors" (3 JH. S., 2d Ed. 530). See 
 Brovmer v. Harbeck, decided by the Court of Appeals, in March, 1854. ' In 
 delivering the opinion of the Court of Appeals in this case, Allen (W. F.), 
 J., said: "The legislature, in aU the provisions of the Act cited (1 R. S., 
 591, § 9), recognize and seek to carry out the doctrine that, among creditors, 
 'Mquality is Equity' — and a prominent object is to prevent all intentional 
 preference among the creditors of insolvent moneyed corporations. The 
 ninth section is incorporated in the statute for that purpose, and has only to 
 do with acts in derogation of the equitable doctrine of equality, and there- 
 fore forbids all transfers, payments, Ac, by the corporation, when insolvent 
 
10 GENERAL STATUTES APPLICABLE TO 
 
 di™°oi%to° § ^^- Eve»y director who shall violate, or be concerned 
 i^gSS*' in violating, any provision in the preceding sections of this 
 Article contained, shall be liable personally to the cred- 
 itors and stockholders respectively, of the corporation of 
 which he shall be a director, to the full extent of any loss 
 - they may respectively sustain from such violation, 
 lb. § 11. lHvery dvrector guilty of such violation, whether 
 
 a loss shall or shall not result, shall ie deemed guilty 
 of a misdemeanor, pu/nishaHle Iry fine, or imprisonment, 
 or ioth, in the discretion of the couH by which he shall 
 he tried. [Repealed : see note 6.] 
 whenciarge- § 12. Evcry director shall ie deemed to possess such a 
 
 able for such 
 
 violation. Tcnowlcdgc of the affair's of his corpor<Mion, as to enable 
 him to determine whether atvy act, proceeding, or omission, 
 of its directors, is a violation of the foregoing provisions 
 
 or in contemplation of insolvency, with intent to give a preference to any 
 particular creditor over others." 
 
 " So long as insolvency neither exists nor is contemplated, the corpora- 
 . tion, like an individual, can appropriate its means to the payment of its 
 debts, in such order and in such amounts and proportions as the directors 
 please. But upon insolvency, either actual or contemplatedj this power 
 ceases, and the law declares the absolute right of every creditor to share 
 pro rata in the assets of the company, and will not suffer this right to be 
 defeated by any act of the corporation or its officers. Hence, the right of 
 purchasers in good faith are not protected, as in cases provided for by sec- 
 tion eight of the same act. Such provisions are not necessary to protect the 
 rights of parties. The creditor to whom the unauthorized payment or trans- 
 fer is made, is not a purchaser, — ^he parts with nothing, — ai*d upon being 
 compelled to account for whatever he may have received, he stUl loses noth- 
 ing which he has a right, legal or equitable, to retain. His debt revives, 
 and he again becomes a creditor, and shares equally with the others in the 
 property of the debtor. He receives all to which he ever had a legal right, and 
 the equities coincide with the legal rights of the parties, The statute de- 
 clares the transfer and payment void, in case of actual or contemplated in- 
 solvency, if made with intent to give preference to creditors, in-espective of 
 the knowledge of the party receiving the transfer or payment. * * * A 
 corporation, like an individual, is insolvent when it is not able to pay its debts. 
 Insolvency means a general inability to answer, in the course of business, the 
 liabilities existing, and capable of being enforced." See Brouwer v. Harbeck 
 (1 Duer, Sup. R. 114). 
 
BANKING CORPORATIONS. 11 
 
 of this Article ; cmd emery ddreotor who ahall he present 
 at a meeting of the directors, where such a violation shall 
 happen, shall he deemed to home concwrred therei/n, unless he 
 shall, at the time, cause, or in writing require, his dissent 
 therefrom to he entered at la/rge in the minutes of the di- 
 rectors. [Repealed: see note 6.] 
 
 § 13. Every director not present at a meeting where ^^■ 
 such a violation shall happen, shall nevertheless he deemed 
 to have concurred therein, if the facts constituting such 
 violation appear on the hooks of the company, and he re- 
 maim, a director of the same compa/rvyfor six months there- 
 after, a/nd do ru>t within that time cause, or in writing re- 
 quire, his dissent from such illegal proceedi/ng to he entered 
 at large in the minutes of the directors. [Repealed : See 
 note 6.] 
 
 § 14. Every insohiency of a moneyed corporation shall insolvency, 
 he deemed fraudulent, imless its affairs shall appear, upon*"''^^'^''^^ 
 investigation, to have heenfai/rly a/nd legally administered, 
 and generally with the same care a/nd diligence that agents, 
 receiving a compensation for their services, are hound hy 
 law to observe ; a/nd it shall he incumbent on the directors 
 and stochholders of every such insolvent corporation, to re- 
 pel, hy proof , the presumption of fraud. [Repealed: see 
 note 6.] 
 
 §15. In every case of a fraudulent im,sol/oency, the di- Li&biutyof 
 
 ^ ^ directors in 
 
 rectors of the insolvent company, hy whose acts or omissions '^J^^''^' 
 the insolvency was, wholly or in part, occasioned, amd^^''^' 
 whether then in office or- not, shall each he liable to the 
 stochholders and creditors of the company, for his propor- 
 tional share of their respective losses y the proportion to he 
 ascertained hy dividing the whole loss amongst the whole 
 nwnher of di/rectors liable for its r&imhu/rsement ; hut this 
 
12 GENERAL STATUTES APPLICABLE TO 
 
 section shall not be construed to dirwmish the liability of 
 dm-ectors, as before decla/red, who shall have violated or 
 have been concerned in violating the Revisions of this Ar- 
 ticle. [Eepealed : see note 6.] 
 i-iaMittyof § 16. If the moneys remaimng due to the creditors 
 fraSMen't of a corporotion whose insoVoency shall be adjudged froMd- 
 ulent, after the distribution of its effects, shall not J)e col- 
 lected, in whole or in part, from, the directors liable for 
 thei/r reimbv/rsement, the deficiency shall be made good iy 
 tlie contribution of the stooTcholders of the compcmy y the 
 whole amovmjt of the deficiency shall be assessed on the 
 whole number of sha/res of the capital stoch^ a/nd the sum 
 necessary to be paid on each share, shall be then ascertained, 
 a/nd each stockholder shall be liable for the sum, assessed on 
 the nu/mbev of shares held by him, not exceedmg the nomi- 
 nal amount of such sha/res in addition to the sums paid, 
 or which he ma/y be liable to pay, on accownt of those 
 shares. [Eepealed : see note 6.] 
 ■When per- § Vj . If the amoumt assessed on the sha/res of amy 
 
 Kons who u »/ ./ a 
 
 fCTred«OTk stockholder, wnder the provisions of the last section, shall 
 tie. not be collected from such stockholder, by reason of his in- 
 
 soVoency, or his absence from this State, the sum remaining 
 due on such assessment, shall berecove/rable agcmist the per- 
 son from, whom the delinquent stockholder, at amy time 
 within six months previous to the insolvency of the com- 
 pany, shall home receimed a transfer of the shares, or am,y 
 portion of the shares then held by him ; and every person 
 homing made such tramsfer, shall be liable in the same man- 
 ner, am,d for the same proportion, that he would have been 
 liable had he continued to hold the sha/res so transf&rred. 
 [Eepealed : see note 6.] 
 rf^tom""™ § ^^' ■^'^ term ^'stockholders," as used in thepreced- 
 
BANKING CORPOEATIONS. 13 
 
 ing sections of this Title, from the fov/rteenth section m- ^'"from §'14. 
 elusive, shall extend to emevy equitable owner of stock, ap- 
 pearing on the 'books of an insoT/oent company, in the na/me 
 of anotJier person, a/rtd to euery person wJio shall have ad- 
 va/nced the installments, or pii/r chase-money, of a/rvy shares 
 of stock standi/ng in the nams of a/ny of his children wn- 
 der the age of twenty-one years / iut no person holdvrig 
 stock as a/n executor or admi/nisi/rator^ or as a gua/rdia/ti or 
 trustee, appointed hy a last will or testarniemt, or hy a court 
 of competent authority, and no legal or equAtoible owner of 
 stock, under the age of twenty-one yea/rs, shall ie individu- 
 ally responsible on account of the shares so held. [Re- 
 pealed : see note 6.] 
 
 § 19. It shall be the duty of every moneyed corporation Annual state- 
 
 ment to be 
 
 hereafter created, on the first day of January after its in- J™oSp"rou. 
 corporation, and annually on the same day thereafter, to''" 
 make out and transmit to the comptroller, in the form 
 prescribed by him, a full statement of its affairs, verified 
 by the oaths of its president and cashier, or treasurer or 
 secretary. [See note Y.] 
 
 § 20. Each statement so transmitted shall contain \_see contents 
 
 thereof. 
 
 note 7],' — 
 
 (6) April 2d, 1829, the legislature by an act, entitled "An Act to create 
 a fund for the benefit of certain moneyed corporations, — and for otJwr purposes '' 
 (Laws 1829, pp. 161, 172, § 30), enacted, that the above sections 14, 15, 16, 11, 
 & 18, " so far as they provide for the personal liability of the stockholders 
 of any insolvent corporation, shall not apply to any corporation subject to 
 the provisions of this act ; but the directors of every corporation subject to 
 this act, shall be liable to the stockholders thereof as provided in the said 
 sections." But, March 8th, 1830, the Legislature, by an act entitled "An 
 Act to repeal certain sections of 'Rtle Second of the Eighteenth Chapter of t!ie 
 First Part of the Revised Statutes" {Laws 1830, p. 73), eepealed the above 
 sections 11, 12, 13, 14, 15; 16, iTj^fe 18. But such repeal " shall not be con- 
 strued to extend to or affect any existing corporation, or any officer or mem- 
 ber thereof." 
 
14 ■ GENERAL STATUTES APPLICABLE TO 
 
 .1. The amount of the capital stock of the corporation, 
 paid in, or inTeated according to the provisions of its char- 
 ter, and the amount of such stock as then possessed : 
 
 2. The value of the real estate of the corporation, speci- 
 fying what portion thereof is occupied by the company as 
 necessary to the transaction of its business : 
 
 3. The shares of stock held by such corporation, 
 ■whether absolutely or as collateral security, specifying 
 each kind and description of stock, and the number and 
 value of the shares of each : 
 
 4. The debtp owing to the corporation, specifying such 
 as are owing from other moneyed corporations, the names 
 of such corporations, and the amount due from each ; and 
 also specifying the amount secured by bond and mortgage 
 or judgment, the amount which, according to the provi- 
 sions of this Article, Ought to be included in the computa- 
 tion of losses, and the total amount of such debts then col- 
 lectible : 
 
 5. The amount of debts owing by the corporation, speci- 
 fying such as are payable on demand, and such as are due 
 to other moneyed corporations, the names of such corpora- 
 tions, and the amount due to each : 
 
 6. The amount of the claims against the corporation not 
 acknowledged by it as debts : 
 
 7. The amount for which the corporation is bound as 
 surety, or for which it may become liable on the happen- 
 ing of contingent events, whether upon policies of insur- 
 ance or otherwise : and, 
 
 8. K the statement be from a corporation having lank- 
 inff powers, the amount of its notes or bills then in circu- 
 lation, of its loans and discount*and of specie on hand. 
 
BANKING CORPORATIONS. 15 
 
 § 21. Eacli statement subsequent to the first so trans- rurthercon- 
 nodtted shall also contain [see note 71, — stetemeiS^f- 
 
 1- j; ter the first 
 
 1. The amount of the losses of the corporation charged, 
 specifying whether charged on its capital or profits, since 
 its last preceding statement, and of its dividends declared 
 and made during the same period : 
 
 2. The average amount fou each month, during the 
 preceding year, of the debts due to and from the corpora- 
 tion : and, 
 
 3. If the statement be from a corporation having ianTc- 
 ing. joowers, the amount on the first day of July of the 
 same year of its notes or bills in circulation, of its loans 
 and discounts, and of its specie on hand. 
 
 § 22. Every corporation that shall neglect to make out Penalty for 
 and transmit the statement, required, for one month be- 
 yond the period when by law it ought to be made, may be 
 proceeded against and dissolved as an insolvent corpora- 
 tion. [See note 7.] 
 
 § 23. It shall be the duty of the comptroller to enter "^^ »' 
 every such statement received by him, in a book to be pro- rach^"^'-" 
 vided by him for that purpose, and which shall at all times, 
 during office hours, be open to public inspection. [See 
 note 7.] 
 
 § 24. If it shall appear to the comptroller from any 
 statements received by him, that the provisions of its char- 
 ter, or of this Title, have been violated by any corporation, 
 or that there is reason to apprehend, that any corporation 
 is or will become insolvent,' it shall be his duty to report 
 the facts, together with his opinion thereon, without delay, 
 to the legislature. [See note 7.] 
 
 (7) The above sections 19, 20, 21, 22, 23, & 24, were so far modified by 
 the Safety J^»ii-4p« of April 2d, 1829 {Laws 1829, pp. 167, 172, § 31), as to 
 
16 GENERAL STATUTES APPLICABLE TO 
 
 lb. § 25. It shall be the duty of the comptroller, to pre- 
 
 pare forms of the statements above prescribed, and tb 
 transmit a copy thereof, together with such instructions as 
 he may deem necessary, to every corporation "which is 
 or shall be bound to furnish such statements under the 
 provisions of this Title. 
 on^banS."™ § 26. No coi-poration* having Icmking powers, shall 
 issue for circulation any bill or promissory note of a less 
 denomination than one dollar. 
 
 jb. and on | 27. No corporatioQ having hanhmg powers, and 
 none of its directors, officers, agents or servants, shall, 
 directly or indirectly, purchase or be interested in the pur- 
 chase of any promissory note, or other evidence of debt, 
 issued by such corporation, for a less sum than shall ap- 
 pear on the face thereof to be then due ; and every person 
 violating the provisions of this section, shall forfeit three 
 times the nominal amount of the note, or other evidence 
 of debt, so purchased. 
 
 lb. § 28. No president, director, cashier, clerk or agent, 
 
 of any corporation having hanking powers, and no person 
 in any way interested or concerned in the management of 
 the affairs of any such corporation, shall discount, or di- 
 rectly or indirectly make any loan upon, any note or other 
 evidence of debt which he shall know to have been of- 
 fered for discount to the directors, or any officer of such 
 corporation, and to have been refused ; and every person 
 violating the provisions of this section, shall, for "each 
 
 require the statements therein referred to, to be made to the Bank Commis- 
 sioners instead of the State Comptroller, &e. The requirements of the 26th 
 section of the General Banking Lam of 1838 were substantially copied from 
 the aboye sections 20 <& 21. 
 
BANKING COEPORATIONS. IT 
 
 o£fence, forfeit twice the amount of the loan which he shall 
 have made. 
 
 § 29. No moneyed corporation, to which a charter shall Affidavits 
 hereafter be granted, shall commence the business fort-rsS"''*' 
 which it shall be incorporated, until its president and 
 cashier, or treasurer, or secretary, or its two principal offi- 
 cers, by whatever name they may be described, shall have 
 made and subscribed an afiBdavit, stating that the whole 
 of the capital stock of such corporation, or such portion 
 thereof as, by its charter, shall be required to be paid or 
 secured before the commencement of its operations, has 
 been actually paid, or secured to be paid, according to the 
 provisions of its charter. 
 
 § 30. Every such affidavit, if made in a city, shall be How made 
 made before the mayor or recorder of such city, and if 
 made in a county, before the first judge of the county, or 
 any master in chancery therein, and shall be filed in the 
 clerk's office of the city and county, or of the county in 
 which it shall be taken. 
 
 § 31. The charter of every such corporation shall be Penalty if 
 void, if the affidavit above required, shall not be duly°° " 
 made and filed within one year from the time such charter 
 shall be granted. 
 
 AETICLE SECOND. 
 
 Regulations concerning the Election of Directors of Mon- 
 eyed Corporations. (1 K. S. 695 : see Note 8.) 
 
 Sko. 32. Inspectors of elections how chosen ; their pay. 
 33. Directors to supply vacancies in office of inspector. 
 
 (8) Apiril 29, ISi*?, the legislature passed an act, entitled "An Act con- 
 cerning the election of Directors of Banking Associations" {Laws 184'?, chap. 
 2 
 
18 GENERAL STATUTES APPLICABLE TO 
 
 34, Officers of the corporation not to be chosen inspectors. 
 
 35, Inspectors to take oath. 
 
 36, Si, & 38. Qualifications of voters. 
 
 39. Form of oath to be administered to persons offering to vote who are 
 
 challenged. 
 
 40. Affidavits to be attached to proxies. 
 
 41. Oath to be administered to persona offering to vote upon proxy, if 
 
 challenged. 
 
 42. If challenged person refuse to take oath, his vote to be rejected. 
 
 43. If election do not take place on day appointed, -when to be held. 
 
 44. By-laws regulating elections, when to be made and to be published. 
 
 45. A register of transfers and a book containing names of stock- 
 
 holders, to be kept, &a. 
 
 46. Penalty for refusing to allow stockholders to inspect them. 
 
 47. Parties aggrieved by an election, may apply to supreme court for 
 
 redress. 
 
 48. 49; & 50. How supreme court to proceed in such applications. 
 
 Inspectors § 32. At cverv election for directors in any moneyed 
 
 to be chosen. 
 
 corporation, three persons shall be chosen by the persons 
 entitled to vote for directors, as inspectora at the next suc- 
 ceeding election, whose duty it shall be to act as such, and 
 any two of whom shall be competent to act. Each acting 
 inspector shall be entitled to a reasonable compensation for 
 his services, to be paid by the corporation for which he is 
 chosen. 
 Vacancies § ^^" '^^^ dircctors of the corporation shall supply 
 howsuppUed- ^^^ vacaucy that may occur by the death or removal from 
 the city or county where the corporation shall be situated, 
 of any such inspector, or by his refusal to serve, or neg- 
 lect to attend on the day of election. 
 Disabiiit § ^^" '^^ pcrsou shall be chosen or appointed an in- 
 spector of an election of directors in a corporation of 
 which he 'shall be a director or of&cer. 
 
 160, p. 154), whereby it was enacted that every banking association which 
 had been or should thereafter be formed or organized \inder the general 
 law, should be subject to the provisions of Article 2, Chapter 18, Part 1, of 
 the Revised Statutes. But see note 9, post : and also see Talmage v. Fell (3 
 Selden, 328). 
 
BANKING CORPORATIONS. 19 
 
 § 36. Every sucli inspector, before lie shall enter on ^ ^*fjj.°' '°' 
 the duties of his ofiSce, shall take and subscribe the follow- 
 ing oath, before any officer authorized by law to adminis- 
 ter oaths: "I do solemnly swear that I will execute the 
 duties of an inspector of the election now to be held, with 
 strict impartiality, and according to the best of my abil- 
 ity." 
 
 , . ''^ho may 
 
 § 36. At every election of directors, the transfer books ^ote. 
 of the corporation shall be produced, to test the qualifica- 
 tions of the voters ; and no persons shall be admitted to 
 vote directly, or by proxy, except those in whose names 
 the shares of the stock of the corporation shall stand on 
 such books, and shall have so stood for at least thirty days 
 previous to the election. 
 
 § 37. No person shall be admitted to vote on any what'stock. 
 shares of stock, belonging, or hypothecated, to the corpo- 
 ration in which the election is held, nor shall any person 
 be admitted to vote on any shares of stock, which shall 
 then be hypothecated, or pledged, as a collateral security 
 to any other person or company. 
 
 §38. No person shall be admitted to vote on anyso9;'2a 
 
 ■^ Vend. 692. 
 
 shares, which shall have been transferred to him, for the 
 sole purpose of enabling him to vote thereon, at the elec- 
 tion then to be held ; nor upon any shares, which he shall 
 have previously contracted to sell or transfer after the elec- 
 tion, upon any condition, agreement, or understanding; in 
 relation to his manner of voting at such election. 
 
 § 39. Every person offering to vote, may be chal- ohaUenge. 
 lenged by any other person authorized to vote at the 
 same election ; and to every person so challenged, one of 
 the inspectors shall administer the following oath : " You 
 do swear (or affirm, as the case may be), that the shares 
 
20 GENERAL STATUTES APPLICABLE TO 
 
 Oath. on which you now offer to vote do not belong, and are not 
 hypothecated to the (naming the corporation for which 
 the election is held), and that they are not hypothecated 
 or pledged to any other corporation or person whatever ; 
 that such shares have not been transferred to you for the 
 purpose of enabling you to vote thereon at this election ; 
 and that you have not contracted to sell or transfer them, 
 upon any condition, agreement, or understanding, in rela- 
 tion to your manner of voting at this election." [See 
 note 8 5.] 
 YotTnera' § ^^- "^^ pcrsou shall be permitted to vote upon the 
 
 P"""^«- proxy of a stockholder, unless he shall produce, annexed 
 to his proxy, an affidavit of such stockholder, stating the 
 same facts to which the oath of such stockholder might 
 have been required, upon a challenge, had he offered to 
 vote in person, on the shares mentioned in the proxy. 
 Their oath 8 41. If auy pcison offering to vote upon a proxy shall 
 
 if challenged. 
 
 lae challenged by an elector, he shall be required to take 
 the following oath, to be administered to him by one of 
 the inspectors : " You do swear (or affirm), that the facts ■ 
 stated in the affidavit annexed to the proxy, upon which 
 you now offer to vote, are true according to your belief, 
 and that you have mad-e no contract or agreement what- 
 ever, for the purchase or transfer of the shares, or any por- 
 tion of the shares, mentioned in such proxy." 
 
 (8 6) Tlie legislature, June SOth, 1851 (Laws 1851, p. 616), enaated as 
 follows : 
 
 § 1. It shall be lawful for any married ■woman, being a stookholder or a 
 member of any bank, insurance company (other than mutual fire insurance 
 companies), manufacturing company, or other institution incorporated under 
 the laws of this State, to vote at any election for directors ' or trustees by 
 proxy or otherwise, in such company of which she may be a stockholder or 
 member. 
 
 § 2. This act shall take effect immediately. 
 
BANKING CORPORATIONS. 21 
 
 § 42. If any person duly challenged, shall refuse to take on'cSaiienI! 
 the proper oath, his vote shall be rejected, and shall not be 
 afterwards received at the same election ; if he shall take 
 the oath, his vote shall be received. 
 
 § 43. If an election for directors in any such corpora- i??"',,^'"!' 
 tion, shall not be held on the day appointed by law, it ''°"'*"'' 
 shall be the duty of the directors to notify, and cause such 
 election to be held within sixty days after the day so 
 appointed ; and on the day so notified, no persons shall be 
 admitted to vote, except those who would have been enti- 
 tled had the election taken place on the day when, by law, 
 it ought to have been held. 
 
 § 44. No by-law of any such corporation, regulating certain by- 
 the election of its directors, shall be valid, unless it shall 
 be made at least sixty days before the day appointed by 
 law for the election to be held, and shall have been pub- 
 lished for at least two weeks in succession, immediately 
 following its enactment, in some newspaper in the city or 
 county where the corporation is situated. 
 
 § 45. Every such corporation shall keep a book in book™'*"^ 
 which the transfer of shares of its stock shall be registered; 
 and another book, containing the names of its stockhold- 
 ers ; which books shall at all times, during the usual hours 
 of transacting business, for thirty days previous to an elec- 
 tion of directors, be open to the examination of the stock- 
 holders. 
 
 § 46. K any officer having charge of such books, shall, pe„„ityf„r 
 upon the demand of a stockholder, refuse or neglect to ex- exwwtf " 
 hibit and submit them to examination, he shall for each 
 offence forfeit the sum of two hundred and fifty dollars. 
 
 § 4Y. If any person shall conceive himself aggrieved ^^^^^ ^^ 
 by an election, or any proceeding concerning an election l^iOTedbf-' 
 
22 GENERAL STATUTES APPLICABLE TO 
 
 geotion. 6 of directors or officers in any sucli corporation, he may 
 apply to the supreme court for redress, giving a reasonable 
 notice of his intended application, to the party to be 
 affected thereby. 
 Proceedings. § 48. It shall be the duty of the supreme court, upon 
 ^''- such application, to proceed forthwith in a summary way, 
 
 to hear the proof and allegations of the parties, or other- 
 wise to inquire into the causes of complaint, and thereupon 
 to make such order, and grant such relief, as the circum- 
 stances and justice of the case shall seem to require. If 
 the election complained of shall be set aside, the supreme 
 court may order a new election, at such time and place sua 
 they shall appoint. ^See note 9.] 
 ^b, § 49. The supreme court, if they cannot otherwise 
 
 arrive at a satisfactory result, may order an issue between 
 the parties, to be made up in such manner and form, and 
 to be tried in such court as they shall select ; or may per- 
 mit or direct the attorney general to file an information, in 
 the nature of a quo warranto, if the case be one in which 
 that proceeding would be competent and effectual. 
 iij, § 50. If any such issue shall be ordered, or informa- 
 
 tion permitted or directed -to be filed, it shall be the duty 
 of the supreme court to make such further orders in rela- 
 tion to the time and mode of pleading, the examination of 
 witnesses, or the parties, the production of books and pa- 
 pers, and the time and place of trial or hearing, as shall, in 
 their judgment, be effectual for expediting the proceed- 
 ings, saving expense to the parties, and causing a final 
 
 (9.) The Supreme Court in the Matter of the Bank of Danmille (6 Hill, 
 SYO), held, — that that Court had no authority to set aside an election of direct- 
 ors by a hanking association organized under the general baooting law. But 
 see this decision questioned in Oillett v. Moody, in the Covirt of Appeals (3 
 Comstoek, 479, 486, 487). See also Talmage v. Pell (3 Selden, 328). 
 
BANKING CORPOEATIONS. 23 
 
 determination to be had, with as little delay as the nature 
 of the controversy wiU permit. 
 
 AETIOLE THIRD. •(! i?. S. 598.) 
 
 Of the Construction of this Title. 
 
 Seo. 61. Meaning of the term " moneyed corporation." 
 62. To what corporation this Title to apply. 
 
 53. Meaning of term " directors." 
 
 54. Meaning of term " effects." 
 
 66. Meaning of term " evidence of debt." 
 
 §51. The term "moneyed corporation," as used in "Moneyed 
 
 , corporatioa" 
 
 this Title, shall be construed to mean every corporation defined, 
 having banking powers, or having the. power to mate 
 loans upon pledges or deposits, or authorized by law to 
 make insurances. 
 
 § 52. The provisions of this Title shall not apply to any ThisTitieto 
 moneyed corporation existing on the first day of January, tSeconJora- 
 
 tiona only. 
 
 one thousand eight hundred and twenty-eight ; but they 
 shall be construed to apply to every moneyed corporation 
 created, or whose charter shall be renewed or extended, 
 after thai time, unless such corporation shall be eaypressly 
 exenypted from the provisions of this Title, in the act cre- 
 ating, renewing, or extending such corporation. ( 10 ) 
 
 § 53. The term " directors," as used in this Title, shall "Directors" 
 
 , defined. 
 
 be construed to embrace all persons having by law, the 
 direction or management of the affairs of any such corpo- 
 ration, by whatever name they may be described in its 
 charter, or known in law. 
 
 (10) See Act concerning the Revised Statutes, passed December 10th, 1828 
 (Laws of 1829, p. 19, § 5, p. 23, § 16). Also, see Talmage y. Pell (3 Selden, 
 328); Gillett v. Moody (3 Comet. 4:19); Brouwer v. Earheck (decided by the 
 Court of Appeals in March, 1854). 
 
24 GENERAL STATUTES APPLICABLE TO 
 
 defi!ef" § ^*- '^^ *®^™ " effects," as used in this Title, sliall be 
 
 construed to embrace every species of property, real and 
 personal, including. things in action. 
 
 "Evidences 8 65.. The term "evidence of debt," as so used, shall 
 
 of delt " de- " ' ' 
 
 be construed to embrace every written instrument or se- 
 curity, for the payment of money, importing on its face the 
 existence of a debt, and whether under seal or otherwise. 
 
 fined. 
 
 TITLE III. 
 
 OF THE GENERAL POWEES, PRIYILEGES, AND 
 LIABILITIES OF COEPORATIONS. (1 B. S. 599.) 
 
 Sec. 1. Powers of 'corporatione, 
 
 2. To vest in every corporation hereafter created. 
 
 3. Corporations not to possess any additional powers, except those given 
 
 by charter. 
 
 4. Wo corporation to exercise tanking powers, unless expressly author- 
 
 ized. 
 6. When the stockholders may be required to pay in the balance on 
 their stock. 
 
 6. A majority of the body authorized to act for a corporation, may do 
 
 business. 
 
 7. If corporation do not commence business in a year, powers to cease. 
 
 8. Every charter hereafter granted, subject to alteration by legislature. 
 
 9. Who to settle afifairs of corporation upon its dissolution. 
 10. Powers and liabilities of persons so acting. 
 
 General § ^- Evcry Corporation, as such, has power, — 
 
 powers. ^^ rji^ have succession by its corporate name, for the 
 
 period limited in its charter ; and when no period is lim- 
 ited, perpetually : 
 
 2. To sue and be sued, complain and defend, in any court 
 of law or equity : 
 
 3. To make and use a common seal, and alter the same 
 at pleasure. 
 
BANKING CORPORATIONS. 25 
 
 4. To hold, prircliase, and convey sucli real and per- 
 sonal estate, as the purposes of the corporation shall re- 
 quire, not exceeding the amount limited in its charter : 
 
 5. To appoint siich subordinate officers and agents as 
 the business of the corporation shall require, and to allow 
 them a suitable compensation : 
 
 6. To make by-laws, not inconsistent with any existing 
 law, for the management of its property, the regulation of 
 its aifairs, and for the transfer of its stock. 
 
 § 2. The powers enumerated in the preceding section in what cor- 
 
 ._ , poratlonB to 
 
 shall vest in every corporation that shall hereafter be ere- vest. 
 ated, although they may not be specified in its charter, or 
 in the act under which it shall be incorporated. 
 
 § 3. In addition to the powers enumerated in the first what other 
 
 " ^ powers to be 
 
 section of this Title, and to those expressly given in its p^sessed. 
 charter, or in the act under which it is or shall be incor- 
 porated, no corporation shall possess or exercise any cor- 
 porate powers, except such as shall be necessary to the 
 exercise of the powers so enumerated and given. ( 11 ) 
 
 (11) This section (§ 3), the Revisers say, "is declaratory of a principle of 
 law frequently recognized by our courts, and which it is deemed useful to 
 confirm by legislative authority" (3 R. S. 2d Ed. 631). 
 
 That corporationa have only such powers as are expressly granted by the 
 statute which creates them, and such as are incidentally necessary to the exer- 
 cise of their express powers, — see Head <b Amory v. Providence Insurance Com- 
 pany (2 Cranoh. 127) ; Dartmouth College v. Woodward{4: Wheaton, 418) ; Bank 
 of the United States T. Dandridge (12' Wheaton, 68) ; Jackson Y. Zampshire (3 
 Peters, 289); Beatyy. The Lessee of Knmoler (4 Peters, 152) ; The United States 
 T. Arredondo (6 Peters, 738, 739) ; Charles River Bridge v. The Warren Bridge 
 (11 Peters, 544); Bank of Augusta Y. Earle (13 Peters, 619); Perrine v. 
 The Chesapeake and Delaware Canal Company (9 Howard, 172); The People 
 V. T/ie Utica Insurance Company (15 Johnson 383) ; The Firemen's Insurance 
 .Company v. My (2 Cowen, 699) ; Hodges v. ?%« City of Buffalo (2Denio, 110); 
 MoCullmghy. Moss i5'Demo, 667); Talmagev. Pell {3 Helden, 328); I%e Au- 
 burn and Cato Plank Road Company r. Douglass (decided by the Court of 
 Appeals in April, 1864) ; Golman v. The Eastern Counties Railway Company 
 (10 Beavan, 1 ; 4 Railway Cases, 524) ; East Anglian Railway Company v. The 
 
26 GENERAL STATUTES APPLICABLE TO 
 
 bafwngpow- § ^- '^^ Corporation created, or to be created, and not 
 erpro lie. g^pj-ggg^y incorporated for banting purposes, sball by any 
 implication or construction, be deemed to possess tbe 
 power of discounting bills, notes, or other evidence of 
 debt, of receiving deposits, of buying gold and silver, 
 bullion, or foreign coins, of buying and selling bills of ex- 
 change, or of issuing bills, notes, or other evidences of 
 debt, upon loan, or for circulation as money. ( 12 ) 
 
 Mastern Omtnties Railway Company (11 Common 3eneh, 775; 7 Eog. L. <feE. 
 R. 605): McGregor v. The Official Manager of the Dover and Deal Railway 
 Company (1 Railway Cases, 227; 16 Eng. L. & E. R. 180); ThePenn. Del. 
 and Maryland Steam. Navigation Company y. Dand/ridge (8 GilL <fe John. 248), 
 and Hood v. The New York and New Haven Railroad Company (22 Conn. R. 
 502). 
 
 (12) The Supreme Court, in the case of The People v. The Manhattan Com- 
 pany, held, — that the provisions of the a^bove g 4 did not apply to pre-exist- 
 ing corporations unaffected by the Restraining Acts of 1804, 1813, and 1818 ; 
 and also, that the implied powers of a corporation are as much beyond the 
 control of subsequent legislation, as the powers expressly granted (9 Wendell 
 R. 351). 
 
 In the case of the New York Life Insurance and Trust Company v. 
 Beehe (3 Selden R. 364), the Court of Appeals held, — that certificates of 
 deposit, payable in twenty years, with interest at four and a half per cent 
 and issued upon loan, by said New York Life Insurance and Trust Company 
 were evidences of deit — and were so issued by that Company in violalion of 
 its charter and of the Revised Statutes. Vol. 1, p. 600, § 4. 
 
 The Certificate of Deposit in question in the Beebe Case, was for the sum 
 of $2,260, and in the form following : — 
 
 " New York Lite Insurance and Tedst Compant; 
 
 Prinoipai,, $2,250. , Ceetifioate of De- 
 
 Pekiod, 20 years. < i posrr on Intek- 
 
 Rate of Interest, ( ignette. j- ^^^ 
 
 4i per cent. ' » ' No. 1908. 
 
 These may certify, that Prime, Ward & King, of New York, have depos- 
 ited with the New York Life Insurance and Trust Company, the sum of 
 twenty-two hundred and fifty dollars, for the peiiod of twenty years, com-, 
 mencing on the 5th August, 1836, and endbg on the 5th August, 1856, and 
 irredeemable for that period ; interest to be paid thereon by the said Com" 
 pany half yearly, at their office in the city of New York, at the rate of 4J 
 per cent, annually, to the said Prime, Ward & King, or their special attorney 
 or legal representatives. At the end of the time of deposit, the said princi- 
 
BANKING CORPORATIONS. 27 
 
 § 6. "Where the whole capital of a corporation shall not ^jj^^^'^j^^j^f 
 have been paid in, and the capital paid, shall be insuffi- 
 cient to satisfy the claims of its creditors, each stockholder 
 shall be bound to pay on each share held by him, the sum 
 necessary to coniplete the amount of such share, as fixed 
 by the charter of the company, or such proportion of that 
 sum, as shall be required to satisfy the debts of the com- 
 pany. 
 
 § 6. "When the corporate powers of any corporation are ^"''™™' 
 directed by its charter to be exercised by any particular 
 body, or number of persons, a majority of such body, or 
 persons, if it be not otherwise provided in the charter, 
 shall be a sufficient number to form a board for the trans- 
 action of business ; and every decision of a majority of the 
 persons duly assembled as a board, shall be valid as a cor- 
 porate act. 
 
 § 7. If any corporation hereafter created by the leffis^rorfeiturefor 
 
 " « -L *^ y non-user. 
 
 lature, shall not organize and commence the transaction of 
 its business within one year from the date of its incorpo- 
 ration, its corporate powers shall cease. 
 
 § 8. The charter of every corporation, that shall hereafter o^'powct"™ 
 be granted by the legislature, shall be subject to alteration, "^^^^^ ' 
 suspension, and repeal, in the discretion of the legislature. 
 
 pal sum, with the interest theu due, to he paid to the said Prime, Ward <fe 
 King, or their special attorney, representatives, and assigns. This certifi- 
 cate is assignable ore the books of the Company. 
 
 In witness -whereof, the said Company have caused 
 this Certificate of Trust to be attested in their 
 behalf, by their President and Secretary, this 5th 
 day of August, in the year one thousand eight 
 hundi-ed and thirty-six 
 
 (Signed) WM. BARD, 
 (Signed) E. A. Nioholi, President. 
 
 Secretary. 
 
28 GENERAL STATUTES APPLICABLE TO 
 
 ciS^fdiffio" § ^- CTpon tte dissolution of any corporation created or 
 to be created, and unless other persons shall be appointed 
 by the legislature, or by some court of competent author- 
 ity, the directors or managers of the affairs of such corpo- 
 ration at the time of its dissolution, by whatever name they 
 may be known in law, shall be the trustees of the creditors 
 and stockholders of the corporation dissolyed, and shall 
 have full power to settle the affairs of the corporatioji, col- 
 lect and pay the outstanding debts, and divide among the 
 stockholders the moneys and other property that shall re- 
 main after the payment of debts and necessary expenses. 
 
 Their pow- § 10. The persons so constituted trustees, shall have 
 
 era. _ 
 
 authority to sue for, and recover the debts and property of 
 the dissolved corporation, by the name of the trustees of 
 such corporation, describing it by its, corporate name, and 
 shall be jointly and severally responsible to the creditors 
 and stockholders of such corporation, to the extent of its 
 property and effects that shall come into their hands. . 
 
BANKING CORPORATIONS. 29 
 
 AMENDATORY ACT OP APRIL 2nd, 1829. 
 
 [LAWS OF 1829, CHAP. 9i, P. 167.] 
 
 An Act to create a Fund for the benefit of certain moneyed 
 Corporations, and for other pv/rposes : Passed April 2, 
 1829. 
 
 § 1. Every moneyed corporation having banking pow- 
 ers, hereafter to be created in this State, or whose charter to^ws aet 
 shall be renewed or extended, shall be subject to the pro- 
 visions of this act. (13) 
 
 § 2. Eor the purpose of creating and continuing the fund ^nnd to to 
 herein established, every such corporation shall, on or be- 
 fore the first day of January, in every year, pay to 
 the treasurer of this State, a sum equal to one-half of one 
 per cent, on the capital stock of such corporation paid in, 
 after excepting therefrom such part of said capital stock 
 as is held by the State, and at that rate for the time such 
 corporation shall have been in operation, if less than one 
 year. 
 
 § 3. At the time of making any such payment, the statement of 
 corporation making the same, shall ca^ise to be delivered ° °° ''*' 
 to the treasurer of this State, a statement, signed by the 
 president and cashier of the corporation, and verified by 
 
 (13) By this Act (see § 30, 31), some of the Genbeai, Statute Regdla- 
 TtoNS enacted in 1827 (1 R.S. 588; seeajiiepp. 10-13) were modified or amend- 
 ed, so far as they vere applicable to future moneyed corporations having 
 hanking powers. (See § 61 and § 52, p. 23, a»<e.) No moneyed corporations, 
 having banking powers, were created- in this State after the General System 
 of Statute Regulations of 1827 took effect (January 1, 1828), until that 
 System had been modified and amended by the above act of April 2d, 1829. 
 {See note 14, post.) • 
 
30 GENEEAL STATUTES APPLICABLE TO 
 
 their oath, duly made before some oificer authorized to 
 administer oaths, specifying the actual amount of the capi- 
 tal stock of such corporation paid in, and designating in 
 such statement, the amount of said capital stock, as shall 
 be owned by the State. 
 
 Bank fond § ^" '^^ ^^^^ anniial payments shall continue to he 
 
 made until every such moneyed incorporation shall have 
 paid into the treasury three per cent, upon its capital 
 stock, which shall be and remain a perpetual fund, to be 
 denominated the " bank fund," and to be inviolably ap- 
 propriated and applied to the payment of such portion of 
 the debts, exclusive of the capital stock, of any of the said 
 corporations which shall become insolvent, as shall remain 
 unpaid, after applying the property and effects of such 
 insolvent corporation, as hereafter provided. 
 
 § 5. The comptroller and treasurer of this State shall 
 
 nndTreMu"" keep proper accounts of the said bank fund, separate and 
 
 aocottnte. distinct from the funds of this State ; and the comptroller 
 shall from time to time report to the legislature the con- 
 dition thereof. 
 
 § 6. The said fund shall be the property of the corpo- 
 
 be™nveB°tId'.° ratious by which the same shall be paid, in proportion to 
 the amount which each of such corporations shall have 
 contributed thereto ; but the comptroller shall have 
 power, and it shall be his duty, from time to time, to in- 
 vest the same, and all moneys belonging thereto, in the 
 manner provided by law in respect to the common-school 
 fund. And whenever it shall become necessary for the 
 purpose of meeting any charges on the said fund, to sell 
 any stocks in which such fund or any part thereof may 
 have been invested, the comptroller shall have power to 
 make such sale. 
 
BANKING CORPORATIONS. 31 
 
 § 7. The income arising from said fund, after deduct- income 
 ing thereout the salaries of the hank commissioners herein- "lowpayabie. 
 after mentioned, shall annually be paid by the comp- 
 troller to the several corporations by which the said fund 
 shall be created, in proportion to the amount which each 
 of the said corporations shall have contributed thereto; 
 but no corporation shall be entitled to any part of the 
 said income, after it sball become insolvent, or shall be 
 dissolved, or its charter shall expire. 
 
 § 8. Whenever the fund created by this act shall be paymenis in 
 
 till ^111 (» • cases of re- 
 
 reduced by the payment oi the debts oi an insolvent cor- fluowon of 
 poration, to be made as hereinafter provided, below the 
 sum as provided in the fourth section of this act, every 
 moneyed corporation then existing, which shall be subject 
 to this act, and every such corporation thereafter to be 
 created, shall, on or before the first day of January, in 
 every year thereafter, pay to the treasurer of this State, 
 such sum to be designated by the comptroller, not exceed- 
 ing a sum equal to one-half of one per cent, on its capital 
 stock, as hereinbefore provided ; which last mentioned 
 annual payment shall continue to be made by every cor- 
 poration subject to the operation of this act, until the 
 aforesaid fund shall be reimbursed, and made to amount 
 to the sum as provided in th% fourth section ; after which, 
 such annual payments shall be suspended, until it shall 
 become necessary again to resort to the said fund, by 
 reason of the insolvency of any such corporation, as here- • 
 after provided, when the said payments shall be resumed 
 in manner aforesaid ; and so on, from time to time, as oc- 
 casion may require. 
 
 § 9. "Whenever any corporation subject to the opera- Duty of 
 tion of this act, shall become insolvent, and shall be pro- ^h™ abg„j. 
 
32 GENERAL STATUTES APPLICABLE TO 
 
 becomes in- ceeded against as hereinafter provided, it shall be the 
 
 solvent. ° ^ ' 
 
 duty of the Court of Chancery, immediately after a final 
 dividend of the property and eiTects of such insolvent cor- 
 poration shall have been made among the creditors there- 
 of, to cause an order to be entered on its minutes, setting 
 forth, — 
 
 1. The total amount of debts against the said corpora- 
 tion, ascertained and established by the said court, includ- 
 ing lawful interest thereon : 
 
 2. The net amount of moneys derived from the prop- 
 erty and effects of the said corporation, and applied, 
 under the direction of said court, towards the satisfaction 
 of such debts : and, • 
 
 3. The total amount of moneys then 'requisite to pay 
 off and discharge the said debts. 
 
 Eeoeivcr Such ordcr shall also direct the receiver appointed to 
 take charge of the property and effects of the corporation, 
 to apply to, and receive from, the comptroller of this 
 State, in the manner hereinafter provided, the sum which 
 shall be required to pay off and discharge the said debts. 
 
 Datvof § 10. Upon such receiver filing with the comptroller of 
 
 comptroller. ^^^.^ State, a copy of such order, duly certified by the 
 proper officer, and countersigned by the chancellor, it 
 shall be the duty of the said comptroller to draw his 
 warrant on the treasurer, in favor of such receiver, for 
 such sum, not exceeding the amount of the bank fund, as 
 ^ may have been declared by the said Court of Chancery to 
 be necessary to satisfy the debts of the said corporation ; 
 and the moneys paid to such receiver by such warrant, 
 shall be paid out by him, under the direction of the Court 
 of Chancery, to the several creditors of the corporation. 
 
 In case of §11- If, at the time of filing with the comptroller the 
 
BANKING CORPORATIONS. 33 
 
 copy of such order, the bank fund shall be insufficient to 5^^^' fJJ"^"' 
 satisfy all the debts of the insolvent corporation, a sum 
 sufficient to satisfy the residue of such debts as shall 
 remain unpaid, shall be paid to such receiver, in the 
 manner provided in the last preceding section, out 
 of the first moneys that shall thereafter be paid to the 
 treasurer pursuant to the eighth section of this act ; 
 and the moneys so paid to such receiver, shall be paid out 
 by him in the manner req^uired in the last preceding 
 section. 
 
 § 12. The moneys so paid out of the treasury, and all Moneys paid 
 other moneys required by this act to be paid out of the.**''^**- 
 treasury, shall be a charge upon the bank fund hereby 
 created. 
 
 § 13. Whenever the charter of any moneyed corporation, on eipira- 
 
 I . . ft T • in . tionofa 
 
 subject to the provisions 01 this act, shall expire, every "Harter. 
 such corporation shall be entitled to receive its pro- 
 portional share of said bank fund, which such corporation 
 may have contributed thereto, after deducting thereout a 
 proportional part of the charges upon the said fund, and 
 which share the comptroller is hereby authorized to 
 pay to said corporation. 
 
 § 14. !N"o creditor of any insolvent corporation shall, by interest, 
 virtue of this act, receive interest upon his debt against 
 such corporation, from and after the time such order is 
 made as is required by the ninth section of this act ; nor 
 shall such creditor be entitled to interest anterior to the 
 presentation of his demand against such corporation, to 
 the receiver that shall be appointed to take charge of the 
 property and effects of such corporation. 
 
 § 15. Three persons, to be styled "the Bank Com- g^^^^^^, 
 missioners of the State of 'New York," shall be a'ppointed TuaImT' 
 
 duty. 
 3 
 
34 GENERAL STATUTES APPLICABLE TO 
 
 in the manner hereinafter provided ; whose duty, or the 
 duty of one of whom it shall be, once at least in every four 
 months, to visit every moneyed corporation upon which the 
 provisions of this act shall be binding ; and thoroughly to 
 inspect the affairs of the said moneyed corporations ; to ex- 
 amine all the books, papers, notes, bonds and other evi- 
 dences of debt of said corporations ; to compare the funds 
 and property of said corporations with the statements to be 
 made by them as hereinafter provided ; to ascertain the 
 quantity of specie the said corporations have on hand ; and 
 generally to make such other inquiries as may be necessary 
 to ascertain the actual condition of the said corporations, 
 and their ability to fulfill all the engagements made by 
 them. 
 How often § 16. It sliall bc the duty of the said commissioners, or 
 
 visit banks . . , , 
 
 some one of them, to visit and inspect the condition and 
 affairs of any moneyed corporation, more frequently than 
 once in every four months, if required so to do by any 
 three of the moneyed corporations subject to the provisions 
 of this act. 
 
 To examine § ^'^- '^^ ^^^^ Commissioners, or either of them, shall 
 have power to examine upon oath, all the ofiScers, servants, 
 or agents of said corporations, or any other person, in re- 
 lation to the affairs and condition of said corporations ; 
 which oath the said commissioners, or either of them, are 
 personally authorized to administer. 
 
 To apply for § 18- If the Said commissioners shall ascertain from 
 
 an injuiic- - . , _ , . , 
 
 tion. such inspection and examination, or in any other manner, 
 
 that any of said corporations are insolvent, or shall have 
 violated any of the provisions of their act or acts of in- 
 corporation, or of any other act binding on such corporations, 
 the said commissioners shall immediately apply to the court 
 of chancery, upon bill or' petition, for an injunction against 
 
BANKING CORPORATIONS. 35 
 
 such corporation and its officers ; and the same proceedings 
 shall in all respects be had, and the court shall possess the 
 like powers upon such application, as are provided by law, 
 in respect to such applications, when made by the attorney 
 general, or by any creditor. 
 
 § 19. It shall be the duty of the said commissioners, in To reMrt to 
 
 " •' 'the legisla- 
 
 the month of Janiiary in each year, to report to the legis- '"^' 
 lature, the manner in which they have discharged the 
 duties imposed upon them ; and to accompany such report 
 by such abstracts frora the reports made to them, and by 
 such other statements as they may deem useful, 
 
 §§ Twenty^ twenty-one, and twenty-two, as to the Tnanner 
 of appointing hank commissioners, were repealed l>y chap. 
 74:0/1837. 
 
 § 23. The said commissioners shall hold their offices for ^ toJioH of- 
 
 u flee for two 
 
 two years, but shall be at any time removable by the ''*''"'''■ 
 governor for misconduct or neglect of duty. 
 
 § 24. Before the said commissioners shall enter upon the o** »' "f- 
 execution of the duties of their office, they shall severally 
 take the constitutional oath of office, before the secretary 
 of state or some one of the circuit judges or judges of the 
 county courts of any county ; and within ten days there- 
 after shall cause such oath, certified by the officer before 
 whom it was taken, to be filed in the office of the secretary 
 of state. 
 
 S 25. The said commissioners shall not disclose the sfotto<iis- 
 
 o close namea 
 
 names of the debtors of any moneyed corporation examined ^J'^*"""- 
 by them, or any information obtained in the course of such 
 examination, unless required in a court of justice, or in the 
 course of some proceeding authorized by this act. 
 
 S 26. There shall be allowed to each of said commission- Their 8«ia- 
 
 ° lies. 
 
 ers the annual salary of fifteen hundred dollars, to be paid 
 quarterly out of the bank fund. 
 
36 GENERAL STATUTES APPLICABLE TO 
 
 issnes of 8 27. It shall not be lawful for any moneyed corporation 
 
 banknotes. ° .... 
 
 ereubdif's *° issue, or to iave outstanding or in circulation, at any 
 "" ' ■ time, an amount of notes or bills loaned or put in circula- 
 tion as money, exceeding twice its capital stock then paid 
 in and actually possessed ; nor shall its loans and dis- 
 counts at any time exceed twice and a half of the amount 
 of its capital stock so paid in and possessed. [See note 3, 
 p. 4, ante.] 
 oorpontion § 28. If any such moneyed corporation shall violate the 
 dissolved, -^g^gj. preceding section ; or shall neglect to make any annual 
 payment to the treasurer of this State, required by this act, 
 for the space of three months after the time when the 
 same ought to have been made, and after being notified of 
 such delinquency by the comptroller of this State ; or shall 
 have lost one half of its capital stock paid in ; or shall 
 have suspended the payment of its bills in specie for 
 ninety days ; or shall refuse to allow the officers of such 
 corporation to be examined upon oath by the said com- 
 missioners, in relation to the affairs and condition of 
 such corporation, every such corporation may be proceed- 
 ed against by the said commissioners, and dissolved by 
 the chancellor, as an insolvent corporation, as hereinbefore 
 provided, 
 fai^rstote-'" § ^^' -^'^^'■y officer, agent, or clerk of a moneyed cor- 
 ment3,&o. pQi-^tion, who shall make false statements or false entries 
 in the books of such corporation, or shall exhibit false 
 papers with intent to deceive said commissioners as to the 
 condition of such corporation, shall be deemed guilty of 
 felony, and shall be subjected to imprisonment in the state 
 prison, for a term not less than three, nor more than ten 
 years. 
 Liability of § 30. The fourtecuth, fifteenth, sixteenth, seventeenth, 
 
 stockbolders, " 
 
 Chap. 18 of and eighteenth sections of the second Title of the eight- 
 
BANKING COBPOEATIONS. 37 
 
 eenth Chapter of the first Part of the Eevised Statutes, i k. s. modi- 
 
 ■^ 'fled. 
 
 SO far as they provide for the personal liability of the 
 stockholders of any insolvent corporation, shall not apply 
 to any corporation subject to the provisions of this act ; 
 but the directors of every corporation subject to this act 
 shall be liable to the stockholders thereof, as provided in 
 the said sections. {See note Q,p. 13, ante.] 
 
 % 31. The nineteenth, twentieth, twenty-first, twenty-se- Ammai 
 
 ■^ ' ^ J ■> J statement 
 
 cond, twenty -third, and twenty-fourth sections of the second f ^ ''s^^i"^^;. 
 
 fled. 
 
 Title of the eighteenth Chapter of the first Part of the E.e 
 vised Statutes, shall be and are hereby so far modified, in 
 respect to the corporations subject to this act, that the state- 
 ments therein required shall be made to the bank commis- 
 sioners, instead of the comptroller ; and the powers there- 
 in conferred on the comptroller, shall not extend to any 
 such corporation. [See note 6, p. 13, cmte.] 
 
 § 32. No stockholder of any moneyed corporation hav- commission- 
 ers, not to be 
 ing banking powers, shall be appointed a commissioner stockhoideis. 
 
 under and by virtue of this act ; and it shall not be lawful 
 for the said bank commissioners, or either of them, di- 
 rectly or indirectly to purchase, or in any manner what- 
 ever to be concerned in any bank stock in this State. 
 
 §33. Every moneyed corporation subject to this act, g^j;^^^;^^^. 
 shall be entitled to receive the legal interest established, ^'^^' 
 or which may hereafter be established, by the laws of this 
 State, on all loans by them made, or notes or bills by 
 them severally discounted or received in the ordinary 
 course of business ; but on all notes or bills by them dis- 
 counted or received in the ordinary course of business, 
 which shall be mature in sixty-three days from the time of 
 such discount, the said moneyed corporation shall not take 
 or receive more than at and after the rate of six per cen-i 
 tum per annum, in advance. 
 
38 GENERAL STATUTES APPLICABLE TO 
 
 Capital stock §34. Every moneyed corporation subject to this act, 
 hereafter to be created, shall before it makes any loans or 
 discounts, have all its capital actually paid in ; which pay- 
 ment shall be proved, on oath, to the satisfaction of the 
 bank commissioners, before any such loans or discounts 
 shall be made ; and every moneyed corporation, whose char- 
 ter shall be hereafter extended, shall, within one year 
 after such extension takes effect, pay in all its capital, to be 
 proved in like manner to said bank commissioners ; but 
 every such moneyed corporation, whose charter shall be so 
 hereafter extended, shall be permitted to reduce its capital 
 stock to any silm not below the amount actually paid in 
 at the time of the renewal of its charter ; but such corpo- 
 ration shall, within one year from and after the time of 
 such renewal, file with the comptroller a certificate, under 
 the seal of the corporation, setting forth the sum to which 
 its capital stock is to be reduced, as aforesaid ; the filing 
 of which certificate shall exempt such corporation from 
 the operation of this section, as to so much of its capital 
 stock as shall be reduced in the manner above stated. 
 The issne of § 35. No moneyed corporation subject to the provisions 
 prohibited, ^f {-iijg ^ct, shall issue any bill or note of the said corpora- 
 tion, unless the same shall be made payable on demand, 
 and without interest. (14) 
 
 (14) By § 1 of this Act, it is enacted, itat " every moneyed corporation 
 having banking powers, hereafter to be created in this State, or whose char- 
 ter shall be renewed or extended, shMl be subject to the provisions of this Act." 
 The Act is entitled, " An Act to create a fund for the benefit of certain 
 moneyed Corporations, — and for other purposes." 
 
 By §52 (p. 23, ante) of the General Code of Statute Regulations, amended 
 by this act of April 2d, 1829, it is declared, that " the provisions of this 
 Title shall be construed to apply to every moneyed corporation created" after 
 January 1, 1828, "unless such corporation shall be expressly exempted (rom the 
 provisions of this Title, in the act creating, renewing, or extending such 
 corporation." (1 R. S. 599, § 52.) 
 
 In October, 1852, the Court of Appeals, in the case of Talmage v. Pell, 
 
BANKING CORPORATIONS. 39 
 
 RESTRAINING ACT OF 1830. 
 
 (1 Revised Statutes, pp. Yll, Y12, 713.) 
 
 TITLE XX. 
 
 OF UNAUTHOEIZED BA:NKmG, AND THE CIE" 
 ' CFLATIOlSr OF CERTAIN NOTES OR EVID- 
 ENCES OF DEBT ISSUED BY BANKS. 
 
 § 1. No person unauthorized by law shall subscribe to, AasociaMons 
 
 or J f„r certain 
 
 or become a member of, or , be in any way interested in, p™''jpf,,^,"^". 
 any association, institution, or company, formed, or to be aotofj!'ob.4, 
 
 hdd : — " That every association organized under the act to authorize the 
 business of banking, and the acts amending the same, is a moneyed corpor- 
 ation within the meaning of the Statutes of this State relating to moneyed 
 corporations, — and is bound and affected by those statutes — excepting only 
 so far as such statutes are inconsistent with the provisions either of the act 
 to authorize the business of banking, or of the acts amending the same ;" — and 
 also held, — " That such associations are banking corporations, and possess only 
 authority to carry on the business of banking in the manner and with the 
 powers specified in the said act;" (3 Selden, 328, 347, 348.) 
 
 The Safety Fund Banks have, among their express powers, the general 
 unrestricted express power to carry on the business of banking, " by issuing 
 bills, notes, and other evidences of debt ;" — yet, these banks were expressly pro- 
 hibited by the above § 35 from issuing any bill or note payable on time, — or 
 payable with interest. {See Safety Fund Charters, § 3 or § 4.) 
 
 This general express power " to issue bills, notes, and evidences of debt," 
 is not granted to banking corporations formed under the General Bank Act 
 of 1838. {Laws 1838, p. 249, § 18.) But these corporations are authorized 
 to loan and circulate, as money, countersigned promissory notes (" received 
 from the Comptroller ";)aya6'e on demand), " according to the ordihai-y course 
 of banking business, as regulated by the laws and usages of this State." 
 {Laws 1838, p. 246, § 3.) 
 
40 GENERAL STATUTES APPLICABLE TO 
 
 1887, In note formed, for the purpose of receiving deposits, making dis- 
 cpunts, or issuing notes or other evidences of debt to be 
 loaned or put in circulation as money ; nor shall any per- 
 son unauthorized by law, subscribe to, or become in any 
 way interested in, any bank or fund created, or to be 
 created, for the like purposes or either of them. ( 15 ) 
 
 There is no clause or proTision in the General Bank Act expressly 
 exempting banking associations, formed under it, from the operation qf any 
 of the provisions of the general code of statute regulations of 182'7, as 
 amended by the act of April 2d, 1829. The provisions of this amendatory 
 act relating to the creation of a " Bank Fund," are inapplicable to associa- 
 tions under the general law of 1838, not because such associations are not 
 " moneyed corporations having banking powers," but for the reason, that the 
 issues of such associations, are placed under the direction of the State Comp- 
 troller, and are secured in full by specific pledges of State stocks, Ac, with 
 that officer. But it cannot be pretended that the proliibition contained in 
 the above 35th section is inconsistent with any section or provision of the 
 General Bank Act. Besides, the settled -policy of this State, as to the issue 
 of post-notes or post-bills by banks, remained unchanged at the time of the 
 passage of the General Act of April 18th, 1838. 
 
 As to the repeal of former statutes hy implication, see Bowen v. Lease 
 (6 Hill, 221). 
 
 As to the issue of post-notes or post-bills by moneyed corporations, see 
 Leavitt V. Palmer (3 Comstock, 19); Bank Commissioners v. the St. Lawrence 
 Sank (3 Selden, 613); Talmage y. Fell (3 Selden, 328) ; Saffordv. Wyckoff 
 (1 Hill, 11 S. C; 4 Hill, 442); Bank of Orleans v. Merrill (2 Hill, 295); 
 Smith & Warner v. Strong (2 Hill, 241); Swift v. Beers (3Denio, 70); Attor- 
 ney General v. Life Ins. and Trust Company (9 Paige, 471); Ontario Bank v. 
 Schermerhorn (10 Paige, 109) ; Leavitt v. Yates (4 Edw. Ch. E. 134) ; TylecY. 
 Yates (3 Barb., S. C. K. 222); Bank of Chillicothe y. Dodge (8 Barb., S. C. R. 
 233J. 
 
 See, also. Boot v. Godard (S McLean, 102) ; Hayden v. Savis (3 McLean, 
 276) ; Root V. Wallace (4 McLean, 8) ; Davis v. The Bank of the River Raisin 
 (4 McLean, 387). 
 
 See, also, Southern Loan Company v. Morris (2 Barr's Penn. R. 175) ; In 
 the Matter of the Ohio Life Insurance and Trust Company (9 Ohio, 291) ; 
 Lawler v. Walker (18 Ohio, 151). 
 
 See, also, § 4 of the act of May 14, 1840, and note thereon, post. 
 
 (15) TheReviser^ Notes on Title XX. are as follows (3 R. S., 2 ed,p. 562)- 
 "§ 1 as reported; enlarged as enacted '§ 1. No person unauthorized by 
 law shall subscribe to or become a member of any association, institution, or 
 
BANKING CORPORATIONS. 41 
 
 § 2. Whoever shall subscribe to or become a member Penalty. 
 in. any sucli company, or interested in any such bank or 
 fund, shall forfeit one thousand dollars. 
 
 § 3. No incorporated company, without being author- j^^gtu""" 
 ized by law, shall employ any part of its effects, or be in corporations 
 any way interested in any fund that shall be employed for f^^ ^ ^^''^■ 
 the purpose of receiving deposits, making discounts or 
 issuing notes or other evidences of debt, to be loaned, or 
 put into circulation as money. [See note 16.] 
 
 §4. Any director, br other agent or officer, of any in- Pmaity. 
 corporated "company, who shall violate any provision of 
 the last section, shall forfeit one thousand dollars. 
 
 § 5. All notes and other securities for the payment of ^ ah notes, 
 
 " X */ ,fcc., on for- 
 
 any money, or the delivery of any property, made or given tum!" '"""^ 
 to any such association, institution, or company, that shall 
 
 company, or in any way interested in any bank or fund, formed or created for 
 the purpose of receiving deposits, making diaoonnts, or issuing notes, or 
 other evidences of debt, to be loaned or put in circulation as money.'" Ori- 
 ginal Note. — " 2d section of act of 1813, 2 E. L. 234. The prohibition in 
 the existing law against transacting ' any other business which banks may 
 transact,' is supposed to be more extensive in its terms than could have been 
 contemplated. The object of the legislature doubtless was, to prohibit every 
 species of banking business. That object the Revisers have endeavored to 
 attain by a more precise definition of that business." 
 
 [§§ 2, 3, same as enacted.] Original Note to § 3 : "New. It is drawn to 
 remove a doubt which is supposed to exist in the construction of the present 
 act." 
 
 [§§ 4, 5, 6, same as enacted.] Original note to §6 : " 1st section of the 
 act of 1818, p. 242, varied in conformity to the principles suggested in the 
 note to the first section.'' 
 
 [§§ 7, 8, 9, same as enacted.] Original note to § 9 : " § 1, 2, K. L. p. 234, 
 varied as to common informers.'' 
 
 [§§ 10, 11, 12, same as enacted.] 0W(/J7iaZno<eto §12: "Laws 1816-17, 
 p. 12, omitting the restriction upon banks against issuing £uch notes, as be- 
 ing a questionable exercise of power, and varying the language so as to ar- 
 rive at the supposed intent of the legislature." 
 
 [§ 13, same as enacted.] Original note: "The acts of 1813 and 1818 
 require the suits to be brought by the Attorney General. It is believed 
 that the duties of that office are so numerous that the district attorneys will 
 be more likely to attend to the collection of these penalties." 
 
42 GENERAL STATUTES APPLICABLE TO 
 
 be formed for the purpose expressed in the first section of 
 this Title, or made or given to secure the payment of any 
 mone}'' loaned or discounted by any incorporated company, 
 or its officers, contrary to the provisions of the third sec- 
 tion of this Title, shall be void. 
 Persons and 8 6. No pcrson, association of persons, or body corporate, 
 
 corporations ox? i. 
 
 ™p^sdp except such bodies corporate as are expressly authorized 
 ?y?a«>,not by law, shall keep any office for the purpose of receiving 
 te'slS deposits, or discounting notes or bills, or issuing any evi- 
 note 18, ™<Hi«. deuces of debt, to be loaned, or put in circulation as 
 money ; nor shall they issue any bills or promissory notes 
 or other evidences of debt as private bankers, for the pur- 
 pose of loaning them, or putting them in circulation as 
 money, unless thereto specially authorized by law. [See 
 note 16.] 
 
 (16) In the case of Warner v. Beers (23 "Wendell; 115, 158, 159, 188), it 
 was conceded by the counsel of all the parties, as wejl as by the judges, that 
 the General Banking Law was simply a conditional repeal of the Restrain- 
 ing Act of 1830. In other words, it only authorized associations, formed 
 under it, to issue a certain kind of promissory notes for the purpose of being, 
 loaned, or put in circulation as money, leaving the restraining law in full 
 force as to every other evidence of debt. " Certain conditions,'' says Ver- 
 planck, Senator, " are imposed to entitle them to the benefit of this condi- 
 tional repeal. T/iej/ can issue no paper, unless it be secured in a certain way, 
 and duly attested by the Comptroller. The very same conditions are imposed 
 on every individual whp thinks fit to engage in this business." (23 Wend. 
 169.) 
 
 In Safford v. Wychoff (4 Hill, 444), the Chanoellok said, — " The act of 
 1838, which only authorizes a certain kind of notes to be put in circulation 
 as money, leaves the restraining law in full force as to every other etiidmce of 
 debt. These banking associations, therefore, are prohibited from issuing any 
 bills or promissory notes, or other evidences of debt, for the purpose of loan- 
 ing them, or having them put in circulation as money, — whatever forms such 
 evidences of debt_may assiune." See also the opinion of Senator Bockee to 
 the same eifect, in Safford v. Wyckoff. (4 Hill, 463.) See also Leavitt v. 
 Tates (4Edw. Ch. R. 134, 170, 183). 
 
 The Chancellor, in the case of The Attorney General v. The Life andMre 
 Insurance Company (4 Paige, 224; 9 Paige, 471), held, that the promissory 
 notes issued by that Company (called lAfe and Fire Bonds') were illegal and 
 void, that there was sufficient on the face of these bonds to show that they 
 
BANKISG CORPORATIONS. 
 
 43 
 
 § 1. Every person and every corporation, and every Penalty. 
 member of a corporation, who shall contravene either of 
 
 -were intended as a circulating medium. The follpwing is an exact copy of one 
 of the "Life and Fire Bonds :'' 
 
 i 
 
 
 
 — 
 
 Vignette. 
 
 
 
 
 2 
 
 Dollars 
 
 5000. 
 
 
 
 No. 4655. 
 
 
 
 
 
 
 
 
 s 
 
 THE LIFE 
 
 
 AND FIEE 
 
 
 — 
 
 INSDEANCE 
 
 
 COMPANY 
 
 
 
 promise to pay Five 
 order, at their office, 
 
 Months after date, Geo. W. Gantz, or his 
 Five Thousand Dollars, with interest at the 
 
 
 rate of ^1^ per cent, per annum from the date hereof: interest 
 payable quarterly. For the payment whereof the Company bind 
 themselves and their successors, and have hereunto caused their 
 
 o 
 
 K 
 
 2 
 
 President and Secretary to subscribe their names. 
 
 H 
 
 
 New Yokk, Makoh 30th, 1829, 
 
 _ 
 
 
 J. G. Swift, Asst. Prest. 
 
 — 
 
 <£ 
 
 M. L. Davis, Sec. 
 
 
 iJ 
 £ 
 
 
 o 
 
 (Endorsed.) 
 
 — 
 
 Geo. W. Gantz. 
 
 
 In 1840 and 1841, 7%e North American Trust and BanMng Company (an 
 association under the General Banking Law), issued 800 promissory notes, 
 dated December 15th, 1840, payable 13 months after date, with interest, all 
 for the sums of $1,000 or $500, called "Yates Trust Notes." Vice Ghancel- 
 LOK McCons, in 1843, iaLeavitt T. Yates (4Edw., Ch. R. 134, 170, 183), held, — 
 that the Restraining Act of 1830 " was applicable to all banking associations 
 and individual bankers, except so far as it is modified by the provisions of 
 the General Banking Law allowing the issue of bills for circulation as 
 money, countersigned by the Comptroller" (pp. 170, 17 1) ; and Vice Chancellor 
 McGoun also held, in that case, — that the 800 "YatesTrust Notes" had so far 
 the character of circulating notes as to be within the prohibitions of the 
 Restraining Act, as well as of the Act of May 14, 1840, and were therefore 
 illegal, — and also, that they were void, because not based upon securities 
 pledged with the Comptroller, nor intended to be counter nigned by that 
 officer. The following is an exact copy of on e of the 800 " Yates Trust Notes." 
 
M 
 
 GENEKAL STATUTES APPLICABLE TO 
 
 Bank bills 
 under 1 1, not 
 
 the provisions in the last section, or, directly or indirectly, 
 assent to such violation, shall forfeit one thousand dollars. 
 § 8. No person shall pay, give, or receive in payment, or 
 
 $1,000 Dlls. No. 100. 
 
 New Yoek, December 15 th, 1840. 
 Thirteen Months after date, the NORTH AMERICAN 
 TRUST & BANKING COMPANY promise to pay at their 
 Banking Hmise. to the order of Mam H. Gibbs, for value received, 
 the sum of ONE THOUSAND DOLLARS, with interest there- 
 on at the rate of seven per centum per annum. 
 
 Thos. G. Talmage, President. 
 
 D. E. Tylee, Cashier. 
 
 The payment of this obligation, with others, amounting 
 
 in the aggregate to $600,000, is guarantied by the transfer of 
 securities, estimated at $800,000, under a Deed of Tkost, exe- 
 cuted between the OompaQy and Henkt Yates, Thomas G. Tal- 
 MAGE, and William CuKTis Noyes, Trustees, bearing even date 
 herewith. 
 
 The Supreme Court (Justices ShanHand, Oray, and Sill), in Ti/lee v. Tales 
 (3 Barb., S. C. E. 222), held, in 1848, that the "Yates Trust Notes" were ille- 
 gal and Toid. 
 
 July 10th, 1839, Washington Sunt executed his bond to The North 
 American Trust and Banking Company (a corporation formed under the 
 General Bank Act), in the penal sum of $"75,000, conditio^ied for the pay- 
 ment of $35,000 in 11 months, with interest. An action of debt on this 
 bond was brought in the Supreme Court by that Company against Hunt. 
 On the 9th day of October, 1844, the cause was referred by said Supreme 
 Court to the Hon. Hiram Denio, as sole Refebee to hear and determine the 
 same. 
 
 On the 3d day of July, 1846, said Referee, after hearing William Curtis 
 Noyes, Esq., for' the plaintiff, and A. C. Bradley, Esq., for the defendants, 
 reported that he found nothing due from the defendant to the plaintiff, and 
 made his report accordingly, accompanied with an elaborate opinion. It ap- 
 peared, by the admissions of the parties in this case, that the only conside- 
 ration given bythe said Company io Hunt, was 35 certificates of deposit issued 
 by said Company to Hunt, at the date of said bond, each for $1,000, pay- 
 able 12 months after date, with interest at the rate of five per centum per 
 annum j all of said certificates of deposit being in the form following : — 
 
BANKING CORPORATIONS. 
 
 45 
 
 in any way circulate, or attempt to circulate, any bank bill \^^l^^ '='''™- 
 or promissory note, chock, draft, or other evidence of debt, 
 
 NORTH 
 
 $1000. 
 
 AMERICAN 
 No. 9. 
 
 TRUST & BANKING COMPANY, 
 
 NEW YOEK. 
 
 JEfifs IS to ffievtifs, That there has been deposited with the 
 NORTH AMERICAN TRUST & BANKING COMPANY, by 
 Washington Hunt, the sum of One TuouaAND Dollars, which 
 sum the said Company hereby engage to repay to the holder of this 
 Certificate, upon the surrender thereof, iii Twelve Months from 
 the date hereof, with interest at the rate of five per cent, per annum 
 
 Waltek Mead, Cashier. 
 
 New Yokk, July \ith, 18 
 
 J. D. Beers, President. 
 
 The learned Referee, in his opinion in this case (occupying 14 printed 
 pages), after stating the provisions of § 3 and § 5 of the Restraining Act of 
 1830, and after showing that the certificates of deposit issued to Hunt were 
 promissory notes as well as evidences of debt, proceeds as follows : 
 
 " III. Were the certificates issued to be loaned ? To make the security- 
 void, the notes, or other evidences of debt, must be issued " to be loaned, or 
 put in circulation as money." If the words " as money " are used only to 
 qualify the words "put in circulation," then the inquiry simply is, whether 
 the paper was in fact loaned ! But if the final words qualify the whole 
 sentence, then they must be loaned as money. The general rule is, that 
 qualifying words relate to the immediate antecedent, unless the sense of 
 the whole requires a different construction. I do not see that the sense here 
 requires a construction different from the grammatical one. But conceding 
 that the latter construction is the true one, I think that if the certificates 
 were loaned at all, they were loaned as money. The meaning of such an 
 expression I take to be that they were loaned as money is loaned, or loaned 
 as thougli they were money, not to be returned specifically, or in kind, or 
 upon a contract that the maker shall be indemnified ; but loaned to be 
 returned, dollar for dollar, as though they were actually the money which 
 they profess to represent. Such was the contract here, if it was a loan. It may 
 be said that it should read as though it were written, " loaned to be used as 
 money.'' This would be equivalent to "putting in circulation as money," and 
 would render the sentence tautological. 
 
 " If the certificates were in truth loaned to the defendant, it will be im- 
 
46 GENERAL STATUTES APPLICABLE TO 
 
 issued by any banking company within this State, or else- 
 ■where, which shall purport to be for the payment of a less 
 sum of money than one dollar. 
 
 possible to say that they were not.issned for that purpose. They were- 
 unquestionably made and executed in reference to that transaction ; for they 
 had no vitality until issued to the defendant, and are filled up with his name 
 as the party to the consideration upon which they were given. 
 
 "In a general sense, this was as much a sale as a loan; it included both. 
 There is no evidence that the defendant applied for or needed a loan. All 
 that I can know is, that he i-cceived the certificates, and for them gave hia 
 bond with collateral security. But in the business of banking (and words 
 must be used with reference to the subject matter) such a transaction is con- 
 sidered a loan. One goes to a bank with his note satisfactorily endorsed, 
 and receives an equal amount of the notes of the bank. This is called a 
 loan. He is not expected to return the same or similar notes, or any notes. 
 His engagement is to return an amount of money equal to the face of the 
 notes which he receives, with the interest, imless that is paid in advance. 
 This is what the defendant did in this case ; and if it is not a loan, the ordi- 
 nary act of procuring a note to be discounted, and receiving the avails in 
 the notes of the institution which made the discount, would not be a loan 
 of the notes. The legislature must be taken to have spoken with reference 
 to the transactions of banking institutions, and to have used language in 
 the sense in which it is employed in speaking of such transactions. My 
 opinion, therefore, is, that the certificates were loaned; and as they were 
 issued to be used in that very transaction, they were, no doubt, issued to 
 be loaned. 
 
 "The view which I have taken of the statute renders it necessary to dis- 
 cuss the question, whether these certificates were capable of being circulated 
 as money. They would certainly be a very imperfect substitute for a cir- 
 culating medium, even if the makers were of undoubted responsibility. 
 Their large amount, the long time they had to run, and the interest reserved, 
 are all circumstances which would prevent their filling the place of money 
 in ordinary transactions. Still, if issued by a perfectly sound company, and 
 of undoubted, validity in a legal point of view, they would perform many of 
 , the offices of money in large transactions. Treasury notes, issued by the 
 general government, which in form they very much resemble, were exten- 
 sively used for remittances, and in payment for commodities. They have 
 certainly a more close resemblance to bank notes than the drafts which 
 were held to be void in Saffordr.Wykof (1 Hill U), and Smithy. Strong 
 (2 Id. 241). Those drafts were apparently made for the purpose of transfer- 
 ring funds in the hands of third parties to the payee, and would not be 
 available against any party without a jv'esentment for acceptance, or against 
 the drawers or endorsers, without a protest for non-acceptance, or non-pay- 
 ment and notice. But yet the Supreme Court held them void as being cir- 
 culating notes issued contrary to the policy of the general banking law. I 
 
BANKING CORPORATIONS. 47 
 
 § 9. "Whoever shall offend against any provision of the ^^''^'y- 
 last section, shall forfeit the nominal amount of the bill, 
 promissory note, check, draft, or other evidence of debt so 
 given, paid, received, circulated, or attempted to be cir- 
 
 am aware that the first of these eases has been reversed by the Court for the 
 Correction of Errors ; but this may have been, and probably was, upon the . 
 ground that the plaintiff was a bona fide endorsee. In the other ease, the 
 draft was drawn subsequently to the Act of 1840 (Statutes 1 840, p. 306, § 4), 
 which forbids banking associations from issuing any bills or notes not paya- 
 ble on demand, and without interest ; but the decision was placed upon the 
 general ground that the draft was calculated to circulate as money. These 
 cases go much farther than would be necessary, in order to hold that the 
 certificates in question are circulating notes, issued contrary to the general 
 banking law. , 
 
 " Second, If these certificates would have been void, if issued under the 
 circumstances stated in the stipulation, by a corporation not authorized to 
 carry on the business of banking, were the plaintiffs, an institution under 
 the general banking law, authorized by law to issue them ! 
 
 " The business of banking embraces several distinct operations ; » prom- 
 inent one is the issuing evidences of debt, to be loaned or put in circula- ^ 
 tion as money. The eighteenth section of the banking law professes to define 
 the business to be carried on by these institutions. It is not the business of 
 banking generally, leaving those terms to be defined with reference to the 
 general usage and practice of the country upon that subject, but that busi- 
 ness in certain of its branches, with such incidental powers as may be neces- 
 sary to carry it on ; and in the enumeration, the faculty of loaning or issuing 
 its own engagements is not mentioned. As to every thing which is enumer- 
 ated, it is clear that the restraining acts are repealed gaoatZ these institutions. 
 In respect to any branch of banking business not enumerated, these acts still 
 operate in their full force upon the associations, as they do upon all other 
 corporations, and upon the community generally. Although the section is 
 silent upon the subject of issues, other parts of the act provide for the omis- 
 sion, by authorizing the issue of circulating notes of a particular oharaicter, 
 the payment of which is secured by a special pledge to be made under the 
 supervision of a state officer. 
 
 " The Title of the Revised Statutes concerning the general powers, priv- 
 ileges, and liabilities of corporations {Vol. \, p. 600), is applicable to these 
 institutions. By § 3 it is declared, that, besides the powers enumerated in 
 the first section (which are certain matters essential to the being of every 
 corporation), and those expressly given by the act under which it is incorpo- 
 rated, — * no corporation shall possess or exercise any corporate powers except 
 such as shall be necessary to the exercise of the powers so enumerated and 
 given.' " 
 
 Since the said Referee's report and opinion in the case of Washington 
 Hunt, the Court of Appeals has decided the cases of Gitlett v. Moody, Tai- 
 
48 GENERAL STATUTES APPLICABLE TO 
 
 culated, to any person who will sue for the same, in the 
 
 name of the overseers of the poor of the town where the 
 
 offence is committed, with their consent and tinder their 
 
 direction, in an action to be commenced within thirty days 
 
 after the commissioii of the offence. 
 
 Bank bills, §10. JSTo person shall givc, pay, or receivc in payment, 
 
 (tthMwf/i'''' °^ ^^ ^^J '^^y circulate, orattempt to circulate, any bank 
 
 ful'money'of bill, or any promissory note, bill, check, draft, or other 
 
 the U. 8. 
 
 eyidence of debt, issued by any banking company what- 
 ever, which shall be made payable otherwise than in law- 
 ful money the United States. 
 PmaUff § 11. Every person offending against any provision of 
 payawe'' '''""''^^ last sectiou, shall forfeit the nominal amount or value 
 than inlaw- of such bill, note, or other evidence of debt so given, paid, 
 
 fill money of 
 
 the U.S. received, circulated, or offered, to any person who will 
 sue for the same, in the name of the overseers of the poor 
 of the town where the offence shall be conimitted, with 
 their consent and under their direction, in an action to be 
 commenced within sixty days after the commission of the 
 offence. ( 17 ) 
 
 mage v. Pell, and the Bank Commissioners v. TAe St. Lawrence Bank (3 
 Comsfc. 479; 3 Selden, 328 and 613). 
 
 DECISIONS OF THE COURTS UPON THE RESTRAINING ACTS. 
 
 3 Wend. 582 ; Beach v. Mtlton Bank. 
 
 1 Wend. 286; Pennington v. Townsend. 
 
 1'7 Wend. lYO ; De Groot v. Van Duzer. 
 
 20 W end. S90; The Same Case. 
 
 25 Wend. 648 ; New Hope, Del, B. Co. v. Poughkeepsie Silk Co. 
 
 4 Paige, 226 ; Atty. Oen. t. Life and Fire Ins. Co. 
 
 1 Paige, 653, 654; Pratt v. Adams (Slate Bank at Mizabeth). 
 9 Paige, 471 ; Atty. Oen. v. Life and Mre Ins. Co. 
 
 3 Sand. Ch. R. 286 ; Green v. Seymour. 
 
 4 Edw. Ch. R. 134 ; Leavitt v. Yates. 
 
 2 Barb. Ch. R. 301 ; Taylor v. Bruen. 
 
 (17) Whenever in the Revised Statutes, or any other statute, words im- 
 porting the plural number aire used, in describing or referring to any mat- 
 
BANKING COEPORATIONS. 49" 
 
 § 12. All bills, notes, or other instruments which shall certain miis 
 
 T . T T IT* • T declared to 
 
 be issued by any banking company, purporting to be re- be promis- 
 ceivable in payment of debts due to such company, shall 
 be deemed and taken to be promissory notes for the pay- 
 ment, 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. 
 
 § 13. The penalties prescribed in this Title, where no penalties 
 other provision is made, shall be recovered by suits in thest^dfor. 
 name of the people of this State, to be prosecuted by the 
 district attorneys of the counties respectively where the 
 ofl^nces may be committed. All penalties herein pre- 
 scribed, when collected, shall be paid to the county trea- 
 surer of the county, for the use of the poor thereof. ( 18 ) 
 
 ters, parties, or persons, any single matter, party or person, shall be deemed 
 to be included, although distributive words may not be used ; — and when 
 any subject, matter, party, or person, is described or referred to by words 
 importing the singular number, or the masculine gender, several matters 
 and persona, and lemales as well as males, and bodies corporate, as well as in- 
 dividuals, shall be deemed to be included; and these rules of construction 
 shall apply in all cases, unless it be otherwise specially provided, or unless 
 there be something in the subject or context repugnant to such construc- 
 tion." (2 R. 8., 118, § 11.) 
 
 (18) AMENDMENT OF THE EESTEAINING ACT. 
 
 {Laws 1837, Ohap. 20, p. 14.) 
 An Act to repeal in part the Revised Statutes, relating to unauthorized 
 
 banking, and the circulation of certain notes or evidences of debt issued 
 
 by banks. Passed February 4, 183Y. 
 The People of the State of New York, represented, in Senate and Assembly, do 
 
 enact as follows : 
 
 § 1. So much of title twenty, chapter twenty, part first, of the Revised 
 Statutes, relating to unauthorized banking, and the circulation of certain 
 notes br evideneea of debt issued by banks, as prohibits a person^or associa- 
 tion of persons not incorporated, from keeping offices for the purpose of 
 receiving deposits, or discounting notes or bills, is hereby repealed. 
 4. 
 
50 GENERAL STATUTES APPLICABLE TO 
 
 OF PROCEEDINaS AGAINST CORPORATIONS, 
 n EQUITY. 
 
 CHAP. YIII. TITLE IV. PAET III. (2 E. S. 461.) 
 
 TOOK EFFECT JAN. 1, 1830. 
 
 AETICLE SECOND. 
 
 Sec. 31. Authority of Chancery to reatrain -usurpation of corporate po-wers, 
 
 32. When injunction may be issued, <fec. 
 
 33. Jurisdiction of Chancellor over officers of corporations. 
 
 34. Other visitatorial powers not affected by the last section. 
 85. Preceding powers, (fee., how exercised. 
 
 36. "Whien property of corporation to be sequestered. 
 
 37. Upon final decree, distribution how to be made. 
 
 38. Certain acts and omissions of corporations to dissolve them. 
 
 39. When use of rights of certain corporations may be restrained. 
 
 40. On whose application and what proof, injunction to issue. 
 
 41. Receivers, when to be appointed, (fee. 
 
 42. Their general powers and duties. 
 
 43. When and how directors and stockholders may be made parties- 
 
 44. How made parties after a decree. 
 
 45. Jurisdiction over stockholder, <Scc., for debts of corporation. 
 
 § 2. This act shall not be so construed as to authorize or permit any cor- 
 poration created by the laws of any other State or country, to 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. 
 
 § 3. No incorporated bank in this State, nor any officer or director 
 thereof, shall open or keep an office of deposit or discount under this act, or 
 be interested or concerned, directly or indirectly, in any such association ; 
 the bank officer or director shall forfeit the sum of one thousand dollars for 
 each violation of any of the provisions of this section. 
 
 § 4. This act shall take effect on its final passage. 
 
BANKING CORPORATIONS. 51 
 
 46. Proceedings on bills filed by creditors. 
 
 47. Decree when corporation is insolTent. 
 
 48. Distribution of property of corporation. 
 
 49. Wlien stockholders compelled to pay up arrears on their stock. 
 
 50. Liabilities of directors and stockholders, how enforced. 
 61. Discovery by corporations, may be compelled. 
 
 52. "When ofiioers, stockholders, Ac, compelled to discover. 
 
 53. Answers of officers, how far evidence. 
 
 54. Answers in what cases only compelled. 
 
 55. Persons compelled to answer exonerated from prosecution, <fec. 
 
 56. When proceedings at law against coi-porations to be stayed. 
 
 57. Corporations excepted from the provisions of this article. 
 
 § 31. Upon a bill being filed by the attorney general injections 
 
 1 n 1 n 1 against cor- 
 
 in tbe court of chancery, the chancellor shall hav'e power poratione, 
 to restrain by injunction any corporation from assuming or 
 exercising any franchise, liberty, or privilege, or transact- 
 ing any business, not allowed by the charter of such cor- 
 poration ; and in the same manner, to restrain any indi- 
 viduals from exercising any corporate rights, privileges, 
 or franchises not granted to them by any law of this State. 
 [See note 19.] 
 
 (19) The Revisers' note on this section is as follows: [§ 31. Same as en- 
 acted.] Original Note. " The proceedings at law by quo warranto or scire 
 facias are so dilatory, that much mischief will generally be done before 
 judgment can be obtained, and are so expensive that a summary remedy 
 seems absolutely necessary. Ch. Kent held, in 2 J. Ch. Rep. 301, that the 
 court did not possess -the power proposed to be given in the preceding sec- 
 tion." (3 R. S. Id, ed. 755). But see Robinson V, Smith (3 Paige, 322.) 
 
 In the case of The Attorney General v. Wilson (1 Craig & Phil. 1 — 29). 
 it was held, — that a corporation itself may institute a suit for setting aside 
 transactions against it, although carried into effect in its name by members of 
 the governing body ; and that that right is not affected by the Attorney Gene- 
 ral having also power to call in question such transactions. In this case. Lord 
 CoOTENiiAM, said, — " What the present plaintiffs, the corporation, complain of, 
 is, that eertain persons members of the corporation at,a former time, fraudu- 
 lently and illegally used the power and authority of the corporation to de- 
 prive it of property to which it was by law entitled. Is it to be said, that 
 the corporation is therefore without remedy ? It is true, that in futur», all 
 
Continu- 
 ance. 
 
 52 GINEEAL STATUTES APPLICABLE TO 
 
 When is- §32. Snch iniunction maybe issued before the com- 
 
 ing in of the answer, upon satisfactory proof that the 
 
 defendants complained of, have usurped, exercised, or 
 
 claimed any franchise, privilege, liberty, or corporate 
 
 right not granted to them ; and after the coming in of the 
 
 answer, such injunction may be continued until judgment 
 
 at law shall have been had. 
 
 jurisdic- 8 33. The chancellor shall have jurisdiction over direc- 
 
 tion over offi- *^ 
 
 cers, &c. iQpg^ managers, and other trustees and officers of corpora- 
 tions, — 
 
 sucli property being in trust for the benefit of the public, the Attoriiey 
 General may assert the right of the public in an information ; but if before 
 the act passed, a corporation might, in a proper case, institute a suit for the 
 purpose of setting aside transactions fraudulent against it, though carried into 
 eflfeot in the name of the corporation, that right cannot be affected by the 
 Attorney General having also a power to complain of the transaction." * » * 
 " The true way of viewing this, is to consider the members of the governing 
 body of the corporation, as its agents, bound to exercise its functions for the 
 purposes for which they were given, and to protect its interests and prop- 
 erty ; and if such agents exercise those functions for the purposes of injur- 
 ing its interests and alietiating its property, shall the corporation be estopped 
 in this court from complaining, because the act done was ostensibly an act of 
 the corporation ?" — * * * " I think both objections are founded upon the 
 same error, namely ; that of confounding the legitimate acts of the corporation 
 with unauthorized acts effected by agents or members of a corporation in 
 the name of the corporation." 
 
 A contract made by a corporation, not within the.legitiraate scope of its 
 authority, is void, not only, because unauthorized, but also, because it is illegal. 
 2 Revised Statutes, 462, § 1. 
 2 " " 583, § 39, sub. 1, 5. 
 
 2 " " 585, § 48. 
 
 1 Revised Statutes, 600, § 3. 
 
 2 Revised Statutes, 696, § 39. 
 
 11 Common Bench, '7'75. ) East -Anglian Railway Company v. Sast. 
 7 Eng. L. & E, E. 505. ) Counties Railway Company. 
 1 Kailway Cases, 22'7. ) McGregor v. The Dover and Deal Railway 
 16 Eng. L. A E. R. 180. ) Company {In Exchequer Chamber). 
 
 3 Selden, 328 ; Talmage v. Pell. 
 
 3 Selden, 513; Bank Cotmnissioners v. St. Lawrence Bank. See Notes 
 20, 21, 4- 22, post, and the cases there cited. 
 
BANKING CORPOEA.TIONS. 53 
 
 1. To compel them to account for their official con- to compel 
 
 account of 
 
 duct, in the management and disposition of the funds *„^[™''- 
 and property committed to their charge : 
 
 2. To decree and compel payment by them, to the cor- Payment 
 
 over of mo- 
 
 poration whom they represent, and to its creditors, of all ""y*' *°- 
 sums of money, and of the value of all property which 
 they may have acquired to themselves or transferred to 
 others, or may have lost or wasted, by any violation of 
 their duties as such trustees : 
 
 3. To suspend any such trustee or officer from exercis- to suspend 
 ing his office, whenever it shall appear that he has abused ""'' 
 
 his trust : 
 
 4. To remove any such trustee or officer from his to remove 
 office upon proof or conviction of gross misconduct : 
 
 5. To direct new elections to be held by the body or to direct 
 board duly authorized for that purpose, to supply vacan-tions. 
 cies created by such removal : 
 
 6. In case there be no such body or board, or all the „ 
 
 •' ' To report 
 
 members of such board , be removed, then to report the ^ sovemor. 
 same to the governor, who shall be authorized, with the 
 consent of the senate, to fill such vacancies : 
 
 7. To set aside all alienations of property made by the ^o vacate 
 trustees or other officers of any corporation, contrary toations"'™" 
 the provisions of law, or for purposes foreign to the lawful 
 business and objects of such corporation, in cases where 
 
 the person receiving such alienation, knew the purpose 
 for which the same was made : and Isee note 20] — 
 
 (20) A corporation in an action against it, upon a contract, is not es- 
 topped from denying its competency or power to make such contract. T?ie 
 Pennsylvania, Delaware, and Maryland Steam Navigation Company v. Dan- 
 dridge (8 Gill. <fe John. 248-320). This ease was decided by the Maryland 
 Court of Appeals, in 1836. In delivering the opinion of the Court, Dorset, J.,. 
 
54 GENERAL STATUTES APPLICABLE TO 
 
 To prevent 8. To restrain and prevent any such alienation in cases 
 
 lem. 
 
 them 
 
 said : " It has been urged that th e defendants, having entered into this contract, 
 are estoppedirom denying their competency to have done so. To the doctrine 
 o{ estoppel, applied to sxioh eases, Tve cannot yield our assent. If the corpora- 
 tion is estopped from denying its power, the estoppel operates with like effect 
 upon those who act with them ; and the result would be, that no matter 
 how limited the design and powers of a corporation may appear in its char- 
 ter, practically it is a corporation without limitation as to its powers. Such 
 a doctrine, at this day, is dangerous to the interests of the community and 
 at war with the modern decisions upon the subject" (8 Gill- <& John., 319, 
 320.) 
 
 In 1853, the Supreme Court of Errors of Connecticut, cited and adopted 
 the case in 8 Gill & Johnson, 248, and decided the same principle, in Hood 
 v. 21ie New York and Neva Haven Railroad Company (22 Conn. R. 502-512). 
 In delivering the opinion of the Court in this case, Ellsworth, J., said, — 
 " Should the directors of a savings bank, or of any bank, contract with 
 a shipbuilder for a steamship to navigate the ocean, would this con- 
 tract bind the company ? Certainly not ; because the directors hare no 
 power to make it ; nor would they have more, were they to make such con- 
 tracts from day to day. The legislature has absolutely marked the liiBit of 
 their power, and they cannot exceed it under the charter. And if the di- 
 rectors, even with all the stockholders at their side, transcend the limits of 
 the charter, and make contracts foreign to their business, they only act for 
 themselves. The reason is, there can be no consent of the corporation." 
 * * * "Again, it is said, the defendants" (the coi-poration) "ought 
 not to be permitted to call in question the acts of their agents. Why not, as 
 much as other principals, whose agents transcend their authority and 
 abuse their trust? ' It is replied, the directors have suffered this course of 
 things for months, when they could have arrested it at once. We ask 
 whose agents they were ? Certainly not of the innocent stockholders. The 
 directors represent thetn, only while they act within the scope of the charter. 
 The charter is the measure of their power ; and sad would it be if directors 
 could trample upon this, and yet bind the stockholders as firmly as if they 
 were acting within it If the directors have done wrong, let them suffer 
 the consequences." * * * " GUI <& Johnson is in direct accordance with- 
 what we have said. We place our judgment upon a plain principle of equity 
 and law, viz., that these defendants are not bound by a contract they had 
 no power to make, and are not estopped setting up this matter in defence.'' 
 (22 Conn. S09-512). See also, Hodges v. Tlie City of Buffalo (2 Denio, 110), 
 Halsted v. The Mayor, (be., of New York (3 Comst, 430). See also Wyman v. 
 Hallowell and Augusta Bank (14 Mass. R. 58, 62, 63), Parker, Chief Jus- 
 tice. See also Salem Bank v. Gloucester Bank (17 Mass. R. 1, 28, 29), Park- 
 er, Chief Justice. See also, Slark v. the Highgate Archway Company {1 
 Taunt. T92) ; Broughton v. The Salford Water Works (3 Barn. & Aid. 1). 
 See, also, The Mast Anglian Railway Company v. Tlie Eastern Counties Rail- 
 way Company (11 Common Bench, 'J'ZS ; 1 Railway Cases, 155 ; 7 Eng. L. & E. 
 
BANKING CORPORATIONS. 55 
 
 where it may be threatened, or there may be good reason 
 to apprehend it will be made. [jSee note 21.J 
 
 § 34. When any of the visitatorial powers enumerated y^^™/}™^"' 
 in the last section, over any corporation, are or shall be ^®""™- 
 vested, by statute, in any corporate body or public oflScer, 
 
 R. 505). In this case, Madie, J., said, — " If the directors have no authority 
 to enter into the contract, their act is not that of the company, — it is no con- 
 tract as regards it. The directors are authorized to do certain things for a 
 particular object; if they do acts beyond that object, though under the cor- 
 porate seal, it would not be the act of the company." (1 Railway Cases, 152.) 
 " Indeed it is not contended," says Jeeyis, C. J. (1 Railway Gases, 155), " that 
 a company so constituted, can engage in ne'w trades, not contemplated by 
 their act; but it ia said that they may embark in other undertakings, how- 
 ever various, provided the object of the directors be to increase the profit of 
 their own railway. This, in truth, is the same proposition in another form; 
 for, if the company cannot carry on a new trade, because it is not contem- 
 plated by the act, they cannot embark in other undertakings, not sanctioned 
 by their act, merely because they hope the speculation may ultimately in- 
 crease the profit of the shareholders. They cannot engage in any new trade 
 because they are a corporation only for the purpose of making and main- 
 taining the Eastern Counties Railway. What additional power do they ac- 
 quire from the fact, that the undertaking may in some way benefit their 
 line S * * * If the contract is illegal, as being contrary to the act of 
 Parliament, it is unnecessary to consider the effect of dissenting sharehold- 
 ers; for if the company is a corporation only for a limited purpose, and a 
 fiontract like that under discussion is not within their authority, the assent 
 of all the shareholders to such a contract, though it may make them all per- 
 sonally liable to perform such contract, would not bind them in their corpo- 
 rate capacity or render liable iJieir corporate funds." The case of the JUast 
 Anglian Railway Company was cited and approved by the Couet of Exche- 
 QUEK Chambee, in the case of McGregor v. The Dover and Deal Railway Com- 
 pany (1 Railway Cases, 22"? ; 16 Eng. L. <fc E. R. 180. See note 21, and cases 
 there cited. 
 
 (21) It is now settled, by repeated decisions in England, that a court of 
 chancery will, upon the application of an individual corporator or share- 
 holder, interfere by injunction, to prevent the directors, or managing body of 
 a corporation, from using, pledging, or applying the corporate funds in support 
 of any project not pointed out in and expressly authorized by its charter, — 
 and this, although such project may be assented to by a majority of the 
 shareholders ; and also that acquiescence by shareholders in a project, for how- 
 ever long a period, aflfords no presumption that such project is legal; and 
 
56 GENERAL STATUTES APPLICABLE TO 
 
 the provisions of that section shall not be construed to 
 divest or impair the powers so vested. 
 Proceed- § 35. The jurisdiction conferred by the preceding 
 
 ings to exe- , . ■ , . , . 
 
 cutepowers. thirty-third, sectton, shall be exercised as in ordinary 
 cases, on bill or petition, as the case may require, or the 
 chancellor may direct, at the instance of the attorney 
 general prosecuting in behalf of the people of this State, 
 or at the instance of any creditor of such corporation, or 
 
 that any application or dealing with the capital of a corporation, not dis- 
 tinctly authorized by its charter, is an illegal application or dealing. 
 
 Oohnai), T. East. Counties Railway Co., Lord Langdale, M. R. — 11 Jurist, 
 74; 10 Beavan, 1 ; 4 Railway Cases, 513. 
 
 Cohen V. Wilkinson, Lord Langdale, M. R. — 13 Jurist, 641 ; 5 Railway 
 Cases, 741. 
 
 Colien V. Wilkinson, affirmed on appeal, by Lord Chancellor Cottenham. — 
 14 Jurist, 491 ; 5 Railway Cases, 759. 
 
 Bagshawe v. The East. Union Railway Co., Vice Chancellor Wigram. — 13 
 Jurist, 641; 6 Railway Cases, 152; 7 Hare, 114. 
 
 Affirmed, on appeal, by Lord Chancellor Cottenham. — 14 Jurist, 491 ; 2 
 Mac. & G., 389; 6 Railway Cases, 169. 
 
 Salomans-v. Laing, Lord Langdale, M. R. — 14 Jurist, 279 & 471; 12 
 Beavan, 352 ; 6 Railway Cases, 289. 
 
 Munt V. Shrewsbury and Chester Railway Company, Lord Langdale. — 15' 
 Jurist, 26 ; 3 Eng. L. & E. R. U4; 13 Beavan, 1. 
 
 Beman v. Rufford, Lord Cranworth, V. C. — 15 Jurist, 914; 7 Railway 
 Cases, 48 ; 6 Eng. L. & E. R., 106. 
 
 In Munt V. The Shrewsbury and Chester Itailway Company, Lokd Lang- 
 dale said, — "I think it lias been absolutely, and now unalterably, decided, — 
 although I do not think the question has ever been in the House of Lords, 
 but I suppose it has been unalterably decided, — certainly it has been decided 
 so far as it depends upon the Co^irt of Chancery, that companies who are 
 possessed of funds for objects which are distinctly defined by act of Parlia- 
 ment, cannot be allowed to apply them to any other purpose whatever, how- 
 ever beneficial or advantageous that purpose may appear to be to the 
 company, or to theindividual members of the company." (15 tTMn'si, p. 28.) See, 
 also, in 14 Jurist, p. 248, the judgment of Lord Langdale, inSalomans v. Laing. 
 
 In Bagshawe v. The Eastern Union Railway Company (7 Hare, 129), Vice 
 Chancellor Wigram said, — "No majority of the shareholders, however large, 
 could sanction the misapplication of this portion of the capital. A single 
 dissenting voice would fiustrate the wishes of the majority. Indeed, in 
 strictness, unanimity would not make the act lawful." 
 
BANKING CORPORATIONS. 5T 
 
 at the instance of any director, trustee, or other officer of 
 such corporation, having a general superintendence of its 
 concerns. [See note 22.] 
 
 § 36. "Whenever a iuda;ment at law, or a decree in . seqnestrat- 
 
 " .JO 7 ifig C()rporate 
 
 equity, shall be obtained against any corporation, incor- § comst^is. 
 
 (22) The Revisers' Note to § 33 is as follows : 
 
 Original Note ^o § 33: "The preceding section is drawn to supply what 
 are conceived to be important defects in some cases, and to remove doubts 
 entertained respecting the power of the Court in others. The first subdivi- 
 sion is intended, in connection with § 35, to give the Court of Chancery Jh this 
 State, the same power that is exercised by that court in England, in cases of 
 charitable corporations, and in other cases ; the possession of which power 
 is doubted by Chancellor Kent, in 2 J. C. R., 384, although alleged to be a 
 part of the general jurisdiction of the Court in 2 Term Rep., 199. The 2d, 
 3d, 4th, 6th, and 6tb subdivisions are consequences from the first. In many 
 of our corporations, the trustees are a permanent body, who supply vacan- 
 cies in their own board; and a system of abuse and malversation may be 
 perpetrated by them with impunity, without some superintending power. 
 If is believed, that there is no court or tribunal whose ordinary powers and 
 forms of proceeding are so adequate to the exigency, or in which the author- 
 ity can be so safely lodged. * This remark is justified by the history of the 
 English Chancery. The 7th and 8th subdivisions are also founded upon ac- 
 knowledged principles of equity. See 1 Vesey & Beam^, 226." (3 H. S-, 
 2d ed, 165.) 
 
 A Receiver of a corporation represents the rights', both of creditors and 
 stockholders, and may assert their rights when affected by the fraudulent or 
 illegal acts of its madaging directors; and may repudiate illegal transfers 
 of corporate effects, and illegal contracts) made by the officers of an insol- 
 yent corporation, in its name, and professedly on its behalf. 
 
 3 Comst. 19 ; Leavitt, Beeeiver, v. Palmer. 
 
 3 Comst. 479; Gillett, Receiver, v. Moody. 
 
 3 Selden, 328 ; State of Ohio v. Leavitt, Meceiver. 
 
 3 Selden, 513 ; Banlc Commissioners v. 8t. Lawrence Bank ; Brouwer, Re- 
 ceiver, V. Sarbeck (decided by the Court of Appeals, in March, 1854). 
 
 1 Sand. Ch. R. 207 ; Leavitt, Receiver, v. Yates. 
 
 1 Sand. Sup. C. R. 629 ; Brouwer, Receiver, v. Hill. 
 
 3 Sand. Sup. C. R. 521 ; Furniss v. Sherwood. 
 
 2 Sand. Ch. R. 170, note a ; Leavitt, Receiver, v. Griffin. 
 
 4 Denio, R. 299 ; Austen v. Daniels. 
 
 4Edw., Ch. R. 134; Leavitt, Receiver, v. Yates. See, also, Babcock v. 
 Booth (2 Hill, 186), and Doe v. Ball (U Mee. & W. 631.) 
 
58 GENERAL STATUTES APPLICABLE TO 
 
 porated under the laws of this State, and an execution 
 issued thereon shall have been returned unsatisfied in part 
 or in the whole, upon the petition of the person obtaining 
 such judgment or decree, or his representatives, the court 
 of chancery may sequestrate the stock, property, things in 
 action and effects of such corporation, andr may appoint a 
 receiver of the same. 
 DiBtribu- 8 37. Upon a final decree on any such petition, the 
 
 tion upon de- 'J -t j j. ? 
 
 "'""' court shall cause a just and fair distribution of the prop- 
 
 erty* of such corporation, and of the proceeds thereof, to 
 be made among the fair and honest creditors of such cor- 
 poration, in proportion to their debts respectively, who 
 shall be paid in the same order as provided, by this Title, 
 in the case of a voluntary dissolution of a corporation. 
 
 of\"o?porrie § ^8. Whenever any incorporated company shall have 
 
 "^ *^' remained insolvent for one whole year ; or for one year shall 
 have neglected or refused to pay aijd discharge its notes 
 or other evidences of debt ; or for one year shall have sus- 
 pended the owlinary and lawful business of such corpora- 
 tion ; it shall be deemed to have surrendered the rights, 
 privileges, and franchises granted by any act of incorpora- 
 tion, or acquired under the laws of this State, and shall be 
 adjudged to be dissolved. 
 Proceed- § 39. Whenever any corporation having icmking 
 
 Vl^t^orl^-pcwers, or having the power to make loans on pledges or 
 ' ' deposits, or authorized by law to make insurances, shall 
 become insolvent 'or unable to pay its debts, or shall have 
 violated any of the provisions of its act or acts of incor- 
 poration, or of any other act binding on such corporation, 
 the court of chancery may, by injunction, restrain such 
 corporation, and its officers, from exercising any of its cor- 
 porate rights, privileges, or franchises, and from collecting 
 
whose 
 ion. 
 
 BANKING CORPORATIONS. 59 
 
 or receiving any debts or demands, and from paying out, 
 or in any way transferring or delivering to any person any 
 of the moneys, property, or effects of sucli corporation, 
 until such court shall otherwise order. [See note 23.] 
 
 § iO. Such injunction may be issued on the application ^Jjo^ti 
 of the attorney general in behalf of this State, or of any 
 creditor or stockholder of such corporation, upon bill or 
 petition, filed for that purpose, and upon due proof of any 
 of the facts in the last section required to authorize the 
 issuing of the same. 
 
 § 41. Upon such application being made, and in any Eeceivers 
 stage of the proceedings thereupon, the court may appoint 'y'**"*- 
 one or more receivers, to take charge of the property and 
 effects of such corporation, and to collect, sue for, and re- 
 
 (23) Augast 30th, 1841, the Chancellor, upon a SiW filed by George Manning 
 Tracy v. The North American Trust and Banking Company (a banking asso- 
 ciation formed under the general banking law), restrained by injunction said 
 association and its officers " from exercising any of the rights, privileges, or 
 franchises of the said association, and from paying out or otherwise transfer- 
 ring or delivering to any person, body politic or corporate, any of the money, 
 property, or eifeots of said association," until said Court of Chancery should 
 otherwise order, — and directed the appointment of a receiver of the effects 
 of said association. Tracy, the plaintiff, was both a creditor and a stock- 
 holder of said association. The order for said injunction recited, that it ap- 
 peared by the said Tracy bill (among other things), that said " association is 
 insolvent, and unable to meet and discharge its debts as they become due and 
 payable, and hath violated the provisions of the said act " [the general bank- 
 ing law], " and of the acts amending the same, and the provisions of other 
 laws of the State." The order made by the Chancellor in the Tracy suit was 
 made under the power conferred by the above, thirty-ninth, section. 
 
 In 1844, Assistant Vice- Chancellor Sandford, in Boisgerard v. The New 
 York Banking Company (an association under the General Banking Law) 
 (2 Band. Ch. B. 23), held, — that ba,nking associations under the General Bank- 
 ing Law of 1838, were within the provisions of the Revised Statutes, enti- 
 tled, " Of proceedings against Corporations in Equity." This case was after- 
 wards affirmed upon appeal, by the Chancellor. See also, Sagory v. Dubois 
 (3 Sand. Ch. R. 466); CHUett v. Moody (3 Comst. 479); and Talmage v. Pell 
 (S Selden, 328). 
 
60 GENERAL STATUTES APPLICABLE TO 
 
 cover the debts and demands that may be due, and the 
 property that may belong to such corporation ; who shallj 
 in all respects, be subject to the control of the court. 
 Theirgene- § 4:3. Such receiver shall possess all the powers and 
 
 ral powers . . ni it '• 
 
 anddQtiai. authority conferred, and be subject to all the obligations 
 and duties imposed, in Article Third of this Title, upon 
 receivers appointed in case of the voluntary dissolution of 
 a corporation. [See note 24-.] 
 
 (24) In the case of the Attorney General v. The lAfe and Mre Insurance 
 Company (4 Paige, 224^-226), the Chanoelloe said, — " It is the duty of Ke- 
 ceivers to allow all claims against the corporation, in behalf of persons 
 claiming to be debtors thereof, •which they shall be satisfied are justly due ; 
 but they should not allow any claim which the claimant could not have re- 
 covered against the corporation, at law or in equity, if he had sued for the 
 recovery of the same. In this respect, receivers act as guardians of the 
 rights of all parties interested in the fund ; and they have no right to allow a 
 claim which is not a proper charge upon that fund, without the consent of 
 all who are interested in having such claim rejected. If the receivera disal- 
 low the claim, and referees are appointed, although the receivers may permit 
 those for whose benefit the defence against the claim is made, to manage that 
 defence, this must be done under the direction of the receivers, and there 
 cannot be a compromise without their consent. In this case, referees were 
 appointed to decide the question between the claimants and the receivers, 
 whether those bond claims were due from the corporation so as to form legal 
 or equitable debts. If they are not legally or equitably due, the stockhold- 
 ers who have not consented to the compromise, have a right to object to the 
 same ; though it probably may be binding upon the parties thereto, so far 
 as it can be carried into effect without interfering with the rights of others. 
 As the receivers do not state in their petition, that any evidence has been 
 elicited, on the hearing before the referees, to satisfy them that these claims 
 could have been recovered against the corporation if it had not become in- 
 solvent, their duty to the stockholders, who have not consented that their funds 
 should be used to pay those bonds, requires of the receivers that they should 
 continue the defence against the claims of these bondholders, before the 
 referees, so long as that defence can, in their opinion, be rendered effectual." 
 (4 Paige, 226) ; see also, McEvers v. Lawrence (1 Hoffman, Ch. R. 1'72, 176). 
 
 In Gillet, Receiver, v. Moody (3 Comst. 479), the Court of Appeals held, — 
 that a receiver of an insolvent corporation, stands as the representative of 
 both creditors and stockholders, and may assert their rights when affected 
 by the fraudulent or illegal acts of the corporation. 
 
 In Talmage v. Pell (S Selden, 328), the Court of Appeals held, — ithat a re- 
 
BANKING CORPORATIONS. 61 
 
 § 43. If such application be made by a creditor of any uMns 
 
 Btockboklers, 
 
 corporation, whose directors or stockholders are made *°' i""'"'''' 
 liable by law for the payment of such debt, in any event 
 or contingency, such directors or stockholders .may be 
 made parties to the bill, either on the filing thereof, or in 
 any subsequent stage of the proceedings, whenever it shall 
 become necessary to enforce such liabiliiy. 
 
 §44. If any creditor of a corporation desire to make ih- after a 
 
 decree. 
 
 such directors or stockholders parties to the suit, after a 
 decree therein against the corporation, he may do so, on 
 filing a supplemental bill against them, founded upon 
 such decree ; and if such decree was rendered in a proceed- 
 ing instituted by the attorney general, such creditor may, 
 on his application, be made complainant therein, with or 
 instead of the attorney general, and may, in like manner, 
 make the directors and stockholders sought to be charged, 
 defendants in such suit. 
 
 § 45. Whenever any creditor of a corporation shall BnisiBaiDst 
 se^k to charge the directors, trustees, or other superintend- *°- 
 ing officers of such corporation, or the stockholders there- 
 of, on account of any liability created by law, he may file 
 his bill for that purpose in the court of chancery, which 
 shall possess jurisdiction to enforce such liability. 
 
 § 46. The court shall proceed thereon as in other proceed- 
 
 , , in , '"6= thereon. 
 
 cases, and when necessary, snail cause an, account to be 
 taken of the property and debts due to and from such cor- 
 
 ceiver of an insolvent banting corporation, was in fact a trustm for its stock- 
 holders and creditors ; and that he might repudiate illegal transfers of its 
 securities by its officers, and claim them as a part of its fund. 
 
 By 2 H. S. 469, § 61, it is enacted that,' — " Such receivers shall be invest- 
 ed with all the estate, real and personal, of such corporation, from the time 
 of their having filed the security hereinafter required, and shall be trustees 
 of such estate, for the benefit of the creditors of such corporation and of its 
 stockholders." 
 
62 GENERAL STATUTES APPLICABLE TO 
 
 poration, and shall appoint one or more receivers, who 
 shall possess all the powers conferred, and be subject to 
 all the obligations imposed on receivers, by Article third 
 of this Title, 
 lb If cor- § ^^- -^^^ ^^' °^ *^® coming in of the answer, or upon 
 
 ?nJoWent^&o the taking of any such account, it shall appear that such 
 corporation is insc^vent, and that it has no property or ef- 
 fects to satisfy such creditor, the court may proceed, with- 
 out appointing any receiver, to ascertain the respective 
 liabilities of such directors and stockholders, and enforce 
 the same, by its decree, as in other cases. 
 
 § 48. Upon a final decree being made upon any such 
 
 bSted'*'"' application to restrain a corporation, or upon any such bill 
 filed against directors or stockholders, the court shall cause 
 a just and fair distribution of the property of such corpo- 
 ration and of the proceeds thereof, to be made among its 
 fair and honest creditors, in the order and in the propor- 
 tions prescribed by this Title in the case of a voluntary 
 dissolution of a corporation. 
 
 8 49. In all cases in which the directors or other 
 
 Payinff np " 
 
 Boribcd?^' superintending officers of a corporation, or the stockhold- 
 ers thereof, shall have been made parties to a suit in which 
 a decree shall be rendered, if the property of such corpo- 
 ration shall be insufficient to discharge its debts, the court 
 shall proceed to compel each stockholder to pay in the 
 amount due and remaining unpaid on the shares of stock 
 held by him, or so much thereof as shall be necessary to 
 satisfy the*ebts of the company. 
 
 coiieoiing § ^^' ■ ^^ *^® ^^^^ °^ *^® company shall still remain 
 ofdirectors, unsatisfied, the court shall proceed to ascertain the respec- 
 tive liabilities, of the directors or other superintending 
 officers, and of the stockholders, and to decree the amount 
 
their officers, 
 
 BANKING CORPORATIONS. QB 
 
 payable by each, and enforce such decree, as in other 
 cases. ' 
 
 § 51. Upon any application to the court of chancery, ^^^^"^^ 
 in any of the cases provided in this Article, such court may "™'- 
 compel such corporation to discoTer any stock, property, 
 things in action, or effects, alleged to belong or to have 
 belonged to it, the transfer and disposition thereof, and the 
 consideration and all the circumstances of such disposition. 
 
 § 52. Every officer, agent, or stockholder of any cor- n,. by 
 poration, against which proceedings shall be instituted, &o! 
 according to the provisions of this Article, and every per- 
 son to whom it shall be alleged that any transfer of any 
 property or effects of such corporation, has been made, or 
 in whose possession or control any such property or effects 
 shall be alleged to be, may be compelled, in the discretion 
 of the chancellor, to answer a bill filed to obtain any dis- 
 covery in the last section specified, notwithstanding such 
 answer may expose the corporation of which he is a mem- 
 ber, to a forfeiture of its corporate rights, or any of them. 
 
 § 53. The answers of the ofiicers and agents of any how far 
 corporation, shall be evidence against -the corporation in *^' ™°^' 
 the same manner, and to the same extent, as if such an- 
 swers had been given upon an examination of such ofl&cers 
 as witnesses in the cause, and such officers may subsequent- 
 ly be examined as witnesses by either party imder the or- 
 der of the court. 
 
 § 54. But no such answer shall be compelled, unless ^^^ „„„j. 
 by the special order of the chancellor, on a hearing of the ^ ^ ' 
 parties, or by the consent, in writing, of the attorney- 
 general. 
 
 § 55. Every person so answering, shall be wholly ex- . 
 empted and exonerated from any indictment or other rate from 
 
 • ' ' prosecution. 
 
64 GENERAL STATUTES APPLICABLE TO 
 
 criminal prosecution, and from every action for any penalty 
 or forfeiture, for any act done or omitted, the doing or omis- 
 sion of wMcli shall have been so confessed by such answer. 
 Staying § 56. "Whenever any bill shall be filed, or any appli-' 
 
 at law. cation made against any corporation, its directors or other 
 superintending officers, or its stockholders, according to 
 the provisions of this Title, the court may, by injunction, 
 on the application of either party, and at any stage of the 
 proceedings, restrain all proceedings at law, by any credi- 
 tor, against the defendants in such suit; and, when- 
 ever it shall appear necessary or proper, may order notice 
 to be published, in such manner as the court shall direct, 
 requiring all the creditors of such corporation to exhibit 
 their claims and become parties to the suit, within a rea- 
 sonable time, not less than six months from the first publi- 
 cation of such order, and in default thereof, to be preclu- 
 ded from all benefit of the decree which shall be made in 
 such suit, and from any distribution which shall be made 
 under such decree. 
 
 § 5T. The provisions of this Article shall not extend 
 
 corporalions to any incorporated library society ; to any religious cor- 
 
 exoepted. , 
 
 poration ; or to any Laucasterian or select school, incorpor- 
 ated by the regents of the university, or by the legislature. 
 
 ARTICLE THIRD. [2 E. S. 466.] 
 Of the, Vdlvmta/ry Dissolution of Corporations. 
 
 Seo. 58. When directors, cfeo. of corporations may apply for their dissolution. 
 
 59. Contents of application ; statements, ifec. to accompany it. 
 
 60. Statements to be verified by affidavit. 
 
 61. Order to show cause, when to be entered. 
 
 62. Notice of such order, how to be published. 
 
 63. Master to take testimony and report to court. 
 
BANKING CORPORATIONS. 65 
 
 64. Master to have original petition and scliedules. 
 
 66. When decree for diasolving to be made; receivers, <!io. 
 
 66. "Who may be receivers; security to be given. 
 
 67 & 68. Rights, interest, and authority of receivers. 
 
 69. To prosecute stockholders for arrears on their stock. 
 
 70. Notice to be given by receivers ; its contents. 
 
 71. Acts of corporation after presenting petition, void. 
 
 72. Debtors to account to receivers ; their powers to discover debts, <feo. 
 
 73. Power of receivers to refer controversies'; proceedings. 
 
 74. Duties of receivers ; to call meetings of creditors, <kc. 
 
 75. Subsisting contracts, how canceled. 
 
 76. Commissions to be allowed to receivers. 
 
 77. To retain moneys to cancel subsisting contracts. 
 
 78. Also to meet recovery in suits pending. 
 
 79. Order of payment of debts. 
 
 80. Second and final dividend, when to be made, how notified. 
 
 81. Proceedings therein ; to be final, except certain cases. 
 
 82. Receivers not to be answerable for debts not exhibited. 
 
 83. Surplus to be distributed among stockholders. 
 
 84. Application of moneys retained to meet suit. 
 
 85. Power of court of chancery over receivers. 
 
 86. When to render account on oath to court. 
 
 87. Notice of intent to render, when and how to be published. 
 
 88. Duty of master to whom account is referred. 
 
 89. Settlement of account by court, its effect; further accounts, Ac. 
 
 90. Decrees and orders of court subject to appeal. 
 
 91. Certain corporations excepted from this article. 
 
 § 58. Whenever the directors, trustees, or other offi- ■who may 
 
 apply for dia- 
 
 cers having the management of the concerns of any cor- ""'""""■ 
 poration, or the majority of them, shall discover that the 
 stock, property, and eflPects of such corporation have been 
 so far reduced by losses or otherwise, that it will not.be 
 able to pay all just demands to which it may be liable, or 
 to afford a reasonable security to those who may deal with 
 such corporation, or whenever such directors, trustees, or 
 officers, or a majority of them, shall, for any reason, deem 
 it beneficial to the interests of the stockholders, that such 
 corporation should be dissolved, they may apply to the 
 court of chancery, by petition, for a decree dissolving 
 such corporation pursuant to the provisions of this Article. 
 5 
 
Ofiocam- 
 brances. 
 
 66 GENERAL STATUTES APPLICABLE TO 
 
 r t tsof § ^^" E'^^ry such application shall contain a state- 
 *o bfanS- ment of the reasons which induce the applicants to desire 
 a dissolution of the corporation, and there shall be an- 
 nexed thereto,— 
 
 Inventory !• A full, juSt, and true inventory of all the estate,- 
 both real and personal, in law and equity, of such corpo- 
 ration, and of all the books, vouchers, and securities relat-- 
 ing thereto : 
 
 2. A full, I'ust and true account of the capital stock 
 
 Account of ' "^ ■*- 
 
 itTownera"'' ^^ ^^^^ corporation, specifying the names of the stockhold- 
 ers, their residence when known, the number of shares be- 
 longing to each, the amount paid in upon such shares 
 respectively, and the amount still due thereon : 
 
 3. A statement of all incumbrances on the property 
 of such corporation by judgment, mortgage, pledge or 
 otherwise : 
 
 4. A full and true account of all the creditors of such 
 
 Account of 
 
 thlfr'S-*"'' corporation and of all engagements entered into by such 
 corporation, which may not have been fully satisfied 
 or canceled ; specifying the place of residence of each 
 creditor and of every person to whom such engagements 
 were made, if known, and if not known, the fact to be so 
 stated ; the sum owing to each creditor ; the nature of each 
 debt or demand ; and the true cause and consideration of 
 such indebtedness, in each case. 
 
 Affldavit g 60. To every such petition, there shall also be an- 
 nexed an affidavit of the applicants, that the facts stated in 
 such application, and the accounts, inventories and. state- 
 ments contained therein or annexed thereto, are just and 
 true, so far as such applicants respectively know or have 
 the means of knowing. 
 
 Older to § 61. Upon such petition, accounts, inventories, and 
 
 snow cause. ^ j. x / j j 
 
 affidavit being filed, an order shall be entered requiring all 
 
BANKING CORPORATIONS. 67 
 
 persons interested in sucli corporation, to show cause, if 
 any they have, why such corporation should not be dissol. 
 ved before some master of the court, to be named in such 
 order, at some time andi place therein to be specified, not 
 less than three, months from the date thereof. 
 
 § 62. Notice of the contents of such order shall be-.p^P"''- 
 published, once in each week, for three weeks successively, 
 in the state paper, and in a newspaper published in the 
 county where the principal place of conducting the busi- 
 ness of such corporation shall be situated. 
 
 § 63. On the day appointed in such order, such mas- p™eed- 
 ter shall proceed to hear the allegations and proofs of the '"" 
 parties, and shall take testimony in relation thereto, and 
 shall with all convenient speed, report the same to the 
 court, with a statement of the property, effects, debts, 
 .credits and engagements of such corporation, and of all 
 other matters and things pertaining to the affairs of such 
 corporation. 
 
 § 64. Such master shall be entitled to the use of the tuTo''n^&o.''°' 
 original petition and schedules annexed thereto, if he re- 
 quire the same, by an order on the clerk or officer of the 
 court with whom they may be deposited, and shall return 
 the same, with his report. 
 
 § 65. Upon the coming in of the report of the master, wiien oor- 
 if it shall appear to the court that such corporation is insol- ^^ dissolved, 
 vent, or that for any reason, a dissolution thereof will be 
 beneficial to the stockholders, and not injurious to the pub- 
 lic interest, a decree shall be entered dissolving such cor- 
 poration, and appointing one or more receivers of its 
 estate and effects ; and such corporation shall thereupon be 
 dissolved, and shall cease. 
 
 § 66. Any of the directors, trustees or other officers Ee?eivers; 
 
Security. 
 
 iL'hte, 
 
 Their an- 
 ttiority. 
 
 68 GENERAL STATUTES APPLICABLE TO 
 
 of such corporation, or any of its stockliolders, may be ap- 
 pointed receivers, who, before entering upon the duties of 
 their appointment, shall give such security to the people 
 of this State, and in such penalty, as the court shall direct, 
 conditioned for the faithful discharge of the duties of their 
 appointment, and for the due accounting for all moneys 
 received by them. 
 Their § 67. Such reccivors shall be vested •with, all the estate, 
 
 real and personal, of such corporation, from the time of 
 their having filed the security hereinbefore required, and 
 shall be trustees of such estate for the benefit of the credi- 
 tors of such corporation and of its stockholders. [See note 
 2i, ante.] 
 
 § 68. Such receivers shall have all the power and au- 
 thority, conferred by law upon trustees to whom an assign- 
 ment of the estate of insolvent debtors may be made, pur- 
 suant to the provisions of the fifth Chapter of the Second 
 Part of the Kevised Statutes. [See 2 B. S. 40— 51.J 
 To prose- §69- If there shall be any sum remaining due upon 
 
 ?rar8o°fstook. any share of stock subscribed in such corporation, the re- 
 ceivers shall immediately proceed and recover the same, 
 unless the person so indebted shall be wholly insolvent ; 
 and for that purpose may file their bill in the court of 
 chancery, or may commence and prosecute an action at 
 law, for the recovery of such sum, without the consent of 
 any creditors of such corporation. 
 Togiveno- § TO. The receivers, immediately ou their appointment, 
 
 pofntmeBt, shall givc noticc thereof, which shall contain the same 
 matters required by law in notices of trustees of insolvent 
 debtors ; and in addition thereto, shall require all persons 
 holding any open or subsisting contract of such corpora- 
 tion, to present the same in writing and in detail to such 
 
 &c. 
 
BANKING CORPOEATIONS. 69 , 
 
 receivers, at the time and place in such notice specified ; 
 which shall be published for three weeks in the State 
 paper, and in a newspaper printed in the county where 
 the principal place of conducting the busioess of such cor- 
 poration shall have been situated. 
 
 § 71. All sales, assignments, transfers, mortgages, and certain 
 conveyances of any part of the estate, real or personal, '"''^• 
 including things in action, of every such corporation, made 
 after the filing of the petition for a dissolution thereof, in 
 payment of, or as a security for, any existing or prior 
 debt, or for any other consideration, and all judgments 
 confessed by such corporation after that time, shall be 
 absolutely void as against the receivers who may be ap- 
 pointed on such petition, and as against the creditors of • 
 such corporation. 
 
 § 72. After the first publication of the notice of the Debtors to 
 
 " ■*■ account to 
 
 appointment of receivers, every person having possession "°^''™' 
 of any property belonging to such corporation, and every 
 person indebted to such corporation, shall account and 
 answer for the amount of such debt and for the value of 
 such property to the said receivers ; and all the provisions 
 of law, in respect to trustees of insolvent debtors, the col-reoeivera." 
 lection and preservation of the property of such debtors, 
 the concealment and discovery thereof, and the means of 
 enforcing such discovery, shall be applicable to the re- 
 ceivers so appointed, and to the property of such corpora- 
 tion. 
 
 § 73. Such receivers shall have the same power to set-^^^j^^«JJ*^°s 
 tie any controversy that shall arise between them and any^'^^" 
 debtors or creditors of such corporation, by a reference, as 
 is given by law to trustees of insolvent debtors ; and the 
 same proceedings for that purpose shall be had, and with 
 
70 GENERAL STATUTES APPLICABLE TO 
 
 tlie like effect ; and application for the appointment of re- 
 ferees may be made to any oflScer authorized to appoint 
 such referees on the application of trustees of insolvent 
 debtors, who shall proceed therein in the same manner ; 
 and the referees shall proceed in like manner, and file their 
 report with the like effect in all respects. 
 Meetings 8 74. The receivers shall be subiect to all the duties 
 
 of creditors ^ « 
 
 iobe called, ^^^ obligations by law imposed on trustees of insolvent 
 debtors, so far as they may be applicable, except where 
 other provisions shall be herein made. They shall call a 
 general meeting of the creditors of siich corporation, with- 
 in four months from the time of their appointment, when 
 all accounts and demands for and against such corpora- 
 ■ tion, and all its open and subsisting contracts, shall be as- 
 certained and adjusted as far as may be, and the amount 
 of moneys in the hands of the receivers declared. [See 2 
 B. S. 40— 51.J 
 
 . suhfistiDg 8 Y5. If there shall be any open and subsisting en- 
 contracts. " ./ JT O 
 
 gagements or contracts of such corporation, which are in 
 the nature of insurances or contingent engagements of any 
 kind, the receivers may, with the consent of the party 
 holding such engagement, cancel and discharge the same, 
 by refunding to such party the premium or consideration 
 paid thereon by such corporation, or so much thereof as 
 shall be in the same proportion to the time which .shall 
 remain of any risk assumed by such engagement, as 
 the whole premium bore to the whole term of such risk ; 
 and upon such amount being paid by such receivers to 
 the person holding or being the legal owner of such en- 
 gagement, it shall be deemed canceled and discharged as 
 against such receivers. 
 Receivers' § 76. Such rcceivers shall, in addition to their actual 
 
 commjsaions 
 
 disbursements, be entitled to such commissions as the 
 
BAIfKING CORPORATIONS. Tl 
 
 court shall allow, not exceeding the sum allowed by law 
 to executors or administrators. 
 
 § Y7. The receivers shall retain out of the moneys in to retain 
 
 certain mo- 
 
 their hands, a sufficient amount to pay the sums, which neys. 
 they are hereinbefore authorized to pay, for the purpose 
 of canceling and discharging any open or subsisting en- 
 gagements. 
 
 § Y8. If any suit be pending against the corporation ib. To 
 
 meet suits. 
 
 or against the receivers, for any demand, the receivers 
 may retain the proportion which would belong to such de- 
 mand if established, and the necessary costs and proceed- 
 ings, in their hands, to be applied according to the event 
 of such suit, or to be distributed in a second or other divi- 
 dend. 
 
 § 19. The receivers shall distribute the residue of the order of 
 
 payment of 
 
 moneys in their hands, among all those who shall have *«'"°- 
 exhibited their claims as creditors, and whose debts shall 
 have been ascertained, as follows : 
 
 1. All debts entitled to a preference under the laws of 
 the United States : 
 
 2. Judgments actually obtained against such corpora- 
 tion, to the extent of the value of the real estate on which 
 they shall respectively be liens : 
 
 3. All other creditors of such coi-poration, in propor- 
 tion to their respective demands, without giving any pref- 
 erence to debts due on specialities. 
 
 § 80. If the whole of the estate of such corporation be geconaana 
 not distributed on the first dividend, the receivers shall, aeni ^' 
 within one year thereafter, and within sixteen months 
 after their appointment, make a second dividend of all the 
 moneys in their hands, among the creditors entitled there- 
 to ; of which, and that the same will be a final dividend, 
 
73 GENERAL STATUTES APPLICABLE TO 
 
 three weeks' notice shall be inserted once in each week, 
 in the State paper, and in a newspaper printed in the 
 county where the principal place of business of such cor- 
 poration was situated. 
 
 . ^'^^^r §81. Such second dividend shall be made in all re- 
 spects in the same manner as herein prescribed in relation 
 to the first dividend, and no other shall be made thereafter 
 among the creditors of such corporation, except to the 
 creditors having suits against it, or against the . receiv- 
 ers, pending at the time of such second dividend, and 
 except of the moneys which may be retained to pay 
 such creditors, as herein, provided ; but every creditor who 
 shall have neglected to exhibit his demand before the first 
 dividend, and who shall deliver his account to the re- 
 ceivers before such second dividend, shall receive the 
 sum he would have been entitled to on the first dividend, 
 before any distribution be made to the other creditors. 
 
 exWMted"' § 82. After such second dividend shall have been 
 made, the receivers shall not be answerable to any credi- 
 tor of such corporation, or to any person having claims 
 against such corporation, by virtue of any open or subsist- 
 ing engagement, unless the demands of such creditor shall 
 have been exhibited, and the engagements upon which such 
 claims are founded, shall have been presented to the said 
 receivers, in detail and in writing, before or at the time 
 specified by them in their notice of a second dividend. 
 Surplus to § 83. If after the second dividend is made, there shall 
 
 stockholders, 
 
 remain any surplus m the hands of the receivers, they 
 shall distribute the same among the stockholders of such 
 corporation, in proportion to the respective amounts paid 
 in by them, severally, on their shares of stock. 
 j^Money re- § 84. When any suit pending at the time of the second 
 dividend, shall be terminated, they shall apply the moneys 
 
BANKINa CORPORATIONS. Y3 
 
 retained in their hands for that purpose, to the payment 
 of the amount recovered, and their necessary charges and 
 expenses ; and if nothing shall have been recovered, they 
 shall distribute such moneys, after deducting their ex- 
 penses and costs, among the creditors and 8,tockbolders of 
 the corporation, in the same manner as herein directed in 
 respect to a second dividend. 
 
 § 85. The receivers shall be subject to the control of control of 
 the court of chancery, and may be compelled to account ''°°'''''^'^'' 
 at any time ; they may be removed by the court, and any 
 vacancy created by such removal, by death or otherwise, 
 may be supplied by the court. 
 
 § 86. "Within three months after the time herein pre- Acoomt 
 
 by them. 
 
 scribed for making a second dividend, the receivers shall 
 render a full and accurate account of all their proceedings 
 to the court of chancery, on oath, which shall be referred 
 to a master to examine and report thereon. 
 
 § 8Y. Previous to rendering such account the receivers Previous 
 
 Dotice tbere- 
 
 shall insert a notice of their intention to present the same, °^ 
 once in each week, for three weeks, in the state paper, and 
 in a newspaper, of the county in which notices of divi- 
 dends are herein required to be inserted, specifying the 
 time and place at which such account will be rendered. 
 
 8 88. The master to whom such account shall be re- „ , , 
 
 " Masters 
 
 ferred, shall hear and examine the proofs, vouchers, and^"'^' 
 documents offered for or against such account, and shall 
 report thereon fully to the court. 
 
 § 89. Upon the coming in of such report, the court 
 
 shall hear the allegations of all concerned therein, and f *°'"'™* ' 
 
 Settlement 
 if accouD 
 '■ Its effect. 
 
 shall allow or disallow such account, and decree the same 
 to be final and conclusive upon all the creditors of such 
 corporation, upon all persons who have claims against it. 
 
74 GENERAL STATUTES APPLICABLE TO 
 
 upon any open or subsisting engagement, and upon all the 
 
 Further stockholdcrs of such corporatiou. Such raceivers shall 
 
 be'renaered. also accouut from time to time in the same manner, and 
 
 with the like effect, for all moneys which shall come to 
 
 their hands after the rendering of such account, and for all 
 
 moneys which shall have been retained by them for any 
 
 of the purposes hereinbefore specified, and shall pay into 
 
 court all unclaimed dividends. 
 
 Appeal § 90. Any decree or order of the court of chancery, 
 
 from decrees o ./ .- ^ 
 
 and orders, j^^^q upou any petition presented pursuant to the provi- 
 sions of this Article, or in the course of any proceedings 
 thereon, shall be subject to an appeal, in the same manner 
 as other orders and decrees of the said court, if the same 
 be made within six months after such order or decree 
 . made. 
 
 Corporations § 91. The provisious of this Article shall not extend to 
 
 excepted. 
 
 any incorporated library society, or to any religious cor- 
 poration, or to any select school or academy, incorporated 
 by the regents of the university, or by the legislature. 
 [See note 25.] 
 
 (25) DECISIONS OF THE COURTS UPON SECTIONS OF THE ABOVE 
 ARTICLES, TWO AND THREE. (2 JJ. S. 462-467.) 
 
 1 Paige, 85 ; In the Matter of the Franklin Sank. (Act of April 21, 
 1825) 
 
 1 Paige, 511 ; Attorney Qeneral v. The Bank of Columbia. (Act of April 
 21, 1825.) 
 
 3 WenA 588 ; Attorney General v. The Bank of Oolumhia. (Act of April 
 21, 1825.) 
 
 1 Paige, 584, 685 ; Bruyn v. Meceiver Middle District Bank. 
 
 1 Paige, 258 ; In the Matter of the Niagara Insurance Co. 
 
 2 Paige, 438 ; Verplanck T. Mercantile Insurance Co. 
 
 3 Paige, 213 ;, Robinson v. Smith. 
 
 4 Paige, 224 ; Attorney Qeneral v. lAfe and Fire Insurance Co. 
 
 5 Paige, S21 ; Devoe v, Ithaca and Owego R. R. Co. 
 
 6 Paige, 497 ; Bank Commissioners v. Bank of Buffalo. 
 
BANKING CORPORATIONS. • Y5 
 
 ACT OP APRIL 17th, 1830. 
 
 [LAWS 1830. CHAP. 243. p. 266.] 
 
 An Act concerning Bank Notes: passed April 11th, 1830. 
 
 The People of the State of New York, re^presented in 
 Senate amd Assembly, do enact as follows : 
 
 § 1. Every note, bill or other evidence of debt, pur- 
 porting to be a bank note, issued or to be issued by any 
 incorporated banking institution of tbis State, shall, after 
 the passage of this act, be deemed and taken to be paya- 
 ble at the hanking house of such incorporated banking 
 
 6 Paige, 213 ; In the Matter of the Bank of Niagara. 
 
 6 Paige, 220 ; Holbrook v. Receivers of American Insurance Co. 
 
 6 Paige, 102; In the Matter of Receivers of Qlohe Insurance Co. 
 
 I Paige, 294 ; Ward v. Sea Insurance Co. 
 
 8 Paige, 380 ; In the Matter of Waterbury v. Trustees of Magle Iron 
 Works. 
 
 9 Paige, 598 ; Judson v. Rossie and Galena Co. 
 
 9 Paige, 471 ; Attorney Q-eneral v. lAfe and Fire Insurance Co. 
 
 9 Paige, 162; Nathan v. Whitlock. 
 
 10 Paige, 290 ; Morgan t. N. Y. and Albany R. R. Co. 
 
 10 Paige, 378 ; In the Matter of Receiver of City Bank of Buffalo. 
 
 II Paige, 118; Micklesy. Rochester City Bank. 
 
 1 Barb. Ch. R. 122; Pentz v. Bawley.- 
 
 2 Barb. Cli. R. 360 ; In Matter of Croton Insurance Co. 
 
 3 Barb. Ch. R. 642 ; In Matter of Croton Insurance Co. 
 
 3 Edw. Cli. R. 215; Nathan y. Whitlock. 
 2 Sand. Ch. R. 257 ; Mann v. Pentz. 
 
 2 Sand. Ch. R. 23 ; Boisgerard v. N. Y. Banking Co. 
 
 4 Sand. Ch. R. 577 ; Hill v. Nautilus Insurance Co. 
 
 4 Sand. Ch. R. 659 ; In Matter of Jackson Marine Insurance Co. 
 
 3 Comstook, 415 ; Mann v. Pentz. 
 
 3 Selden, 147 ; Bogardus v. Rosendale Manufacturing Co. 
 12 Barb. S. C. R. 341 ; Damman v. Umpire Mills. 
 
76 GENERAL STATUTES APPLICABLE TO 
 
 institution, any law or usage to the contrary hereof not- 
 withstanding. (26) 
 
 (26) By § 31 of the General Banking Law (Laws 1838, p. 253), it is en- 
 acted as follows : 
 
 " § 31. It shall not he lawful for any association formed under the pro- 
 visions of this act, to make any of its bills or notes of a denomination less 
 than one thousand dollars, to be put in circulation as money, payable at any 
 other place than at the office where the business of the association is carried 
 on and conducted." By § 3 of the General Bank Act, it is provided, that 
 the promissory notes, thereby authorized to be loaned and circulated as 
 money by associations and individual bankers, shall be made payable at " the 
 place of business, within this State, of such person or association," The cer- 
 tificate required to be filed by § 16 of the same act, only provides for a 
 designation, of the " particular city, town, or village." 
 
 Apeil 26th, 1832, the Legislature passed an act, entitled "An Act to pre- 
 vent the abatement of suits by or against corporations in certain cases," 
 (Zaws 1832, Chap. 295, p. 509, §§ 1, 2, 8, 4.) 
 
BANKING CORPORATION^ ' 77 
 
 ACT OF MAY 11th, 1835. 
 
 [LAWS 1835: CHAP. 307, p. 355.] 
 
 An Act to amend the act entitled, " An act to create a 
 f'ondfor the ienefit of the creditors of certain moneyed 
 corporations, a/nd for other purposes " passed April 2. 
 1829. Passed, May 11, 1835. 
 
 The People of the State of New YorTc, represented in 
 
 Senate and AsserrMy, do enact as follows : 
 
 § 1. It shall not be lawful for aw^mojieyecZ cor^orafo'ow .Eestric- 
 to charge, or in any manner receive the ■premium of ex- *™'''- 
 change on any draft made by such corporation, which shall 
 be used or applied in the payment of any bill, note, or 
 other demand, due to or discounted by such corporation, 
 or to be interested directly or indirectly in the premiums 
 on drafts which may be drawn or sold by any other corpo- 
 ration or by any individual. 
 
 § 2. \isYiaS\.Jiot\i&\smfvlioTam.y moneyed corporation ^^^^^l^^, 
 to be in any manner, directly or indirectly, interested in"°*' 
 the fees of any notary public, or entitled to, or to^ receive 
 any share of the same, in any manner whatsoever ; and 
 any officer or clerk of such corporation being a notary 
 public shall not be entitled to charge or receive more than 
 fifty cents for protesting and giving the requisite notices 
 upon any note or bill of exchange, check or draft, paya- 
 ble at the office of such corporation ; nor shall any such 
 corporation or any of its officers or clerks, charge or re- 
 ceive any sum for a notice upon any note, bill, or draft 
 which IS not duly protested ; nor shall a notary receive 
 any fees for protesting or giving the notice on any note, 
 bill of exchange, check or draft, in which any moneyed cor- 
 
# 
 
 78 GENERAL STATUTES APPLICABLE TO 
 
 poration shall be interested, of wliicli such notary shall be 
 a stockholder. 
 
 Eestrio- §3. It shallnot helawiul ioT otiy mone'i/ecl corpovation 
 
 loans and dis-' to place in the hands of any person, directly or indirectly, 
 any money or bank notes, for the purposes of loaning or 
 discounting of paper, or under any pretense whatever of 
 discounting or engaging that avy moneyed corporation shall 
 discount any note or draft, if presented at its counter. 
 
 Directors. § 4. No cashier or director of a moneyed corporation 
 within this State homing hanJcing poxoers, shall hold the 
 office of director in any other moneyed corporation holding 
 its charter under the safety fand system. 
 
 Bank com- § 6. The bank commissioners shall have power, and it 
 
 mist-ioners to 
 
 rrort"" ""* shall be their duty, to examine under oath, the officers of 
 all banks subject to their supervision, as to any offence 
 against the provisions of this act and shall report to the 
 legislature the names of any such corporations as shall of- 
 fend against the provisions of this act, or who shall adopt 
 and pursue any course of business with the intention of 
 receiving more than the legal rate of discount. 
 They may 8 6. The commissioncrs shall be authorized to applv 
 
 apply for an • ^^ J 
 
 injaoction. ^^ |.|^g chancellor, pursuant to the eighteenth section of the 
 act hereby amended, for an injunction against any moneyed 
 corporation who shall violate any of the provisions of this 
 act, or who shall adopt or pursue any course of business 
 which by this act the said commissioners are directed to re- 
 port to the legislature, and the court of chancery may pro- 
 ceed in the same manner as in any case now provived for 
 by the eighteenth section of the act hereby amended. [See 
 note 27.] 
 
 (27) By 1 R.S. 698, § 51, it is enacted that, " the term ' moneyed corpora- 
 tion,' as used in this Title, shall be construed to mean every corporation 
 
BANKING CORPORATIONS. Y9 
 
 haying banking powers, or haTing the power to make^loane upon pledges or 
 deposits, or authorized hy law to make insurances." (See p. 23, ante.) 
 
 By § 1 of the act of AprU 2d, 1829 (amended by^the above act of May 
 11th, 1836), it is enacted dS follows : 
 
 " § 1. Every moneyed corporation having banking powers, hereafter to 
 be created in this State, or whose charter shall be renewed or extended, 
 shall be subject to the provisions of this Act." {Laws 1829, p. ISt.) {Seep. 
 29, ante.) 
 
 The Court of Appeals has finally adjudged, that associations formed un- 
 der the General Banking Law are corporations — and moneyed corporations ; 
 and that they are within and subject to the general statutes of this State, 
 applicable to moneyed corporations, except when such statutes are incon- 
 sistent with the General Bank Act, or the acts amending the same. Oillett 
 V. Moody (3 Comst. 479); Talmage v. Pell (3 Selden, S28.) 
 
 The Supreme Court, in Cuyler & Sexton v. Sanford (8 Barb. S. C. R. 225), 
 held, that the prohibition contained in § 1 of the above act of May 11th, 
 1835, does not apply to individual bankers under the General Bank Act ; that 
 although an association under that act is a corporation, yet, that an individ- 
 ual banker cannot be so regarded ; that he lacks one of the attributes of a 
 corporation, to wit, — its principle of succession and perpetuity. 
 
 5* 
 
80 GENERAL STATUTES APPLICAB TO 
 
 TITLE IV. 
 
 SPECIAL PEOYISIONS EELATING TO CEETAIN 
 CORPOKATIONS. (1 i?. ^. 601.) 
 
 Sko. 1. Certain books of incorporated companies to be kept open, for certain 
 time. 
 2.- Certain prohibitions and restrictions upon directors of corporations, 
 officers, <&c. 
 
 3. Debts of corporations not to exceed certain amount; penalty for 
 
 excess. 
 
 4. Certain transfers of property prohibited ; corporations dissolved in 
 
 certain cases. 
 
 5. Supreme court to correct illegal elections; proceedings for that 
 
 purpose. 
 
 6. By-laws regulating elections ; evidence of right to vote. 
 
 7. Oath to be taken by inspectors of elections. 
 
 8. On failure to hold elections of directors, new day to be appointed ; 
 
 proceedings. 
 
 9. Penalty on corporations, &c., for purchasing their notes, iStc, at less 
 
 sum than that due thereon. 
 
 10. Officers, (fee, of corporations not to loan upon notes offered to them 
 
 officially for discount. 
 
 11. Extent and application of the provisions of this Title. 
 
 Certain § 1- The book or books of any incorporated company 
 
 open a* cer- jn this State, in whicb the transfer of stock in any such 
 
 tain times. *" 
 
 company shall be registered, and the books containing the 
 names of the stockholders in any such company, shall, at 
 all reasonable times during the usual hours of transacting 
 business, be open to the examination of every stockholder 
 of such company, for thirty daysprevious to any election 
 of directors; and if any officer having charge of such 
 books shall, upon demand by any stockholder as aforesaid, 
 8 Wend. 588. refuse or neglect to exhibit such books, or submit them to 
 examination as aforesaid, he shall, for every such offence, 
 forfeit the sum of two hundred and fifty dollars, the one 
 moiety thereof to the use of the people of this State, and 
 
BANKING CORPORATIONS. 80a 
 
 the other moiety to him who will sue for the same, to be 
 recovered by action of debt in any court of record, to- 
 gether with the costs of such suit- 
 
 S 2. It shall not be lawful for the directors or managers DWdenas 
 
 " , from surpltis 
 
 of any incorporated company in this State to make divi- p'oA's ""^y- 
 dends, excepting from the surplus profits arising from the 
 business of such corporation ; and it shall not be lawful 
 for the directors of any such company to divide, with- 
 
 1 1 1 ij J" Capital not 
 
 draw, or m any way pay to the stockholders, or any or to be re- 
 them, any part of the capital stock of such company, or to 
 reduce the said capital stock, without the consent of the 
 legislature ; and it shall not be lawful for the directors of 
 such company to discount or receive any note, or oliier Notes for 
 
 • 1 ' K 1 ^ • n •1 n instalments 
 
 evidence ot debt, m payment ol any instalment actually on stock not 
 called in and required to be paid, or any part thereof, due ™"™*^*- 
 or to become due on any stock in the said company ; nor 
 shall it be lawful for such directors to receive or discount :;,,:;j 
 any note, or other evidence of debt, with the intent of en- to^'Trfthd'aw 
 
 1 ■ ' i ' , ' • ' , instalments, 
 
 abling any stockholder in such company to withdraw any 
 part of the money paid in by him on his stock ; and in 
 case of any violation of the provisions of this section, the 
 
 , ■' i i ^ ■ ' IJabUltyof 
 
 directors under whose administration the same may have ^"X"'" 
 happened, except those who may have caused their dissent sio'm. '"° 
 therefrom to be entered at large on the ihinutes of the said 
 directors at the time, or were not present when the sameswend.eis. 
 did happen, shall, in their individual and private ca,pacities, 
 jointly and severally be liable to the said corporation, and 
 to the creditors thereof in the event of its dissolution, to 
 
 , I -. . • ■ . . ^ ' 1 . ,'''.!''.'■' Extent of 
 
 the full amount of the capital stock of the said company"**""'^' 
 so divided, withdrawn, paid out, or reduced, and to the 
 full amount of the notes or other evidences of debt so taken 
 or discounted in payment of any stock, and to the full 
 
805 GENERAL STATUTES APPLICABLE TO 
 
 amount of any notes or other evidences of debt so dis- 
 counted with the intent aforesaid, with legal interest on 
 the said respective sums, from the time such liability ac- 
 Notbarredcrued; and no statute of limitations shall be a bar to any 
 
 by statute of , . . . it 
 
 iiirftationfl. suit at law or m equity against such directors, for any 
 sums for which they are made liable by this section : Pro- 
 
 Proviso 
 
 vided, That this section shall not be construed to prevent 
 a division and distribution of the capital stock of such com-, 
 pany which shall remain after the payment of all its debts, 
 upon the dissolution of such company, or the expiration of 
 its charter. 
 Amount of 8 3. The total amount of the debts which any incor- 
 
 debts. ° •' 
 
 porated company shall at any time owe, whether for de- 
 posits, or by bond, bill, note, or other contract, over and 
 above the actual deposits with the said company, shall 
 riot at any time exceed three times the amount of the capi- 
 tal stock actually paid in ; and, in case of any excess, the 
 
 ^c^B^'for directors, under whose administration the same may have 
 happened, except those who may have caused their dissent 
 therefrom to be entered at large on the minutes of the said 
 directors at the time, and except those who were not pres- 
 sent when the same did happen, shall, in their individual 
 and private capacities, jointly and severally, be liable for 
 such excess to the said corporation, and in the event of its 
 dissolution, to any of the creditors thereof, to the full 
 amount of such excess, with legal interest from the time 
 Not barred ^^''^ liability accrued ; and no statute of limitations shall 
 
 i^tattoM." be a bar to any suit at law or in eqiuty against such direc- 
 tors, for any sums of money for which they are made liable 
 by this section. 
 Certain | 4. Whenever any incorporated company shall have 
 
 proSffia. refused the payment of any of its notes, or other evidences 
 
BANKING CORPORATIONS. 80(r 
 
 of debt, in specie, or lawful money of the United States, it 
 shall not be lawful for such company, or any of its officers, 
 to assign or transfer any of the property or choses in ac- 
 tion of such company, to any officer or stockholder of such 
 company, directly or indirectly, for the payment of any 
 debt ; and it shall not be lawful to make any transfer or 
 assignment in contemplation of the insolvency of such 
 company, to any. person or persons whatever; and every 
 such transfer and assignment to such officer, stockholder, or 
 other person, or in trust for them or their benefit, shall be 
 utterly void ; and whenever any incorporated company 
 shall have remained insolvent for one whole year, or for 
 one year shall have neglected or refused to redeem its oorpora- 
 notes or other evidences of debt, in specie or other lawful ea dissoiTeai 
 
 in certain 
 
 money of the United States, or shall, for one year, have '=*'^=- 
 suspended the ordinary business of such incorporation, 
 such company shall thereupon be deemed and adjudged to 
 have surrendered the rights, privileges and franchises 
 granted by any act of incorporation, and shall be deemed 
 to be dissolved. 
 
 § 5. It shall be the duty of the supreme court, upon Powers of 
 
 _ supreme 
 
 the application of any person or persons, or body corporate, ""^JJiJ"" 
 that may be aggrieved by, or may complain of, any elec- *'"'"'""• 
 tion, or any proceeding, act, or matter, in or touching the 
 same (reasonable notice having been given to the adverse 
 party, or to those who are to be affected thereby, of such 
 intended application), to proceed forthwith and in a sum- 
 mary way to hear the affidavits, proofs and allegations of 
 the parties, or otherwise inquire into the matters or causes 
 of complaint, and thereupon to establish the election so 
 complained of, or to order a new election, or make suck 
 order and give such relief in the premises as right and 
 
80d GENERAL STATUTES APPLICABLE TO 
 
 justice may appear to the said supreme court to require r 
 
 inj'°°°° " Provided, That the said supreme court may, if the case 
 shall appear to require it, either order an issue or issues to 
 be made up in such manner and form as the supreme court 
 may direct, in order to try the respective rights of the 
 parties who may claim the same, to the oflSce or offices or 
 franchise in question ; or may give leave to exhibit, or 
 direct the attorney-general to exhibit, one or more inform- 
 ation or informations in the nature of a quo wa/rranto in 
 the premises. 
 Certain by- § ^- ^0 by-law of tlic directors and managers of any 
 
 published! incorporated conipany, regulating the election of directors 
 or officers of such company, shall be valid, unless the same 
 shall have been published for at least two weeks in some 
 newspaper in the county where such election shall be held> 
 at least thirty days before such election ; and in all cases 
 where the right of voting upon any share or shares of the 
 
 right to vote. g|;Qg]j Qf any incorporated company of this State shall be 
 questioned, it shall be the duty of the inspectors of the 
 elections to require the transfer books of said company as 
 evidence of stock held in the said company ; and all such 
 shares as may appear standing thereon in the name of any 
 person or persons shall be voted on by such person or per- 
 sons directly by themselves, or by proxy, subject to the 
 provisions of the act of incorporation, 
 oaffiofin- § 7. The inspectors who may be appointed to conduct 
 
 election, any election of directors or any other officer of any incor- 
 porated company of this State, shall be required, before 
 entering on the duties of their appointment, to take or sub- 
 scribe the following oath or affirmation : " I, A. B., do 
 solemnly swear [or affirm, as the case may be,] that I will 
 execute the duties of an inspector for the election now to be 
 
BANKING CORPORATIONS. 806 
 
 held with strict impartiality, and according to the best of 
 my ability." , 
 
 § 8. If at any time hereafter the election for directors „,°°j^*^^^^ 
 of any bank or other incorporated company of this State to b?lp-**^ 
 
 pointed. 
 
 shall not be duly held on the day designated and appointed 
 by the act incorporating such bank or other incorporated 
 company, it shall be the duty of the president and direct- 
 ors of such bank or other incorporated company to notify 
 and cause an election for directors to be held within sixty 
 days immediately thereafter ; and, in all cases, no share or ytJ^Jto^'tg 
 shares shall be voted upon, except by such person or per-B°qu"n^tdayi 
 sons who may have appeared on the transfer books of said 
 company to have had the right to vote thereon on the day 
 when, by the act of incorporation of such company, the 
 election ought to have been held ; which said right so to 
 vote shall be exercised by the persons so appearing as afore- 
 said upon the transfer books of such company, on any day 
 when such election may be held. 
 
 § 9. It shall not be lawful in any company incorporated Corpora- 
 for banking purposes, its officers, agents, or servants, or "ft"™^^*''- 
 any of them, directly or indirectly to purchase or to be notes at a 
 
 discount. 
 
 interested in the purchase of any promissory note, or other 
 evidence of debt, issued by any such company, at a less 
 sum than appears by the face thereof to be due an.d pay- 
 able ; and any person offending against the provisions of penalty. 
 this section shall forfeit and pay three times the nominal 
 amount of the note or other evidence of debt so pur- 
 chased, to be recovered, with costs of suit, by any person 
 who will sue for the same in any court of competent 
 jurisdiction. 
 
 § 10. It shall not be lawful for any person being presi- ^officers.^. 
 dent, director, cashier, clerk, agent, or any way interested {jj^"^ „p°n'° 
 
 certain notes 
 
SOf GENERAL STATUTES. 
 
 or concerned in the management of the concerns of any 
 feuch company, to discount, or directly or indirectly make 
 any loan upon any note, bill, or other evidence of debt, 
 which shall have been offered to such directors for dis- 
 Notes, 4c., count : and every note, bill, or other evidence of debt so 
 
 void. 4 ' "' ' ' 
 
 discounted, or upon which any loan shall have been made 
 by any of the persons aforesaid, knowing that such note 
 had been so offered and refused, shall be utterly void ; and 
 Further the pcrsou offending herein, knowing that such note had 
 been so offered and refused, by making any discount or 
 loan, shall, for every such offence, forfeit and pay to any 
 person who will sue for the same twice the amount of any 
 such discount or loan, to be recovered by action of debt, 
 with costs of suit, in any court of competent jurisdiction. 
 Extent of § ^^- '^^^ provislous of this Title shall not apply to any 
 
 this Title, incorporated library, or religious society ; nor to any 
 
 moneyed corporation which shall have been or shall be 
 
 created, or whose charter shall be renewed or extended, 
 
 after the first day of January, one thousand eight hundred 
 
 BeeTitiea ^^^ twcnty-eight, and which shall be subject to the pro- 
 
 mlie. " ' visions of the second Title of this Chapter. (27a.) 
 
 (2'7a) In June, 1860, the (7ow< of Appedls, m Robinson y. The Bank of 
 Attica (21- N. Y. R. 406), held that banking corporations under the general 
 banking law are within the proyiBions of the 4th section of the above Fourth 
 Title of the Revised Statutes, prohibiting " any incorporated company" which 
 shall have refused the payment of any of its notes or other evidences of 
 debt in specie, or lawful money of the United States, " to make any transfer 
 or assignment, in contemplation of the insolvency of such company, to any 
 person or persons whatever;" and that they are not excluded by the excep- 
 tion in the 11th section of that Title; because, though moneyed corporations, 
 they are, by the recent construction of the general banking law, not subject 
 to Title II., of the^same^Caiapter of the Revised Statutes. See Title II, pp. 1 
 to 24, ante ; alio, the case above cited and note, post. 
 
SPECIAL STATUTES 
 
 APPLICABLE TO 
 
 BANKING CORPORATIONS 
 
 AND 
 
 INDIVIDUAL BANKERS. 
 
 [general banking law as oeiginallt passed.] 
 (laws 1838, chap. 260, p. 245.) 
 
 An Act to authorize the business of JBanking. JPassed 
 April 18, 1838. 
 
 The People of the State of New YarJc, represented in 
 Senate and AssewMy, do enact as follows : 
 
 § 1. The comptroller is hereby authorized and required 
 to cause to be ei graved and printed in the best manner, to drcaiatSig'^* 
 guard against counterfeiting, such quantity of circulating co'ntereignea 
 notes, in the similitude of bank notes, in blank, of the dif- ^^™ '''* 
 ferent denominations authorized to be issued by the incor- 
 porated banks of this State, as he may from time to time 
 deem necessiirv, to carry into effect the provisions of this 
 act, and of such form as he may prescribe. Such blank 
 circulating notes shall be countersigned, numbered, and 
 registered in proper books, to be provided and kept for that 
 purpose in the oiSce of said comptroller, under his direc- 
 6 
 
82 SPECIAL STATUTES APPLICABLE TO 
 
 • 
 
 tion, by such person or persons as the said comptroller 
 shall appoint for that purpose, so that each denomination 
 of such circulating notes shall all he of the sa/me similitude, 
 and bear the uniform signature of such register, or one of 
 such registers. ( 28 ) 
 ontransfer § 2. "Whenever any person or association of persons, 
 faS^'note"" foi'mcd for the purpose of banking under the provisions of 
 S''by Mmp' this act, shall legally transfer to the comptroller any portion 
 socktions. of the public debt now created, or hereafter to be created, 
 by the United States, or by this State, or such other States 
 of the United States as shall be approved by the comptrol- 
 ler, such person or association of persons shall be entitled 
 to receive from the comptroller an equal amount of such 
 circulating notes, of different denominations, registered and 
 countersigned as aforesaid : but such public debt shall in 
 stock to be all cases be, or be made to be, equal to a stock of the State 
 
 equal to 5 
 
 rtook^of 'tiis producing five per cent, per annum ; and it shall not be 
 *'***■ lawful for the comptroller to take any stock at a rate above 
 its par value. ( 29 ) 
 
 §3. Such person or association of persons are hereby au- 
 iuttoHzert to thorized, after having executed and signed such circulating 
 as money, notes in the manner required by law, to make them obliga- 
 tory promissory notes, payable on demand, at the place of 
 
 (28) § 1 amended, May 26, 1841 {Laws 1841, chap. 319, p. 309, § 6), by 
 excluding therefrom the words, " all be of the same similitude and." See Act 
 of May 26, 1841, j)OS«. 
 
 By § 8 of the act of April 15th, 1854 {Laws 1854, ctap. 242, p. 551 ), it is 
 enacted, that the " circulating notes delivered to individual hankers, shall 
 express only the individual liahility of the banker issuing them, and shall be 
 signed by him only, and not by any attorney or agent." See this act, post. 
 
 (29) § 2 amended so as to make it unlawful for tlfe comptroller or the 
 Superintendent of the Banlc Department to receive any State stocks except 
 
BANKING CORPORATIONS. 83 
 
 business witliin this State, of such person or association, to 
 
 the public stock issued or to be issued by the State of New York. See the 
 following acts: 
 
 Act of May 14th, 1840 {Lms 1840, chap. 363, p. 301, § 1). 
 Act of March 16th, 1844 {Laws 1844, chap. 41, p. 85, § 1). 
 Act of April 12th, 1848 (Laws 1848, chap. 340, p. 462, § 1). 
 Act of March 12th, 1849 {Laws 1849, chap. 97, p. 136, § 2). 
 Act of April 10th, 1849 {Laws 1849, chap. 313, p. 455, § 1). 
 See these acts, post. 
 
 It was finally adjudged by the Court of Appeals, ia October, 1852, in 
 Talmage v. Pell (3 Selden, 328, 347, 348), that associations, organized under 
 the General Banking Law, " have no power to purchase State or other stocks 
 for the purpose of selling them for profit, or as a means of raising money, 
 except when such stocks have been received in good faith as security for a 
 loan made by or a debt due to such association, or when taken in pay- 
 ment, in whole or in part, of such loan or debt" See, also, The Bank Com- 
 missioners V. The St. Lawrence Bank (3 Selden, 513). 
 
 All bank charters granted by this State, from 1791 to 1838, contained an 
 express prohibition, substantially in the following words, — " The said corpo- 
 ration shall not, directly or indirectly, deal or trade in buying or selling any 
 goods, wares, merchandise, or commodities whatsoever, or in buying or sell- 
 ing any stock created under any law of the United States, or of any particu- 
 lar State, unless in selling the same when truly pledged by way of security 
 for debts due to the said corporation." See the charters of every Safety 
 Fund Bank, as well as the charters granted before 1829. 
 
 The two charters of the National Bank of the United States, granted by ■ 
 Congress in 1791 and 1816, contained express prohibitions against trading in 
 any thing except bullion, &c. ; also, against purchasing any public debt 
 whatever. See these charters, in the United States Statutes at Large. . 
 
 The charters of the Bank of England, Bank of France, Bank of Scotland, 
 and Bank of Ireland, also contain express prohibitions against trading (Stat- 
 utes-at-Large, quarto ed., vol. 3, p. 558 ; 1 McCuUoch's Diet., American ed. 
 (1840), pp. 76, 117, 121, 122; Lawson's History of Banking, Amer. ed., p. 
 228; Rees'Cyclo. article "Bank.") 
 
 The Safety Fund Banks were bound to pay annually to the treasurer of 
 the State a sum equal to one half of one per cent, on their capital stock, until 
 such payments amounted to three per cent, upon their respective capitals 
 (Laws 1829, 167, §§ 2, 4 ; see pp. 29, 30, ante). By the Safety Fund sys- 
 tem, the "bank fund" was not only limited to a specified percentage 
 on capital, but was made liable for the payment of all the " debts, exclusive 
 
84 SPECIAL STATUTES APPLICABLE TO 
 
 loan and circulate the same as money, according to tbe or- 
 
 of capital stock, of any of the said corporations " which should become insol- 
 vent (see §§ 4, 9, 10, of the act of 1829, pp 30, 31, 32, ante). But by the 
 general law of 1838, no bill or note can be delivered out by the Slate officer 
 having exclusive charge of the issue department, unless the same shall be first 
 secured by a transfer to that department of government stocks, <!sc., in value 
 equal to the full amount of every bill or note so issued; and such stocks, &c., 
 are to be held in pledge " exclusively for the redemption " of such bills or 
 notes (§ \%post). By the system of 1829, the "Safety Fund" was raised 
 by a contribution of a small percentage upon the capital of each bank, with- 
 out any reference whatever to the amount of its issues. But under the sys- 
 tem of 1838, the trust fund, held in pledge by the issue department, is ^ro- 
 portioned to the issues of each banking corporation and individual banker, with- 
 out any reference whatever to the amount of their nominal or actual capitals. 
 The principle of separating the issue from the banking department was 
 advocated by Mr. Lotd, in England, as early as the year IBS'?. In 1838, it 
 was adopted by the legislature of New York ; and in 1844, Sir Robert Peel 
 practically carried into effect the same principle, in dealing with the Bank 
 of England on the renewal of its charter iii that year. By the renewed 
 charter (1844) of this institution, it is enacted that there shall be transferred, 
 (fee, " to the issue department of the Bank of England, securities to the value 
 of £14,000,000, whereof the debt due by the public to the said governor and 
 company shall be and be deemed a part." (See this Act, Stat. 7 & 8 Vict., 
 c. 32.) 
 
 " The object of this statute (Stat. 1 & ?, Vict, c. 32) has been," says Mr. 
 McCnLLOCH, " to obviate the chances of over issue and sudden fluctuations in 
 the quality and value of money, by limiting the power to issue notes payable 
 on demand," <fec. * * * " While the directors are left to manage the 
 banking department at their discretion, their management of the issue depart- 
 ment is subjected to what seems to be a well-devised system of restraint. 
 The bank is allowed to issue to £14,000,000 of notes, upon securities (of which 
 the debt of £11,015,100 lent by her to Government is apart); and whatever 
 paper the issue department may at any time issue over and above this maxi- 
 mum amount of securities, it must have an equal amount of coin and bul- 
 lion in its coffers. Hence, it is impracticable for the issue department to in- 
 crease its issues without, at the same time, proportionally increasing its stock 
 of coin and bullion, or to diminish the latter without proportionally dimin- 
 ishing the amount of paper supplied to the public and banking department" 
 (McCuUoch's Diet., London ed., 1850, pp. 82 to 88 ; Laweon's Hist of Bank- 
 ing, Amer. ed., 1852, pp. 76, 11 ; Gilbart on Banking, Amer. ed., 1851, p. 61; 
 Levi on Mercantile Law, 1854, p. 202.) 
 
 In 1846, the people of this State made it a part of the fundamental law, 
 that " the legislature shall provide by law for the registry of all bills or 
 notes issued, or put in circulation as money, and shall require ample security 
 for the redemption of the same in specie." (Constitution 1846, Art 8, § 6.) 
 
BANKING CORPORATIONS. 85 
 
 dinary course of banking business, as regulated by the laws 
 and usages of this State. ( 30 ) 
 
 (so) § 35 of tlie amendatory act of April 2, 1829 (see p. 38, note 14, ante), 
 is in these 'words : " No moneyed corporation subject to the provisions of this 
 act, shall issue any bill or note of the said corporation, unless the same shall 
 be made payable on demand and without interest." § 1 of the same act 
 (see p.' 29, ante) is in these "words : " Every moneyed corporation having 
 hanking powers, hereafter to be created in this State, or whose charter shall 
 be renewed or extended, shall be subject to the provisions of this act." See 
 § 62 of the General Code of Statute Regulations of 1827 (p. 23, ante). This 
 Code was amended as to all future " moneyed corporations having banking 
 powers," by the act of April 2d, 1829 (see p. 29 ante, and note 13, on that 
 page. See, also, Talmage v. Pell, 3 Selden, 828, 347, 348; §§ 3, 4, of the 
 act of May 14, 1840, posi; § 1 of the act of May 6, 1844, ^os<; § 1 of the 
 act of April 10, 1850, and notes 36 and 39, post.) 
 
 The legislature of 1837 had repealed so much of the Restrainivg Act of 
 1830 (see §§ 1, 3 cfc 6, pp. 39, 41 cfc 42, ante; also, Note 16 on p. 42, ante) as 
 prohibited " a person or association of persons, not incorporated, from " keep- 
 ing offices for the purpose of receiving deposits, or discounting notes or 
 bills," {Laws 1837, p. 14 cfc p. 49, ante). But the inhibitions of the Restrain- 
 ing Acts against the issue (by individuals or bodies corporate unless "thereto 
 speceaHj/'authorized by law ") of bills, notes, or other evidences of debt, on 
 loan, or for circulation as money, were left by the legislat^u'e of 1837 in full 
 force (see § 4, p. 26, ante, & §§ 1, 3, c& 6, pp. 39-43, ante). The legislature of 
 1838, by § 3 of the General Bank Act, so far modified §§ 1, 3, & 6, of the 
 Restraining Act of 1830, and also § t on page 26, ante, as to authorize indi- 
 viduals and corporations acting or formed under the general law, to " loan 
 and circulate as money," countersigned and secured promissory notes, paya- 
 ble on demand at their place of business within this State, " according to 
 the ordinary course of banking business as regulated by the laws and usages 
 of this State.'' (See Note 16, pp. 42-48, ante, and the cases there cited.) 
 
 To authorize corporations, formed under the General Bank Act, to loan 
 and circulate promissory notes, or other evidences of debt, as money, an 
 express grant of power was required. (See §4, and note 12, p. 26, ante; 
 also, §§ 3 & 6, and note 16, pp. 41 & 42, ante.) Hence it was conceded by 
 Senator Verplanok, in Warner v. Beers (23 Wendell, 158, 159), that the 
 General Bank Act was only a "conditional repeal" of the Restraining 
 Acts. He says, " certain conditions are imposed to entitle them" (associa- 
 tions) " to this conditional repeal. They can issu^ no paper, unless it be 
 secured in a certain way, and duly attested by the comptroller. The very 
 same conditions are imposed on every individual who thinks fit to engage in 
 this business." (23 Wend. 158, 159) ; see, also, Safford v. Wyckoff (1 Hill, 
 
86 SPECIAL STATUTES APPLICABLE TO 
 
 If notes § 4. In case the maker or maters of any such circulating 
 
 not redeemed • i i n 
 
 in lawftii note, countersigned and registered as aforesaid, shall at any 
 
 money, ) o o ^ ./ 
 
 to?e^a*e™m' time hereafter, on lawful demand, during the usual hours 
 fnnd. of business, between the hours of ten and three o'clock, at 
 
 the place where such note is payable, fail or refuse to re- 
 deem such note in the lawful money of the United States, 
 the holder of such note making siich demand may cause 
 the same to be protested for' non-payment by a notary pub- 
 lic, under his seal of office, in the usual manner ; and the 
 comptroller, on receiving and filing in his office such pro- 
 test, shall forthwith give notice in writing to the maker or 
 makers of such note to pay the same ; and if he or they 
 shall omit to do so for ten days after such notice, tbe comp- 
 troller shall immediately thereupon (unless he shall be 
 
 11_S. C, ; 4 Hill, 444, 463) ; Banh of Orleans v. Merrill (2 Hill, 295) ; Smith 
 & Warner v. Strong (2 Hill, 241); Swift v. Beers (3 Denio, 70); Leavitt v. 
 Palmer (3 Comstock, 19); Bank Commissioners v. The St. Lawrence Bank 
 (3 Selden, 513) ; Talmage v. Pell (3 Selden, 328) ; also, the cases cited in 
 Note 14, p. 40, ante. . 
 
 The third section of the General Bank Act contains the only grant of 
 power to indiyidual bankers and banking corporations to issue, loan, or cir- 
 culate their own engagements or promises. See note 39, post, and note 61, 
 post, and the cases there cited. 
 
 In May, 183"?, all the banks of this State suspended specie payments 
 (Laws of 1837, p. 614). 
 
 In April, 1838, when the General Bank Act was passed, every bank in 
 the United States, without a single exception, was in a state of suspension. 
 Their notes and bills were made payable on demand, but they were notpaid 
 when demanded. 
 
 In the midst of this universal bank suspension, the legislature of 1838 
 so far modified or repealed the Restraining Acts (§ 4, p. 26, ante, and §§ 3 & 
 6, pp. 41, 42, ante) as to authorise banking corporations, formed under the 
 general law, to keep offices for the purpose of receiving deposits, or dis- 
 counting bills or notes ; and also, to authorize such corporations avid indi- 
 viduals to loan and circulate a certain kind of secured promissory notes, 
 leaving ^he inhibitions of the Restraining Acts in full force as to every 
 other evidence of debt. See note 39, post, and the cases there cited ; also, 
 note 1 6, pp. 42-48, ante, and the cases there cited. 
 
BANKING COEPOUATIONS. 87 
 
 satisfied that there is a good and legal (Jefence against the 
 payment of such note or notes), give notice in the State 
 paper that all the circulating notes issued by such person 
 or association, will be redeemed out of the trust funds in 
 his hands, for that purpose; and it shall be lawful for the 
 comptroller to apply the said trust funds belonging to the 
 maker or makers of such protested notes to the payment 
 and redemption of such notes, with costs of protest, and to 
 adopt such measures for the payment of all such circulating 
 notes put in circulation by the maker or makers of such 
 protested notes, pursuant to the provisions of this act, as 
 will, in his opinion, most effectually prevent loss to the 
 holders thereof. ( 31 ) 
 
 § 5. The comptroller may give to any person or associa- powers or 
 tion of persons so transferring stock, in pursuance of the ^^fg^g"^*'' 
 provisions of this act, powers of attorney to receive interest Sron "" 
 
 T.,1, i'i 1 •• public Stocks 
 
 or dividends thereon, which such person or association may &c. 
 receive and apply to their own use ; but such powers may be 
 revoked upon such person or association failing to redeem 
 the circulating notes so issued, or whenever, in the opi- 
 nion of the comptroller, the principal of such stock shall beTevokcd. 
 become an insuflScient security ; and the said comptroller, 
 upon the application of the owner or owners of such trans- 
 ferred Stock in trust, may, in his discretion, change or 
 transfer the same for other stocks of the kinds before speci- 
 fied in this act, or may re-transfer the said stocks, or any 
 part thereof, or the mortgages, or any of them hereinafter 
 mentioned and provided for, upon receiving and can- 
 
 (31) § i amended by the Act of March 15th, 1841 (Laws 1841, chap. 46, 
 p. 26, § 1): and again amended by the Act of April 5th, 1849 {Laws 1849, 
 chap. 226, p. 840, § 1): and also by the Act of April IT, 1851. {Laws 1861, 
 chap. 203, p. S11, % 4.) See these acts, post. 
 
the notes 
 delivered, 
 
 88 SPECIAL STATUTES APPLICABLE TO 
 
 celing an equal anjonnt of such circulating notes delivered 
 
 by him to such person or association, in such manner that 
 
 maybe^ the circulating notes shall always be secured in full, either 
 
 changed or , 
 
 retransferr'd. ^y stocks or by stocks and mortgages, as in this act pro- 
 vided. (3H) 
 Bills how § 6. The bills or notes so to be countersigned, and the 
 
 stamped, payment of which shall be so secured by the transfer of 
 public stocks, shall be stamped on their face, " Secured by 
 the pledge of public stocks." 
 Mortgages § 7. Instead of transferring public stocks as aforesaid to 
 
 token fori sccure the whole amount of such bills or notes, it shall be 
 lawful for such person or association of persons, in case they 
 shall so elect, before receiving any of the said bills or notes 
 to secure the payment of one-half of the whole amount so to 
 be issued, by transferring to the comptroller, bonds and 
 mortgages upon real estate, bearing at least six per cent, 
 interest, of this State, payable annually or semi-annually : 
 in which case all such bills or notes issued by the said per- 
 son, or association of persons, shall be stamped on their 
 face, " Secured by pledge of public stocks and real estate." 
 
 (32) 
 
 § 8. Such mortgages shall be only upon improved, pro- 
 gages*; ™we' ductive, unincumbered lands, within this State, worth, in- 
 
 how ascer- 
 tained, dependently of any buildings thereon, at least double the 
 
 amount for which they shall be so mortgaged ; and the 
 comptroller shall prescribe such regulations for ascertain- 
 ing the title and the value of such lands as he may deem 
 necessary ; and such mortgages shall be payable within 
 such time as the comptroller may direct. ( 32 ) 
 
 (31 J) See Act of May 14, 1840, § 1. {Laws 1840, chap. 363, p. 306.) 
 (32) §§ 7 & 8 modified by the Act of April 12tli, 1848 (Laws 1848, chap. 
 
 Character 
 of the mort- 
 
BANKING CORPOEATIONS. 89 
 
 § 9. The comptroller may, in his discretion, re-assign comptroi- 
 tlie said bonds and mortgages, or any of them, to the person "m mort-*' 
 
 mort- 
 gages. 
 
 or association who transferred the same, on receiving other 
 approved bonds and mortgages of equal amount ; and when 
 any sum of the principal of the bonds and mortgages trans- 
 ferred to the comptroller slmjl be paid to him, he shall 
 notify the person or association that transferred the bonds 
 and mortgages of such payment, and may pay the same to 
 such person or association, on receiving other approved 
 bonds and mortgages of equal amount. ( 33 ) 
 
 §10. The person or association of persons assigning owners of 
 
 ,-,-,, , ^-, mortgages 
 
 such bonds and mortgages to the comptroller, may receive ?"v receive 
 the annual interest to accrue thereon, unless default shall tl&'^er' 
 be made in paying the bills or notes to be countersigned as 
 aforesaid, or unless, in the opinion of the* comptroller, the 
 bonds and mortgages or stocks so pledged shall become 
 an insufficient security for the payment of such bills or 
 notes. (34) 
 
 § 11. In case such person or association of persons shall Pledged 
 
 securities 
 
 fail or refuse to pay such bills or notes on demand, in the^f™'"''*' 
 manner specified in the fourth section of this act, the comp- 
 troller, after the ten days' notice therein mentioned, may 
 
 340, p. 462, § 2). By § 3 of this act, it is enacted that no mortgage depos- 
 ited, shall be for a greater amount than $6,000. By § 10 of the Act of 
 April 12th, 1851 {Laws of 1851, chap. 164, p. 309), it is enacted, that "no 
 one mortgage of lands shall hereafter be received as security for circulating 
 bills to an amount greater than five thousand dollars." See these acts, 
 post. 
 
 (33) See § 7 of the Act of May 26th, 1841, post {Laws 1841, chap. 319, p. 
 310, 1), also, § 4 of the Act of April 12, 1851 [Laws of 1851, chap. 164, 
 p. 309.) See these acts, post. 
 
 (34) See §§ '7, 8, <fe 9 of the Act of May 14, \SiO, post (Laws 1840, chap, 
 363, p. SOI). See this act, post. 
 
90 SPECIAL STATUTES APPLICABLE TO 
 
 proceed to sell at public auction the public stocks so 
 pledged, or the bonds and mortgages so assigned, or any or 
 
 Proceeds, 
 
 a°Tied.''° either of them, and out of the proceeds of such sales shall 
 pay and cancel the said bills or notes, default in paying 
 which shall have been made as aforesaid ; but nothing in 
 this act contained shall be^considered as implying any 
 pledge on the part of the State for the payment of said bills 
 or notes, beyond the proper application of the securities 
 pledged to the comptroller for their redemption. 
 Securities ^ ^^' '^^ public debt and bonds and mortgages to be 
 
 '"xchisfvoiy ' deposited with the comptroller by any such person or asso- . 
 
 notes. elation, shall be held by him exclusively for the redemp- 
 tion of the bills or notes of such person or association put 
 in circulation as money, until the same are paid. 
 Theeomp- § 13. The plates, dies, and materials to be procured by 
 
 troller to 
 
 keep in his the Comptroller for the printing and making of the circula- 
 bank plates, ^.-^^g notcs provided for hereby, shall remain in his custody 
 and under his direction ; and the expenses necessarily in- 
 curred in executing the provisions of this act shall be aud- 
 ited and settled by the comptroller, and paid out of any 
 moneys in the treasury not otherwise appropriated ; and 
 for the purpose of reimbursing the same, the said comp- 
 troller is hereby authorized and required to charge against 
 and receive from such person or association applying for 
 such circulating notes, such rate per cent, thereon as may 
 be sufficient for that purpose, and as may be just and rea- 
 sonable. ( 35 ) 
 
 (86) By a ooncuiTent resolution of the Senate and Assembly of March 
 4th, 1852, it is made the duty of the superintendent of the Banking Depart- 
 ment, whenever any bank, banking association, or individual banker shall 
 give notice of an intention to discontinue the business of banking, — to de- 
 stroy or cause to be destroyed, all plates and impressions belonging to such 
 bank, banking association, or individual banker. (Laws of 1852, p. YSl.) 
 
BANKING CORPORATIONS. 91 
 
 § li. It shall not be lawful for the comptroller, or other comptroi- 
 
 " ^ ler not to 
 
 officer, to countersign bills or notes for any person or asso- wtoleyond 
 ciation of persons, to an amount in the aggregate exceeding 
 the public debt, or public debt and bonds and mortgages at 
 their value, as provided in the second section of this act, 
 deposited with the comptroller by such person or associa- 
 tion ; and any comptroller or other person who shall vio- 
 late the provisions of this section, shall, upon conviction, be 
 adjudged guilty of a misaemeanor, and shall be punished 
 by a fine not less than five thousand dollars, or be impris- for a"ioia- 
 
 tionofthis 
 
 oned not less than five years, or by both such fine and section. 
 imprisonment. (35^) 
 
 § 15. Any number of persons may associate to establish cobpoea- 
 
 " •' i. .1 TI0H8, how 
 
 offices of discount, deposit, and circulation, upon the terms'"™^*- 
 and conditions, and subject to the liabilities prescribed in 
 this act ; but the aggregate amount of the capital stock of 
 any such association shall not be less than one hundred 
 thousand dollars. (36) 
 
 (S5iS) It will be perceived, that the Smt fourteen sections of the General 
 Bank Act, relate exclusively to provisions and regulations for the creation 
 and government of the issue department, and the State Officer, who is con- 
 stituted its sole manager, including special directions as to the custody of the 
 bank plates, and the penalties imposed upon the comptroller or superintend- 
 ent (Laws 1851, chap. 164, p. 309, § 8), for any violation of such regulations. 
 In 1843, the legislature compelled every safety fund bank to deposit with 
 the comptroller their bank plates, and made it the duty of that officer safely 
 to keep the same. (Laws 1843, p. 299.) See Constitution of 1846, Art. 8, 
 § 6,— and § 8 of the Act of April 12, 1851 (Laws 1851, chap. 164, p. 309). 
 
 (36) By § 2 of the Act of May 14th, 1840 (Laws 1840, chap. 363, p. 306), 
 it was enacted that no association of persons " shall commence the business 
 of banking, &a., until such association shall have deposited with the comp- 
 troller the securities required by law, to the amount of $100,000." By § 1 
 of the Act of May 6th, 1844 (Laws 1844, chap. 281, p. 416), it was enacted 
 that no individual banker shall commence the business of banking, or receive 
 
92 SPECIAL STATUTES APPLICABLE TO 
 
 tom'ake"°™ § ^ 6. Such persons, under their hands and seals, shall 
 certiflcEte. j^g^^jg ^ certificate which shall specify,— 
 Contents 1. The name assumed to distinguish such association, 
 
 of the certia- ° ' 
 
 '^'^- and to be used in its dealings. 
 
 2. The place where the operations of discount and de- 
 posit of such association are to be carried on ; designating 
 the particular city, town, or village. (37 ) 
 
 circulating notes, until suoli individual bajfeer " shall have deposited with 
 the comptroller the securities required by law, to the amount of $50,000." 
 See Act of April 18, 1848, § 1 (Laws 1848, chap. 340, p. 462). 
 
 (31) In all special Bank Charters granted in this State, prior to the en- 
 actment of the General Banking Law, the location of each bank was fixed 
 by its charter, and each bank was prohibited from carrying on its opera- 
 tions of discount and deposit elsewhere than at the place so designated. 
 
 See Session Laws, 181Y, p. 207, § 1, Bank of Plattsburgh. 
 " 1818, p, 246, § 1, Cherry Valley Bank. 
 
 1825, p. 198, § 1, Commercial Bank of Albany. 
 " 1829, p. 538, § 1, Canal Bank of Albany. 
 
 § 1 of every safety fund banjc charter, from 1829 to 1838, is in one unva- 
 rying form as follows : " There shall be established [in the village of Bata- 
 Tia, and county of Genesee, a bank to be called " The Bank of Genesee,"] 
 whose operations of discount and deposit shall be carried on [in the village 
 of Batavia] and not elsemhere." See Charters of Safety Pund Banks, § 1, in 
 Session Laws, from 1829 to 1838. 
 
 The New York Dry Dock Company was authorized by its charter to em- 
 ploy |200,000 of its capital in banking operations in the tenth ward of the 
 city of New York. (Laws 1825, chap. 114, § 8, p. 180.) In 1829, a special 
 Act was passed, granting that bank permission to establish' an office of dis- 
 count and deposit -m any part of the city of New York. (Laws 1829, chap. 
 295, p. 427.) 
 
 The legislature, by special acts, authorized "The Exchange Bank of 
 Genesee," " Farmers and Mechanics' Bank of Genesee," and the " New York 
 and Erie Bank," — all associations under t}i£ general law of 1838, — to change 
 their respective places of business. (Laws 1848, chap. 82, p. 90 ; Laws 1850, 
 chap. 8, p. 13 ; Laws 1852, chap. 95, p. 109 ; and Laws 1854, chap. 36, p. 97.) 
 See also, " An Act to authorize the Sackett's Harbor Bank to change its 
 place of business" (Laws 1852, chap. 94, p. 108). See also, " An Act to au- 
 thorize the stockholders of the Camden Bank to amend their articles of asso- 
 ciation" (Laws of 1855, chap. 34, p. 43). By the Act of May 6th, 1844 
 (Laws 1844, chap. 281, p. 416, § 3), every individual banker was required to 
 file in the comptroller's office a certificate stating the town, city, or village 
 
BANKING COKPORATIONS. 93 
 
 3. The amount of the capital stock of such association, 
 and the number of shares into which the same shall be 
 divided. (37) 
 
 4. The names and places of residence of the sharehold- 
 ers, and the number of shares held by each of them re- 
 spectively. ( 37 ) 
 
 in which he resides; and this act 'declared it unlawful for such individual 
 banker to " trarisact business " under the General Bank Act, " at any other 
 place than that in which he resides." 
 
 By the Act of April 12th, 1848 (Laws 1848, chap. 340, p. 462, § 1), it 
 was enacted, that " all banking associations or individual bankers," organ- 
 ized under the general banking law, " shall be banks of discount and deposit, 
 as well as of circulation, and the usual business of banking of said associations 
 or individual banker, shall be transacted at the place where such banking 
 associations or individual banker shall be located, agreeable to the location 
 specified in the second clause of § 16 of the Act passed April 18th, 1838, 
 hereinbefore mentioned, and not elsewhere ;" and by this act each association 
 and every individual banker is required, in every report, to state, that " the 
 business of said association or banker has been transacted at such locatioii" 
 
 By the Act of April 15th, 1854 (Laws 1854, chap. 242, p. 551, §§ 1, 2, 3), 
 it is made the duty of the agent or person (designated by the superintendent 
 of the banking department to examine the affairs of banking associations and 
 individual bankers), to " inquire whether any banker transacts the business 
 of banking at the city, town, or village where the circulating notes of such 
 individual banker purport to have been issued and dated, and wheiher any 
 bank or banking association transacts the business of banking at ihe place 
 designated in its charter or certificate of association ;" and sueh person or 
 agent is clothed with power to summon any inhabitant of the county in 
 which he may be conducting the inquii-y, to appear before him and testify 
 in relation to the same ; and if the party so summoned shall refuse to an- 
 swer, &c., he shall forfeit $100, and may be committed to tlie jail of the 
 county, there to remain in close custody, until he shall submit to answer, 
 &c. ; and in case it shall appear from sueh examination that any bank, bank- 
 ing association, or individual banker is in an unsound or unsafe condition 
 to do banking business, " or that the business of banking is not transacted by 
 such bank, banking association, or individual banker at the plac- where said 
 cireulating notes are dated and purport to be issued," Ac, — then said supenn- 
 tendent is required to withhold and refuse to issue or deliver any registered 
 notes to such bank, association, or banker, " until such time as he shall be * 
 satisfied that such bank, association, or banker, is in a sound and safe condi- 
 tion to do banking business, and that the business of banking is transacted by 
 such bank, association, or banker, at the place where their circulating notes 
 
94: SPECIAL STATUTES APPLICABLE TO 
 
 5. The period at wbicli such association shall commence 
 and terminate ; which certificate shall be proved or ac- 
 knowledged, and recorded in the office of the clerk of the 
 county where any office of such association shall.be estab- 
 lished, and a copy thereof filed in the office of the secretary 
 of state. 
 
 Certificate § 17. The Certificate required by the last preceding sec- 
 rec.^rdedana^jQjj^ to be recordcd and filed in the offices of the clerk of 
 the county and secretary of state as aforesaid, or copies 
 thereof, duly certified by either of those officers, may be 
 used as evidence in all courts and places for and against 
 any such association. ( 38 ) 
 
 mupms 8 18. Such association shall have power to carry on the 
 
 pmo6ra of j. tt 
 
 corporations, ijusiness of banking, by discounting bills, notes and other 
 evidences of debt ; by receiving deposits ; by buying and 
 selling gold and silver bullion, foreign coins and bills of 
 
 are dated, and purport to be issued." See the several acts above referred to, 
 post. 
 
 Tlie safety fund banks were expressly authorized to carry on the business 
 of banking, "by issuing bills, notes, and evidences of debt," payable on de- 
 mand. But the legislature not only determined the number, but fixed by 
 their charters, the amount of the capitals of each of these banks ; and the 
 amount so fixed could not be increased without the consent of the govern- 
 ment. 
 
 By § 16 of the General Bank Act, the legislature of 1838, not only au- 
 thorized the organization of an indefinite number of banking corporations, 
 but empowered each to have an original capital of $100,000,000, or any 
 other sum (above $100,000) with power to increase it at pleasure (§ 20). 
 But we have seen, that these banking corporations are only authorized (§ 8) 
 to loan and circulate as money such secured promissory notes, payable on 
 demand, as they shall "receive from the comptroller," and these must bear 
 upon their face the countersign, of that State officer, and the stamp of the 
 government of the State. See note 39, post. 
 ♦ ■ ' ~ 
 
 (38) By the Act of April 10th, 1864 (Laws 1854, chap. 186, p. 442, § 1), 
 all certificates of association, under the general banking law, are to be " filed 
 in the office of the superintendent of the banking department." See this 
 act, post. 
 
BANKING CORPORATIONS. 95 
 
 exchange, in tlie manner specified in their articles of asso- 
 ciation for the purposes authorized by this act ; by loaning 
 
 11 1 • 11 • • Express 
 
 money on real and personal security ; and by exercising powers. 
 such incidental powers as shall be necessary to carry on 
 such business ; J;o choose one of their number as president 
 of such association ; and to appoint a cashier, and such 
 other officers and agents as their business may require, and and'^caswer. 
 to remove such president, cashier, officers and agents at 
 pleasure, and appoint others in their place. (39) 
 
 (89) Among the express po-wers granted to banking associations by § 18, 
 the faculty or power of issuing their own engagements or promises, is not 
 mentioned. The terms of this section are restrictive. The particular Hnds 
 or branches of banking are specified. " The subjects pertaining to the busi- 
 ness of banking," says Gardiner, J., in State of Ohio t. Tell (3 Selden, 328, 
 344), "are designated, and the express powers of the associations are lim- 
 ited to them, and to such incidental powers as may be necessary to transact 
 the business thus defined by the legislature." 
 
 The express powers specified in § 18, are in the exact language of § 3 or 
 §4 of every Safety Fund Bank Charter, with two important exceptions: 
 one exception is, that the power, — expressly granted to all the special charter 
 banks incorporated after 1824, — to carry on tJie business of banking "by 
 issuing bills, notes, and other evidences of debt," — is withheld from corporations 
 formed under the general law; and in the place of the words, " by issuing 
 bills, notes, and other evidences of debt," are substituted these words (not 
 found in any special charter), "by loaning money on real and personal 
 security." The second exception is, that the general power, — " to buy and 
 sell gold and silver bullion, foreign coins, and bills of exchange," found in 
 every specw^ bank charter after 1824,— ris qualified in the 18th section of 
 the General Law, by the addition of these words, — " in the manner specified 
 in their Articles of Association, for the purposes authorized by this act," — 
 thus delegating to the associates themselves, the right, by their articles, to 
 restrict, regulate, limit, or qualify the exercise of this particular power. 
 
 EXPKESS POWERS OF A SAFETY FUND BANK. 
 
 " § S. The said corporation shall have power to carry on the business of 
 banking, by discounting bills, notes, and other evidences of debt: by re- 
 ceiving deposits; by buying and selling gold and silver bullion, foreign 
 coins, and bills of exchange ; by issuing bills, notes, and other evidences of 
 debt ; and by exercising such other incidental powers, as shall be necessary 
 to carry on such business," — (Charter of the Oswego Bank, Laws 1831, p. 
 11, § 3. See all the charters of the same class of banks, § 3 or § 4.) 
 
 The words in italics are omitted in the above, 18th, section. The third 
 
vo SPECIAL STATUTES APPLICABLE TO 
 
 be^prasonS § 1^- '^^^ sLares of said association shall be deemed 
 how to^7 personal property, and shall be transferable on the books 
 
 transferred. ^ x i ./ ; 
 
 section contaias the only express authority, granted by the general law, to 
 moneyed corporations formed under it to issue any bUl, note, or,"eTidence of 
 debt, of such corporation, — ^but the authorized bills or n^tes are to be " re- 
 ceived from the comptroller," who is required to have on hand such a quan- 
 tity as shall be " necessary to carry into effect the provisions of this act." And 
 it is further declared, that the " plates, dies, and materials," employed by 
 the comptroller in making the authorized notes, " shall remain in his custody 
 and under Mk control " — (§§ 2, 3, 13, of the General Bank Act). 
 
 By § 3 associations and individual bankers are authorized to loan and 
 circulate as money, according to the ordinary course of banking business, as 
 regulated by the laws and usages of this State, a certain kind of promissory 
 notes ; but these notes must be issued by the State officer having exclusive 
 charge of the issue department, — be countersigned by him, — secured by 
 ample pledges of government securities, Ac, in his office, — and must be 
 made payable on demand at the place of business, within this State, of such 
 person or association," (§§ 1, 2, 3, of the General Bank Act ; see also, the 
 prohibitions in §§ 3, 6, 10 & 11, in the Restraining Act of 1830, pp. 41, 42 
 cfe 48, ante ; also, notes 14, 15, & 16, pp. 38-48, ante, and the cases there cited: 
 also, note ii\,post, and the cases there cited. 
 
 In October, 1839, the Supreme Court, in Thomas v. Dakin (22 Wend. 
 9-112), held, — that associations under the General Banking Law of 1838 
 are corporations, and that said law was valid and constitutional on the as- 
 sumption that it received the assent of two thirds of the members elected to 
 _ each branch of the legislature. The same point was subsequently adjudged 
 by the Supreme Court in Warner v. Beers, and Bolander v. Stevens ; see also 
 Bank of Watertown v. Assessors, &c., of Watertown (26 Wend., 686) ; De 
 Bow V. The People (1 Deuio, 9) ; Willoughhy v. Oomstock (3 HiU, 389) ; and 
 The People v. Supervisors of Niagara (4 Hill, 20). 
 
 But in April, 1840, the judgments of the Supreme Court in Warner v. 
 Beers, and Bolander v. Stevens, were reversed by the Court for the Correc- 
 tion of Errors, (23 Wend. 103-190). This court, in these two cases, held, 
 (1) That the law entitled " An act to authorize the business of banking," 
 passed April 18th, 1838, is valid and constitutionally passed, although it 
 may not have received the assent of two-thirds of the members elected to 
 each branch of the legislature ; and also held, (2) That associations organ- 
 ized in conformity to the provisions of said act, " are not bodies politic or 
 corpoi'ate within the spirit and meaning of the constitution," of 1821. See 
 also Oifford v. Livingston (2 Denio, 280-402.) 
 
 In December, 1844, in Supervisors of Niagara v. The People ("7 HUl, 804- 
 518), the Court of Errors held, that associations under the general banking 
 law are corporations within the meaning of 1 R. S., 414, §1, and liable to 
 
BANKING CORPORATIONS. 97 
 
 of the association in such manner as may be agreed on in 
 the articles of association ; and every person becoming a 
 shareholder by such transfer, shall in proportion to his 
 
 taxation on their capitals ; and aj£rmed the judgment of the Supreme Court 
 in the same case. 
 
 In July, 1850, in Gillett, Receiver, v. Moody (3 Comstoot, 479-488), the 
 Court of Appeals held, that associations under the general banking law are 
 moneyed corporations, and as such, are within the provisions of the revised 
 statutes (1 R. S., 5S9), "to prevent the insolvency of moneyed corporations, 
 and to secure the rights of their creditors and stockholders" 
 
 In October, 1852, in TaLmnge v. Pell (3 Selden, 328-348), the Court of 
 Appeals finally adjudged as follows : 
 
 " 1. That every association organized under the act to authorize the 
 business of banking, and the Act amending the same, is a moneyed corpora- 
 tion within the meaning of the statutes of this State relating to moneyed 
 corporations ; and is bound and affected by those statutes, excepting only so 
 far as such statutes are inconsistent with the provisions, either of the act to 
 authorize the business of banking, or of the acts amending the same. 
 
 " 2. That such associations are banking corporations, and possess only au- 
 thority to carry on the business of banking in the manner and with the 
 powers specified in the said act. That they have no power to purchase State 
 or other stocks for the purpose of selling them for profit, or as a means of 
 raising money, except when such stocks have been received in good faith, as 
 security for a loan made by or a debt due to such association, or when 
 taken in payment, in whole or in part, of such loan or debt." (3 Selden, 
 347, 348.) 
 
 The case of Talmage v. Pell was twice argued before the Court of Ap- 
 peals; in the July term of 1851, held at Elmira ; and in the April term of 
 1862, held at Albany. 
 
 In delivering the judgment of the Court of Appeals, in July, 1850, in 
 Gillett V. Moody (3 Comst, 479, 485), Bbonson, Ch. J., said, — " That these as- 
 sociations are corporations, and " moneyed corporations," has been directly 
 and expressly adjudged by the highest courts in the State. They are not 
 corporations in a qualified sense, as within the intent and meaning of some 
 particular statute ; but are corporations to all intents and purposes. If any 
 thing can be settled by judicial decisions, this is settled." See also The 
 Bank Commissioners v. The St. Lav/rence Bank (3 Selden, 513). 
 
 That a corporation must show a grant in terms, or by necessary implica- 
 tion, for every power it attempts to exercise. See 1 R. S. 600, § 3, and 
 Note 11, p. 25, ante, and the cases there cited; also, notes 19, 20, & 21, 
 pp. 51-57, ante, and the cases there cited. 
 7 
 
98 SPECIAL STATUTES APPLICABLE TO 
 
 shares, succeed to all the rights and liabilities of prior 
 shareholders ; and no change shall be made in the articles 
 
 No change .ti.ii«i j* •« 
 
 in Articles, of association by which the rights, remedies or security oi 
 
 &c, 
 
 Articles 
 may provide 
 
 its existing creditors shall be weakened or impaired. Such 
 association shall not be dissolved by the death or insanity 
 of any of the shareholders therein. 
 
 § 20. It shall be lawful for any association of persons 
 for inoreMe^ Organized under this act, by their articles of association, to 
 
 of capital. , , 
 
 provide for an increase of their capital, and of the number 
 of the associates, from time to time, as they may think 
 proper. 
 
 S 21. Contracts made by any such association, and all 
 
 •Contracts ° ■/ J ' 
 
 ^gned ^^ notes and bills by them issued, and put in circulation as 
 
 money, shall be signed by the president or vice-president 
 
 and cashier thereof ; and all, suits, actions and proceedings 
 
 Actions brought or prosecuted by or on behalf of such association, 
 
 brooghtin may be brought or prosecuted in the name of the president 
 
 name of the ■' ox. i. 
 
 president, tjjereof ; and no such suit, action or proceeding shall abate 
 by reason of the death, resignation or removal from ofSce 
 of such president, but may be continued and prosecuted 
 according to such rules as the courts of law and equity may 
 direct, in the name of his successor in office, who shall ex- 
 ercise the powers, enjoy the rights, and discharge the duties 
 of his predecessor. ( 40 ) 
 
 (40) In July, 1850, in delivering the judgment of the Oourt of Appeals, 
 in Gillett T. Moody (3 Comst. 479, 485, 486), Bkonson, Ch. J., said,—" There 
 was a difference of opinion between the Supreme Court and the Court of 
 of Errors on the question whether the comstitiUion applied to the free bants 
 — the Supreme Court holding that it was applicable alike to all corpora- 
 tions, while the Court of Errors thought it applied only to corporations cre- 
 ated by special charter, and not to those formed under general laws. But both 
 courts were agreed that the free banks are corporations. If there was room for 
 a doubt on this point after the decision of the Court of Errors in Warner v, 
 Beers (23 Wend., 103), the decision of the same court in The Supervisors of- 
 
BANKING CORPORATIONS. 99 
 
 § 22. All persons having demands against any such Actions 
 
 . . * . T , -, inav be 
 
 association, may maintain actions against the president maintained 
 thereof ; which suits or actions shall not abate by reason Suf 'to™ bate 
 of the death, resignation or removal from office of such &o. 
 president, but may be continued and prosecuted to judg- 
 ment against his successor ; and all judgments and decrees 
 obtained or rendered against such president for any debt 
 or liability of such association, shall be enforced only 
 against the joint property of the association, and which 
 property shall be liable to be taken and sold by execution 
 under any such judgment or decree. ( 40 ) 
 
 § 23. No shareholder of any such association shall be share- 
 holders not 
 liable in his individual capacity for any contract, debt, or^^'™"^^^ 
 
 engagement of such association, unless the articles of asso- *°' 
 
 Niagara v. The People {1 Hill, 804), removed all ground for snch a doubt. 
 And yet I notice that some of the free banks still keep up a practice which 
 was adopted when it was thought necessary to keep up some such device to 
 get round the constitution, and add the name of the president to the corpo- 
 rate name of the institution, in bringing suits. It was long since held that 
 this was unnecessary, and that the free banks might sue and be sued in the 
 same corporate name which is used in transacting their other business. The 
 People V. TTie Assessors of Waterlown (1 Hill, 621). And as it is now settled 
 that the free banks have a legal existence, it may be hoped that the incon- 
 venient practice of using the name of the president in bringing suits by and 
 against the corporation mil be given up." (3 Comst., 485, 486.) 
 
 Since the case of Oillett v. Moody, the Court of Appeals has decided the 
 case of Talmage v. Pell (3 Selden, 328, 347, 348), and has again adjudged 
 " that, every association, organized under the act to authorize the business of 
 banking, and the acts amending the same, is a moneyed corporation.'' (3 Sel- 
 den, 347.) As to the mode of bringing suits by and against associations 
 linder the general law, see, also, Belafield v. Kinney (24 Wend., 345); and 
 Case V. The Mechanics' Banking Association (1 Sand., Sup. R., 693). 
 
 In March, 1841, while the difference of opinion, alluded to by Judge 
 Beonsos, existed between the Supreme Court and the Court of Errors, and 
 before the decision by the latter Court of the case of The Supervisors of Ni- 
 agara V. The People, the legislature passed the act entitled "An Act respect- 
 ing suits and legal proceedings by or against banking associations." (Laws 1841, 
 chap, 56, p. 33.) See this act, post. 
 
100 SPECIAL STATUTES APPLICABLE TO 
 
 ciation by him signed shall have declared that the share- 
 holder shall be so liable. ( 40 J ) 
 Provisions 8 24. It shall be lawful for such association to purchase, 
 
 lis to Meal ^ 
 
 Estate. Jjq1(J ajj^ convey real estate for the following purposes : 
 
 1. Such as shall be necessary for its immediate accom- 
 modation in the convenient transaction of its business ; or 
 
 2. Such as shall be mortgaged to it in good faith, by 
 way of security for loans made by or moneys due to such 
 association ; or 
 
 3. Such as shall be conveyed to it in satisfaction of 
 debts previously contracted in the course of its dealings ; or 
 
 4. Such as it shall purchase at sales under judgments, 
 decrees or mortgages held by such association. ( 41 ) 
 
 (40-J-) See the Act of April 6th, 1849, entitled, "An Act to enforce the re- 
 sponsibility of stockholders in certain hanking corporations and associations, 
 as prescribed by the constitution, and to provide for tlie prompt payment of de- 
 . mands against such corporations and associations." (Laws 1849, chap. 226, p. 
 340.) The eleventh section of this act, amended by the act of March 15th, 
 1855. (Laws 1856, chap. 69, p. 101.) See these acts, joos^. 
 
 (41) The following is the 4th section of a Safety Fund Bank Charter : 
 
 " § 4. The real estate which it shall be lawful for the said corporation to 
 purchase, hold, and convey, shall be, 
 
 " 1. Such as shall be requisite for its immediate accommodation in the 
 convenient transaction of its business ; or, 
 
 " 2. Such as shall have been mortgaged to it in good faith by way of se- 
 curity for loans previously contracted, or for moneys due ; or, 
 
 " 8. Such as shall have been conveyed to it in satisfaction of debts pre- 
 viously contracted in the course of its dealings ; or, 
 
 " 4. Such as shall have beenpurohased at sales upon judgments, decrees, 
 or mortgages obtained or made for such debts. The said corporation shall 
 not purchase, hold, or convey real estate in any other case, or for any other 
 purpose. (See the charter of The Onondaga County Bank, Laws 1830, p. 
 1T4, § 4; Laws 1829, p. 326, § 6; Laws 1831, p. 71, § 4.) 
 
 The Chautauque County Bank (an institution under the Safety Fund sys- 
 tem) being prohibited by its charter from purchasing, holding, or conveying 
 real estatp, except in certain specified cases, as above stated, it was lield, that 
 said bank had no capacity after the time for redeeming had expired, to pur- 
 chase the interest of a judgment creditor who, by virtue of his own judg- 
 ment, had acquired the title of the purchaser of land sold under execution, 
 
BANKING CORPORATIONS. 101 
 
 The said association shall not purchase, hold, or convey prohibition. 
 real estate in any other case or for any other purpose ; and 
 all conyeyances of such real estate shall be made to the 
 president, or such other officer as shall be indicated for 
 that purpose in the articles of association ; and which pres- 
 ident or officer, and his successors, from time to time, may 
 sell, assign and convey the same free from a,ny claim there- 
 on, against any of the shareholders, or any person claiming 
 under them. 
 
 § 25. Upon the application of creditors or shareholders ohanceiior 
 of any such association, whose debts or shares shall amount examinatioD, 
 to one thousand dollars, and stating facts, verified by affi- 
 davit, the chancellor may, in his discretion, order a strict 
 examination to be made by one of the masters of his court, 
 of all the affairs of such association, for the purpose of as- 
 certaining the safety of its investments, and the prudence 
 of its management ; and the result of every such examina- 
 tion, together with the opinion of the master and of the 
 chancellor thereon, shall be published in such manner as 
 the chancellor shall direct, who shall make such order in 
 respect to the expenses of such examination and publica- 
 tion, as he may deem proper. ( 42 ) 
 
 though the bank had unsatisfied judgments against the debtor whose land 
 had been sold. The Chautauque County Bank v. Risley (4 Denio, 480). See, 
 also, Russell v. Topping (6 McLean, 194). 
 
 By § 4 of the act of April 10, 1849 (Laws 1849, chap. 313, p. 455), it is 
 provided, that an association formed to take the place of an incorporated 
 bank whose charter has expired, may hold, in addition to the real estate 
 as prescribed in the above § 24, such other real estate as, at the time of the 
 transfer of the property of the incorporated bank, it had received in pay- 
 ment of debts previously contracted, or had purchased under judgments, &e. 
 
 (42) See § 3 of the Act of May 26th, 1841 (Laws 1841, chap. 319, p. 
 309); also, § 3 of the Act of December, 4th, 1847 (Laws 1847, chap. 419, 
 p. 621). 
 
Contents 
 of hepurt. 
 
 102 SPECIAL STATUTES APPLICABLE TO 
 
 semi-an- § 26. Such association shall, on the first Mondays of 
 
 DMl Keporta '' 
 
 to^eomptroi January and July in every year, after having commenced 
 the business of banking, as prescribed by this act, make 
 out and transmit to the comptroller, in the form to be pro- 
 vided by him, a full statement of the affairs of the associa- 
 tion, verified by the oath of the president or cashier, which 
 statement shall contain : — ( 43 ) 
 
 1. The amount of the capital stock paid in according to 
 the provisions of this act, or secured to be paid. 
 
 2. The value of the real estate of the association ; speci- 
 fying what portion is occupied by the association as neces- 
 sary to the transaction of its business. 
 
 3. The shares of stock held by such association, whether 
 absolutely, or as a collateral security ; specifying each kind 
 and 'description of stock, and the number and value of the 
 shares of each. 
 
 4. The amount of debts due to the association ; specify- 
 ing such as are due from moneyed or other corporations, or 
 associations ; and also specifying the amount secured by 
 bond and mortgage or judgment ; and the amount which 
 ought to be included in the computation of losses. 
 
 (43) This section repealed by § 5 of the Act of May 26th, 1841 (Laws 
 1841, chap. 319, p. 309); and new sections substituted in place of §26. 
 See the Act of May, 26th, 1841, §§ 1, 2, 3, 4, 5, post. By this act the an- 
 nual statements were required to be made to the Bank Commissioners, 
 
 April 18th, 1843, the legislature abolished the office of Bank Commis- 
 sioner, and required every banking association to make quarterly reports to 
 the comptroller. (Laws 1843, chap. 218, p. 300, 801, §§ 3, 4, 5, 6). See, 
 also, § 2 of the Act of May, 6th, 1844 (Laws 1844, chap. 281, p. 416); also, 
 § 1 and § 4 of the Act of December 4th, 1847 (Laws 1847, chap. 419, p. 
 519); also, § 9 of the Act of April, 12, 1851 (Laws 1851, chap. 164, p. 309). 
 
 By the Act of April 15th, 1853, all banks, banking associations, and 
 individual bankers doing business in the city of New York, are required, in 
 addition to quarterly reports, to publish wheMy statements, verified by the 
 oath of the president or cashier. (Laws 1853, chap. 250, p. 639.) 
 
BANKING CORPORATIONS. 103 
 
 6. The amount of debts due by sucb association ; spe- contents of 
 
 Eeport. 
 
 cifying such as are payable on demand, and such as are 
 due to moneyed or other corporations or associations. 
 
 6. The amount of claims against the association not ac- 
 knowledged by it.as debts. 
 
 7. The amount of notes, bills or other evidences of debt 
 issued by such association. 
 
 8. The amount of the losses of the association ; specify- 
 ing whether charged on its capital or profits, since its last 
 preceding statement, and of its dividends declared and 
 made during the same period. 
 
 9. The average amount in each month during the pre- 
 ceding six months of the debts due to and from the associ- 
 ation ; the average amount of specie possessed by the same 
 during each month, and the amount of bills and notes is- 
 sued by such association, and put in circulation as money, 
 and outstanding against the association, on the first day of 
 each of the preceding six months. 
 
 10. The average amount in each month during the pre- 
 ceding six months due to the association, from all the share- 
 holders in the association, also the greatest amount due to 
 the association in each of the said preceding six months 
 from all the shareholders in such association. 
 
 11. The amount which the capital of the association has 
 been increased during the preceding six months, if there 
 shall have been any increase of the said capital ; and the 
 names of any persons who may have become parties to 
 the said articles of association, or may have withdrawn 
 therefrom since their last report. ( 44 ) 
 
 (44) The subdivisions 1 to 11 under § 26, are substantially the same as 
 § 20 and § 21 (1 Revised Statutes, 692, 594), and the subdivisions there- 
 under; see pp. 13, 14, 15, ante. The requirements of §§ 20, 21 (1 R. S., 693, 
 
104 SPECIAL STATUTES APPLICABLE TO 
 
 Statements It shall be the duty of the comptroller to cause the state- 
 to be pub- 1 T 1 
 
 liBhed. menfc required to be made by this section, to be published 
 in a newspaper printed in the county where the place of 
 business of such association is situated, and in the State 
 paper ; the expense of which shall be paid by such associa- 
 tion. 
 Penalty for § 27. If such association shall neglect to make out and 
 
 neglect to . , . in. j- 
 
 make out transmit the statement required in the last preceding sec- 
 
 StfttBtOtCUCj 
 
 *"■ tion, for one month beyond the period when the same is ' 
 
 required to be made, or shall violate any of the provisions 
 of this act, such association may be proceeded against, and 
 dissolved by the court of chancery, in the same manner as 
 any moneyed corporation may be proceeded against and 
 dissolved. (45) 
 Provision § 28. If any portion of the original capital of any such 
 
 as to divi-^ 
 
 (lends. association shall be withdrawn for any purpose whatever, 
 
 whilst any debts of the association remain unsatisfied, no 
 
 dividends or profits on the shares of the capital stock of 
 
 the association shall thereafter be made, until the deficit- of 
 
 Powe of capital shall have been made good, either by subscription 
 
 chancellor. ^^ ^^^ shareholders, or out of the subsequently accruing 
 profits of the association ; and if it shall appear that any 
 such dividends have been made, it shall be the duty of 
 the chancellor to make the necessary orders and decrees 
 for closing the affairs of the association, and distributing 
 its property and effects among its creditors and sharehold- 
 ers. (45) 
 
 594), were binding on all Safely Fund Banks. See charters of Safety Fund 
 Banks. But see note 43, ante. 
 
 (45) See § 39 on page 58, ante, and note 23 on page 59, ante; also § 5 
 of the Act of May 4, 1840 (Laws of 1840, chap. 202, p. 154): also § 12 of 
 the Act of May 14, 1840 (Laws 1840, chap. 863, p. s'OB): also § 3 of the 
 
BANKING CORPORATIONS. 105 
 
 § 29. Such association shall be liable to pay the holder Damages 
 
 on protested 
 
 of every bill or note put in circulation as money, the pay- ^"'"^ """>'**■ 
 ment of which shall have been demanded and refused, 
 damages for non-payment thereof, in lieu of interest, at 
 and after the rate of fourteen percent, per annum, from 
 the time of such refusal, until the payment of such evi- 
 dence of debt, and the damages thereon. ( 46 ) 
 
 § 30. The president and cashier of every association Duties of 
 
 president 
 
 formed pursuant to the provisions of this act, shall at all and casMer. 
 times keep a true and correct list of the names of all the 
 shareholders of such association, and shall file a copy of 
 such list in the office of the clerk of the county, where any 
 office of such association may be located, and also in the 
 office of the comptroller, on the first Mondays of January 
 and July, in every year. 
 
 § 31. It shall not be lawful for any association formed BiUsiess 
 
 " ■' than $1000, 
 
 under the provisions of this act, to make any of its bills or ^°J^p°^"^^^^ 
 notes of a denomination less than one thousand dollars to ciation."*' 
 be put in circulation as money, payable at any other place 
 than at the office where the business of the association is 
 carried on and conducted. (47) 
 
 Act of May J6, 1841 (Laws 1841, chap. S19, p. 308) : also, § 4 of the Act 
 of April 1^ 1843 (Law 1843, chap. 218, p. 299): also, § 2 of the Act of 
 December* 1847 (Laws 1847, chap. 419, p. 619): also, § 2 of the Act of 
 April 15, 1863 (Laws of 1853, chap. 250, p. 539). See the foregoing acts, 
 post. 
 
 (46) See § 5 of the Act of May 4, 1840 (Laws 1840, chap. 202, p. 154): 
 also, § 5 of the Act of April 18, 1843 (Laws 1843, chap. 218, p. 299): also, 
 § 1 of the Act of April 6, 1849 (Laws 1849, chap. 226, p. 340) : also, § 5 of 
 the Act of April 17, 1851 (Laws 1851, chap. 203, p. 475), amending % 29 of 
 the General Banking Law. 
 — ^ 
 
 (47) By § 3 of the General Banking Law, it is provided, that the bills 
 or notes authorized to be issued by associations and individual bankers, 
 shall be made "payable on demand at the place of business, within this 
 
on hand. 
 
 106 SPECIAl STATUTES APPLICABLE TO 
 
 § 32. The legislature may at any time alter or repeal 
 this act. 
 as to^peiie § ^^* "^^ association of persons authorized to carry on 
 the business of banking under this act, shall at any time, 
 for the space of twentj^ days, have on hand at their place 
 of business, less than twelve and a half per cent, in spe- 
 cie, on the amount of the bills or notes in circulation as 
 money. ( 48 ) 
 
 State, of Buoh person or associations." By § 16 of the general law (see 
 p. 92, ante), the only place of business required to be specified in the cer- 
 tificate, is some "particular city, town, or village." Section 31, therefore, 
 provides beyond this, that it shall not be lawful for any banking corpora- 
 ^ion^ organized under the general law, to make any of its bills or notes, of a 
 denomination less than $1,000, to be put in circulation as money, payable 
 at any other place than " at the office where the business of the associatioa 
 is carried on and conducted." This provision, as to bank notes of all de- 
 nominations, had been previously made by the Act of April 17, 1830 
 (Laws 1830, chap. 243, p. 265. See p. 15, and note 26, p. 76, ante). 
 
 By the Act of 1830, every note, bill, or other evidence of debt, purport- 
 ing to be a bank note, " must be deemed and taken to be payable at the 
 banking house of such' incorporated banking institution, any law or usage to 
 the contrary thereof notwithstanding." In note 37 (p. 92, ante) are cited 
 various acts of the legislature, passed subsequently to the general bank- 
 ing law, confining and limiting the banking operations of associations and 
 individual bankers, organized under it, to the place designated in their re- 
 spective certificates; and also, to the place where their "circulating 
 cotes are dated, and purport to be issued." 
 
 (48) § 33 was repealed by § 6 of the Act of May 14, 1840t[Laws 1840, 
 chap. 363, p. 306. See this act, post. 
 
BANKING CORPORATIONS. 107 
 
 ACT OP MAY 7th, 1839. 
 
 (LAWS 1839, CHAP. 365, P. 328.) 
 
 An Act concerning Foreign Bank Notes. Passed 
 May 7, 1839. 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. From and after the passage of this act it shall be Ecstrio- 
 
 , . . _ _ tionasto 
 
 unlawful for any incorporated banking institution within ^°l^ *'*"'' 
 this State, and for any association, or any individual or in- 
 dividuals, authorized to carry on the business of banking 
 by virtue of the act entitled "An act to authorize the 
 business of banking," passed the 18th day of April, 1838, 
 to receive, pay out, give or offer in payment as money, to 
 circulate or attempt to circulate as money, any bill, note, 
 or other evidence of debt, issued or purporting to have 
 been issued by any corporation, association, or individual, 
 situated or residing without this State, and which bill, note, 
 or other evidence of debt, shall, upon any part thereof, 
 purport to be payable or redeemable at any place, or by 
 any person, association, or corporation within this State. 
 
 § 2. It shall not be lawful for any incorporated banking jjjgj,,gji„„ 
 institution within this State, or any association, or any 
 individual or individuals authorized to carry on the busi- 
 ness of banking by virtue of the said act entitled "An act 
 to authorize the business of banking," directly or indirectly 
 to procure or receive from any corporation, association, or 
 individual, situated or residing without this State, any 
 bank bill or note, or other evidence of debt in the simili- 
 tude of a bank bill or note, issued, or purporting to have 
 been issued, by such last-mentioned corporation, associa- 
 
108 SPECIAL STATUTES APPLICABLE TO 
 
 tion, or individual, with intent to issue and pay out, or in 
 any way to utter or circulate the same as money, or to 
 issue, pay out, or to utter or circulate the same, when pro- 
 cured or received as aforesaid, as money. But nothing in 
 this section contained shall prohibit the said banking insti- 
 tutions, associations, and individual bankers, in the first 
 part of this section mentioned, from receiving from their 
 dealers and customers such foreign notes as are allowed 
 by law to be circulated within this State in the regular 
 and usual course of business, or from paying out the same 
 when so received as last aforesaid. ( 49 ) 
 
 Notes un- § 3. It shall uot be lawful for any incorporated banking 
 institution within this State, or any association, or any in- 
 dividual or individuals authorized to carry on the business 
 of banking by virtue of the said act entitled "An act to 
 authorize the business of banking," directly or indirectly 
 to lend, or pay out fpr paper discounted or purchased by 
 them, any bank bill, or note, or other evidence of debt 
 which is not received at par by the said banking institu- 
 tion, association, or individual, for debts due to, the said 
 banking institution, association, or individual. 
 
 Penalty. § 4. Evcry Corporation, and every association and indi- 
 vidual authorized to carry on the business of banking, who 
 shall offend against any of the provisions of the previous 
 sections of this act, shall forfeit for each and every offence 
 the sum of one thousand dollars, to be recovered with costs 
 of suit in the name and for the use of any person who shall 
 sue for the same and prosecute such suit to judgment in 
 , any court having cognizance thereof: and every officer 
 and clerk of such corporations and associations, and every 
 such individual banker and his clerks and servants, who 
 
 (49) § 2 amended by § 1 of the act of April 13, 1853 (Laws 1853, chap. 
 223, p. 428). See this act, post. 
 
BANKING CORPORATIONS. 109 
 
 shall knowingly act or assist in any violation of any pro- 
 vision of this act, shall, upon conviction, be deemed guilty 
 of a misdemeanor, and shall be punished by fine or im- 
 prisonment, or both, in the discretion of the court before 
 which such conviction shall be had ; but such fine shall 
 not exceed five hundred dollars, and that such imprison- 
 ment shall not exceed six months. 
 
 § 5. This act shall take efiect immediately on its pas- 
 sage. 
 
 ACT or MAY 4th, 1840. 
 
 (LAWS 1840, CHAP. 202, P. 154.) 
 
 An Act relating to the redemption of ianJc notes. Passed 
 May i, 1840. 
 
 The People of the State of New Yorh, represented in 
 Senate a/nd Assenibly, do enact as follows : 
 
 § 1. Every moneyed incorporation in this State having Agents to 
 banking powers, and issuing bills or notes of circulation, iiTNewTork 
 and every banking association and individual banker, car- 
 rying on banking business under the act to authorize the 
 business of banking, except those whose place of business 
 is in the cities of New York, Albany, or Brooklyn, shall, 
 on or before the first day of. July next, appoint an agent, 
 who shall keep an office in the city of New York or Al- 
 bany, for the redemption of all circulating notes issued 
 by such corporation, banking association, or individual 
 
110 SPECIAl STATUTES APPLICABLE TO 
 
 banker, which shall be presented to such agent for pay- 
 ment or redemption.( 49^ ) 
 ^^^ § 2. Such agent shall be appointed in writing, and 
 
 to brflie'^n such appointment in writing shall be delivered to the 
 
 lers ofBce. comptroller on or before the day above mentioned, and 
 filed in his ofBce ; and any corporation having banking 
 powers, banking association, banker, or other person, may 
 be an agent for the purposes of this act ; and if any such 
 incorporation, association, or banker, shall omit to appoint 
 such agent within the time above mentioned, the comp- 
 troller shall appoint such agent for such corporation, asso- 
 ciation, or banker. 
 List of § 2- "^^^ comptroller, immediately after the said first 
 
 puwished. ° day of July, shall publish, during such time as he may 
 deem proper, a list of such agents in the state paper, and 
 in at least two daily newspapers in the city of New York, 
 the expense whereof shall be paid by the corporation, as- 
 sociations, and bankers above mentioned. 
 
 § 4. It shall be the duty of every such corporation, , 
 
 redeemed, 'banking association, and individual banker, out of the 
 cities of New York, Albany, and Brooklyn, to redeem and 
 pay on demand all circulating notes issued by such corpo- 
 ration, banking association, or individual banker, pre- 
 sented for redemption or payment at the oifice of their 
 said agent in the city of New York or of Albany, at 
 a rate of discount not exceeding one half of one per 
 cent.(4H) 
 
 § 5. Every such corporation, banking association, or 
 
 for neglect individual banker, whose agent shall neglect or refuse to 
 redeem their notes on demand as aforesaid, shall pay to 
 
 (49i) § 1 and § 4 of this act amended by §§ 1 and 2 of tine act of April 
 11, 1851 (Laws 1851, chap. 203, p. S16). See this aet,post. 
 
BANKING CORPORATIONS. Ill 
 
 the person making such demand, interest upon the notes 
 so demanded, at the rate of twenty per cent, per annum ; 
 and if such redemption and payment of interest is not 
 made at said office within twenty days from the time when 
 first demanded, such corporation, banking association, or 
 individual banker shall be liable to be piroceeded against 
 by the bank commissioners, in the same manner, and with 
 the like effect as any incorporated bank may be proceeded 
 against for a violation of its charter ; and such corporation, 
 banking association, or individual banker, shall not there- 
 after issue, or put in circulation any of their bills or notes ; 
 and the comptroller shall, in that case, proceed in the 
 same manner as is directed in the fourth section of the act 
 entitled " An Act to authorize the business of banking," 
 passed April 18, 1838. 
 
 8 6. Every association and individual banker who shall . , , 
 
 " *' Agents to 
 
 hereafter commence business under the act to authorize ^y^'^'J^^a^o* 
 the business of banking, shall upon first receiving any cir- 
 culating notes from the comptroller, appoint an agent for 
 the purposes of this act, and be subject in all respects to 
 the provisions of this act ; and the comptroller is hereby 
 directed not to deliver any circulating notes to such asso- 
 ciation or banker, until such appointment is made and 
 filed in his office ; and such appointment shall be immedi- 
 ately published by the comptroller in manner aforesaid. 
 
 § 7. Appointments of agents made in pur.suance of this Appoint- 
 ments may 
 
 act, may be revoked, and new appointments of Hgents may "* "™''"'- 
 be made, from time to time, by delivering such revocation 
 and appointment to the comptroller, who shall cause the 
 same to be published as aforesaid. 
 
 § 8. It shall be lawful for any number of incorpoiated a namber 
 
 u of banks may 
 
 banks, banking associations, and private bankers, by agree- cSmmon* 
 
 agent. 
 
112 SPECIAL STATUTES APPLICABLE TO 
 
 ment, to associate together for raising a joint fund to be 
 placed in the hands of their common agent, for the re- 
 demption of their circulating notes in the city of Wew 
 York or Albany, and also the circulating notes of other 
 incorporated banks, banking associations, and individual 
 bankers, in such 'manner, and under su6h regulations, as 
 may be agreed upon, and to employ such agents and clerks 
 as they may deem necessary to carry on the business of 
 such common agency ; but nothing in this section con- 
 tained shall authorize the redemption or purchase by such 
 agency of any circulating notes at a discount of more than 
 one-half of one per cent., nor to relieve or discharge such 
 incorporated bank, banking association, or individual 
 banker, from any duty or liability required or imposed by 
 this act. 
 Saving § ^- Nothing in this act contained shall be so construed 
 
 as to authorize any incorporated bank, banking association, 
 or individual banker, to purchase, buy in, or take up, di- 
 rectly or indirectly, their circulating notes at an amount 
 less than what purports to be due thereon at any other 
 place, or in any other manner than is directed in and by 
 this act. 
 
BANKING CORPORATIONS. 113 
 
 ACT OF MAY 14th, 1840. 
 
 (LAWS 1840, CHAP. 363, P. 306.) 
 
 An Act to rnnend the Act entitled " An Act to authorize 
 the hismess of £'cmkmg," Passed May IMh, 1840. 
 
 The People of the State of New Yor\ represented in 
 Senate and AssenMy, do enact as follows : 
 
 § 1. The second section of tte act entitled " An Act to t^K^"' 
 authorize the business of Banking," passed April 18th, ^vedbvthe 
 
 , ., ,, comptroller. 
 
 1838, IS hereby amended, so as to read as follows : When- 
 ever any person, or an association of persons, formed for the 
 purpose of banking, under the provisions of this act, shall 
 lawfully transfer to the comptroller any portion of the pub- 
 lic stock issued or to be issued by this State, such person, 
 or association of persons, shall be entitled to receive from 
 the comptroller an equal amount of such circulating notes 
 of different denominations, registered and countersigned as 
 aforesaid ; but such public stock shall in all cases be, or 
 be made to be, equal to a stock of this State, producing 
 five per cent, per annum ; and it shall not be lawful for 
 the comptroller to take such stock at a rate above its par 
 value, nor above its current market value. 
 
 § 2. The provisions of the said second section shall not ^^"^^^1-^^' 
 be construed to prevent the stocks now held by the comp-compiioiie/ 
 troUer under the act hereby amended, from being hereaf- 
 ter transferred to, and received by him at their market 
 value in the same manner as though this act had not been 
 passed. 
 
 8 
 
and 
 interest. 
 
 114: SPECIAL STATUTES APPLICABLE TO 
 
 Account of 8 3. No association of persons stall commence the 
 
 Becarities to ^ 
 
 be deposited, 'buginess of banting under the said act, until such associa- 
 tion shall have deposited with the comptroller the securi- 
 ties required by law, to the amount of one hundred thou- 
 sand dollars. ( 50 ) 
 Notes to 8 4. If o banking: association or individual banter, as 
 
 be payable <3 & ^ ' 
 
 f^thottt such, shall issue or put in circulation any bill or note of 
 said association or individual banker, unless the same shall 
 
 Penalty. })q made payable on demand and without interest ; and 
 every violation of this section by any oflBcer or member of 
 a banking association, or by any individual banter, shall 
 be deemed and adjudged a misdemeanor, punishable by 
 fine or imprisonment, or both, in the discretion of the court 
 having cognizance thereof. (51) 
 
 (50) § 3 amended by § 1 of the Act of May 6, 1844 (Laws 1844, chap. 
 281, p. 416). See this act, pos*. 
 
 (51) See § 1 of the act of April 10, 1850 (Laws 1850, chap. 251, p. 486), 
 amending § 4. See this act, post. 
 
 In December, 1839, the case of Safford v. Wychoff, President of the 
 Farmers' Bank of Seneca County, was tried, before Ccshman, Ciretiit Judge. 
 This was an action against that bank as the drawer of a negotiable bill or 
 draft for $3,000, dated August 15, 1839, and payable thirty days after date, 
 and signed "/. J. Fenton, Cashier." The bank was an association, formed 
 under the general banking law of 1838. It was objected on the trial, among 
 other things, that the bank " had no power to issue drafts on time, or any 
 other paper except such as had been countersigned according to law." These 
 objections were overruled by Cushman, Circuit Judge, who directed a verdict 
 for the plaintiff, which the jury rendered. (1 Hill, 12.) 
 
 In Apx-il, 1840, the Court for the Correction of Errors, in Warner v. Beers 
 (23 Wend., 101-190), held, that " associations organized in conformity with 
 the provisions" of the general banking law, were " not bodies politic or cor- 
 porate within the spirit and meaning of the constitution" of 1821. But Sen- 
 ator Verplanck (who insisted in this ease, in opposition to the chancellor 
 and to other senators, that these associations were, in no sense, corporations, 
 but merely partnerships, relieved by a conditional repeal from the inhibitions 
 of the general Restraining Act), held, that " certain conditions are imposed 
 to entitle them to the benefit of this conditional repeal. They can isme no 
 paper, unless it be secured in a certain w^JPand duly attested by the comp- 
 
BANKING CORPOEATIONS. 115 
 
 § 5. It shall be the duty of the comptroller to receive Mutilated 
 
 ^ ./ i notea may be 
 
 mutilated circulating notes issued by him, and to deliver *'"'''*"^'^- 
 in lieu thereof other circulating notes to the same amount. 
 
 trailer. The very same conditions are imposed on every individual who 
 thinks fit to engage in this business." (23 Wend., 159 ; see Safford v. Wyck- 
 off, 1 Hill, 11.) 
 
 After the decision of Ccshman, Circuit Judge, in Safford v. Wyckoff, in 
 December, 1839, the officers of some of the associations assumed the power 
 of issuing evidences of debt, which an association under the general bank 
 law had not only no legal power to issue, but the issue of which, by such a 
 moneyed corporation having banking powers, was expressly prohibited by 
 the 35th section of the amendatory act of April 2, 1829 (Laws 1829, p. 167, 
 § 1 and § 35 ; see p. 29, ante ; p. 38, ante; and note 14). But this was not 
 the only evil — the individual bankers were not within the terms of this pro- 
 hibition of the said 35th section ; and were not then required by the gen- 
 eral law of 1838, to file any certificate stating their places of residence or 
 of business, or to make any annual statement of their affairs to the comp- 
 troller ; but these individual bankers were authorized, by the same section 
 (§ 3) and in the same language (as corporations formed under the 15th sec- 
 tion), to loan and circulate countersigned notes — and by the act of 1837,. 
 they had previously been authorized to keep offices of discount and deposit. 
 Some of these individual bankers, in 1839 and 1840, established banking 
 offices in various parts of the interior of the State remote from the centers 
 of business, — and commenced by issuing a certain amount of countersigned 
 notes in the name of the; " Atlas Bank," or some other such assumed name, — 
 and after their countersigned notes became current, and the name of the 
 "Atlas Bank," &a., familiar, it was easy to issue and put in circulation post- 
 notes, in the name of the "Atlas Bank," Ac., engraved from plates similar 
 to the authorized plates, in the custody of the comptroller, — but, of course, 
 such post-notes were not countersigned by him, or in any manner secured. 
 
 In the spring of 1840, a Mr. Schermerhorn established, as an individual 
 banker, a bank called, " The North River Banking Compamy" — and in the 
 name of said company, issued engraved post-notes and post-bills, with vig- 
 nettes and other devioe8,-for f 10, |20, and |50, or for other round sums, 
 payable in thirty, sixty, or some other number of days after date: this 
 paper was put in circulation in this State and in Ohio — we have seen speci- 
 mens of these issues by this individual banker.. 
 
 To prevent the issue of a spurious currency by individual bankers, the 
 legislature interfered by the Act of May 14th, 1840. This act was passed 
 one month after the decision by the Court of Errors, of the case of. Warner 
 V. Beers, and before the Supreme Court had set aside the verdict in Safford 
 V. Wyckoff ; the decision in the latter case, was not made until January, 1841 
 (1 Hill, 11). One of the main objects of the legislature, in enacting' the 
 prohibition in the 4th section of the Act of May 14th, 1840, was, to reach- 
 the illegal issues of post-notes or other evidences of debt, by individual 
 
116 SPECIAL STATUTES APPLICABLE TO 
 
 Section re- 8 Q. The tMrty-tMrd section of the act hereby amended 
 
 pealed. u « v f 
 
 is repealed. 
 
 bankers in the assumed name of the " Atlas Banh," &e., — ^henee the lan- 
 guage of this section is, that — " No individual banker as such, shall issue, 
 or put in circulation any bill or note, unless the same shall be made payable 
 on demand and without interest," — and that every Tiolation of this section 
 by any individual banter shall be deemed and adjudged a misdemeanor, &o. 
 The legislature was compelled aftervrards to pursue this policy of restrict- 
 ing and restraining the operations of individ%u3,l bankers, (see Laws 1841, 
 chap. 319, p. 308; Laws 1844, chap. 281, p. 416; Laws 1848, chap. 340, 
 p. 462 ; see note 37 on p. 92, ante). While providing a remedy for the pre- 
 vention of the evils resulting from illegal issues by individual bankers oj 
 such, the legislature of 1840 reiterated the prohibition of the 35th sec- 
 tion of the Act of April 2, 1829, against an issue of post-notes by moneyed 
 corporations formed under the General Bank Act, so as to leave no room 
 for doubt or mistake as to its application to them ; in thus re-enacting this 
 prohibition, the legislature added the sanction of an express reference to 
 the penalties imposed for a violation of the statute, — in other words, de- 
 clared, that such a violation was a, misdemeanor, punishable by fine or im- 
 prisonment, or bothi It should also be borne in mind, that before the pass- 
 ing of the Act of May 14th, 1840, it had been questioned whether associa- 
 tions under the general law were, in the language of Judge Branson, " cor- 
 porations, or something else." It was not until December, 1844, that the 
 Court for the Correction o/ -Errors finally settled this question — by deciding 
 that they were "moneyed or stock corporations" within the meaning of 
 the statute, subjecting such corporations to taxation on their capital (1 E. 
 S., 414, § 1, Supervisors of Niagara v. The People, 1 Hill, 504). 
 
 We have seen that the Safety Fund, as well as the General Law Banks, 
 had the express power to buy and sell bills of exchange ; yet both classes of 
 moneyed corporations were prohibited from issuing- any bill on time (Laws 
 1829, § 1, and § 35, pp. 29 and 38, ante; and note 39, p. 95, ante). 
 
 DECISIONS ON SECTION 4 OF THE ACT OF MAT 14, 1840. 
 
 January, 1842, 2 Hill, 241 : Smith and Warner v. Strong Cpost-bill). 
 
 JanuaVy, 1842, 2 Hill, 295: Bank of Orleans v. Merrill (post-certificate 
 of deposit). 
 
 May, 1846, 3 Denio, 70: Swift v. Beers (guaranty of a post-note). 
 
 September, 1846, 4 Edw. Ch. R., 134: Leavitt v. Totes (assignment to 
 secure post-notes called " Yates Trust Notes "). 
 
 June, 1848, 3 Barb. S. C. E., 222 : Tylee v. ' Yates (Yates Trust Post- 
 Notes). 
 
 {Leavitt V. Blatchford, and Leavitt 
 V. Palmer (assignment to se- 
 cure post-notes, payable in En- 
 gland in sterling money). 
 
BANKING CORPORATIONS. IIY 
 
 § 7. Whenever the securities deposited for the redemp- jg^^^l^^"" 
 tion of circulating noteS, shall in the opinion of the comp- miy §"''«- 
 troUer, become insufficient for that purpose, he may receive 
 the dividend on all stocks, as well as the interest on bonds 
 and mortgages, and shall deposit the same in some safe bank 
 or banking association in the city of Albany, in his name, 
 in trust for the association or banker to whom the same 
 may belong. The deposit to be made on such terms, and 
 
 May, 1850, 8 Barb. S. C. R., 430: )Bank Commissioners v. St. Lawrence 
 December, 1852, 8 Selden, 513 ; ) Bank (post-notes). 
 
 AS TO THE ISSUE OF POST-NOTES AND POST-BILLS. SEE THE FOLLOWING OASES: 
 
 I Hill, 11 ; 4 Hill, 442 : Safford v. Wyckoff {poBt-hill, dated August 16, 
 1839). 
 
 8 Barb. S. C. R., 233 : Bank, of Chilicothe v. Dodge (post-bill, dated Sep- 
 tember 30, 1839). 
 
 4 Paige, 224; 9 Paige, 471 : Attorney-General v. Life and Fire Insurance 
 Company (post-notes, called " Life and Fire Bonds." See note 16, p. 42, ante). 
 
 10 Paige, 109 : Ontario Bank v. Schermerhorn. 
 
 8 Selden, 328: Talmage v. Pell (assignment to secure post-certificates 
 of deposit). 
 
 3 Selden, 364 : N. Y. lAfe Insurance and Trust Company v. Beebe (post- 
 certificate -of deposit. See note 12, p. 26, ante). 
 
 J^. A. Trust and Banking Company v. Himt (post-certificates of deposit, 
 dated July 12, 1839. See note 16, pp. 45-4'7, ante). 
 
 II Barb. S. C. R., 309 : Curtis v. Leavitt, and Leavitt v. Blatehford (as- 
 signment to secure post-notes, or post-bonds. These cases now pending in 
 the Court of Appeals). 
 
 18 Barb. S. C. R., 456 : Tracy v. Talmage (in the matter of the claim of 
 the State of .Indiana), (post-certificates of deposit. This case now pending 
 in the Court of Appeals). 
 
 8 McLean, 102: Root v. Godard. 
 
 3 McLean, 276 : Hay den v. Davis. 
 
 4 McLean, 8 : Root t. Wallace, 
 
 4 McLean, 387 : Davis v. Bank of the River Raisin. 
 
 2 Barr's (Penn.) R., 175: Southern Loan Company. y. Harris. 
 
 9 Ohio B., 291 : In the matter of Ohio Life Insurance and Trust Company. 
 12 OhioR., 300: Moore v. Gano. 
 
118 SPECIAL STATUTES APPLICABLE TO 
 
 at such rate of interest as the comptroller may deem most 
 conducive to the interest of such* association or banker, 
 and to be withdrawn and paid over, whenever in the opin- 
 ion of the comptroller, the securities of such association or 
 banker, shall be sufficient to warrant it. 
 
 18 Ohio R., 151: Lawler v. Walher. 
 
 13 Howard, 218; Miller v. Austin. 
 
 14 Conn. E., 363 : Kilgore v. Buckley. 
 
 POEM 
 (Of post-bill in Saffordy. Wychoff, 1 Hill, 11 ; 4 Hill, 442.) 
 
 " Farmers' Bank of Senega County." 
 
 " At thirty days after date, pay to the order of Eeuben D. Dodge 
 three thousand dollars, and charge this institution." 
 
 (Signed) " J. J. FENTON." 
 
 " EoMBLDS, August 16, 1889." 
 
 " To Walter Mead, Cashier." 
 " Sew York." 
 
 (Endorsed) " Pay D. B. Dodge or order." 
 
 " Eeuben D. Dodbe." 
 " D. B. Dodge." 
 
 FORM 
 (Of post-hill in Bank of Chilicothe v. Dodgi, 8 Barh. S. C. R., 283.) 
 
 " $ 5,000." " Farmers' Bank of Seneca County." 
 
 " Three months after date pay to the order of R. D. Dodge five 
 thousand dollars,, and charge this institution. Romulus, September 
 30th, 1889." 
 
 (Signed) G. P. Hosmee, A. Cash. 
 
 " To Walter Mead, Cash." 
 " New York." 
 
 (Endorsed.) 
 
 " Pay D. B. Dodge order." 
 
 " Eeuben D. Dodge." 
 " D. B. Dodge." 
 
BANKING CORPORATIONS. 119 
 
 § 8. It shall be the duty of the ioint committee annu- committee 
 
 " -^ , J of legislature 
 
 ally chosen, to examine the treasurer's accounts, to examine ^a^^Spa't- 
 such of the securities deposited in the comptroller's oflSce, "™ 
 by banking associations, and individual bankers, together 
 ■with books and papers therein relating to the business of 
 banking, as the said committee may deem necessary to en- 
 
 FORM 
 
 (Of post-bill in Smith and Warner v. Strong, 2 Hill, 241.) 
 
 << « 1 nnn " " Bank OF Westeen New Yoek." 
 
 * ^"""- ■ " Rochester." 
 
 " Four ndonths after date, please pay to the order of Josepli Strong, 
 Esq^r., one thousand dollars, and charge this institution." 
 
 (Signed) "M. F. Reynolds, Cashier." 
 
 " To E. B. Strong, Esqr., Prest." 
 
 No. 4. Wall street, New York." 
 
 (Endorsed.) 
 " Joseph Strong." 
 
 (Written across.) 
 
 " E. B. Strong, Prest." 
 " Geo. , Cr." 
 
 FORM 
 (Of post-note and guaranty in Stdft v. Beers, 3 Denio, 70.) 
 
 New York, 30th June, 1841." 
 
 "Sixty days after date, The North American Trust and Bank- 
 ing Company promise to pay to the order of Messrs. Swift & Co., 
 thirty -seven hundred dollars for value received, with interest ; having 
 deposited with them as collateral security, seven bonds of this Com- 
 pany, secured under the Yates Trusij — ^three for one thousand dol- 
 lars " [giving the amounts and nti/mbers of the bonds^. 
 
 (Signed) " Thomas G. Talmaqe, Prest." 
 
 (Guaranty.) 
 " For value received I guarantee the payment of the above note." 
 
 (Signed) " J. D. Beers." 
 
120 
 
 SPECIAL STATUTES APPLICABLE TO 
 
 able tbem to report the true state and conditions of that 
 department to the legislature. 
 tonS &°. § ^- It 8^3,11 be lawful for the president of any banking 
 comptroUer. association, or any individual banker, to make or execute 
 bonds and mortgages direct to the comptroller, to secure 
 the payment of circulating bills or notes, issued under the 
 act to auth'brize the business of banking, and all such 
 bonds and mortgages heretofore received by the comptrol- 
 ler for sucih purpose shall be valid. 
 
 FORM 
 
 (Of post-certificates of iieposit in Leamtt y. Paelmeir, 3 Gomstoek, 19; 6 
 
 Barb. S. C. R., 9.) 
 
 W 
 
 ^ 
 
 |Zi 
 
 "£ 1,000 st'g." " New York, November 30, 1840." 
 
 " Twelve months after date, tie North Ameeioan 
 Trust and Banking Company promise to pay to the order 
 of William R. Cooke, for value received, the sum of one 
 thousand pounds sterling, with interest thereon, at the rate 
 of seven per centum per annum, payable at ±he Banking 
 House of Messrs. Palmers, Maekillop, Dent & Co., London." 
 
 ' Walter Mead, Cashier.'' 
 
 'Tnoa. G. Talmage, Pres't." 
 
 " This note is issued in pursuance of a Deed of Trust ex- 
 ecuted between the Company and Richard M. Blatohford 
 and James B. Murray, Trustees, and the payment of the 
 same is guarp.nteed by the securities' thereby transferred." 
 
 FORM 
 
 (Of post-notes in Bank Commissioners v. St. iMwrence Bank, 3 Selden, 513 ; 
 
 8 Barb. S. C. R., 480.) 
 
 '1 3,00.0." 
 
 ' St. Lawrence Bank, Ogdensburgh, April 21, 1841." 
 
 " Ten months after date, the St. Lawrence Bank promises to pay 
 to the order of George W. Shepard, at the Albany City Bank, three 
 thousand dollars, with interest, value received." 
 
 (Signed) 
 " E. N. Faibohild, Cashier." 
 
 ' H. Van Rensselaer, President." 
 
BANKING OORPORATIONS. 121 
 
 § 10. All fees for protesting the circulating notes issued Feeof pro- 
 
 FORM 
 (Of the Post Certificate of Deposit in Talmage v. Pell, 3 Selden, 328.) 
 
 [Vignette.] 
 "No. 746." 
 
 ' NoKTH American Trust & Banking Company, 
 " City of New York, Nov. 22, 1839." 
 
 " Samuel F. MeCraoken, Daniel Kilgore, and Joseph S. Lake, 
 e; Commissioners, have deposited in this bank thirteen thousand 
 g eight hundred and thirty three 88-100 dollars, payable to their 
 g order; on the return of this oertifioate^-on demand after 6th Au- 
 fi gust, 1840." 
 
 "Capital" 
 " ($10,000,000.)" 
 
 '($13,833 88-lOOyw.)" 
 
 O " Waltee Mead, Cashier." 
 
 (Signed) "J. D. Bbers, Pres't." 
 
 (Endorsed) 
 
 ' Samuel F. MoCkaoken,'' 
 ' Daniel Kilgoee," 
 ' Joseph S. Lake," 
 
 " Cqmmissioners of the Ohio Canal Fund." 
 
 FORM 
 
 (Of post-notes in Zeavitt v. Yates, 4 Edw. Ch. R., 184 ; and Yates v. Tylee, 
 
 3 Barb. S. C. R., 222.) 
 
 -alO 
 
 gpq 
 
 U 
 o 
 
 « $1,000." 
 
 "No." 
 
 ' New York, December 15, 1,840." 
 
 " Thirteen months after date, the North American Trust 
 AND Banking Company promise to pay at their Banking House, 
 to the order of Elam H. Gibbs, for value received, the sum of 
 one thousand dollars, with interest thereon at the rate of seven 
 per centum per annum." 
 
 " Thos. G. Talmage, President." 
 
 "D. E. Tylee, Cashier." 
 
 " The payment of this obligation, with others, amounting 
 in the aggregate to $600,000, is guaranteed by the transfer of 
 securities estimated at $800,000, under a Deed of Trust exe- 
 cuted between the Company and Henry Yates, Thomas 6. Tal- 
 mage, and William Curtis Noyes, Trustees, bearing even date 
 herewith." 
 
122 SPECIAL STATUTES APPLICABLE TO 
 
 tesHng, how by any banking association or individual banker, shall be 
 paid by the person procuring the services to be performed 
 for which such association or banker shall be liable, but 
 no part of the securities deposited by such association or 
 banker shall be applied to the payment of such fees. 
 bankToS-"' ^^^- ^vcry banking association and individual bknker, 
 StenSo carrying on banking business, or who shall hereafter carry 
 
 assooiatioDB, ,,.,. ,, i-it. 
 
 &<!■ on banking business, under the act to authorize the busi- 
 
 ness of banking, shall be subject to the inspection and 
 supervision of the bank commissioners, whose powers and 
 duties shall be the same, in respect to said banking associ-: 
 ation or individual banker, as they are, or may be, in re- 
 spect to any of the incorporated banks of this State. 
 When and 8 12. In casc any of the said associations or indivi- 
 
 bow asMcia- " ^ 
 
 tionstobe ^^g^j bankers shall refuse to submit its books, papers, and 
 
 FORM 
 
 (Of " Life and Fire Bonds " in Attorney General v. Ijife and Mre Ins, Co., 
 
 i Paige, 224; 9 Paige, 4'71-4'76; see p 43, ante, note 16.) 
 
 " The Life and Fibb Instjrahoe Compant promise to pay, six months 
 after date, to H. Kingsland, or his order, at their office, one thousand 
 dollars, with interest at the rate of six per cent, per annum, from the 
 date hereof; interest payable quarterly." 
 
 "For the payment whereof, the Company hind theniselves and their 
 successors, and have hereunto caused their President and Secretary to 
 subscribe their names. New Yobk, April 10, 1824." 
 
 " M. L. Davis, Secretary." 
 
 (Signed) " H. Eokeokd, President." 
 
 FORM 
 
 (Of certificates of deposit in North American Trust and Banking Co. v. Hunt, 
 
 see note 16, p. 45, ante.) 
 
 FORM 
 
 (Of certificates of deposit in New York Life Insurance and ?V««< Co. v. 
 
 Beehe, 3 Selden, 364; see note 12, p. 26, ante.) 
 
BANKING CORPORATIONS. 123 
 
 concerns to the inspection of said commissioners, or either proceeded 
 
 r ^p^ ' against, 
 
 of them, or whose officers shall refuse to submit to be ex- 
 amined upon oath touching the concerns of such associa- 
 tion or individual banker, by said commissioners or either 
 of them, or which shall be found to have violated any law 
 of this State, binding upon such association or individual 
 banker, such association or individual banker shall be lia- 
 ble to be proceeded against by said commissioners, in the 
 same manner and with the like effect as any incorporated 
 bank may be proceeded against for a violation of its charter. 
 
 § 13. There shall be appointed one additional bank Additional 
 
 t f t f» rv^ 1 bank oom- 
 
 commissioner, whose style and term of office, powers, da- misaioner. 
 ties, compensation and manner of appointment, shall be 
 the same as those of the present commissioners. The sal- 
 ary of such commissioner shall be paid quarterly by the 
 treasurer, on the warrant of the comptroller, and the 
 amount thereof retained by the comptroller and paid into 
 the treasury, out of the interests upon the securities de- 
 posited with the comptroller by the said banking associa- 
 tions and individual bankers, in proportion to the amount 
 of securities deposited by each. 
 
 § 14r. J^othing in the act hereby amended shall be con- Fonneract 
 strued to prevent any body corporate, which may have vent certain 
 
 ^ ./ .^ jr J J corporations 
 
 power to hold, receive, or transfer, shares of public debt, of'LS^"'' 
 bank stock, or the like personal property, from also hold- 
 ing, receiving, or transferring any transferable shares of 
 the stock of associations organized under the said act. 
 
124 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OF MAR0H^5th, 1841. 
 
 (LAWS 1841, CHAP. 46, P. 26.) 
 
 An Act to a/mend the act entitled "An act to authorize the 
 hwiness of hanking" passed April 18, 1838. Passed 
 March 15, 1841. 
 
 The People of the State of New York, represented in 
 &nate and AssemUy, do enao^ as follows ; 
 
 Fonrth 8 1. The fourth section of the act entitled "An act to 
 
 section of ^ 
 
 baDltag'act authorize the husiness of banking," passed April 18, 1838, 
 shall be modified so as to read as follows : In case the 
 maker or makers of any such circulating note or notes 
 countersigned and registered as aforesaid, shall at any time 
 hereafter, on lawful demand, during the usual hours of 
 business between the hours of ten and three o'clock, at the 
 place where such note or notes is or are payable, fail or 
 jefuse to redeem such note in the lawful money of the 
 United States, the holder of such note or notes making 
 &uch demand may cause the same to be protested for non- 
 payment by a notary public under his seal of office in the 
 usual manner; and the comptroller, on receiving and 
 filing in his office such protest, shall forthwith give notice 
 in writing to the maker or makers of such note or notes to 
 pay the same ; and if he or they shall omit to do so for ten 
 days after such notice, the comptroller shall immediately 
 thereupon (unless he shall be satisfied that there is a good 
 and legal defence against the payment of such note or 
 notes) give notice in the State paper, that all the circulat- 
 ing notes issued by such person or association, will be re- 
 
BANKING CORPORATIONS. 125 
 
 deemed out of the trust funds in his hands for that pur- 
 pose ; and the comptroller shall be required to apply the 
 said trust fund belonging to the maker or makers of such 
 protested notes to the payment, pro rata, of all such circu- 
 lating notes, whether protested or not, put in circulation 
 by the maker or makers of such protested notes, pursu- 
 ant to the provisions of this act, and to adopt such mea- 
 sures for the payment of such notes as will in his opinion 
 most effectually prevent loss to the holders thereof. 
 § 2. This act shall take effect immediately. 
 
 ACT OP MARCH 16th, 1841. 
 
 (LAWS 1841, CHAP. 56, P. 33.) 
 
 An Act rejecting suits and legal proceedings iy or agamst 
 hanking associations. Passed Ma/rch 16, 1841. 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Actions instituted against any association estab- Actions 
 lished or to be established under the provisions of themencediTy"' 
 
 declaration, 
 
 "Act to authorize the business of banking," passed April 
 18, 1838, or of any act amending the same, may be com- 
 menced by declaration, and copies of such declaration may 
 be served on the president or cashier of such association, 
 and in their absence on any director at the usual place of 
 business thereof, or in such other manner, as the court in 
 which such action is brought may direct. But all such 
 actions shall nevertheless be commenced only against the 
 
126 SPECIAL STATUTES APPLICABLE TO 
 
 persons and in the manner prescribed or permitted by the 
 
 acts above mentioned. 
 Actions 8 2. Any person who shall be or shall have been an 
 
 commenced associate or shareholder of any sucb association, may in 
 aStes^or' respect of any demand which he may have, either solely 
 
 share-hold- . . , . , . , . . 
 
 «s. or jointly with any other person, against sucn association 
 
 commence and prosecute, either solely or jointly (as the 
 case may be) any action, suit, or other proceeding in law 
 and equity, against the president of such association ; and 
 any president of such, association may commence and 
 prosecute any action, suit, or other proceeding in law or 
 equity, against any person who may be or who may have 
 been an associate or shareholder of such association, either 
 alone, or jointly with any other person against whom such 
 association may have any demand whatever. All such 
 suits or proceedings by or against such president, shall be 
 conducted and have the same legal effect as if such asso- 
 ciate or shareholder had never been a member of such 
 association. Nor shall any action or suit be in any way 
 affected by reason of the plaintiff" 's or defendant's, or any 
 other person who may be in any way interested in such 
 action, being or having been a shareholder or associate of 
 such association. ISTor shall it be necessary in any process, 
 pleading, or proceeding in behalf of or against any such 
 association, to name the individuals composing the same. 
 Interest In § ^- "^^ claim or demand which anyassociate or share- 
 
 de°nds noteholder may have in respect to his share or Interest in the 
 
 be set off 
 
 ^mMd""* capital or joint stock of any such association, or of any 
 dividends, interest, or profit thereon, shall be capable of 
 being set off either at law or in equity against any demand 
 which sucli. association may have against any associate or 
 shareholder thereof. But all other demands may be set 
 
BANKING CORPOEATIONS. 127 
 
 off in the same manner as in suits between individuals ; 
 and in any suit against the president of any such associa- 
 tion, as president thereof, he may set off demands belong- 
 ing to it in the same manner and with the same effect as 
 if such association was the nominal party in the cause. (5H) 
 
 ACT OF APRIL 27th. 1841. 
 
 (LAWS 1841, CHAP. 130, P. 106.) 
 
 An Act respecting the appointment of Receivers of Mon- 
 eyed Institutions. Passed April 'ilth, 1841. 
 
 The People of the State of New Yorh, represented in 
 Senate and Assenibly, do enact as follows : ( 52 ) 
 
 § 1. "Whenever in proceedings in the court of chancery Eeceivera 
 against any moneyed corporation, or any banking associa- pointed by 
 tion, or individual banker, formed or transacting busi- m^ioners. 
 ness under the " Act to authorize the business of banking," 
 passed April 18, 1838, it shall become necessary or expe- 
 dient to direct the appointment of a receiver of the effects 
 of any such corporation, association, or banker, or in the 
 case of the death or resignation of any such receiver, an 
 order shall be entered by such court referring it to the 
 bank commissioners to name a proper person to be ap- 
 pointed such receiver, and to take from said receiver such 
 security, and in such penalty as they shall deem proper for 
 the faithful discharge of his duties ; the sufficiency of such 
 
 (514) See note (40), p. 98, ante. 
 
 (52) This act repealed by the act of January 22d, 1842. (Laws 1842, 
 chap. 3, p. 4.) See also the act of April 11th, 1842. (Laws 1842, chap. 222, 
 p. 273.) See these acts, post. 
 
128 SPECIAL STATUTES APPLICABLE TO 
 
 security shall be determined by them in the manner now- 
 provided by the rules of the court of chancery for asceir- 
 taining the sufficiency of sureties, and for accounting 
 whenever required ; and on the filing of a certificate by 
 the bank commissioners naming any person to be ap- 
 pointed such receiver, together with the bond given by 
 him, an order shall be entered by the said court appoint- 
 ing the person named in such certificate receiver of the 
 effects of such corporation, association, or banker, with 
 the usual powers of receiver in such cases. 
 Tobesnb- 8 2. Such receiver shall be subiect to the direction and 
 
 jcct to direo- " ' ■' 
 
 tro°™com-' control of the bank commissioners in respect to the collec- 
 mias oners. ^.^^ ^^^ management of the effects of such corporation, 
 association, or banker, and with their assent may compro- 
 mise and compound any claims or demands of such corpo- 
 ration, association, or banker, and may extend the time for 
 the payment of any such claims or demands, and may sell 
 any effects in his hands at public auction or private sale, 
 and on such terms of credit as may be deemed most for 
 the interest of all parties concerned. 
 How to be § 3' Whenever the bank commissioners shall be dissat- 
 remove . jggg^ ^j|.]j ^}jg proceedings of any receiver of the effects of 
 any such incorporation, association, or banker, hereafter 
 appointed, they may by writing under their hands certify 
 to the court of chancery that such person shall be removed 
 from his appointment of receiver ; and on filing such cer- 
 tificate in the court by which such receiver was appointed, 
 such court shall enter an order removing him ; and there- 
 upon a further order shall be entered, referring it to the 
 bank commissioners to appoint a receiver in the plg,ce of 
 the person so removed, and the same proceeding shall be 
 had thereon as provided in the first section of this act in 
 
BANKING CORPORATIONS. 129 
 
 the case of an original appointment, and the receiver so 
 appointed shall possess the like powers, and be subject to 
 the same directions as provided by this act in case of an 
 original appointment. 
 
 § 4. The receivers to be appointed under and in virtue Pay of re- 
 
 . oeivers. 
 
 of this act shall be entitled to the same commissions and 
 compensation for their services as are now allowed by law 
 . to executors and administrators, and no greater or other 
 commissions or compensation than is hereby allowed shall 
 be received or retained by them. 
 
 § 5. This act shall take effect immediately. 
 
 ACT OP MAY 26th, 1841. 
 
 (LAWS 1841, CHAP. 319, P. 308.) 
 
 An Act to amend the act entitled " An Act to authorize 
 the business of banking." Passed May 26th, 1841. 
 
 The People of the State of New York, represented in 
 Senate omd Assembly, do enact as follows : 
 
 § 1. Every banking association and individual banker asbocIs- 
 
 tions and 
 
 carrying on banking business, or who shall hereafter bankeMto^j 
 carry on banking business, under the act to authorize the b»„'|™m-'° 
 business of banking, shall annually make out and transmit yearly. 
 to the bank commissioners in the form prescribed by them, 
 a full statement of its affairs, verified by the oaths of its 
 president and cashier, which statements shall be deposited 
 by such banking association or individual banker respect- 
 
130 SPECIAL STATUTES APPLICABLE TO 
 
 ively, in the oifice of the secretary of the State, sealed and 
 directed to said commissioners, on or before the twentieth 
 day of January in each year, after the passage of this act, 
 or after the time of their having respectively commenced 
 the business of banking, as prescribed by the act hereby 
 amended. 
 statement, § 2. Such Statement so transmitted shall contain, 
 
 how to be 
 
 made out 1, The amouut of the certified stock of the capital stock , 
 
 of the banking association or individual banker paid in or 
 invested according to law, or in pursuance of its articles of 
 association, and the amount of such stock as then pos- 
 sessed : 
 
 2. The value of the real estate of the association or in- 
 dividual banker, specifying what portion is occupied by 
 the association or individual banker for the transaction of 
 business : 
 
 3. The shares of stock held by such association or in- 
 dividual banker, whether absolutely, or as collateral secu- 
 rity, specifying each kind and description of stock, and the 
 number and value of the shares of each : 
 
 4. The debts owing to the association or individual 
 banker, specifying such as are due from moneyed or other 
 corporations or associations, the names of such corpora- 
 tions or associations, and the amount due from each ; and 
 also specifying the amount secured by bond and mortgage 
 or judgment, the amount which ought to be included iiithe 
 computation of losses, and the total amount of such, debts 
 then collectible. 
 
 ^ ) 
 
 5. The amount of debts owing by the association or 
 individual banker, specifying such as are payable on de- 
 mand, and such as are due to moneyed or other corpora- 
 tions, associations, or individual bankers, the names of 
 
BANKING CORPORATIONS. 131 
 
 such corporations, or associations, or individual bankers, 
 and the amount due to each : 
 
 6. The amount of claims against the association or in- 
 dividual banker, not acknowledged by it or him as debts : 
 
 7. The amount for which the association or individual 
 banker is bound as surety, or for which it may become lia- 
 ble on the happening of contingent events, whether upon 
 policies of insurance or otherwise : 
 
 8. The amount of the notes or bills then in circulation, 
 of said association or individual banker, of loans and dis- 
 counts, and of specie on hand : 
 
 9. The amount on the first of July next preceding, of 
 notes or bills in circulation, of loans and discounts, and of 
 specie on hand, of such association or individual banker : 
 
 10. The amount of the losses of the association or 
 individual banker (if any) charged, specifying whether 
 charged on its or his capital or profits since the last preced- 
 ing statement, and of the dividends declared and made 
 during the same period : 
 
 11. The amount of real estate mortgages and of state 
 stocks, together with the description of such stocks depos- 
 ited by each association or individual banker with the 
 comptroller as security for the circulating notes issued, 
 the market value of said stocks as near as the same can be 
 ascertained, and the date to which payment of interest has 
 been made upon such real estate mortgages and stocks, and 
 whether said interest has been paid to such banking asso- 
 ciation or individual banker, or passed to their or his credit 
 on the books of the comptroller. 
 
 § 3. Every association that shall neglect to make out Penaityfoi 
 
 neglect 
 
 and transmit the statement required as prescribed in the 
 first section of this act, may be proceeded against and dis- 
 
132 SPECIAL STATUTES APPLICABLE TO 
 
 solved as an insolvent association, and every individual 
 banker subject to this law, who shall so neglect, shall be 
 restrained from the farther prosecution of his business. 
 Bank com- § 4. It shall be the duty of the bank commissioners to 
 
 misfcionera to 
 
 prepare prepare forms of the statements, and to transmit a copy 
 statements, thercof, together with such instructions as they may deem 
 necessary, to every association or individual banker which 
 is or shall be bound to furnish such statements under the 
 provisions of this act. The expenses of printing the forms 
 of said statements and instructions shall be paid by the 
 treasurer on the warrant of the comptroller, and the 
 amount thereof retained by the comptroller and paid into 
 the treasui-y, out of the interest of the securities deposited 
 with the comptroller by the said banking associations and 
 individual bankers, in proportion to the amount of securi- 
 ties deposited by each. 
 
 § 5. The twenty-sixth section of the act hereby amended 
 is repealed. 
 
 § 6. The iirst section of the act hereby amended, shall 
 be amended so as to read as follows : 
 oomptroi- '^^® comptroller is hereby authorized and required to 
 izedM print causc to be eugravcd and printed in the best manner to 
 
 circulating 
 
 b°'kMte g^^rd against counterfeiting, such quantity of circulating 
 notes in the similitude of bank notes, in blank of the differ- 
 ent denominations authorized to be issued by the incorpo- 
 rated banks of this State, as he may from time to time 
 deem necessary to carry into effect the provisions of this 
 act, and of such form as he may prescribe ; such blank 
 circulating notes shall be countersigned, numbered, and 
 registered in proper books to be provided and kept for 
 that purpose in the office of said comptroller, under his 
 direction, by such person or persons as the said comptroller 
 
BANKING CORPORATIONS. 133 
 
 shall appoint for that purpose, so that each denomination 
 of such circulating notes shall bear the uniform signature 
 of such register or one of such registers. 
 
 § 7. Every assignment of any bond or mortgage exe- -^'''S"-. 
 cuted by the comptroller under his official seal, in pursu-f^^^^^yP^™'" 
 ance of the provisions of the said act, or which may be 
 otherwise authorized by law, may be recorded in the same 
 manner and with the like effect as a deed regularly ac- 
 knowledged or proved before any officer authorized by law 
 to take the proof and acknowledgment of deeds. 
 
 § 8. When any individual banker or the officers of any Banker or 
 
 , _ , . asBociation, 
 
 banking association desirous of relinquishing the banking J^^^^'J^^ 
 business, shall have redeemed at least ninety per cent, of '^"'^°'' 
 their circulating notes, and shall produce to the comptroller 
 a certificate of a deposit to his credit in such bank as he 
 shall approve, to an equal amount with the circulating 
 notes of such bank unredeemed, it shall be lawful for him. 
 to receive the same, and to give up all the securities there- 
 tofore deposited by such banker or association, for the 
 redemption of circulating notes issued. 
 
 § 9. Such association or individual banker, after hav- Notice to 
 
 . .. .be given for 
 
 mg complied with the provisions of the preceding section, two years. 
 may give notice for two years in the State paper, and also 
 in at least one newspaper printed in the county where the 
 said association or bank shall have been located, that all 
 circulating notes issued by such association or bank, must 
 be presented at the comptroller's office within two years 
 from the date of such notice, or that the funds deposited 
 for the redemption of the notes will be given up to the 
 bank or association ; and on receiving satisfactory proof of 
 the giving such notice for the time aforesaid, the comp- 
 troller shall surrender to the order of the said association 
 
134 SPECIAL STATUTES APPLICABLE TO 
 
 or bank, any securities which he may hold for the pay- 
 ment of any unredeemed notes of the said association or 
 bank. ( 53 ) 
 efSto^ § 10. It shall be the duty of the secretary of state to 
 i°prif 18?°' "'p^iitlish with the session laws for the year 1841, a chapter 
 
 18B8,and . . ./ ' r 
 
 amendme'ts. contammg the act to authorize the business of banking, 
 passed April 18, 1838, as amended by subsequent enact- 
 ments, showing in a corrected and condensed form the pro- 
 visions of law at present in operation affecting the associa- 
 tions or individuals doing business under the said acts. 
 {See Session Laws 1841, p. 251 to 268.) 
 
 ACT OP JANUARY 22d, 1842. 
 
 (LAWS 1842, CHAP. 3, P. 4.) 
 
 An Act to repeal an act enUtled " An act respecting the 
 appointment of Beoeivers of Moneyed Institutions^'' 
 passed April ^Ith, 1841, and to limit the compensation 
 of Receivers. Passed January 22, 1842. 
 
 The People of the State of New YorJs, represented in Sen- 
 ate and Assembly, do enact as follows : 
 
 Eepeai. § 1. The act entitled " An act respecting the appoint- 
 
 ment of receivers of moneyed institutions," passed April 
 27th, 1841, is hereby repealed. 
 
 Pay of re- § 2. Ecccivers of moneyed institutions shall be entitled 
 to the same commissions and compensation for their ser- 
 
 (53) § 9 of this act amended by § 1 of the act of March 29, 1851 (Laws 
 1851, chap. 68, p. Y5). See this act, ^osi. 
 
 ceivers. 
 
BANKING CORPORATIONS. 135 
 
 vices as are now allowed by law to executors and admin- 
 istrators ; and no greater or other commissions or compen- 
 sation than is hereby allowed shall be received or retained 
 by them. 
 
 § 3. This act shall take effect immediately. (54) 
 
 ACT OP APRIL 11th, 1842. 
 
 (LAWS 1842, CHAP. 222, P. 273.) 
 
 An Act respecUng Receivers appointed hy the Bank Com- 
 missioners under the act entitled "An act respecting 
 the appointment of receivers of moneyed institutions" 
 passed April 27, 1841. Passed April 11, 1842. 
 
 The People of the State of New Yorh, represented in Sen- 
 ate a/nd Assembly, do enact as follows : 
 
 § 1. That all the receivers heretofore appointed by the Eeceivors 
 
 " ^ , rr ./ snbjecttothe 
 
 bank commissioners, under the act entitled "An act re- "^^^ 5^„j""' 
 specting the appointment of receivers of moneyed institu- 
 tions," passed April 27, 1841, shall be subject to all the 
 provisions of law applicable to receivers of moneyed in- 
 stitutions appointed by the chancellor pi-evious to the 
 passage of the last-named act, and shall be accountable to 
 and under the direction of the chancellor in relation to all 
 their powers and duties, and the property and effects that 
 has or shall come into their hands as such receivers, in the 
 
 (54) See the act of April 11th, 1842. (Laws 1842, chap. 222, p. 273.) 
 See this act, post. 
 
136 SPECIAL STATUTES APPLICABLE TO 
 
 same manner and to the same extent as they would have 
 been had they been appointed by the chancellor. 
 • It shall be the duty of the chancellor, from time to 
 time to make such directions to such receiyers in relation 
 to the property and effects in their hands, or hereafter to 
 come into their hands, as he shall deem most beneficial 
 to the creditors of such moneyed institutions ; and the 
 chancellor shall have power at any time to remove any 
 such receiver, and to appoint others, for neglect of duty 
 or official misconduct, in the same manner and with the 
 like power that he now has over receivers appointed by 
 himself, and not otherwise. 
 
 § 2. This act shall take effect immediately. ( 55 ) 
 
 ACT OP APRIL 18th, 1843. 
 
 (LAWS OF 1843, CHAP 218, P. 299.) 
 
 An Act to abolish the office of Bank Commissioner, and 
 for other purposes. Passed April 18, 1843. 
 
 The People of the State of Nenjo York, represented in 
 Senate and Assembly, do enact as follows : 
 
 Banks to § 1. Evcry chartered bank shall take an account of its 
 
 return state- ,t, i_r» t t* t i -t 
 
 mcntofcir- Qotes for Circulation on the hrst day of July, eighteen 
 
 (55) See provisionB of the Revised Statutes as to the power and jurisdic- 
 tion of the chancellor in cases of insolvent corporations, <Stc. (pp. 50-'74, 
 ante) ; and also relating to Receivers of such corporations (pp. 59-64, and 
 68-73, ante); also note 25, p 74, ante; see also the act of April 16, 1849 
 (Laws 1849, chap. 226, p. 340) ; also, the act of March 15, 1855 (Laws 1855, 
 chap. 69, p. 101). See these acts, post. 
 
BANKING CORPORATIONS. 137 
 
 hundred and forty-three, and shall return to the comp- cuiattng 
 
 •' ' -"^ notes to 
 
 troller, under the oath of the president and casliier, a"""^'""^" 
 statement of all the notes of the bank which it has in 
 possession, or in any way out&tanding or in circulation on 
 that day, specifying the amount of bills of each denomina- 
 tion, and the aggregate amount of the whole circulation, 
 and shall at the same time deposit with the comptroller 
 their plates ; and no bank shall after the time in that day 
 to which the return of the president and cashier is made 
 up, issue any of its own notes which have not been 
 countersigned and registered by tbe comptroller ; but if 
 the comptroller shall be unable to supply any bank with ^^^ ^j 
 countersigned and registered notes as fast as such bank ionnterBign 
 
 • T/» -in 1 /"Ti •! register 
 
 may require, on and after the first day oi July, eighteen notes. 
 hundred and forty-three, such bank may be permitted by 
 the comptroller to re-issue so much of its old circulation, 
 within the limits prescribed by law as may be necessary, 
 not exceeding the amount returned to be outstanding on 
 that day; nor shall any such issue take place until an 
 application has first been made to the comptroller for 
 countersigned and registered notes, and refused ; and pro- 
 vided, also, that the stockholders of any chartered bank 
 shall be individually liable for all the notes of its old cir- 
 culation which shall be outstanding on and after the first 
 of July, eighteen hundred and forty-four ; and after the 
 first day of July, eighteen hundred and forty-four, no 
 bank shall pay out any note of any bank which has not 
 been countersigned and registered at the comptroller's ^^^^^^ 
 office, as herein provided. And all the notes of any bank ?£mea° 
 issued prior to the first of July, eighteen hundred anded. 
 forty-three, not countersigned and registered, or delivered 
 to the comptroller to be countersigned and registered 
 
138 SPECIAL STATUTES APPLICABLE TO 
 
 shall, on or before the first of July, eighteen hundred 
 and forty-four, be redeemed and destroyed in the presence 
 of the comptroller, or of some person to be appointed by 
 him for that purpose. And a certificate of the counting 
 and destruction of the notes certified to be destroyed 
 shall be signed and sworn to by the comptroller or his 
 agent, and an agent appointed by the bank, and deposited 
 in the comptroller's office. 
 oomptroi- § 2. It shall be the duty of the comptroller to receiye 
 plates and and safelv keep the plates to be delivered to him by the 
 
 print and de- J r r J 
 
 t^ban^^ banks, as prescribed in section first ; and at all times to 
 an^'oountei^ causo to be printed from said plates, and to deliver to 
 
 signed. 
 
 each bank such notes, and of such denomination as is now 
 allowed by law, as the bank owning such plates may 
 require, not exceeding together with outstanding old cir- 
 culation, and with the notes previously received, the 
 amount of circulation now allowed to such banks by law ; 
 and it shall also be the duty of the comptroller to employ 
 suitable persons whose duty it shall be to countersign 
 such bills in such uniform manner as the comptroller may 
 prescribe ; and every note so countersigned shall, before 
 it is delivered to the bank, be registered in a book to be 
 kept by the comptroller for that purpose ; and the ex- 
 penses of preparing, countersigning, and registering such 
 notes, shall he paid to the comptroller by the banks re- 
 ceiving the same, in proportion to the number of notes 
 received. And it shall be competent for the comptroller, 
 when the plates of any bank are worn or otherwise unfit 
 for use, to require such bank to furnish new plates, or to 
 procure them himself at the expense of such bank. 
 
 § 3. Every bank and banking association shall make a 
 quarterly report to the comptroller, commencing on the 
 
BANKING CORPORATIONS. 139 
 
 first Monday of August next, to be continued on the first 
 days of November, February, May, and August there- 
 after, in each and every year ; which said report shall be 
 made on the oath of the president and cashier, and shall 
 contain a true statement of the following items, on the 
 morning of the said first Mondays of August, before any 
 business of that day. Loans and discounts, over drafts, 
 due from banks, due from directors of said bank, due 
 from brokers, real estate, specie, cash items, stocks and 
 promissory notes, bills of solvent banks, bills of suspended 
 banks, loss and expense account, capital, circulation (dis- 
 tinguishing that received from the comptroller from the 
 old, outstanding bills), profits, amount due to banks, 
 amount due to individuals, amount due to treasurer of 
 state, amount due to commissioners of canal fund, amount 
 due to depositors on demand, amount due not included 
 under either of the above heads. And it shall be the 
 duty of the comptroller to publish said reports together in 
 the State paper, accompanied with a summary of the 
 items of capital, circulation, and deposits, specie and cash 
 items, public securities, and private securities ; and the 
 separate report of each bank shall be published in a news- 
 paper published in the county in which such bank is 
 situated, at the expense of said bank. ( 56 ) 
 
 S 4. The comptroller shall publish the reports and Keportand 
 
 * summary to 
 
 summary required by the third section, together, in one^^f"'''''''^''- 
 paper, on or before the twentieth day of August, Novem- 
 ber, February, and May, in each year, and the expense of 
 such publication shall be defrayed by a percentage as- 
 
 (66) § S and § 4 of this act amended by §§ 1, 2, of the act of December 
 4, 184'7 (Laws 1847, chap. 419, p. S19). See this act, post. 
 
140 SPECIAL STATUTES APPLICABLE TO 
 
 sessed upon the capital stock of all the banks and banking 
 associations of the State : and if any bank shall fail to 
 furnish to the comptroller its quarterly report in time for 
 such publication, it shall forfeit and pay to the comp- 
 troller the sum of one hundred dollars, to be applied by 
 him to the payment of the expense of publishing the 
 quarterly reports ; and if any bank or banking associa- 
 tion shall neglect or refuse to make the quarterly report 
 required by the third section, for two successive quarters, 
 it shall forfeit its charter (if an incorporated bank), and its 
 privileges as a banking company, if organized under the 
 law of April, 1838, and may be proceeded against and its 
 affairs closed, in any manner now provided by law in case 
 of an insolvent bank or banking association. 
 ProTision § 5. "Whenever it shall appear, from the reports made 
 tapSed!"^ by any bank or in any other way, that the capital of any 
 bank has become impaired and reduced, it shall be compe- 
 tent for the comptroller to call upon such bank to redeem 
 its circulation while its capital continues so reduced, so 
 that the circulation of such bank shall not exceed that to 
 which its reduced capital would by law entitle it. 
 Office of 8 6. The office of bank commissioner is hereby abol- 
 
 bank com- " *' 
 
 SShei ished ; provided, however, that it shall be competent for 
 the comptroller, whenever he shall have good and suffi- 
 cient reason to suspect the condition of any bank, or the 
 correctness of its quarterly report, to appoint a special 
 agent to examine the affairs of such bank, and who for 
 that piirpose shall have the same powers now vested by 
 law in a bank commissioner. And the expenses of such 
 investigation, if such bank shall be proved to have made 
 a false return, or otherwise to have been guilty of a 
 violation of law, shall be paid by said bank ; but if it 
 
BANKING CORPORATIONS. 14:1 
 
 appear that such bank has ' violated no law, then the ex- 
 penses of such examination shall be defrayed in the same 
 manner as is herein provided for defraying the expenses 
 of the publication of the quarterly reports. 
 
 § 7. Any bank may, at its pleasure, on paying its Provisioii 
 dues to the safety fund, and on depositing with the comp- f^/_ '^^ 
 troller an amount of money equal to the wliole amount 
 which any such bank would be liable to pay to the safety 
 fund during the time of its original charter, and all other 
 debts and demands against it, wind up its affairs, dis- 
 tribute its assets among its stockholders, and resign its 
 charter, and close its business by a resolution passed at 
 a meeting of the stockholders, and approved of by a 
 majority of stockholders in interest of such bank called 
 for that purpose, a copy of which resolution shall be 
 furnished to the comptroller, and shall also be published 
 for three successive weeks in the State paper ; and if any 
 outstanding notes or other demands are not presented 
 within one year, such bank may deposit with the comp- 
 troller, or elsewhere under his direction and subject to his 
 order, on interest, a sum sufficient to meet such outstand- 
 ing demands, which, when presented to the comptroller, 
 shall be paid by him out of such sum ; and such bank 
 may distribute among its stockholders the surplus of its 
 assets ; and after six years from the day on which publica- 
 tion of dissolution was first made, the comptroller shall 
 return to the stockholders, to be distributed, the remainder, 
 if any, of the sum so deposited. 
 
 § 8. All acts, heretofore passed, that conflict with the Repeal, 
 provisions of this act are hereby repealed. 
 
142 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OF MARCH 16th, 1844. 
 
 (LAWS 1844, CHAP. 41, P. 35.) 
 
 An Act to amend the act passed April 18, 1838, entitled 
 " An Act to authorize tJie business of hamMng." 
 Passed March l&th, 1844. 
 
 The Pecple of the State of New YorTc, represented in 
 Senate amd Assemhly, do enact as follows : 
 
 comptroi- R 1, fhe Comptroller is hereby authorized to receive 
 
 lep may re- o jr ./ 
 
 hoirus. and hold all stocks of the United' States already deposited 
 in hisoflBce, as security for circulating notes issued, or that 
 may be issued to any banking association or individual 
 banker, on the security of the said stocks, in the same 
 manner, and with like effect, as if they were stocks of this 
 State. 
 
 § 2. This act shall take effect immediately. 
 
 ACT OP MAY 6th, 1844. 
 
 (LAWS 1844, CHAP. 281, P. 416.) 
 
 An Act to ajmend tJie act passed May 14, 1840, " An Act 
 to amend the act entitled an act to authorize the business 
 of hamJcvng. Passed May 6^A, 1844. 
 
 The People of the State of New Yorh, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. The third section of said act is hereby amended so 
 as to read as follows : 
 Associa- No association of persons shall commence the business 
 
BANKING CORPORATIONS. 143 
 
 of banking tinder said act, until sucli association shall '^'^s^jd in- 
 have deposited with the comptroller the securities re- deposUBeeu- 
 
 rlties with 
 
 quired by law, to tbe amount of one hundred thousand comptroller, 
 dollars ; and no individual banker or bankers shall com- 
 mence the business of banking under said act, or receive 
 circulating notes under the same, until such individual 
 banker or bankers shall have deposited with the comp- 
 troller the securities required by law, to the amount of 
 fifty thousand dollars. 
 
 § 2. Each and every individual banker now "ioing Mividnai 
 business under the general banking law of this State, orotgerslre"?- 
 who shall, before this law takes eii'ect, have received cir-them. 
 culating notes under the said act, shall state in his 
 quarterly reports, whether any person or persons, and 
 who, are interested with such individual banker, directly 
 or indirectly, in the securities deposited with the comp- 
 troller for the circulating notes obtained by such individ- 
 ual banker, or in the business of circulating said notes, 
 or the benefits or advantages thereof; and if it shall ap- 
 pear from such report that any other person is so interested 
 with said banker, and in case two successive reports of said 
 banker shall not contain such statement, or if he omit 
 
 Penaltyfor 
 
 twice in succession to make such quarterly reports, such J^jo"""* '" 
 banker shall forfeit one thousand dollars for each and every 
 omission to make such statement, or to file such reports as 
 aforesaid, to be sued for and recovered by the attorney- 
 geneial, in the name and for the benefit of the people of 
 this State. (57) 
 
 (57) §§ 2 and 8 of this act extended and declared to be applicable t _ 
 every individual banker " who is now doing business, or shall hereafter do 
 business, under the general banking laws of this State," by § 5 of the act of 
 April 15, 1854 (Laws 1854, chap. 242, p, 651). See this act, post. 
 
144 SPECIAL STATUTES APPLICABLE TO 
 
 indivtanai § 3. Evcrv individual banker who shall heretofore 
 
 u8fDK6r8 to 
 
 Se^rfiwi- liave obtained circulating notes of the comptroller, under 
 comptrouer'ssaid act, shall within ninety days after this act takes effect, 
 , file in the comptroller's office a certificate, stating the 
 
 town, city, or village in which he resides ; and thereafter 
 it shall not be lawful for such individual banker to trans- 
 act business under said act in any other place than in 
 which he resides ; and in case of any change of residence 
 of such individual banker, he shall forthwith file a notice 
 thereof in the comptroller's office as aforesaid. Any per- 
 negiect!'^'"' SOU neglecting to comply with the requirements of this 
 section, or either of them, shall, for each neglect, forfeit 
 one thousand dollars, to be sued for and recovered by the 
 attorney-general, in the name and for the benefit of the 
 people of this State. [See note 5T, p. 134, cmte.'\ 
 § 4. This act ^hall take effect immediately. 
 
 ACT OP APRIL 24th, 1845. 
 
 (LAWS 1845, CHAP. 87, p. 73.) 
 
 An Act relative to purchasers at receivers' sales. Passed 
 April 24, 1855. 
 
 The People of the State of New Yorh represented, in 
 Senate and Assembly, do enact as follows : 
 
 Eeoeivers 8 1. Auv purchaser from the receiver of a banking: 
 
 maytakaand , . 
 
 Md real es- corporation of any chose in action belonging to the assets 
 *of such corporation, may prosecute the same in liis own 
 name ia all cases where by law, the same could be pros- 
 ecuted in the name of such receiver. 
 
BANKING CORPORATIONS. 145 
 
 ACT OP APRIL 28th, 1845. 
 
 (LAWS 1846, CHAP. 112, P. 90.) 
 
 An Act in relation to the Powers of Receivers and Com- 
 mittees of lunatics and hdbiinial drunkards. Passed 
 April 28th, 18i5. 
 
 The People of the State of New Yorh, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Any receiver appointed by virtue of an order or Eeoeivera 
 decree of the court of chancery, may take and liold real mihoii 
 
 reaL estate. 
 
 estate upon such trusts and for such purposes as the court 
 may direct, subject to the further order or direction of the 
 court from time to time in relation to the disposition of 
 such real estate. 
 
 § 2. Receivers and committees of lunatics and habit- po^erj of 
 ual drunkards, appointed by any order or decree of the commiue™ 
 
 of lunatics 
 
 court of chancery, may sue in their own names for any ™d^ drunk- 
 debt, claim, or demand transferred to them, or to tlie pos- 
 session and control of which they are entitled as such re- 
 ceiver or committee ; and when ordered or authorized to 
 sell such demands, the purchaser thereof may sue and re- 
 cover therefor, in his own name, but shall give such secu- 
 rity for costs to the defendant, as the court in which such 
 suit is brought, may direct. [See Laws 1844, chap. 239, 
 p. 370, and Loajos 1846; chap. 97, p. 100.] 
 10 
 
146 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OF APRIL 29th, 1847. 
 
 (LAWS 184Y, CHAP. 160, P., 154.) 
 
 An Act concerning the Election of Directors of Banking 
 Associations. Parsed April 29th, 1847. 
 
 The People of the Stats of New YorJe, represented in 
 Senate and Assembly, do enact as follows : 
 
 Subject to § 1. Every bankinsr association which has been, or 
 
 the revised v j a J 
 
 statutes. shall hereafter be formed or organized nnder the provi- 
 sions of the act entitled " An Act to authorize the business 
 of banking," passed April 18, 1838, or of any act amend- 
 ing the same, shall be subject to the provisions of article 
 two, title two, chapter eighteen, part one, of the Eevised 
 Statutes. 
 
 § 2. This act shall take effect immediately. ( 58 ) 
 
 ACT OP DECEMBER 4th, 1847. 
 
 (LAWS 1847, CHAP. 419, P. 519.) 
 
 An Act to amend an Act to Abolish the Office of Bank 
 Commissioner, and for other pwposes, passed April 
 18th, 1843. Passed Dec. 4cth, 1847, " three fifths leing 
 present." 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enitct as follows : 
 
 § 1. The third section of the act entitled " An Act to 
 abolish the office of bank commissioner, and for other pur- 
 
 (58) See note 4, p. 1, ante; note 8, p. It, ante; and note 9, p. 22, ante. 
 
BANKING CORPORATIONS. 147 
 
 poses," passed April 18, 1843, is laereby amended so as to 
 read as follows : 
 
 It shall be the duty of the comptroller, secretaiy oi^^^*y°^ 
 state, and treasurer, on or before the first Tuesdays of Jan.lndt*rea"rer 
 uary, April, July, and October in each year, to fix upon qnorteriy re- 
 and determine some Saturday in the quarter of a year then 
 ended, in respect to which every incorporated bank, bank- 
 ing association and individual banker in the State shall 
 make a report of the character hereinafter specified. Im- 
 mediately after each determination of such Saturday, the 
 oflScers hereinbefore named shall cause notice thereof to be 
 published daily for six successive days in such newspaper 
 published in the city of Albany as shall, for the time being, 
 have the publication of legal notices under the act entitled 
 " An Act to provide for the public printing," passed 
 March 5, 1 846, or shall serve a copy of such notice upon 
 each incorporated bank, banking association, and individ- 
 ual banker in the State, by delivering the same to some 
 officer or clerk thereof at their respective places of busi- 
 ness, or by depositing the same in the post office, directed 
 to each of such banks, banking associations, and individual 
 bankers, or some officer thereof, at their places of business 
 respectively. 
 
 It shall be the duty of every incorporated bank, bank- 
 ing association, or individual banker in the State, on or be-aJd'^h™ to 
 fore the first days of February, May, August, and Novem- comptroller. 
 ber of each year, to make and transmit to the comptroller 
 a quarterly report, which report shall be made on the oath 
 of the president and cashier, and shall contain a true state- 
 ment of the condition of the bank, banking association, or 
 individual banker making such report, before the transac- 
 tion of any business on the morning of the day specified in 
 
148 SPECIAL STATUTES APPLICABLE TO 
 
 the notice of the comptroller, secretary of state, and treas- 
 urer, next preceding the date of .such report, in respect to 
 the following items and particulars, to wit : 
 Items to be Loans and discounts, over drafts due from banks, due 
 
 reported. 
 
 from the directors of the bank, or banking association 
 making the report, due from brokers, real estate, specie, 
 cash items, stocks and promissory notes," bills of solvent 
 banks, bills of suspended banks, loss and expense account, 
 capital, circulation (distinguishing that received from the 
 comptroller from the old outstanding bills), profits, amount 
 due to banks, amount dae to individuals and corporations 
 other than banks, amount due to the treasurer of the State, 
 amount due to commissioners of canal fund, amount due to 
 depositors on demand, amount due not included under 
 either of the above heads. And it shall be the duty of the 
 comptroller to publish such reports together in the newspa- 
 per published in the city of Albany in this section before- 
 named, accompanied with a sunamary of the items of cap- 
 ital, circulation and deposits, specie and cash items, public 
 securities and private securities ; and the separate report 
 of each bank, banking association, and individual banker 
 shall be published in a newspaper published in the county ; 
 if a newspaper is published in the city or town in which 
 any bank is situated, stich publication shall be had in such 
 paper in which such bank or banking association, or the 
 banking house of such individual banker, shall be situated, 
 at the expense of such bank, banking association, or indiv- 
 idual banker. 
 
 § 2. Section four of the act in the first section of this 
 act referred to, is hereby amended so as to read as follows, 
 to wit : 
 Keports The Comptroller shall pniblish the reports and summary 
 
BANKING CORPORATIONS. 149 
 
 required by the third section of this act, together in oneandsum-^^^ 
 paper, on or before the twenty-fifth day of August, No vem- Ji^hed!'"'' 
 bar, February, and May in each year, and the expense of 
 such publication shall be defrayed by a percentage as- 
 sessed upon the capital stock of all the banks and banking 
 associations and individual bankers doing business under 
 the " act to authorize the business of banking," passed 
 April 18th, 1838, or of any act amending the same, in the 
 State ; and if any such bank, banking association, or indiv- 
 idual banker shall fail to furnish to the comptroller its 
 quarterly report in- time for such publication, it shall for- 
 feit and pay to the comptroller the sum of one hundred 
 dollars, to be applied by him to the payment of the ex- 
 pense of publishing the quarterly reports ; and if any bank, 
 banking association, or individual banker, shall neglect or 
 refuse to make the quarterly report required by the third 
 section of this act, for two successive quarters, it shall for- 
 feit its charter (if an incorporated bank), and its privileges 
 as a banking association or individual banker, if organized 
 or doing business under the act of April eighteen, eighteen 
 hundred and thirty-eight, in this section before referred to, 
 and every such bank, banking association, and individual 
 banker may be proceeded against, and its aflFairs closed, in 
 any manner now required by law in case of an insolvent 
 bank or banking association. 
 
 § 3. "Whenever iij the opinion of the comptroller, there ProviMon 
 
 1111 1 1111. Incasesofin- 
 
 shall be good cause to suspect that any bank, banking; as-^o^ect quar- 
 
 ° ^ ./ 7 o terly returns. 
 
 sociation, or individual banker has made an incorrect or 
 imperfect quarterly return, or is in an unsound or unsafe 
 condition to do banking busAess, it shall be his duty to 
 have the books, papers, and affairs of such bank, banking 
 association, or individual banker, examined by some com- 
 
150 SPECIAL STATUTES APPLICABLE TO 
 
 petent person to be designated by him, who shall examine 
 fully into its books, papers, and affairs forthwith, and re- 
 port to the comptroller on oath the result of such examina- 
 tion, a copy of which report shall be forthwith published 
 in the manner prescribed in the first and second sections of 
 this act in respect to the publication of quarterly returns. 
 The reasonable costs and expenses of every such examina- 
 tion shall be defrayed in the manner prescribed in the sec- 
 ond section of this act for paying the expenses of publish- 
 ing quarterly returns. 
 Bankers § 4:. All individual bankers, and all banldng associa- 
 
 andaasocia- , i-i inn n t • ^ 
 
 tions subject tions, which are now, or shall be hereafter engaged m the 
 
 to taxation. ' ' ° ° 
 
 business of banking under the provisions of the act entitled 
 " An Act to authorize the business of banking," shall be 
 subject to taxation on the full amount of actual capital 
 paid in, or secured to be paid in, as such capital by them 
 severally, at the actual market value of such securities to 
 be estimated by the comptroller without any reduction for 
 the debts of such individual banker or banking association. 
 But in no case shall the capital of any such banking asso- 
 ciation or individual banker, be estimated at a less sum 
 than the amount of circuldtipg notes delivered to such 
 banking association or individual banker and not returned 
 to the comptroller ; and in case the capital of such banking 
 association has been reduced by the surrender of any se- 
 curities to the stockholders thereof, and the certificates of 
 stock held on account of such securities being surrendered 
 to such banking association and cancelled, such banking 
 association shall not be subject to taxation upon such part 
 of its capital. 
 Saving § 5- Nothing in this act contained shall apply to any 
 
 ° ""°' bank or banking association which has reduced its capital 
 
BANKING CORPORATIONS. 151 
 
 stock in violation of the twenty-eightli section of an act 
 entitled " An Act to authorize the business of banking,"* 
 passed April 18th, 1838. (59) 
 
 ACT OP DECEMBER 13th, 1847. 
 
 (LAWS ISil, CHAP. 462, P. 511.) 
 
 An Act to repeal section fioe of iJie act entitled " An Act 
 to amiend an act to abolish, the office of hanh com/mis- 
 sioner, and for other purposes, passed December 4<A, 
 1847." Passed Decembe/r ISth, 184Y. 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Section five of the act entitled an act to amend an Eopeai. 
 act entitled an act to abolish the office of bank commis- 
 sioner, passed December 4th, 1847, which section reads as 
 follows, to wit : " Nothing in this act contained shall apply 
 to any bank or banking association, which has reduced its 
 capital stock in violation of the twenty-eighth section of an 
 act entitled an act to authorize the business of banking, 
 passed April 18, 1838," is hereby repealed. 
 
 § 2. This act shall take efiect immediately. 
 
 (59) This section repealed by the act of December 13, 184'7 (Laws 1847, 
 chap. 452, p. h11). See this act, post. 
 
152 SPECIAL STATUTES APPLICAULE TO 
 
 ACT OF APRIL 12th, 1848. 
 
 (LAWS 1848, CHAP. 340, P. 462.) 
 
 An Act amendatory of the act entitled, " An Act aniihoriz- 
 ing, thehusiness of lamhing" passed April 18, 1838, 
 and the acts amending the same. Passed April 12, 
 
 1848. 
 
 The People of the State of New York, represented in 
 Senate and Assemih/, do enact as follows : 
 
 § 1. All banking associations, or individual bankers, or- 
 andSyidl- g^'i^^®^ Under the provisions of the act passed April 18th, 
 be bmks'of " 1838, entitled " An Act authorizing the business of bank- 
 
 dlscoant and 
 
 deposit. ing," and the several acts subsequently passed amendatory 
 thereof, or which shall hereafter be organized, shall be 
 banks of discount and deposit as well as of circulation ; and 
 the usual business of banking of said associations, or indi- 
 vidual bankers, shall be transacted at the place where such 
 banking association, or individual banker, shall be located, 
 agreeable to the location specified in the certificate 
 directed to be made by the second clause of the sixteenth 
 section of the act passed April 18th, 1838, hereinbefore 
 mentioned, and not elsewhere ; and every report directed to 
 be made by any law of this State from such association or 
 individual banker, shall be verified by the oath of the pres- 
 ident and cashier of such association, or such individual 
 banker, that the business of said association, or banker, has 
 been transacted at such location. But nothing in this sec- 
 tion shall be deemed to repeal or modify the provisions of 
 the act passed 4th May, 1840, entitled " An Act for the 
 
BANKINa CORPORATIONS. 153 
 
 redemption of bank notes," as the same is applicable to all 
 the banks, banking associations, or individual bankers of 
 the State. 
 
 § 2. The securities which banking associations, or indi-^se^juntiea 
 vidual bankers, hereafter to be organized under the provi- SSmptroTier. 
 sions of the above recited act, passed April 18th, 1838, and 
 the amendments thereto, shall deposit with the comptroller 
 as security for the redemption of circulating notes issued to 
 them by the said comptroller, shall be New York state 
 stocks, in all cases to be or to be made to be equal to a 
 stock producing six per cent, per annum, and it shall not be 
 lawful for the comptroller to take such stocks at a rate 
 above its par value or above its current market value : or 
 the securities shall not be less than one half in such stocks 
 and one half in bonds and mortgages upon improved, pro- 
 ductive, unincumbered lands in this State, exclusive of any 
 buildings thereon, said mortgages bearing an interest of 
 not less than seven per cent, per annum, and to an amount 
 not exceeding two-fifths the value of said lands. (60) 
 
 § 3. jSo mortgage hereafter to be deposited as security Amount in 
 
 mortgages. 
 
 as aforesaid, shall be for a greater amount than five thou- 
 sand dollars each. 
 
 § i. The provisions of the first section of this act shall when, to. 
 
 to apply. 
 
 apply to the banking associations and individual bankers 
 now organized as aforesaid, on and after the first day of 
 June, eighteen hundred and forty-eight. 
 
 (60) By § 10 of the act of April 12, 1851 (Laws 1861, chap. 164, p. 309), 
 it is enacted that the provisions of § 2 of the above act shall extend, <fco., 
 to hanking associations, &a , organized before the passage of the above chap- 
 ter, 340. See this act, post. 
 
154 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OP MARCH 12th, 1849. 
 
 (LAWS 1849, CHAP. 91, P. 136.) 
 
 An Act to authorize the compfyroUer to issue registered notes 
 in lieu of unregistered ones, in certain cases. Parsed 
 March 12th, 1849. 
 
 "J 
 
 The People of the State of Nemo York, represented in 
 Senate and Assembly, do enact as follows: 
 
 nofel^£^ § 1. "Whenever any safety fund bank sball apply to tlie 
 to be issued, comptroller for circulating notes, in lieu of those reported 
 to the comptroller as unregistered notes in circulation by 
 such bank on the. first day of July; one thousand eight 
 hundred and forty-three, and the comptroller shall be satis- 
 fied from the facts stated' by the president and cashier of 
 such bank, on oath, that such unregistered notes so re- 
 ported as in circulation on the day aforesaid, have prob- 
 ably been lost or destroyed, he may issue to such bank 
 notes in lieu thereof to an equal amount of those so lost or 
 destroyed, the same as though such unregistered circulating 
 notes had been returned to the comptroller's office. 
 be^d^'^oBited § ^- ^^ ^^^^^ ^^ the duty of the comptroller to require 
 of all banks asking for and receiving circulating notes 
 under the provisions of the first section of this act, to de- 
 posit in his office stocks of this State to be, or to be made 
 to be, equal to a stock producing six per cent, per annum, 
 equal to the amount of thie notes issued. 
 
 § 3. This act shall take effect immediately. 
 
BAJiTKING CORPORATIONS. 155 
 
 ACT OP APRIL 5th, 1849. 
 
 (LAWS 1849, CHAP. 226, P. 340.) 
 
 An Act to enforce the responsibility of slookholders in cer- 
 tain icmking corporations and associations, as pre- 
 scribed by the constitution, and to provide for the 
 prompt payments of demands against such corpora- 
 tions and associations. Passed April 5, 1849. 
 
 The People of the State of New YorTc, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. "Whenever default shall be made in the payment uabnityof 
 
 stockholders 
 
 of any debt or liability, contracted after the first day 'j/'tmotodlte' 
 January, one thousand eight hvmdred and fift/y, by any ^S!^' 
 corporation or joint-stock association for banking purposes 
 issuing bank notes or any kind of paper credits to circulate 
 as money, after the first day of January, one thousand 
 eight hundred and fifty, the stockholders of such corpora- 
 tion or association shall be individually responsible, equally 
 and ratably, such responsibility to be enforced as hereafter 
 provided, and in no other manner, for the amount of such 
 debt or liability, with interest, to the extent of their re- 
 spective shares of stock in any such corporation or asso- 
 ciation, as hereinafter provided. 
 
 § 2. The term "stockholder," as used in this act, shall Thetenn 
 
 ° ' ' stockholder 
 
 apply not only to such persons as appear by the books of ^^y"™ '" 
 the corporation or association to be such, but also to 
 every equitable owner of stock, although the same may 
 appear on such books in the name of another person ; and 
 also to every person who shall have advanced the, install- 
 ments or purchase money of any stock in the name of any 
 
156 SPECIAL STATUTES APPLICABLE TO 
 
 person under twenty-one years of age, and while such per- 
 son remains a minor, to the extent of such advance ; and 
 also to every guardian or other trustee who shall volun- 
 tarily invest any trust funds in such stock ; and no trust 
 funds in the hands of such guardian or trustee shall be. in 
 any way liable under the provisions of this act by reason 
 of any such investment, nor shall the person for whose 
 benefit any such investment may be made be responsible 
 in respect to such stock until thirty days after the time 
 when such persons respectively become competent and 
 able to control and dispose of the same ; but the guardian 
 or other trustee making such investment as aforesaid, shall 
 continue responsible as a stockholder until such responsi- 
 bility devolves upon the person beneficially interested 
 therein ; and in respect to stock held by a guardian or 
 other trustee under a transfer of the same by a third per- 
 son, or under positive directions by a third person for such 
 investment, the person making such transfer or giving 
 such directions, and his executors and administrators, shall 
 for the purposes of this act be deemed a stockholder ; and 
 the estate of such person, if he be deceased, shall be re- 
 sponsible for the debts and liabilities chargeable on such 
 stock according to the provisions of this act* 
 Liawiiiyof § 3. The persous who shall be stockholders of any cor- 
 described in poratiou Or associatiou described in the first section of this 
 
 the flrat sec- 
 
 *'™- act, at the time of contracting any debt or liability by such 
 
 corporation or association, shall be responsible therefor, as 
 declared in the said first section, but shall be exonerated 
 from such responsibility in respect to any stock which shall 
 have been transferred, previous to any default in the pay- 
 ment qf such debt or liability, on the books of such corpora- 
 tion or association, to any resident of this State of full age, in 
 
BANKING CORPOEATIONS. 157 
 
 good faitli and without any intent to evade such responsi- 
 bility ; and every assignee of any stock so transferred pre- 
 vious to such default, shall be responsible for debts and 
 liabilities to the extent of such stock, in the same manner 
 as if he had been the owner at the time of contracting 
 such debt or liability, with the same exception in his 
 favor, in respect to any stock transferred by him as herein 
 provided ; and the same rule of responsibility shall apply 
 to each subsequent assignee. 
 
 S 4. A book shall be provided and kept by every cor- Names of 
 
 ° - _ -^ r ,; ./ Btockholdere 
 
 poration or association described in the first section of this r^ye^ea to 
 act, in which shall be entered the names and residences ofabookT**" 
 the stockholders in such corporation or association on the 
 first day of January, one thousand eight hundred and 
 fifty, and the names and residences of the original stock- 
 holders of every corporation or association organized after 
 the day last mentioned, so far as the same are known to 
 the ofl&cers of the bank, the number of shares held by 
 each stockholder, every registered transfer of stock upon 
 the books of the bank after the said last-mentioned day, 
 the names of the assignor and assignee, with their resi- 
 dences and the number of shares transferred. The said 
 book shall be at all times, during the usual hours of trans- 
 acting business, open to public inspection. 
 
 A neglect to provide and keep such book ready for ex- 
 amination, as herein provided, shall subject the corpora- "^^lect. 
 tion or association whose duty it is to provide and keep the 
 same, to a penalty of one hundred dollars for every day's 
 neglect. And a refusal by any officer of such corporation 
 or association to exhibit such book to any person demand- 
 ing the inspection thereof, as herein provided, shall sub- 
 ject such officer to a penalty of fifty dollars. The said 
 
158 SPECIAL STATUTES APPLICABLE TO 
 
 penalties may be sued for and recovered, with costs, by 
 any person who will prosecute for the same ; the one 
 ' moiety thereof to be paid to such person, and the other 
 moiety to be paid into the treasury of this State. In all 
 proceedings under the provisions of this act, the said book 
 shall be presumptive evidence of the truth of the contents 
 thereof; but such presumption may be repelled by evi- 
 dence, by any party or person interested in repelling the 
 same. 
 After 8 5. After the expiration of twenty days from the ser- 
 
 twBDty days " ■*■ ^ </ 
 
 be'entiSSto'^ice of any summons or complaint or declaration, or pro- 
 derorrnieforceeding for the recovcry of any demand, against any cor- 
 poration or association described in the first section of this 
 act, upon any debt or liability exceeding one hundred 
 dollars, contracted after the first day of January next, in 
 which the precise sum demanded shall be stated, the 
 plaintiff shall be entitled to enter an order or rule for 
 judgment, upon filing such complaint or other proceeding 
 with due proof of personal service thereof upon any officer 
 of such corporation or association, and judgment shall be 
 rendered thereon for such demand, with interest and costs, 
 whether an answer to such complaint or other proceeding 
 has been served or not, unless an order shall have been 
 filed in the office of the clerk where such judgment might 
 be entered, granted by a justice of the supreme court or 
 county judge, that the entry of such judgment be stayed 
 until the issue joined or to be joined by the parties be 
 disposed of. But no such order shall be granted without 
 proof, by affidavit, to the satisfaction of such judge, that 
 the defendant in such suit has a good defence on the 
 merits to such demand or some part thereof, arising upon 
 facts set forth in such affidavits. 
 
BAireiNG CORPORATIONS. 159 
 
 § 6. Upon tlie return of an execution against the prop- j,_jCoiT)ora-^^ 
 erty of any corporation or association described in tbe first dLoWed. 
 section of this act unsatisfied in whole or in part, or upon 
 proof satisfactory to any justice of the supreme court that 
 any such execution, although not returned, cannot be 
 satisfied out of any property of the defendant, he shall 
 at once make an order declaring the insolvency of such 
 cerporation or association. 
 
 S 7. Any creditor of any such corporation or associa- AppUca- 
 
 " "^ ^ X tion when to 
 
 tion, having a demand exceeding one hundred dollars ^°„"'Ji',g3oio. 
 arising upon a debt or liability contracted after the first 
 day of January next [1850], the payment of which shall 
 have been refused by such corporation or association, may 
 at any time after ten days from the time of such refusal, 
 apply to a justice of the supreme court for an order de- 
 claring such corporation or association insolvent, and for 
 an injunction, as hereinafter provided. If in the opinion 
 of such judge, upon the facts presented, it be expedient 
 in order to prevent fraud or injustice, he may grant an 
 order for a temporary injunction restraining such corpora- 
 tion or association, and its oflicers, from paying out or in 
 any way transferring or delivering to any person any 
 money or assets of such corporation or association, or in- 
 curring any debt or obligation until such order be vacated 
 or modified. 
 
 § 8. Upon a hearing of the parties on such short Duty of 
 
 judge on 
 
 notice as the judge shall appoint, he shall determine "^J^^s "f 
 whether such corporation or association be clearly solvent 
 or otherwise, and may require the officers thereof to 
 exhibit any and all of its books, papers, accounts, assets 
 and effects, and to be examined on oath touching the 
 same, before him or a referee to be appointed by him. If 
 
160 SPECIAL STATUTES APPLICABLE TO 
 
 he determine that such corporation or association is 
 clearly solvent, he shall, notwithstanding, continue the 
 order for a temporary injunction, if one has been granted, 
 until the demand of the applicant be fully paid with his 
 costs on such application, unless it shall have appeared by 
 affidavit or otherwise that such corporation or association 
 have a good defence on the merits to such demand. 
 When to § 9- If the judgc determine that such corporation or 
 der to re- associatiou is not clearly solvent, he shall make an order 
 
 strain, "' 
 
 declaring the same insolvent, and shall also by order re- 
 strain such corporation or association and its officers from 
 exercising any (^ its corporate rights, or any rights or 
 privileges granted to it by law, and from collecting or re- 
 ceiving any debts or demands, and from paying out, or in 
 any way transferring or delivering to any person, any of 
 its property, money or effects, until such order be va- 
 cated ; and he shall immediately appoint a receiver of the 
 property of such corporation or association. 
 One or § 10. Auv oue Or more stockholders of any such cor- 
 
 more Btock- u « t/ 
 
 apply fo"aS poration or association owning stock to the amount of one 
 ciaremJpora- tenth part of the capital thereof paid in, may at any time, 
 
 tion insoi- 
 
 Tent; jq h^q manner, apply to any justice of the supreme court 
 
 for an order declaring such corporation or association in- 
 - solvent, or in imminent danger of insolvency. And if on 
 the facts verified by affidavit presented such justice shall 
 deem it necessary or expedient in order to prevent fraud, 
 undue preference, or injustice to creditors, he may grant 
 an order in the nature of a temporary injunction, as speci- 
 fied in the seventh section of this act ; upon a hearing of 
 the parties as soon as may be practicable he may require 
 the exhibition to him, or to a referee to be appointed by 
 him, of all the books, papers, accounts, assets, and effects 
 
BANKING CORPORATIONS. 
 
 161 
 
 of such corporation or association, and an examination of 
 the ofl&cers, servants, and agents thereof, under oath ; and 
 if he determine that such corporation or association is not 
 clearly solvent, or that is in imminent danger of insolv- 
 ency, he shall make an order declaring such determina- 
 tion, and shall by order restrain the said corporation or 
 association and its oificers, in the same manner as pro- 
 vided in the ninth section of this act, and shall also ap- 
 point a receiver of the property of such corporation or 
 association. 
 
 § 11. Every receiver appointed according to this act, powers 
 
 and duty of 
 
 after giving security, shall take into his possession all the receivers, 
 property, effects, books, papers, accounts, and demands of 
 such corporation or association, incliiding the securities, if 
 any, which may have been deposited with the comptroller, 
 belonging to such corporation or association. He shall 
 immediately give notice by publication in such news- 
 papers as the comptroller or any justice of the supreme 
 court shall direct, requiring the creditors of such corpora- 
 tion or-association to exhibit and establish their demands 
 before him within thirty days from the time of his ap- 
 pointment. Snch receiver shall possess all the powers of 
 receivers of corporations under the third article of title 
 four of chapter eight and part third of tlie Rmised Statutes 
 in respect to the settlement of all demands exhibited to 
 them, and in all other respects except as herein otherwise 
 provided ; and. all such powers now conferred by law on 
 trustees of insolvent debtors as may be applicable ; and 
 shall be subject to all the duties and obligations by law 
 imposed on receivers of corporations, except as herein 
 modified. (61) 
 
 (61) § 11 modified and amended by § 1 of the act of March 15, 1855 
 11 
 
162 SPECIAL STATUTES APPLICABLE TO 
 
 Securities s 12. Under the direction of the comptroller, all secu- 
 
 wiien to be *J ^ ' 
 
 S'clsh.'^*"^"rities deposited with him belonging to such corporation or 
 association, shall be converted into cash by the receiver, 
 with the least possible delay ; and the receiver shall also 
 convert into cash the eflPects and demands of such corpora- 
 tion or association, and for that purpose may sell at auc- 
 tion any of the said demands which any justice of the 
 supreme court shall authorize to be sold ; and within 
 ninety days from the time of his appointment, unless such 
 
 to^'mSf^ time be enlarged by a justice of the supreme court, which 
 
 may be done for a period not exceeding ninety days, such 
 
 receiver shall declare a dividend of the cash in his hands 
 
 among the creditors of such corporation or association. 
 
 Expenses 8 13. Bcforc making such dividend, the receiver shall 
 
 to he deduct- " ° ' 
 
 mawn?divi- deduct and retain the sums necessary to defray the ex- 
 penses of the proceedings, and all sums which he may 
 have paid in order to exonerate any property of such cor- 
 poration or association from any pledge or specific lien or 
 levy, under execution or attachment. He shall then 
 apply the money in his hands to the payment of the bills 
 or notes held by bill holders of such corporation or as- 
 sociation who shall have presented the same, in just and 
 equal proportions. If any surplus remain, he shall divide 
 and pay the same to and among the creditors of such cor- 
 poration or association having demands founded on any 
 debt or liability contracted after the first day of January, 
 one thousand eight hundred and fifty, whose demands 
 shall have been ascertained, in proportion to their respec- 
 tive demands ; and if any further surplus remain, he shall 
 divide and pay the same to and among all other creditors 
 of the said corporation or association whose demands shall 
 
 (Laws 1855, chap. 69, p. 101). See this act, 'post. See provisions of the 
 Hevised Statutes, above referred to, p. 59 — 64, and p. 68 — T3, ante. 
 
BANKING CORPORATIONS. 163 
 
 have been ascertained, in proportion to their demands re- 
 spectively. Such payments to creditors shall be made in 
 the order prescribed by law in respect to the duties of re- 
 ceivers of corporations. 
 
 § 14. If there shall remain unsatisfied any debts or lia- Report to 
 
 '^ be made in 
 
 bilities of such corporation or associatiori contracted after ^^^'^[""ae^ 
 the first day of January, one thousand eight hundred and 
 fifty, the receiver shall, within thirty days after tiie declar- 
 ation of the said first dividend, and without waiting for the 
 actual payment of the sums divided, render to a justice of 
 the supreme court residing in the district where the busi- 
 ness of such corporation or association was conducted, a 
 particular account of the said debts and liabilities so re- 
 maining unsatisfied, and a preliminary account of all his 
 proceedings, under oath, in which shall be set forth the 
 amount of cash realized by him, the expenses and allow- 
 ances claimed by him, all payments that he may have 
 made, the amount on hand to be divided, and the divi- 
 dends declared by him. 
 
 § 15. The said receiver shall at the same time report List of 
 
 stockholders 
 
 • and submit to such justice a true and accurate list and 'gJi^af' 
 statement of the persons who, since the first day of January, 
 one thousand eight hundred and fifty, were stockholders of 
 such corporation or association, the nominal amount of 
 stock held by each, and the residence of each stockholder, 
 so far as the same can be ascertained. The said list and 
 statement shall be made up from the stock books, ledger 
 and list of stockholders kept by such corporation or asso- 
 ciation, and shall show when each stockholder acquired 
 and transferred the stock standing in his name. 
 
 § 16. The said iustice shall thereupon refer the said re- Eeportand 
 
 ° "* '■ list to be re- 
 
 port and list of stoclNholders to a referee, to be appointed f'™* to ref- 
 
 by him, with directions, after giving notice to all persons 
 
164 SPECIAL STATUTES APPLICABLE TO 
 
 concerned, to apportion the debts and liabilities of such 
 corporation or association contracted after the first day of 
 January, one thousand eight hundred and fifty, and re- 
 maining unsatisfied among the said stockholders, ratably 
 in proportion to their stock, according to the principles in 
 this act declared, and to report his proceedings to such jus- 
 tice, or some other justice of the supreme court in the same 
 district. 
 Hearing, § IT. The Said referee shall cause notice of his appoint- 
 
 Tvhen to be " *■ ^ 
 
 therefSS. ment, and the time and place of hearing on the matters so 
 referred to him, to be given to each stockholder whose 
 name appears on the said list at least ten days before such 
 time, which notice shall be served on such of the said 
 stockholders as may then reside in the county where the 
 principal office or place for conducting the business of such 
 corporation or association was situated, either personally 
 or by leaving A copy thereof at the residence of such stock- 
 holder, with some person of suitable age, and such notice 
 may be served upon all other stockholders, by publishing 
 the same in one advertisement, containing the names of all 
 such last-mentioned stockholders, for at least three weeks, 
 in such newspapers as any justice of the supreme court 
 may direct, and the same shall always be published in the 
 paper designated by law for the publication of legal 
 notices, and in a paper, if there be one, printed in the 
 county where the chief office for conducting the business 
 of such corporation or association was located. 
 Aiiega- § 18. On such hearing the said referee shall hear the 
 
 tlODSand -t n n it ' t 
 
 proofs or all allegations and proofs oi all parties and persons interested 
 
 Heard. ^^ ^j^g matter referred, and particularly shall ascertain the 
 
 persons who are chargeable as stockholders for the debts 
 
 and liabilities contracted as aforesaid, and the amount 
 
 chargeable to each according to the rules and principles 
 
BANKING COEPORATIONS. 165 
 
 declared in this act. At the first special term of the su- 
 preme court held in the county in which such receiver re- 
 sides, or in an adjoining county, after the expiration of six 
 weeks from the time of his appointment, such referee shall 
 report to the justice holding such term, the apportionment 
 of the debts and liabilities among the stockholders made 
 by him in detail, with the proofs taken by him on such 
 hearing. If, in the opinion of such justice, further time is 
 requisite to enable the said referee to complete the appor- 
 tionment directed, or to take further proof in reference to 
 the same, he may grant such further time not exceeding 
 ninety days. 
 
 § 19, On the final completion of such apportionment, the Apportion- 
 ment when 
 
 same shall be reported at a special term of the supreme ^*'°J®p"''" 
 court, as hereinbefore directed, and on the coming in of ''"™ ™" ' 
 any such report, the justice holding such term shall pro- 
 ceed to examine the same, and hear the allegations of the 
 parties and persons interested, and may modify or amend 
 the same or may refer the same back to the same or another 
 referee for further proof or examination, or may confirm 
 the same. If there be a further reference, notice of hear- 
 ing thereon may be given by a general notice published in 
 the same newspapers in which the first notice appeared, 
 for two weeks, and a report shall be made thereon within 
 the time, to be specified in the order of reference. 
 
 § 20. When the report of a referee, made according toEeportwhen 
 
 to be filed in 
 
 the preceding sections of this act, shall have been confirmed Jerk's office. 
 by a justice of the supreme court at any special term 
 thereof, after being modified or amended by him, the same, 
 together with the order of confirmation, shall be filed in 
 the oflBce of the clerk of such county as shall be directed 
 by such justice ; and unless an appeal be allowed and 
 
166 SPECIM, STATUTES APPLICABLE TO 
 
 entered tterefrom as hereinafter provided, the said order 
 of confirmation shall be final as a judgment against %ach 
 stockholder for the amount found chargeable against him ; 
 and one or more executions thereupon may be issued against 
 any one or more of the stockholders named in such report 
 or order, for the sum or sums chargeable against him or 
 them, in the same manner and with the like effect as upon 
 a judgment in the supreme court, at the instance of the 
 receiver of such corporation or association, and the money 
 collected on such executions shall be paid to and received 
 by such receiver, 
 be'duded" § ^^" '^^ money so collected, after deducting all ex- 
 penses of proceedings, shall be without delay divided, 
 distributed, and paid over to the creditors of such corpora- 
 tion or association, in the same manner as hereinbefore 
 provided in relation to the first dividend, by the said re- 
 ceiver. 
 Necessary § 22. The iusticc to whom any report by a receiver or 
 
 expenses to *^ v ./!.■/ 
 
 be allowed. ^^ ^ referee shall be made as herein provided, shall as- 
 certain and allow tbe necessary expenses attending the 
 execution of their duties, including the hire of such and so 
 many clerks and such professional assistance as may ap- 
 pear to have been useful to expedite the business com- 
 mitted to them, and shall allow to them such reasonable 
 compensation for their services, not exceeding the rate of 
 five dollars for each day actually employed, as he shall 
 deem proper, which allowances and expenses shall be de- 
 ducted and defrayed out of the cash in the hands of the 
 receiver before making dividends thereof. 
 Dividends § 23. Neither the dividends herein directed to be made, 
 
 and appor- 
 
 no"to b'e'^ae- ^'''' *^® apportionment of the debts of such corporation or 
 o°MyeMr"* association among the stockholders thereof, shall be de- 
 
BANKING CORPORATIONS. 167 
 
 layed or suspended by reason of the pendency of any liti- 
 gation or controversy, for the recovery of any demand by 
 or against such corporation or association, unless the same 
 shall be expressly directed by a justice of the supreme 
 court, residing in the district where the business of such 
 corporation or association was conducted ; and such delay 
 shall in no case exceed one year, and if at the time of de- 
 claring any dividend, there shall be any prosecution pend- 
 ing in which any demand against such corporation or 
 association may be established, the receiver may retain in 
 his hands the proportion which would belong to such 
 demand and the necessary costs and expenses of the suit or 
 proceeding, to be applied according to the event of such 
 prosecution, or to be distributed in some future dividend 
 to creditors or among the stockholders. 
 
 § 24. If after paying and discharging the debts and After pay- 
 liabilities of such corporation or association as herein pro- ^ta"hol°aiE- 
 vided, and defraying all the expenses of the proceedings, 
 there shall remain or come to the hands of the receiver, 
 any other assets or effects of such corporation or associa- 
 .tion the same shall be converted into cash as hereinbefore 
 directed, and shall be paid to the stockholders upon whoni 
 any such debts or liabilities were apportioned in just and 
 equal proportion to the sums contributed and paid by 
 them. 
 
 § 25. No appeal from any determination or order of a Appeal not 
 
 to suspend or 
 
 iustice of the supteme court, made pursuant to the fifth, i^eiayesecu- 
 
 'f sr 7 r J tion pursuant 
 
 sixth, seventh, eighth, and ninth sections of this act, shall seoS?." 
 suspend or delay the execution of such order or the effect 
 of such determination, unless shall be filed with the notice 
 of the appeal to the clerk of the court, a certificate of a 
 justice of the supreme court, to the effect that there is 
 
168 SPECIAI, STATUTES APPLICABLE TO 
 
 probable error in such order or determination, nor unless 
 . security be given satisfactory to such justice for the pay- 
 ment of the demand upon which the proceedings in those 
 sections may be founded, whenever judgment shall be 
 rendered therefor, with interest at the rate of ten per cent, 
 and costs. 
 Under sec- § 26. No appeal from any order or determination made 
 
 tiott ten. 
 
 pursuant to the tenth section of this act, shall suspend or 
 delay the execution of such order or the effect of such de- 
 termination, unless there be filed, together with the notice 
 of appeal to the clerk of the court, a certificate in all 
 respects corresponding with that required in the last pre- 
 ceding section, nor unless security be given satisfactory to 
 the justice granting such certificate to indemnify the 
 stockholders upon whose application such order or 
 determination was made, against all damages, costs, ex- 
 penses and losses by reason of any debt or liability of 
 such corporation or association created after the first day 
 of January, one thousand eight hundred and fifty. 
 No refer- § 27. No appeal can be made fiom any order of any 
 
 6nG3 to VQ^ 
 
 eree. justlcc of tlio Supreme court under this act referring any 
 
 matter to a referee. 
 Appeal § 28. An appeal from the determination of a justice 
 
 by receiver, of the Supreme court confirming the apportionment of the 
 debts and liabilities of a corporation or association among 
 the stockholders thereof, as provided by this act, may be 
 taken by the receiver of such corporation or association, 
 or by any one or more of the stockholders affected by 
 such apportionment, in the same manner and with the like 
 security as provided by law in the case of appeals from a 
 special term of the supreme court to a general term, or 
 from the judgment of such general term, to the court of 
 
BANKING CORPORATIONS. ' 169 
 
 appeals in the same manner and with the like security and 
 effect as appeals to the same court from any other like 
 judgment, except that it shall not be necessary for a re- 
 ceiver so a^pl/ying* to give any security for costs or other- 
 wise. 
 
 § 29. If any such determination or judgment shall be Newap- 
 
 portionment 
 
 reversed or modified so that a new apportionment of such "^"^ *" ^^ 
 debts and liabilities shall become necessary, the court in 
 which such reversal or modification shall be made, shall 
 direct a new apportionment, and the matter shall be re- 
 mitted to the proper justice of the supreme .court for that 
 purpose ; and the same proceedings shall be had thereon 
 to complete such new apportionment as are herein pro- 
 vided in relation to the original apportionment. 
 
 S 30. Every security taken under the provisions of this securities 
 
 <^ ■! •! r - where to be 
 
 act shall be filed with such clerk of the supreme court, as *'^''' 
 the justice taking the same shall direct ; and the same 
 may be enforced by suit in the name and for the benefit of 
 any person for whose benefit or indemnity the same was 
 taken. 
 
 § 31. Any creditor of any such corporation or associa- Eight of 
 
 creditors 
 
 tion who shall have neglected to present his demand to the who negieot 
 
 o 1. to present 
 
 receiver before the first or subsequent dividend, and whomladt*' 
 shall present the same before the second or any other sub- 
 sequent dividend, shall receive the sum he would have 
 been entitled to on any former dividend, before any distri- 
 bution be made to other creditors. 
 
 § 32. Every issue of fact or of law joined in any suit certain is- 
 against any corporation or association described in the first or law joined 
 
 ° ./ r In suit, to 
 
 section of this act, upon any debt or liability contracted e^/ncf* 
 
 * So in the original. 
 
170 SPECIAL STATUTES APPLICABLE TO 
 
 after the first day of January, one thousand eight hundred 
 and fifty, or against any receiver of such corporation or 
 association, or by any such receiver under the provisions 
 of this act, shall have preference at the court at which it 
 shall be noticed for trial or argument, to all other causes ; 
 and every case made, special verdict rendered, bill of ex- 
 ceptions and demurrer to evidence taken on such trial, and 
 every issue of law joined on the pleadings in any such 
 suit, and every appeal from any order or determination, 
 judgment or decree made or rendered under the provisions 
 of this act, and every special motion relating to any pro- 
 ceedings had under this act, shall have a preference in the 
 hearing and argument thereof in any court where the same 
 may be pending. 
 
 ACT OP APRIL 10th, 1849. 
 
 (LAWS 1849, CHAP. 313, P. 455.) 
 
 An Act amendatory of the aot entitled ^^An Act to author- 
 ise the Business of Bankmg^'' passed April 18, 1838, 
 and the acts amendrng the same. Passed April 10, 1849. 
 
 The People of the State of New Yorh, represented ^in 
 Senate and AsserrMy, do enaot as follows: 
 
 stocks to § 1. The stocks which banking associations, or individ- 
 witttmp- ual bankers, now or hereafter to be organized under the 
 provisions of the act " To authorize the business of bank- 
 ing," passed April 18, 1838, and the amendments thereto, 
 shall hereafter deposit with the comptroller, shall be New 
 
BANKING CORPORATIONS. 171 
 
 York state stocks, in all cases to be, or to be made to be, 
 equal to stock producing six per cent, per annum, or at 
 least one half the amount so deposited shall be in the 
 stocks of the State of New York, as before mentioned, and 
 not exceeding one half in stocks of the United States, in 
 all cases to be, or to be made to be, equal to a stock pro- 
 ducing an interest of six per cent, per annum ; and it shall 
 not be lawful for the comptroller to take such stocks at a 
 rate above their par value, or above their current market 
 value. 
 
 S 2. The shareholders, or a maiority of them in amount, comptroi- 
 who shall be owners of any incorporated bank continuing}^*™ "teTto" 
 the business of banking until the expiration of their char-"^'"'^ °'^' 
 ter, and who shall have associated themselves for the pur- 
 pose of banking, under the provisions of the "Act to 
 authorize the business of banking," passed April 18, 1838, 
 and the amendments thereto, shall be entitled to receive 
 from the comptroller, who is hereby authorized to issue to 
 the association so formed, circulating notes in amounts of 
 not less than ten thousand dollars, upon the deposit of se- 
 curities of the kind described, required by the provisions 
 of the above-mentioned act, and the amendments thereto, 
 to an amount equal to the circulating notes so issued. But 
 if such banking association so formed shall not have depos- 
 ited with the comptroller daring the three years next fol- 
 lowing the date of their articles of association an amount 
 equal to that now required by law of banking associations 
 as security for circulating notes previous to commencing 
 the business of banking, the comptroller is hereby em- 
 powered to retain the interest accruing upon securities so 
 deposited until such association has complied with the pro- 
 
172 SPECIAL STATUTES APPLICABLE TO 
 
 visions of the act above recited, in relation to the amount 
 of security to be deposited in the office of the comptroller. 
 tiotrhw § ^" ^^ *^® shareholders, or a majority of them in 
 
 ex™ra«on*of amount, of any incorporated bank, within one year of the 
 expiration of its charter, shall file with the president 
 thereof a notice in writing, that they intend to avail them- 
 selves of the provisions of the second section of this act to 
 associate for the purpose of banking, it shall be lawful for 
 the directors of said bank to purchase and hold such stock 
 and other securities as the comptroller is or may be author- 
 ized to receive for circulating notes under the provisions 
 of the act to authorize the business of banking, passed 
 April 18th, 1838, and the various acts amending the same, 
 to such an amount as they shall deem for the interest of 
 the shareholders thereof. 
 ProviBion 8 4. An association heretofore or hereafter formed to 
 
 relative to ^ 
 
 fnOTrpOTated'^take the place of an incorporated bank whose charter has 
 
 bnnks. 
 
 expired or is about expiring may, where all the stockhold- 
 ers of such incorporated bank have assented to its organiza- 
 tion under the act to authorize the business of banking, 
 take and hold in addition to such real estate as is prescribed 
 by the twenty-fourth section of the act to authorize the 
 business of banking, such other real estate as at the time 
 of the transfer of the property of the incorporated bank, 
 having been received by it in payment of debts previously 
 contracted to said bank, or purchased by it under judg- 
 ments, or decrees in chancery in favor of said incorporated 
 bank, according to law. 
 
BANKING CORPORATIONS. 173 
 
 ACT OP APRIL 11, 1849. 
 
 LAWS 1849, CHAP. 437, P. 613.) 
 
 An Act to amend cm Act relatwe to JJncla/imed Bank div- 
 idends and deposits, passed May 9, 1835, and for other 
 purposes. Passed April 11, 1849. 
 
 The People of the State of New Yorh, represented in 
 /Senate and Assemibly, do enact as follows : 
 
 § 1. Every company or association now or hereafter in- statement 
 
 "^ •! r J ^ ^ of unclaimed 
 
 corporated or organized, or doing business under any gen- J'/S,*hed. 
 eral or special law of this State, on or before the first day 
 of September next and annually thereafter, shall cause to 
 be published for six successive weeks in one public news- 
 paper printed in the county in which such company or 
 association may be located, and in the state paper, a true 
 and accurate statement verified by the oath of the cashier, 
 treasurer, or presiding ofiicer, of all deposits made with 
 said company or association, and of all dividends and inter- 
 est declared and payable upon any of the stock, bonds, or 
 other 'evidence of indebtedness of said company or associa- 
 tion which at the date of such statement shall have re- 
 mained unclaimed by any person or persons authorized to 
 receive the same for two years then next preceding. 
 
 § 2. Such statement shall set forth the time that every statement 
 
 " ^ how to be 
 
 such deposit was made, its amount, the name and the resi-™*^*" 
 dence, if known, of the person making it, the name of the 
 person in whose favor the dividend or interest may have 
 been declared, its amount, and upon what number of shares, 
 and on what amount of stock, bonds, or other evidence of 
 indebtedness of any such company or association. 
 
17i SPECIAL STATUTES APPLICABLE TO 
 
 ciMtoT"''"" § 3. The term "association " shall include every indiy- 
 idnal doing business alone, under any general or special 
 law of this State. 
 
 ACT OF APRIL 10th, 1850. 
 
 (LAWS 1860, CHAP. 251, P. 486.) 
 
 An Act to cmhend ths act entitled " An act to amend the 
 act entitled an act to anithorize the business of tanhing" 
 passed May 14, 184:0. Passed April 10, 1850. 
 
 The People of the State of New- York, represented in 
 Senate and Assembly, do ena^t as follows : 
 
 § 1. The fourth section of the act entitled, " An Act 
 to amend an act entitled ' An Act to authorize the business 
 of banking,' " passed May 14, 1840, is hereby amended 
 so to read as follows : 
 
 No banking association or individual banker as such, 
 shall issue or put in circulation any bill or note of said 
 association or individual 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 every viola- 
 tion of this section by any officer or member of a banking 
 association, or by any individual banker, shall be deemed 
 and adjudged a misdemeanor, punishable by fine or im- 
 
BANKING CORPORATIONS. 173 
 
 prisonment, or both, in the discretion of the court having 
 cognizance thereof. .( 62 ) 
 
 § 2. This act shall take effect immediately. 
 
 ACT OP APRIL 10, 1850. 
 
 (LAWS 1850, CHAP. 331, P. 726.) 
 
 An Act to provide for a final (Mstribution of the funds 
 held hy the comptroll&r^ helonging to the creditors of in- 
 solvent hcmks a/nd hcmkers. Passed April 10, 1850. 
 
 The People of the State of New YorTe, represented in 
 Senate am,d AssenMy, do enact as follows : 
 
 § 1. It shall be the duty of the comptroller to make a rinai dis- 
 tribution. 
 final distribution of the funds in his hands arising from the 
 
 sale of securities deposited with him under the act to 
 authorize the business of banking, by associations or in- 
 dividual bankers which have failed or may hereafter fail to 
 redeem their circulating notes, which distribution shall be 
 made in the manner herein prescribed. At the expira- 
 tion of six years after the first sale made by the comp- 
 troller, of the securities of any such insolvent banking as- 
 sociation or individual banker, the comptroller shall issue 
 a final notice to the holders of the circulating notes issued 
 by such banking association or individual banker, requir- 
 
 (62) See §35 of the act of 1829, p. 38, ante, and Note 14; also § 4 of 
 the act of May 14, 1840, p. 114, ante, and Note 51, pp. 114 — 122, ante. 
 
1V6 SPECIAL STATUTES APPLICABLE TO 
 
 ing the presentation of such notes within six naonths after 
 the date of said notice ; and any of snch circulating notes 
 which shall not be presented within the time thus specified 
 shall cease to he a charge or claim upon the funds of said 
 banking association or individual banker remaining in the 
 hands of the comptroller. Any of such circulating notes 
 which shall be presented within the period above limited, 
 shall be received and paid by the comptroller, at the same 
 rate which shall have been paid on like notes previously 
 presented ; and if all the notes of any banking association 
 or individual banker so presented shall have been re- 
 deemed at their par value, he shall pay to said associa- 
 tion or banker the residue of the fund remaining in his 
 hands belonging thereto. But in case said notes shall 
 not have been redeemed at par, then the holder shall be 
 entitled to a certificate showing the balance, if any, due 
 thereon. 
 
 § 2. At the expiration of the notice of six months re- 
 quired to be given, by the preceding section, the comp- 
 troller shall ascertain the amount of the residue of the fund 
 remaining in his hands belonging to the creditors of such 
 insolvent association or banker ; and after deducting 
 therefrom all expenses justly chargeable thereon, he shall 
 make a pro-rata distribution of the residue upon the 
 outstanding certificates given for the balance due to the 
 holders, of the circulating notes of said association or 
 banker which shall have been redeemed in part ; and it 
 shall be the duty of the comptroller to issue a notice to 
 the holders of such certificates, stating the rate or amount 
 payable thereon, and requiring said holders to present the 
 same within six months after the date of said notice ; and 
 any of said certificates which shall not be presented with- 
 
BANKING CORPORATIONS. 177 
 
 in the time thus specified shall cease to he a charge or 
 claim upon the residuary fund in the hands of the comp- 
 troller. 
 
 § 3. After making the final distribution directed in the unclaimed 
 
 fond. 
 
 last preceding section, if any portion of said fund shall re- 
 main unclaimed, the same shall be deposited in the treas- 
 ury, and applied towards paying the ordinary expenses of 
 the free banking department. 
 
 § 4. The notice required to be given by this act to the Notice. 
 creditors of insolvent banking associations or individual 
 banker^ shall be published at least six weeks, in one or 
 more newspapers which the comptroller shall deem best 
 calculated to inform such creditors ; and the cost of such 
 publication shall be defrayed out of the fund to which said 
 notice shall refer. 
 
 § 5. This act shall take effect immediately. 
 
 ACT OP MARCH 29, 1851. 
 
 (LAWS 1861, CHAP. 68. P.^S.) 
 
 An Act to amend the act entitled "An act to authorize 
 the business of banking" passed May 26th, 1841. 
 
 Passed Ma/rch 29, 1851. 
 
 The People of the State of New York represented in 
 Senate amd Assemih/, do enact as follows : 
 
 § 1. Section nine of chapter three hundred and nine- 
 teen, laiws of eighteen hundred and forty-one, being an act 
 to amend the act entitled " An act to authorize' the busi- 
 12 
 
178 SPECIAL STATUTES APPLICABLE TO 
 
 mess of "banking," passed May 26, 1841, is amended so as 
 to read as follows : 
 securittes 8 9. Such association or indi\ddual banker, after hav- 
 
 when to be- 
 
 by'tiiT* "^ i°g complied with the provisions of the preceding section, 
 oomp ro er. ^^^ after having given notice in tte State paper for two 
 years, and also for the same length of time in at least one 
 newspaper printed in the county where the said associa- 
 tion or bank fihall have been located, stating that all cir- 
 culating notes issued by such association or bank are 
 required to be presented to the comptroller for payment 
 within two years from the date of such notice, and on 
 giving a bond with three or more sureties, which bond 
 shall be satisfactory to the comptroller, conditioned for 
 the prompt redemption whenever presented within six 
 years from its date -of all outstanding notes of such associ- 
 ation or individual banker, shall then be entitled to re- 
 iceive from the icomptroller all other securities which he 
 may bold for the payment of any unredeemed notes of the 
 said association or bank. 
 
 ACT or APRIL 12th, 1851. 
 
 (LAWS 1851, CHAP. 164, P. 309.) 
 
 An Act to organize a Bcmk Department. Passed April 
 12, 1851, " three-fifths levng present.''^ 
 
 The People of the State of New Yorle, represented in 
 Senate amd AssemMy, do enact as follows : 
 
 Bank de- § 1. There is hereby established a separate and distinct 
 
 partmeut. 
 
 department which shall be charged with the execution of 
 the laws heretofore passed, or that may be hereafter passed 
 
BANKING CORPORATIONS. 179 
 
 in relation to the banks whicli are subject to the act to 
 create a fund for the benefit of the creditors of certain 
 moneyed corporations, and for other purposes, passed April 
 2, 1829, or in relation to banking associations and indi- 
 vidual bankers, formed or transacting business under the 
 act to authorize the business of banking, passed April 18, 
 1838, and the several acts in addition to or amendatory 
 thereof. 
 
 § 2. The chief ofiicer of the said department shall be superin- 
 
 tendent. 
 
 denominated the superintendent of the banking depart- 
 ment. He shall be appointed by the governor, by and 
 with the advice and consent of the senate, and shall hold 
 his office for the term of three years. He shall receive an sbi^^. 
 annual salary of two thousand five hundred dollars, to be 
 paid quarterly, in the first instance out of the treasury on 
 the warrant of the comptroller. He shall employ from 
 time to time the necessary clerks to discharge such duties 
 as he shall assign them, whose compensation shall be paid 
 to them monthly on his certificate, and upon the warrant 
 of the comptroller in the first instance out of the treasury ; 
 he shall appoint one of the said clerks to be his deputy, his deputy. 
 who shall possess the powers and perform the duties at- 
 tached by law to the office of the principal during a va- 
 cancy in such' office, and during the absence or inability of 
 his principal. Within fifteen days from the time of notice 
 of their appointments respectively, the superintendent and 
 his deputy shall take and subscribe the oath of office pre- office, 
 scribed by the constitution, and file tie same in the office 
 of the secretary of state, and the said officers shall be in 
 all respects subject to the provisions of the sixth title of 
 chapter five of the first part of the Revised Statutes, so far 
 as the same may be applicable. And the said superin- 
 
ent. 
 
 180 SPECIAL STATUTES APPLICABLE TO 
 
 tendent of the banking departmeAt shall give to the people 
 ^™*- of this State a bond in the penalty of fifty thousand dol- 
 lars with two sureties to be approved by the comptroller 
 and treasurer of this: State, conditioned for the faithful dis- 
 charge of the duties of his office, and the said superintend- 
 ent shall not, either directly or indirectly, be interested in 
 any bank or banking association, or as an individual 
 banker. 
 s/°rTntoid' § ^- '^® superintendent of the banking department 
 shall possess all the powers, perform all the duties, and be 
 subject to all the obligations and penalties now conferred 
 by law upon the comptroller of this State, or to which the 
 comptroller is subject in relation to banks, incorporated 
 and banking associations formed, and bankers transacting 
 business under the laws specified in the first section of this 
 act, and the said laws and all acts amendatory thereof, or 
 in addition thereto, are hereby modified and amended, so 
 that every power and duty thereby conferred on the comp- 
 troller, shall from and after the appointment of such 
 superintendent, be transferred to and conferred upon the 
 said superintendent subject to the modifications contained 
 in this act. 
 Seal. § 4. The said superintendent with the approval of the 
 
 governor, shall devise a seal with suitable inscriptions for 
 his office, a description of which with a certificate of ap- 
 proval by the governor shall be filed in the office of the 
 secretary of the State with an impression thereof, which 
 shall thereupon be and become the seal of officie of the 
 superintendent of the banking department, and the same 
 may be renewed whenever necessary. Every certificate, 
 assignment, and conveyance executed by the said superin- 
 tendent in pursuance of any authority conferred ou him 
 
BANKING CORPORATIONS. 181 
 
 by law, and sealed with his said seal of office shall be re- 
 ceived in evidence, and may be recorded in the proper re- 
 cording offices in the same manner, and with the like effect 
 as a deed regularly acknowledged or proved before an 
 officer authorized by law to take the proof or acknowledg- 
 ment of deeds, and all copies of papers in the office of 
 the said superintendent certified by him, and authenticated 
 by the said seal, shall in all cases be evidence equally, and 
 in like manner as the original. An impression of such 
 seal directly on paper shall be as valid as if made on a 
 wafer or wax. 
 
 § 5. All plates for bank bills deposited with the comp- Papers, 
 
 ^ bills, &e. to 
 
 troUer, all papers for bills, all securities, stobks, honds^^^^l™^^-^^, 
 and mortgages, and all other papers whatever in the comp- ent°'°''* 
 troUer's office relating to the business of the banking de- 
 partment, shall on demand be delivered and transferred to 
 the superintendent thereof, and be and remain in his 
 charge and custody. 
 
 § 6. There shall be assigned to the said superintendent Eoomsand 
 by the trustees of the State hall, suitable rooms therein 
 for conducting the business of the said department, and 
 the said superintendent shall from time to time furnish 
 the necessary furniture, stationery, fuel, lights, and other 
 proper conveniences for the transaction of the said 
 business ; the expense of which shall be paid on the cer- 
 tificate of the superintendent, and the warrant of the 
 comptroller in the first instance out of the treasury. 
 
 § T. All the expenses incurred in and about the con- Expenses 
 
 how oefray- 
 
 ducting the business of the said department, including the '*■ 
 salary of said superintendent and his clerks, shall be de- 
 frayed and paid by the incorporated banks, banking asso- 
 ciations, and bankers in whose behalf they are incurred. 
 
182 SPECIAL STATUTES APPLICABLE TO 
 
 The expenses incurred, and services performed, specially 
 for any incorporated bank, banking association, or banker, 
 including tlie delivery of new bank bills for sucb as may 
 be returned, and the destruction of the latter, shall be 
 charged to such incorporated bank, banking associations, 
 or banker, and all other expenses of the said department, 
 shall be charged to the said incorporated banks, banking 
 associations and bankers, in such proportions as the said 
 superintendent shall deem just and reasonable. If such 
 charges are not paid after due notice, the superintendent 
 may apply the dividends on any stock, or the interest on 
 any bonds and mortgages in his hands deposited , by the 
 bank, banking association, or banker, so neglecting; to 
 make the payment of such , charges with interest at the 
 rate of seven per cent. ; and the moneys so received by the 
 said superintendent on account of such charges, shall be 
 deposited and paid by him into the treasury of this State, 
 to reimburse all sums advanced from the treasury for such 
 expenses ; and in case of there being no stocks, bonds or 
 mortgages in the bank department 'deposited by such 
 bank, association, or banker, then the said superintendent 
 may maintain an action in his name of office against the 
 delinquent bank, association, or banks, for the recovery of 
 such charges, and the sums collected therein shall be paid 
 into the treasury, and neither the said superintendent nor 
 any clerk or person employed in his office shall take or 
 receive directly or indirectly, any compensation or pay for 
 any services or extra services rendered in the banking de- 
 partment, other than the compensation allowed by law ; 
 and any person violating this provision, shall be deemed 
 guilty of a misdemeanor. 
 §uof § 8_ TJie provisions of the fourteenth section of the 
 
BANKING CORPORATIONS. 183 
 
 "Act to authorize the business of banking," passed April j»'nfAprii 
 eighteenth, eighteen hundred and thirty-eight, are hereby- 
 extended to the said superintendent and the officers and 
 clerks employed in the bank department. See § 14, p. 91, 
 ante. 
 
 § 9. Instead of the comptroller, secretary of state, and ^a^^f^j °' 
 treasurer, it shall be the duty of the superintendent of the 
 bank department to fix upon and determine a day in re- 
 spect to which the reports of incorporated banks, banking 
 associations and individual bankers, shall be made as pro- 
 vided in chapter four hundred and nineteen of the Session 
 Laws of one thousand eight hundred and forty-seven ; and 
 the said superintendent shall, at least once in each quarter 
 of a year, fix and designate some Saturday in each preced- 
 ing quarter in respect to which the said reports shall be 
 made, and shall give notice thereof in the manner pre- 
 scribed in the said chapter, four hundred and nineteen ; 
 and the said reports shall be made to the said superintend- 
 ent as directed in the said chapter, and all willful false 
 swearing in respect to such reports shall be deemed per- 
 jury, and subject to the punishments prescribed by law for 
 that ofience. In case of neglect to make such report 
 within one month from the time required, it shall be the 
 duty of the superintendent to cause the books, papers, and 
 afi"airs of the bank, association or banker, so neglecting, to 
 be examined as directed by the third section of the said 
 chapter four hundred and nineteen; and the reasonable 
 expenses of such examination to be certified by the said 
 superintendent shall be charged to the bank, association, 
 or banker so neglecting, and shall be collected in the man- 
 ner herein prescribed in respect to other charges against 
 them. 
 
184: SPECIAIi' STATUTES APPLICABLE TO 
 
 how'to'^''' § ^^- '^^ provisions of the second section of the act 
 '"'^ chapter three hundred and forty of the laws of eighteen 
 
 hundred and forty-eight, amending the "Act authorizing 
 the business of banking," shall extend and be applicable 
 to banking associations and individual bankers organized 
 before the passage of the said chapter three hundred and 
 forty, as well as to those organized subsequently ; but no 
 one mortgage of lands shall hereafter be received as secu- 
 rity for circulating bills to an amount greater than five 
 thousand dollars ; and any mortgage heretofore received 
 or hereafter received fpr circulating bills, may be held by 
 the superintendent of the banking department for the full 
 nominal amount thereof notwithstanding a less amount of 
 bills may have been or shall be delivered upon the deposit 
 of such mortgage, and the whole nominal amount of such 
 mortgage may be collected by any purchaser thereof in 
 case it shall be necessary to. sell such mortgage at its 
 nominal amount to meet the liabilities of the banking 
 association or banker by whom it waa deposited ; but the 
 same may be sold as for the amount of bills delivered upon 
 its deposit when there is no deficiency of other means to 
 meet the said liabilities. 
 ^Annual re- g jj_ j^ gj^^^ ^^ ^^^ ^^^^ ^f ^.j^^ Superintendent of the 
 
 banking department to report annually to the legislature, 
 at the commencement of its first session : 
 
 1. A summary of the state and condition of every in- 
 corporated bank, banking association and individual banker, 
 from whom 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, 
 specifying particularly the amount of circulating notes 
 
BANKING CORPORATIONS. 
 
 185 
 
 outstanding, and the total amount of means and resources, 
 specifying the amount of specie held by them at the times 
 of their several returns, and such other information in re- 
 lation to said banks, associations and bankers, as in his 
 judgment may be useful : 
 
 2. A statement of the banking associations and bankers 
 whose business has been closed during the year, with the 
 amount of their circulation redeemed and the rate of such 
 redemption per cent, and the amount outstanding ; 
 
 8. To suggest any amendment to the laws relative to 
 banking by which the system may be improved and the 
 security of bill-holders and depositors may be increased : 
 
 4. To report the names and compensation of the clerks 
 employed by him, and the whole amount of the expenses 
 of the department during the year, and the amount if any 
 for which the treasury sliall be in advance : such report 
 shall be made by or before the last day of the year, and 
 the usual number of copies for the use of the legislature, 
 and two hundred and fifty copies for the use of the depart- 
 ment, shall be printed in readiness for distribution on the 
 meeting of the legislature by the printer employed to print 
 legislative documents, the expense of which shall be 
 charged among the general expenses of the department, 
 and collected as herein provided. 
 
 § 12. This act shall take effect immediately. 
 
186 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OP APRIL 17, 1851. 
 
 (LAWS 1861, CHAP. 20S, P. 315.) 
 
 An Act to amend the s&oe/ral acts relating to Incorporated 
 JBamJes, Banhmg Associations, amd Individual Ba/nk- 
 errs. Passed April 17, 1851. 
 
 the People of the State of New York represented in 
 Senate cmd Assembly, do enact as follows : 
 
 offlossof § 1- Section one of the act relating to the redemption 
 of bank notes, passed May 4th, 1840, is hereby amended 
 so as to read as follows : 
 
 § 1. Every moneyed incorporation in this State having 
 banking powers, and issuing bills or notes of circulation, 
 and every banking asspciation and individual banker 
 carrying on banking business under the act to author- 
 ize the business of banking, except those whose place of 
 business is in the cities of New York, Albany,, Brooklyn, 
 or Troy, shall, on or before the first day of July next, 
 appoint an agent, who shall keep an office in the city of 
 New York, Albany, or Troy, for the redemption of all cir- 
 culating notes issued by said corporation, banking associa- 
 tion, or individual banker, which shall be presented to 
 such agent for payment or redemption. 
 
 § 2. Section four of the said act is hereby amended so 
 as to read as follows : 
 
 ■feaie of § 4. It shall be the duty of every such corporation, 
 
 banking association, and individual banker out of the 
 cities of New York, Albany, Brooklyn, and Troy, to re- 
 
BANKING CORPORATIONS. 187 
 
 deem and pay on demand all circulating notes issued by 
 such corporation, banking association, or individual banker, 
 presented for redemption or payment at the office of their 
 said agent, in the city of New York, Albany, or, Troy, at a 
 rate of discount not exceeding one quarter of one per cent. 
 
 § 3. Whenever any action shall be brought against Demand 
 
 ° •' b b and protest 
 
 any incorporated bank, banking association, or individual ^en™^*^' 
 banker, for the recovery of the amount due on any circu- 
 lating note or notes registered in the comptroller's office, 
 the payment of which shall have been demanded at the 
 banking house, or usual place of business of the defendant, 
 if it shall appear on the trial or otherwise, to the court in 
 which such suit is brought, that at the time such demand 
 of payment was made, the defendant offered in payment 
 the circulating note or notes issued by any banking asso- 
 ciation or banker, other than the defendant, which were at 
 the time at par in the city of New York, Albany, or Troy, 
 or a draft or drafts on any bank, association, or banker in 
 the city of New York, Albany, or Troy, or either of the 
 same, for the amount of the circulating note or notes so 
 presented, with an affidavit, if required, that such draft or 
 drafts is or are available to their full amount, to insure the 
 immediate payment thereof on presentation, or in case 
 any action shall be commenced upon such note or notes 
 before the expiration of fifteen days from the time of the 
 first demand thereof, as above mentioned; and provided 
 such bank, association, or individual banker shall be ready 
 and prepared to redeem such note or notes in the lawful 
 money of the TTnited States, at the counter or ordinary 
 place of business of such bank, association, or banker, at 
 the expiration of said fifteen days fi-om the time of the first 
 demand thereof, with interest, then in either case, the 
 
188 SPECIAL STATUTES APPLICABLE TO 
 
 plaintiff in such action shall not recover any costs, fees, or 
 disbursements whatever against the defendants, and shall 
 be entitled to recover no more than seven per cent, inter- 
 est, in lieu of all damages for the non-payment of the said 
 circulating note or notes ; but no interest shall be recov- 
 ered upon such note or notes in any action, unless the 
 plaintiff or holder thereof shall have again presented the 
 same for payment, at the banking house or ordinary place 
 of business of such defendant, on or after the fifteenth day 
 after such first demand, and before the twentieth day, and 
 the defendant shall have neglected and refused to pay the 
 same with interest to that time, as aforesaid. And if such 
 bank, association, or banker, at the time of the first pre- 
 sentation of said circulating note or notes, shall have of- 
 fered to pay current bank notes or drafts, or both, or either, 
 in the manner above provided, and shall at the time of 
 the second presentation, pay or tender the amount of such 
 note or notes thus demanded, in the lawful money of the 
 United States, at their banking house or ordinary place of 
 business, then such bank, association, or b&nker shall not 
 be deemed to have suspended or refused specie payment, 
 within the meaning of any statutes authorizing proceedings 
 for the dissolution of the charter of such bank, or authoriz- 
 ing proceedings to restrain or enjoin the ordinary business 
 of such bank, association,, or banker, nor shall such bank, 
 association, or banker, in such case, be liable to any other 
 or greater damages for the non-payment of such circulating 
 note or notes, than as above provided, any provision in 
 the charter of any bank, or any other statute to the con- 
 trary notwithstanding. 
 Notes how § 4. The fourth section of chapter two hundred and 
 
 protested. 
 
 sixty of the laws of eighteen hundred and thirty-eight as 
 
BANKING CORPORATIONS. 189 
 
 amended by the first section of chapter forty-six of the 
 laws of eighteen hundred and forty-oue, is hereby further 
 amended so that it shall read as follows: In case the 
 maker or makers of any such circulating note or notes, 
 countersigned and registered as aforesaid, shall at any 
 time hereafter, on lawful demand during the usual hours 
 of busiifess, between the hours of ten and three o'clock, 
 at the place where such note or notes is or are payable, 
 fail or refuse to redeem such note or notes in the lawful 
 money of the United States, tlje holder of such note or 
 notes making such demand, may cause the same to be 
 protested, in one package, for non-payment, by a notary 
 public, under his seal of oflSce, in the usual manner, unless 
 the president, cashier or teller of such bank shall offer to 
 waive demand and notice of the protest, and shall in pur- 
 suance of such offer, make, sign and deliver to the party 
 making such demand, an admission- in writing, stating the 
 time of the demand, the amoimt demanded, and the facts 
 of the non-payment thereof, and the comptroller, on re- 
 ceiving and filing in his office such admission or protest, 
 together with such note or notes, shall forthwith give 
 notice in writing to the maker or makers of snch note or 
 notes to pay the same ; and if he or they shall omit to do 
 so for fifteen days after such notice, the comptroller shall 
 immediately thereupon (unless he shall be satisfied that 
 there is a good and legal defence against the payment of 
 such note or notes) give notice in the State paper, that all 
 the circulating notes issued by such person or association 
 will be redeemed out of the trust funds in his hands for 
 that purpose, and the comptroller shall be required , to 
 apply the said trust funds belonging to the maker or 
 makers of such notes, to the payment pro rata, of all the 
 
190 SPECIAL STATUTES APPLICABLE TO 
 
 circulating notes put in circulation by the maker or 
 makers of such dishonored notes, pursuant to the provisions 
 of this act, and adopt such measures for the payment of 
 such notes, as will in his opinion most effectually prevent 
 loss to the holders thereof. 
 
 § 5. The twenty-ninth section of said chapter two hun- 
 dred and sixty of the laws of eighteen hundred anfl thirty- 
 eight, is hereby amended so as to read as follows ; 
 Damages 8 29. Such association or individual banker shall be 
 
 for non-pay- 
 
 '"''"• liable to pay the holder of every bill or note put in circu- 
 lation as money, the payment of which shall have been 
 demanded and refused, at the banking house or usual 
 place of business of such association or banker, damages 
 for non-payment thereof in lieu of interest at and after the 
 rate of seven per cent, per annum, from the time of such 
 refusal until the payment of such evidence of debt and 
 damages thereon. 
 ProTiso. § 6. Nothing contained in the third, fourth, and fifth 
 
 sections of this act, shall apply to cases where circulating 
 notes registered in the comptroller's office, shall be pre- 
 sented for payment to the agent of any incorporated bank, 
 banking association, or individual banker, appointed ac- 
 cording to the provisions of chapter two hundred and two 
 of the laws of eighteen hundred and forty, entitled "An 
 Act relating to the redemption of bank notes," nor to any 
 bank, banking association, or individual banker, for whom 
 there shall not be at the time an agent duly appointed as 
 prescribed in the said act ; nor to banks, associations, or 
 individual bankers, whose place of business is in either of 
 the cities of New York, Albany, Brooklyn, or Troy. 
 
BANKING COEPORATIONS. 191 
 
 ACT OF APRIL 16th, 1852. 
 
 ' (LAWS 1852, CHAP. 370, P. 684) 
 
 An Act to amend Section sixteen of Chapter nine of Title 
 two of Part one of the Revised Statutes. Passed April 
 
 16, 1852. 
 
 The People of the State of New Yorlc, represented in 
 Senate and Assemhly, do enact as follows : 
 
 % 1. Section sixteen of chapter nine of title two of part Amend- 
 one of the revised statutes is hereby amended by inserting 
 the words " or Banking Associations," immediately after 
 the words " safe incorporated moneyed institutions." 
 
 § 2. This act shall take effect immediately. 
 
 CONCURRENT RESOLUTIONS of March 4th, 
 
 1852. 
 
 (LAWS 1852, p. 781.) 
 
 In Senate. 
 OoNC0EEENT Eesolution. March 4, 1852. 
 
 Whereas, a large number of bank note plates of broken 
 banks', banks which have given notice of closing their busi- 
 ness, and plates that are not used belonging to different 
 banks are now in the bank department. 
 
 Therefore resolved, if the Assembly concur, that the 
 
192 SPECIAL STATUTES APPLICABLE TO 
 
 superintendent of tte banking department, be and he is 
 hereby authorized and directed to destroy the said plates 
 or cause the same to be done, and that hereafter whencTer 
 any bank, banking association or individual banker shall 
 fail, or any bank, banking association or individual banker 
 shall give notice of an intention to discontinue the busi- 
 ness of banking, it shall be the duty of the said superin- 
 tendent to destroy or cause to be destroyed all plates and 
 impressions belonging to such bank, banking association 
 or individual banker, and it shall be the duty of the said 
 superintendent to include in his annual report a statement 
 of all plates so destroyed as aforesaid. 
 
 By order of the Senate. 
 
 IRA P. BAENES, Clerk. 
 
 In Assembly. 
 April 16, 1852. 
 
 Resolved, That the Assembly do concur in the passage 
 of the foregoing resolutions. 
 
 By order of the Assembly, 
 
 EICHARD TJ. SHEEMAN, OUrTc. 
 
BANKING CORPORATIONS. 193 
 
 ACT OF APRIL 13th, 1853. 
 
 (LAWS 1853, CHAP. 223, P. 428.) 
 
 An Act to amend an aot entitled '■'■An Act concerning 
 foreign icmh nutes.^'' Passed Ap-il 13, 1853. 
 
 Amend- 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Section two of the act entitled "An act concerning 
 foreign bank notes," passed May 7, 1839, is hereby amend- ™™ ° "" 
 ed so as to read as follows : It shall not be lawful for any 
 incorporated banking institution within this State, or any 
 association or any individual or individuals, authorized to 
 carry on the business of banking by virtue of the act enti- 
 tled "An Act to authorize the business of banking," di- 
 rectly or indirectly, on .any pretence whatever, to procure 
 or receive, or to offer to receive, from any corporation, as- 
 sociation, person or persons whomsoever, any bank bill, or 
 note or other evidence of debt in the similitude of a bank 
 note, issued or purporting to bave been issued by any cor- 
 poration, association or individual situated or residing 
 without this State, at a greater rate of discount than is or 
 shall be at the time fixed by law for the redemption of the 
 bills of the banks of this State at their agencies ; nor shall 
 it be lawful for any banking institution, association, indi- 
 vidual or individuals, in the first part of this section men- 
 tioned, to issue, utter or circulate as money, or in any way, 
 directly or indirectly, to aid or assist in the issuing, utter- 
 ing or circulating as money, within this State, of any such 
 13 
 
194: SPECIAL STATUTES APPLICABLE TO 
 
 bank bill, note or other evidence of debt, issued or purport- 
 ing to have been issued by any corporation, association or 
 individual situate or residing without this State, or to pro- 
 cure or receive in any manner whatever any such bank 
 bill, note or evidence of debt, with intent to issue, utter or 
 circulate, or with intent to aid or assist in issuing, uttering 
 
 eianee, or circulating, the same as money within this State. ; but 
 nothing in this act contained shall be construed to prohibit 
 any bank or banking institution receiving and paying out 
 such foreign bank bills as they shall receive at par in the 
 ordinary course of their business ; and nothing in this sec- 
 tion contained shall prohibit the said banking institutions, 
 associations and individual bankers, in the first part of this 
 section mentioned, nor shall they be prohibited, from re- 
 ceiving foreign notes from their dealers and customers in 
 the regular and usual course of theip business, at a rate of 
 discount not exceeding that which is- or shall be at the 
 time fixed by law for the redemption of the bills of the 
 banks of this State at their agencies, or from obtaining from 
 the corporations, associations or individuals, by which or 
 by whom such foreign notes were made, the payment or 
 redemption thereof. 
 Eatesofin- | 2. It shall not be lawful for any person within this 
 
 discount. State to issue, utter or circulate as money, or in any way, 
 directly or indirectly, to aid or assist in the issuing, utter- 
 ing or circulating as money, within this State, of any bank 
 bill, note or other evidence of debt in the similitude of a 
 bank bill or note, issued or purporting to have been issued 
 by any corporation, association or individual situated or re- 
 siding without this State, which shall have been received 
 by such person at a greater rate of discount than is or 
 shall be at the time fixed by law for the redemption of the 
 
BANKING CORPORATIONS. 195 
 
 bills of the banks of this State at their agencies, or to pro- 
 cure or receive, in any manner whatsoever, or to offer to 
 receive any such bank bill, note or evidence of debt, at a 
 greater rate of discount than is or for the time shall be 
 fixed by law for the redemption of the bills of the banks 
 of this State at their agencies, with intent to issue, utter or 
 circulate, or with intent to aid or assist in issuing, uttering 
 or circulating, the same as money within this State ; but saving 
 nothing in this section contained shall prohibit any person 
 not authorized to carry on the business of banking within 
 this State, nor shall any such person be prohibited, from re- 
 ceiving foreign notes in the regular and usual course of 
 business, or from obtaining from the corporations, associa- 
 tions or individuals by which or by whom such foreign 
 notes were made, the payment or redemption thereof. 
 
 § 3. The penalties provided in section four of the act 
 hereby amended shall apply to any violation of this act. 
 
 § 4. This act shall take effect immediately. 
 
 Penalties. 
 
 ACT OP APRIL 15th, 1853. 
 
 (LAWS 1863, CHAP. 250, P. 539.) 
 
 An Act relating to Incorporated Banks, Ba/nkmg Associa- 
 tions, and Individual JBanJcers, located and doing iusi- 
 ness in the city of New York. Passed April 15, 1853. 
 
 The People of the State of New York, represented in 
 Senate and Assembly, do enact as follows: 
 
 § 1. In addition to the quarterly reports now required .^^^^^ ^^ 
 by law to be made to the superintendent of the banking de- ^''"^"''"'^ 
 
196 SPECIAL STATUTES APPLICABLE TO 
 
 partment, by incorporated banks, banking associations, or 
 individual bankers, in this State, every incorporated bank, 
 banking association or individual banker, located and doing 
 business in the city of New York, shall publish or cause 
 to be published on the morning of every Tuesday, in a 
 newspaper printed in said city, to be designated by the su- 
 perintendent, a statement, under the oath of the president 
 or cashier, showing the condition of the bank, banking as- 
 sociation or individual banker making such statement, on 
 the morning of each day of the week next preceding the 
 date of such statement, in respect to the following items 
 and particulars, to wit : average amount of loans and dis- 
 counts, specie, deposits and circulation. 
 Foifeitare. § 2. Such statement shall be published at the expense 
 of the bank, banking association or individual banker 
 making the same ; and if any bank, banking association 
 or individual banker shall refuse or neglect to make the 
 statement required in the first section of this act for two 
 successive Tuesdays, it shall forfeit its charter (if an incor- 
 porated bank), and its privileges as a banking association 
 or individual banker ; and every such bank, banking asso- 
 ciation or individual banker may be proceeded against, and 
 its affairs closed, in any manner now required by law in 
 case of an insolvent bank or banking association. The 
 terms "banking association" and " individual banker," as 
 used in this act, shall be deemed to apply only to such 
 banking associations and individual bankers as are or may 
 be organized under the " Act of April 18, 1838," and the 
 several amendments thereto. 
 
 § 3. This act shall take effect on the first day of August, 
 one thousand eight hundred and fifty-three. 
 
BANKING CORPORATIONS. 197 
 
 ACT OF APRIL 3d, 1854. 
 
 (LAWS 1864, CHAP. 138, P. 321.) 
 
 An Act for the withdrawal of the Circulating Bills of 
 incorporated hamks, whose cha/rters have expired or may 
 hereafter expire. Passed April 3, 1854. 
 
 The People of the State of New York, represented in 
 Senate and Asserribly, do enact as follows : 
 
 § 1. The circulating notes issued by any incoi-porated ^^^"1,'^'^'^^^ 
 bank, whose charter has expired or shall hereafter expire, ^°"'^°^"^' 
 shall be withdrawn from circulation by the trustees or legal 
 representatives thereof, and returned to the superintendent 
 of the bank department, to be destroyed, as follows : 
 
 The notes of banks whose charters have already expired, 
 one third part of its circulating notes in one year, one 
 other third part within two years, and the remaining one- 
 third part within three years, from the time this act shall 
 take eflfect. 
 
 And the circulating notes of all banks whose charters 
 shall hereafter expire, as follows : 
 
 One third part in one year, one other one-third part 
 thereof in two years, and the remaining one-third in three 
 years, from the time their charters shall respectively expire. 
 
 But this section shall not prevent any person, individual Proviso, 
 banker or banking association from presenting to the trust- 
 ees or legal representatives of such expired incorporated 
 bank such circulating notes for payment at any time. And 
 nothing contained in this act shall in any manner affect or 
 impair the duties, liabilities or obligations of the trustees, 
 
198 SPECIAL STATUTES APPLICABLE TO 
 
 directors or stockholders of such expired incorporated 
 banks, or the rights or remedies of any of the holders of 
 such circulating notes, 
 tobere^-""' § 2. Every banking association transformed from an 
 incorporated bank, and the officers and agents of every 
 such association, and the trustees and agents of all such 
 expired incorporated banks, shall be prohibited from issu- 
 ing, paying out, or in any way, directly or indirectly, cir- 
 culating the notes of any incorporated bank whose charter 
 has expired, or shall hereafter expire, after the time limited 
 by the first section of this act for its withdrawal from cir- 
 culation. And every such association, officer, agent or 
 trustee, that shall offend against any of the provisions of 
 this act, shall be liable to the penalties prescribed by law 
 for issuing bills or promissory notes, for the purpose of put- 
 ting them into circulation as money, without being author- 
 ized by law. 
 Security § 3. And iu casc of auv failure to return such circula- 
 
 for notes not " *' 
 
 returned. ^^^^ notcs to the Superintendent of the bank department to 
 be destroyed, as provided for in the first section of this act, 
 the said trustees or legal representative of such expired in- 
 corporated bank shall deposit with such superintendent an 
 amount in cash, which shall be equal to the circulating 
 notes required to be returned as aforesaid, to be held as 
 security until the said circulating notes are returned to said 
 superintendent to be destroyed, except as to the last one- 
 third part of said circulating notes, for which no deposit of 
 money shall be required. But said last one-third part of 
 said circulating notes shall be withdrawn from circulation 
 and destroyed, as far as practicable, as provided for in the 
 first section of this act. 
 
 And if any trustee or legal representative of such ex- 
 
BANKING CORPORATIONS. 199 
 
 pired bank shall neglect or refuse to comply with the pro- 
 visions of this act, it shall be the duty of such superintend- 
 ent to proceed to wind up the affairs of such expired bank 
 in the same manner as if it were an insolvent corporation. 
 § 4. This act shall take effect on the first day of May 
 next. 
 
 ACT or APRIL 10th, 1854. 
 
 (LAWS 1854, CHAP. 185, P. 442.) 
 
 An Act directing the copies and certificates of association 
 of iamks to ie transferred from the Secretary's office to 
 the BamJsing Depa/rtment. Passed April 10, 1854. 
 
 The People of the State of New Yorh, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. All copies of certificates of association under and 
 by virtue of the general free banking law and the acts 
 amendatory thereof, filed in the office of the secretary of 
 state, shall be transferred to the banking department ; 
 and hereafter all copies of certificates of association, 
 formed pursuant to such laws, shall be filed in the office of 
 the superintendent of the banking department, who shall 
 furnisb, on payment of the same fees now chargeable in 
 the secretary's office, all certificates in relation thereto as 
 if the same had been originally filed in his office. All the 
 powers conferred upon or duties required by any law of 
 this State to be performed by the secretary of state, in re- 
 lation to banking associations, shall hereafter be performed 
 by the superintendent of the banking department. 
 
 § 2. This Act shall take effect immediately. 
 
200 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OP APRIL 15th, 1854. 
 
 (LAWS 1854, CHAP. 242, P. 551.) 
 
 An Act amendatory of the act entitled ^'•An Act authori- 
 zing the 'business of hamMng" passed April 18, 1838, 
 and the acts amending the same. Passed April 15, 
 1854. 
 
 The People of tlie State of New YorTc, represented in Sen- 
 ate and Assembly, do enact as follows : 
 
 Examining § 1. The pcrsoii designated by the superintendent of 
 the bank department, under the existing laws, to examine 
 the books, papers, and affairs of any bank, banking associ- 
 ation or individual banker, shall take and file in the office 
 of the clerk of the county where he resides, the oath of 
 office prescribed in the constitution, and he shall have au- 
 thority to examine on oath any individual banker, and the 
 officers, agents, partners, and clerks of such banker, and 
 of any bank or banking association, touching the matters 
 which he shall be directed to inquire into ; and any willfiil 
 false swearing in any such examination shall be perjury. 
 And when directed by the said superintendent, such per- 
 son shall inquire whether any banker transacts the busi- 
 ness of banking at the city, town, or village where the cir- 
 culating notes of such individual banker purport to have 
 been issued and dated ; and whether any bank or banking 
 association transacts the business of banking at the place 
 designated in its charter or certificate of association ; and 
 whether such banking business is conducted in the manner 
 prescribed by law. 
 
BANKING CORPORATIONS. 201 
 
 § 2. Such person shall have power to summon, in writ- M»y™™;_ 
 ing under his hand, any inhabitant of the county in which before wm*^ 
 he may be conducting the inquiry to appear before Rim 
 and testify in relation to the same. If the party so sum- 
 moned shall refuse or neglect to appear at the time and 
 place specified in such summons, or having appeared shall 
 refuse to be sworn, or shall refuse to answer any pertinent 
 and legal question, he shall forfeit the siim of one hundred 
 dollars to be sued for and recovered, with costs, by the 
 superintendent of the bank department, in his name of 
 office, and to be paid into the treasury to defray the gene- 
 ral expenses of the bank department ; and upon such ne- 
 glect or refusal being duly proved by the person conduct- 
 ing such inquiry, before any justice of the supreme court, 
 if such justice be satisfied that the party so neglecting or 
 refusing ought to be examined touching the matters of 
 such inquiry, he shall by warrant commit such party to 
 the jail of the county, there to remain in close custody 
 until he shall submit to appear, or testify, or answer, as 
 the case may require. 
 
 § 3. If it shall appear from such examination and unsouna 
 
 banks and 
 
 report that any bank, banking association, or individual ^™""s- 
 banker is in an unsound or unsafe condition to do banking 
 business, or that the business of banking is not transacted 
 by such bank, association, or banker at the place where 
 said circulating notes are dated and purport to be issued, 
 or is not transacted in the manner prescribed by law, it 
 shall be the duty of the superintendent to withhold and 
 refuse to issue or deliver any registered notes to such bank, 
 association or banker, and to retain ' the interest on all se- 
 curities held in trust for such bank, association or banker 
 
202 SPECIAL STATUTES APPLICABLE TO 
 
 until such time as he shall be satisfied that such bank, as- 
 sociation, or banker is in a sound and safe condition to do 
 a bSnking business, and that the business of banking is 
 transacted by such bank, association, or banker at the 
 place where their circulating notes are dated and purport 
 to be issued, 
 of^eport""" § ^' Whenever the superintendent shall deem it proper, 
 a copy of any such report shall be published in the State 
 paper, and in at least two daily newspapers in the city of 
 New York. The reasonable costs and expenses of every 
 such examination and publication shall be paid by the 
 bank, association, or banker whose affairs are examined, 
 in the manner provided in the "Act to organize a bank 
 department." 
 befiM''by'° § ^- '^^® sccond and third sections of chapter two hun- 
 bankeS* drcd and eighty-one of the Laws of eighteen hundred and 
 forty-four are hereby extended and declared to be applica- 
 ble to every individual banker who is now doing business or 
 shall hereafter do business under the general banking laws 
 of this State, or who has received or hereafter shall receive 
 circulating notes under the said laws ; and the certificate 
 required by the third section of the said act shall be filed 
 by every individual banker now doing business as afore- 
 said, and who has not already filed the same, within sixty 
 days after this act shall take effect,.and by every individual 
 banker who shall hereafter desire to obtain circulating 
 notes under the general banking laws of this State, previ- 
 ous to the delivery of any such notes to him. In ca,se of a 
 notice being filed with the superintendent of the bank 
 department, of any change of residence of any individual 
 banker, and of the place of doing his business, the super- 
 
BANKING CORPORATIONS. 203 
 
 intendent shall publish a notice thereof in the State paper, 
 and in such other newspapers as he shall direct, at the ex- 
 pense of such banker. 
 
 § 6. When it shall appear by the return of any individ-j^i^*!™?'^^^. 
 ual banker, or by the report of any person designated byJointiyHaWe. 
 the superintendent of the bank department, that any per- 
 son is interested with such individual banker, directly or 
 indirectly, in the securities deposited by him for the pur- 
 pose of obtaining circulating notes, or in the business of 
 circulating such notes, or in the benefits and advantages 
 thereof, the said superintendent shall withhold all interest 
 and dividends on the securities deposited with him by such 
 banker, and all circulating notes from him, until such 
 banker shall have filed in the bank department a certifi- 
 cate signed by every person so returned or reported as 
 interested as aforesaid, and acknowledged by him in the 
 manner prescribed by law to entitle deeds of land to be 
 recorded, stating that such person is interested with such 
 individual banker in the circulating notes obtained or to 
 be obtained by him, and in the benefits and advantages of 
 circulating the same ; which certificate shall be evidence 
 in all courts and places that the person so signing and ac- 
 knowledging the same is a general partner with the said 
 original banker in the business of banking, and as such is 
 liable with him individually for all the debts and obliga- 
 tions created or made by such individual banker in the 
 said business. 
 
 § 7. In the publication of the abstracts of the quarterly Abstracts. 
 returns of individual bankers, the superintendent of the 
 bank department shall arrange them in a separate class, 
 and shall specify the name and place of business of each, 
 and the names and residence of the general partners. 
 
204 SPECIAL STATUTES APPLICABLE TO 
 
 sj^ed^''"'^ §8. The circulating notes delivered to individual bank- 
 ers shall express only the individual liability of the banker 
 issuing them, and shall be signed by him only, and not by 
 any attorney or agent ; and any banker or "person acting 
 as his attorney or agent, who shall violate any provision 
 of this section, shall be liable to a penalty of one hundred 
 dollars for each offence, to be recovered in the name of 
 the people of this State, with costs, and to be paid into the 
 treasury to defray the general expenses of the bank depart- 
 ment. 
 
 Sale of bank- R 9. It shall uot bc lawful for any individual banker, 
 
 ing business *J tj i 
 
 forbidden, jj^ying circulating notes obtained under the general bank- 
 ing laws of this State, to sell or transfer the business of 
 banking, upon the securities deposited by him, to any per- 
 son or persons ; and until such, business shall be closed by 
 the return of the circulating notes issued, and the delivery 
 of the securities deposited, the same shall be conducted 
 only in the name of the individual banker by whom the 
 said securities were deposited, and he shall continue indi- 
 vidually liable for the payment of all circulating notes 
 delivered to him. 
 
BANKING CORPORATIONS. 205 
 
 ACT OF MARCH 15th, 1855. 
 
 (LAWS 1855, CHAP. 69, P. 101.) 
 
 An Act to amend the act entitled " An Act to enforce the 
 responsibility of the Stockholders m certain ha/nMng in- 
 corporations and associations, as prescribed lyy the Con- 
 stitution, and to provide for the prompt payment of 
 demands against such corporations and associations,^^ 
 passed April 5, 1849. Passed March 15, 1855. 
 
 The People of the State of New YorTc, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. The eleventh section of the act, entitled, " An Act 
 to enforce the responsibility of stockholders in certain 
 banking incorporations and associations, as prescribed by 
 the constitution, and to provide for the prompt payment of 
 demands against such incorporations and associations," 
 passed April fifth, eighteen hundred and forty-nine, shall 
 be modified and amended so as to read as follows : 
 
 Every receiver appointed according to this act, after 
 giving security, shall take into his possession all the prop- 
 erty, effects, books, papers, accounts and demands against 
 such corporation or association ; including the securities, if 
 any, which may have been deposited with the superin- 
 tendent belonging to such corporation or association, 
 excepting therefrom so much of the same as may be 
 necessary to enable the superintendent of the banking 
 department to pay and redeem the outstanding circulation 
 of such corporation or association. He shall immediately 
 give notice, by publication in such newspapers as the 
 
206 SPECIAL STATUTES APPLICABLE TO 
 
 superintendent or any justice of the supreme court shall 
 direct, requiring the creditors of such corporation or asso- 
 ciation to exhibit and establish their demands before him 
 within thirty days from the time of his appointment. 
 Such receiver sball possess all the powers of receivers of 
 corporations under the third article of title four of chapter 
 eight and part third of the Eevised Statutes, in respect to 
 the settlement of all demands exhibited to them, and in 
 all other respectSj except as herein otherwise provided; 
 and all such powers now conferred by law on trustees of 
 insolvent debtors as may be applicable ; and shall be sub- 
 ject to all the duties and obligations by law imposed on 
 receivers of corporations, except as herein modified. 
 § 2. This act shall take effect immediately. 
 
 ACT OP MARCH 27th, 1855. 
 
 (LAWS 1865, CHAP. 93, P. 137.) 
 
 An Act repealing the act prohibitory of the circulation of 
 the nils of ianJcs not cha/rtered hy the la/ws of this 
 State, under the denormnation of five dollars. Passed 
 March 27, 1855. 
 
 The People of the State of New YorTc, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. The act entitled "An Act to prohibit the circula- 
 tion of the bills of banks not chartered by the laws of this 
 State, under the denomination of five dollars," passed 
 April twentieth, eighteen hundred and thirty, is hereby 
 repealed. 
 
 § 2. This act shall take effect immediately. 
 
BANKING CORPORATIONS. 207 
 
 ACT OF APRIL Bth, 1855. 
 
 (LAWS 1855, CHAP. 155, P. 236.) 
 
 An Act to provide for the punishment of the fraudulent 
 and unauthorized issue cmd transfer of the stock and 
 ionds of corporations and joint stocJc companies. 
 Passed April 5, 1855. 
 
 The People of the State of New York, represented in 
 Senate and Assembly , do enact as follows : 
 
 § 1. Every officer and every agent of any incorporated 
 company or corporation, formed or existing under or by 
 virtue of the laws of any of the United States, who shall 
 within this State willfully and designedly sign or procure 
 to be signed, with intent to issue, sell, or pledge, or to 
 cause to be issued, sold, or pledged, or shall willfully and 
 designedly issue, sell, or pledge, or cause to be issued, 
 sold, or pledged, any false or fraudulent certificate, or 
 other evidence of the ownership or transfer of any share 
 or shares of the capital stock of such incorporated com- 
 pany or corporation, or any false or fraudulent bond, or 
 evidence of debt of such incorporated company or corpo- 
 ration, or any certificate or other evidence of the owner- 
 ship or transfer of any share or shares in such incorporated 
 company or corporation, or any instrument purporting to 
 be a certificate or other evidence of ownership or transfer 
 of such share or shares, or purporting to be such bond or 
 evidence of debt, the signing, issuing, selling, or pledging 
 of which shall not be authorized by the charter and by- 
 laws of such incorporated company or incorporation, or 
 
208 SPECIAL STATUTES APPLICABLE TO 
 
 some amendment thereof, shall be deemed guilty of a fel- 
 ony, and shall be punished by a fine not exceeding three 
 thousand dollars, and imprisonment in the state prison for 
 a term not less than three nor more than seven years. 
 
 § 2. Every officer and agent of every incorporated com- 
 pany, joint stock company, or corporation, formed or exist- 
 ing under or by virtue of the laws of any of the United 
 States, who shall within this State, knowingly, willfully, 
 and designedly sign or procure to be signed, with intent 
 to issue, sell, or pledge, or cause to be issued, sold, or 
 pledged, or who shall knowingly, willfully, and de- 
 signedly, issue, sell, or pledge, or cause to be issued, 
 sold, or pledged, any certificate or other evidence of the 
 ownership or transfer of any share or shares of the capital 
 stock of such incorporated company, joint stock com- 
 pany, or corporation, or any bond or evidence of debt of 
 such incorporated company, joint stock company, or cor- 
 poration, or any instrument purporting to be a certificate, 
 or other evidence of ownership or transfer of such share 
 Dr shares, or purporting to be such bond or evidence of 
 debt, without being thereunto first authorized and em- 
 powered by such incorporated company, joint stock com- 
 pany, or corporation, and every such officer and agent 
 who shall reissue, sell, pledge, or dispose of, or cause to be 
 reissued, sold, pledged, or disposed of, any surrendered or 
 cancelled certificate, or other evidence of the ownership 
 or transfer of any such share or shares, or of any right or 
 interest therein, with the intent of defrauding any such cor- 
 poration or any person or persons, shall be deemed guilty 
 of a felony, and shall be punished by a fine not exceeding 
 three thousand dollars, and imprisonment in the state 
 prison not less than three nor more than seven years. 
 
BANKING CORPORATIONS. 208a 
 
 ACT OF MARCH 14th, 1857. 
 
 (LAWS 1B51, VOL I., CHAP. 103, P. 212.) 
 
 An Act to amend the act to organize a liamik d&pa/rimient, 
 passed April twelfth, eighteen hundred and fifty-one, 
 and prescrihiny the powers and. duties of the superin- 
 tendent. Passed Ma/rch 14, 185T. 
 
 The People of the State of Nemo York, represented, in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Section two of the act to organize a bank depart- salary of 
 
 Buperintend- 
 
 ment is hereby amended by striking out, from the fifth and en*, 
 sixth lines of the said act, the following words : " He shall 
 receive an annual salary of twenty-fire hundred dollars," 
 and inserting the words, " He shall receive an annual salary 
 of five thousand dollars." 
 
 § 2. No transfer of stocks or mortgages now held or^^^^^^^ ^^ 
 hereafter received by the superintendent of the banking mort|ag°Sf 
 department, as security for circulating notes issued for the 
 same by him, shall be deemed valid or of binding force or 
 effect, unless the same be countersigned by the treasurer 
 of the State, or in his absence from his ofB.ce, or inability 
 to perform the duties of his office, by his deputy. It shall 
 be the duty of the treasurer aforesaid to keep in his office^ treasurer. 
 or in the office of the superintendent of the banking de- 
 partment, a book, in which shall be entered the name of 
 every bank, banking association, or individual banker, from 
 13* 
 
208& SPECIAL STATUTES APPLICABLE TO 
 
 whose account such transfer of securities is made by the 
 superintendent, and the name of the party to whom such 
 transfer is made, unless such transfer shall be made in 
 blank, in which case the fact shall be stated in said book ; 
 and the par value of any stock so transferred shall be en- 
 tered therein, and the amount for which every mortgage 
 transferred is held by the superintendent, and the name of 
 the party to whom assigned shall also be therein entered ; 
 and it shall be the duty of the treasurer, immediately upon 
 countersigning and entering the same, to advise by mail 
 the bank, banking association, or individual banker, from 
 whose account such transfer was made, of the kind of se- 
 curity and the amount of the same thus transferred. 
 
 § 3. The treasurer shall present, in his annual report to 
 
 Report of ° _ r ; r 
 
 treaeurer. i}xq legislature, the total amount of such transfers or assign- 
 ments countersigned by him. % 
 
 § 4. It shall be the duty of the treasurer, or in his ab- 
 
 to^cSe^sence from his office, or in case of his inability to perform 
 
 fe^'4o?°°' the duties of his office, of his deputy, to countersign and 
 enter upon the book; in the manner aforesaid^ every trans- 
 fer or assignment of any securities held by the said super- 
 intendent, presented for his signature ; and the treasurer 
 shall have, at all times during office hours, access to the 
 books of the superintendent of the banking department, for 
 
 • the purpose of ascertaining the correctness of the transfer 
 
 or assignment presented to him to countersign, and the su- 
 perintendent shall have access to the book above-mentioned, 
 kept by the treasurer, during office hours, to ascertain the 
 correctness of the entries upon the same. 
 
 § 5. The treasurer shall, for the services required by this 
 
 treaiurTr. "' act, rcccive the annual salary of one thousand dollars, to 
 be paid in the same manner as the salary of the superin- 
 
BANKING CORPORATIONS. 208c 
 
 tendent, and the same shall be charged in the general ex- 
 penses of the bank department.-^ 
 
 § 6. This act shall take effect on the fir^t day of April 
 next. 
 
 ACT OP MARCH 28th, 1857. 
 
 (LAWS 1857, VOL L, CHAP. 189, P. 436.) 
 
 As Act in relation to hanks, ianhing associations, indi- 
 vidual hankers, and the hamJc department. Passed 
 March 28, 1857. 
 
 ■'; 
 
 The People of the State of^ New York, represented in 
 Senate and AssewMy, do enact as follows : 
 
 % 1. "Whenever a banking association shall lawfully, by etanglf* °' 
 virtue of its articles of association, or other proper authority, 
 roake any change in any of the particulars required to be 
 stated in the certificate of association^ the change shall not 
 be of any force or validity until a certificate thereof, exe- certificates 
 
 •/ */ ' to be record- 
 
 cuted by the president and cashier, under the corporate "'*°*"'*' 
 seal of the association, shall have been recorded and a copy 
 filed, in the same manner as the certificate of association is 
 by law required to be recorded and filed. 
 
 § 2. It shall be the duty of either the president or »?'y »/ 
 
 «j J JT president or 
 
 cashier of every bank and banking association, and of""*"'""' 
 every individual banker, having securities deposited in the 
 office of the superintendent of the banking department of 
 this State, once or more during each fiscal year, and at 
 
208d SPECIAL STATUTES APPLICABLE TO 
 
 such time or times during the ordinary business hours as 
 said officer, banking association, or banker may select^ to 
 examine and compare such securities with the books of 
 said department, and, if found correct, to execute to the 
 superintendent a receipt, setting forth in the same the dif- 
 ferent kinds and the amounts thereof, and that the same 
 are in the possession and custody of the superintendent at 
 Authorized *^® ^^^^ °^ ^"^^ receipt. In case of the inability of an in- 
 agenta. dividual banker to make such examination, he shall make 
 the same through an authorized agent, appointed by him 
 in writing, whose receipt shall have the same force and 
 validity as if executed by him in person. If any bank, 
 
 J.Q CekSc Ox 
 
 refusal. banking association, or individual banker shall refuse or 
 
 neglect to make such examination during the fiscal year 
 
 comptrou- aforesaid,- the comptroller, secretary of state, and the super- 
 
 pototageXintendent of the banking department, shall appoint some 
 suitable and discreet person as agent for such bank, bank- 
 ing association, or individual banker, who shall have neg- 
 lected or refused to make the aforesaid examination ; and 
 jj such agent shall make such examination, and if the securi- 
 
 ties so held by the superintendent shall be found to agree 
 with the books of the department, shall execute the receipt 
 before mentioned, and the same shall be of like force or 
 validity as if executed by the president or cashier of the 
 bank, banking association, or the individual banker, or by 
 an agent by him appointed ; and it shall be the duty of such 
 bank, banking association, or individual banker, to pay on 
 demand to such person so appointed, and making such ex- 
 amination and executing a receipt as aforesaid, such com- 
 pensation therefor as the superintendent shall certify to be 
 just and reasonable. 
 
 § 3. Section nine of the act to organize a bank depart- • 
 
BANKING CORPORATIONS. 2086 
 
 ment, passed April twelve, eighteen hundred and fifty-one, 
 is hereby amended so as to read as follows : 
 
 Instead of the comptroller, secretary of state, and trea- Duty of su- 
 surer, it shall be the duty of the superintendent of the bank enfbanwng 
 
 ,•,.,. department. 
 
 department to fix upon and determine a day m respect to 
 which the reports of incorporated banks, banking associa- 
 tions, and individual bankers, shall be made, as provided 
 in chapter four hundred and nineteen of the session laws of 
 one thousand eight huiidred and forty-seven ; and the said 
 superintendent shall, at least once in each quarter of a 
 year, fix and designate some Saturday in each preceding 
 quarter in respect to which the said reports shall be made, 
 and shall give notice thereof in the manner prescribed in 
 the said chapter four hundred and nineteen ; and the said 
 reports shall be' made to the said superintendent as directed 
 in the said chapter, and all willful false swearing in respect 
 to such reports shall be deemed perjury, arid subject to 
 the punishments prescribed by law for that offence. In in case of 
 case of neglect to make such report within fifteen days make report. 
 from the mailing of the notice designating said day upon 
 which such reports shall be made, it shall be the duty of 
 the superintendent to cause the books, papers, and affairs 
 of the bank, association, or banker so neglecting, to be 
 examined as directed by the third section of the said chap- 
 ter four hundred and nineteen ; and the reasonable ex- 
 penses of such examination, to be certified by the said su- 
 perintendent, shall be charged to the bank, association, or 
 banker so neglecting, and shall be collected in the manner 
 herein prescribed in respect to other charges against them ; 
 and it shall also be the duty of the superintendent, in case 
 of the failure or neglect of any bank, banking association, 
 or individual banker to make said report within the time 
 
208/ SPECIAL STATUTES APPLICABLE TO 
 
 above mentioned, to prosecute the same in any court of 
 record, and recover the sum of one hundred dollars for 
 such neglect or refusal ; and the money so recovered shall 
 be paid into the treasury of this State, to be used for the 
 purpose of defraying the miscellaneous expenses of the 
 bank department. 
 
 § 4. Whenever any circulating notes of any bank, 
 
 iarned. banking association, or individual banker shall be returned 
 to the bank department for destruction and burning, it 
 shall be the duty of such bank, banking association, or in;- 
 dividual banker, or the trustees or officers thereof, to pro- 
 cure the attendance of an agent to witness the counting, 
 Agent to destruction, and burning of such circulating notes at the 
 
 bnrning. bank department, and sign a' certificate thereof. In case 
 
 the individual banker, or the trustees or officers of any 
 
 bank, or banking association, returning circulating notes 
 
 to the bank department for destruction and burning, shall 
 
 Refusal to rcfuse or neglect to appoint or procure the attendance of 
 
 appoint 
 
 agent. an agent to witness the counting and burning thereof 
 within ten days after the receipt of the bills at the bank 
 department, it shall be the duty of the superintendent to 
 select and appoint some indifferent person, who shall, as 
 the agent of such bank, banking association, banker, or 
 trustee, witness and certify the counting and burning 
 theireof ; and it shall be the duty of such bank, banking 
 association, banker, or trustee, forthwith to pay on demand 
 to such person so appointed, witnessing and certifying as 
 aforesaid, such compensation therefor as the superintendent 
 shall certify to be just and reasonable. 
 Bank-note § 5- That it shall be the duty of the superintendent of 
 the banking department, and he is hereby authorized and 
 directed, to destroy, or cause to be destroyed, all bank-note 
 
BANKING C0RP0EATI0N3. 208^ 
 
 plates in his custody, of banks, banking associations, or in- 
 dividual bankers wbicb have failed or given notice of clos- 
 ing of their business ; and also all bank-note plates in his 
 custody that are not used, and any impressions which may 
 be on hand made therefrom ; and hereafter, whenever any 
 bank, banking association, or individual banker shall fail, 
 or discontinue the business of banking, it shall be the duty 
 of the said superintendent to destroy, or cause to be de- 
 stroyed, all plates and impressions belonging to such bank, 
 banking association, or individual banker, and include in 
 his next annual report a statement of the plates so de- 
 stroyed. 
 
 § 6. It shall not be lawful for the superintendent of the issuing of 
 
 ^ T . 1 . . 1 . . circulating 
 
 banking department to issue circulating notes to any m-°otes. 
 dividual hereafter commencing the business of banking 
 under chapter two hundred and sixty of the laws of 
 eighteen hundred and thirty-eight, and the various amend- 
 ments thereto, designating such individual as a bank, un- 
 less as an addition to his own proper name, and the word 
 " bank " is added thereto on such circulating notes ; and in 
 case such individual shall have partners in the business of 
 banking at the time of commencing the same, such fact 
 shall be shown by the words, " and company," to be added 
 to hi^ own proper name, upon every note issued to him or 
 them from the banking department. 
 
 § Y. Section nine of chapter two hundred and fo'rty-two 
 of the laws of eighteen hundred and fifty-four, shall not be^Xesfo?^ 
 so construed as to prohibit an individual banker from sell- *" ^l 
 Ing his business of banking, upon the securities deposited 
 by him, with all the privileges thereof, to any person who, 
 previous to the passage of said act of eighteen hundred and 
 fifty-four, was the partner, in good faith, of such banker, 
 
208A SPECIAL STATUTES APPLICABLE TO 
 
 in the business of banking aforesaid ; neither shall it be so 
 construed as to prohibit an individual banter from be- 
 queathing his business of banking, upon the securities de- 
 posited by him, to any person or persons ; nor shall it be 
 so construed as to prohibit the business from being con- 
 tinued after his death by his legatee or heir at law. 
 
 § 8. The superintendent of the banking department is 
 
 teeMu^!"'" hereby directed to pay into the treasury of the State the 
 sum of three hundred and sixty dollars and thirteen cents, 
 now standing to the credit of the City Trust and Banking 
 Company, the North American Bank, and the Farmers' 
 Bank of Orange County ; and the further sum of five hun- 
 dred and seventy dollars and seventy-six cents, now stand- 
 ing to the, credit of the Manufacturers' Bank of Ulster and 
 the Farmers' Bank of Malone, to be applied to the current 
 expenses of the bank department. 
 Assets of § ^- '^^ superintendent of the banking department is 
 
 offiufwo. hereby authorized to compromise, sell, or dispose of, at 
 public or private sale, as he may deem most for the in- 
 terest of the bank fund, all or any portion of the assets of 
 the City Bank of Bufi'alo, belonging to the bank fund, and 
 pay the amount realized therefrom to the treasurer ' on ac- 
 count of the bank fund. ' 
 AppUoa- § ^^' '^^® terms " ha/nking association" and " mdyvid- 
 
 teras°* ual hanker" as used in this act, shall be deemed to * apply 
 only to such banking associations and individual bankers 
 as are or may be organized under the act of April eighteen', 
 eighteen himdred and thirty-eight, and the several amend- 
 ments thereto, 
 
 § 11. All acts or parts of acts, so far as the same are 
 inconsistent with the provisions of this act, are hereby re- 
 pealed. 
 
 § 12. This act shall take effect immediately. 
 
BANKING C0KP0RATI0N3. 208i 
 
 ACT OF APRIL 13th, 1857. 
 
 (LAWS mi, VOL. L, CHAP. SlO, P. 766.) 
 
 As Act to provide for the final closing of incorporated 
 Icmks, continuing the "business of icmking until the 
 expiration of their charters. Passed April 13, 1857. 
 
 The People of the State of New Torh,, represented in 
 Senate and Assembly, do enact as follows : 
 
 % 1. "Whenever tlie trustees or legal representatives of 
 
 Redemption 
 
 any incorporated bank whose charter has expired, or shall »J<'^jj.^^»'- 
 hereafter expire, shall have redeemed and returned to the 
 bank department, to be destroyed, ninety per cent, of its 
 circulating notes outstanding at the expiration of such 
 charter, they shall be entitled to deposit with the superin- 
 tendent of the banking department, and the superintend- 
 ent shall be authorized to receive a deposit of money equal 
 to the amount of outstanding circulation at the time of 
 such deposit, to be placed by him in some bank in the 
 city of Albany, in good credit, and shall immediately 
 thereupon give notice in the State paper, and in at least „^^^*'Jf„°' 
 one newspaper in the county where such bank shall have 
 been located, which notice shall be published, at least once 
 a week for six months successively, that the notes of such 
 bank will be redeemed by him at the bank where such 
 deposit is made atpar ; and that all the outstanding circu- 
 lating notes of such bank must be so presented for redemp- 
 tion within six years from the date of such notice ; and all 
 notes which shall not be thus presented for redemption 
 and payment within the time specified in such notice shall 
 
208/ SPECIAL STATUTES APPLICABLE TO 
 
 cea^ to be a charge upon the funds in the hands of the 
 superintendent for that purpose. At the expiration of 
 such notice it shall be lawful for the superintendent to 
 surrender, and the trustees or legal representatives of such 
 expired bank shall be entitled to receive from the superin- 
 tendent, all the money remaining in his hands after such 
 redemption, except so much thereof as shall be necessary 
 to pay for the publication of the notices so published. 
 
 § 2. All circulating notes of such banks which shall 
 not have been presented for payment within the period 
 required by such notice, shall, upon the expiration of such 
 period, cease to be a lien or charge upon the property and 
 effects of such bank in the hands of the trustees or legal 
 Liabiuty of representatives ; and all liability of said trustees or legal 
 
 trustees. . z. /,.■.. 
 
 representatives, for or on account of any circulatmg notes 
 which shall not have been presented within the time speci- 
 fied by such notice, shall also cease. And said trustees 
 may, after the full payment of all the circulating notes of 
 such bank which shall have been presented within the 
 time required by such notice, and of all other lawful claims 
 and demands against such bank, divide the remaining 
 property and effects of said bank among the stockholder^ 
 thereof, their personal representatives or assigns, according 
 to their respective shares and interest therein. 
 
BANKING CORPORATIONS. 208^ 
 
 ACT OP APRIL 15th, 1857. 
 
 (LAWS 1867, VOL. II, CHAP. 456, P. 1.) 
 
 As Act im relation to the assessment of taxes on incor- 
 porated companies. Passed April 15, 1857. 
 
 The People of the State of New Yorle, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. The fourteentli section of the fourth title of the certain sec- 
 
 /»i-r».nr( ^ions repeal- 
 
 thirteenth chapter of the first part of the Kevised Statutes, ea. 
 
 entitled " Kegulations concerning the assessment of taxes 
 on incorporated companies, and the commutation or collec- 
 tion thereof," and the ninth and tenth sections of said title 
 as amended by chapter six hundred and fifty-four of the 
 laws of eighteen hundred and fifty-three, are hereby re- 
 pealed. 
 
 § 2. The fifteenth section of the said title is hereby 
 amended to read as follows : The amount of taxes assessed 
 on all incorporated companies liable to taxation shall be 
 set down by the board of supervisors in the fifth column 
 of the corrected assessment roll, and shall form a part of 
 the moneys to be collected by the collector. 
 
 § 3. The capital stock of every company liable to taxa- c^pitji 
 tion, except such part of it ^s shall have been excepted in ° "^ ' 
 the assessment roll, or as shall have been exempted by 
 law, together with its surplus profits or reserved, funds, 
 exceeding ten per cent, of its capital, after deducting the 
 assessed value of its real estate, and all shares of stock in 
 other corporations actually owned by such company, which 
 
2081 SPECIAL STATUTES APPLICABLE TO 
 
 are taxable upon their capital stock^under the laws of this 
 State, shall be assessed at its actual value, and taxed in 
 the same manner as the other personal and real estate of 
 the county. 
 De oait8 in § ^' '^^^ deposits in any bank for savings which are 
 
 baXf Ac. ^^^ to depositors, and the accumulations in any life insur- 
 ance company organized under the laws of this State, so 
 far as the said accumulations are held for the exclusive 
 benefit of the assured, shall not be liable to taxation, other 
 than the real estate and stocks which may be owned by 
 such bank or company, and Vhich are now liable to taxa- 
 tion under the laws of this State. 
 
 § 5. The twenty-first section of the said title is hereby 
 amended to read as follows : 
 Companies '^^® Comptroller shall furnish the attorney-general with 
 
 ?afastagto the names of all the companies and banks refusing or neg- 
 
 pay. 
 
 lecting to pay the taxes imposed on them, with the amount 
 due from them respectively, and the attorney-general shall 
 thereupon file a petition in the supreme court against 
 every such company or bank, for the discovery and seques- 
 tration of its property. 
 
 § 6. The supreme court, on the filing of such petition, 
 tion°rfprop-or on the coming in of the answer thereto, may order such 
 part of the property of such company or bank to be se- 
 questrated as shall be deemed necessary for the purpose of 
 satisfying the taxes in arrear, with the costs of prosecution ; 
 and the court may also, at its discretion, enjoin such com- 
 pany or bank, and the officers thereof, from aqy further 
 proceedings under their charter or act of incorporation, 
 and may order and direct such other proceeijings as shall 
 be deemed necessary to compel the payment of such taxes 
 and costs. ' 
 
 § 7. This act shall take effect immediately. 
 
BANKING CORPORATIONS. 208m 
 
 ACT OF AFRII. 30th, 1857. 
 
 (LAWS 1857, VOL II., CHAP. 804, P. 11i.) 
 
 An Act to amend the Imos relatwe to ianMng, cmd to^e- 
 vent the improper retention of the notes of country 
 hanks. Passed April 30, 1867. 
 
 The People of the State of New York, represented in 
 /Senate and Assembly, do enact as follows : 
 
 § 1. It shall be optional with every incorporated bank, 
 banking association, or ihdividual banker, doing the busi-''°°°*''°'*'* 
 ness of banking under any statute of this State, and re- 
 ceiving after this act takes effect, on deposit, in the course 
 of its or his business, or otherwise, the circulating notes 
 issued by any other incorporated bank, banking association, 
 or individual banker engaged in the business of banking 
 under any such statute, to present such notes for redemp- 
 tion and payment in the manner and upon the terms now 
 provided by law, either to the lawful redeeming agents or 
 at the counters of the incorporated banks, banking asso- 
 ciations, or individual bankers issuing them ; but every 
 such incorporated bank, banking association, and individual 
 banker shall elect to present, and shall present such notes, 
 and all of them it or he may have on hand at the time of 
 such presentation, either to > the lawful agents, or at the 
 counters of the banks, banking associations, or individual 
 bankers issuiag them, for redemption and payment, in the 
 manner provided by law, as often at least as once in each 
 successive week, when more than the sum of ten thousand ■ 
 
208«, SPECIAL STATUTES APPLICABLE TO 
 
 dollars are held by sai4 incorporated banks, banting asso- 
 ciation, or individual banker. 
 Notic of § ^" •'-^ either of such banks, banking associations, or 
 eiecuon. |jankers holding such circulating notes, shall elect to pre- 
 sent the same for redemption and payment at the counters 
 of the banks, banking associations, or bankers issuing them, 
 it or he shall cause a written or printed notice of such elec- 
 tion, attested by the signature of the president or cashier of 
 the bank, banlsing association, or bank so holding them, 
 under the seal of such bank, banking association, or banker, 
 that it or he will thereafter seal and present such notes and 
 all of them that it or he shall have on hand at the time of such 
 sealing, at the counter of the bank, banking association, or ' 
 banker issuing them, for redemption and payment, as often 
 at least as once in each successive week, when more than the 
 sum of ten thousand dollars are held by said incorporated 
 banks, banking association, or individual banker, to be re- 
 deemed and paid in the manner required by law; and 
 when such notice shall have been given, such notes so re- 
 ceived by such banks, banking, associations, and bankers 
 aforesaid giving such notice, shall thereafter be presented 
 at such counters, and not elsewhere, for redemption and 
 payment, unless a further notice of ten days shall be given 
 in the manner above provided) that such notes will there- 
 after be presented for redemption and payment to the law- 
 ful redeeming agent aforesaid, within the times and upon 
 . the terms prescribed by law ; but nothing herein contained 
 shall be construed to prohibit banks, banking associations, 
 and individual bankers from redeeming, presenting, hold- 
 ing, pledging, or exchanging each other's circulating notes 
 in the manner, within the times and upon such terms as 
 they may agree upon, or may heretofore have agreed upon, 
 and as shall be conformable to pre-existing laws. 
 
BANKING CORPORATIONS. 208o 
 
 § 3. Every incorporated bank, banking association, and yioiau"n.'°' 
 individual banker who shall knowingly and willfully neg- 
 lect or refuse to comply with the provisions of this act shall 
 forfeit and pay the sum of one thousand dollars, to be sued 
 for and recovered in the name of the people of the State of 
 New York, in any court having competent jurisdiction. 
 
 § 4. This act shall take effect on the first day of June, 
 one thousand eight hundred and fifty-seven. 
 
 ACT OF APRIL 9th, 1858. 
 
 (LAWS 1868, CHAP. 132, P. 247.) 
 
 An Act to restrain icmks, ianking institutions, and in- 
 dividual hankers from assuming the title of savings 
 hanks, or receiving deposits as such. Passed April 
 9, 1858. 
 
 The People of the State of New York, represented in 
 Senate and Assemhly, do enact as follows : 
 
 § X. It shall not be lawful for any bank, banking asso- 
 ciation, or individual banker authorized to issue circulating 
 notes, by the laws of this State, established in any city or 
 village, where a chartered savings bank is located and 
 transacting business, to advertise or put forth a sign as a 
 savings bank, or in any way to solicit or receive deposits as 
 a savings bank ; and any bank, banking association, or in^ 
 dividual banker which shall offend against these provisions 
 shall forfeit and pay for every such offence the sum of one 
 hundred dollars for every day such offence shall be con- 
 
208p SPECIAL STATUTES APPLICABLE TO 
 
 tinued, to be sued for and recovered in the name of the 
 people of this State, by the district attorneys of the several 
 counties, in any court having cognizance thereof, for the 
 use of the poor chargeable to said county in which such 
 offence shall be committed. 
 
 § 2. This act shall take effect on the first day of May 
 next. 
 
 ACT OF APRIL 11th, 1859. 
 
 (LAWS 1859, CHAP. 236, P. 503.) 
 
 As Act m relation to the lank department. Passed April 
 11, 1859. 
 
 TIbe People of the State of New York, represented in 
 Senate and Assembly, do enact as follows : 
 
 ♦Certain § !• Scctious eight and nine of chapter three hundred 
 
 amended, and nineteen, being an act to amend the act entitled " An 
 act to authorize the business of banking," passed May 
 ' twenty-sixth, eighteen hundred and forty-one, and chapter 
 
 sixty-eight, being an act to amend the act entitled " An 
 act to authorize the business of banking," passed May 
 twenty-sixth, eighteen hundred and forty-one, which act 
 was passed on the twenty-ninth of March, eighteen hundred 
 and fifty-one, and chapter three hundred and seventy, 
 entitled " An act to provide for the final closing of incor- 
 porated banks, continuing the business of banking until 
 the expiration of their charters," passed April thirteenth, 
 eighteen hundred and fifty-seven, are hereby amended so 
 as to read as follows : 
 
BANKING CORPOEATIONS. 208$' 
 
 1. "Whenever any banking association, individual bank- intention ^o 
 
 .oil. . . . . close bank, 
 
 er, receiver oi a banking association, assignee or assignees &c. 
 of an individual banker, shall have given notice to the 
 superintendent of their intention to close the business of 
 banking, or the trustees or legal representatives of any in- 
 corporated bank whose charter has expired, or the receiver 
 of any incorporated bank which shall have been declared 
 insolvent, shall have redeemed at least ninety per cent, of 
 their circulating notes outstanding at the date of such no- 
 tice, expiration of charter, or declaration of insolvency, 
 they shall be entitled to deposit with the superintendent, 
 and he is hereby authorized to receive, a deposit of money 
 equal to the amount, of the outstanding circulation at the 
 time of such deposit, to be placed by him in some bank in 
 the city of Albany, in good credit, upon the receipt of 
 which it shall be lawful for the superintendent to give up 
 all other securities theretofore deposited with him for the 
 redemption of circulating notes issued thereon. 
 
 2. Upon the receipt of such deposit, the superintendent uponre- 
 shall immediately give notice in the State paper, and at p"^''- *"■ 
 least one newspaper in the county where such bank, bank- 
 ing association, or banker, shall have been located or doing 
 business, which notice shall be published at least once a 
 week for six months successively, that the notes of such 
 bank, banking association, or banker, will be redeemed by 
 him, at the bank where such deposit is made, at par ; and 
 that all the outstanding circulating notes of such bank, 
 banking association, or banker, must be so presented for 
 redemption within six years from the date of such notice, 
 and all notes which shall not be thus presented for redemp- 
 tion and payment within the time specified in such notice 
 shall cease to be a charge upon the funds in the hands of y 
 
 the superintendent for that purpose. 
 13t 
 
2087- SPECIAL STATUTES APPLICABLE TO 
 
 tendrauo' 3. At the expiratloD of such notice it shall he lawful 
 Ac. for the superintendent to surrender, and such bank, hank- 
 
 ing association, banker, receiver, assignees or trustees, or 
 their legal representatives, shall be entitled to receive from 
 him all the money remaining in his hands after such re- 
 demption, except so much thereof as may be necessary to 
 pay the reasonable expenses chargeable against the said 
 accounts, including the payment for the publication of the 
 above-mentioned notices. 
 nSes"'*""'^ 4. All circulating notes of such bank, banking associa- 
 tion, or banker, which shall not have been presented for 
 payment within the period required by such notice, shall, 
 upon the expiration of such period, cease to be a lien or 
 charge upon the property and effects of such bank, banking 
 association, or banker, in the hands of such receivers, as- 
 signees, trustees, or otherwise ; and all liability of such 
 receivers, assignees, trustees, banks, banking associations, 
 or bankers, for or on account of any circulating notes 
 which shall not haVte been presented within the time afore- 
 said, shall also cease. 
 
 5.' Said trustees, receiver, assignees, bank, banking as- 
 sociation, or banker, may, after the full payment of all the 
 circulating notes issued by them respectively, which ■shall 
 have been presented within the time required by such no- 
 tice, and of all other lawful claims and demands against 
 such bank, banking association, or banker, divide the re- 
 maining property and effects of said bank, banking asso- 
 ciation, or banker, among the stockholders thereof, their 
 or his personal representatives or assigns, according to 
 their respective shares and interest therein. 
 Balance to 8 2. The Superintendent of the banking department is 
 
 be paid into n r S> f 
 
 treasury, hereby directed to pay into the treasury of the State all 
 
BANKING CORPORATIONS. 208s 
 
 balances of money remaining in his hands unclaimed for 
 six years from the date of such deposit, to be applied to 
 the current expenses of the bank department. 
 
 § 3. Any legal notice that shall be served upon the Legal no- 
 
 ■ J tlce, how 
 
 supermtendent of the bankmg department, in relation to served. / 
 any mortgage of which he is the assignee, shall specify the 
 name of the mortgagor and the description of the prem- 
 ises, as shown by the mortgage covering them, and the 
 name of the party by whom it was assigned to him ; and, 
 unless such notice shall contain the provisions hereinbefore 
 mentioned, a non-compliance with the terms of such notice 
 on the part of the superintendent shall not invalidate or 
 lessen the security conveyed by such mortgage, or in any 
 manner affect his lien upon the mortgaged premises con- 
 veyed under it. 
 
 § i. It shall be the duty of every public officer into Duty of ev- 
 whose hands shall come any pounterfeit bank-note plate, oScer. 
 or other device for counterfeiting bank notes, or any coun- 
 terfeit oy spurious bank notes, immediately after using 
 them when necessary in evidence against the parties im- 
 plicated, to surrender the same to the superintendent of 
 the banking department, to be destroyed under his super- 
 vision ; and it shall be the duty of the superintendent to 
 destroy all such plates, devices or notes thus surrendered 
 to him, in the same manner as he is now authorised to do 
 in the case of banks whose charters ^ave expired or have 
 become insolvent, and to report the same to the legislature 
 in his annual report. 
 
208^ SPECIAL STATUTES APPLICABLE TO 
 
 / 
 
 ACT OF APRIL 13th, 1859. 
 
 (LAWS 1869, CHAP, ini, P. 627.) 
 
 An Act to provide fpr the reduction of the capital stocTe of 
 lamMng associations. Passed April 13, 1859. 
 
 The People of the State of New Torh, represented in 
 Senate and Assembly, do enact as follows : 
 
 Association § 1. It shall be lawful for a banking association, now 
 
 rapua? " or hereafter to be organized, under the general banking 
 laws of this State, to reduce its capital stock to an amount 
 wjiich shall be equal to the value of the property and 
 effects of such banking association, above and beyond all 
 its debts and liabilities, and thenceforth the capital stock 
 of such association shall be such reduced amount, and the 
 par value of the shares thereof shall be reduced in the same 
 proportion ; but in no case shall such capital stock be re- 
 duced below one hundred*" thousand dollars, the amount 
 now required by law for a banking association. 
 
 § 2. Whenever a banking association shall propose to 
 
 superintend- j.g^^gg its Capital stock, according to the provisions of the 
 first section of this act, due notice thereof shall be given to 
 the superintendent of the banking department, signed by a 
 majority of its board of directors and accompanied by the 
 written assent to such reduction of at least two-thirds in 
 amount of the shareholders of such association. It shall 
 
 tendent to be the dutv of the said superintendent, upon the receipt 
 
 examine as- •' _ '■ 
 
 »»*'■ and filing of such notice, and within a reasonable time 
 
BANKING COSPORATIONS. 208m 
 
 thereafter, to make, or cause to be made, an exai]4inatioii 
 of its books, property, effects, and liabilities ; upon wbicb 
 examination the officers thereof may be examined on oath 
 as to the debts, liabilities, property, and effects thereof. 
 From the result of such examination, the said superintend- ^^«^«™'°« 
 ent shall determine the value, in his judgment, of such sSfofc' 
 property and effects, above and 'beyond the debts and lia- 
 bilities aforesaid, and certify the same in writing, and the 
 amount so determined and certified shall be thereafter the 
 capital stock of such banking association, and the par 
 value of the shares thereof shall be proportionably re- 
 duced. 
 
 § 3. The expense of the examination herein provided Expense to 
 
 , , _ be pa,id by 
 
 for by the superintendent of the bankmg department, or banker, 
 caused to be made by him, shall be paid by the banking 
 association for whose benefit the application shall be 
 made. 
 
 § 4. The determination and certificate in writing to be certificate 
 
 ^ . ^ to be record- 
 made by the said supermtendent, of the amount to which ed. 
 
 the capital stock of any banking association has been 
 reduced under this act, shall be recorded in the office 
 of the clerk of the county in which such banking associa- 
 tion shall be located, and a certified copy thereof filed in 
 the bank department of the State of New York, and the 
 same shall be published by the said superintendent once a Notice to 
 week for six weeks successively, in the State paper, and at 
 least one newspaper in the county where such association 
 shall be located, at the expense of the banking association 
 applying for such reduction of its capital stock. 
 
 § 5. Nothing in this act contained shall in any way securities 
 change or lessen the liability of the stockholders of any paired. 
 banking association reducing its capital stock under its 
 
208'y SPECIAL STATUTES APPLICABLE TO 
 
 provisions) to the bill-holders or other creditors thereof; or 
 any indebtedness or engagement now existing or that may 
 so exist, either absolutely or contingently, against such 
 association, prior to or at the time when such reduction 
 shall take place ; or by which the rights, remedies, or secu- 
 rity of the then existing creditors shall be weakened or 
 impaired. 
 
 ACT OF APRIL 15th, 1859. 
 
 (LAWS 1859, CHAP. 365, P. 880.) 
 
 An 'Act to amend "An act to enforce the responsibility of 
 stockholders in certain lanhing associations ^ poLssed 
 April fifth, eighteen hmidred, and forty-nine. 
 Passed April loth, 1859. 
 
 The People of the State of New York, represented, in 
 Senate and Assembly, do enact as follows : 
 
 Act amend- 8 1. Section fourth of the act entitled " An act to en- 
 
 ed. 
 
 force the responsibility of stockholders in certain banking 
 corporations and associations, as prescribed by the constitu- 
 tion, and to provide for the prompt payment of demands 
 against such corporations and associations," passed April 
 fifth, eighteen hundred and forty-nine, is hereby amended 
 so as to read as follows : 
 residenceBof A book shall be provided and kept by every corpora- 
 
 Btockholdera -"^ c j j r ^ 
 
 bookpro^d'-tio° ^^^ associatiou described in the first section of this 
 purpose. * act, in which shall be entered the names and residences of 
 
BANKING CORPOKATIONS. 208m) 
 
 the stockliolders in such, corporation or associatton on the 
 iirst day of January, one thousand eight hundred and iifty, 
 and the names and residences of the original stockholders 
 of every corporation or association organized after the day 
 last mentioned, so far as the same are known to the officers 
 of the bank ; the number of shares held by each stock- 
 holder ; every registered transfer of stock upon the books of 
 the bank after the said last-mentioned day ; the names of the 
 assignor and assignee, with their residences and the number 
 of shares transferred. The said book shall be at all times, kept open''* 
 during the usual hours Of transacting business, open to tto"."°''*°" 
 public inspection. And a refusal by any officer of such 
 corporation or association to exhibit such book to any per- 
 son demanding the inspection thereof, as herein provided, 
 shall subject the said corporation or association to a penalty 
 of fifty dollars for every such refusal. And every refusal 
 ' by any such _ officer having once refused to exhibit such 
 book as aforesaid, is hereby declared to be a misdemeanor, 
 and the officer so offending, upon conviction thereof, shall 
 be adjudged guilty of a misdemeanor, and be punished by a 
 fine not exceeding one hundred dollars for every such sub- 
 sequent refusal, or by imprisonment for a term not exceed- 
 ing six months, or by both such fine ■ and imprisonment. 
 The said penalty may be sued for and recovered, with 
 costs, by any person who will prosecute for the same ; the 
 one moiety thereof to be paid to such person, and the other 
 moiety to be paid into the treasury of the State. In all 
 proceedings under the provisions of this act, the said book 
 shall be presumptive evidence of the truth of the contents 
 thereof; but such presumption may be repelled by evi- 
 dence by any party or person interested in repelling the 
 same. 
 
 § 2. This act shall take effect immediately. 
 
 Penalty. 
 
20833 SPECIAL STATUTES APPLICABLE TO 
 
 ACT OP MARCH 27th, 1862. 
 
 (LAWS 1862, CHAP. 62, P. 181.) 
 
 An Act to authorize the incorporated tanks of the State to 
 take and hold any stock of the United States, or of the 
 State of New York. Passed March 27, 1862. 
 
 The People of the State of New York, represented m Sen- 
 ate and Assembly, do enact as follows : 
 
 § 1. That it shall and may be lawful for any bank in- 
 corporated by any act of the legislature of the State of 
 New York, or any banking association, or individual 
 bankers, to take and to become the owner of any stock of 
 the United States, or of the State of 'New York. 
 
 § 2. That so much of the several acts incorporating 
 such banks, or authorizing the business of banking, and 
 the acts amendatory thereof, as is inconsistent with the 
 foregoing section, be, and the same is hereby, repealed. 
 
 § 3. This act shall take effect immediately. 
 
 ACT OF APRIL 22d, 1862. 
 
 (LAWS 1862, CHAP. 422, P. 156.) 
 
 An Act to provide for the consolidation of hanking asso' 
 ciations. Passed April 22, 1862. 
 
 The People of the State of New York, represented in Sen- 
 ate and Assembly, do enact as follows : 
 
 Authority. § !• -^^7 two Or morc banking associations,yOrganized 
 under the general banking laws of this State, and located 
 
BANKma CORPORATIONS. 20 8y 
 
 in the same city, village, or town, are hereby, 'authorized 
 to consolidate the same into a single association, to be lo- 
 cated in the same place, in the manner following : 
 
 § 2. The directors of the said associations may enter proceed- 
 
 Ings to con- 
 
 into an agreement, under their respective corporate seals, soMate. 
 for the union or consolidation of the said associations, 
 prescribing the terms and conditions thereof, the mode of 
 carrying the same into effect, the name and duration of 
 the new association, the number of directors, the names 
 of the persons to constitute the first board of directors, the 
 time and place of holding the first election of directors, 
 the manner of converting the shares of each of said asso- 
 ciations into the shares of the new association, with such 
 other details and provisions as they may deem expedient, 
 not inconsistent with the provisions of the act to authorize 
 the business of banking, and the acts amendatory thereof. 
 ^Notice of the intention to consolidate said associations 
 shall be given personally or by mail to each stockholder ofr 
 each of said associations, at least ten days previous to 
 entering into said agreement. 
 
 § 3. The written consent of stockholders, owning at consent ot 
 
 I stockholders 
 
 least two-thirds in amount of the capital stock of each of 
 said associations, shall be requisite to the validity of said 
 agreement. Upon the presentation to the superintendent 
 of the banking department of the said agreement, duly 
 proved or acknowledged, together with satisfactory proof, 
 by affidavit or otherwise, of the assent thereto of stock- 
 holders owning two-thirds in amount of the capital stock 
 of each of said associations so proposing to consolidate, 
 and of the service of notice upon each stockholder as 
 aforesaid, the said superintendent shall, within a reasonable 
 time thereafter, make or cause to be made an examination 
 
208s SPECIAL STATUTES APPLICABLE TO 
 
 of the books, property, effects, and liabilities of Buch asso- 
 ciations ; upon which examination the officers thereof may- 
 be examined on oath as to the debts, liabilities, property 
 snperin- and cffccts of such associations respectively. ' From the 
 
 tendeut of i ^ t ..,''., 
 
 banking de- rcsult of such examination the said superintendent shall 
 
 partment, •*■ 
 
 determine the value, in his judgment, of such property 
 and effects above and beyond the debts and liabilities 
 aforesaid, and certify the same in writing ; and the amount 
 so determined and certified shall be thereafter the capital 
 stock of such consolidated banking association. 
 
 Expense. § 4. The cxpcnse of the examination herein provided 
 for by the superintendent of the banking department, or ' 
 caused to be made by him, shall be paid by the banking 
 associations for whose benefit the application shall be 
 made. ^ 
 
 Certificate § 5. The dctermiflation and certificate in writing, to be 
 
 In writing to ^ .^ 
 
 be recorded, made by the said superintendent, of the amount at which 
 
 the capital stock of any banking association has been fixed 
 
 under this act, shall be recorded in the office of the clerk 
 
 of the county in which such banking association shall be 
 
 Piled in located ; and a certified copy thereof filed in the bank 
 
 bankdepartr 
 
 ment. department of the State of l^ew York ; and the same 
 shall be published by the said superintendent once a week 
 for sixl weeks successively in the State paper, and at least 
 one newspaper in the county where such association shall 
 be located, at the expense of the said banking association, 
 consoii- § ^- Upon the recording of the said agree'ment and 
 
 aSon.*"'""' certificate, the said consolidated associations shall be and 
 ^ become a single banking association, in accordance with 
 
 the said agreement and certificate, with the same franchise, 
 rights, powers and privileges, and subject to the same du- 
 ties, conditions and limitations as the several constituent 
 
BANKING CORPORATIONS. 208aa 
 
 associations ; and sucli consolidated association shall be 
 vested with all the estate, property, credits and effects of 
 the constituent associations, without deed or other transfer, 
 and shall be liable for all their contracts, debts, obligations, 
 and liabilities ; and the separate existence and operation 
 of such constituent associations shall thereupon cease and 
 determine. 
 
 § 7. No action or other proceeding pending before any ^i^^j'"! t„ 
 court or tribunal, in which either of the constituent asso- S.'°^ 
 ciations may be a party, shall be deemed to have abated or 
 been discontinued by reason of their consolidation ; but 
 the same may be prosecuted to final judgment and execu- 
 tion, in the same manner as if this act had not been passed, 
 or the said new association, by order of the court in which 
 such proceedings may be pending, may be substituted as a 
 party in place of either of the original associations, in any 
 stage of such proceedings. 
 
 § 8. Nothing in this act contained shall in any way Liability 
 
 not Chang- 
 
 change or lessen the liability of the stockholders of any ea. 
 banking associations consolidating their capital stock under 
 its provisions to the bill-holders or other creditors therefor ; 
 or any indebtedness or engagement now existing, or that 
 may so exist, either absolutely or contingently, against 
 such association prior to or at the time when such consoli- 
 dation shall take place ; or by which the rights, remedies, 
 or security of the then existing creditors shall be weak- 
 ened or impaired. 
 
 § 9. If any stockholder in either of the associations Dissent ot 
 
 any stock- 
 
 availing itself of the provisions of this act, who shall not'i'"'^*'^- 
 have assented to such consolidation, shall, within twenty 
 days after the agreement and certificate hereinbefore men- 
 tioned shall be recorded in the clerk's office of the county 
 in which such associations are located, object in writing to 
 
20855 SPECUL STATUTES APPLICABLE TO 
 
 such consolidation, and Remand payment for his stock, 
 such consolidated association shall, within three months 
 from the filing of such dissent, pay to the dissenting stock- 
 holder the value of his stock, as determined in the certifi- 
 cate of the superintendent of the banking department 
 aforesaid ; and, upon payment so made by the said asso- 
 ciation, the interest of said stockholder in the property and 
 effects of said association shall cease, and the said stock 
 may be held and disposed of by the said association for its 
 own benefit. 
 
 ACT OP MARCH 4th, 1863. 
 
 (LAWS 1863, CHAP. 22, P. 35.) 
 
 An Act to amend cm act enUtled " An act to authorise 
 the iusmess. of hanking" passed April eighteen, 
 eighteen hwndred and thirty-eight. 
 Passed March 4, 1863. 
 
 The People of the State , of New York, represented in 
 Senate amd Assembly, do enact as follows : 
 
 § 1. In all cases where the articles of association of any 
 banking association do not prescribe as to the number of 
 directors necessary to constitute a quorum, and make no 
 provision for determining the same, such banking association 
 may, by its direction, declare and fix the number of di- 
 rectors necessary to be present to constitute a quorum for 
 the transaction of business, which number shall not be less 
 than five, with the same effect as if the same was pre- 
 scribed in the articles of association of such banking associ- 
 ation. ' 
 
BANKING CORPORATIONS. 208cc 
 
 ACT OP APRIL 29th, 1863. 
 
 (LAWS 1863, CHAP. 240, P. 435.) 
 
 An Act in relation to the taxation of moneyed GorporaUona 
 and associations. Passed April 29, 1863. 
 
 The People of the State of New Yorh, represented m 
 Senate and AssemMy, do enact as follows : 
 
 § 1. All banks, banking associations, and other moneyed 
 corporations and associations sball be liable to taxation on 
 a valuation equal to the amount of their capital stock paid 
 in or secured to be paid in, and their surplus earnings (less 
 ten per cent, of such surplus) in the manner now provided 
 by law, deducting the value of the real estate held by any 
 such corporation or association and taxable as real estate. 
 
 ; § 2. This act shall take effect immediately. 
 
20Sdd SPECIAL STATUTES APPLICABLE TO 
 
 ACT OP APRIL 29th, 1863. 
 
 (LAWS 1863, CHAP. 241, P. 436. 
 
 An Act to amend the ianhing laws of this State. 
 Passed April 29, 1863. 
 
 The, People of the State of New York, represented in 
 Senate and Assembly, do enact as follows: 
 
 § 1. From and after the passage of this act, the securi- 
 ties hereafter to be deposited with the superintendent of 
 the banking department for notes for circulation to be 
 issued to any corporation or joint-stock associatiqn for 
 banking purposes, or individual banker, shall be stocks of 
 this State and of the United States, in the followiiig 
 proportions, that is to say, not to exceed two-thirds per 
 centum ii^ United States stocks, and not less than one-third 
 per centum in stocks of this State; both stocks to be 
 equal to or be made equal to stocks yielding interest at the 
 rate of six per centum per annum ; and the securities now 
 held by the bank department, so far as the same consist of 
 United States stocks and stocks of this State, may be ad- 
 justed on the application of any party, concerned, so as to 
 be in accordance with the provisions of this section. 
 
 § 2. This act shall take effect immediately. 
 
BANKING CORPORATIONS. 208ee 
 
 ACT OF MAY 2d, 1863. 
 
 (LAWS 1863, CHAP. Sl2, P. 631.) 
 
 Ak Act to amend an act entitled "An act to enforce the 
 responsibility of stockholders in certain ha/iiking cor- 
 porations and assooiatAons as prescribed hy the Consti- 
 tution, and to provide for the prompt payment of de- 
 mands against such corporations and associations" 
 passed April fifth, eighteen hwndred and forty-nine. 
 Passed May 2, 1863. 
 
 The People of the State of New Yorh, represented in^ Sen- 
 ate and Assemhly, do enact as follows : 
 
 § 1. In case any stockholder of any corporation or asso-^!^""?^^^ 
 elation mentioned In the act entitled " An act to enforce deSSf '" 
 the responsibility of stockholders in certain banking cor- 
 porations and associations as prescribed by the Constitu- 
 tion, and to provid6 for the prompt payment of demands 
 against such corporations and associations," passed April 
 fifth, eighteen hundred and forty-nine, against whom judg- 
 ment has been or shall be recovered, pursuant to the pro- 
 visions of the said act, shall not be a resident of this State 
 at the time of the confirmation of the referee's report and 
 appointment provided by said act, an action may be com- 
 menced in the name of the receiver of such corporation or 
 association, or of the assignee of such judgment, for the 
 recovery of the aniount thereof, with interest, and in such 
 action the order of confirmation of such report and appor- 
 tionment shall be presumptive evidence of the liability of 
 
208^ SPECIAL STATUTES APPLICABLE TO 
 
 such stockholder for the amount in and by such report and 
 apportionment found chargeable against him, with the 
 interest thereon. 
 Power of § 2. Such receiver shall have power, under the order of 
 
 receiver to 
 
 with*sTo"k-° the supreme court of the district in which he shall reside, 
 OTde?'™'''' to compromise and settle with any stockholder of such cor- 
 
 court. 
 
 poratibn or association, the amount of any judgment which 
 has been or shall be recovered against him as such stock- 
 holder -under the provisions of the act hereby amended, 
 upon such terms and conditions as shall be prescribed by 
 such order, and thereupon to discharge such judgment. 
 No such order shall be granted, except upon ten days' no- 
 tice of the application therefor to be given to the stock- 
 holders and creditors who shall have appeared in the pro- 
 . ceeding in which such judgment was recovered, or their 
 attorneys, 
 stookhoia- 8 3_ Such stockholders and creditors, or any of them, 
 
 ersandcred- '-> 7 j j 
 
 poseOTderr may appear before the court on the making of said motion, 
 and oppose the same. Ifor shall such order be granted, 
 unless it shall appear that an execution has been issued 
 against the property of said judgment debtor to the sheriff 
 of the county where said judgment debtor resides, or has 
 
 de??o*be dJ^ a place of business; or, if said judgment debtor do not 
 
 nied, 
 
 reside in the State, or is a foreign corporation, to the sheriff 
 of the county whei-e the said order for the confirmation of 
 the report of said referee has been filed, and that said exe- 
 cution has been returned unsatisfied in whole or in part. 
 Code ap. § 4. The provisions of chapter two of title nine of part 
 
 plied. 
 
 two of the Code of Procedure shall be applicable to judg- 
 ments against stockholders of such corporations and asso- 
 ciations, and which have been or shall be recovered under 
 the provisions of the act hereby amended, and the execu- 
 
BANKING CORPORATIONS. 208gg 
 
 tions issued thereon, and all the provisions of law for the 
 enforcement and collection of judgments in civil actions 
 are hereby made applicable to such judgments and execu- 
 tions. 
 
 § 5. Such receiver shall have power and authority, Judgment 
 under an order of a justice of the supreme court, to sell at 
 public auction any judgment which has been or shall be 
 recovered against such stockholder, after such notice, and 
 upon such terms and conditions as shall be prescribed by 
 such justice. 
 
 §6. The judgments recovered pursuant to the provi- Dookeong 
 sions of the act hereby amended may be docketed in any anaVT™ 
 
 ttiereof. 
 
 county of this State, upon filing a transcript thereof, and 
 shall thereupon be a lien upon the real estate and chattels 
 real of the persons against whom the same shall have been 
 recovered, situate in any county in which the same shall 
 have been docketed, in the same manner as a judgment 
 recovered in a civil action upon personal service of process, 
 and may be enforced by execution against real and per- 
 sonal property, in the same manner as such judgment. 
 
 § 7. Such receiver, upon obtaining leave by an ordra' ^juoj „ 
 of a justice of the supreme court, after the return of exe- " *'°""' 
 cution unsatisfied upon any judgment recovered pursuant 
 to the provisions of the act hereby amended, against a 
 stockholder being a non-resident of this State, may bring 
 an action in any court having jurisdiction of the person of 
 such non-resident stockholder, to enforce his liability as 
 such stockholder ; and in case any such non-resident stock- 
 holder shall have deceased, such action may be brought 
 against his personal representatives. 
 
 § 8. This act shall take effect immediately. 
 
 18t 
 
APPENDIX 
 
 14 
 
APPENDIX. 
 
 GENEEAL BANKING LAW OF 1838, 
 
 AB AITEEED BT S0BSEQUBNT LEGISLATION. 
 
 Original Section 1. The comptroller is hereby required comptroi- 
 to cause to be engraved and printed in the best manner to j^ea t^prtot 
 guard against counterfeiting, such quantity of circulating "iroiiatmg 
 notes in the similitude of bank notes, in blank of the dif- touitude of 
 ferent denominations authorized to be issued by the incor-''™^'!''''"' 
 porated banks of this State, as he may from time to time 
 deem necessary to carry into effect the provisions of this 
 act, and of such form as he may prescribe ; such blank cir- 
 culating notes shall be countersigned, numbered and regis- 
 tered in proper books to be provided and kept for that 
 purpose in the office of said comptroller, under his direc- 
 tion, by such person or persons as the said superintendent 
 shall appoint for that purpose, so that each denomination 
 of such circulating notes shall bear the uniform signature 
 of such register, or one of such registers. \As amended iy 
 § 6, p. 132, ante. See also, § 1, p. 81, ante^ 
 
 Original Section 2. Whenever any person or associa-* stocks of 
 tion of persons formed for the purpose of banking, under be'tSl^ 
 the provisions of this act, shall lawfully transfer to the'«^' 
 comptroller any. portion of the public stock, issued or to be 
 issued by this State, such person or association of persons, 
 sball be entitled to receive from the comptroller an equal 
 amount of such circulating notes of different denomina- 
 tions, registered and countersigned as aforesaid ; but such 
 public stock shall in all cases be, or be made to be, equal 
 to a stock of this State producing six per cent, per annum ; 
 and it shall not be lawful for the comptroller to take such 
 stock at a rate above its par value, nor above its current 
 
212 APPENDIX. 
 
 market value. [As amended by %1, p. 113, ante, cmd § 1, 
 j[)p. 170 — 171, ante. See also, § 2, p. 82, ante.'] 
 
 (a) The provisions of the said second section [the 
 amended § last above'] shall not be construed to prevent 
 the stocks now held [June 3d, 1840] by the comptroller 
 nnder the act hereby amended, from being hereafter trans- 
 ferred and received by him at their market value in the 
 same manner as though this act had not been passed. (§ 2 
 of Act May li, 1840, p. 113, ante.) 
 stocks of (J) The comptroller is hereby authorized to receive and 
 StatS"**^ hold all stocks of the United States already deposited in his 
 office, as security for the circulating notes issued, or that 
 United states may be issued to any banking association or individual 
 received. ° banker on the security of said stocks, in the same manner 
 and with the like effect as if they were stocks of this State. 
 [§ 1, of Act of March 16th, 1844,^. 142, ante.'] 
 NewYork (c) The stocks which banking associations or individual 
 stocks. bankers, now or hereafter to be organized under the provi- 
 sions of the act " To authorize the business of banking," 
 passed April 18, 1838, and the amendments thereto, shall 
 hereafter deposit with the comptroller, shall be New York 
 State stocks, in all cases to be or to be made to be equal to 
 stock producing six per cent, per annum, or at least one 
 half the amount so deposited shall be in the stocks of the 
 State of New York, as before mentioned, and not exceed- 
 stocksoftheing onc-half in the stocks of the United States, in all cases 
 ^- ^* to be or to be made to he equal to a stock producing an 
 interest of six per cent", per annum ; and it shall not be 
 lawful for the comptroller to take such stocks at a rate 
 above their par value or above their current market value. 
 [§ 1 of the Act of April 10th, 1849, pp. 170— 171, ante^, 
 Counter- Origmol Section 3. Such persons or association of 
 oSr^aathS persons are hereby authorized, after having executed and 
 Sne^&c.as'^^g^®*^ ^^'^^ circulating notes in the manner required by 
 money. law to make them obligatory promissory notes payable on 
 demand, at the place of business within this State of such 
 person or association, to loan and circulate the same as 
 money, according to the ordinary course of banking busi- 
 ness as regulated by the laws and usages of this State. [See 
 § 3, p. 82, aMe : also. Note 30, p. 85, ante : also, § 35, 
 a/nd Note 14, p. 38, ante, and § 4 and Note 51, p. 114 
 ante.] 
 When and Original Section 4. In case the maker or makers of 
 SSStes"' any such circulating note or notes, countersigned and reg- 
 testei* ^"'' istered as aforesaid, shall at any time hereafter, on lawful 
 
APPENDIX 213 
 
 demand, during tlie usual hours of business, between tlie 
 hours of ten and three o'clock, at the place where such note 
 or notes is or are payable, fail or refuse to redeem such 
 note or notes in the lawful money of the United States, the 
 holder of such note or notes making such demand, may 
 cause the same to be protested, in one package, for non- 
 payment, by a notary public, under his seal of office, in the 
 usual manner ; unless the president, cashier or teller of such 
 bank shall offer to waive demand and notice of tlie pro- 
 test, and shall in pursuance of such offer, make, sign and 
 deliver to the party making such demand, an admission, 
 in writing, stating the time of the demand, the amount de- 
 manded, and the facts of the non-payment thereof; and the 
 comptroller, on receiving and filing in his office such ad- 
 mission or protest, together with such note or notes, shall 
 forthwith give notice in writing to the maker or makers of 
 such note or notes, to pay the same ; and if he or they shall pj^edhiS'^ 
 omit to do so for fifteen days after such notice, the comp- "y comptroi- 
 troUer shall immediately thereupon (unless he shall be sat-notpaSfi? 
 isfied that there is a good and legal defence against the ^''^^ '*°^^- 
 payment of such note or notes) give notice in the state 
 paper, that all the circulating notes issued by such person 
 or association will be redeemed out of the trust funds in 
 his hands for that purpose, and the comptroller shall be 
 required to apply the said trust funds belonging to the 
 maker or makers of such notes, to the payment pro-rata, 
 of all the circulating notes put in circulation by the 
 maker or makers of such dishonored notes, pursuant to 
 the provisions of this act, and adopt such measures .for the 
 payment of such notes as will, in his opinion, most effec- 
 tually prevent loss to the holders thereof. [As amended 
 by § 1, p. 124, ante, and by § 4, ^. 188 — 190, ante. /See § 
 4, p. 86, ante.] 
 
 Original Section 5. The comptroller may give to any Powers of 
 person or association of persons so transferring stock jn^^^'^^y^ 
 
 ^ „., • • ^ J? il • i. ^ xj. be given to 
 
 pursuance ot the provisions ot this act, powers ot attorney owners to 
 to receive interest or dividends thereon, which such person Se on' 
 or association may receive and apply to their own use ; '^'"'**™'^ 
 but such powers may be revoked upon such person or as- when to 
 sociation felling to redeem the circulating notes so issued, ^^ "™^«'^ 
 or whenever, in the opinion of the comptroller, the prin- 
 cipal of such stock shall become an insufficient securi- 
 ty; and the said comptroller, upon the application of the 
 owner or owners of such transferred stock in trust, may, in 
 his discretion, change or transfer the same for other stocks 
 
214 APPENDIX. 
 
 stbcksmay of the kinds before specified in this act, or may re-transfer 
 o?re-traim. the Said stocks, or any part thereof, or the mortgages, or 
 ferred. ^^^^ ^j' ^j^gj^^^ hereinafter mentioned and provided for, upon 
 receiving and canceling an equal amount of such circula- 
 ting notes delivered by him to such person or association, 
 in such manner that the circulating notes shall always be 
 secured in full either by stock or by stocks and mortgages, 
 as in this act provided. [See § 5, ^. 87 — 88, ante.] 
 Bills how to Original Sect/ion 6. The bills or notes so to be counter- 
 be Btampe gjgj^g^^ ^^^ ^^ payment of which shall be so secured by 
 the transfer of public stocks, shall be stamped on their 
 face, " Secured by the pledge of public stocks." [See § 6, 
 p. 88, ante.'] 
 Bonds and Original Section 7. Instead of transferring public 
 be'tekeiTfor' stocks as aforcsaid, to secure the whole amount of such 
 notesdeiivOT- biHs or notes, it shall be lawful for such person or associa- 
 ^^- tion of persons, in case they shall so elect before receiving 
 
 any of the said bills or notes, to secure the payment of one- 
 half of the whole amount so to be issued, by transferring, 
 to the comptroller bonds and mortgages upon r,eal estate, 
 bearing at least seven per cent, interest, of this State, pay- 
 How wiis able annually or semi-annually; in which case all such 
 ta suohTasef biUs or notes issued by the said person or association of 
 persons, shall be stamped on their face, " Secured by 
 pledge of public stocks and real estate." [As amended h/ 
 I 2 rfAct of April 12, 1848, p. 153, ante. See also, § 7, 
 p. 88, ante.] 
 Character Original Section 8. Such mortgages shall be only upon 
 gf,^"^'!"®**' improved, productive, unincumbered lands within this 
 TOiae of State, to an amount not exceeding two-fifths the value of 
 Moertained. Said lands, independently of any buildings thereon ; and 
 the comptroller shall prescribe such regulations for as- 
 certaining the title and the value of such land as he may 
 deem necessary ; and such mortgages shall be payable 
 . within such time as the comptroller may direct. [As 
 amended hy % % of Act of April 12, 1848, p. 153, ante. 
 See also, § 8, p. 88, ante.] 
 seouritiea {d) The securitics which banking associations or indi- 
 ited'vrttr^' ■^■idual bankers hereafter to be organized under the provi- 
 comptrouer. gions of the abovc recited act, passed April 18th, 1838, 
 and the amendments thereto, shall deposit with the comp- 
 troller as security for the redemption of circulating notes 
 issued to them, by the said comptroller, shall be New 
 York state stocks, in all cases to be or to be made to be 
 equal to a stock producing six per cent, per annum ; and 
 
APPENDIX 215 
 
 it shall not be lawful for the eomptroUer to take such 
 stocks at a rate above its par value or above its current 
 market value ; or the securities shall not be less than one- 
 half in such stocks and one-half in bonds and mortgages 
 upon improved, productive, unincumbered lands in this 
 State, exclusive of any buildings thereon ; said mortgages 
 bearing an interest of not less than seven per cent, per 
 annum, and to an amount not exceeding two-fitths the 
 value of said lands. [§ 2 of Act of April 12, 1848,^. 153, 
 
 (e) No mortgage hereafter to be deposited as aforesaid, no one 
 shall be for a greater amount than five thousand dollars ™e°d^MM 
 each. [§ 3 o/" Act of April 12, 1848, p. 153, ante : /Jee exceeding 
 also, § 10, p. 184, ante.'\ *^'""°- 
 
 (f) The provisions of the second section of the act. Mortgages 
 chapter three hundred and forty of the laws of eighteen ^owtoTje 
 hundred and forty-eight [§ 2, p. 153, ant6\, amending the 
 
 "Act authorizing the business of banking," shall extend 
 and be applicable to banking associations and individual 
 bankers organized before the passage of the said chapter 
 three hundred and forty, as well as to those organized sub- 
 sequently ; but no one mortgage of lands shall hereafter 
 be received as security for circulating bills to an amount 
 
 greater than five thousand dollars ; and any mortgage 
 eretofore received or hereafter received for circulating 
 bills, may be held by the superintendent of the banking 
 department for the full nominal amount thereof notwith- 
 standing a less amount of bills may have been or shall be 
 delivered upon the deposit of such mortgage, and the 
 whole nominal amount of such mortgage may be collected 
 by any purchaser thereof in case it shall be necessary to 
 sell such mortgage at its nominal amount to meet the lia- 
 bilities of the banking association or banker by whom it 
 was deposited ; but the same may be sold as for the amount 
 of bills delivered upon its deposit when there is no defici- 
 ency of other means to meet the said liabilities. [§ 10 of 
 Act of April 12, 1851, p. 184, ante.'] 
 
 {g) It shall be lawful for the president of any banking certain 
 association, or any individual banker, to make or execute ^P^^i^''^^;' 
 bonds and mortgages, direct to the comptroller, to secure oomptroUer. 
 the payment of circulating bills or nptes issued under the 
 act to authorize the business of banking ; and all such bonds 
 and mortgages heretofore received by the comptroller for 
 such purpose, shall be valid. [§ 9 of Act of May 14, 1840, 
 p. 120, cmte.] 
 
216 APPENDIX. 
 
 When Original Section 9. The comptroller may, in his dis- 
 
 morte^es cretioii, reassign the said bonds and mortgages, or any of 
 Ss^^edJ*' them, to the person or association who transferred the same, 
 on receiving other approved bonds and mortgages of equal 
 Proceed- amount ; and when any sum of the principal of the bonds 
 prfnotaLTof and mortgages transferred to the comptroller shall be paid 
 trnstfandis ^q jjim ]ie snall notify the person or association that trans- 
 troiier. ferrcd the bonds and mortgages oi such payment, and 
 may pay the same to such person or association on receiv- 
 ing other approved bonds and mortgages of equal amount. 
 [See % 9, p. 89, cmte.'] 
 mratemade W Every assignment of any bond or mortgage ex- 
 by oomptroi- ecutcd by the comptroller under his official seal, ip pur- 
 recorded. ° suance of the provisions of the said act, or which'inay be 
 otherwise authorized by law, may be recorded in the same 
 manner and with the like effect as a deed regularly ac- 
 knowledged or proved before any officer authorized by law 
 to take the proof and acknowledgment of deeds. [§ T o/" 
 Act of May 26, 1841, p. 133, ante.'] 
 °t™t" to Original Section 10. The person or association of per- 
 recLv^nter-sons assigning such bonds and mortgages to the comptroller 
 Mrwn''^s. may receive the annual interest to accrue thereon, iinless 
 default shall be made in paying the bills or notes to be 
 countersigned as aforesaid, or unless in the opinion of the 
 comptroller the bonds and mortgages, or stocks so pledged 
 shall become an insufficient security for the payment of 
 such bills or notes. [See § 10, p. 89, ante.] 
 ^hen Original Section 11. In case such person or association 
 
 ?itiefto be"' of pcrsons shall fail or refuse to pay such bills or notes on 
 soidandhoT.^gjjjg^jj^ in the manner specified in the fourth section of 
 this act, the comptroller, after the ten days' notice there- 
 in mentioned, may proceed to sell, at public auction, the 
 public stock so pledged or the bonds and mortgages so 
 assigned, or any or either of them, and out of the proceeds 
 Proceedstoof such Sale shall pay and cancel the said bills or notes, 
 the''payme^t default in paying which shall have been made as afore- 
 of bills. gg^j^ . Ij^j. nothing in this act contained shall be considered 
 as implying any pledge on the part of the State for the 
 payment o± said bills or notes beyond the proper appli- 
 cation of the securities pledged to the comptroller for 
 their redemption. [See § 11, p. 89, ante.] 
 piedgedse- Original Section 12. The public debt and bonds and 
 heid'exdu-''^ mortgages to be deposited with the comptroller by any such 
 de'mptiOT of' person or association, shall be held by him exclusively for 
 circiflatiDg the redemption of the bills or notes of such person or asso- 
 
 notes. ^ ■*■ 
 
APPENDIX. 2 IT 
 
 elation put in circulation as money, until the same are 
 paid. [See § 12, p. 90, cmte.'] 
 
 (*) Whenever the securities deposited for the redemp- -vv^henia- 
 tion of circulating notes, shall in the opinion of the comp- terest ana 
 troUer become insufficient for that purpose, he may receive may be re- 
 the dividend on all stocks as well as the interest on bonds ^"'^' 
 and mortgages, and shall deposit the same in some safe 
 bank or banking association in the city of Albany, in his 
 name, in trust for the association or banker to whom the 
 same may belong. The deposit to be made on such terms 
 and at such rate of interest as the comptroller may deem 
 most conducive to the interest of such association oroutodT^^*' 
 banker, and to be withdrawn and paid over, whenever in 
 the opinion of the 'comptroller the securities of such asso- 
 ciation or banker shall be sufficient to warrant it. [§ 7 of 
 Act of May 14, 1840,^. 117, ante.'] 
 
 Original Section 13. The plates, dies and materials to pj^^j^^^ ^^^ 
 be procured by the comptroller, for the printing and mak- to remain in 
 ing of tlie circulating notes provided for hereby, shall re-thfoomp- 
 main in his custody and under his direction ; and the ex- '™''"" 
 penses necessarily incurred in executing the provisions of 
 this act, shall be audited and settled by the comptroller, in exSng 
 and paid out of any moneys in the treasury not otherwise p"i"°'' ^"^ 
 appropriated ; and for the purpose of reimbursing the 
 same, the said comptroller is hereby authorized and re- 
 quired to charge against and receive from such person or 
 association applying for such circulating notes, such rate 
 per cent, thereon as may be sufficient for that purpose, 
 and as maybe just and reasonable. [See § 13, ^. 90, ante.] 
 
 OrigvnaZ Section 14. It shall not be lawful for the coaiptjoj. 
 comptroller, or other officer, to countersign bills or notes'" not to 
 lor any person or association oi persons, to an amount in wiis beyond 
 the aggregate exceeding the public debt, or public debtp^"^"™ 
 and bonds and mortgages at their value, as provided in 
 the second section of this act, deposited with the comp- penalties 
 troll er by such person or association ; and any comptroller ^<«'™i|^™ 
 or other officer who shall violate the provisions of this sec- vision. 
 tion shall, upon conviction, be adjudged guilty of a misde- 
 meanor, and shall he punished by a fine not less than five 
 thousand dollars, or be imprisoned not less than five years, 
 or by both such fine and imprisonment. [See § 14, p. 91, 
 am,te:] (63) 
 
 (63) By the Act of April 12, 1861, Chap. 164, § 8, it was enacted that 
 the proTisions of the fourteenth section of the General Bank Act of 18S8 
 
218 
 
 APPENDIX 
 
 Mntiiated 0) It shaR be the duty of the comptroller to receive 
 ™^»^»y'>« mutilated circulating notes issued by him, and to deliver 
 in lieu thereof other circulating notes to the same amount. 
 [§ 5 of Act of May 14, 1840, ^. 115, ante.] ■ 
 
 Banking 
 corporations 
 maybe 
 formed. 
 
 ASBOcia- 
 tions shall 
 make a cer- 
 tificate. 
 Contents 
 thereof. 
 
 How 
 proved, re- 
 corded, and 
 filed. 
 
 Oerliflcates 
 may be used 
 as evidence. 
 
 Original Section 15. Any number of pessons may as- 
 sociate to establish offices of discount, deposit and circula- 
 tion, upon the terms and conditions and subject to the lia- 
 bilities prescribed in this act ; but the aggregate amount 
 of the capital stock of any such association shall not be less 
 than one hundred thousand dollars. [See § 15, p. 91, amie.'] 
 
 Original Section 16. Such persons under their hands 
 and seals, shall make a certificate which shall specify : 
 
 1. The name assumed to distinguish such association^ 
 and to be used in its dealings ; 
 
 2. The place where the operations of discount and de- 
 posit of such association are to be carried on, designating 
 the particular city, town, or village ; 
 
 3. The amount of the capital stock of such association, 
 and the number of shares into which the same shall be 
 divided ; 
 
 4. The names and places of residence of the share- 
 holders, and the number of shares held by each of them 
 respectively ; 
 
 5. The period at which such association shall commence 
 and terminate ; which certificate shall be proved or ac- 
 knowledged and recorded in the office of the clerk of the 
 county where any office of such association shall be estab- 
 blished, and a copy thereof filed in the office of the super- 
 intendent of the banking department. [See § 16, p. 92, 
 ante, as amended lyy § 1, p. 199, ante^ 
 
 Original Section 17. The certificate required by the 
 last preceding section to be recorded and filed in the offi- 
 ces of the clerk of the county and superintendent of the 
 banking department, as aforesaid, or copies thereof, duly 
 certified by either of those officers, may be used as evi- 
 dence in ail courts and places for and against any such as- 
 sociation. [As amended ly § 1, p. 199, am,te.'] 
 
 shall extend to the superintendent of the banking department and the offi- 
 cers and clerks employed in that department, , See § 8, pp. 182, 183, ante. 
 
 By § 3, p. l%Q,ante, the powers, duties, obligatipns and penalties con- 
 ferred or imposed by law upon the comptroller, or to which the comptroller 
 is subject in relation to banks, <&o., are so modiiied as to be transferred to 
 and conferred upon the superintendent of the banking department. 
 
APPENDIX. 219 
 
 Qc^ All copies of certificates of association, under and Toteflied 
 ty virtue of the general free banking law and the actspartmmt*' 
 amendatory thereof, filed in the office of the secretary of 
 state, shall be transferred to the banking department ; and 
 hereafter all copies of certificates of association, formed 
 pursuant to such laws, shall be filed in the office of the 
 superintendent of the banking department, who shall fur- 
 nish, on payment of the same fees now chargeable in the 
 secretary's office, all certificates in relation thereto, as if 
 the same had been originally filed in his office. All the 
 powers conferred upon, or duties required by any law of 
 this State to be performed by the seci-etary of state in rela- 
 tion to banking associations, shall hereafter be performed 
 by the superintendent of the banking department. [§ 1 of 
 Act of April 10, 1854, j>. 199, ante!] 
 
 Original Section 18. Such association shall have Expre^ 
 power to cany on the business of banking, by discounting aodauons. "*' 
 bills, notes, and other evidences of debt ; by receiving 
 deposits ; by buying and selling gold and silver bullion, 
 foreign coins and bills of exchange, in the manner specified 
 in their articles of association for the purposesauthorized by 
 this act ; by loaning money on real and personal security ; 
 and by exercising such incidental powers as shall be ne- 
 cessary to carry on such business ; to choose one of their 
 number as president of such association, and to appoint a 
 cashier, and such other officers and agents as their business 
 may require, and to remove such president, cashier, officers 
 and agents at pleasure, and appoint others in their place. 
 [See § 18, ^. 94. Ifote 39, pp. 95—97, ante.] 
 
 {I) No association of persons shall commence the busi- ^. -^f ""jj^j^ 
 ness of banking under said act until such association shall dividual 
 have deposited with the comptroller the securities required ^epoBTseon- 
 by law, to the amount of one hundred thousand dollars •,^|j'j^'JJ'^*j, 
 and no individual banker or bankers shall commence the 
 business of banking under said act, or receive circulating 
 . notes under the same, until such individual banker or 
 bankers shall have deposited with the comptroller the se- 
 curities required by law, to the amount of fifty thousand 
 dollars. _ [§ 1 of Act of May 6, 1844, p. 142, ante.] 
 
 Original Section 19. The shares of said association shares to 
 shall be deemed personal property, and shall be transfer- pj,^ "rTy" ard 
 able on the books of the association in such manner as may i>"w tran'sfcr- 
 be agreed on in the articles of association ; and every per- " 
 son becoming a shareholder by such transfer, shall, in pro- ^^ ^^ 
 portion to his shares, succeed to all the rights and liabili- shatlhoidefs. 
 
220 APPENDIX. 
 
 No change ties of prior shareholders; and no change shall be made 
 impair right in the articles of association by which the rights, remedies 
 "'taOTi'auon 01" security of its existing creditors shall be weakened or 
 "ot^^ssoived impaired. Such association shall not be dissolved by the 
 eta, of share- death or insanity of any of the shareholders therein. iSee 
 holders. g j9, ^. 96, ante.] 
 
 Articles Original SecUon 20. It shall be lawful for any associ- 
 
 may provide ation of pci'sons Organized under this act^ by their articles 
 otapitaU'c. of association, to provide for an increase of their capital 
 and of the number of the associates, from time to time, as 
 they may think proper. [See § 20, p. 98, ante^ 
 Contracts Original Section 21. Contracts made by any such as- 
 how signed.' sociatioD, and all notes and bills by them issued and put 
 in circulation as money, shall be signed by the president 
 or vice-president and cashier thereof; and all suits, actions 
 Andsnits, and proceedings brought or prosecuted by or on behalf of 
 cQtedr""" such association, may be brought and prosecuted in the 
 name of the president thereof; and no such suit, action, or 
 proceeding shall abateby reason of the death, resignation 
 or removal from office of such president, but may be con- 
 tinued and prosecuted, according to such rules as the courts 
 of law and equity may direct, in the name of his successor 
 in office, who shall exercise the powers, enjoy the rights, 
 and discharge the duties of his predecessor. \_See § 21, p. 
 98, ante.l 
 Actions Original Section 23. All persons having demands 
 
 Sn^eat^tSt against any such association, may maintain actions against 
 president of the president thereof; which suits or actions shall not abate 
 Nottoahate hy Tcason of the death, resignation or removal from office 
 by his death of gudj president, but may be continued and prosecuted 
 
 or removal. , • -. ^ , ■ i. t • '' jii-i^ ^ i 
 
 to judgment agamst his successor; and all judgments and 
 enforcl™'"' decrccs obtained or rendered against such president for 
 against joint any debt or liability of such association, shall be enforced 
 only." ^ only against the j'oint property of the association, and which 
 
 property shall be liable to be taken and sold by execution 
 
 under any such judgment or decree. \See § 22, p. 99, 
 
 a7ite.'] 
 sharehoid- Original Section 23. 'No shareholder of any such asso- 
 somUyCbie ciatiou shall be liable in his individual capacity for any 
 uniessarti- contract, debt, or engagement of such association, unless 
 ciaiion make the articles of association by him signed, shall have de- 
 themso. glared that the shareholder shall be so liable. [See ^ 23, 
 
 p. 99, an.te.'] (64) 
 
 (64) See the Act of April 5th, 1849, § 1, p. 156, ante. By 'this act it is 
 
APPENDIX. 221 
 
 Original Section 24. It shall be lawful for such asso- For what 
 ciation to purchase, hold and convey real estate for the Im°^1 
 following purposes : 3.^ ™^ 
 
 1. Such as shall be necessary for its immediate accom- 
 modation in the convenient transaction of its business ; or, 
 
 2. Such as shall be mortgaged to it in good faith, by 
 way of security for loans made by, or moneys due to, such 
 association ; or, 
 
 3. Such as shall be conveyed to it in satisfaction of 
 debts previously contracted in the course of its dealings ; 
 or, 
 
 4. Such as it shall purchase at sales under judgments, 
 decrees, or mortgages held by such association. 
 
 The said association shall not purchase, hold or convey Prohibited 
 real estate in any other case or for any other purpose ; and any'^oth/r' 
 all conveyances of such real estate shall be made to theP"''P™«- 
 president or such other officfir as shall be indicated for how^ oon^''"^' 
 that purpose in the articles of association ; and which "^y^ 
 president or officer, and his successors, from time to time 
 
 ii» i j_i 7»'/» !• Sale free 
 
 may sell, assign and convey the same, tree Irom any claim fromany 
 thereon, against any of the shareholders, or any person "'^^^Jjj^^^^' 
 claiming under them. [See § 24, cmd Note 41, p. 100, shareholders. 
 amte^ 
 
 Original Section 25. Upon the application of creditors, when chan- 
 or shareholders, of any such association, whose debts or examiratb " 
 shares shall amount to one thousand dollars, and stating "' "ff?''^ "f 
 facts, verified by affidavit, the chancellor may, in his dis- 
 cretion, order a strict examination to be made by one of 
 the masters of his court, of all the affairs of such associa- 
 tion, for the purpose of ascertaining the safety of its in- 
 vestments, and the prudence of its management ; and the 
 result of every such examination, together with the opinion be^p^ubiisS 
 of the master, and of the chancellor thereon, shall be pub- 
 lished, in such manner as the chancellor shall direct, who 
 shall make such order, in respect to the expenses of such 
 examination and publication, as he may deem proper. [See 
 § 26, jp. 101, am,te:\ 
 
 Origvnal Section 26, re/pealed ly %^ of the Act of May 
 26, 1841. [See § 26, pp. 102—104, amte: also, § 5, p. 192, 
 anU.'\ (65) 
 
 provided, that stockholders of any corporation or joint stock association for 
 banhing purposes, issuing bank notes or any kind of paper credit.s to circu- 
 late as money, after January 1, 1850, shall be individually responsible, equ- 
 ally and ratably. (See § 1, p. 155, ante.) 
 
 (65) But see § 3, and § i, p. 138— 139, a»<c; also, §§ 1, 2, 3, p. 146— 
 
222 APPENDIX. 
 
 Original Section 27. If such association shall neglect 
 to make out and transmit the statement required in the 
 last preceding section (§ 26), for one month beyond the 
 period when the same is required to be made, or shall vio- 
 late any of the provisions of this act, such association may 
 be proceeded against, and dissolved by the court of chan- 
 cery, in the same manner as any moneyed corporation may 
 be proceeded against and dissolved. [See § 27, p. 104, 
 ante.l (66) 
 If capital Original Section 28. If any portion of the original cap- 
 no'divSdsit^'l of any such association shall be withdrawn for any 
 to be made, purpose whatever, whilst any debts of the association re- 
 main imsatisfied, no dividends or profits on the shares of 
 the capital stock of the association shall thereafter be 
 made, until the deficit of capital shall have been made 
 good, either by subscription of the shareholders, or out of 
 the subsequently accruing profits of the association ; and 
 Penalty for if it shall appear that any such dividends have been made, it 
 ™*™? ^wi-gliall be the duty of the chancellor to make the necessary 
 case. orders and decrees for closing the afiairs of the association, 
 
 and distributing its property and eff'ects among its cred- 
 itors and shareholders. [See § 28 and note 45,^. 104, 
 ante.li 
 Damages for Original Section 29. Such association or individual 
 menr^' banker shall be liable to pay the holder of every bill or 
 note put in circulation as money, the payment of which 
 shall nave been demanded and refused, at the banking 
 house or usual place of business of such association or 
 banker, damages for non-payment thereof in lieu of inte- 
 rest at and after the rate of seven per cent, per annum, 
 from the time of such refusal until the payment of such 
 evidence of debt and damages thereon. [As amended hy 
 %^ of the act of April 17, 1851 {p. 190, ante) ; see, also, 
 I 29; jp. 105.) 
 
 Original Section 30. The president and cashier of 
 namSof cvery association, formed pursuant to the provisions of 
 to be'ki^t" ^-^i^ ^°*' si'^il) ^^ ^il times, keep a true and correct list of 
 and where' the uamcs of all the shareholders of such association, and 
 ^^' shall file a copy of such list in the office of the clerk of the 
 
 county where any office of such association may be loca- 
 
 150, ante: also, §§ 1, 2, p. IVS, ante: also, § 9, p. 183, ante: and also, §§ 
 1, 2, p. 196—196, ante. 
 
 (66) See Note 46, p. 104, ante, and the statutes and sections there cited. 
 
APPENDIX. 223 
 
 ted, and also, in the oflBce of the comptroller, on the first 
 Mondays of January and July, in every year. [See § 30, 
 p. 105, ante.] 
 
 Original Section 31. It shall not be lawful for anythS!$iow 
 association formed under the provisions of this act, to make not to be 
 any of its bills or notes of a denomination less than one Se atany' 
 thousand dollars, to be put in circulation as money, pay- ^I'^mo?" 
 able at any other place than at the office where the busi- JJ|,°„''^°'°' 
 ness of the association is carried on and conducted. [See 
 § 31 and note i7,p. 105 ante; also, § 1 p. 75, ante.l 
 
 Original Section 32. The Legislature may at any time 
 alter or repeal this act. [See § Sip. 106, ante.'] 
 
 Original Section 33. Repealed l>y%& of the act of May 
 14, 1840 (p. 116, ante). See § 33,^. 106, ante. 
 
 Note. — The provisiona of statutes, passed subsequently to 1838, relating 
 exclusively to individual bankers, are omitted in the above statement of 
 amendments to the General Banking Law. 
 
224 
 
 APPENDIX. 
 
 REVISED STATUTES. 
 
 CHAPTEE Xni. PAET H. TITLE IV. 
 (1 R. 8. 414—418.) 
 
 TITLE IV. 
 
 REGULATIONS CONCEROTNG THE ASSESSMENT OP TAXES ON 
 INCORPORATED COMPANIES, AND THE COMMUTATION OR 
 COLLECTION THEREOF. 
 
 Companies § 1- All moneyed or stock corporations deriving an in- 
 'ti°^«'"'™'Come or profit from their capital, or otherwise, snail be" 
 liable to taxation on their capital, in the manner herein- 
 after prescribed. (67) 
 
 § 2. The president, cashier, secretary, treasurer, or 
 deUTCr^L^- other proper officer, of every such incorporated company, 
 mentstoas- shall, On or before the first day of July in each year, make 
 and deliver to the assessors, or one of them, of the town or 
 ward in which such company is liable to be taxed, accord- 
 ing to the provisions of the sixth section of the second title 
 of this chapter, a written statement, specifying, 
 
 1. The real estate, if any, owned by such company, the 
 towns or wards in which the same is situated, and the sums 
 actually paid therefor : 
 
 2.' The capital stock actually paid in and secured to be 
 paid in, excepting therefrom the sums paid for real estate, 
 and the amount of such capital stock held by the State, 
 and by any incorporated literary or charitable institution : 
 And, 
 
 (eT) The Supreme Court, in December, 1842, and the Court of Errors, in 
 December, 1844, in The Supervisors of Niagara v. The People (4 Hill, 20, 
 and 7 Hill, 504), h^ld, that associations, formed under the General Bank- 
 ing Law, are corporations within the meaning of 1 R. S. 414, § 1, and liable 
 to taxation on their capital. 
 
 The Legislature, by the act of December 4th, 184'7 (§ 4, p. 160, anie), 
 enacted, that all individual bankers, as well as banking associations, shall 
 be subject to taxation on the full amount of actual capital paid in, or se- 
 cured to be paid in, &a. See § 4, p. 160, ante. 
 
APPENDIX. 225 
 
 3. The town or ward in which the principal office or 
 place of transacting the financial business of such com- 
 pany, is situated ; or, if there be no such principal office, 
 the town or ward in which its operations are carried on, or 
 in which it is liable to be taxed, under the provisions of 
 this chapter. 
 
 § 3. The president or other proper officer of every such ^^ to 
 company, shall also deliver to the comptroller, on or before comptroller, 
 the first day of July in each year, a written statement, con- 
 taining the same matters required by the foregoing section, 
 to be specified in the statement to be delivered to the as- 
 sessors. The statements required by this and the prece- 
 ding section of this title, shall be certified under the oath 
 of the said president or other proper officer, to be in all 
 respects just and true. 
 
 § 4. If the statements above required, or either of them, penalty, 
 shall not be furnished by any company to the assessors and 
 to the comptroller, within thirty days after the time above 
 provided, the company neglecting to furnish such state- 
 ments, or either of them, shall forfeit to the people of this 
 State, for each statement omitted to be furnished, the sum 
 of two hundred and fifty dollars : and it shall be the duty 
 of the comptroller to furnish the attorney-general with an 
 account of all companies that shall neglect to render such 
 lists, that he may prosecute for the penalties hereby im- 
 posed. 
 
 § 5. If any company, that shall be prosecuted for any g^^ t^^j^. 
 such penalty, shall pay the costs of prosecution and furnish for. 
 the statement required, the comptroller, if he shall be sat- 
 isfied that the omission was not willful, may, in his discre- 
 tion, discontinue such suit. 
 
 § 6. The assessors shall enter all incorporated compa- compnnies 
 nies from vvhich such statements sha]! have been received ^"^ assessed 
 by them, and the property of such companies, and the 
 property of all other incorporated companies, liable to tax- 
 ation in their respective towns, in their assessment rolls, in 
 the following manner : 
 
 1 . They shall insert in the first column of their assess- 
 pient rolls the name of each incorporated company in their 
 respective towns or wards liable to taxation on its capital 
 or otherwise ; and under its name they shall specify the 
 amount of its capital stock paid in, and secured to be paid 
 in, the amoimt paid by such company for real estate then 
 belonging to such company, wherever the same may be 
 situated, the amount of all surplus profits or reserved funds, 
 
 15 
 
226 APPENDIX. 
 
 exceeding ten per cent, of their capital, after deducting 
 therefrom the said amount of said real estate, and the 
 amount of its stock, if any, belonging to the State and 
 to incorporated literary and charitable institutions. {As 
 amended hy Chap. 654, Laws 1853, p. 1240.) 
 
 2. In the second column, they shall enter the quantity 
 of real estate owned by such company, and situated, within 
 their town or ward ; and in the third column, the actual 
 value thereof, estimated as in other cases. 
 
 3. In the fourth column, they shall enter the amount 
 of the capital stock of every incorporated company paid 
 in, and secured to be paid in, and of all such surplus pro- 
 fits or reserved funds as aforesaid, after deducting the sums 
 paid out for all the real estate of such company, wherever 
 the same may be situated and then belonging to it, and 
 the amount of stock, if any, belonging to the people of this 
 State and to incorporated literary and charitable institu- 
 tions. {As amended iy Chap. 654, Zaws 1853, p. 1240".) 
 
 § Y. The assessors shall insert in the cohjurmh mentioned 
 in the preceding section., the cash value of the stock of all 
 Tnanufacturing and turnpike corporations {to be ascer- 
 tained iy the assessor:, iy the sales of the stock, or in any 
 other manner), deducting therefrom the items mmtioned in 
 the preceding section ; which value, thus ascertained, to- 
 gether with the value of the real estate of sitch corporations, 
 shall constitute the amount on which the tax of such corpo- 
 rations shall he levied. {Repealed Laws 1853, Chap. 654.) 
 Preceding § 8. The provisions of the fifteenth section of the se- 
 cond title of this chapter, shall be, and are hereby ex- 
 tended to the incorporated companies in the two preceding 
 sections named ; and the president, secretary, or other pro- 
 per officer, may make the afiidavit required by said sec- 
 tion. (68) _ 
 
 § 9. If the president or other proper officer of any in- 
 corporated company named in the assessment roll shall 
 show to the satisfaction of the board of supervisors, at their 
 annual meeting, within two days from the commencement 
 
 (68) § 15. If any person, whose real or personal estate is liable to taxation, 
 shall at any time before the assessors shall have completed their assessments, 
 make affidavit that the value of his real estate does not exceed a certain 
 sum, to be specified in such affidavit ; or that the value of the personal es- 
 tate owned by him, after deducting his just debts, and his property invest- 
 ed in the stock of incorporated companies, liable under this chapter to tax- 
 ation on their capital, does not exceed a certain sum to be specified in the 
 affidavit, it shall be the duty of the assessors to value such real or personal 
 estate, or both as the case may be, at the sums specified in such affidavit, 
 and no more. (1 R. S. 392, § 15.) 
 
 section ex- 
 tended. 
 
APPENDIX. 227 
 
 thereof, by the affidavit of such officer, to be filed with the 
 clerk of the board, that such company has not been, dur- 
 ing the preceding year, in the receipt of net annual profits 
 or clear income equal to five per cent, on the capital stock 
 of any such company paid in, or secured to be paid in, 
 after deducting from the amount of their capital stock the entitiedto^ 
 assessed value of their real estate, such company shall be ™^"'^'°' 
 entitled to commute for their taxes on such capital stock 
 by paying directly to the treasurer of the county in which 
 the business of such company is transacted, a sum equal to 
 five per cent, on such net annual profits or clear income, 
 and also such further sura as shall have been assessed on 
 such roll, as the taxes on their real estate. And the as- 
 sessment of every moneyed or stock corporation, author- 
 ized to make dividends on its capital, from which no such 
 affidavit shall be received as aforesaid, shall be conclusive 
 evidence that such corporation was liable to taxation, and 
 was duly assessed. {As amended by. CJiaf. 654, Laws 
 1853, p. 1240.) 
 
 § 10. The capital stock of every. company liable to tax- whatpiop- 
 ation, except such part of it as shall have been exempted ^J'^p"^^'^"^^. 
 in the assessments under the previous sections of this title, we to taxa- 
 together with its surplus profits or reserved funds exceed- '™' 
 ing ten per cent, of its capital, after deducting the assessed 
 value of its real estate, and also the real estate of every 
 such company, shall be assessed and taxed in the same 
 manner as the other personal and real estate of the county, 
 unless such company shall be entitled to commute, as by 
 the provisions of the preceding section, and shall elect so 
 to do. {As amended by Chap. 654, Laws 1853, p. 1240.) 
 
 § 11. All companies employed wholly or principally commuta- 
 in manufaoturing^ and all marine insurance companies^^"^- 
 whose net annual income shall not exceed five per cent, on 
 the capital stock paid in, and secured to be paid in, shall 
 be entitled to commute for their taxes, by paying directly 
 to the treasurer of the county in which the business of the 
 company is transacted, five per cent, upon all such net in- 
 come made by such company during the preceding year. 
 
 § 12. AU turnpike, bridge, or canal compames, whose 
 net annual income shall not exceed five per cent, on the 
 capital stock paid in, and secured to be paid in, shall be 
 exempted from taxation. 
 
 § 13. To entitle a/ny such company to the exemption Requisites 
 aforesaid, the president and secreta/ry, or some two officers tionf"^" 
 of the company, shall make affida/vit, stating the capital 
 stock paid in, cmd secured to be paid in, together with the 
 
228 APPENDIX. 
 
 inooine and profits, and the total expenditv/res, during tTie 
 preceding year, of such company / which afpda/oit shaU he 
 delivered to the assessors of the town, at the time of making 
 their assessments. {Last three sections repealed ly Chap. 
 654. Laws 1853.) 
 
 § 14. The president, or other proper officer of each 
 company electing to commute, shall make affidavit before 
 some officer authorized to take affidavits, stating the 
 amount of such net income ; and on filing the same with 
 the clerk of the board of supervisors, at their annual meet- 
 ing, within two days from the commencement thereof, ac- 
 companied by the receipt of the county treasurer, acknow- 
 ledging the payment of the proper commutation, such 
 board of supervisors shall impose no tax on the property 
 of such company. 
 Taxes to be § 15. The amouut of taxes assessed on all incoi-porated 
 
 collected* Companies liable to taxation, and not electing to commute, 
 
 shall be set down by the board of supervisors, in the fifth 
 
 column of the corrected assessment roll, and shall form a 
 
 part of the moneys to be collected by the collector. 
 
 Duty of § 16. The board of supervisors having completed the 
 
 supervisors, assessment, shall transmit to the comptroller, with the ag- 
 gregate valuations of the real and personal estate in their 
 county, a statement, showing the names of the several in- 
 corporated companies liable to taxation in such county ; 
 the amount of the capital stock paid in, and secured to be 
 paid in, by each ; the amount of real and personal proper- 
 -ty of each, as put down by the assessors, or by them ; and 
 the amount of taxes assessed on each. In those counties 
 in which there is no such company, the boards of supervi- 
 sors shall certify such fact to the comptroller, with their 
 returns of the aggregate valuations of real and personal 
 estate. 
 Duty of § 17. The collector shall demand payment of all taxes 
 
 collector, assesscd on incorporated companies, from the president, or 
 other proper officer, of such companies, and if not paid, 
 shall proceed in the collection and payment thereof, in 
 the same manner as in other cases, and shall be liable to 
 the same penalties for the non-payment of moneys collect- 
 ed by him. And the collector's receipt shall be evidence 
 of the payment of such tax. 
 Taxes how § 1^- ^uch taxcs shall be paid out of the funds of the 
 
 p=w. company, and shall be ratably deducted from the divi- 
 
 dends of those stockholders whose stock was taxed, or 
 shall be charged upon such stock, if no dividends be after- 
 wards declared. 
 
APPENDIX. 229 
 
 § 19. If the collector shall not be able to collect any Prooeed- 
 tax assessed upon an incorporated company, he shall re-|,°f„j,t*be'"'* 
 turn the same to the county treasurer, and at the sameooifeoted. 
 time, make affidavit before the county treasurer, or some 
 other officer authorized to administer oaths, that he had 
 demanded payment thereof from the president, or other 
 proper officer of the company, and that such officer had 
 refused to pay the same, or that he had not been able to 
 make such demand, as the case may be ; and that such 
 company had no personal property, from which he could 
 levy such tax. 
 
 § 20. The county treasurer shall thereupon certify such ii,_ 
 facts to the comptroller, who shall pass to the credit of 
 such county treasurer the amount of all taxes so returned 
 and certified, as in the cases of taxes on the lands of non- 
 residents. 
 
 § 21. The comptroller shall furnish the attorney-general Attomey- 
 with the names of all companies refusing or neglecting to f^u^g^anj" 
 pay the taxes imposed on them, with the amount due from oery- 
 them respectively ; and the attorney-general shall there- 
 upon file a bill in the court of chancery, against every such 
 company, for the discovery and sec[uestration of its prop- 
 erty. 
 
 § 22. The chancellor, on the filing of such bill, or on Powers of 
 the coming in of the answer thereto, shall order such part "•'""oe"™- 
 of the property of such company to be sequestered, as he 
 shall deem necessary for the purpose of satisfying the taxes 
 in arrear, with the costs of prosecution ; and he may also, 
 at his discretion, enjoin such company, and the officers 
 thereof, from any further proceedings under tlieir act of 
 incorporation, and may order and direct such other pro- 
 ceedings as he shall deem necessary, to compel the pay- 
 ment of such tax and costs. 
 
 § 23. The attorney-general may also recover such tax, panther 
 with costs, from such delinquent company, by action in remedy, 
 any court of record in this State. 
 
230 APPENDIX. 
 
 ACT OF APRIL 26th, 1832. 
 
 (LAWS 1832, CHAP. 295, P. 509.) 
 
 An Act to prevent the abatement of sidts hj or against cor- 
 porations, in certain cases. Passed April 26, 1832. 
 
 lotTonofa''' § -'•■ ^^^^ dissolution of a corporation by a decree of the 
 corporation court of chancerj, or by the expiration of its charter, or 
 suit. ' ° " otherwise, shall not abate any suit or proceedings in favor 
 of such corporation, which shall have been pending at the 
 time of such dissolution ; but 'all such suits or proceedings 
 may be continued by the receivers who shall have been 
 appointed for such corporation by the court of chancery, 
 or by the trustees on whom the estate and effects of such 
 corporation shall have devolved, in the name of such cor- 
 poration, or in the names of such receivers or trustees, who 
 may be substituted as plaintiffs under the direction of the 
 court in which the suit shall be pending, and subject to 
 such order as the court may deem expedient, in relation to 
 the payment or security of costs. 
 Hew euita § 2. Whenever a receiver of the property or effects of 
 Sought a corporation has been appointed before its dissolution or 
 afterwards, new suits may be brought and carried on by 
 any such receivers, either in their own names or in the 
 names of the corporation for which they shall have been 
 appointed ; biit no new suit shall be brought in the name 
 of a corporation after it shall have been dissolved, or after 
 the expiration of its charter. 
 To be ecu- § 3. No suit Commenced, in the name of any sucb re- 
 tinued. ceiver, shall be abated by his removal or death ; but the 
 same may be continued in the name of his successor, or of 
 the corporation, if its charter has not expired or been dis- 
 solved, as may be directed by the court in which the suit 
 shall be pending. 
 Power of § 4. The court in which any suit or proceeding against 
 the court. ^ corporation which shall have been dissolved by the de- 
 cree of the court of chancery, or by the expiration of its 
 charter, or otherwise, shall be pending at the time of such 
 dissolution, shall have power, on the application of either 
 party thereto, to make an order for the continuance of such 
 
APPENDIX. 231 
 
 suit or proceeding, and the same may thereafter be contin- 
 ued until a final judgment or decree shall be had therein, 
 whidh shall have the like effect upon the rights of the par- 
 ties, as if such corporation had not been dissolved. 
 
 ACT OF MAY 13th, 1845. 
 
 (LAWS 1845, CHAP. 195, P. 224.) 
 
 AiT Act m relation to stocks in moneyed corporations held 
 hy the State or 'by literary or charitable institutions. 
 Passed May 13, 1845. 
 
 The People of the State of New Ywk, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. Any moneyed or stock corporation deriving profit j^^^'^^^Ji' 
 or income from its capital or otherwise, shall add to the 
 dividend which shall be declared upon any stock owned 
 by the State or by any literary or charitable society or in- 
 stitution, a sum equal to the assessment for taxes paid 
 upon an equal amount of the stock of such corporation not 
 exempt from taxation. 
 
 § 2. The provisions of the sixth subdivision of the Benefit of 
 fourth section of the first title of chapter thirteen of thefro^tai™ 
 first part of the Eevised Statutes, whereby all stocks owned "™" 
 by the State or by literary or charitable institutions, in 
 moneyed or stock corporations, are exempted from taxa- 
 tion, are hereby declared to be for the benefit of the State 
 or the institutions owning such stocks, and not for the ben- 
 efit of the said corporations. ( 69 ) 
 
 (69) 'By subdivision 6 of § 4, 1 R. S., 288, "all stocks owned by the 
 State, or by literary or charitable institutions " are exempted from taxation. 
 See, also, subdivision 2 of § 2, p. 224, ante. 
 
232 
 
 APPENDIX. 
 
 ACT OP MARCH 19th, 1852, 
 
 (LAWS 1852, CHAP. 71, P. 67.) 
 
 Ah Act to facilitate the collection of debts against corpora- 
 tions. Passed March 19, 1852. 
 
 The People of the State of New Yorh represented in 
 Senate and Assemhly, do enact as follows : 
 
 and tottis of ^ ^' "^^^ receiver heretofore appointed by any court in 
 receivers? " this State, by virtue of section thirty-six, chapter eight, 
 title four, article two, part three, of the revised statutes of 
 this State, shall have and possess all the power and author- 
 ity, and be subject to the same obligations and duties, as 
 are provided in article third, title fourth, chapter eight, 
 part third of the revised statutes of this State, in relation 
 to receivers appointed in case of the voluntary dissolution 
 of a corporation. ( 70 ) 
 Eeceivers § 2. In case the corporation, in regard to which a re- 
 aa-Hnent°on ceiver has been or shall hereafter be appointed, is or shall 
 notS.'"" ^^ ^ imjbtual inswramice compamy such receiver shall have 
 full power under the authority and sanction of the court 
 appointing him, to make all such assessments on the pre- 
 mium notes belonging to such corporation, as may be 
 necessary to pay the debts of such corporation, as by the 
 charter thereof the directors of such corporation have au- 
 asSsm^nf thority to make ; and the notice of such assessment may be 
 to be given, giyen in the same manner as is provided in the charter of 
 said company for the directors of said coinpany to give ; 
 and the said receiver shall have the like rights and reme- 
 dies, upon and in consequence of the non-payment of such 
 assessments, as are given to the corporation or the direct- 
 ors thereof by the charter of such corporation. 
 Biirrenaer § 3. Such receiver is authorized to receive a voluntary 
 po es. gyj,j,Qjj(jgj. of 2X\ policies issued by such corporation, or to 
 
 (70) See § 36, chap. 8, title 4, article 2, part three of the Revised Stat- 
 utes, p. BV, ante; also article 3, title i, chap. 8, part 3, of the Revised Stat- 
 utes, pp. 64-74, ante. 
 
APPENDIX. 233 
 
 cancel tlie policies issued by such corporation, in all cases 
 where, by the charter of such corporation, the directors 
 thereof are authorized to receive the surrender of, or can- 
 cel the policies issued by such corporation. 
 
 § 4. The court by which any such receiver may have ^^^i^^^ 
 been or shall be appointed, is authorized upon a proper to examine 
 action instituted for that purpose by such receiver, to ex- ratio^ *""'"' 
 amine by a reference or otherwise, as it may deem proper, 
 into the proceedings and acts of such corporation ; and if 
 it shall appear upon'such examination that the directors 
 or ofl&cers of such corporation, or either or any of them, 
 have in any manner misapplied, or improperly disposed of 
 the funds, property or effects of such corporation, it shall 
 be lawful for such court to decree that such directors or 
 officers of such corporation, as shall have been guilty of 
 such misapplication or improper disposition of such funds, 
 property or effects, to pay the same to such receiver, and 
 to enforce such decree, by such process as may be neces- 
 sary to accomplish that object. 
 
 § 5. This act shall take effect immediately. 
 
 RESTRAINING ACT OP 1782. 
 
 (1 GEEENLEAP'S ED. LAWS, P. 50.) 
 
 Air Act to prevent the establishment of cmy lank within 
 this State other than the Bank of Noeth Ameeica, and 
 for incorporatim-g the same within this State, passed 
 April llth, 1782. 
 
 I. Be it, therefore, enacted ly the people of the State of 
 New Yorh, represented in Senate and Assernbly, and it zs 
 hereby enacted by the authority of the same, That the said 
 bank mentioned in the said ordinance shall be, and is 
 hereby, incorporated and made a body politic within this 
 State, by the name and style of The President, Directors, 
 and Company of the Bank of Noeth Ameeioa, with all and 
 singular the powers, privileges, and immunities in the said 
 ordinance specified ; and that no other bank, public or pri- 
 vate, shall be established within this State during thepres- 
 
234: APPENDIX. 
 
 ent war with Great Britadn, on pain of the forfeitTare of 
 one hundred pounds for every offenee, by every person 
 concerned in such bank or banks, being thereof convicted 
 in the Supreme Court of judicature of this State ; which 
 forfeiture shall go one-half to the complainant, and the 
 other half to the treasury of this State. [Two other sec- 
 tions follow this — and the act recites the ordinance of the 
 Continental Congress of May 26, 1781.] 
 
 RESTRAINING ACT OP 1804. 
 
 (3 WEB. ED. LAWS, P. 616.) 
 
 An Act to restradn wnincorjporated BamMng Associations. 
 Passed April 11th, 1804. 
 
 I. JBe it enacted by the people of the State of New York, 
 represented in Senate and Assemhly, That from and after 
 the passing of this act, no person unauthorized by law shall 
 subscribe to or become a member of any association, insti- 
 tution or company, or proprietor of any bank or fund for 
 the purpose of issuing notes,, receiving deposits, making 
 discounts or transacting any other business which incorpo- 
 rated banks may or do transact by virtue of their respect- 
 ive acts of incorporation ; and if any person unauthorized 
 by law as aforesaid, shall hereafter subscribe or become a 
 member or proprietor as aforesaid, he shall forfeit and pay 
 for every such offence the sum of one thousand dollars, to 
 be recovered by any person who shall sue for the same, in 
 an action of debt, one-half thereof to his own use, and the 
 other half to the use of the people of this State ; and all 
 notes and securities for the payment of money, or the de^ 
 livery of property, made or given to any such association, 
 institution, or company, not authorized as aforesaid, shall 
 be null and void: Provided, nevertheless, that nothing 
 herein contained shall be held in any way to extend to the 
 association in the city of Albany, known by the name of 
 the Mercantile Cow/pa/ny, nor the association in the city of 
 New York, known by the name of the Merchant^ Ba/iik, 
 until the first Tuesday in May, one thousand eight hundred' 
 and five. 
 
APPENDIX: 235 
 
 II. And 5e it further enacted. That all unincorporated 
 associations, institutions, or proprieties, formed for any of 
 the purposes aforesaid, that now exist in this State, shall 
 after the first Tuesday in May, one thousand eight hundred 
 and five, cease to issue notes and to loan money ; and any 
 person concerned or interested in the issuing such notes, or 
 loaning any such money as aforesaid, after the first Tues- 
 day of May, one thousand eight hundred and five, shall 
 forfeit and pay, for every such offence, the sum of one 
 thousand dollars, to be recovered and disposed of in the 
 manner prescribed in the first section of this act. 
 
 EXPLANATORY ACT, APRIL, 1804. 
 
 (3 "WEB. ED. LAWS, P, 611, § 9.) 
 
 Whereas, the Chamber of Commerce of the city of l^ew 
 York have, by their respectful memorial to the Legislature, 
 expressed apprehension that the bill passed both houses of 
 the Legislature at the present session, entitled " An Act to 
 restrain unincorporated banking associations," may be so 
 construed as to subject individuals to inconvenient restric- 
 tions in their usual , commercial business and pursuits ; 
 Therefore, for the removal of those apprehensions, 
 
 IX. Be it enacted and declared, That nothing in the 
 ^aid bill contained shall be deemed or construed to prevent 
 any person, association or company from transacting or 
 pursuing any business other than such as companies or 
 banks, incorporated for the express purpose of banking, 
 usually do or transact, nor shall any thing in the said act 
 contained be deerhed or construed in any manner or way 
 to affect the incorporation in the city of New York, created 
 bjf virtue of an act entitled " An Act for swpplying the 
 city of NewYcyrk withpwre aaid wholesome water.'" 
 
236 APPENDIX. 
 
 RESTRAINING ACT OF 1813. 
 
 (2 REVISED LAWS 1813, P. 234.) 
 
 An Act to prevent the passing and reoei/oing of Bcmk 
 Notes less them the nominal value of one doUar, and to 
 restrain TTnincorporated Banking Associations. Passed 
 April 6, 1813. 
 
 I. JSe it enacted by the People of the State of New 
 YorTc, represented in Senate and Assembly, That no person 
 or persons whomsoever, within this State, shall give or 
 receive in payment of any debt or demand whatsoever, or 
 in any way attempt or offer to circulate, any bank bill or 
 promissory note of any banking company within this State 
 or elsewhere, for the payment of money, which shall be 
 for less than the nominal value of one dollar, and any per- 
 son offending against this act, either as giver, receiver or 
 circulator of such bank bill or promissory note, shall for- 
 feit and pay the nominal amount or value of such bank 
 bill or promissory note so given or received, or attempted 
 or offered to be circulated, to lie recovered vdth costs of 
 suit in any court within this State having Cognizance 
 thereof, by action of debt, by any person who will sue for 
 the same, to his or her own use. Provided, that such suit 
 or action be brought or commenced at any time within 
 thirty days after the offence be done and committed. 
 
 II. And be it fwrther enacted, that no person, unau- 
 thorized by law, shall subscribe to or become a member of 
 any association, institution, or company, or proprietor of 
 any bank or fund, for the purpose of issuing notes, receiving 
 deposits, making discounts, or transacting any other busi- 
 ness which incorporated banks may or do transact, by vir- 
 tue of their respective acts of incorporation : and, if any 
 person, unauthorized by law as aforesaid, shall hereafter 
 subscribe or become a member or proprietor as aforesaid, 
 he shall forfeit and pay for every such offence the sum of 
 one thousand dollars, to be recovered by any person who 
 
APPENDIX. 237 
 
 shall sue for the same, in an action of debt, one-half there- 
 of to his own use, and the other to the use of the people 
 of this State ; and all notes and securities for the payment 
 of money or the delivery of property, made or given to 
 any such association, institution or company, not authorized 
 as aforesaid, shall be null and void. 
 
 ACT OP 1816. 
 
 (LA"WS 1816, P. 12.; 
 
 An Act concerning Banks. Passed November 12, 1816. 
 
 ♦ 
 
 Be it enacted, a/nd declared hy the People of the /State 
 of New YorJc represented in Senate and AsserrMy, That no 
 Banking Company shall issue, or cause to be issued, any 
 bills or notes, other than for the payment of money ; and 
 that the sums which may be expressed in any bills or notes 
 which any bants shall issue, or cause to be issued, which 
 are according to the terms thereof receivable only in pay- 
 ment of debts due to the bank, shall be recoverable by the 
 bearer of such bills or notes, in like manner as if the same 
 contained an express promise for the payment of money. 
 
 RESTRAINING ACT OP 1818. 
 
 (LAWS 1818, P. 2i2.) 
 
 An Act relative to ianhs and for other purposes. Passed 
 April 21, 1818. 
 
 1. Be it enaotedly the people of the State of New YorTe, 
 represented in Senate and Assenwly, That it shall not be 
 lawful for any person, association of persons, or body corpo- 
 
238 APPENDIX. 
 
 rate', from and after the first day of August next, to keep 
 any office of deposit for the purpose of discounting promis- 
 sory notes, or for carrying on any kind of banking business 
 or operations, which incorporated banks are authorized by 
 law to carry on,, or issue any bills or promissory notes, as 
 private bankers, unless thereunto specially authorized by 
 law : Provided, that nothing in this act contained shall be 
 deemed to extend to the bank in ISTew York owned by 
 Jacob Barker, called the Exchange Bank, until three years 
 after the passing of this act : Provided also, that nothing 
 in this act contained shall be deemed or construed to 
 abridge, enlarge, or in any way affect any rights heretofore 
 granted by law to any incorporated company. 
 
 II. And le it further enacted, That in case any person 
 or persons, or body corporate, sh^U contravene the fore- 
 going provisions, every such person or persons, and the 
 members of every such corporation, who shall either di- 
 rectly or indirectly assent thereto, shall for every ofience 
 forfeit the siim of one thousand dollars, to be sued for by 
 the Attorney-General, and recovered in an action of debt, 
 in the name of the people of this State, in any court of 
 record, with costs to be taxed, and that one-half of the said 
 forfeiture, when recovered, shall be to the use of the said 
 people, and the other half to the informer. 
 
 III. And be it fwrtJier enacted. That in case any incor- 
 porated bank shall refuse to pay any of its bills or notes 
 hereafter to be issued, in lawful money of the United 
 States, on demand, the holder of such bills or notes shall 
 be entitled to recover the amount thereof, in an action on 
 the case, for money lent, with interest thereon, at the rate 
 of ten per cent, per annum, from the time of such refusal, 
 with costs. 
 
 IV. Andle it fwrth&r enacted. That the second section 
 of the act, entitled, " An act to amend the act entitled 
 'An Act to incorporate the stockholders of the Bank of 
 Orange, passed 6th April, 1813, and for other purposes,' " 
 passed April 15, 1817, be, and the same is hereby re- 
 pealed. (71) 
 
 (71.) The second section in the act of April 15, 181V, is in these words: 
 II. And he it further enacted. That the President, Directors and Company of 
 each of the incorporated banks in the State of New York, shall hereafter be 
 
APPENDIX. 239 
 
 ACT OP 1824. 
 
 (LAWS 1824, P. 303.) 
 
 » » 
 
 An Act to prevent the Passing and Seoeiving of Bank 
 Notes, payable otherwise tha/n in lawful money of the 
 United States. Passed April 12, 1824. 
 
 Whereas it hath of late become a practice with certain 
 institutions, to issue bills, or notes payable in bills, notes or 
 drafts, or otherwise than in money, whereby many unsus- 
 pecting persons are liable to be deceived and defrauded, — ■ 
 wherefore, for the prevention of such practice hereafter. 
 
 Be it enacted hy the People of the State of New York, 
 represented in Senate and Assembly That no person or per- 
 sons whomsoever, within this State, shall, after the first 
 day of May next, give or receive in payment of any debt 
 or demand whatsoever, or in any way attempt or offer to 
 circulate, any bank bill or bills, or promissory note or 
 notes, of any banking company whatsoever, made payable, 
 or purporting to be payable otherwise than in lawful 
 money of the United States ; and any person or persons 
 offending against this act, either as giver, receiver, or cir- 
 culator of such bank bill or bills, or promissory note or 
 notes, shall forfeit and pay the nominal amount or value of 
 all and every such bank bill or bills, or promissory note or 
 notes, so given or received, or attempted or offered to be 
 circulated, to be recovered, with costs of suit, in any court 
 within this State having cognizance thereof, by action of in- 
 debitatus assumpsit, by any person who will sue for the same, 
 to his or her own use ; in which action it shall be sufiicient 
 for the plaintiff to declare generally as for money had and 
 received to his or her use, pursuant to this act, and give 
 the special matter and this act in evidence : Provided, that 
 such suit or action be commenced within sixty days after 
 the offence be done or committed. (72.) 
 
 entitled to demand and receive an interest not exceeding seven per cent, per 
 annum, on all loans and discounts made by each of them for a longer period 
 than sixty days ; any thing in the acts of incorporation of any of the said 
 banks to the contrary notwithstanding. — {Laws, ISIY, p. 306.) 
 
 (72) The Legislature, in 1830, enacted as follows (Revised Statutes, vol. 1, 
 p. 713. Original Sections 10 dk 11. Seep. 48; ante.) 
 
 § 10. Kg person shall give, pay, or receive in payment, or in any -way 
 
240 APPENDIX. 
 
 REVISED STATUTES. 
 
 CHAPTEE Yin. PAET IH. TITLE lY. 
 
 (2 B. S. 457—460.) 
 
 TITLE IV. 
 
 ARTICLE FIEST. 
 
 OF PEOCEEDIlfGS BY AST) AGAINST OOEPORATIONS IN 
 COURTS OF LAW. 
 
 § 1. A foreign corporation created by the laws of any 
 other State or country, may, upon giving security for the 
 payment of the costs of suit, prosecute in the Courts of 
 this State, in the same manner as corporations created 
 under the laws of this State. 
 
 § 2. But where by the laws of this State, any act is for- 
 bidden to be done by any corporation or association of in- 
 dividuals, without express authority by law, and such act 
 shall have been done by & foreign corporation, it shall not 
 be authorized to maintain any action founded upon such 
 act, or upon any liability or obligation, express or implied, 
 arising out of, or made or entered into, in consideration of 
 such act. 
 
 circulate, or attempt to circulate, any bank bill, or any promissory note, 
 bill, check, draft, or other evidence of debt, issued by any banking company 
 whatever, ■which shall be made payable otherwise than in lawful money of 
 the United States. 
 
 § 11. Eveiy person offending against any provision of the last section, 
 shall forfeit the nominal 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, in the name of the overseers of the poor of the town 
 where the offence shall be committed, with their consent and under their 
 direction, in an action, to be commenced within sixty days after the com- 
 mission of the offence. {See note 17, at foot of page 48, ante; and 2 R. S., 
 IIS, § 11.) 
 
APPENDIX. 241 
 
 §•3. In suits brought by a corporation created by or proof of 
 
 " ' ■ " - - -- - .domestlcr 
 
 poration. 
 
 Tinder any statute, of this State, it shall not be necessary to''"°"'"'°™'^' 
 
 prove, on the trial of the cause, the existence of such cor- 
 poration, unless the defendant shall have pleaded in abate- 
 ment or in bar, that the plaintiffs are not a corporation. i 
 
 § 4. The first process for the commencement of a suit Process 
 against a corporation, shall be a summons, except in those '*""'" "'°°' 
 cases where a scire facias or other process is allowed by 
 law ; and such process, and all other writs and process 
 against corporations, may be issued and tested on any day " 
 in term, and nfey be made returnable on any day in the 
 same or the next succeeding term, in the same manner as 
 process issued against individuals may be issued, tested 
 and returned. LSee § 27, Code of Procedure.'] 
 
 § 5. Writs of summons and other process for the com- Howserved. 
 mencement of a suit against a corporation, may be served 
 on the return day of such process, or previous thereto, on 
 the presiding officer, the cashier, the secretary or the 
 treasurer thereof; and if there be no such officer, or none 
 can be found, such service may be made on such other offi- 
 cer or member of such corporation, or in such other man- 
 ner, as the court in which the suit is brought, may direct. 
 [/Sse § 134, Code of Procedure.] 
 
 § 6. "When such process shall have been returned duly. Proceea- 
 served, the appearance of the corporation shall be entered, '°^^ 
 and the plaintiff shall proceed thereupon in such suit, in 
 the same manner as in personal actions against natural 
 persons. 
 
 § 7. In every such action, the plaintiff may declare on a Deoiaration. 
 cause of action which arose previous to the commencement 
 of the suit, although the same may have arisen after the 
 teste of the process by which the action was commenced. 
 
 § 8. In any such action founded upon a note or other judgment 
 evidence of debt, for the absolute payment of money on ^'o^'^'"*™' 
 demand, or at any particular time, if it shall appear that 
 the first process, together with a copy of the declaration 
 was served at least twenty days before the return of such 
 process, the plaintiff may file a declaration in such suit on 
 such return day, or on any subsequent day in the same 
 term, and may apply for judgment. 
 
 §9. On such application, the court shall render judg- ib. defence 
 ment for the plaintiff as by default, either interlocutory or '"'™^"'^- 
 final, or both, as the case may require ; unless it shall satis- 
 factorily appear to such court, that such corporation has 
 16 
 
24:2 APPENDIX. 
 
 good and substantial defence on the merits, whicli shall be 
 disclosed by affidavit. 
 Eofereace § 10. If sucti defence consist of ai set-off, and be of such 
 
 "' ™"' a nature that the cause might be referred, the court shall 
 immediately refer the cause to the clerk thereof, or to some 
 other fit persons, to hear the proofs of the parties, and re- 
 port thereon; and the proceedings, thereon shall be the 
 same in all respects as in cases of reference. 
 Preference | H. Evsry issue of fact joiucd in such cause, shall 
 
 suorS."* have a preference at the court at which it shall be noticed 
 for trial, to all other causes; and every ca^ made, special 
 verdict rendered, bill of exceptions and demurrer to evi- 
 dence taken, on such trial, and every issue of law joined 
 on the pleadings in any such suit, shall have a preference 
 in the argument thereof in any court where the same may 
 be pending. 
 Bate of g 12. When judgment shall be rendered against any 
 
 eerScases. incorporated bank, for the amount of any bills or other 
 evidences of debt, payable absolutely, the payment of 
 which shall have been refused by such bank,' and no mea- 
 sure of damages shall be specified in the act incorporating 
 such bank, the plaintiff shall recover interest on such 
 amount from the time of such refusal, at the rate of ten per 
 ceut. a year, instead of the rate of interest established by 
 law. 
 Eedting § 13. In a'ctious by or against any corporation created 
 
 po?aSon!""""hy or under any law of this State, it shall not be necessary 
 to recite the act or acts of incorporation, or the proceed- 
 ings by. which such corporation was created, or to set forth 
 the substance thereof, but the same may be pleaded by 
 reciting the title of such act, and the date of its passage. 
 Mistake in . §14. In suits or proceedings by or agaiust any oorpora- 
 
 poration!'"' tiou, a mistake in the naming of such corporation, shall be 
 pleaded in abatement; and if not so pleaded, shall be 
 deemed tohave been waived* 
 Attach- § 15- Suits brought in the Supreme Court by a resident 
 
 meiit against of this State, agaiust any corporation created by or under 
 
 porafims!'^' the laws of any other State, government or country, for the 
 recovery of any debt or damages, may be commenced by 
 attachment. ( 73 ) 
 Bywiiom § 16. The court, or any judge thereof in vacation, and 
 
 iBsned, 
 
 (is) This sectipn amended by the Act of March 16th, 1849 (Laws 1849, 
 Chap. lOY, p. 142). See this act, post. 
 
APPENDIX. 
 
 243 
 
 any officer authorized to perform the duties of such Judge, 
 in vacation, may, on the application of thd* plaintiff, issue 
 such attachment to the sheriff of the county in which any 
 property of such corporation may be, commanding him to 
 attach and safely keep all the estate, real and personal, of 
 such corporation. 
 
 § IT. Such application shall be in writing, and shall be proof to 
 accompanied by tlie affidavit of the plaintiff, or one of theoWaimt 
 plaintiff's, specifying the sum in which such corporation is 
 indebted to him, over and above all discounts,; or specify- 
 ing the amount of damages to which he shall claim to be 
 entitled. 
 
 § 18. If such suit be for the recovery of a debt, the youoiiers 
 original security, if any, shall be produced at the time of i^^^^rtaia 
 making such application, and a copy thereof shall be an- 
 nexed "to the affidavit: if there be no written security, then 
 the original accounts shall in like manner be produced, and 
 a copy thereof be annexed to the affidavit. 
 
 § 19. If such suit be for the recovery of any damages, -^honwit- 
 the facts and circumstances to establish the grounds of such ness re- 
 claim, and the amount thereof, shall be proved by the^""^^ 
 affidavit of at least one disinterested witness. 
 
 § 20. Before such attachment shall issue, a bond shall Bond for 
 be executed by or on behalf of the plaintiff', to the defend- o"'*'^- 
 ants, in the penalty of two hundred and fifty dollars, with 
 sureties to be approved by the officer to whom the appli- 
 cation is made, conditioned to pay all costs which shall be 
 awarded, against such plaintiff in such suit, which bond 
 shall be filed by the officer receiving the same, in the office 
 of a clerk of the court. 
 
 § 21. The sheriff to whom such attacliment shall be di- Powersof 
 rected and delivered, shall proceed thereon in all respects "'""*^" 
 in the manner prescribed by law in case of attachments 
 against absent debtors, shall make and return an inventory, 
 and shall keep the property seized by him, or the proceeds 
 of such as shall have been sold, to answer any judgment 
 which may be obtained in such suit. ( 74 ) 
 
 § 23. if any property so seized shall be perishable, or Proceea- 
 if any part of it be claimed by any other person than suchjjfn'^^g^^''" 
 corporation, or if any part of it consist of a vessel belong- 
 ing to any port or place in this State, or any of the United 
 
 , (74) This section amended by 
 
 § 2 of the Act of May 14th, 1840. Laws 1840, Chap. 354, p. 296. See 
 this act, post: also the Act of April llth, 1842 (Laws 1842, Chap. 19Y, p 
 227. See this act, post). 
 
244: APPENDIX. 
 
 States, or of any foreign vessel, or of any share or interest 
 in any vessel, the same proceedings shall be had in all re- 
 spects, as are provided by law upon attachments against 
 absent debtors, 
 lb- § 23. Any bond required in any such case to be given 
 
 by a petitioning creditor, may be given by the plaintiff in 
 the suit ; and any bond reqiiired to be given to the sheriff 
 serving such attachment, shall be held for the benefit of 
 the plaintiff in such suit. 
 
 in'^on^^ud - § 24. i«, case judgment he rendered for theplwmUffin 
 
 mentfor any sucJh suit, and an execution he awarded tJiereon, the 
 
 piamtiffi. gjig^„ijj' shall assign to the plaintiff any hond taken hy him, 
 in the cov/rse of the proceedings, shall pay over to such 
 plaintif the proceeds of all sales of perishahle property, or 
 of any vessel, or sha/re or interest in a vessel, sold iy him, or 
 so Tmich thereof as may he neeessary to satisfy such execu- 
 tion/ and if any hala/nce remain due, he shall sell, under 
 such execution, so much of the property of such corporation 
 remaining in his hands, as may he necessary to satiny 
 such haloMce. ( 75 ) 
 Proraed- I 25. If the plaintiff in such action be nonsuited, or 
 
 jS^menTis discontinue the same, or judgment for any cause pass. 
 
 antf"*'"^' against him, every such bond taken by the sheriff, all the 
 proceeds of such sales, and all the property of such corpo- 
 ration remaining in his hands, shall be delivered by such 
 sheriff to the defendants or thejr agents, in the same man- 
 ner and upon the same terms as are prescribed in the case 
 of an attachment against an absent debtor being dis- 
 charged ; and in case of the failure of such corporation to 
 comply with such terms, the sheriff shall proceed in like 
 manner as directed in case of an absent debtor. 
 Penaityfor § 26. If it shall appear to the court that any such suit 
 
 vemaons against a foreign corporation was brought vexatiously and 
 without just cause, they shall award double costs against 
 the plaintiff; and such plaintiff shall be liable to the de- 
 fendants for all damages which they may sustain by such 
 proceedings. 
 Appear- § 27. At any time before the plaintiff in such suit shall 
 
 feTdanto!*" have lost a trial therein, and after such time, upon good 
 cause shown, the court may allow such corporation to ap- 
 pear in the action and defend the same, upon such terms 
 as the court shall think proper. 
 
 (75) This section repealed by § 6 of the Act of April 11th, 1842 (Laws 
 1842, Chap. 197, p. 227). See this aat, post. 
 
APPENDIX. 245 
 
 § 28. "Whenever such corporation shall have appeared Discharge 
 in such suit, they may apply to the offlfcer who issued such ment.*" ' 
 attachment, or to the court, for an order to discharge the 
 same. 
 
 § 29. Upon such application, the said corporation shall Bond to bo 
 deliver to the court or officer, a bond to the plaintiff in the ?J,Dt"nte.° 
 suit, -with at least two sureties, residents and freeholders in 
 this State, to be approved by such court or officer, in a pen- 
 alty at least double the amount of the claim of such plain- 
 tiff, proved as herein before directed, conditioned that the 
 obligors in such bond will, on demand, pay the amount of 
 the judgment that may be recovered against such corpora- 
 tion, in such suit. 
 
 §30. If there be more than one attachment issued .^r^eea-^^ 
 against any foreign corporation, in behalf of several plain- seyeraisStfl! 
 tiffs, at the same term, or during the same vacation of a 
 term, and judgments be rendered in favor of such plaintiffs, 
 the court shall apportion the proceeds arising from the 
 sale of the defendant's property, among the said plaintiffs, 
 in proportion to the amount of their respective judg- 
 ments. ( 76 ) 
 
 ACT OP MAY 14th, 1840. 
 
 (LAWS 1840, CHAP. 354, P. 296.) * 
 
 An Act to amend the Revised Statutes -mi relation to 
 proceedings against absent debtors and foreign corpora- 
 tions. Passed May lith, 184:0. 
 
 The People of the State of New YorTc represented in 
 Senate a/nd Assembly, do enact as follows: 
 
 % 1. The eighth section of article first of title first of inventory, 
 chapter five of part second of the Kevised Statutes, ismadfif°ef-° 
 hereby amended so as to read as follows : ors'ltJenf' 
 
 "He shall immediately, on making such seizure, with*"- 
 the assistance of two disinterested free-holders, make a just 
 
 (76) See the Acts of May 14ih, 1840, April 11th, 1842, May 13th, 1845 
 February 2l8t, 1848, and March 15th, 1849, post. ' 
 
246 APPENDIX. 
 
 and true inventory of all the property so seized, and of the 
 books, vouchers, and papers taken into his custody, stating 
 therein the estimated value of the several articles of per- 
 sonal property, and enumerating such of them as are perish- 
 able ; which inventory, after being signed by the sheriff, 
 and the appraisers, shall, within ten days after such seizure, 
 be returned to the officer who issued the warrant; and tbe 
 reMrtveJebts sheriff shall, under the direction of such officer, collect, 
 crefiits, &o. 'rcceivc, and take into his possession, all debts, credits, and 
 effects of such debtor, and commence such suits and take 
 coJeortheS^ ^uch legal proceedings in the name of such debtor, as may 
 be necessary for that purpose; and which suits and pro- 
 ceedings maybe continued by the trustees to be appointed 
 as hereinafter directed, until a final termination thereof." 
 
 §2. The twenty -first section of article first of title 
 
 four of chapter eight of part three of the Revised Statutes, 
 
 is hereby amended to read as follows : 
 
 Powers of " The sheriff to whom such attachment shall be directed 
 
 Lion to°for- and delivered shall proceed thereon in all respects in the 
 
 tif^gf"''"™" manner prescribed by law in case of attachments against 
 
 absent debtors, shall make and return an inventory, and 
 
 shall keep the property seized by liim, or the proceeds of 
 
 such as shall have been sold, to answer any judgment which 
 
 may be obtained in such suit, and shall, under the direction 
 
 of the ofiicer issuing such attachment, collect, receive, and 
 
 tiei°s,OTed-* ^^^^ i'l'-o ^^^ posscssiou, all debts, credits, and effects of 
 
 it8,&o. siich deb tar, and commence such suits and take such legal 
 
 proceedings, either in his own name or in the name of such 
 
 foreign corporation, as may be necessary for that purpose, 
 
 and discontinue the same at such time and on such terms, 
 
 as the said officer may direct." 
 
 § 3. The twenty-fourth section of article first of title 
 four of chapter eight of part three of the Revised Statutes, 
 is hereby amended to read as follows : 
 inm'or°ud - " "^"' (^i^se judgment be rendered for the plmntiff in any 
 merits against swcA suit, (Mid an execution he a/wa/rded thereon, the sheriff 
 poralon"" shall assiffn to the jplaintif any bond taken Tyy him in the 
 oowrse of the proceedings, and all debts, credits, and effects 
 of stioh corporations as he may have seized, shall pay over 
 to such plaintiff the proceeds of all sales of perishable prop- 
 erty, and the proceeds of all said debts, credits, or effects as 
 he may home received, or of. any vessel or share or interest 
 in a vessel sold by Mm, or so much thereof as may be neces- 
 sary to satisfy such execution ; and if any balance remain 
 due, he shall sell under such execution so much of the prop- 
 
APPENDIX. 247 
 
 enify of suoh corporation remainiThg in his hcmds, as may 
 he necessary to satisfy such lalance." \_Repealed ly %Q of 
 Chap. 127. 1842. See this act, post.'] 
 
 ACT OF APRIL 11th, 1842. 
 
 (LAWS 1842, CHAP. 197, P. 22Y.) 
 
 An Act to a^mend the law in relation to suits against for- 
 eign corporations. Passed April 11, 1842. 
 
 The People of the State of New Yorh,- represented in 
 Senate a/nd AssemMy, do enact as follows : 
 
 % 1. The rights or shares which any foreign corporation g^^^j.^ 
 may have or own in the stock of any bank, banking asso- funds, and 
 ciation, insurance company, or other company or corpora- fore?|nco?p- 
 tion, together with the interests, rents and profits due and "^^^j.™^^™*^ 
 growing due thereon, and all trust property real or per- 
 sonal, funds, deposits, moneys or credits, held by or due 
 from any bank, insurance company, or other company or 
 corporation or individual in this State, for and in behalf or 
 to such foreign corporation, shall be liable to be attached 
 in actions at law, and levied upon and sold to satisfy any 
 judgment and execution. 
 
 § 2. The execution of the attachment upon any such ^tu^i^. 
 rights or shares or. trust property, funds, deposits, moneys ment how 
 or credits, shall be made by leaving a true and attested °^^™ ^ ' 
 copy of the writ, by the oflficer serving the same, with his 
 proper endorsement thereon, with the cashier of such bank, 
 or with the secretary or clerk of such insurance company 
 or other company or corporation, or with such individual 
 holding such trust property, funds, deposits, moneys or 
 credits ; and such rights or shares, together with the inter- 
 est, rents, and profits of such trust funds, deposits, moneys, 
 or credits, shall be holden to respond to the judgment 
 which may be recoyered in such action, or to satisfy such 
 execution. 
 
 § 3. Whenever a sheriff shall, with a writ of attach- ^^shermo^ 
 ment or execution against a foreign corporation apply to with amount 
 
248 APPENDIX. 
 
 shaJS" & ^^^^ cashier, secretary or clerk, or to sucli individual, for 
 by offiW the pui'pose of so attaching or levying upon such rights or 
 shares or such trust property, funds, deposits, moneys or 
 credits, the cashier, secretary or clerk, or individual, shall 
 furnish him with a certificate under his hand, in his official 
 capacity, if he be an officer, designating the number of 
 rights or shares such foreign corporation holds in the stock 
 of such bank, company or corporation, with the incum- 
 brances thereon, if any there be, and the amount of the 
 dividend due thereon, or the amount and description of 
 such trust property, funds, deposits, moneys or credits held 
 by such company, corporation, or individual for the benefit 
 of such foreign corporation. 
 Duty of § ^- ^^ ^^^^ judgment be entered for the plaintifi" in 
 
 '03"*'°*°^^^ any such suit, the sheriff shall satisfy the same out of the 
 entlSdftr" property attached by hiin, if it shall be sufficient for that 
 P'"-™ purpose. 
 
 1. By paying over to such plaintiff the proceeds of all 
 sales of perishable property, and of any vessel or share, 
 or interest in any vessel sold by him, or so much as shall 
 be necessary to satisfy such judgment. 
 
 2. If any balance remains due and an execution shall 
 have been issued on such judgment, he shall proceed to 
 sell under such execution so much of the attached prop- 
 erty, real or personal, as may be necessary to satisfy such 
 balance, if enough for that purpose shall remain in his 
 hands ; and in case of the sale of any such property as is 
 mentioned in the first section of this act, the sheriff shall 
 execute to the purchaser a deed or bill of sale thereof, and 
 the purchaser shall thereupon on demand be entitled to all 
 such property, deposits, trust property, funds, moneys, or 
 credits, and all such rights and shares or stock, and shall 
 have all the rights and privileges, in respect thereto, as 
 were possessed by such foreign corporation. 
 
 3. If any of the attached property or effects belonging 
 to such foreign corporation shall have passed out of the 
 hands of such sheriff by delivery or otherwise without 
 having been sold, such sheriff shall repossess himself of 
 the same ; and for that purpose, he shall have all the 
 authority which he had to seize the same under the attach- 
 ment ; and any person who shall willfully conceal, with- 
 hold, or detain any such property or effects from the said 
 sheriff, shall be liable to double damages at the suit of the 
 parties interested and injured. 
 
 4. Until the judgment against such foreign corporation 
 
APPENDIX. 249 
 
 shall be paid, such sheriff shall proceed to collect the notes, 
 hills, and other evidences of debt that may have been 
 seized under such attachment, and to prosecute any bond 
 which he may have taken in the course of such proceed- 
 ings, and apply the proceeds thereof to the payment of 
 such judgment ; and vs^hen such judgment and all costs 
 of the proceedings shall have been fully paid, the sheriff 
 upon reasonable demand shall deliver over to such foreign 
 corporation, all the residue of such attached property or 
 the proceeds thereof. 
 
 §5. No. default or judgment shall be taken in any ■^g^_ 
 
 such suit, until the plaintiff shall file with the clerk of the jj^^dgmmt 
 court in which such suit shall be pending, evidence by pntii notice 
 aifidavit or otherwise, that he has caused a notice to be'*^°^' 
 published in the State paper and in one newspaper printed 
 in the county where such attachment shall have been exe- 
 cuted, at least once in each week for twelve weeks succes- 
 sively, stating the issuing of the attachment, the names of 
 the plaintiff and of his attorney, and of the ofl&eer who 
 issued the attachment, and the nature and amount of the 
 demand claimed against such foreign corporation. 
 
 § 6. The twenty-fourth section of article one, title Repeal, 
 four, chapter eight, part three of the Revised Statutes 
 and the third section of th* act entitled " An Act to 
 amend the Eevised Statutes in relation to proceedings 
 against absent debtors and foreign corporations," passed 
 May 14r, 1840, are hereby repealed. 
 
 § 7. This act shall take effect immediately. [See amend- 
 atory Act of May \Zih, 1845, jpost?[ 
 
 ACT OP MAY 13th, 1845. 
 
 (LAWS 1846, CHAP. 234, P. 256.) 
 
 An Act to a/mend the la/w in relation to suits against For- 
 eign Corporations. Passed May 13, 1845.1 
 
 The People of the State of New YorTc, represented in 
 Senate and Assembly, do enact as follows : 
 
 § 1. After judgment rendered for the plaintiff in any Provision 
 suit commenced by attachment against a foreign corpora- ecuuonbetog 
 
250 APPENDIX. 
 
 rotnmednn- tion, aiicl ail execution issued thereon shall have been re- 
 satisfled. tumed unsatisficd in part or in whole, the party suing out 
 such execution, or in case of a nominal plaintiff, the per- 
 son beneficially interested therein, may commence any suit 
 or suits at law or in equity, either in his own name or in 
 the name of said foreign corporation, against any debtor 
 to the said corporation, or against the subscribers to its 
 capital stock, shareholders or stockholders, or any or all of 
 them, to compel the payment of any sum or sums of money 
 not paid in, or remaining due upon each share of the capi- 
 tal stock subscribed or held by them, or any of them, or 
 which may have been transferred with intent to avoid the 
 payment of the said sum or sums of money ; and may re- 
 cover in such suit or suits any sums to the amount due the 
 plaintiff or plaintiffs, which such defendant or defendants 
 could be liable to pay in any event in the State or govern- 
 ment where such corporation is located, 
 snits § 2. The suits authorized to be brought by or in the 
 
 tbT^ameV iiame of the sheriff, by the act entitled "An act to amend 
 sheriff how the Rcvised Statutes in relation to proceedings against ab- 
 sent debtors and foreign corporations, passed May 14th, 
 1840, and by the act entitled " An act to amend the law 
 in relation to suits against foreign corporations," passed 
 April 11th, 1842, may be*prosecuted by the attacliing 
 creditor or party beneficially interested in the attach- 
 ment, by an attorney or solicitor to be employed by him, 
 and at his costs and charges, upon delivering to the said 
 sheriff a bond in the penalty of five hundred dollars, with 
 two sureties, to be conditioned to indemnify and save the 
 said sheriff harmless from all damages, costs and expenses 
 of said suit. The said sureties shall in all cases where- 
 in it shall be required by the sheriff, justify as good and 
 sufficient sureties, by making an affidavit that each of them 
 is a householder, worth double the amount of the penalty 
 of the said bond, over and above all demands and liabili- 
 ties, which justification shall be made before any officer 
 authorized to take the justification of bail in the court out 
 of which said attachment was issued, upon at least one 
 day's notice in writing to such sheriff. 
 
 § 3. This act shall take effect immediately. 
 
APPENDIX 251 
 
 ACT OF FEBRUARY 21st, 1848. 
 
 (LAWS 1848, CHAP. 53, P. 6tf.) 
 
 An Act to amnend the act, entitled "An act to wmend 
 the law in relation to smts agmnst foreign corporations. 
 Passed Febrioa/ry 21, 18i8. 
 
 The People of the State of New YorTc, represented in 
 Senate and AssemMy, do enact as follows : 
 
 § 1. In case' any cashier, secretary, clerk or individual, Cashier, 
 upon whom any sheriff shall serve any such attachment or ofcirak^how 
 execution, shall refuse to furnish him with the certificate ^^^^3^' 
 required in and by the third section of the act passed April, 
 11, 1842, entitled " An act to amend the law in relation to 
 suits against foreign corporations," chapter one hundred 
 and ninety-seven, then it shall be lawful for the plaintiff in 
 such attachment or execution, to require the examination 
 of such cashier, secretary, clerk or individual, before any 
 officer of the court out of which said, attachment or execu- 
 tion shall have issued. 
 
 § 2. The provisions of sections twelve, thirteen, fourteen, sections of 
 fifteen, and sixteen, of article eight of title first, chapter cable.*'''' ' 
 fifth, part second of the JRevised Statutes, in relation to the 
 mode of examining nonresident debtors, or persons indebt- 
 ed to them, or having property of theirs in his or their 
 possession, shall apply to and govern the examinations au- 
 thorized to be had in and by this act, so far as the same 
 may be applicable. 
 
 § 3. This act shall take effect immediately. 
 
252 APPENDIX. 
 
 ACT OP MARCH 15th, 1849. 
 
 (LAWS 1849, CHAP 107, P. 142.) 
 
 An Act to extend the remedies at loM agamst Foreign 
 Insurance Oonvpanies. Passed Ma/rch 15, 18i9. 
 
 The People of the State of New Yoi-h, represented in 
 Senate and Assemhiy, do enact as follows : 
 
 § 1. Section fifteen, article one, title four, chapter eight, 
 part third, of the Revised Statutes, is hereby amended, so 
 as to read as follows : 
 snitBwhere § 15. Sults may be brought (in the Supreme Court, in the 
 be brought Superior Court of the city of New York, and in the court of 
 Common Pleas in and for the city and county of New York,) 
 against any corporation, created by or under the laws of 
 any other State, government, or country, for the recovery 
 of any debt or damages, whether liquidated or not, aris- 
 ing upon contract made, executed, or delivered, within 
 this State, or upon any camse of action a/rising therein : 
 such suits may be commenced by complaint and summons 
 together with an attachment, as now provided by law; and 
 such complaint and summons may be served as provided 
 by sections one hundred and thirteen and one hundred 
 and fourteen, of the Code of Procedure. 
 § 2. This act shall take effect immediately. 
 
APPENDIX. 253 
 
 CODE OF PROCEDURE, 
 
 OF THE STATE OF NEW YOEK. 
 
 TITLE XIII. 
 
 OHAPTEE I. 
 
 ACTIONS AGAINST FOREIGN CORPORATIONS. 
 
 § 427. Wheve and hy whom Irought. 
 
 An action against a corporation created by or under the 
 laws of any other State, government, or country, may be 
 brought in the Supreme Court, the Superior Court of the 
 City of New York, or the Court of Common Pleas for the 
 City and County of New York, in the following cases : 
 
 1. By a resident of this State, for any cause of action. 
 
 2. By a plaintiff, not a resident of this State, when the 
 cause of action shall have arisen, or the subject of the ac- 
 tion shall be situated, within this State. [As to Attach- 
 ments, See Code of Procedwre, (1861-1852), Section 227 to 
 243.] 
 
 REVISED STATUTES. 
 
 PAKT II. CHAPTEE IT. TITLE II. 
 (1 B. S. 767—771.) 
 
 TITLE II. 
 
 OF PROMISSORY NOTES AND BILLS OF EXCHANGE. 
 
 § 1. All notes in writing, made and signed by any per- Promissory 
 son, whereby he shall promise to pay to any other person, wi loSr 
 or his order, or to the order of any other person, or unto n^"^^?"^' 
 the bearer, any sum of money therein mentioned, shall be 
 due and payable as therein expressed ; and shall have the 
 
254 APPENDIX. 
 
 Their effect same effeet, and be negotiable in like manner, as inland 
 
 bills of exchange, according to tbe custom of merchants. 
 Signature §2. Every such note, signed by the agent of any person, 
 by agent. fij].^Qy- a general or special authority, shall bind such per- 
 son, and shall have the same effect, and be negotiable, as 
 above provided. 
 Corporations § 3. Ihc v7ord "persou" iu the two last preceding sections, 
 mciuded. gii^U be construed to extend to every corporation, capable 
 by law of making contracts. 
 
 § 4. The payees and endorsees of every such note paya- 
 ble to them, or their order, and the holders of every such 
 note payable to bearer, may maintain actions for the sums 
 of money therein mentioned, against the makers and en- 
 dorsers of the same respectively, in like manner as in 
 cases of inland bills of exchange, and not otherwise. 
 Effect when § 5. Sucli uotcs made payable to the order of the maker 
 Sor of'makerl thereof, or to the order of a fictitious person, shall, if ne- 
 ^- gotiated by the maker, have the same effect, and be of the 
 
 same validity, as against the maker and all persons having 
 knowledge of the tacts, as if payable to bearer. 
 Accept. § 6. No person within this State shall be charged, as an 
 to be ixi writ- acceptor on a bill of exchange, unless his acceptance shall 
 jng, &e. -fjg jjj writing, signed by himself, or his lawfal agent, 
 acw^^tanee § '^' ^^ s^<^^ accoptauce be written on a paper, other 
 on separate than the bill, it shall not bind the acceptor, except in favor 
 paper. ^£ ^ person to whom such acceptance shall have been 
 shown, and. who, on the faith thereof, shall have received 
 the bill for a valuable consideration. ■ 
 Written g 8. An Unconditional promise, in writing, to accept a 
 BoeSt^* " bill before it is drawn, shall be deemed an actual accept- 
 ance, in favor of every. person who, upon the faith thereof, 
 shall have received the bill for a valuable consideration. 
 Eefasaito § 9. Every holder of a bill, presenting the same for ac- 
 aocepton geptance, may require that the acceptance be written on 
 the bill. A refusal to comply with such request shall be 
 deemed a refusal to accept, and the bill may be protested 
 for non-acceptance. 
 Eights of § 10. The four last sections shall not.be construed to im- 
 ceSVases, pair the right of any person, to whom a promise to accept 
 feoteo.'^* '^" ^ ^'^^ ™^.y ^^^^ heen made, and who, on the faith of such 
 promise, shall have drawn or negotiated the bill, to re- 
 cover damages of the party making such promise, on his 
 refusal to accept such bill. 
 Destroying § 11. Every person, upon whom a bill of exchange is 
 w return 1^ drawu, and to whom the same is delivered for acceptance. 
 
APPENDIX. 253 
 
 who shall destroy such bill, or refuse, within twenty-four, when accept- 
 hours after such delivery, or within such other period as™"*' 
 the holder may allow, to return the bill accepted or non- 
 accepted, to the holder, shall be deemed to have accepted 
 the same. 
 
 § 12. "Whenever the board of health of the city of New in case of 
 York, or any other competent authority, shall, by public Sfew-YorV 
 notice, designate any portion or district of the said city as ^^j^^?'^,°'j[,"' 
 being the seat, of any infectious or contagious disease, and be kept by 
 declare communication with such portion or district dan- 
 gerous, or shall prohibit such communication, it shall be 
 the duty of the clerk of the said city and county, during 
 the continuance of such disease in such district, to provide 
 and keep in his office a book, for the purpose of registering 
 in alphabetical order, the names, firms, and places of busi- 
 ness of any inhabitant of the city, who shall desire such 
 registry to be made. 
 
 §13. It shall be the duty of all persons and firms usually inhabitants 
 resident or doing business within such infected district, to ISe^^nam'es, 
 register in the book so provided by the said clerk, their ^°8i^eBs°Ito* 
 names or firms, with the place or places out of such in- 
 fected district, but within the county of New York, to 
 which they may have removed the transaction of their 
 business, or to which they may desire any notices to be 
 sent or served, or any notes, drafts, or bills to be presented 
 for acceptance or for payment. The sum of twenty-five ^°™'''°'"''' 
 cents may be claimed and received by the said clerk for jjcgister 
 every such registry; but the book in which the same shall may be ex-- 
 be entered, shall be, at all times during office hours, open to """"^ ^""' 
 public examination, free of all charges. 
 
 § 14. During the continuance of any such disease in such Acceptances, 
 infected district, all drafts, notes and bills which by law are demSa*" 
 to be required to be presented for acceptance or for pay- 
 ment, may be presented for such purpose at the place so 
 designated in such registry ; and all notices of non-accept- Notices, &a., 
 ance and of non-payment, of any note, draft or bill, or of ™Jt toTg-'' 
 protest, for such non-acceptance or non-payment, may be'""^^P'"'°- 
 served by leaving the same at the place so designated. 
 
 § 15. In case any person or firm, usually resident or do- ^^I'^^s'strr. 
 ing business within such infected district, shall neglect to drafts, &«'., 
 make and cause to be entered in the book so provided, the ^^^"10"^'' 
 registry herein required, all notes, drafts or bills, which '''^*- 
 by law are required to be presented to such person or firm 
 for acceptance or for payment, may be presented to the 
 said clerk of the city and county of ISTew York, during 
 
256 • APPENDIX. 
 
 the continuance of sucli disease, at any time during office 
 hours ; and demand of acceptance or payment thereof may 
 be made of the said clerk, to the same purpose and witt 
 the same effect, as if the same had been presented, and 
 acceptance or payment demanded, of such person or firm, 
 at their usual place of doing business. 
 Ana notices, § 16. In case of the omission to make the registry herein 
 ieftSp^at- required, all notices of the non-acceptance or non-payment 
 office. Qf g^jjy note, draft or bill, or of protest for such non-accept- 
 ance or non-payment, may be served on any person or firm, 
 usually resident or doing business within such infected dis- 
 trict, by leaving the same at the post-ofiBce for the said city 
 of JS^ew York ; which service shall be as valid and effect- 
 ual, as if the notices had been served personally on such 
 person, or one of such firm, at his or their usual place of 
 doing business. 
 When pesti- 1 17. Whenever proclamation shall be made by the board 
 to'have bX'^ of health, or other proper authority of the city of New 
 sided, York, that an infectious or contagious disease, in any such 
 infected district, has subsided, it shall be deemed to ha^e 
 subsided, for all the purposes contemplated in this title. 
 Damages § 18. The rate of damages to be allowed and paid upon 
 ment offl's. '''^^ usual protest for non-payment of bills of exchange, 
 drawn or negotiated within this State, shall in the follow- 
 ing cases be as follows : 
 Bills oncer- !• If such bill shall have been drawn upon any person 
 and easton" ^^ pcrsons at any place in either of the States of Maine, 
 states. l^ew Hampshire, Vermont, Massachusetts, Rhode Island, 
 Connecticut, l^ew-Jersey, Pennsylvania, Ohio, Delaware, 
 Maryland, or Virginia, or in the district of Columibia, three 
 dollars upon the hundred, upon the principal sum specified 
 in such bill. 
 On certain 2. If such bill shall have been drawn upon any person 
 western" ""^or persons at any place in either of the States of Iforth- 
 Btetea. Carolina, South-Carolina, Georgia, Kentucky or Tennes- 
 see, five dollars upon the hundred, upon the principal sum 
 specified in such bill, 
 ther ^- -"-^ ^^ch bill be drawn upon any person or persons at 
 statesand any placo, in any other State or territory of the United 
 TOnttoe°nt,'&c States, or at any other place on, or adjacent to, this conti- 
 nent and north of the equator, or in any British or other 
 foreign possessions in the West Indies, or elsewhere in the 
 western Atlantic ocean, ten dollars upon the hundred. 
 Bills on i^po^ the principal sum specified in such bill. 
 Europe. i. If such bill sliall have been drawn upon any person 
 
APPENDIX. 257 
 
 or persons at any port or place in Europe, ten dollars upon 
 the hundred, upon the principal sum specified in such bill. 
 
 § 19. Such damages shall be in lieu of interest, charges Damages to 
 of protest, and all other charges incurred previous to and certainlnter- 
 at the time of giving notice of non-payment ; but the ^^ «''«"■£'". 
 holder of such bill shall be entitled to demand and recover 
 lawful interest upon the aggregate amount of the principal 
 sum specified in such bill, and of the damages thereon, 
 from the time at which notice of protest for non-payment 
 shall have been given, and payment of such principal sum 
 shall have been demanded. 
 
 § 20. If the contents of such bill be expressed in the Norefer- 
 money of account of the United States, the amount due o? excha"^ 
 thereon, and of the damages herein allowed for the non- payable' "u 
 payment thereof, shall be ascertained and determined """ey of u. 
 without any reference to the rate of exchange existing be- 
 tween this State and the place on which such bill shall 
 have been drawn, at the time of the demand of payment, 
 or of notice of non-payment, 
 
 § 21. K the contents of such bill be expressed in the otherwise 
 money of account or currency of any foreign country, wein «>reign 
 then the amount due exclusive of the damages payable ™™'"'^- 
 thereon, shall be ascertained and determined by the rate 
 of exchange, or the value of such foreign currency, at the 
 time of the demand of payment. 
 
 § 22. Where a bill of exchange shall be protested for Damages 
 non-acceptance, the same rate of damages shall be allowed °^ '"'°""=- 
 on the protest for non-acceptance, as provided in the fourwus. 
 last sections ; and shall be in lieu of interest, charges of 
 protest, and all other charges incurred previous to and at 
 the time of giving notice of non-acceptance; but the 
 holder shall be entitled to recover interest upon the aggre- 
 gate amount of the principal sum specified in the bill and 
 of the damages thereon, from the time at which notice of 
 protest for non-acceptance shall have been given. 
 
 § 23. The damages allowed by this Title, shall be recov- who to re- 
 ared only by the holder of a bill who shall have purchased dam^l"."" 
 the same, or some interest therein, for a valuable considera- 
 tion. 
 
 § 24. In all cases where a notice of non-acceptance of a Notices hy 
 bill of exchange, or non-payment of a bill of exchange, be'direci'etL" 
 promissory note, or other negotiable instrument, may be 
 given by sending the same by mail, it shall be sufiicient if 
 such notice be directed to the city or town where the per- 
 son sought to be charged by such notice resided at the time 
 17 
 
258 APPENDIX. 
 
 of drawing, making or endorsing such bill of exchange, 
 
 promissory note or other negotiable instrument, unless 
 
 such person at the time of affixing his signature to such 
 
 bill, note, or other negotiable instrument, shall in addition 
 
 thereto specify thereon the post-office to which he may 
 
 require the notice to be addressed. 
 
 Appiica- § ^^" J^othing in this act shall apply to bills of ex- 
 
 tionof last change, promissory notes, or other negotiable instruments, 
 
 section. jjiade or drawn before this act takes effect. 
 
 ACT OF APRIL 23, 1835. 
 
 (LAWS 1835, CHAP. 141, P. 152.) 
 
 An Act in relation to Sills of Exchange and Promissory 
 Notes. Passed April 23, 1835. 
 
 The People of the State of New York, represented in 
 Senate amd Asseonbly, do enact as follows : 
 
 Notice, how § 1- In all cases where a notice of non-acceptance of 
 tobogiven. g^ ^j.]j of exchange, or non-payment of a bill of exchange, 
 promissory note or other negotiable instrument, may be 
 given by sending the same by mail, it shall be sufficient 
 if such notice be directed to the city or town where the 
 person sought to be charged by such notice resided at the 
 time of drawing, making, or endorsing such title of ex- 
 change, promissory note or other negotiable instrument, 
 unless such person at the time of affixing his signature to 
 such bill, note, or other negotiable instrument, shall in 
 addition thereto, specify thereon the post-office to which he 
 may require the notice to be addressed. 
 
 § 2. Nothing in this act shall apply to bills of ex- 
 savin; chaiigc, promissory notes, or other negotiable instruments 
 eiause. made or drawn before this act takes effect. 
 
APPENDIX. 259 
 
 ACT or APRIL 4th, 1849. 
 
 (LAWS 1849, CHAP. 261, P. 392.) 
 
 An Act to designate the holidays to ie observed in the ac- 
 ceptance and payment of Bills of Exchange and 
 From/hssory Notes. Passed April 4, 1849. 
 
 The People of the State of New YorTc, represented m 
 Senate and Assembly, do enact as follows : 
 
 § 1. The following days, viz. : the first of January, ^"''^^^^ 
 commonly called New-years day, the fourth day of July, 
 the twenty-fifth day of December, commonly called Christ- 
 mas day, and any day appointed or recommended by the 
 governor of this State, or the President of the United 
 States, as a day of fast or thanksgiving, shall for all pur- 
 poses whatsoever as regards the presenting for payment or 
 acceptance, and of the protesting and giving notice of the 
 dishonor of bills of exchange, bank checks and promissory 
 notes, made after the passage of this act, be treated and 
 considered as is the first day of the week, commonly called 
 Sunday. 
 
260 APPENDIX. 
 
 REVISED STATUTES. 
 
 PAKT II., CHAPTEE lY., TITLE III. 
 
 (1 E. S. 771—773.) 
 
 TITLE III. 
 
 OF THE INTEREST OF MOIfEY. 
 
 § 1. The rate of interest upon the loan or forbearance 
 of any money, goods or things in action, shall continue to 
 be seven dollars upon one hundred dollars for one year, 
 and after that rate for a quarter or less sum, or for a longer 
 or shorter time. 
 Greater in- § 2. No pcrsou Or Corporation shall, directly or indi- 
 
 hlbitei"" rectly, take or receive in money, goods or things in action, 
 
 or in any other way, any greater sum or greater value, for 
 
 the loan or forbearance of any money, goods or things in 
 
 action, than is above prescribed. 
 
 Excess paid § 3. Every person, who, for any such loan or forbear- 
 
 coveredbtok^"^®' shall pay or deliver any greater sum or value than is 
 
 in one yeaf. abovc allowcd to be reccived, and his personal representa- 
 tives, may recover in an action against the person who 
 shall have taken or received the same, and his personal 
 representatives, the amount of the money so paid or value 
 delivered, above the rate aforesaid, if such action be 
 brought within one year after such payment or delivery. 
 When to § 4:. If such suit be not brought within the said one year, 
 
 be recovered ^jj^ proseciited with cffcct, then the said sum may be sued 
 
 by oversfers n ^ -, i ■ t • • i . i 
 
 of poor, &o. tor and recovered with costs, at any time withm three 
 years after the said one year, by any overseer of the poor of 
 the town where such payment may have been made, or by 
 any county superintendent of the poor of the county in 
 which the payment may have been made. 
 „ , , S 5. All bonds, bills, notes, assurances, conveyances, all 
 
 Contracts tf ' ;, ' ini .'« 
 
 for greater other coutracts or securities whatsoever, and all deposits oi 
 som, void. gQjj^g Qp other things whatsoever, whereupon or whereby 
 there shall be reserved or taken, or secured, or agreed to 
 be reserved or taken, any greater sum or greater value, 
 for the loan or foibearance of any money, goods or things 
 in action, than is above prescribed, shall be void ; but 
 Except ne-j-j^jg scctiou shall not extend to any bills of exchange or 
 
APPENDIX. 261 
 
 promissory notes, payable to order or bearer, in the hands go'J''i''fW'>. 
 
 £ - •/ 1^1*1 1 1 n 1 • T .1 and notes in 
 
 ot an endorsee or holder, who shall have received the same hands of 
 in good faith, and for valuable consideration, and who hadoSt'^notice.'' 
 not, at the time of discounting such billor note, or pay- 
 ing such consideration for the same, actual notice, that 
 such»bill or note had been originally given, for a usu- 
 rious consideration, or upon a usurious contract. [This 
 Section amended 'by%l of the Act of May 15, 183T. See 
 this act, post.'] 
 
 §-6. Every person offending against the provisions of offenders 
 this Title, shall be compelled to answer on oath any bill ^?™f;f,';'i'° 
 that may be exhibited against him in the court of chan- 
 cery, for the discovery of any sum of money, goods or 
 things in action so taken, accepted or received, in viola- 
 tion of the foregoing provisions, or either of them. 
 
 § 7. Every person who shall discover and repay or re- ioiscovery, 
 turn the money, goods, or other things so taken, accepted further pen- 
 or received, or the value thereof, shall be acquitted and*"''- 
 discharged from any other or further forfeiture, penalty or 
 punishment, which he may have incurred by taking or 
 receiving the money, goods or other thing so discovered 
 and repaid, or returned as aforesaid. 
 
 § 8. Whenever any borrower of any money, goods or Borrower 
 things in action, shall file a bill in chancery for a discov-^'^'swiinot 
 ery of the money, goods or things -in action taken or re- rest on 'sum 
 ceived, in violation of either of the foregoing provisions, '""""'■ 
 it shall not be necessary for' him to pay, or offer to pay, 
 any interest whatever on the sum or thing loaned ; nor 
 shall any court of equity require or compel the payment, prJ^cfpaifw- 
 or deposit, of the principal sum, or any part thereof, as a'"™^''- 
 condition of granting relief, to the borrower in any case 
 of a usurious loan forbidden by this chapter. 
 
 § 9. For the purpose of calculating interest, a month MoDthsand 
 shall be considered the twelfth part of a year, and as con- i6^reck™ed. 
 sisting of thirty days ; and interest for any number of 
 days, less than a month, shall be estimated by the propor- 
 tion which such number of days shall bear to thirty. 
 
 § 10. "Whenever, in any statute,- act, deed, written or Howinte- 
 verbal contract, or in any public or private instrument ■'^'j'J° '>?"='''- 
 whatever, any certain rate of interest is or shall be men- certain case, 
 tioned, and no period of time is stated for which such rate 
 is to be calculated, interest shall be calculated at the rate 
 mentioned, by the year, in the same manner as if the 
 words "per annum" or "by the year," had been added to 
 such rate. 
 
262 APPENDIX. 
 
 ACT OP MAY 15, 1837. 
 
 (LAWS 1837, CHAP. 430, P. 486.) 
 
 An Act to prevent usv/ry. Passed May 15, 1837. 
 
 The People of the State of New^ Yorh, represented in 
 Senate and Assenibly, do enact as follows : 
 
 Amend- § ^' '^'^® J?/'^^ Section of Title three, of chapter four, 
 
 mentofflftu part two of the Remsed Statutes is hereby amended so as 
 
 °*°"'"=- to read as follows : 
 
 § 5. All bonds, bills, notes, assurances, conveyances, all 
 other contracts or securities whatsoever (except bottomry 
 and respondentia bonds and contracts), and all deposits of 
 goods or other things whatsoever, whereupon or whereby 
 there shall be reserved or taken, or secured or agreed to 
 be reserved or taken, any greater sum, or greater value, 
 for the loan or forbearanc e of any money, goods or other 
 things in action, than is above prescribed, shall be vnid; 
 but this act shall not affect such paper as has been made 
 and transferred previous to the time it shall take effect. 
 Witnesses. § 2. Whenever in an action at law the defendant shall 
 plead or give notice of the defence of usury, and shall ve- 
 rify the truth of his plea or notice by aifSdavit, he may, for 
 the purpose of proving the usury, call and examine the 
 plaintiff as a witness, in the same manner as other wit- 
 nesses may be called and examined. 
 Offenders § 3. Every pcrsou offending against the provisions of 
 
 anS^el!^* *" the Said title, or of this act, may be compelled to answer 
 on oath, any bill that shall be exhibited against him, in the 
 court of chancery, for relief, or discovery, or both. 
 Bills in § 4. Whenever any borrower of money, goods, or things 
 
 Chancery. ^^ actiou, sliall file & bill iu chancery, for relief or discov- 
 ery, or both, against any violation of the provisions of the 
 said title or of this act, it shall riot be necessary for him to 
 pay or offer to pay any interest or principal ou the sum or 
 thing loaned ; nor shall any court of chancery require or 
 
APPENDIX 263 
 
 compel the payment or deposit of the principal sum_ or 
 interest, or any portion thereof, as a condition of granting 
 relief or compelling or discovering to the borrower in any 
 case, usurious loans forbidden by said title or by this act. 
 
 § 5. Whenever it shall satisfactorily appear by the ad-oourtT*' ° 
 missions of the defendant, or by proof, that any bond, bill, 
 note, assurance, pledge, conveyance, contract, security, or 
 any evidence of debt, has been taken or received in viola- 
 tion of the pi'ovisions of said title or of this act, the court 
 of chancery shall declare the same to be void, and enjoin 
 any prosecution thereon, and order the same to be surren- 
 dered and cancelled. 
 
 § 6. Any person vpho shall directly or indirectly re- ^^f ™'^''' 
 ceive any greater interest, discount, or consideration than 
 is prescribed in the said title, and in violation of the pro- 
 visions of said title or of this act, shall be deemed guilty 
 of a misdemeanor, and on conviction thereof, the person 
 so offending shall be punished by fine not exceeding one 
 thousand dollars, or imprisonment not exceeding six 
 months, or both. 
 
 § 1. It shall be the duty of all courts of justice to oonrt to 
 charge the grand jury especially to inquire into any viola-fun^f* ^""' 
 tion of the provisions of the said title, or of this act. 
 
 § 8. Every plaintiff examined as .a witness pursuant to 1'°°'=''- 
 the provisions of this act, or any defendant under the pro- swearing.^ 
 visions of this a,ct, who shall swear falsely, shall upon con- 
 viction thereof suffer the pains and penalties of wilful and 
 corrupt perjury ; but the testimony given by any plaintiff, 
 or the answer of any defendant, made pursuant to the 
 said title or of this act, shall not be used against such per- 
 son before any grand jury, or on the trial of any indict- 
 ment against such person. 
 
 § 9. So much of title third, chapter fourth and part Repeal. 
 second of the Eevised Statutes, as is inconsistent with the 
 provisions of this act, is hereby repealed. 
 
 § 10. This act shall take effecf on the first day of July /otjotake 
 
 ^'l J J effect Jnlrl^ 
 
 next. 1831. 
 
264 APPENDIX. 
 
 ACT OF APRIL 6, 1850. 
 
 (LAWS 1850, CHAP. 172, P. 334.) 
 
 An Act to prohibit corporations from vnterposmg the 
 defence of usv/ry in any action. Passed April 6, 1850. 
 
 The People of the State of New York, represented im, 
 Senate and AssemMy, do enact as follows : 
 
 Defence of § 1 • ~So Corporation shall hereafter interpose the de- 
 uBiiry. fence of usury in any action. 
 
 } 2. The term corporation, as used in this act, shall be 
 'construed to include all associations and joint stock com- 
 panies having any of the powers and privileges of corpo- 
 rations not possessed by individuals or partnerships. 
 § 3. This act shall take effect immediately. 
 
 Corporation. 
 
 CONSTITUTION OP THE STATE OP 
 NEW YORK. 
 
 {Adopted in 1846.) 
 
 AETICLE VIII. 
 
 Corpora- § 1. Corporatious may be formed under general laws ; 
 created.'"' but shall uot be created bj special act, except for munici- 
 pal purposes, and in cases where, in the judgment of the 
 legislature, the objects of the col'poration cannot be ob- 
 tained under general laws. All general laws and special 
 acts, passed pursuant to this .section, may be altered from 
 time to time, or repealed. 
 Dehts of § 2. Dues from corporations shall be secured by such 
 
 corporations, individual liability of the corporators and other means as 
 may be prescribed by law. 
 "Corpora- § 3. The term corporations, as used in this article, shall 
 flned.'''^' be construed to include all associations and joint stock 
 
APPENDIX. 265 
 
 companies having any of the powers or privileges of cor- 
 porations not possessed by individuals or partnerships. 
 And all corporations shall have the right to sue and shall 
 he subject to be sued in all courts in like cases as natural 
 persons. 
 
 § 4. The legislature shall have no power to pass any charters 
 act granting any special charter for banking purposes ; butpmpoBes."*' 
 corporations or associations may be formed for such pur- 
 poses under general laws. 
 
 § 5. The legislature shall have no power to pass any spectepay- 
 law sanctioning in any manner, directly or indirectly, the™™'°" 
 suspension of specie payments by any person, association 
 or corporation issuing bank notes of any description. 
 
 § 6. The legislature shall provide by law for the regis- Eegistryof 
 try of all bills or notes issued or put in circulation as^'"°°"'°'*^ 
 money, and shall req^uire ample security for the redemp- 
 tion of the same in specie. 
 
 § 7. The stockholders in every corporation and joint inaividnai 
 stock association for banking purposes, issuing bank notes trKock-' 
 or any kind of paper credits, to circulate as money, after ''°''^^"' 
 the first day of January, one thousand eight hundred and 
 fifty, shall be individually responsible to the amount of 
 their respective share or shares of stock in any such cor- 
 poration or association, for all its debts and liabilities of 
 every kind contracted after the said first day of January, 
 one thousand and fifty. 
 
 § 8. In case of the insolvency of any bank or banking rnooivenoy 
 association, the bill holders thereof shall be entitled to prefmesM. 
 preference in payment over all other creditors of such 
 bank or association. 
 
^SQ APPENDIX. 
 
 NEW YORK CLEARING HOUSE. 
 
 Foe two years past, the banks of the City of New York 
 have conducted their exchanges with each other through 
 the Clea/ring House. The adoption of this system lias not 
 only saved much labor, but has led to important changes 
 in the manner of doing business. Some account of its 
 origin, its working, and its results, will not be deemed 
 inappropriate here. 
 
 At the time when this institution started, fifty-seven 
 banks, between which exchanges had to be made, were 
 doing business in the city of New York. On the plan 
 then in use, each bank must have an account with every 
 other bank. In fact, each one of these institutions kept a 
 City BmiJc Ledger of fifty-six bank accounts, and also, on 
 their General Ledger, an account with " City, Banhs," 
 which account was made np of the totals of the fifty-six 
 accounts in the City Bank Ledger. Thus, each bank, 
 which exchanged with all its associates, was compelled to 
 keep fifty-seven open, active accounts. It follows, that the 
 whole number of such accounts, supposing- that all ex- 
 changed with all, was three thousand two hundred and 
 forty- nine. This, however, would overstate the actual fact, 
 as there were always some exceptions to a universal and 
 reciprocal exchange. 
 
 Each bank received from its dealers, on, deposit or in 
 payment of notes, &c., the bills of and cheeks upon every 
 other city bank, and also of banks not in the city, if they 
 redeemed atfo/r through some bank in it. At the close 
 of the day's transactions, the funds thus received were as- 
 sorted and brought together. The items for each bank were 
 entered on t slip, with the total amount in which each was 
 debited. To these, on the following morning, were added 
 such items ascame by mail, or from any other source before 
 the delivery of the exchanges. For the total amount, after 
 such additions, an entry had to be made to the debit of 
 each bank whose exchange had been increased. 
 
APPENDIX. 267 
 
 The exchanges were then sent from bank to bank. _ For 
 two hours and more the tellers and porters were occupied in 
 their reception and delivery ; before the result could be 
 known, it was necessary to receive the last exchange, to 
 make at least fifty-six debit and credit entries on tbe books 
 of the respective banks, and the same number of entries in 
 the pass-books used in exchanging. That is, there were 
 one hundred and twelve postings on each of the fifty -six 
 City Bank Ledgers. Thus an aggregate of about six thou- 
 sand five himdred entries and postings were required daily, 
 in making the exchanges. There were so many banks, that 
 it took a large part of their time to exchange and settle 
 with one another. 
 
 Their balances were paid in coin, and the custom was 
 to settle them on Friday of each week, though all were at 
 liberty to diaw at pleasure for balances due. Every bank 
 was daily a debtor to some banks, and a creditor of others. 
 Ttiis happened, whether a bank were, in the aggregate, deb- 
 tor or creditor. When a settlement was made, each bank 
 had to draw off, on a separate book, the city bank balances 
 as they stood on the morning of settlement-day after the 
 exchanges were made. 
 
 "When the money market was stringent, or specie was 
 want ed for shipment, the banks often drew on one another, 
 without waiting for the regular settling day. After the week- 
 ly statement la/w went into force (see pp. 195, 196, anti) 
 they used to draw nearly every day. The course of oper- 
 ation was somewhat as follows : — A bank, wanting specie, 
 drew on some other bank which owed it a balance ; this 
 batik paid, probably, with a draft on some other bank 
 which owed it. Then came a general drawing of drafts, 
 extending to all the banks, and lasting through the bank- 
 ing hours. Next came a movement of specie from bank 
 to bank, all over the city. Some paid, others took, — one or 
 the other, all did ; and when the movement was over, they 
 were just as near a settlement as when they began. All 
 this expensive fuss was occasioned often by a small defici- 
 ency of coin in some particular quarter. 
 
 Often, the result of such movements was a general want 
 of confidence, followed by a contraction of loans, by need- 
 less panics, and fluctuating stock markets. A system at- 
 tended with so much labor and uncertainty, so productive 
 of errors, of competition, and disagreement, could not be 
 long endured. The want of some better system for the 
 mutual exchanges and settlements of the banks, was gener- 
 ally and strongly felt. The General Bank Act and the 
 
268 APPENDIX. 
 
 ntimerons banks to which it gave rise, the passage of stricter 
 laws in regard to banking, and especially of that which 
 required the rendering of a weekly statement, tended much 
 to make more apparent the necessity of some change. 
 
 But though bank officers talked the matter over, and 
 though various schemes and remedies were suggested, in con- 
 versation and through the papers,nothing effectual was done, 
 until 1853. On the 23d of August in that year, in obedi- 
 ence to a call from the Meclianici Bcmk, a meeting of bank 
 officers was held to consider the suBJpct. Sixteen Presi- 
 dents, one Yice-President, and twenty-one Cashiers were 
 present, the representatives of thirty-eight banks. No such 
 meeting had occurred for a long time. Among the officers 
 of the older banks there were several who had not met for 
 years, and quite a number of the gentlemen were wholly 
 unacquainted, l^otwithstanding this, the meeting proved 
 remarkably harmonious. The necessity of some change in 
 the prevailing system was fully recognized, and a commit- 
 tee was appointed to consider the subject and report a plan. 
 A series of meetings followed, which resulted in forming an 
 association of banks, and in the establishment, by that associ- 
 ation, of the New York Clearmg House. '1 he Clearing 
 House commenced operations under the direction of a com- 
 mittee appointed by the associated banks. Their names 
 follow : — 
 
 Feaitois W. Edmonds, Cashier of the Mechanics' Bank. 
 James Punnett, Cashier of the Bank of America. 
 Augustus E. Silliman, Cashier of the Merchants' Bank. 
 John L. Eveeitt, Cashier of the Broadway Bank. 
 KioHAED Beeet, Cashier of the Tradesmens' Bank. 
 
 By this committee, Me. Gkoege D. Lyman, then a 
 teller in the BanJc of North America, was appointed Man- 
 agee of the Cleaeing House, to be assisted by two Clerks ; 
 soon after. Me. Jacob Stout was made Assistant Manager. 
 
 The institution thus organized, has been in successful 
 operation from that time. At its commencement, there 
 were iifty-two banks in the association, forty-eight of which 
 are still associated. Tlie five banks which declined joining 
 were small institutions. Two or three of them subsequently 
 sought admission, which it was not thought advisable to 
 grant. 
 
 No bank can now do business unless it is admitted to 
 the Clearing House, or makes its exchanges through some 
 bank belonging to the association. Such an arrangement 
 
APPENDIX. 269 
 
 is too inconvenient to be extensively adopted. As no new 
 banks have been established since the Clearing House be- 
 gan, its creation has evidently proved a wholesome check 
 upon excessive banking. 
 
 On the day when the Clearing House began business, 
 about twenty-seven hundi-ed open active accounts on the 
 ledgers of the associated banks, were balanced, — the most 
 of them for the first time, and all of them finally. The 
 business which had rendered necessary this large number 
 of accounts, was thenceforth accomplished more quickly, 
 with less annoyance to bank officers, and with greater 
 safety to all concerned. 
 
 While there was an immense saving of time and labor, 
 the incidental benefits resulting far exceeded the expecta- 
 tions of those who projected the establishment. It has 
 strengthened the entire banking system of the city; it 
 tends to prevent sudden contractions and expansions ; 
 makes the business of banking more uniform, regular, and 
 safe ; while the banks themselves are really more inde- 
 pendent. Each bank now regulates its affairs by the daily 
 position of its balances with the Clearing House; knowing 
 that its debtor balances must be paid, every day in full, 
 and. that its credit balances will be received in the same 
 way. As the daily movements of each bank in the asso- 
 ciation can be known by inspecting the accounts of the 
 Clearing House, every bank knows how to govern its ex- 
 changes with its associates, and may conduct its own busi- 
 ness with entire independence of other banks. Under the 
 old mode, banks had no means of knowing each others' 
 situation. The Clearing House books show' this, and are 
 open to all the members. The value of such information 
 must be evident to all. This association of the banks gives 
 strength to them all. No bank which does not manage its 
 business on a safe basis, and according to the true princi- 
 ples of banking, will be received or retained by the associa- 
 tion. 
 
 It is quite clear that the associated banks have a great 
 advantage over any which may try to do business inde- 
 pendently of the Clearing House. The daily settlement, in 
 full, of balances, is sure to correct any tendency among 
 the associates, to excessive banking. Such a state of things 
 becomes immediately known to all, is followed by loss of 
 credit and standing, and, if continued, by suspension or 
 expulsion ; and this is the same as utter ruin. Credit 
 is essential in the conducting of banking business ; and if a 
 
270 APPENDIX. 
 
 bank has not enougli of this essential to make its exchanges, 
 it can no longer do business, and must wind up. 
 
 In the bank association of the NewYork Clearing House, 
 there is a common bond of union. All have an equal voice 
 in its management. All share alike in its privileges and 
 benefits. In an important sense, the interest of each is thus 
 made the interest of all. Nor is it a slight advantage that 
 it brings together, and makes acquainted, tbe officers^ of the 
 several banks — and thus leads to harmony both of feeling 
 and action. While each institution still seeks for itself the 
 highest profit consistent with security, all are brought to 
 feel that they have a common inteiest in maintaining the 
 credit of the banking system. 
 
 All must be aware that the prosperity of the city of 
 New York is largely dependent on the credit of its banks. 
 Through the facilities which they aflTord or withhold, they 
 give tone to its business, which they not only represent, 
 but, to a great extent, sustain and control. How import- 
 ant that their management should be right and safe ! How 
 essential to the prosperity of a mercantile community, that 
 the credit of its banks should continue unimpaired! 
 
 There can be no question that the establishment of the 
 New York Clearing House has added to the credit of the 
 city banks, and to the permanent prosperity of the city 
 itself. As this institution is now well established, its use- 
 fulness admitted, and its system about to be imitated by 
 the banks of other cities, an account of the mode in which 
 its business is conducted may be timely and useful. 
 
 The daily routine of business is as follows : 
 
 At ten, A. M., each of the forty-eight associated banks 
 is represented at the Clearing House by a settling clerk and 
 a specie clerk, or porter. The settling clerk brings a state- 
 ment, showing — 
 
 First. The amount which has been received by the 
 bank he represents, of checks upon, bills of, and checks 
 and notes of, other banks redeemed by each and every bank 
 belonging to the association, down to the close of business 
 on the preceding day. 
 
 Secondly. Amounts received by remittances or in 
 other ways, and added to the exchanges, that morning. 
 
 Thirdly. The united amount of the first two items, be- 
 ing the total of what they bring to the Clearing House for 
 exchange. 
 
 The following is given as a specimen of the ruling or 
 form of the above statement. 
 
APPENDIX. 
 
 271 
 
 Wo. 1, Settlmg Cleric's Statement of the Banh of New 
 York, Oatdber 1st, 1855. 
 
 NO. 
 
 BANKS. 
 
 FIRST DEBIT. 
 
 ADDITIONS. . 
 
 TOTAL DEBIT. 
 
 BANKS CK. 
 
 NO. 
 
 2 
 3 
 
 4 
 
 Manhattan Cp., . . . 
 Merchanta' Bank, . 
 Mechaniea' Bank, . 
 
 $10,000 00 
 
 2,000 00 
 5,000 00 
 
 $7,000 00 
 
 500 00 
 
 $10,000 00 
 
 9,000 00 
 5,500 00 
 
 $6,000 00 
 
 15,000 00 
 8,764 00 
 
 2 
 3 
 4 
 
 
 $17,000 00 
 
 $7,500 00 
 
 $24,500 00 
 
 $29,764 00 
 
 
 
 Dr. Balance, 
 
 
 
 
 
 $6,264 00 
 
 
 _ 
 
 He also brings a ticket, which informs the Clearing 
 House of the amount sent for exchange by the bank he 
 represents, and for which he receives a credit. This amount 
 is shown in his statement, under the column headed "Total 
 debit," and in the above example would be $24,500 00. 
 This statement has a column in which the amounts to be 
 received are to he entered. This column is headed " Banks 
 Or." The specie clerk or porter of each bank brings with 
 him a statement of the amount, which the bank lie repre- 
 sents sends in against each of the other banks, made in the 
 following form : 
 
 Wo. 1, Specie Clerk's Statement of the Bank of New York, 
 October 1st, 1855. 
 
 NO. 
 
 BANKS. 
 
 DE. 
 
 DR. 
 
 EEOEIVED BT. 
 
 NO. 
 
 2 
 3 
 
 4 
 5 
 
 Manhattan Conipany, ; 
 
 Merchants' Bank, 
 
 Mechanics' Bank, 
 
 Union Bank, 
 
 $10,000 00 
 9,000 00 
 6,600 00 
 
 
 C. 
 
 B. 
 
 8. 
 G. 
 
 2 
 3 
 
 4 
 5 
 
 
 
 
 
 $24,500 00 
 
 
 
 The specie clerk also brings the exchanges, composed of 
 checks upon and bills of the several banks, made up in 
 parcels for each bank, with a slip upon the top stating the 
 amount of each item of exchange ; stating also the total of 
 the amount to be delivered each bank. This statement has 
 a column headed " Received by " — ^the slip covering each 
 exchange is in the following form, as shown by a slip of 
 Bank JVo. 1, the Bank of New York, on Bamk'Wo. 2, the 
 Manhattan Company : — 
 
272 
 
 APPENDIX. 
 
 No. 2, 
 Manhattan Company. 
 
 Prom No. 1, 
 Bank of Ne-w York. 
 
 Check, 
 
 $2,500 00 
 6,500 00 
 1,000 00 > 
 
 
 Bills, '. 
 
 
 $10,000 00 
 
 The counter of the Clearing House is an ellipse. Each 
 of the forty-eight banks, which are numbered according to 
 their age, has its own portion of this counter, distinctly 
 marked. At ten o'clock the manager calls the clerks to 
 their stations. The settling clerks arrange themselves on 
 the inside of the counter — the specie clerks take the outside. 
 The specie clerks so arrange their exclianges, that the first 
 is for the bank next on the right — and the last for that up- 
 on the left. At the manager's signal, each of these clerks 
 moves toward the right, and delivers to the bank next his, 
 the parcel of money which he has for it. For this he takes 
 a receipt of the settling clerk, who must first make sure 
 that the amount received corresponds with that named in 
 the statement brought by the specie clerk. In this way, 
 the specie clerks proceed till they have made the circuit of 
 the counter : by which time all their exchanges have been 
 delivered, and a receipt has been taken for each. The 
 whole is done in five minutes. The settling clerks enter 
 the exchanges on their statements to the credit of the re- 
 spective banks, and then call them over with the specie 
 clerks to make sure that all is right. They then ascertain 
 the amount received, and the difference between that and 
 the amount brought by the specie clerk of their bank to be 
 exchanged. This decides whether it is debtor or creditor 
 with the Clearing House. The specie clerks now go home, 
 and the receipts which they carry convey to the banks thus 
 early in the morning, a "knowledge of their position at the 
 Clearing House for that day. The settling clerks remain, 
 and each prepares a ticket, stating the amount he has re- 
 ceived — the amount brought, and the balance between the 
 two sums, whether for or against his bank. From these 
 
APPENDIX. 
 
 273 
 
 tickets, and those which were brought to the Clearing 
 House by the settling clerks, the entries on the Clearing 
 House proof are made, and, at half-past ten, the result is 
 announced. 
 
 It is plain that the aggregate amonnt of exchanges sent 
 to the Clearing House, and for which each bank receives on 
 the proof sheet its proportion of credit, must be the same as 
 the aggregate amount returned to the banks, after making 
 the exchange — although each bank thus becomes a debtor 
 or creditor of the Clearing House. The total indebtedness 
 thus created, of the banks to the Clearing House, exactly 
 equals the indebtedness of the House to those banks which 
 brought a greater amount of exchanges than they received. 
 In omer words, each bank sends, to the Clearing House 
 forty-seven parcels of exchange — ^being one for each of the 
 other associate bankfe. For these, respectively, it gets the 
 receipts of the settling clerks of their banks. With the 
 total of these receipts it is credited by the Clearing House. 
 It also receives one exchange from each of the other forty- 
 seven banks, giving the receipt of its settling clerk therefor. 
 With the total amount thus received, it is debited by the 
 Clearing House. If a bank delivers a larger amount of ex- 
 changes than it receives, the Clearing House becomes in- 
 debted to it for the difference : or, if it be the other way, 
 the Clearing House is its creditor for the balance. The 
 following specimen of a proof sheet, made for five banks, 
 illustrates what is stated above : — 
 
 New York Clearing House Proof, October \st, 1855. 
 
 NO. 
 
 BANKS. 
 
 BALANCES 
 DDE BY 
 BANKS. 
 
 BANKS DB. 
 
 BANKS CE. 
 
 BALANCES 
 DUE TO 
 BANKS. 
 
 1 
 
 2 
 3 
 4 
 S 
 
 B'k of New York, 
 Manhattan Co., . . 
 Meroliants' Bank, 
 Mechanics' Bank, 
 Union Bank 
 
 $5,254 00 
 
 46,000 00 
 
 3,111 80 
 
 $1,129,754 00 
 1,450,000 00 
 2,796,000 00 
 1,195,634 20 
 1,039,892 88 
 
 $1,124,500 00 
 1,500,000 00 
 2,750,000 00 
 1,200,000 00 
 1,036,781 08 
 
 $50,000 00 
 
 4,S65 80 
 
 
 $54,365 80 
 
 $7,611,281 08 
 
 $7,611,281 08 
 
 $54,365 80 
 
 As might be expected in a process depending on the 
 accuracy of nearly a hundred clerks, errors often occur. It 
 seldom happens that a proof is obtained at the first trial. 
 
 18 
 
2U 
 
 APPENDIX 
 
 To detect these errors, small check tickets, like the accom- 
 
 panying example , are used. 
 
 All the banks are provided with 
 sets of these tickets, printed with blank 
 amounts, one for each bank, and made 
 up in parcels, in numerical order, as 
 the banks are arranged at the Clearing 
 House : each bank using one set of 
 tickets per day. It has already been 
 shown that the proof is based "on the 
 statements of the settling clerks ; that 
 
 No. 2, 
 
 Manhattan Company, 
 
 from No. 1, 
 
 Bank of New York. 
 
 i;io,poo 
 
 the amounts therein stated are assumed as correct ; and that 
 the credit entries are made from exchange slips. It is evi- 
 dent that the statement of each settling clerk contains two 
 amounts, which must also be found on the statement of every 
 other bank in the association. To assure their agreement 
 it is necessary that each settling clerk shall make a set of 
 tickets from his statement, showing the amount according 
 to it, which he has set against every other bank. After 
 making out and delivering these tickets, each settling clerk 
 proceeds to compare and cheek those which he has received. 
 He thns reconciles his entries made from exchanges re- 
 ceived, with the debits made on the statements of the banks 
 from which the exchanges came. If the proof be not ar- 
 rived at in this way, the difference is clearly owing to some 
 error in footing. To ascertain where and what it is, the 
 settling clerks are directed to interchange their statements, 
 and to examine each other's footings. By this process the 
 last error is detected and a proof is made. The clerks are 
 then dismissed, and not till then. 
 
 To insure dispatch and accuracy, forty-five minutes 
 are allowed for getting the proof. For every error not 
 found before the expiration of this time, a fine is imposed^ 
 varying from one dollar to twelve dollars, and these fines 
 are reported monthly to the banks whose clerks have made 
 the errors. The clerks are thus rendered vigilant and at- 
 tentive, and the making of the proof seldom exceeds the 
 allotted period. 
 
 Connected with the Clearing House is a deposti bank. 
 At this time the Bank of America acts in such capacity for 
 the association. In this bank, the other members of the 
 association deposit specie in such sums as they see fit, 
 receiving certificates of deposit in sums of $500, $1,000, 
 $5,000, and $10,000. These certificates state that the 
 Bank of America has received, and holds the same in trust, 
 
APPENDIX. 275 
 
 as a special deposit, payable only to tlie order of a bank 
 belonging to the association, on presentation, indorsed by 
 Buch bank. TBe amount held in this way by the Bank of 
 America for some time past is $6,500,000. 
 
 The certificates alluded to are used instead of specie, in 
 settling balances with the clearing house. They thus ren- 
 der needless a daily and costly transportation of coin. 
 
 At one o'clock, the debtor banks come to the clearing 
 house, and pay the balances against them in these certifi- 
 cates ; or if the sums be less than $500, in their own notes 
 and in coin. These banks having all paid their debts and 
 taken the manager's receipts therefor, the creditor banks, 
 at half past one, come in, by their specie clerks, take the 
 balances due them, and give their receipts for the same. 
 At two, P. M. tlie settlement is completed, and the day's 
 work is over. 
 
 The results thus accomplished may be briefly enumer- 
 ated as follows : 
 
 First: The condensation for each bank of forty-eight 
 balances into one, and the settlement of that balance with- 
 out a movement of specie. 
 
 Secondly: The avoidance of numerous accounts, entries, 
 and postings. 
 
 Thirdly : Great saving of porters' time, and risk in mak- 
 ing exchanges and settlements from bank to bank. 
 
 Fourthly: Relief from a vast amount of labor and an- 
 noyance to which the great army of cashiers, tellers, and 
 book-keepers were subjected under the old system. 
 
 Fifthly : The liberation of the associated banks from all 
 injurious dependence on each other. 
 
 Sixthly : The absolute facility afforded by the books of 
 the Clearing House, for knowing at all times the manage- 
 ment and standing of every bank in the association. 
 
 To other advantages and results, more general in their 
 nature, and less direct, but not less important and benefi- 
 cial, we have already alluded. The Clearing House sys- 
 tem needs no higher commendation than the fact, that it 
 has proved entirely satisfactory to the banks and banking 
 interests of the city of New York. It has checked, and 
 almost wholly prevented, those violent expansions and con- 
 tractions of loans, which produce unhealthy fluctuations in 
 the money market. It has enlarged the specie ba^s of the 
 banks by rendering it absolutely necessary for its members 
 to hold at all times such an amount in specie, or specie certifi- 
 cates, as will enable them to meet promptly every demand 
 
2T6 APPENDIX. 
 
 that can be made upon them. It thus makes the suspen- 
 sion of specie payments very improbable. 
 
 The system has proved no less satisfactory to the com- 
 munity in general. Its value is beginning to be under- 
 stood elsewhere. Boston has just adopted it. Its immense 
 and manifest utility must commend it to every large city 
 in the Union. Possibly, the time is not remote when a 
 voluntary system of par exchanges, and redemption of 
 bank issues, will exist among all the banks of the United 
 States. 
 
 The business of the iN'ew York Clearing House in ex- 
 changes, averages about $20,000,000 per day. The daily 
 balances amount to about $1,000,000. Vast as are these 
 amounts, the exchanges are all made in five minutes ; the 
 proof is obtained in less than an hour, and the balances 
 between the banks are all settled between the hours of one 
 and two, P. M. For two years this enormous business has 
 been transacted without the error or loss of a single cent. 
 
 The institution costs the banks about $16,000 a year ; 
 an expense which is divided among them in proportion to 
 their capital. It is, therefore, as cheap as it is useful. 
 
 The Clearing House is on the second floor of No. 82 
 Broadway. Its ofl&cers are, a manager, an assistant man- 
 ager, and a clerk. Its accounts, though so large in amount, 
 are very simple. They are mainly kept in four books. 
 
 First : The Eeooed Book. This is a mere copy of the 
 proof sheet. 
 
 Second : The Balance Book. In this a receipt is taken 
 for every balance paid to a creditor bank. 
 
 Thvrd : The Ledger. In this all amounts entered on 
 the Kecord Book are duly posted to the account of each 
 bank. 
 
 Fourth : The Monthly Statement Book. This is made 
 up from the Ledger, and is a proof of it. 
 
 The last is the most important book kept by the Clear- 
 ing House. It shows the monthly amount of exchanges 
 received from and delivered to each bank ; the balances 
 paid and received by each ; and the monthly movements of 
 each bank, whether as debtor, in excess, or creditor. By 
 examining this book through a series of months, the course 
 of business in any bank may be exactly known ; and from 
 this a reliable opinion may be formed in regard to the man- 
 agement and real position of the Bank. Accordingly, this 
 book is often consulted. By reference to it, the bank offi- 
 cers regulate, to a great extent, their mutual exchanges. 
 
APPENDIX. 277 
 
 There are other books, such as its own accounts, and 
 one for the statistics of banking. The weekly statement 
 required by law of the banks, and published in the pa- 
 pers every Tuesday morning, is made up in tabular form 
 from this book. An account of these statements is kept 
 with each bank, an account which shows its increase or 
 decrease of business. From the same book at the end of 
 the year, is drawn a statement of the average business of 
 each bank during the year. The fluctuations in business 
 in any month or week, the growth or decline of business 
 with each and every bank, may be found here. 
 
 This association is a voluntary organization, and is gov- 
 erned by the following Constitution.* 
 
 * For the preceding clear and valuaWe account of the New Torh Clear- 
 ing House, the compiler is indebted to Geokqe D. Lyman, Esq., the able and 
 successful Manager of the Institution. 
 
278 APPENDIX. 
 
 CONSTITUTION 
 
 OF THE 
 
 NEW YORK CLEARING HOUSE. 
 
 Adopted Jnue 6tli, 1854. 
 
 § 1. The name of this Association shall be " The JSTew 
 YoEK Clearing House Association." 
 
 § 2. The objects of the Association shall be the effecting 
 at one place of the daily exchanges between the several 
 Associated Banks, and the payment at the same place of 
 the balances resulting from such exchanges. But the Asso- 
 ciation shall be in nowise responsible in regard to such ex- 
 changes, nor in regard to the balances resulting therefrom, 
 except so far as such balances shall be actually paid into 
 the hands of the Manager. The responsibility of the Asso- 
 ciation is strictly limited to the faithful distribution by the 
 Manager among the Creditor Banks, for the time being, of 
 the sums actually received by him ; and should any loss 
 occur whilst the said balances are in the custody of the 
 Manager, they shall be borne and paid by the Associated 
 Banks, in the same proportion as the other expenses of the 
 Clearing House, as hereinafter provided for. 
 
 § 3. The Association at present consists of the following 
 members : — {Here a/re mserted the names of the Associated 
 JSanlcs.) 
 
 § 4. Each Bank belonging to the Association shall be 
 represented at all meetings thereof by one or more of its 
 principal officers, and shall be entitled to one vote. 
 
 § 6. A general meeting of the Association shall be 
 holden at the Cleaeing House, on the first Tuesday in Oc- 
 tober, in each, year, at 12 o'clock M. At every annual 
 meeting a Chairman shall be elected, by ballot, to preside 
 at that meeting, and all subsequent meetings during the 
 year. "Whenever he shall be absent, a Chairman j?to tern. 
 
APPENDIX. 279 
 
 shall be appointed. At the same meeting, a Secretary shall 
 also be elected by ballot. 
 
 § 6. Special meetings shall be called by the Clearing 
 Souse Committee whenever they may deem it expedient, 
 or whenever they shall be thereto requested by any seven 
 of the Associated Banks. 
 
 § 7. At all meetings of the Association, a quorum for 
 the transaction of business shall consist of a majority of 
 the whole number of Associated Banks. 
 
 § 8. At every annual meeting, a Standing Committee 
 oi Fvue Bank Officers shall be elected by the majority and 
 by ballot, to be called the Clearing House Committee, whose 
 duty it shall be to procure, from time to time, a suitable 
 room or rooms for the Clearing House ; to provide proper 
 books, stationery, furniture, fuel, and whatever else may be 
 necessary for the convenient transaction of business thereat ; 
 to appoint a Manager annually, and such Clerks as may be 
 necessary ; to establish rules and regulations to be observed 
 at the Clewring House in cases not provided for in this 
 Constitution, subject to the approval of the Association; 
 and generally to supervise the Clearing House affairs. 
 This Committee shall have charge of ihe funds belonging 
 to the Association ; shall draw on each bank for its quota 
 of the expenses ; and shall also, at the first meeting of the 
 Association after their election, submit detailed estimates 
 of the expenditures that will be required for the Clearing 
 House during the current year. 
 
 § 9. The salary of the Mnnager shall always be fixed by 
 the Association. The salaries of the Clerks shall be fixed 
 by the Clearing House Committee. The Manager shall 
 give a bond, with sureties, in the sum of ten thousand dol- 
 lars, and each Clerk in the sum of five thousand dollars, to 
 be approved by said Committee. 
 
 § 10. Tlie Manager, under control of tlie Clearing House 
 Committee, shall have immediate charge of all business at 
 the Clearing House, so far as relates to the manner in 
 which it shall be transacted ; and the Clerks of the estab- 
 lishment, as well as the Settling Clerks and Porters of the 
 several Associated Banks, while at the Clearing Hoy,se, shall 
 be under his direction. 
 
 § 11. The Clea/ring House Committee shall have power 
 to remove the Manager or any of the Clerks, whenever, in 
 the opinion of the Committee, the interest of the Associa- 
 tion shall require. 
 
 § 12. The horn- for making exchanges at the Clearing 
 
280 APPENDIX. 
 
 Mouse shall be 10 o'clock A. M., precisely. At 1 o'clock 
 P. M., the debtor banks shall pay to the Manager, at the 
 Clearing House, the balances against them, either in actual 
 coin, or in the certificates hereinafter mentioned, except 
 fractional amounts. At 1|- o'clock P. M., the creditor 
 Banks shall receive from the Manager, at the same place, 
 the respective balances due to them, provided the balances 
 due from the debtor Banks shall then Lave been paid. 
 
 § 13. Should any one of the Associated Banks fail to appear 
 at the Clearing Souse at the proper hour, prepared to pay 
 the balance against it, the amount of that balance shall be 
 immediately furnished to the Clearing Souse by the several 
 Banks exchanging at that establishment with the defaulting 
 Bank, in proportion to their respective balances against 
 that Bank resulting from the exchanges of the day ; and 
 the Manager shall make requisitions accordingly, so that 
 the general settlement may be accomplished with, as little 
 delay as possible. The respective amounts so furnished the 
 Clearing Mouse on account of the defaulting Bank will, of 
 course, constitute claims oa the part of the several respond- 
 ing Banks against that Bank ; but, as before stated, the 
 Association shall in nowise be responsible therefor. 
 
 § 14. Errors in the exchanges, and claims arising from 
 the return of checks, or from any other cause, are to be ad- 
 justed directly between the banks who are parties to them, 
 and not through the Clearing Mouse, the Association being 
 in no way responsible in respect to. them. 
 
 § 15. Reclamations for errors and deficiencies in specie 
 received at the Clearing Mouse, contained in bags or other 
 packages, sealed and marked in conformity with any rules 
 established upon that subject by the Clearing Mouse Com- 
 mittee, should be made withia a reasonable time by the 
 receiving Bank directly against the Bank whose mark the 
 sealed bag or package bears, the Association not being re- 
 sponsible for the contents of such sealed bags or other 
 packages. 
 
 § 16. The Associated Banks shall, from time to time, 
 appoint one of their own number to be a D&positary to re- 
 ceive, iii special trust, such coin as any of the Associated 
 Banks may choose to send to it for safe keeping. The De- 
 positary shall issue certificates in exchange for such coin, 
 in proper form, and for convenient amounts. Such certifi- 
 cates shall be negotiable only among the Associated Banks, 
 and shall be received by them in payment of balances at 
 tlie Clearing Mouse. Such special deposits of coin are to 
 
APPENDIX. 
 
 281 
 
 be entirely voluntary, each Bank being left perfectly free 
 to make them or not at its own discretion. The coin thus 
 placed in special deposit is to be the absolute property of 
 such of the Associated Banks as shall, from time to time, 
 be the holders of the certificates, and is to be held by the 
 Depositary subject to withdrawal, on the presentation of 
 the proper certificates, at any time during banking hours. 
 
 § IT. New members may be admitted into the Associa- 
 tion at any meeting thereof. Such new members shall pay 
 an admission fee of one thousand dollars, and shall signify 
 their assent to this Constitution in the same manner as the 
 original members. But no new member shall be admitted 
 except by a vote of three-fourths of those present. 
 
 § 18. ' A Standing Committee of Five Bank Officers shall 
 be appointed. at every annual meeting, to whom all appli- 
 cations for admission into the Association shall be referred 
 for examination. 
 
 §19. For cause deemed sufficient by the Associated 
 Banks, at any meeting thereof, any Bank may be expelled 
 from the Association, and debarred from all the privileges 
 of the Clearing House, provided a majority of the whole 
 number of Associated Banks vote in favor thereof. 
 
 § 20. A Standing Committee of Five Officers of BamJcs 
 shall be elected at every annual meeting, who, acting in 
 concurrence with the Clearing House Cormnittee, shall have 
 power, in case of extreme emergency, to suspend any Bank 
 trom the privileges of the Clearirhg House until the pleasure 
 of the Association thereupon shall be ascertained. But no 
 such suspension shall take place unless a majority, at least, 
 of each of these two Committees shall be present at the or- 
 dering thereof, nor unless the vote be iinanimous. In case 
 of such suspension, the Clearvng House Committee shall 
 forthwith call a general meeting of the Association to take 
 the matter into consideration. 
 
 § 21. Any member of the Association may withdraw 
 therefrom at pleasure, first paying its due proportion of all 
 expenses incurred, and signifying its intention to withdraw, 
 to the Clearing House Committee. 
 
 § 22. The expenses of the Cleari/ng House, not including 
 the expense of printing for the several Banks (which last- 
 mentioned expense shall be apportioned equally), shall be 
 borne and paid by the several Banks belonging to the As- 
 sociation, according to their respective capitals, as follows : 
 
 Banks having capitals of less than $500,000, shall pay 
 ^100 each, annually. 
 
282 APPENDIX. 
 
 Banks having capitals of less than $1,000,000, and not 
 less than $500,000, shall pay $200 each, annually. 
 
 Banks having capitals of $1,000,000 and over, shall pay 
 $300 each, annually. 
 
 And in the same proportion if more funds become 
 necessary. 
 
 § as. This Constitution, when agreed to by the Associa- 
 tion at any general meeting thereof, by a majority of votes, 
 shall be submitted to the respective Boards of Directors of 
 the several Banks herein named as members of the Asso- 
 ciation, for their adoption. "When adopted by a majority 
 of the whole number of Banks, it shall be deemed and taken 
 to be in full force and operation. Adoption shall be signi- 
 fied by the signature of the proper officer of the Bank to 
 two copies hereof, one to be kept by the Chairman of the 
 Clearing Souse Committee, and the other by the Secretary 
 of the Association. A copy of the vote or resolution of the 
 Board authorizing such signature shall be deposited with 
 the Secretary. Such Banks as shall not adopt this Consti- 
 tution within two montbs from the time it is agreed to in 
 general meeting as above mentioned, shall, at the expira- 
 tion of such two months, cease to be members of the Asso- 
 ciation, provided the Coiistitution shall then be in opera- 
 tion. 
 
 § 24. Amendments of this Constitution may be made at 
 any meeting of the Association, by the vote of a majority 
 of all the members thereof, notice of the proposed amend- 
 ments having been given at a previous meeting. 
 
 The following is a list of the banks in the city of 
 New York, now belonging (November, 1855) to the Asso- 
 ciation called the New York Cjibaeing House — with the 
 capital, and the Clearing Souse number, of eaph bank. 
 
 No. 
 
 Kamps of B^ks. 
 
 Capital. 
 
 1. 
 
 Bank of New York, 
 
 . $2,000,000 
 
 2. 
 
 Manhattan Company, 
 Merchants' Bank, 
 
 2,050,000 
 
 3. 
 
 . 1,490,000 
 
 4. 
 
 . Mechanics' Bank, 
 
 2,000,000 
 
 5. 
 
 Union Bank, 
 
 . 1,500,000 
 
 6. 
 
 Bank of America, 
 
 2,000,000 
 
 7. 
 
 Phoenix Bank, . 
 
 . 1,200,000 
 
 8. 
 
 City Bank, . 
 
 1,000,000 
 
APPENDIX. 
 
 283 
 
 No. Names of Banks. 
 
 9. North Eiver Bank, 
 
 10. Tradesmen's Bank, . 
 
 il. Fulton Bank, 
 
 12. Chemical Batik, 
 
 13. Merchants' Exchange Bank, 
 
 14. National Bank, 
 
 15. Butchers' and Drovers' Bank, 
 
 16. Mechanics' and Traders' Bank, 
 
 17. Greenwich Bank, 
 
 18. Leather Manufacturers' Bank, 
 
 19. Seventh "Ward Bank, 
 
 20. Bank of the State of New York, 
 
 21. American Exchange Bank, 
 
 22. Mechanics' Banking Association, 
 
 23. Bank of Commerce, 
 
 24. Bowery Bank, 
 
 25. Broadway Bank, 
 
 26. Ocean Bank, 
 
 27. Mercantile Bank, 
 
 28. Pacific Bank, 
 
 29. Bank of the Republic, 
 
 30. Chatham Bank, 
 
 31. People's Bank, . 
 
 32. Bank of North America, 
 
 33. Hanover Bank, 
 
 34. Irving Bank, 
 
 35. Metropolitan Bank, 
 
 36. Citizens' Bank, 
 38. Grocers' Bank, . 
 
 40. Nassau Bank, 
 
 41. East Kiver Bank, 
 
 42. Market Bank, 
 
 43. St. Nicholas Bank, 
 
 44. Shoe and Leather Bank, 
 
 45. Corn Exchange Bank, 
 
 47. Continental Bank, 
 
 48. Bank of the Commonwealth, 
 
 49. Oriental Bank, 
 
 50. Marine Bank, 
 62. Atlantic Bank, 
 
 Capital. 
 
 655,000 
 600,000 
 600,000 
 300,000 
 
 1,235,000 
 750,000 
 600,000 
 200,000 
 200,000 
 600,000 
 600,000 
 
 2,000,000 
 
 3,000,000 
 632,000 
 
 6,000,000 
 356,650 
 600,000 
 
 1,000,000 
 
 1,000,000 
 422,700 
 
 1,500,000 
 450,000 
 412,500 
 
 1,000,000 
 
 1,000,000 
 300,000 
 
 2,000,000 
 400,000 
 300,000 
 600,000 
 413,050 
 650,000 
 500,000 
 600,000 
 914,000 
 
 1,600,000 
 760,000 
 300,000 
 600,000 
 400,000 
 
 "Whole No. of Banks, 48. Capital, $47,880,900 
 
284 
 
 APPENDIX. 
 
 BANKS CHARTERED 
 
 BY THE 
 
 STATE OF NEW YOEK 
 
 FEOM 1782 TO 1829, 
 
 Teae. 
 
 1782. 
 
 1791. 
 
 1792. 
 1793. 
 1799. 
 1801. 
 1803. 
 1805. 
 1807. 
 1808. 
 1810. 
 
 1811. 
 
 (f 
 
 (( 
 
 a 
 <( 
 
 1812. 
 
 ff 
 
 (( 
 a 
 
 1813. 
 (( 
 
 a 
 
 ii 
 
 1814. 
 1815. 
 1816. 
 
 Names of Basks. 
 Bank of Noeth Amekioa,* 
 
 Original Capital. 
 $10,000,000 
 
 Bank .of New York, 
 
 Bank of Alb ant, 
 
 Bank of Coluiebia, 
 
 Manhattan Company, 
 
 Farmers' Bank, 
 
 New York State Bank, 
 
 Merchants' Bank, 
 
 Mohawk Bank, 
 
 Bank of Hudson, 
 
 Mechanics' Bank, 
 
 Bank of Newburgh, 
 
 Bank op Trot, 
 
 Union Bank, 
 
 Mechanics' and Farmers' Bank, . 
 
 Middle District Bank, 
 
 Bank of America, . 
 
 Citt Bank, 
 
 New York Manufacturing Company, 
 
 Bank of Utioa, 
 
 Bank of Orange County, . 
 
 Ontario Bank, 
 
 Bank of Lansingbuegh, 
 
 Catskill Bank, . 
 
 Bank op Niagara, . 
 Jefferson County Bank, 
 
 1,000,000 
 260,000 
 160,000 
 
 2,050,000 
 300,000 
 460,000 
 
 1,250,000 
 200,000 
 300,000 
 
 1,500,000 
 400,000 
 600,000 
 
 1,800,000 
 600,000 
 500,000 
 
 6,000,000 
 
 2,000,000 
 700,000 
 
 1,000,000 
 400,000 
 500,000 
 200,000 
 400,000 
 
 400,000 
 400,000 
 
 * Thia Bank was chartered by the Continental Congress in ITSl. 
 never traneaoted business under its New York Charter. 
 
 It 
 
APPENDIX. 
 
 285 
 
 Teak. 
 
 Names of Banks. 
 
 Oeiginai. Capital. 
 
 1817. 
 
 Bank of Geneva, 
 
 400,000 
 
 a 
 
 Phcenix Bank, . 
 
 . 700,000 
 
 (C 
 
 Bank of Attbuen, . 
 
 400,000 
 
 (1 
 
 Bank of Washington and Waeeen, 
 
 . 400,000 
 
 (C 
 
 Bank of Plattsbuegh, 
 
 300,000 
 
 1818. 
 
 Centeal Bank, . 
 
 . 200,000 
 
 a 
 
 Bank of Chenango, 
 
 200,000 
 
 u 
 
 Feanklin Bank, 
 
 500,000 
 
 1819. 
 
 Geeene County Bank, 
 
 90,000 
 
 1S9.0 
 
 
 
 
 
 
 1822 
 
 • • 
 
 
 1823. 
 
 Teadesmbn's Bank, . 
 
 600,000 
 
 1824. 
 
 Fulton Bank, . 
 
 500,000 
 
 (( 
 
 Chemical Bank, 
 
 400,000 
 
 a 
 
 Long Island Bank, 
 
 300,000 
 
 a 
 
 Bank as Eochestee, 
 
 250,000 
 
 1825. 
 
 Commeeoial Bank of Albany, . 
 
 300,000 
 
 (( 
 
 Dutchess County Bank, 
 
 1.50.000 
 
 « 
 
 Dey Dock Bank, 
 
 200,000 
 
 1826. 
 
 
 
 isaT 
 
 . 
 
 
 S.KJJJ % • 
 
 1828. 
 
 ■ ■ • 
 
 * 
 
 
 . 
 
 
 42 Banks. Aggregate Capital, $29,170,000 
 {Bimng a period of ^1 years.) 
 
286 
 
 APPENDIX. 
 
 BANKS CHARTERED 
 
 By THB 
 
 STATE OF NEW YORK 
 
 lAFETY FUND SYSTEM, 
 
 FROM 1829 TO 1838. 
 
 Yeak. 
 
 Name of Bank. 
 
 Okibinal Capitai- 
 
 1829. 
 
 National Bane, 
 
 . $1,000,000 
 
 u 
 
 Canal Bank of Albany, . 
 
 300,000 
 
 ii 
 
 Bank of Genesseb, 
 
 100,000 
 
 u 
 
 Bank of Ithaca, 
 
 200,000 
 
 u 
 
 LooKFOET Bank, 
 
 100,000 
 
 « 
 
 Meechants' and Mechanics' Bank, 
 
 300,000 
 
 (f 
 
 Meeohants' Exchange Bank, 
 
 . 750,000 
 
 l( 
 
 Bank of Moneoe, . 
 
 300,000 
 
 <f 
 
 Ogdensbuegh Bank, 
 
 . 100,000 
 
 (f 
 
 Wayne County Bank, 
 
 100,000 
 
 (( 
 
 Bank op 'White-Hall, . 
 
 BANKS EE-CHAETEEED. 
 
 . 100,000 
 
 1829. 
 
 Bank of Albany, 
 
 • 260,000 
 
 a 
 
 Bank of Aubuen, 
 
 400,000 
 
 ii 
 
 Bank of Catskill, . 
 
 400,000 
 
 li 
 
 Centeal Bank, 
 
 200,000 
 
 (( 
 
 Bank of Chenango, 
 
 200,000 
 
 li 
 
 Faemees' Bank, 
 
 . 250,000 
 
 ci 
 
 Bank of Geneva, . 
 
 400,000 
 
 a 
 
 Jkffeeson County Bank, 
 
 . 400,000 
 
 i: 
 
 Mechanics' and Faemees' Bank, 
 
 600,000 
 
 a 
 
 Middle Disteiot Bank, 
 
 500,000 
 
 u 
 
 Mohawk Bank, 
 
 200,000 
 
 (1 
 
 Bank of Newbuegh, 
 
 . 400,000 
 

 APPENDIX. 
 
 287 
 
 Ykab. 
 
 Kames op Banks. 
 
 Okiginal Capital. 
 
 1829. 
 
 New Toek State Bank, 
 
 460,000 
 
 (( 
 
 Ontakto Bank, 
 
 500,000 
 
 a 
 
 Bank of Trot, 
 
 500,000 
 
 u 
 
 Bank of Utioa, 
 
 . 1,000,000 
 
 BANEB CHAKTEEED. 
 
 1830. 
 
 BUTCHEES' AND DeOVEES' BaNK, 
 
 300,000 
 
 (( 
 
 Geeenwioh Bank, 
 
 200,000 
 
 u 
 
 Hudson Ritee Bank, 
 
 100,000 
 
 (f 
 
 Livingston County Bank, 
 
 . 100,000 
 
 (( 
 
 Mechanics' and Teadees' Bank, 
 
 200,000 
 
 u 
 
 Onondaga County Bank, 
 
 150,000 
 
 (( 
 
 Otsego County Bank, 
 
 100,000 
 
 a 
 
 Bank of Poughkeepsie, 
 
 100,000 
 
 (i 
 
 Saeato'ga County Bank, 
 
 100,000 
 
 1831. 
 
 Become County Bank, 
 
 100,000 
 
 ii 
 
 Bank of Buffaxo, . 
 
 200,000 
 
 (( 
 
 Chatauque County Bank, 
 
 100,000 
 
 a 
 
 Madison County Bank, 
 
 100,000 
 
 a 
 
 Montgomeey County Bank, 
 
 100,000 
 
 <c 
 
 Oswego County Bane, 
 
 150,000 
 
 a 
 
 Tannees' Bank, 
 
 . 100,000 
 
 u 
 
 Ulstee County Bank, 
 
 100,000 
 
 a 
 
 Yates County Bank, . 
 
 . 100,000 
 
 BAISTKS RE-CHAETEEED. 
 
 1831. 
 
 Bank OF Ameeica, 
 
 . 2,000,000 
 
 
 City Bank, . . 
 
 2,000,000 
 
 
 Mechanics' Bank, 
 
 . 2,000,000 
 
 
 Meechants' Bank, 
 
 1,490,000 
 
 
 Bank of New Toek, . 
 
 . 1,000,000 
 
 
 Teadesmen's Bank, 
 
 600,000 
 
 
 Union Bank, . 
 
 . 1,800,U00 
 
 
 BANKS CHAETEEED. 
 
 • 
 
 1832. 
 
 Beooklyn Bank, 
 
 . 200,000 
 
 a 
 
 Essex County Bank, 
 
 100,000 
 
 li 
 
 Leathee Manufactueees' Bank, 
 
 600.000 
 
 (( 
 
 Bank of Eome, 
 
 100,000 
 
288 APPENDIX 
 
 Teae. Kames of Banks. Original Capital. 
 
 1832. Bank of Salina, . . . 150,000 
 
 " ScHKNECTADT BaNK, . . 150,000 
 
 " Stettben Countt Bank, . . 150,000 
 
 BANKS KE-CHAETERED. 
 
 1833. 
 
 Bank of Lansingbuegh, 
 
 200,000 
 
 (( 
 
 Bank of Oeange County, 
 
 BANKS CHAETEEED. 
 
 400,000 
 
 1833. 
 
 Cayuga County Bank, 
 
 250,000 
 
 u 
 
 Chemung Canal Bank, 
 
 200,000 
 
 a 
 
 Heekimke County Bank, . 
 
 200,000 
 
 <( 
 
 Lewis County Bank, . 
 
 100,000 
 
 (( 
 
 Seneca County Bank, 
 
 200,000 
 
 (E 
 
 Seventh Waed Bank, . 
 
 500,000 
 
 (C 
 
 Teoy City Bank, 
 
 300,000 
 
 (( 
 
 Wkstchestee County Bank, 
 
 200,000 
 
 1834. 
 
 Albany City Bank, 
 
 500,000 
 
 a 
 
 COMMEEOIAL BaNK OP BuJb'i'ALO, 
 
 400,000 
 
 ft 
 
 COMMEECIAL BanK OF NeW ToeK, . 
 
 500,000 
 
 u 
 
 Faemees' and Manufactueees' Bank, 
 
 300,000 
 
 i( 
 
 Highland Bank, 
 
 200,000 
 
 « 
 
 Lafayette Bank of the City ofN. Yoek, 
 
 , 500,000 
 
 (C 
 
 Bank of Oeleans, . 
 
 200,000 
 
 a 
 
 Sacket's Haeboe Bank, 
 
 200,000 
 
 1835. 
 
 
 
 
 
 1836. 
 
 Atlantic Bank, 
 
 500,000 
 
 (( 
 
 CiTi: Bank of Buffalo, 
 
 400,000 
 
 (( 
 
 Clinton County Bank, 
 
 200,000 
 
 u 
 
 COMMEECIAL BaNK OF OsWEGO, 
 
 250,000 
 
 (( 
 
 Kingston Bank, 
 
 200,000 
 
 a 
 
 Bank of Lyons, 
 
 200,000 
 
 i< 
 
 Oneida Bank, .... 
 
 400,000 
 
 ti 
 
 Bank of Owego, 
 
 200,000 
 
 a 
 
 Eoohestee City Bank, . 
 
 400,000 
 
 (( 
 
 Bank of the State of New Yoek, 
 
 2,000,000 
 
 (( 
 
 Tompkins County Bank, 
 
 250,000 
 
 (( 
 
 Wateevltet Bank, . 
 
 250,000 
 
 1837. 
 
 
 
 
 
 87 Banks. Aggregate Capital, $35,360,000 
 
 {Dv/rmg a period of 9 yea/rs^ 
 
APPENDIX 
 
 289 
 
 BANKING CORPORATIONS, 
 
 ORGANIZED UNDER THK 
 
 GENERAL BANK ACT OF 1838, 
 
 CITY AND STATE OF NEW TOEK. 
 
 Banking Coeporations, undee the Geneeal 
 
 Law, in tue City of New Yoek. 
 
 (August 2d, 1856.) 
 
 -Ambrican Exchange Bank, 
 
 Atlantic Bank, 
 
 Bank of America, 
 
 Bank or Commerce, 
 
 Bank of the Commonwealth, 
 
 Bank of New York, 
 
 Bank of North America, . 
 
 Bank of the Republic, . 
 
 Bowery Bank, . 
 
 Broadway Bank, . 
 
 Bull's Head Bank, 
 
 Butchers' and Drovers' Bank, 
 
 Chatham Bank, . 
 
 Chemical Bank, 
 
 Citizens' Bank, . 
 
 City Bank, 
 
 Continental Bank, . 
 
 Corn Exchange Bank, . 
 
 East River Ban^, 
 
 Fulton Bank, . 
 
 Grocers' Bank, . 
 
 Hanover Bank, 
 
 Irving Bane, 
 
 Island City Bank, . 
 
 Marine Bank, . 
 
 19 
 
 ! Capitai. 
 
 $3,000,000 
 
 400,000 
 
 2,000,000 
 
 5,000,000 
 
 750,000 
 
 2,000,000 
 
 1,000,000 
 
 1,500,000 
 
 356,650 
 
 600,000 
 
 173,300 
 
 600,000 
 
 450,000 
 
 300,000 
 
 400,000 
 
 1,000,000 
 
 1,500,000 
 
 914,000 
 
 413,050 
 
 600,000 
 
 300,000 
 
 1,000,000 
 
 300,000 
 
 299,200 
 
 600,000 
 
 Counteesiqn'b 
 Notes in 
 
 ClEOULATION, 
 
 Aug. 2d, 1856. 
 
 1316,001 
 94,554 
 
 2,165 
 
 , 82,161 
 
 138,506 
 
 87,794 
 
 105,268 
 
 163,696 
 
 209,808 
 
 95,799 
 
 54,926 
 
 97,605 
 
 273,300 
 
 144,091 
 
 74,033 
 
 94,405 
 
 92,654 
 
 137,395 
 
 83,744 
 
 110,717 
 
 105,944 
 
 79,496 
 
 94,074 
 
290 
 
 APPENDIX. 
 
 Banking Coepoeations, under the Geneeal 
 
 
 Counteesiqn'd 
 
 Law, in the City of New Toek. 
 
 Capital. 
 
 Notes in 
 
 (August 2d, 1855.) 
 
 
 ClKCULATION, 
 
 Aug. 2d, 1856. 
 
 Market Bank, . . - . 
 
 $650,000 
 
 $113,960 
 
 Mechanics' Bank, .... 
 
 2,000,000 
 
 411,103 
 
 Mechanics' Banking Association, . , 
 
 632,000 
 
 184,'763 
 
 Mercantile Bank, .... 
 
 1,000,000 
 
 84,290 
 
 Merchants' Exchange Bank, . 
 
 1,235,000 
 
 118,178 
 
 Metropolitan Bank, .... 
 
 2,000,000 
 
 101,377 
 
 Nassau Bank, .... 
 
 500,000 
 
 117,365 
 
 New York Exchange Bank, 
 
 130,000 
 
 114,896 
 
 North River Bank, 
 
 655,000 
 
 170,008 
 
 Ocean Bank, 
 
 1,000,000 
 
 107,104 
 
 Oriental Bank, .... 
 
 300,000 
 
 93,477 
 
 Pacific Bank, 
 
 422,700 
 
 110,923 
 
 Peoples' Bank, .... 
 
 412,500 
 
 119,481 
 
 Phenix Bank, 
 
 1,200,000 
 
 92,267 
 
 Saint Nicholas Bank, . 
 
 500,000 
 
 91,916 
 
 Shoe and Leather Bank, . 
 
 - 600,000 
 
 106,852 
 
 Tradesmbns' Bank, .... 
 
 600,000 
 
 241,365 
 
 Union Bank, 
 
 1,500,000 
 
 15,000 
 
 
 $40,693,400 
 
 $5,132,461 
 
 Banking Coepokations, under the General 
 
 Law, in the State of New York. 
 
 (August 2d, 1855.) 
 
 Ageicultural Bank, 
 Albany Exchange Bank 
 Auburn City Bank, 
 Ballston Spa Bank, . 
 Bank of Albany, . 
 Bank of Albion, 
 Bank of Attica, 
 Bank of Auburn, 
 Bank of Binghamton, 
 Bank of the Capitol, 
 Bank of Central New York, 
 Bank of Chemung, 
 Bank of Corning, . 
 
 Capital. 
 
 Counteesign'd 
 
 Notes in 
 Circulation, 
 Aug. 2d, 1855. 
 
 $125,000 
 311,100 
 200,000 
 125,000 
 360,000 
 100,000 
 160,000 
 200,000 
 200,000 
 350,000 
 110,200 
 100,000 
 104,500 
 
 $94,147 
 66,111 
 
 103,259 
 77,806 
 
 106,621 
 95,990 
 82,097 
 
 163,542 
 90,163 
 84,561 
 92,651 
 42.609 
 
APPENDIX 
 
 291 
 
 Bankinq Coepoeations, under the Geneeai 
 
 
 Counteesign'd 
 
 Law, in the State of New Yoke. 
 
 Capital. 
 
 Notes in 
 
 (August 2d, 1855.) 
 
 
 ClKOULATION, 
 
 Aug. 2d, 1856. 
 
 Bank op Coopbrstown, 
 
 $200,000 
 
 $144,862 
 
 Bank of Coxsackie, 
 
 120,000 
 
 84,266 
 
 Bank of Danbvillb, .... 
 
 150,250 
 
 76,559 
 
 Bank of Fayettbvillb, . 
 
 113,900 
 
 72,085 
 
 Bank of Fishktll, .... 
 
 150,000 
 
 83,524 
 
 Bank of Fort Edward, . 
 
 128,600 
 
 87,734 
 
 Bank of Genesbb, .... 
 
 100,000 
 
 38,474 
 
 Bank of Geneva, .... 
 
 205,000 
 
 133,275 
 
 Bank of Kinderhook, 
 
 200,000 
 
 70,286 
 
 Bank of Lowville, 
 
 50,000 
 
 99,901 
 
 Bank op Malone, .... 
 
 100,000 
 
 87,H18 
 
 Bank op Newark, .... 
 
 100,000 
 
 85,349 
 
 Bank of Nbwburgh, .... 
 
 300,000 
 
 85,203 
 
 Bank op Pawling, .... 
 
 176,000 
 
 104,796 
 
 Bank of Port Jervis, 
 
 120,000 
 
 97,597 
 
 Bank op Rhinebbck, 
 
 125,000 
 
 80,756 
 
 Bank of Eondout, .... 
 
 100,000 
 
 85,539 
 
 Bank of Salem, .... 
 
 110,000 
 
 9,2,301 
 
 Bank of Saratoga Springs, 
 
 100,000 
 
 80,068 
 
 Bank of Silver Creek, . 
 
 90,060 
 
 87,5-39 
 
 Bank op Sing Sing, .... 
 
 140,000 
 
 76,321 
 
 Bank op Syracuse, .... 
 
 200,000 
 
 110,415 
 
 Bank op Trot, 
 
 440,000 
 
 
 Bank op Ulster, .... 
 
 100,000 
 
 71,242 
 
 Bank of Utica, 
 
 600,000 
 
 68,956 
 
 Bank of Vernon, .... 
 
 100,000 
 
 58,224 
 
 Bank of Watertown, 
 
 47,779 
 
 35,335 
 
 Bank of Waterville, 
 
 120,000 
 
 114,289 
 
 Bank of West Troy, .... 
 
 250,000 
 
 67,968 
 
 Bank of Whitkstown, . 
 
 120,000 
 
 48,679 
 
 Bank of Yonkkrs, .... 
 
 150,000 
 
 58,029 
 
 Black Rivbr Bank, 
 
 150,000 
 
 118,470 
 
 Broome County Bank, 
 
 100,000 
 
 96,242 
 
 Buffalo City Bank, 
 
 204,800 
 
 100,029 
 
 Camden Bank, 
 
 120,000 
 
 18,898 
 
 Canal Bank of Lockport, 
 
 109,050 
 
 55,403 
 
 Catskill Bank, 
 
 110,007 
 
 8,059 
 
 Central Bank of Brooklyn, . 
 
 200,000 
 
 93,974 
 
 Central Bank op Cherry Valley, 
 
 200,000 
 
 17,120 
 
 Central Bank of Troy, . 
 
 300,000 
 
 95,931 
 
 Chester Bank, 
 
 100,400 
 
 71,524 
 
 Chittenango Bank, 
 
 110,000 
 
 80,826 
 
 Citizens' Bank, Fulton, 
 
 125,000 
 
 93,186 
 
292 
 
 APPENDIX. 
 
 Banking Corporations, under the General 
 
 Law, in the State of New Tore. 
 
 (August 2d, 1865.) 
 
 Capital. 
 
 Couhtehsign'd 
 Notes in' 
 
 CntOULATION, 
 
 Aug. 2d, 1855. 
 
 City Bank of Brooklyn, 
 City Bank of Oswkgo, 
 Commercial Bank of Albany, 
 Commercial Bank of Glen's Falls. 
 Commercial Bank of Rochester, 
 Commercial Bank of Troy, 
 Commercial Bank of Whitehall, 
 Grouse Bank, .... 
 Cuyler's Bank, 
 Delaware Bank, 
 Eagle Bank, .... 
 Elmira Bank, .... 
 Exchange Bank of Genesee, . 
 Exchange Bank at Lockport, . 
 Fallkill Bank, 
 
 Farmers' Bank of Amsterdam, . 
 Farmers' Bank of Hudson, 
 Farmers' Bank of Lansingburgh, 
 Farmers' Bank of Saratoga County, 
 Farmrrs' Bank, Teoy, 
 Farmers' and Citizens' Bank of Long 
 
 Island, .... 
 Farmers' and Drovers' Bank at Som- 
 
 ERS, ..... 
 
 Farmers' and Mechanics' Bank of 
 
 Genesee, .... 
 Farmers' and Mechanics' Bank of 
 , Rochester, .... 
 Fort Plain Bank, . 
 Fort Sianwix Bank, . 
 Frankfort Bank, . 
 Frontier Bank, .... 
 Fulton County Bank, 
 Genesee County Bank, 
 Genesee River Bank, 
 Genesee Valley Bank, 
 Glen's Falls Bank, 
 Goshen Bank, .... 
 Hamilton Bank, 
 HoLLisTisR Bank of Buffalo, 
 Huguenot Bank of New Paltz, 
 Hungerford's Bank, . 
 Ilion Bank, . . 
 
 1300,000 
 209,000 
 400,000 
 136,400 
 330,000 
 300,000 
 108,200 
 110,000 
 100,000 
 150,000 
 200,000 
 200,000 
 100,000 
 150,000 
 150,000 
 11'7,500 
 300,000 
 150,200 
 200,000 
 350,000 
 
 200,000 
 
 111,150 
 
 100,000 
 
 100,000 
 
 150,000 
 
 150,000 
 
 105,000 
 
 100,000 
 
 160,000 
 
 200,000 
 
 130,000 
 
 140,100 
 
 112,000 
 
 110,000 
 
 110,000 
 
 200,000 
 
 125,00 
 
 125,000 
 
 100,000 
 
 $83,225 
 97,015 
 
 182,803 
 97,958 
 
 261,206 
 
 150,217 
 72,796 
 68,781 
 
 101,661 
 90,530 
 
 145,686 
 
 115,990 
 66,273 
 95,805 
 74i049 
 93,089 
 
 134,621 
 82,813 
 
 106,899 
 51,500 
 
 82,716 
 
 46,503 
 
 76,490 
 
 100,500 
 
 84,227 
 
 149,205 
 
 89,264 
 
 83,756 
 
 90,533 
 
 106,667 
 
 102,738 
 
 109,086 
 
 119,041 
 
 50,121 
 
 106,538 
 
 98,862 
 
 85,056 
 
 86,386 
 
 100,069 
 
APPENDIX 
 
 293 
 
 ANKiNG Corporations, tinder the General 
 
 
 Countersign'd 
 
 Law, in the State of New York. 
 
 Capital. 
 
 Notes in 
 
 (August 2d, 1855.) 
 
 
 Circulation, 
 Aug. 2d, 185S. 
 
 TERNATIONAL BANK 
 
 1400,000 
 
 127,526 
 
 FFBRSON County Bank, 
 
 200,000 
 
 18,700 
 
 DSON Bank, 
 
 122,000 
 
 78,106 
 
 NG Island Bank, 
 
 400,000 
 
 202,725 
 
 THER Wright's Bank, 
 
 200,000 
 
 100,050 
 
 kNDFACTURKR's BaNK, TrOY, . 
 
 200,000 
 
 45,647 
 
 iRKET Bank of Troy, 
 
 293,350 
 
 96,818 
 
 i.RiNE Bank of Buffalo, 
 
 300,000 
 
 125,964 
 
 scHANios' Bank of Brooklyn, 
 
 200,000 
 
 121,731 
 
 schanics' Bank of Syracuse, 
 
 140,000 
 
 76,793 
 
 scHANics' Bank of Williamsburgh, 
 
 250,000 
 
 76,970 
 
 schanics' and Farmers' Bank of 
 
 
 
 Albany, 
 
 350,000 
 
 47,025 
 
 srchants' Bank of Albany, 
 
 250,000 
 
 101,616 
 
 SRCHANTs' Bank in Poughkeepsie, . 
 
 150,000 
 
 94,685 
 
 SRCHANTs' Bank in Syracuse, 
 
 160,000 
 
 106,796 
 
 IRCHANTS' AND FaRMERS' BaNK, ItHA- 
 
 
 
 CA, 
 
 70,000 
 
 64,331 
 
 erchants' and Mechanics' Bank, 
 
 
 
 Xroy 
 
 SCO nnn 
 
 
 iddletown Bank, .... 
 
 125,000 
 
 79,970 
 
 ohawk Bank op Schenectady, 
 
 125,(100 
 
 33,997 
 
 ohawk Valley Bank, 
 
 150,000 
 
 93,211 
 
 UTUAL Bank of Troy, . 
 
 199,000 
 
 72,938 
 
 EW York and Erie Bank, 
 
 200,000 
 
 84,291 
 
 Ew York State Bank, . 
 
 300,000 
 
 26,208 
 
 rAGARA River Bank, 
 
 104,000 
 
 99,419 
 
 liver Lee <fe Co.'s Bank, 
 
 170,000 
 
 84,002 
 
 SEIDA Central Bank, 
 
 146,800 
 
 111,205 
 
 seida County Bank, 
 
 126,000 
 
 55,697 
 
 jBiDA Valley Bank, 
 
 105,000 
 
 66,868 
 
 ^ONDAGA Bane, .... 
 
 115,000 
 
 88,061 
 
 iwegatchib Bank, .... 
 
 112,223 
 
 56,793 
 
 :sEGO County Bank, . 
 
 200,000 
 
 47,079 
 
 NE Plains Bank, .... 
 
 100,000 
 
 76,253 
 
 )WELL Bank, .... 
 
 176,000 
 
 201,424 
 
 iLASKi Bank, 
 
 100,000 
 
 97,169 
 
 iTNAM County Bank, . 
 
 104,430 
 
 35.922 
 
 jassaick Bank, .... 
 
 300,000 
 
 84,152 
 
 3NSSELAER CoUNTY BaNK, 
 
 200,000 
 
 82,487 
 
 )CHESTER Bank, .... 
 
 100,000 
 
 188,713 
 
 )ME Exchange Bank, . 
 
 100,000 
 
 70,020 
 
 LT Springs Bank, .... 
 
 200,000 
 
 92,251 
 
294 
 
 APPENDIX. 
 
 Banking Coepoeations, under the General 
 
 Law, in the State of New York. 
 
 (August 2i>, 18S5.) 
 
 Capital. 
 
 Countebsign'd 
 
 Notes ik 
 
 Circulation, 
 
 Aug. 2d, 1865. 
 
 Speaker Bank, .... 
 State Bank of Troy, .... 
 State of New York Bank, 
 Susquehanna Valley Bank, 
 Syracuse City Bank, 
 Union Bank of Albany, ; 
 Union Bank of Kinderhook, . 
 Union Bank of Eochester, 
 Union Bank of Sullivan County, . 
 Union Bank of Troy, 
 Union Bank op Watertown, . 
 Utica City Bank, .... 
 Washington Cqunty Bank, . 
 Watertown Bank and Loan Company, 
 West Winfield Bank, . 
 Weedsport Bank, .... 
 White's Bank of Buffalo, 
 
 WiLLIAMSBURGH CiTY BaNK, 
 
 $100,000 
 250,000 
 125,000 
 100,000 
 250,000 
 250,000 
 182,000 
 500,000 
 150,000 
 300,000 
 180,400 
 200,000 
 150,075 
 71,605 
 100,000 
 100,000 
 200,000 
 333,300 
 
 $80,064 
 
 110,184 
 
 93,296 
 
 43,545 
 
 104,159 
 
 93,007 
 
 85,891 
 
 255,066 
 
 94,474 
 
 83,807 
 
 94,540 
 
 92,781 
 
 64,822 
 
 56,921 
 
 97,722 
 
 91,091 
 
 109,180 
 
 114,159 
 
 * 
 
 126,644,379 
 
 $13,553,696 
 
 Aggregate of Capital invested in Banking Corporations, 
 oi'ganized under the Greneral Bank Act, in the City 
 of New York, and existing August 2d, 1855, . $40,693,400 
 
 Aggregate of Capital invested in Banking Corporations, 
 organized under the General Bank Act, in the State 
 
 • of New York, located out of the City of New York, 
 and existing August 2d, 1855, .... 26,644,379 
 
 196 Banks. Aggregate Capital $67,337,779 
 
 Aggregate of Countersigned Notes in circulation Au- 
 gust 2d, 1 855 : — 
 New York City Banks, ..... $5,132,461 
 New York Country Banks, 13,553,696 
 
 Countersigned Notes, . . . $18,686,157 
 
APPENDIX. 
 
 295 
 
 STATEMENT, 
 
 From the Annual Beport, Jcmucury, 1855, of the Stjpeein- 
 TENDENT of the Banhmg De;pwrtment, of the State of 
 New York — showing the capitals of the futy-foue then 
 emsting Special Chaetee Banks, — the locality of 
 eac\ — and the years when thei/r several ohaetees will 
 esopire. 
 
 NAME OF BANK. 
 
 LOOALIIT. 
 
 CAPITAL, 
 
 Albany, ...... 
 
 Brooklyn, 
 
 $500,000 
 
 600,000 
 
 Albany, 
 
 240,000 
 
 Norwich 
 
 120,000 
 
 Lansingburgli, 
 
 120,000 
 
 Goshen, 
 
 105,660 
 
 Albion 
 
 200,000 
 
 Owego, 
 
 200,000 
 
 Poughkeepsie,. 
 
 100,000 
 
 Kome, 
 
 100,000 
 
 Salina 
 
 150,000 
 
 New York, . . . 
 
 2,000,000 
 
 Whitehall, ... 
 
 100,000 
 
 Brooklyn, .... 
 
 150,000 
 
 Bingham ton,.. 
 
 100,000 
 
 Auburn, 
 
 250,000 
 
 Cherry Valley, 
 
 120,000 
 
 Jamestown,. . . 
 
 100,000 
 
 Elmira, 
 
 200,000 
 
 Keeseville, . . . 
 
 100,000 
 
 Poughkeepsie, 
 
 300,000 
 
 New York, . . . 
 
 200,000 
 
 Little Falls,... 
 
 200,000 
 
 Newburgh, . . . 
 
 200,000 
 
 Hudson 
 
 150,000 
 
 Kingston, 
 
 200,000 
 
 New York, . . . 
 
 600,000 
 
 Martinsburgh, . 
 
 100,000 
 
 Geneseo 
 
 100,000 
 
 CazenoTia, 
 
 100,000 
 
 New York, . . . 
 
 2,050,000 
 
 New York, . . . 
 
 1,440,000 
 
 New York, . . . 
 
 200,000 
 
 New York, . . . 
 
 1,490,000 
 
 WILL EXPIRE. 
 
 Albany City Bank, 
 
 Atlantic Bank 
 
 Bank of Albany, 
 
 Bank of Chenango, 
 
 Bank of Lansingburgh, 
 
 Bank of Orange County, 
 
 Bank of Orleans 
 
 Bank of Owego, , 
 
 Bank of Poughkeepsie, , 
 
 Bank of Rome, 
 
 Bank of Salina, 
 
 Bank of the State of New York, . . 
 
 Bank of Whitehall, 
 
 Brooklyn Bank 
 
 Broome County Bank, 
 
 Cayuga County Bank, 
 
 Central Bank, 
 
 Ohautanque County Bank , 
 
 Chemung Canal Bank, , 
 
 Essex County Bank, 
 
 Farmers' and Manufacturers' Bank 
 
 of Poughkeepsie, , 
 
 Greenwich Bank, 
 
 Herkimer County Bank, 
 
 Highland Bank, 
 
 Hudson River Bank, 
 
 Kingston Bank 
 
 Leather Manufacturer's Bank, . . 
 
 Lewis County Bank 
 
 Livingston County Bank, 
 
 Madison County Bank, , 
 
 Manhattan Company, , 
 
 Mechanics' Bank 
 
 Mechanics' and "Traders' Bank,, 
 Merchants' Bank 
 
 1864 
 1866 
 1865 
 1856 
 1855 
 1862 
 1864 
 1866 
 1858 
 1862 
 1862 
 1866 
 1859 
 1860 
 1856 
 1863 
 1865 
 1860 
 1863 
 1862 
 
 1864 
 1865 
 1863 
 1864 
 1855 
 1866 
 1862 
 1863 
 1855 
 1858 
 Charter 
 perpetual. 
 1865 
 1857 
 1857 
 
296 
 
 APPENDIX. 
 
 NAME OF BANS. 
 
 CHABTEB 
 WILL EXPIEE. 
 
 Montgomery County Bank, Johnstown, . . 
 
 National Bank New York, . . 
 
 New York Dry Dock Company, . . New York, . . 
 
 Ogdensburgh Bank Ogdeneburgh, 
 
 Oneida Bank, Utioa, 
 
 Ontario Bank,; Canandaigua, 
 
 Ontario Branoh Bank, Utica 
 
 Rochester City Bank, Rochester, , 
 
 Sackett's Harbor Bank, Buffalo, . . , 
 
 Saratoga County Bank, Waterford, 
 
 Schenectady Bank, Schenectady, 
 
 Seneca County Bank, Waterloo, . 
 
 Seventh Ward Bank, New York, 
 
 Steuben County Bank, Bath 
 
 Tanner's Bank Catskill, . . . 
 
 Tompkins County Bank, Ithaea 
 
 Tradesmens' Bank, New York, 
 
 Troy City Bank, Troy, 
 
 Ulster County Bank, Kingston, . . 
 
 "Westchester County Bank, Peekskill, . , 
 
 Yates County Bank Penn Yan, . 
 
 $100,000 
 750,000 
 200,000 
 
 100,000 
 400,000 
 200,000 
 300,000 
 400,000 
 200,000 
 100,000 
 160,000 
 200,000 
 600,000 
 150,000 
 100,000 
 260,000 
 400,000 
 300,000 
 100,000 
 200,000 
 100,000 
 
 1S51 
 1857 
 Charter 
 perpetual, 
 1859 
 1866 
 1856 
 1866 
 1866 
 1866 
 1857 
 1862 
 1863 
 1863 
 1862 
 1860 
 1866 
 1855 
 1863 
 1861 
 1863 
 1869 
 
 $18,041,060 
 
APPENDIX. 297 
 
 DiaEST 
 
 OP THE 
 
 LEADING DECISIONS OF THE COUKTS 
 
 OF THE 
 
 STATE OF NEW TOEK, 
 
 EELATING TO THE 
 
 GENERAL BANKING LAW OF 1838, 
 
 AND THE 
 
 POWMS OF BANKING CORPORATIONS OEGANIZED UNDER IT. 
 
 Thomas t. Dakin. 
 
 (22 Wendell, 9-112.) 
 
 In Octobee, 1839, the Supreme Court lield, in this case,' — Assooia- 
 that associations formed under the General Banking Law, thTgeneraf 
 are corporations, — and a majority of the court held that ti^QpZmiM^ 
 " Act to authorize the business of banking " is a valid and 
 constitutional law, on the assumption that it received the 
 assent of two-thirds of the members elected to each branch 
 of the Legislature, — and that it would be presumed to have 
 heen thus passed, until the fact was denied by plea; the 
 court refused to pass on this question on a demurrer to a 
 declaration by an association in a suit for the recovery of 
 a debt. (77)' 
 
 _ ('7'7) By the Constitution of the State of New Yort, of 1821, it -was or- 
 dained as follows : 
 
 Section IX. The assent of two- thirds of the members elected to each 
 branch of the legislature, shall be requisite to every bill appropriating the 
 I)ublic moneys or property for local or private purposes; or creating, con- 
 tinuing, altering, or renewing any body politic or corporate. 
 
 , The 2d section of the 12th Article of the Constitution of Michigan, de- 
 clares, that "the legislature shall pass no act of incorporation, unless with 
 the assent of at least two-thirds of each House." The legislature of that 
 Stat% by a majority vote, passed a General Banking Law, similar, in many 
 respects, to the New York General Bank Act. The Supreme Court of Mich- 
 
298 APPENDIX 
 
 IN THE COURT OP ERRORS. 
 
 "Waenee v. Beers, & Bolaitdek v. Stevens. 
 
 {23 Wendell, 103-19S).) 
 
 b^kiflaw' ^ Apeil, 1840, the Court foe the Coeeection of Ee- 
 WM oommu- RORS held, in these cases, — (1.) That the law entitled "An 
 tu>naUypaB8-^Q^ to authoHze the business of banking," passed April 
 18th, 1838, is valid and constitutionally passed, although it 
 may not have received the assent of two-thirds of the mem- 
 bers elected to each branch of the Legislature, and held, — 
 (2.) That the associations organized in conformity with the 
 ABsocia- provisions of the act entitled " An Act to Authorize the 
 tions are not busiucss of banking," are not bodies politic or corporate 
 wS''th'™ within the spirit and meaning of the Constitution, — and 
 Seantag*of ^^^^ Court reversed the judgments of the Supreme Court 
 the oonsti'"- in thcse cases ; the reasons of the Supreme Court for these 
 ■ judgments being the same as in Thom,as v. Dahin, ante. 
 
 Talmage v. Pell. 
 (9 Podge, Ch. B., 410.) 
 
 Asaocia- In Maech, 1840, the Chancellor held, that associations 
 
 ttTgOTerai Under the General Law of 1838, are in fact corporations, 
 ^"m-aums' ^"^^ ^^^* ^^^*® brought by them, in the name of their Presi- 
 dent, may be continued in the name of the Eeceiver, under 
 the special order of the Court. 
 
 igan declared bo mucli of that la-w as authorized the organization of bank- 
 ing associations or eorporationa under it, to he invalid. Green v. Groves 
 (1 Doug., 351). See also Nesmith v. Shelden (4 McLean, 375). 
 
 It has been held, that a body will he taken to be a corporation -when it 
 is constituted by an act of parliament in such a way, or for such purposes, 
 as show that the meaning of the legislature was, that the body should have 
 a perpetual duration, although no express words are used constituting it a 
 corporation. This is called a corporation by implication. Grant on Corpo- 
 rations, London ed., 1850, p. 8. Note (o), p. 8 ; Note (b), p. 6, and cases 
 there cited. * 
 
APPENDIX. 
 
 299 
 
 Pakmlt v. Tenth "Waed Bank. 
 
 (3 E&w. Oh. B., 395.) 
 
 In Mat, 1840, Vice Chancellor McOoun held, that an 
 association nnder the General Banking Law can only he 
 proceeded against and dissolved/or the causes assigned in 
 the ^Ith section of the General Bank Act of 1838. See 
 § 27 and Note 45,jfi. 104, ante. 
 
 Delaiteld v. Kinnet. 
 
 (24 Wendell, 345-350.) 
 
 In Octobee, 1840, the Supreme Court held in this case, ^how suits 
 on a demurrer to a declaration, that a suit against an asso- Sought, &o. 
 ciation, under the General Banking Law, may be brought 
 against it, either in the name of the association, or in that 
 name, with the addition of the name of the President 
 thereof, but that the contract must be stated as having been 
 made by or with the bank, using the name by which it ac- 
 quires rights of action or contracts liabilities, or the decla- 
 ration will be bad : And that it is not necessary to allege 
 in the declaration, that notes or bills issued, &c., were signed 
 by the President or Vice President and Cashier, but that 
 it is sufficient to allege in general terms that the association 
 made the contract. 
 
 Ely t. Speague. 
 
 (1 Clarke Ch. R., 351.) 
 
 In Octobee, 1840, Vice Chancellor Whittlesey held, that a share- 
 a person who becomes a subscriber to an associated bank, h^'brad'ml 
 under the General Law, and pays for his stock by a bond f^^ 
 and mortgage, stands in two capacities towards the bank: stands m two 
 one as debtor upon his bond and mortgage, and the other wOTdfthl*"' 
 as shareholder, by reason of his stock ; that a shareholder '>™^- 
 cannot refuse to pay his interest upon his bond and niort- 
 
300. 
 
 APPENDIX. 
 
 gage (given for stock) because the directors refuse to de- 
 clare a dividend of the interest and profits, neither will the 
 collection of such interest be restrained until the directors 
 make a dividend. 
 
 Saffoed v. "Wtokoff. 
 
 (1 Bill, 11-17.) 
 
 A«6ooia- In Januaet, 1841, the Supreme Court held in this case — 
 
 powto Is"-" that associations under the Oreneral SdnMng Law Lave no 
 wlp"Tr''ex- 3'iit^ority to make bills of exchange, or to issite any nego- 
 ceptMiMrfer- tiable paper, save under the sanction of the comptroller, 
 nsnednoiea. ^^^ j^^ jj^^ iorcQ. prescribed by statute ; that no action can 
 be maintained against the bank or others upon paper so 
 illegally issued, this appearing on its face ; that the inten- 
 tion of an act must be judged by its necessary consequen- 
 ces, and where these are directly pernicious, the intent to 
 work mischief becomes a conclusion of law. 
 
 The action in this case was a joint action against the 
 drawer and endorser of a bill of exchange for $3,000, dated 
 August 15th, 1839, payable to the order of Revhen^D. 
 Dodge, thirty days after date. See form of post-bill in this 
 case, p. 118, ante. The judgment of the Supreme Cpurtin 
 this case was reversed by the Coiwt of Errors (4 Hill, 442). 
 See Note 30,^. 85 ante: and Bank of OhiUcothe v. Bodge 
 (8 Barb. S. C. E., 233). (78) 
 
 CFS) Mr. Jdsxioe Cot^en, in January, 1841, in delivering the opinion of the 
 Supreme Court in the ease of Suffordy. Wyckoff (1 Hill, 11) said, — "that 
 the action of the banks," organized under the General Banting Law of this 
 State, " is very much limited by the statute, especially with regard to the 
 issuing of negotiable paper. One great object of the statute was, to guar- 
 anty the redemption Of all such paper, by the assignment of stocks or mort- 
 gages of real estate to the Comptroller, without whose consent it cannot issue; 
 and when issued with that consent, it must bear a certain form." « * » 
 * * " Once allow an issue of negotiable paper independently of the State 
 agents, and they will be no longer appealed to. Thus, a security, which it 
 is difficult to preserve, under the most careful supervision, would be entirely - 
 thrown away ; and the restraint upon excessive issues, so clearly intended by 
 the Legislature, would be removed." * * * " An adjudication that this 
 bill binds the bank, would be a direct pteoedent for its issue of bills paya- 
 ble to bearer. It could reach the same thing practically, by drawing bills 
 or notes payable-to its cashier or other instrument, to be endorsed by him 
 in blank; and then, even if a distinction could be raised between these, and 
 bills or notes payable to bearer, of what use all the precautions of the statute I 
 
APPENDIX. 301 
 
 Its funds, forms and penalties, would be subjects of derision, and the direct 
 consequence, a circulating medium of the very worst character— a jjosi-«o(e 
 system without the semblance of security." — (1 Hill, 11, 14, 15.) 
 
 Mr. Justice Co wen, in January, 1842, in Smith v. Strong (2 Hill, 241, 
 24S, 244), said — " I am of opinion, that negotiable paper, in whatever form, 
 issued by institutions under the General Banking Law, except under the 
 sanction of the Comptroller, is a fraud upon the statute by which they are 
 created, and upon the public for whose benefit they were restricted to cir- 
 culating paper secured by stocks and mortgages. This we held in Safford 
 V. Wyckof (1 Hill Rep., 11). It is now said we were mistaken in supposing 
 that the original statute meant to restrict the issue of any negotiable paper, 
 except ordinary bank bills or notes sent out to cii'culate as money. I then 
 thought this argument answered by the fact, that iills of exchange may be 
 used as a circulating medium ; and I insisted that the statute should not be 
 defrauded by a mere change in form of the paper issue." » * * * " jt 
 is true, that the drawer of the bill in question, does not, on it^ face, stand 
 primarily liable as the bank would do if it had made a note — and in this 
 respect, the bill is not the same as a bank bill issued by the drawer. Yet, 
 by issuing it without funds in the hands of the drawee, or by adding a waiver 
 of a demand and notice, the bill would have been, in effect, precisely the 
 same when endorsed in blank by the payee. The bank might so have shaped 
 the bill as to become the acceptor, and issued it in that form. Even with- 
 out any such device, bills of exchange, especially those payable at a future 
 day, answer the purpose of a circulating medium to a considerable extent; 
 while, with those devices (and they can always be superadded, and be made 
 matter of general notoriety) the bank may become, and be universally con- 
 sidered primarily liable as upon its legal paper." — 2 Hill, 243, 244. 
 
 In 1849, in Leavitt v. Palmer (3 Comstoek, 19, 33), Mr. Justice Bkonsom 
 said, — that " negotiable promissory notes and bills of exchange, payable at 
 a future day, when issued by a bank in good credit, may perform, to a great 
 extent, the office of a circulating medium. This has never been doubted by 
 those who have considered the subject. * * * * Indeed, the fact that 
 such paper may enter into the currency of the country, is matter of history. 
 Witness the post-notes of the late Bank of the United States, and the nego- 
 tiable notes and bills of some of our own banks, which followed, though on 
 a more humble scale, both the frauds and the bankruptcy of the national in- 
 stitution. The issuing of such paper belongs to mercantile and commercial 
 transactions, and not to the business of banking. Experience has shown that 
 the banks which engage in such enterprises, are rotten, and sooner or later 
 will end in defrauding the community." — 3 Comstoek, 33. 
 
 Amount of Bills of Exchange in Circulation in Great Britain. 
 
 Leone Levi, in his Manual of Mercantile Law, speaking of the immense im- 
 portance bills of exchange have acquired as a representative of money, says, 
 
 "An attempt has been made to ascertain the magnitude and fluctuations of 
 the amount of bills of exchange, inland and foreign, in circulation atone time 
 in Great Britain, during the period 1828-184'?, both inclusive; and it was, 
 shown that the total amount of bills, inland and foreign, amounted to an 
 average mm of £110,018,000. The enormous increase of, commerce since 
 then, must have proportionally increased the amount of bills in circulation, 
 and that they may be assumed to reach at present (1854), £160,000,000 
 sterling." — Levi on Mercantile Law, 232. 
 
 Raising Monet by Circulation, — ok Drawing and Ee-drawing. 
 
 Adam Smith, in his Wealth of Nations (Edinburgh cd., 1846, pp. 135, 
 136), published near the close of the eighteenth century, thus describes the 
 
303 APPENDIX. 
 
 mode of raising money by the circulation of fictitious bills of exchange, pay- 
 able on time; — "This expedient was no other than the 'well-bnowu shift of 
 drawing and re-drawing — the shift, to which unfortunate traders have some- 
 times recourse, when they are upon the brink of baDkruptoy." » * * » 
 » » » "The trader A, in Edinburgh, we shall suppose, draws a bill 
 upon B, in London, payable two months after date. In reality B, in 
 London, owet nothing to A, in Edinburgh; but he agrees to accept A's bill 
 upon condition, that before the term of payment, he (B) shall re-draw upon 
 A, in Edinburgh, for the same sum, together with the interest and a com- 
 mission, — another bill payable likewise two months after date. B, accord- 
 ingly, before the expiration of the first two months, re-draws this bill upon 
 A, in Edinburgh, who again, before the expiration of the second two months, 
 draws a second bill upon B, in London, payable likewise two months after 
 date ; and before the expiration of the third two months, B, in London, re- 
 draws upon A, in Edinburgh, another bill, payable also two, months after 
 date." 
 
 "This practice has sometimes gone on not only for several months, but 
 for several years together, the bill always returning upon A, in Edinburgh, 
 with the accumulated interest and commissions of all former bills. The in- 
 terest was five per cent, in the year, and the commission was never less than 
 one-half per cent, on each draft. This commission being repeated more 
 than six times in the year, whatever money A might raise by this expedient, 
 must necessarily have cost him something more than eight per cent, in the 
 year, and sometimes a great deal more, whenever either the price of the 
 commission happened to rise, or when he was obliged to pay compound in- 
 terest upon the interest and commission of former bills. This practice was 
 called raising money by Circulation." — Smith's Wealth 0/ N^ations, Edinburgh 
 ed., 1846, pp. 136, 136. 
 
 " When two people," says Adam Smith, " who are continually drawing 
 and re-drawing upon one another, discount their bills always with the same 
 banker, he must immediately discover what they are about, and see clearly 
 that they, are trading, not with any capital of their own, but with the capi- 
 tal which he advances to them. But this discovery is not altogether so easy 
 when they discount their bills sometimes with one banker, and sometimes 
 with another, and when the same two persons do not constantly draw and 
 re-draw upon one another, but occasionally run the round of a great circle 
 of projectors, who find it for their interest to assist one another in this 
 method of r'aising money, and to render it, upon that account, as difficult as 
 possible to distinguish between a real and a, fictitious bill of exchange — be- 
 tween a bill drawn by a real creditor upon a real debtor, and a bill for 
 which there was properly no real creditor but the bank which discounted 
 it, nor any real debtor but the projector who made use of the money. When 
 a banker bad even made this discovery, he might sometimes make it too 
 late, and might find he had already discounted the bills of those projectors 
 to so great an extent, that, by refusing to discou nt any more, he would neces- 
 sarily make them all bankrupts, and thns, by ruining them, might perhaps 
 ruin himself." — Adam Smith's Wealth of Nations, Mdin. ed., 1846,^. 13Y. 
 
 The method above described was by no means, says Aham Smith, " the 
 most common or the most expensive one in which those adventurera some- 
 times rained money by circulation. It frequently happened that A in Edin- 
 burgh would enable B in London to pay the first bill of exchange, by draw- 
 ing, a few days before it came due, a second bill at three months' date, upon 
 the same B in London. This bill, being payable to his own order, A sold 
 in Edinburgh at par; and with its contents purchased bills upon London 
 payable at sight to the order of B, to whom he sent them by the post. To- 
 wards the end of the late war, the exchange between Edinburgh and Lon- 
 don, was frequently three per cent, against Edinburgh ; and those bills at 
 sight must frequently cost A that premium; this transaction, therefore, 
 being repeated at least four times in- the year, and being loaded with a 
 
APPENDIX. 303 
 
 commission of at least one half per cent, upon each repetition, must at that 
 period cost A, at least 14 per cent, in the year." — Smith's Wealth of Na- 
 tions, JSdin. ed. 1846, _p. 186, Note 2. 
 
 ""We do not mean to' insinuate," says Mr. MoCclloch, "that there are no 
 Jietitious bills of exchange, or bills drawn on persons yrho are not really in- 
 debted to the drawer, in the market. In every commercial country, bills of 
 this description are always to be met with ; but they are only a device for 
 obtaining loans, and do not, and cannot, transfer real debts." • * * * 
 "The merchants who purchase, or the bankers who discount these bills, 
 really advance their value to the drawers, who, as long as they continue, by 
 means of this system of drawing and re-drawing, to provide funds for their 
 payment, command a borrowed capital equal to the amount oi fictitious 
 paper in circulation. It is clear, however, that the negotiation of such bills 
 has no effect in the way of transferring and settling the the real bona fide 
 debts reciprocally due between any two or more places. Mctitious bills 
 balance each other. Those drawn by London on Glasgow, are exactly equal 
 to those drawn by Glasgow on London, for the one set is drawn to pay the 
 other, — the second destroys the first, — and the result is nothing. The 
 method of raising money by the discount or sale of fictitious bUls, has been 
 severely censured by Dr. Smith, as entailing a ruinous expense oh those en- 
 gaged in it, and as being resorted to only by projectors or persons of sus- 
 picious credit" — McCullocKs Essay on Exchange. 
 
 History op a Scottish Bane — established in 1769 — Failed in 17T1. 
 
 This Bank had a paid-up capital of £128,000, or 80 per cent, of £160,000. 
 It was established, says Adam Smith, for the purpose of relieving the dis- 
 tresses of the country, under the firm of Douglass, Heron &, Co. Its coffers 
 were never well filled. A great part of the proprietors when they paid iu 
 theu- first installment, opened a cash account with the bank ; and the direc- 
 tors,, thinking themselves obliged to treat their own proprietors with the same 
 liberality with which they treated all other men, allowed many, of them to 
 borrow upon this cash account what they paid in upon all their subsequent 
 installments. Such payments, therefore, only put into one coffer what had 
 the moment before been taken out of another. "But," says Adam Smith, 
 " had the coffers of this bank been filled ever so well, its excessive circulation 
 must have emptied them faster than they could have been replenished by any 
 other expedient but the ruinous one of drawing upon London, and when 
 the bill became due, paying it, together with interest and commission, by 
 another draught upon the same place. Its coffers having been filled so 
 very ill, it is said to have been driven to this resource within a very few 
 months after it began to do business. The estates of the proprietors of this 
 bank were worth several millions, and by their subscription to the original 
 bond or contract of the bank, were really pledged for answering all its en- 
 gagements. By means of the great credit which so great a pledge neces- 
 sarily gave it, it was, notwithstanding its too liberal conduct, enabled to 
 carry on business for more than two years. When it was obliged to stop, 
 it had in the circulation about two hundred thousand pounds in bank notes. 
 In order to support the circulation of those notes, which were continually 
 returning upon it as fast as they were issued, it had been constantly in the 
 practice of drawing bills of exchange upon London, of which the number 
 and value were continually increasing, and, when it stopped, amounted to 
 upwards of six hundred thousand pounds. This bank, therefore, had, in 
 little more than the course of two years, advanced to different people up- 
 
304. APPENDIX. 
 
 Bank of "Watertown v. Assessoes, &c.j of "Wateetown. 
 
 (25 Wendell, 686, 687.) 
 
 Assootatipns In Jult, 1841, the Supreme C&ti/rt held, on a motion for 
 tYon^and"" ^ mandamus — that associations formed under the General 
 as such, are Banking Law, a/re GorporaMcms, and as such, are liable, 
 taxation, like Other moneyed institutions, to be taxed on all lands 
 and personal estate owned by them. See 1 B. S, 414, § 1, 
 p. 224, flOTte. (79) • ' 
 
 ■wards of eight hundred thousand pounds at five per cent. Upon the two 
 hundred thousand pounds which it circulated in bank notes, this five per 
 cent, might, perhaps, be considered as clear gain, without any other deduc- 
 tion besides the expense of management. But upon upwards of six hundred 
 thoiisand pounds, for which it was continually drawmg Ijills of exchange 
 upon London, it was paying, in the way of interest and commission, up- 
 wards of eight per cent., and was consequently losing more than three per 
 cent, upon more than three fourths of all its dealings, » * » 
 
 " At the first setting out of this bank, it was the opinion: of some people, 
 that how fast soever its coffers might te emptied, it might easily replenish 
 them hy raising money upon the securities of those to whom it had ad- 
 vanced its paper. Experiefnoe, I believe, soon convinced them that this 
 method of raising money was by much too slow to answer their purpose ; 
 and that ,coffers which originally were so ill filled, and which emptied 
 themselves so very fast, could be replenished by no other expedient but the 
 ruinous one of drawing hills upon London, and when they became due, 
 paying them by other draughts upon the same place with accumulated in- 
 terest and commission. But though "they had been able by this method to 
 'raise money as fast as they wanted it, yet instead, of making a profit tliey 
 must have suffered a loss by every such operation ; so that in the long run 
 they must have ruined themselves as a mercantile company, though, per- 
 haps, not so soon as by the more expensive praietice of drawing and re- 
 drawing., They could still have made nothing by the interest of the paper, 
 which, being over and above what the circulation of the country could ab- 
 sorb and employ, returned upon them, in order to be exchanged for gold 
 and silver, as fast as they issued it ; and for the payment of which they 
 were themselves continually obliged to borrow money. On the contrary, 
 the whole expense of this borrowing, of employing agents to look out for 
 people who had money to lend, of negotiatmg with those people, and of 
 drawing the proper bond or assignment, must have fallen upon them, and 
 have been so much clear loss upon the balance of their accounts. The pro- 
 ject of replenishing their coffers in this manner may be compared to that of 
 a man who had a water-pond, from which a stream was continually running 
 oiit, and into which no stream was continually running, but who proposed 
 to keep it always ejjually full by employing a number of people to go con- 
 tinually with buckets to a well at some miles' distance, in order to bring 
 water to replenish it." — Adam Smith's Wealth of Nations, Edin. ed. 1846, 
 pp. m,lS8, 139, and Notes. 
 
 Mb. Justice Bbonson's Definition op a Cokporation., 
 (79) " A corporation aggregate,. is a collection of individuals united in 
 one body, under such a grant of privileges as secures a succession of mem- 
 bers without, changing the identity of the body, and constitutes the 
 
APPENDIX. 306 
 
 The People t. Assessors of "Wateetown. 
 
 (1 mil, 616-623.) 
 
 This is the same case reported in 25 Wendell, 686. The 
 opinion of Nelson, C. J., is reported in 25 Wendell, 
 and of Branson, «/;, in 1 Hill. 
 
 members for tlie line being, one artificial person or legal being, capable 
 , of transacting some kind of business like a natural person. It does not 
 occur to my mind, that any thing else can be essential to the definition. 
 Such a union as I have mentioned, can only be effected under a grant of 
 privileges from the sovereign power of the State. A corporation is there- 
 fore said to be a legal being, or the mere creature of law. It is convenient, 
 though not absolutely necessary, that this artificial person, like a natural 
 one, should have a name by which it may be known and designated in the 
 transaction of business. And when the doctrine was, that a corporation 
 could only contract by its seal, a seal was said to be an indispensable 
 requisite. So, immortality was once thought to be an attribute of all cor- 
 porations; but that now means no more than a continued succession of 
 members for such period, whether long or short, as may be allotted to this 
 legal entity by its creator." — The People v. The Assessors of Watertown, 1 
 Hill, 616, 620. 
 
 Chief Justice Makshall's Defisition of a Coeporation. 
 
 " A corporation is an artificial being, invisible, intangible, and existing 
 only in contemplation of law. Being the mere creature of law, it possesses 
 only those properties which the charter of its creation confers upon it, 
 either expressly, or as incidental to its very existence. These are such as 
 are supposed best calculated to efl'eot the object for which it is created." — 
 Dartmouth College v. Woodward, i Wlieaton, iJ. 636. 
 
 Mb. Ktd's Definition of a Corporation. 
 
 " A corporation, or bo(3y politic or body incorporate, is a collection of 
 many individuals united in one body, under a special denomination, having 
 perpetual succession under an artificial form, and vested by the policy of 
 the law with a capacity of acting, in several respects, as an individual, par- 
 ticularly of taking and granting property, contracting obligations, and of 
 suing and being sued; of enjoying privileges and immunities in common, 
 and of exercising a variety of political rights, more or less extensive, ac- 
 cording to the design of its institution, or the powers conferred upon it 
 either at the time of its creation or at any subsequent period of its exist- 
 ence." — Kyd on Corp. Intro. 13. 
 
 Mr. Jambs Grant's Definition of a Corporation. 
 
 " The ideal being, called a corporation, we may thus define to be a con- 
 tinuous identity, endowed at its creation with capacity for endless dura- 
 tion, residing in the grantees of it and their successors ; its acts being deter- 
 mined by the will of a majority of the existing body of its grantees or their 
 
 20 
 
306 APPENDIX. 
 
 Hunt v. Van Alstyne. 
 
 (25 Wendell, 605-614.) 
 
 In October, 1841, the Swpreme Gowrt held, on demurrer 
 to pleas, in an action on a bill of exchange, in the name of 
 an mdwidual describing himself as the Piresideni of a 
 banking association, that a plea in iar of the action — that 
 the General Banking Law (under which the association was 
 formed) was not passed by a vote of two-thirds, &c. — is not 
 good, where the plaintiif fails to allege titl Ao the bill, and 
 the declaration, besides the count on the bill, contains the 
 common counts. 
 
 Bank of Okleans v. Meeeill. 
 
 (2 Hill, 295.) 
 
 Postcer- In Jan0aey, 1842, the Supreme Court Jield that a cer- 
 dopMituie- tificate of deposit issued by a general law bank, payable 
 »*'■ to the order of a particular person, 6 months after date. 
 
 Buooessors at any given time, acting mthin the limits imposed by tlie con- 
 stitution of their body politic, such will being signified to strangers by 
 uniting under the common seal ; having a name, and under such name a 
 capacity for taking, holding, and enjoying all kinds of property, a qualified 
 right of disposing of its possessions, and also a capacity for taking, hold- 
 ing and enjoying, but inalienably, liberties, franchises, exemptions, and 
 privileges ; together with the right or obligation of suing and being sued 
 only under such name. This is the definition of the ideal creation, — the 
 ens rationis called a corporation; and it will be found to measure and de- 
 scribe accurately the attributes of a corporation proper ; that is to say, a 
 corporation created merely as a corporation, without any restrictive or 
 limiting clauses in the instrument of creation. It is not by any means 
 true, however, that all existing corporations come up fully to the whole 
 extent of the above definition, because corporations are held to be in 
 this country, the creatures of the crown or of Parliament, and conse- 
 quently there is scarcely any limit to the variety of forms in which they 
 may be produced. But continuous identity, a name and a common seal, 
 seem indispensable requisites to the creation of a corporation proper." — 
 Grant on Corporations, London ed. 1850, pp. 4, 5. 
 
 Distinction between Cobpobations & Partnerships. 
 
 "It has been said, that the great distinction between the common joint 
 stock companies or partnerships, and corporations, is, that in the first, the 
 lam looks to the individuals of whom the partnership is composed, and 
 knows the partnership no otherwise than as being such a number of individ- 
 uals; while in the second, it sees only the creature of the charter, the body 
 corporate, and knows not the individuals." — Wordtworth't Law of Joint 
 Stock Companies, p. 4. 
 
APPENDIX. 307 
 
 ■with interest, is, in' effect, a promissory note — and cannot 
 be sanctioned as the basis of a recovery, ■without disregard- 
 ing the provisions of the statute against the issue of a spuri- 
 ous and illegal currency ; and that this case is -within the 
 principle of Safford v. Wyckoff, <& Smith ds Warner v. 
 Strong. (80). See Zeavitt v. Palmer (3 Comst., 19). 
 
 (80) In the case of the Southern Loan Company v. Morris (2 Barr'a Penn. 
 R. 176), the Supreme Court of PennsylTania held, that an indorser is not 
 liable on a, promissory note of a corporation which it could not lawfully 
 issue,— even though the instrument purpo'i-ted to be a certificate of deposit 
 ■which it -was lawful for such corporation to issue ; for the reason that prop- 
 erties of promissory notes which are forbidden, cannot be given to lawful 
 instruments. The certificate of deposit, held illegal in this case, -was in the 
 form following : 
 
 " The Philadelphia Loan Company promises to pay to S. Morris, or order, 
 $1000, three months after date, being a deposit made by him with the Company, 
 bearing interest at the rate of — per cent, per arinum, payable at the office of 
 the Company." 
 
 " GEO. S. SCHOTE, Pkesident. 
 "T. MOORE, Cashiee." 
 
 {Indorsed by defendant.) 
 
 The 16th section of the charter of this company expressly authorized 
 "a certificate of deposit to be given to the depositor, stating the rate of in- 
 terest, and the period for which such a deposit is made ;" but this company 
 was prohibited from issuing notes or bills of credit, or promissory notes in 
 the nature of bank notes, or exercising any banking privileges. " But vain 
 are legislative enactments," says Seegeant, J., " if disregarded by those in- 
 trusted to execute them. These plain directions have been unceremoniously 
 set aside, by the issue of instrumfints,"which, in their ostensible character 
 and effect, are as plain promissory notes as it is possible to make them : be- 
 ing promises, in consideration of money received, for the payment of money, 
 payable to order at a certain time, and then negotiated and put in circula- 
 tion." » * * "And even if they were legitimate Certificates of Deposit, 
 such as the Company are authorized to issue, they would not be negotiable 
 ■ instruments, so as to make the indorsee liable on his indorsement." (2 £arr 
 JJ., 175-177.) 
 
 In the case of Miller v. Austin (13 Howard, 218), the Supreme Court of 
 the United States held a certificate of deposit, in the form following, to be a 
 negotiable instrument or promissory note: 
 
 " MissiPsippi Union Bank. 
 "Jackson, Miss., Feb. 8, 1840. 
 "Ifo. 959. 
 
 " / hereby certify that Hugh Short has deposited in this bank, payable 
 12 months from 1st May, 1839, with 5 per cent, interest till due, fifteen hun- 
 dred dollars, for the use of Henry Miller, and payable only to his order, upon 
 the return of this certificate. 
 
 " Wm. p. Geatson, Cashiee." 
 Endorsed "Henry Miller." 
 
 "Austen. Wilmerding, tb Co.'' 
 See the Form of the Certificate of Deposit passed upon by the Supreme 
 Court of Errors of the State of Connecticut in the case of Kilgore v. Buck- 
 ley {li Conn. R., 363). Also i/borc v. Oano (12 Ohio, 300). Zeavitt v. 
 Palmer (3 Comstook, 19, 35). In the matter of the Oho Life Insurance and 
 Trust Company (9 Ohio, 291) : Lawler v. Walker (18 Ohio,' 151); also Note 
 51, pp. 114-122 ante: also MotelS, p.SOO ante. 
 
308 APPENDIX 
 
 Smith & Waenee v. Steong. 
 
 (2 mil, 241-247.) 
 
 Aesocia- In Januaet, 1842, the Sv/preme Gourt held, that associa- 
 powto te"° tions under the general banking law,' have no power to 
 ^™"^^j issue negotiable paper of any kind, save under the sanction 
 counter-Bign- of the Comptroller ; and that bills of exchange, payable at 
 oompkouer. a future day, answer the purpose of a circulating medium, 
 and so are within the restrictions of the genersd banking 
 law against the issuing of unauthorized paper — and that an 
 indorsee of such a bill, drawn by such an association, is 
 chargeable with notice of its illegality, and cannot, there- 
 fore, recover against the indorser. The case of Safford v. 
 Wychoff (1 Hill, 11), commented on and explained. 
 
 This was an action of assumpsit against the indorser of 
 a bill of exchange for $1000, payable four months after 
 date. The objection was taken at the trial, that it was 
 issued contrary to the 4th section of the Act of May 14th, 
 1840. See § 4. Act of May 14<A, 1840, p. 114 ante : and 
 form of hill in this case, p. 119 ante; also, Note 78,^. 
 300 ante. (81) 
 
 WiLLOIJGHBT 1). CoMSTOCK. 
 
 (3 mil, 389.) 
 
 AsMoift- In July, 1842, the Su^preme Court held, that assOcia- 
 
 "MaUMs!'""tio'^3^'i<ier the General "Bank Act of 1838, are corpora- 
 
 (81) The distinction between bills of exchange drawn or issued by hankers, 
 and mercantile bills of exchange, is thus stated by William John Lawson, 
 iahii History of BanKng : — 
 
 " There is also a difference between banker's bills of exchange and mer- 
 cantile bills of exchange, inasmuch as the /orm# are, essentially in their 
 nature, the same as bank notes payable on demand ; but they are less secure 
 than notes payable on demand, because the banker may fail before the hill 
 becomes due. The issue by a banker of his bill, is not a proof of any trans- 
 action in trade ; it is a mere exchange of credits. The banker creates, and 
 puts out, a piece of paper that will circidale, against one or many that will 
 not circulate. The banker's bill of exchange will circulate because the con- 
 fidence in his ability to pay the bill at maturity, is undoubted ; the differ- 
 ence, therefore, between the bill of exchange which the banker creates 
 entirely upon himself, and those other bills of exchange which are created 
 by the customers of the banks, is, that the latter are the real types of the 
 quantity of business done upon credit, whilst the credit which circulates is the 
 quantity which the banker chooses to send out of either sort." — Lawsoria 
 Hist, of Banking, London ed., 1850, p. 44. 
 
APPENDIX. 309 
 
 tions, and hence in an action against such an institution, it 
 is no ground of defence that tne defendant is a member 
 thereof. 
 
 The People v. Stjpeevisoes of Niagaka. 
 (4 Mill, 20-26.) 
 
 In Decembee, 1842, the Supreme Cov/rt held, that as- Assoeia- 
 sociations formed under the General Banking Law, are por°ati?r8,"™d 
 Corporations, and like other moneyed or stock corporations J^^jf^,^^ *" 
 are liable to taxation on their capital. See 1 R. S. 414, § 1, 
 p. 224: ante : this case affirmed hy the Cov/rt of Errors. 
 
 IN THE COURT OF ERRORS. 
 
 Saefoed v. "Wyokoff. 
 (4 Bill, 442-446.) 
 
 In December, 1842, the Coitet for the Ooeeeotioh- of 
 Eeeoes reversed the decision of the Swpreme Court in this 
 case. The head-note of the reporter is as follows : 
 
 ■ " A negotiable draft or bill of exchange in the ordinary- 
 form, though issued by an association organized under the 
 general banking law, without the sanction of the comp- 
 troller, will bind the association as in favor of a ionafide 
 indorsee; and this notwithstanding it be signed by the 
 Cashier only." 
 
 " Otherwise, however, as between the association and 
 one not occupying the position of a ionafide holder, if it 
 appear that the draft or bill was issued hy way of loan, — 
 or for thepwfose of heing ^t in circulation as money. 
 SemhleP 
 
 " How far these associations may, as incidental to the 
 general powers expressly conferred on them by statute, 
 issue negotiable paper, without the sanction of the comp- 
 troller — e. g., for the payment of their debts, the transfer 
 of their funds, &c. — discussed and considered." 
 
 " Where there is enough on the face of a negotiable note 
 or bill of exchange to create a suspicion that it was issued 
 
310 APPENDIX. 
 
 contrary to law, and to put the party wlio takes it upon 
 inquiry, he is not entitled to be considered a hona fide 
 holder. SemMe." 
 
 " A negotiable note or bill of exchange, though given 
 by a corporation having only an incidental right of issuing 
 such paper in certain special cases, must be presumed to 
 have been legally issued until the contrary appear- Sem- 
 Me." (82) 
 
 Valk v. Ceandall. 
 (1 Sand. Gh. E., 179.) 
 
 Astomoac In Ootobee, 1843, Assistant Yice- Chancellor Sandford 
 "' "orat^M ^'^^^ — *^^* associations under the General Bank Act are 
 corp on . gQjjgjjgjj ^Q ^]jg provisions of that act, and cannot be legally 
 organized until its substantial enactments, relating to the 
 mode and manner of organization, are substantially com- 
 plied with. 
 
 (82) It is difficult to say, what was really decided by the Court of Mr- 
 rors in this case, except, that it was held that a bill of exchange, although 
 signed by the Cashier only (see § 21, p. 98, ante), might support a recov- 
 ery, against a banking corporation, by a bona fide holder, in the absence of 
 all proof that the bill was not drawn to transfer funds in the legiiimate 
 business of banking ; — but whether on the ground assumed by Senators 
 Bochee & Sopkins, that the banking corporation could not set up its own 
 illegal act ; or on the ground that the drawing of a bill may be included in 
 the power to huy and sell bills (See § 18, p. 94, ante), also stated by Hop- 
 Tcins, Senator ; or on the ground stated by the Chancellor, that these corpor- 
 ations might give negotiable drafts "in payment of the rent of their bank- 
 ing houses, the salaries of their cashiers and clerks, and for many other 
 purposes connected with the legitimate business of banking " — [and the 
 Chancellor adds, " for any thing that appears to the contrary, the draft set 
 out in this record, was given in payment of such a debt, though, out of the 
 case, it may perhaps be shown that it was made to be putjn circulation as 
 money" (4 Hill, 446)]; or on what other ground, the decision was made, — 
 query. The Chancillor and Senator Paige delivered written opinions for 
 affirmance, and Senators Hopkins and Bockee for reversal. The judgment of 
 the Supreme Coui-t was reversed by a vote of 13 to 9. 
 
 It should be stated, that neither the general prohibition in 1 R. S. 600, § 3 
 {p. 25 ante), nor the express prohibition in § 85 (p. 38 ante), were referred 
 to in this case, either in the Supreme Court, or in the Court of Errors. The 
 question as to the application, to these banking corporations, of the general 
 statutes of this State, relating to moneyed corporations, was not raised in this 
 case : that question has since been finally adjudged by the Court of Appeals 
 in Oillet r. Moody (3 Comst., 4'79),' and m Talmage v. Pdl (3 Selden, 328). 
 See also Gillet v. Phillips, decided by the Court of Appeals in October, 
 1855. See form of bill in this case, p. 118 ante: also Note '78, p. 800, ante. 
 Also, Note %\,p. 308 ante. See James v. Patten (2 Selden, 9). 
 
APPENDIX. 311 
 
 Leavitt v. Tylee. 
 
 (1 Sand. Oh. B., 207-210.) 
 
 In Novembee, l^siZ^ Assistant Vice- Chancellor Sand- ie. 8.,69i, 
 ford held — that an assignment made by an insolvent bank- fVs'ante!'''' 
 ing association under the general law, was invalid in law 
 by the Sth & 9th sections qflH. S., 591. 
 
 In the. Matter op the Bank of Dansville. 
 
 (6 mil, 3T0-372.) 
 
 In Maeoh, 1844, the Supreme Court /ie^c^that that ^ As to^mm- 
 Court had no authority to set aside an election of directors of snpremo 
 by an association under the general banking law. — But^^^ 
 see Gilletv. Moody, in the Court of A^jpeals (3 Comst. 479), 
 and note 40 engage 98 ante ; also, Talmage v. Pell (3 Sel- 
 den, 328). 
 
 BoiSGEEAED V. N. Y. BANKING CoMPANY, 
 
 (2 Sam,d. Ch. B., 23-28.) 
 
 In August, ISii, Assistant Vice-Chancellor Sandford Eev.stat 
 held — that banking associations under the general law of ^■*"™'*' 
 1838, are within the provisions of the Bevised Statutes 
 relative to proceedings against corporations in equity. 
 
 IN THE COURT OF ERRORS. 
 
 SUPEEVISOES OP NlAGAEA V. ThE PeOPLE. 
 
 (7 Hill, 604-5 18-.) 
 
 In December, 1844, the Couet foe the Coeeeotion op Aesocia- 
 Eeeoes AeZ<^ — 'that associations formed under the general """>«"««>'- 
 banking law, are corporations within the meaning of 1 B. =880"^^'^ 
 8., 414, § 1, and liable to taxation on their capitals. See uo^&o*"''*" 
 1 B. S, 414, § 1, p. 224 ante. 
 
312 APPENDIX. 
 
 De Bow v. The People. 
 
 (1 Denio, 9-19.) 
 
 tiotfSre'' r ""^ Mat, 1845, the Swpreme Court held — ^that associa- 
 poratio'ns"'' tions undcx' the General Bank Act were corporations, upon 
 !Sl)ra°idng'''the supposition that the act was constitutionally passed : 
 lawToid. ijyt ^2A the act, not having received the assent of two- 
 thirds of either branch of the legislature, is, so far as it 
 professes to authorize the formation of associations to carry 
 on the business of banking, utterly void : and that the bank- 
 Thueme i^g Companies which have been organized under it, have 
 overruled, qq legal existence. Bui see Q-ifford v. Livvngston, in ths 
 Court of Errors (2 Denio, 380). 
 
 GiLLET v. Campbell. 
 
 (1 Denio, 520-523.) 
 
 iE,s.,59i, In October, 1845, the Supreme Court held — that an 
 ,^^°^S^^ assignment made by a bank under the general law, of a 
 •• security of the value of over $1,000 is not within 1 JR. S., 
 591, § 8, forbidding such assignment by a moneyed corpora- 
 tion. — But see Gulet y. Moody in the Court of Appeals 
 (3 Comst., 479,) and Gillet v. Phillips, decided oy the 
 Court of Appeals in October, 1855. 
 
 S a Bee S 8 
 andni ' ' 
 Icmlt. 
 
 IN THE COURT OF ERRORS. 
 
 GiFFORD V. Livingston. 
 (2 Denio, 380-402.) 
 
 The gene- In DeOEMBEE, 1845, the GoUET EOE THE CoEEECTlOlir OF 
 
 ™1''™S Errors AeZi^— that the act entitled " An Act to authorize 
 »<!*• the business of banking," passed April 18, 1838, was con- 
 
 stitutionally passed, although it did not receive the assent 
 
APPENDIX. 313 
 
 of two-thirds of the members elected to each branch of the 
 legislature, and is a valid act. By this judgment, the case 
 of De Bow V. The People (1 Denio, 9) was overruled. See 
 Pdkner v. Za/wrence (1 Selden, 381).) 
 
 Leavitt v. Geiffin. 
 
 (3 Scmd. Ch. B. 170, Wote A.) 
 
 In March, 1846, Assistant Vice- Chancellor Scmdford ie. B.591, 
 held — that a transfer of corporate effects, made by an in- |\„™f *'^^ 
 solvent banking association, for the benefit of James Hol- 
 ford, of London, and the Eeal Estate Bank of Arkansas, 
 was invalid in law iy 1 B. 8., 591, § 8 & § 9. 
 
 Sagoey v. Dubois. 
 
 (3 Sand. Ch. B., 466.) 
 
 In Maech, 1346, Assistant Vice- Chancellor Sandford Assoda- 
 held — ^that associations under the General Bank Act, are "™„?5° ""' 
 
 ■ 1 1 1*11 1 •• /»i purauouo. 
 
 corporations, and as such, are liable to the provisions of law 
 in respect of moneyed corporations, except where such pro- 
 visions are inconsistent with the special legislation relative 
 to these associations. See Talmage v. PeU (3 Selden, 328) 
 and Oillet v. Moody (3 Gomst., 479). 
 
 Swift v. Beees. 
 
 (3 Denio, 70-71.) 
 
 In Mat, 1846, the Supreme Court held — that the pro- ^^j,^^ 
 hibition in the fourth section of the act of May 14th, 1840iiponthe 
 {Lams 1840, 306, § 4) applies to and renders illegal alirp^;^^"' 
 promissory notes made by a banking association, unless 
 made payable on demand and without interest, though not 
 intended to circulate as money ; and that a guaranty of 
 such a note partakes of the character of the principal con- 
 tract, — being intended to reinforce and secure it, — and is 
 equally illegal. See Leavitt v. Palmer, in the Court of 
 Appeals (3 Oomst., 19): McGregor v. The Dover and Deal 
 Bailway Company {7 ^a.i[wa.y Cases, 226) : Boot v. Godard 
 (3 McLean, 102),: Hayden v. Davis {Z McLean, 276) : Boot 
 V. Wallace (4 McLean, 8.) See form of note and guaranty 
 in this case, p. 119 ante. 
 
314 APPENDIX. 
 
 Blunt v. Hanna, & Bluht v. Maetik. 
 
 {Not reported.) 
 
 Kev.stat. In THE TBAE 1846, Assistomt Vice-Chwncellor Scmd- 
 ■Tante. '^' ford held, that assignments of mortgages by a banking 
 association, under the general banking law, were not valid 
 in law, because not authorized by a previous resolution of 
 the Board of DvreotOTS ; that such previous resolution 
 was, by statute (1 E. S., 591, § 8), as necessary a part of 
 the authority of such banking association to execute the 
 transfers, as was the general bank act itself, which brought 
 the association into existence. See Gillet y. Moody {^ 
 Comst., 479) ; Hoyt t. Thompson (1 Selden, 320), and Tal- 
 mage v. Pell (3 Selden, 328) ; Johnson Y.^ush (3 Barb. 
 Ch. E., 179) ; Bosanquet Pub. Officer v. 8h.ortridge (4 W. 
 H. & G-i 699). See opinion of Assistant Yioe- Chancellor 
 Sandford, in the above cases, in Note 4, J>. 7 ante / also, 
 opinion of Oao'dimsr, 0. J.,m Gillet v. PhilUps, decided 
 by the Court of Appeals in October, 1855. 
 
 Leavitt v. Yates. 
 
 (4 i:dw. Ch. P., 134-209.) 
 
 800 post- In Septembee, 1846, this case was heard and determ- 
 
 cMed'bytheiiisd upon pleadings and ^voois, hjVice-Chancellor Mc- 
 
 Tates trust Coun. A banking association issued in December, 1840, 
 
 MBignmen g^^ promissory notes, all of the same date, payable 
 
 thirteen months after date (with interest) to the order of a 
 
 clerk in the employ of the association, and at the same 
 
 time, executed a trust deed conveying to trustees corporate 
 
 effects to secure the payment of said notes, said deed and 
 
 notes bearing the same date. The ViceChancdlqr held, 
 
 that the 800 notes were within the prohibitions of the 
 
 Eestrata- Pestrcdning Act, as well as of the Act of May 14th, 1840, 
 
 ins Act of aii(j -^ere illegal and void ; and also that they were void, 
 
 of May 14th bccause uot countcrsigned by the Comptroller or secured 
 
 ■'^*''' as required by the general banking law ; and that the notes 
 
 being illegal and void, the trust deed made to secure them 
 
 was also void. This case is generally known as the " Yates 
 
 Trust Case." No appeal was ever prosecuted from the 
 
 decree made by the Vice- Chancellor. See form of notes 
 
 in this case, p. 119 ante. 
 
APPENDIX. 315 
 
 Ttlee v. Yates. 
 
 (3 Barb. 8. O. JS., 222-229.) 
 
 In June, 184:8, the Supreme Court {ShanMcmd, Gray, rates 
 cfe Sill, Justices) held, that post-notes issued by a bank- ^b\°°„'f> 
 ing association, dated December 15th, 1840, were abso- time, Toid. 
 lutely void, and that an assignment of securities by means 
 of a trust deed, as collateral for the payment of such post- 
 notes, is also void. See Leavitt v. Palmer, decided in 
 1849, by the Court of Appeals (3 Comst., 19). 
 
 Leavitt v. Blatchfokd. 
 
 (5 Ba/rb. 8. C. B., 9-37.) 
 
 In ISTovEMBEE, 1848, the Supreme Cov/rt {Hwrlhut, Mo- Post-notes 
 Coun, & Edwards, Justices), held, that banking associa- g»T*i«^^i^_ 
 tions under the General Bank Act of 1 838, are corporations, renoy : se- 
 and that all general laws relating to moneyed corporations S^JdEn- 
 applied to such associations — accordingly, that the V^'o-'^^^^-J^^ 
 visions of the Eevised Statutes, 1 E.S., 588, to prevent the aAu.' 
 insolvency, &c., of moneyed corporations, are applicable to 
 such associations ; that under the provisions of the act of 
 May 14th, 1840, promissory notes given by a banking 
 association, payable after date, are illegal and void, even 
 though they were not intended to circulate, and were in- 
 capable of circulating, as money ; and although such notes 
 were payable in London, in sterling money : but that 
 though such notes were void, the original indebtedness for 
 which they were given, remained, and that a deed assign- 
 ing property in trust as collateral security for the pay- 
 ment of such indebtedness, was valid. The deed in this 
 case recited such original indebtedness. But the judg- 
 ment of the Supreme Court, in this case, so far as it upheld 
 the trust deed as a valid security for the illegal notes, was 
 reversed by the Court of Appeals, in Leavitt v. Palmer (3 
 Comstock, 19). This is generally styled the '■'• Blatchford 
 & Murray Trust Case." See form of notes, p. 120 ante. 
 
 Gillet v. Moodt. 
 
 (5 Bark, 8. C. B., 185-190.) 
 
 In Januaet, 1849, the Supreme Court {Paige, TP?^ Associa- 
 lard, (& Hand, Justices) held, that banks formed under though cor 
 
316 APPENDIX. 
 
 pojaHons,arethe general banking law are corporations constitntionally 
 
 the^rovi-" formed — but that they are not within the provisions of the 
 
 ^S^*" Revised Statutes (1 R. 8., 591, § 8, § 9, seepp, 1, 8 anie), 
 
 statutes. « to prevent the insolvency of moneyed corporations, and to 
 
 secure the rights of their creditors and stockholders." But 
 
 see this case reversed in the Coiort of Appeals (3 Comst. 
 
 479.) 
 
 Palmer v. Yates. 
 
 (3 Sand. Sup. E., 137-161.) 
 
 Aresoiu- In Septembee, 1849, the Superior Court of the City of 
 
 JumotT' ^ew York {Duer, Mason, <& Campbell, Justices) held, in 
 
 fhorizinTa tliis.case, that a resolution of a Committee of the Board of 
 
 transfer of Directors of a banking corporation, authorizing the trails- 
 corporate ef-/. /. , ™, ■'■t '. T ^^ 
 
 feots exceed- ler 01 Corporate enects exceedmg m value $1,000, is a 
 $1000,1111?- suflacient compliance with the statute (1 E. S., 591, § 8), 
 piianc6''wTth '^W^ *^® maxim ratihaiitio priori mandato cequiparatwr • 
 lis. ;S 591, sand that when a prior authority is rendered necessary, by 
 each "a 'trans? a statutory provisiou, the want of such an authority may 
 tboSzedby°a ^^ S"Pplied, and the act impeached be rendered valid by 
 folSn o?" P''°°^ °^ i''^ adoption by the party by whom it might have 
 the ^oor-d o/been authorized; although a resolution of a Board of 
 "^bs^uent Directors, ratifying an assignment made by a president of 
 pHes'the^"'*' ^ banking corporation, without authority, may have no 
 want of prior retroactive force; yet, the assignment is valid from the 
 "EaiTa'cation time that the sanction of the Board has thus been given to 
 atti°e"fJtce?' ^t J '"^^ ^^^0, that evcry person who, for a valuable con- 
 suoha sideration, acquires an interest, legal or equitable, by an 
 
 transfer valid . ', „ ^ , ' '^, . . ,^ , i ■' n 
 
 only from assignment trom a moneyed corporation, is to be deemed a 
 
 time of ^^^<'- ^j^cJiaser within the meaning of the exception contained in 
 1 E. S., 591, § 8 ; wnd also, that within this definition, 
 every assignee of a bond and mortgage, whether the trans- 
 fer is to him directly or to trustees for his benefit and se- 
 
 in 1 A& cnrity, is included. But see 1 E. S., 591, § 8,^. 7 ante; 
 
 i 8 defined, also, "the cases cited in Note i,pp. 7-9 ante / also. Blunt v. 
 Sanna & Blunt v. Ma/rtin,p. 314 a/nte, and the opinion 
 oi Assistant Yice-Chancdlor, in those cases, in Note 4, pp. 
 7-9 ante ; also, the opinion of OardJmer, C. J., in Oillet 
 V. Phillips, decided by the Court of Appeals in October, 
 1855. 
 
appendix. 817 
 
 Talmage v. Peil. 
 
 {Not reported) 
 
 In Decembek, 1849, the Supreme Court {Jones, Ed- 
 monds, and Hwrlhut, Justices) held, that the State of Ohio 
 had a good and valid title to a bond and mortgage for 
 $15,000 made by Pell and wife to a banking association, 
 and by such association assigned to the State of Ohio as se- 
 cm-ity for the payment of certificates of deposit, payable on 
 time, and given for Ohio State stocks, purchased by such 
 association to sell again, or as a means of raising money. 
 But see this case reversed by the Oowrt of Appeals (3 Sel- revera'ei'* 
 den, 328.) 
 
 IN THE COURT OP APPEALS. 
 
 Leavitt v. Palmer. 
 
 (3 OomstocJe, 19-40.) 
 
 In December, 1849, the Cottbt of Appeals affirmed so 
 much of the judgment o£ the Supreme Court in this case, pg^^^Ma'^' 
 as adjudged the notes or certificates referred to in the trust V""'?"' ™. 
 deed, illegal and void, and reversed the residue of the de- ing money, 
 cree of the Supreme Court — and held, that the statute ofv^l*' 
 May 14, 1840 {Stat. 1840, 306, § 4), is not confined in. its 
 interpretation to bills and notes capable of circulation as §4p.iu 
 money ; that negotiable promissory notes issued by a bank- Stonotes 
 ing association, payable in London, in sterling money, 12 "fjFOT'iatint 
 months after date, with interest, and delivered to a Lon- »> monsy" 
 don firm on account of a previous liability of the bank, 
 were illegally issued and void ; and further held, that a 
 trust deed, executed at same time, transferring corporate ^.^^1'^^^^ 
 effects of the bank to trustees for the purpose of securing secure post- 
 the payment of the notes, was also illegal and void ; and''""'' ** ' 
 that a court of equity will not reform a deed or writing, 
 unless it be alleged and proved that there was a mistake 
 or accident in the preparation of the instrument, so that it 
 does not express the true intention of the parties ; and that 
 a court of equity could not reform the deed in this case, so 
 as to enable it to stand as a security for the original liabil- 
 
318 
 
 APPENDIX. 
 
 ity for which the post-notes were given. See this case in 
 5 Barb. S. C. M., 9, under the title of Leavitt v. Blotch- 
 ford. ^Qeform of posPrwUs in this case, p. 120 ante. (83) 
 
 Bank of Chillicothe v. Dodge. 
 (8 Barb., S. O. R., 233-238.) 
 
 Post-bill 
 dated Sept. 
 8(Jth, 1889, 
 illegal. 
 
 Foreign 
 law. 
 
 In March, 1850, the Supreme Court {Johnson, Wells, 
 <& Selden, Justices) held, that a draft or bill, dated Sep- 
 tember 30th, 1839, payable three months after date, issued 
 by a banking corporation, under the general law, is utterly 
 fraudulent and void as being prohibited by statute ; and 
 that no person by any act can give validity or vitality to. 
 it as a commercial paper anywhere ; but that money ad- 
 vanced upon such a draft in Ohio, by an Ohio bank, to 
 Dodge, the indorsee of the draft, could be recovered back 
 in an action against him, on the principle that money thus 
 paid, must be considered as having been paid without con- 
 sideration ; and also, that such Ohio bank (being a foreign 
 corporation) is not presumed to have knowledge of our 
 statute. See form of post-Mil in this case, p. 118 ante. 
 
 m 
 
 (83) The Palmers, for whose benefit the trust assignment in this case 
 was made, were foreigners, residing in London. The proiniesory notes de- 
 creed illegal by the Court of Appeals, were payable in London, in British 
 currency. The counsel of the {"aimers raised and argued this point : " If 
 the 48 bills or notes were prohibited by the statute, they were not on that 
 account Void, especially as they were to be delivered to an English credi- 
 tor, as security for an English debt, and were made payable in England;" 
 and also, the further point, that if the Palmers " had had full notice of the 
 objeot " (of certain bills of exchange involved in the case, and which were 
 accepted by them in Londo'n), " they were not chargeable with notice, that' 
 such object was an act forbidden by the law of New York." See Palmers' 
 Points, in tlie Oowrt of Appeals. 
 
 In 1852, the Girurt of Appeals decided the case of the State of Ohio y. 
 Leavitt, Receiver of the Jfforth American Trust and Banking Company, a 
 corporation created under the general banking law of the State of New 
 York. (3 Selden, 328.) 
 
 (84) Mr. Grant, in his Treatise on the Law of Corporations, says — " There 
 is authority to show that foreign-made corporations may sue in this coun- 
 try (England) in like manner as a corporation domiciled here, although it do 
 not appear that a name had ever been given them, or that they had ever 
 
APPENDIX. 819 
 
 CirfXER & Sexton t. SanD3?oed. 
 
 (8 Barl., S. O. B., 226-232.) 
 
 In Maeoh, 1850, the Supreme Court {Johnson, Wells, Actofisss, 
 da Selden, Justices) held, that the act of 1835, which •"■" ""**■ 
 makes it unlawful fur any moneyed incorporation \.o charge 
 or receive the premium of exchange on any draft made by 
 it, wbich shall be used or applied in payment of any bill 
 or note discounted by such corporation, does not apply to 
 individual hankers ; that although associations formed un- 
 der the General Banking Law, are corporations, yet an 
 individual hanker cannot be so regarded ; that he lacks 
 
 Bued'before in the nam« in whiok they brought their action here. It will 
 be neoeasary, howeyer, to prove at the trial, by the proper instruments, 
 that they are legally constituted a corporation, capable of suing, in their 
 own country. Actions of this kind Ue by the comity of nations, although 
 the corporation was created in a manner different from that which the law 
 of this country requires^ in fact, the law of this country, in all the cases on 
 this subject, gives way to, and is ruled by, the law of the foreign country. A 
 corporation la deemed to be domiciled in the country frem which it derives 
 its act or charter of incorporation." {Gi'ant on Law of Corporations, Lon- 
 don ed., 1850, pp. 200, 201.) See Louisville Railroad Company v. Letson 
 (2 How., 497). 
 
 , Every person who deals with a corporation, is bound to know what its 
 powers are. Public laws of a particular State, creating or limiting the 
 powers of its local corporations, are notice to all persons, within or without 
 ike State, dealing with such corporations, or in their eontrjots or securities. 
 This point was directly adjudged by Mr. Justice McLean,_iu Root v. Godard 
 and Hayden v. Davis (3 McLean, C. C. R., 102, 276.) 
 
 A corporation can make no contracts, and do no acts, within or without 
 the State which creates it, except such as are authorized by its charter ; 
 and those acts must also be done by such officers and agents, and in such 
 manner, as the charter authorizes; and if the law creating a corporation 
 does not, by the true construction of the words used in the charter, give it 
 the power to exercise its powers beyond the limits of the State, all con- 
 tracts made by it in other States, would be void. Bank of Augusta v. 
 Mrle (13 Peters, 588). 
 
 In construing contracts made by a corporation, the question of corporate 
 capacity is always involved. Sank of Chillicothe v. Swayne (8 Ohio R., 
 256, 286, 287, 288). Bank of the United States v, Owens (2 Peters, 527). 
 
 " We shall briefly repeat," says Mr. Grant, " a moat important principle 
 of corporation law, which has before been adverted to, namely, that a cor- 
 poration is not responsible, as a corporation, for acts which, though color- 
 ably corporate acts, are not within the competency of the corporation to per- 
 form; in such case, the individuals who take part in the pretended corpor- 
 ate act, are responsible." Grant on Corp., London, ed, 1850, p. 281. 
 
 That parties dealing with corporations 'are bound to know what their 
 powers are, see Mumma v. Potomac Company (8 Petera, 287). East Anglian 
 Railway Company v. The Eastern Count ie.i' Railway Company (7 Eng. L. & 
 E. E., 605). Broughton v. Salford Water Works Company (3 Barn, and Aid. 
 1). Root V. Godard (3 McLean, 102). Sayden v. Davis (3 McLean, 276), 
 
320 APPENDIX. 
 
 one of the attributes or properties of a eorporaUon, that is, 
 its principle of succession and perpetuity. 8ee Act of 
 1835, p. 77 ante. 
 
 Bank Commissionees v. St. Laweence Baitk. 
 (8 8. a B., 430-439.) 
 
 In Mat, 1830, \hQ Supreme Court {Cady, Paige, Willard, 
 (& Hand, Justices) rendered judgment in this suit. In this 
 case, a banking corporation under the general law being 
 embarrassed, authorized its president and cashier to raise 
 money to redeem its circulating notes / under this authority, 
 these officers purchased a large amount of state stocks, and 
 ■gave therefor the notes of the banking corporation, signed 
 
 Poat-notes. ^y the president and cashier, payable on time ; the state 
 stocks were applied to the use of the banking corporation ; 
 the notes being protested for non-payment, the president 
 (who was also an indorser on each note) paid the same.; 
 
 ci»™f<>^'' AeW, that the president had a valid legal claim against the 
 
 ^"Sreer. bank to be re-imbursed for the amount so' paid by him; 
 
 and, upon 'the bank's subsequent failure, he was entitled 
 
 to come in as a creditor thereof, before the Receiver, and 
 
 This case have his claim allowed. But see this case reversed by the 
 Court of Appeals (3 Selden, 513). See form of post-notes 
 in this case, 'p. 120 ante. 
 
 reversed. 
 
 IN THE COURT OF APPEALS. 
 
 GiLLET V. Moody. 
 (3 Comstock, 479-488.) 
 
 Associa- In Jttlt, 1850, the Court of Appeals reversed the judg- 
 
 Sme'^edcor-™'^"'' of the Supreme Court in this case ; where a banking 
 
 poraiions associatiou, formed under the general law, being insolvent, 
 
 meaninBofitranst'erred to one of its directors certain Arkansas bonds 
 
 BMp.flMte. in exchange for shares of its own stock, — -this court held, on 
 
 a bill filed by the Receiver of the bank, that the transaction 
 
 was illegal and void under the statute 1 S. S., 589 " to 
 
 prevent the insolvency, (&c.,of moneyed corporations,^'' — and 
 
APPENDIX. 321 
 
 that the Eeceiver might retain the bonds for the benefit of ^ufiforT/od'to 
 creditors; md also, that the transaction was void as toj«^Ji^°8J^5_«_ 
 creditors upon general principles, irrespective of the stat- ferred^ con- 
 utory prohibition. It was also held, that banking asso- s™m9.° 
 ciations under the general law, are moneyed "o?!?"'^^ tio? v°o?d° on 
 tions, and as such, are within the statute above mentioned ; general prin- 
 and that a Recevoer represents both the creditors and stock- °'^°';„i,. 
 holders, and may assert their rights when affected by the tions aro 
 fraudulent or illegal acts of the institution. S??oratioM. 
 
 Receiver 
 represents 
 
 creditors and 
 
 stockholders. 
 
 IN THE COURT OP APPEALS. 
 
 Palmee, Eeceivee, v. Lawrence. 
 (1 Selden, 389-394.) 
 
 In September, 1851, the Court of Appeals held in 
 this case, that the Court for the Correction of Errors having 
 decided that the General Bank Act of 1838 was constiim- ^^^^ 
 Uonally passed, — ^that question must be regarded as settled cofuutMUon- 
 by authority binding upon the courts of this State. ««ypa»ed. 
 
 IN THE COURT OP APPEALS. 
 
 Talmage v. Pell. 
 (3 Sdden, 328—348.) 
 
 Iir October, 1852, the Court of Appeals reversed the 
 judgment of the Supreme Court, and held, that every asso- 
 ciation organized under the general banking law, is a asjoj,,. 
 moneyed corporation, within the meaning of the statutes ^^'>^'"o 
 of this State relating to moneyed corporations: and is ^rpofations, 
 hound and affected by those statutes, excepting only soby^ustot- 
 far as such statutes are inconsistent with the provisions of ^J°| relating 
 the act to authorize the business of banking or of the actspora'ions; '" 
 amending the same ; it was further held, that such asso- ''*"'°" '™' 
 21 
 
322 APPENDIX. 
 
 powlrTo ciations are banking oorporaUons and only possess authority 
 sff"™! t*'. ^'^'^^y on the business of banking in the manner and 
 ^'°°''' with the powers specified in the said act ; it was further 
 held, that such associations liave no power to purchase 
 State or other stocks for the purpose of selling them for 
 profit, or as a means of raising money, except when such 
 stocks have been received in good faith, as security for a 
 loan made by, or a debt due to such association, or when 
 taken in payment, in whole or in part, of such loan or 
 debt. Where a banking association assigned mortgages as 
 collateral security to the holders of its certificates of deposit, 
 payable on time, given for State stocks purchased of such 
 holders, to sell again — it was held, that the transaction 
 was illegal and the assignment of the mortgages void ; and 
 mr'^'re^di-*^ was/wr'^Aej' held, that a Receiver oi an insolvent corpor- 
 ate illegal ation may repudiate the illegal transfer of its securities by 
 b-amfers. its ofiicers, and may claim tuem as a part of Its fuud. See 
 form of post notes m this case, p. 121 ante. 
 
 IN THE COURT OP APPEALS. 
 
 Bank Commissionees v. St. Lawrence Bank. 
 (3 Selden, 513-517.) 
 
 In Dboembee, 1852, the Court op Appeals reversed the 
 ttme*^ven judgment of the Supreme Court in this case, and held, that 
 gj^p'"y'°s promissory notes payable on time, and with interest, given 
 joidin the by a banking association upon a purchase of State stocks, are 
 holder who void, whethcT in the hands of the holder, or of an accom- 
 endOT^eT" ^ modatiou endorser, who has paid for them ; and also, where 
 State stocks were purchased on a credit by a banking 
 association, for the purpose of appropriating them to the 
 payment of its circulating notes, the president, who con- 
 ducted the negotiation, is charged witli knowledge of its 
 illegality, and cannot, by advancing to the seller the price 
 agreed to be paid, enforce the payment against the asso- 
 ciation. See form of post notes in this case, p. 120. ante. 
 
APPENDIX. 
 
 323 
 
 GrILLET, EeOEITEE, V. PhILLIPS. 
 
 {Not reported in Supreme Cov/rt.) 
 
 In January, 1853, the Supreme Court {Willard, Cady 
 <& Hand, Justices), at a general term, affirmed the 
 decree made in this case in December, 1849, by Hand, 
 Justice. Mr. Justice Hand held in this case, that the 
 transfer and sale of certain notes of the St. Lawrence 
 bank, to the defendant, and for which he had advanced 
 to that bank $1,200, was void, and that he was liable to 
 account for their proceeds to the plaintiff; hut it was 
 also held, that the defendant, on such accounting, was 
 entitled to be allowed the $1,200, advanced by_ him to 
 the bank on the purchase of the notes, with interest ; 
 and it was also held that section eighth (1 R. S. 591, 
 p. 7 arhte), and section ninth (1 R. S. 591, pp. 8 and 9 
 ante), are applicable to corporations organized under the 
 general banking law. The judgment of the Supreme 
 Court in this Case was reversed by the Court of Appeals 
 in October, 1855, See Gillet, Receiver, v. Phillips (3 Ker- 
 nan, 114). 
 
 IN THE COURT OF APPEALS. 
 
 Gillet, Reoeivee, v. Phillips. 
 (3 Kernan, 114-121.) 
 
 In October, 1855, the Court of Appeals reversed the a/'^ll^^^^ 
 judgment of the Supreme Court in this case, and held, effects ex- 
 that a transfer made on behalf of a banking corporation, $°ooo?nnan- 
 by its cashier,' of promissory notes exceeding $1,000 in *''™™g„*^ 
 value, and which was unauthorized by a previous resolu- '^^"g""^ "i 
 tion of its board of directors, is illegal ; that the transfer Directors, 
 was directly within the prohibition of the jBrst clause of '"o^'etranii- 
 the eighth section of 1 R. S. 591 {See § 8, p. 7, ante); that^«^|^Mdden 
 such a transfer is void, as against the Receiver (appointed "«<«• ' 
 •after the transfer was made), unless the person claiining transfer voia 
 under it is a purchaser for a valuable consideration, and Se^eMiTer 
 
324 APPENDED 
 
 without notice {See last clause of ^ 8, p. 7 ante) j and 
 ^j^A^-^'r??'<»" where the unauthorized transfer is to a director of the 
 with notice bant, he is chargeable with notice ; and also, where the 
 pre^^uB res' transfer is unauthorized and the purchaser has notice, he 
 ointton. ig jiQt (in an action by the Receiver to avoid the sale and 
 receive the property transferred, or its proceeds) entitled 
 ser wffSo- to rccoup, uor can he be allowed the consideration paid 
 ttfled.°o re"- ^7 ^^"^ ^o the bank ; that the contract in this case was 
 eouft nor not Only unauthorized, but illegal ; that no action could be 
 allowed the Sustained upon it, if executory, in favor of the defendant, 
 SpaS' ^or to set it aside, if executed ; nor could it become the 
 foundation of an implied assumpsit in behalf of the offend- 
 ing party. 
 
 CuETis V. Lkavitt, & Leavitt v. Blatohfohd. 
 (18 Barl. S. G. B. 309-3T8.) 
 
 In December, 1853, the Supreme Court {Edwards, 
 Mitchell c& Boosevelt, Justices), held that certain trust 
 conveyances made to Blatchford, Curtis and Graham, trus- 
 tees, by the North American Trust & Banking Company 
 (an association under the general banking law), to secure 
 the payment of 1350 obligations issued by that Company, 
 bearing even date with the conveyances, payable on time, 
 were legal and valid conveyances. 
 
 These cases are now pending in the Court of Appeals, 
 and are generally known as the Million and J^irst Half 
 Million trust cases. 
 
 Leavitt, Receivek, v. Geaham. 
 {N'ot reported in Supreme Court.) 
 
 In July, 1854, the Supreme Court {Mitchell, JRoosevelt 
 cfe Clerhe, Justices), held that a certain trust conveyance 
 made to Blatchford, Curtis and Grkham, trustees, by the 
 North American Trust & Banking Company (an associ- 
 
APPENDIX. 325 
 
 ation under the general banking law), to secure tlie pay- 
 ment of 450 obligations issued by that Company, bearing 
 even date with the conveyance,, payable on time, was a 
 legal and valid conveyance. 
 
 This case is now pending in the Cowrt of Appeals, and 
 is called the Second Half Million trust case. 
 
 Tkact v. Talmage. 
 (18 Ba/rl. 8. O. E. 456-466). 
 
 In September, 1854, the Sitpreme Court {Mitchell, 
 Boosevelt c& Gierke, Justices), held that a bank organized 
 under the general banking law, has authority to buy, at a 
 discount. State stocks ; and is not prohibited from issuing 
 its engagements on time, provided they are not adapted 
 nor intended to circulate as money ; that such a baiok is 
 not a body corporate within the meaning of the constitu- 
 tion or the general banking law; and is not subject to 
 penal regulations, involving forfeiture or imprisonment, 
 enacted in reference to corporations proper. 
 
 This case, generally known as the Indiana Case, is now 
 pending in the Cov/ri of Appeals. 
 
 The Court of Errors, and the Court of Appeals, have 
 expressly and finally adjudged in the following cases, that 
 associations organized under the general banking law, are 
 corporations. 
 
 1844. Supervisors of Niagara v. The People. 311 ante. 
 1850. Qillet, Receiver, v. Moody. 320 ante. 
 
 1852. Talmage v. Pell. 321 ante. 
 
INDEX 
 
 PRINCIPAL MATTERS. 
 
 ««» 
 
 P»g«. 
 
 ABATEMENT of suits by or against corporations, act to 
 
 prevent, 230 
 
 ACT of 1827, entitled " Of moneyed corporations," . . 1-17 
 of 1827, entitled " Of general powers, &c. of corpora- 
 tions," 24-29 
 
 of 1829, caUed the " Safety Fund Act," . . . 29-39 
 of 1830, called the " Restraining Act," . . . 39-50 
 of 1830, proceedings against corporations in equity, . 50-75 
 of 1830, proceedings agdinst corporations in courts of 
 
 law, 240-247 
 
 of 1838, called the General Banking Law, . . .81, 211 
 of 1840, declaring the issue of certain bills or notes 
 by banking corporations, &c. to be a misdemeanor, . 114, 174 
 ADJUDICATIONS, digest of, relating to the General Bank 
 
 Act, &c 297-325 
 
 AGENTS to examine banking corporations, how appointed, 
 
 149, 150, 183, 200-203 
 powers and duties of, and expenses how paid, 150, 200, 201 
 
 for redemption of circulating notes, how appointed, 
 
 109-112, 186-191 
 ASSESSMENT of taxes on banking corporations, . . . 150, 224 
 See Taxes. 
 
328 INDEX. 
 
 ASSIGNMENTS by moneyed corporations, in certain cases, 
 
 prohibited, 6, V, 8 
 
 made by, when insolvent, with intent to give a 
 
 preference, invalid in law, . . ■ . 8, 9 n. 
 See Conveyance, Transfer, Payment, Lien, Se- 
 curity. 
 ASSOCIATIONS under the general banking law, adjudged 
 
 to be "moneyed corporations,'' . 96, 97 n., Ixi, Izii 
 also to be bound and affected by aU general 
 
 statutes relating to such corporations, . 96, 97 n., Ixii 
 
 to be banking corporations with limited powers, . 97 n. 
 
 to have no power to traffic in state stocks, . 97 n., Ixiii 
 
 term defined to include individual bankers, . . 174 
 
 See Banking Corporations. 
 
 BANKS, Public, when first established vi 
 
 1153, Bank of Venice, ...... vi 
 
 1694, Bank of England, vi 
 
 1695, Bank of Scotland, yii 
 
 1781, Bank of North America, vii 
 
 1783, Bank of Ireland vii 
 
 1791, Bank of the United States, .... vii 
 
 1791, Bank of New York iiv 
 
 1803, Bank of France, vii 
 
 Chartered by the State o/Nm Torlc — 
 
 from 1782 to 1829 , 284, 286 
 
 from 1829 to 1888, 286-289 
 
 organized under the general banking law from 1838 to 
 
 August 1855, 289-294 
 
 history of New York kffialation on the subject of 
 
 banks and banking, from 1781 to 1838, . . . vii to lix 
 
 BANKING, Origin of, v 
 
 unauthorized by law, prohibited, .... 39-49 
 See Eestraining Acts. 
 BANKKUPTCIES of corporations. 
 
 See Fraudulent Bankruptcies. 
 BANKING CORPORATIONS, how organized under the 
 
 general banking law 91 
 
INDEX. 
 
 329 
 
 Pago. 
 
 91 
 91 
 
 91 
 
 97 n. 
 
 92 
 
 !, 93, 94 
 
 94, 199 
 
 94 
 
 BANKING COEPORATIONS— continued. 
 
 any number of persons may associate, 
 to establish ofSces of discount, deposit, and cir- 
 culation, 
 
 capital stock not to be less than $100,000, 
 have no power to traflSc in state stocks, 
 such persons shall make a certificate, . 
 contents of such certificate, . 
 where such certificate shall be filed, 
 copies of such certificate may be used as evidence, 
 securities to be deposited with Comptroller to 
 the amount of $100,000 before commencing 
 
 business, 91, 114 
 
 express powers of such corporations, . . 82, 94, 95, 24 
 adjudged to be moneyed corporations, . . .96, 97 n. 
 shares in, to be deemed personal property, . . 96, 97 
 
 to be transferable, &c., 96 
 
 no change to be made in articles to impair rights, 
 
 &c. of creditors, 
 
 power to increase capital may be reserved by the 
 
 articles, 
 
 contracts by, how to be signed, .... 
 
 suits, &c., how to be brought, &c., . . 98 n., 125-127 
 actions against such corporations, how main- 
 tained, . . ... . . 98 n., 99 
 
 shareholders not personally liable for debts of 
 such corporations, . . .... 
 
 except debts contracted after Jan. 1st, 1850, 
 such corporations may hold real estate for certain 
 
 specified purposes, [See Seal Eatate,'\ 
 when chancellor may order an examination, 
 dividends, provisions as to, . . . . 2, 3, 4, 104 
 
 if any part of capital withdrawn, no dividends to 
 
 be made until deficit be made good, . . . 104 
 
 damages on protested " circulating notes," . 105 n., 190 
 duties of president and cashier, .... 105 
 
 98 
 
 98 
 98 
 
 125-127 
 
 99, 100 
 155 
 
 100, 101 
 101 
 
S30 INDEX 
 
 Puge. 
 BANKING CORPORATIONS— continued. 
 
 power to remove president, &c. at pleasure, . 95 
 when banking eorporations may relinquish busi- 
 ness, 133 
 
 subject to taxation, 150, 224 
 
 may le proceeded agaimtfor the following musei — 
 for violations of provisions of the general 
 
 banking law, '58, 104 
 
 for making dividends in certain cases, . . 104 
 
 for violations of any other statute binding 
 
 upon them, 58 
 
 for neglecting to m^ke quarterly reports, . 140, 149 
 \i'vD&(ii.^eD.i, Oil unahle to pay their dehtB, . 58, 59 n. 
 if default be made in payment of any debt or 
 
 liability contracted a/icj-Jan.lsi, 1850, 155, 158, 159 
 if not " clearly solvent," the judge to make 
 an order declaring the corporation vmol- 
 
 •cent, 159, 160 
 
 Penalties imposed as follows — 
 
 for violating § 6 of the Restraining Act, . 43 
 
 for violating §§ 8 and 10 of Restraining Act, 47, 48, 49 
 for violating any of the provisions of the acts 
 
 concerning /omp'ji lanJc notes, . . . 108, 195 
 for neglecting to redeem their circulating 
 
 notes, 110 
 
 for issuing bills or notes in violation of the 
 
 Act of May 14th, 1840, .... 114,174 
 for neglecting to make quarterly reports, 
 
 140, 149, 183, 196 
 for neglecting to keep a book containing 
 
 names, &c. of shareholders, . . . 157 
 
 for a refusal to exhibit such book, . . 157 
 
 for re-issuing circulating notes of incorporated 
 banks after a certain time in certain cases, 197, 198 
 See Associations, Officers & Directors, Injunc- 
 tion, Receivers, Chancellor, Stockholders, act 
 to enforce responsibility of. Post Notes. 
 
INDEX. 331 
 
 BANK BILLS of foreign banks under $5, act prohibiting, 
 
 repealed 206 
 
 See Foreign Bank Notes, Circulating Notes, Post 
 Notes. 
 BANK NOTES, Act of 1830 concerning, .... 75 
 
 See § 31 General Banking Law, p. 105. 
 
 redemption of, 109-112, 186-191 
 
 See Circulating Notes, Post Notes, Foreign Bank 
 
 Notes. 
 
 BANK DEPARTMENT, an act to estabUsh, . . . 178-185 
 
 charged with the execution of all laws relating to 
 
 banks 179 
 
 chief ofBcer, a superintendent, .... 179 
 how appointed, term of office, &c., . . 179 
 powers of superintendent, . . . 180 
 to hold in custody bank plates, <fec., . . 181 
 expenses of department, how paid, . . . 181, 182 
 § 14: of general banking law to apply to superin- 
 tendent, . _ 91,182,183 
 
 superintendent to fix the day for quarterly bank 
 
 reports, 183 
 
 mortgages, how to be held by him, . . . 184 
 annual reports of superintendent, . . . 184 
 BANK OF ENGLAND prohibited from trading, . . ix n, 83 n. 
 issue department separated from ianJcing depart- 
 ment, 84 n. 
 
 design of such separation, 84 n. 
 
 issues of, secured by gorernment debt, . liii n., 84 n. 
 See prohibitions against trading, in charters of the 
 banks of Scotland, Ireland, France, and of the 
 United States, pp. ix n., xiii n. 
 
 See Trading, Mercantile Traffic. 
 BANKING POWERS, first legislative specification of, in 
 
 1825, xxvii 
 
 not specified in early bank charters, . . . xvi 
 
 enumerated in the statute of 1827, ... 26 
 
332 INDEX 
 
 • Pago. 
 
 BANKING POWERS— continued. 
 
 enumerated in the Restraining Act, of 1830, . . 40 n. 
 
 in Safety-Fund bank charters, . . . 95 n. 
 
 in the General Banking Law, ... 94, 95 
 
 BANKING SYSTEMS of New York. 
 
 first iyitem from 1791 to 1829 xiv to xliii 
 
 charter of Bank of New York, 1791, is a model of 
 bank charters prior to 1825, .... xiv-xvii 
 
 leading features of bank charters prior to 1825, . xiv-xyii 
 
 these charters contained no specification of bank- 
 ing powers, xvi 
 
 they authorized an issue of notes to tlvree times 
 
 the amount of capital, xxxvi 
 
 and required only a small part of the capital to be 
 actually paid in before issuing notes. 
 (See Bank Charters 'prior to 1829.) 
 
 from 1791 to 1825 the legislature relied upon pro- 
 hibitory clauses in each charter, . . . xvi 
 
 all these contained a prohibition against trading 
 by banks, xri 
 
 Restraining Act of 1804 guaranteed to banks a 
 
 monopoly, xvii 
 
 Restraining Act of 1818 further guaranteed this 
 monopoly, xix 
 
 main provisions of early bank charters derived 
 from charters of Bank of England and Bank of 
 the United States, xx 
 
 banks chartered in New York from 1782 to 1829, 284, 285 
 
 means employed to obtain lanJc charters in 1799, 
 
 1805, 1812, &c., xxi to xxv 
 
 Spencer's report (1825) on certain inswrance com- 
 panies exercising iunhing powers by loaning 
 bonds, &c., xxiv 
 
 Spencer's bill of 1825 to prevent fraudulent ianh- 
 rupteies by corporations, xxv 
 
 this was a statute of lankruptcy applied to corpo- 
 rations xxvi 
 
INDEX. 333 
 
 Page. 
 BANKING SYSTEMS— continued. 
 
 in 1825, the legislature for the first time specified 
 in bank charters, banking pcnoera, . . . xxrii 
 
 in 1826-7, certain insurance companies assumed 
 
 the exercise of banking powers, . xxviii to xxxy 
 
 in 1826-7, officers in these insurance companies 
 
 were indicted, xxix to xxxt 
 
 these criminal prosecutions were generally known 
 
 as the "conspiracy trials," .... xxix 
 
 " Life & Fire Bonds," adjudications upon, xxx to xxxv 
 
 1827, Governor Clinton, in his message, recom- 
 mended further restrictions on banks, xxxv to xxxvii 
 
 1827, the legislature adopted a stringent code of 
 statute regulations to govern " moneyed corpo- 
 rations," which included inmrance companies 
 (§§ 51, 52, p. 23), xxxvii 
 
 this code prepared by Revisers familiar with the 
 
 disclosures made by the "conspiracy trials," . xxxviii 
 
 main objects sought to be attained by this code of 
 
 1827, xxxix to xl 
 
 See this code (Revised Statutes), pp. 1-28. 
 
 the code of 1827 contained onerous provisions in 
 relation to directors, &c., 10-13 
 
 1829, Governor Van Buren, in his message, rec- 
 ommended a modification or repeal of some of 
 the restrictions in the code of 1827, . xli to xliii 
 
 1829, t?ie second, or safety-fund, system, . . . xliii 
 
 leading features of this system xlv, xlvi 
 
 it created a " bank fund," xlvi 
 
 it established a board of Bank Commissioners, . xlvi 
 
 it modified certain provisions of the code of 1827, 
 
 10-13, 36, 37 
 
 charters under it specified the banking powers 
 granted, xlv, 95 
 
 and contained a prohibition against trading by 
 
 banks, xlv 
 
334 INDEX. 
 
 Page. 
 
 BANKING SYSTEMS— continued. 
 
 banks under it were prohibited from issuing notes, 
 
 &c., on time, xliv, 38 
 
 ■were also prohibited from exercising corporate 
 
 powers not expressly granted, . .• . . 25 
 
 were subject to inspection by the Bank Commis- 
 sioners, xlvi, 34 
 
 were prohibited from making loans, &c., exceed- 
 ing twice & a half their capitals, ... 36 
 
 were forbidden to have bills in circulation exceed- 
 ing twice their capitals, ..... 36 
 
 were forbidden to make loans until the whole 
 
 capital was paid in 38 
 
 banks chartered under the safety-fund system 
 
 from 1829 to 1837 284, 285 
 
 how this system worked, xlvi 
 
 1837, all the safety-fund banks in the State sus- 
 pended specie payments xlix 
 
 this suspension sanctioned by the legislature for 
 
 one year, xlix n. 
 
 But see Constitution of 1846, p. 265. 
 
 1837, restraining act so modified as to allow indi- 
 viduals to receive deposits, Sec, . . . 49 n. 
 
 this repealing act not to apply to corporations, 
 
 foreign or domestic, 49, 50 n. 
 
 remedies proposed, and theories advocated, by 
 
 McCuUoch and others, 1 to Ivi 
 
 1838, April 16th, a majority of bank delegates 
 from eighteen States resolved not to resume 
 
 specie payments before January, 1839, . . xlix, 1 
 1838, April 18th, the legislature passed the gene- 
 ral ianJcing law, ...... 1, 81 
 
 1838, the third, or existing banJcing system : 
 
 distinctive principles of this system, . . . Ivii to lix 
 it separates the issue from the hanhing depart- 
 ment 82, 83, 84 n., 91 n. 
 
INDEX, 335 
 
 Page. 
 BANKING SYSTEMS— continued. 
 
 it requires ample security for all bank issues, 265, 81, 82 
 
 it authorizes the issue of only a certain Tdnd of 
 promissory notes, 82 n. 
 
 it makes the issue of post notes a misdemeanor, . 114 
 
 iefore any notes are given out by the issue de- 
 partment, securities must be pledged for their 
 redemption, 81, 82 
 
 it authorizes any number of corporations to be 
 
 formed, . 91 
 
 it specifies the ianMng powers which such corpo- 
 rations may exercise, 94, 95 n. 
 
 it authorizes each corporation to fix for itself its 
 name, its capital, its location, and the period 
 of its corporate life, Ix, 92, 93, 94 
 
 it requires an actual deposit of $100,000 in se- 
 curities before cfMnTOeracinj' banking business, . 91,114 
 
 banks under this system subject to all general 
 laws relating to "moneyed corporations,'' &c., 
 
 96, 97, n., Ix to Ixiii 
 
 safety-fund and general-law systems contrasted, . Ivii 
 
 banking corporations organized from 1838 to 1855, 289-295 
 BILLS OF EXCHANGE, acts in relation to, . . . 253-260 
 
 form a large part of the circulating mddium, 300, 301 n. 
 
 amount in circulation in Great Britain, . . 301 n. 
 
 bankers' bills and mercantile bills, difference be- 
 tween, 308 n. 
 
 fictitious bills, described by McCuUoch, . . 803 n. 
 
 " drawing & redrawing," described by Adam 
 Smith, ...... 301 n., 302, 303 
 
 "raising money by circulation,'' described by 
 Adam Smith 301 n., 302, 303 
 
 history of a Scottish Bank of 1 V69, by Adam Smith, 303 n. 
 
 bills on time, or payable with interest, issues of, 
 by banking corporations, prohibited, . . 38, 114 
 
 unless drawn on foreign countries, \^Act of 1850,] 1Y4 
 
336 
 
 INDEX 
 
 BILLS OF EXCHANGE— continued. 
 
 damages on non-payment of bills, 
 on bills on certain Northern and Eastern States, 
 " " on certain Southern and Western States, 
 " " on other States and places on this con 
 tinent ....... 
 
 on bills on any person or place in Europe, 
 damages to be in lieu of interest and charges, 
 when no reference to rate of exchange shall be 
 
 made, 
 
 otherwise when payable in foreign currency, 
 for non-acceptance of bills, 
 by whom alone damages shall be recovered, 
 BOARD OF DIRECTORS, quorum of, . 
 
 previous resolution of, necessary to authorize 
 
 certain transfers, 
 
 See Gillei m. PMlUpa, p. 823. See OfBcers & 
 Directors. 
 CHAN'CELLOR shall have power,— 
 
 to restrain any corporation from exercising a franchise 
 
 not granted to it, 
 
 from doing business, not authorized by charter, 
 
 to restrain individuals from exercising corporate rights 
 
 not granted to them, 
 
 when such injunction may be issued, 
 shall have jurisdiction, — 
 
 over directors of corporations, 
 
 to compel them to account for corporate funds, . 
 
 to decree payment of property wasted, 
 
 to suspend officers in cases of abuses, 
 
 to remove officers for misconduct, .... 
 
 to direct new elections, 
 
 to set aside alienations of property made contrary to 
 
 provisions of law, 
 
 to set aside like alienations made for purposes foreign 
 to lawful business of the corporation 
 
 Page. 
 
 256, 257 
 256 
 256 
 
 256 
 
 . 256,25T 
 
 257 
 
 257 
 257 
 257 
 257 
 27 
 
 8n. 
 
 51 
 61 
 
 51 
 52, 58, 59 
 
 52 
 63 
 53 
 63 
 63 
 53 
 
 63 
 
 63 
 
INDEX 
 
 337 
 
 CHANCELLOR ihall have jurisdiction — continued, 
 to restrain such threatened alienations, 
 preceding powers how to be exercised, 
 when corporate property may be sequestered, 
 upon final decree, how distribution shall be made, 
 certain acts to be deemed a surrender of corporati 
 
 rights, &c 
 
 certain omissions and acts to dissolve a corporation, 
 if insolvent, or unable to pay its debts, a corporation 
 
 may be enjoined, 
 
 it may be enjoined for violation of its charter. 
 
 See also § 18 Safety Fund Act, p. 34. 
 or for a violation of any law binding upon it 
 See § 18 Safety Fund Act, p. 34. 
 See Banking Corporations, Injunction, Insolvency. 
 CHANGE OF PLACE of business by banliing corporations, 
 special acts authorizing, .... 
 See Individual Banljers. 
 CHARITABLE INSTITUTIONS, dividends on stocks held by. 
 
 Act in relation to, 
 
 CHARTERS, reservation of power to repeal, 
 
 of Bank of England 1694, prohibitions in, . 
 of Bank of North America (1781, 1782) what prohibi- 
 tions and restrictions in, were omitted, . 
 * inserted in the Pennsylvania charter of 1787, 
 of Bank of the U. S. 1791, prohibitions in, . 
 of Bank of New York 1791, prohibitions in, 
 of Banks of France, Scotland, and Ireland, prohibi 
 
 tions in, • . . . 
 
 leading features and provisions in New York bank 
 charters, prior to 1825, ... 
 
 how changed in 1825, 
 
 of safety-fund banks, how framed, from 1829 to 1838 
 distinctions between safety-fund bank charters and the 
 provisions of the general law o/1838. 
 
 See Banking Systems. 
 22 
 
 54 
 56 
 57 
 58 
 
 58 
 68 
 
 58 
 58, 104 
 
 58 
 
 92 n. 
 XXV, 92 n 
 
 231 
 
 231 
 
 27 
 
 ix n. 
 
 viii 
 
 xi 
 
 xiv 
 
 Xtin. 
 
 XIV 
 
 xxvii 
 
 xlv 
 
 Ivii 
 
338 INDEX 
 
 Pago. 
 CHARTERED BANKS, special provisions as to, . . 171, 172 
 
 upon expiration of their charters may organize 
 
 under the general law 171 
 
 registered notes may be issued to, . . . 154 
 
 may purchase certain stocks, &c., . . . 172 
 
 certain notes of, to be redeemed and destroyed, . 137 
 
 may hold certain real estate, .... 172 
 
 See Banking Corporations. 
 CIRCULATING NOTES, issued by Banking Corporations:— 
 
 to be received /toot the Comptroller, ... 81, 82 
 to be countersigned and registered by Comptroller, 81, 82 
 to be payable on demand and without interest, 38, 82, 83, 
 
 114, 174 
 to be payable at bank's place of business, . 82-85,105 
 to be stamped on their face, "secured by pledge 
 
 of public stocks, &c." 88 
 
 to be signed by the president, or vice-president, 
 
 and cashier, 98 
 
 "ample security" for their redemption in specie, 
 
 must be required by the legislature, . . 265 
 
 what securities may be taken, . . . 82 88 89 
 
 what mortgages may be taken, ... 88 153 184 
 no mortgage exceeding $5,000 can be received, . 153, 184 
 what state stocks may be pledged, 82, 113, 142, 153, 154, 
 
 170, I7l 
 pledged securities, when to be sold, . . . 89 90 
 holders of bills secured a ^re;4r«nc«, . . . 265 
 
 plates, dies, &c., to remain in custody of Comp- 
 troller or Superintendent, . . . . 90 138 181 
 penalty on Comptroller for violating § 14 of the 
 
 general law, 91_ i82, 183 
 
 issue of notes, payable on time, prohibited, . 38 114 
 
 issue of notes or bills, payable with interest 
 
 prohibited, , 38^ 114 
 
 issue of bills, &x<x.^i foreign bills of exchange, for- 
 
 I'idden, 38_ n^^ 174 
 
INDEX 
 
 S39 
 
 Page. 
 
 CIRCULATING NOTES— continued. 
 
 issue of notes or bills, by banking corporations not 
 
 specially authorized by law, prohibited — § 3, . 25 
 
 See §§ 3, 6, of Restraining Act, pp. 41-44. 
 bills less than $1000 to be payable at the office of 
 
 the bank, 75, 105 
 
 when to be deemed payable at the bankinghouse, 75, 105 
 mutilated may be exchanged, . . . . 115 
 
 less than $1 forbidden, 44, 45 
 
 how demanded and protested, .... 187-190 
 when interest may be recovered, .... 187 
 
 when interest shall not be recovered, ... 188 
 
 in what manner protested, 188, 189 
 
 damages for non-payment of, ... . 190 
 
 aggregate amount in circulation, August 1855, . 294 
 
 See Post Notes, Bills of Exchange, Drawing and 
 Re-Drawing. 
 CLEARING HOUSE in the city of New York, account of, . 266-277 
 
 constitution of, 278-282 
 
 names of Associated Banks, .... 282, 283 
 
 See New York Clearing House. 
 CLINTON'S (Gov.) views on banks and banking, 1827, xxxv to xxxviii 
 COLLECTION OP DEBTS against corporations, Act to 
 
 facilitate, 232 
 
 COMPTROLLER, powers and duties of, relative to securities 
 
 pledged for "circulating notes," . . . 81-91,180 
 penalty on, for violating § 14 of the general banking 
 
 law, 91, 182, 183 
 
 See Superintendent. 
 CONSPIRACY TRIALS of 1826 and 1827, history of, &c., . xxix 
 
 See Banking Systems. 
 CONSTITUTION of 1821, provisions of, as to the creation of 
 
 corporations by the legislature, . . . 297 n. 
 of 1846, provisions of, as to corporations, . . 264,265 
 the term " corporation," defined by, . . . 264 
 
 corporations to be formed under general laws, . 264 
 
340 INDEX. 
 
 Page. 
 CONSTITUTION of 1846— continued, 
 
 not to be created by special charter, . . . 264 
 
 the legislature shall hate no power 
 to pass a special charter for banking purposes, 265 
 
 nor to pass a law sanctioning a suspension of 
 
 specie payments 265 
 
 the legislature shall provide 
 for the registry of aU biUs or notes, put in 
 
 circulation as money, .... 265 
 
 and shall require ample security for their 
 
 redemption in specie . .... 265 
 
 stockholders shall be liable for certain debts, 265 
 
 bill holders to hare a preference in cases of 
 
 insolvency, 265 
 
 CONTEMPLATION OF INSOLVENCY, conveyances in, by 
 
 moneyed corporations invalid, ... 8, 9 
 
 See Conveyances, Transfers, Insolvency. 
 CONTRACTS by banking corporations to be signed by the 
 
 president or vice-president, and cashier, . . 98 
 
 Dy a corporation unauthorized by its charter, void, 52, 53, 54 n. 
 CONVEYANCES by a moneyed corporation, when insolvent, 
 
 with intent to give a preference, invalid, . . 8, 9 
 
 in contemplation of insolvency, with like intent, 
 
 invalid, 8, 9 
 
 See Brouwer v. Harleck, p. 9 n. 
 unauthorized by a previous resolution of the board 
 
 of directors, forbidden in certain cases, . . 7 
 
 See Qillet v. Phillips, p. 323. 
 Blunt y. Hanna, p. 7 n. 
 for benefit of a corporation, must be directly to it 
 
 by name, except, &c., 6 
 
 But see § 24, sub. 4, as to real estate, p. 100, 101. 
 See Transfers, Lien Created, Security Given, Pay- 
 ment, Assignment, Real Estate. 
 CORPORATION, the term defined by the Constitution of 
 
 1846 265 
 
INDEX. 341 
 
 Page. 
 
 CORPORATION, the term defined— continued. 
 
 by Bronson, J., 304, 305 
 
 by MarshaU, C. J., 305 
 
 byKyd 305 
 
 by Grant, 305 
 
 distinction between corporations and partner- 
 ships, ,306 
 
 "moneyed," defined by Revised Statutes, . . 23 
 
 has such powers as are expressly granted, . . 25 n. 
 and such incidental powers as are neeessa/ry to the 
 
 exercise of its express powers, ... 25 
 
 the exercise by, of powers not granted prohibited, 25 
 shall not by construction of implication possess 
 
 tanking powers, 26 
 
 forbidden, by the act of 1850, thereafter to inter- 
 pose the defence of usury, .... 264 
 
 voluntary dissolution of, 64-75 
 
 proceedings against, in equity, .... 50-64 
 
 proceedings against, in courts of law, . . . 240 
 
 foreign, proceedings against, .... 242-253 
 not estopped from denying its power to make a 
 
 contract, 53 n. 
 
 unless expressly authorized by law, 
 
 forbidden to exercise banking powers, . . 26 
 or to employ its efiects for the purpose of 
 
 issuing notes, &c., 41 
 
 or to keep any office for the purpose of re- 
 ceiving deposits, &c., .... 43 
 or for the purpose of issuing notes, &c., . 42, 48 n. 
 See Banking Corporations, Restraining Acts. 
 CREDITORS of moneyed corporations, regulations to secure 
 
 the rights of, 1-17 
 
 bill holders, in certain cases, to have a preference, 265 
 stockholders to be individually responsible, in 
 
 certain cases, 265 
 
342 
 
 INDEX. 
 
 Page. 
 
 COUNTERSIGNED NOTES, aggregate amount in circula- 
 tion in August, 1855, . . . . . 
 See Circulating Notes. 
 DAMAGES on protested circulating notes, .... 
 on protested bills of exchange, .... 
 See Bills of Exchange. 
 DEBTS of certain banking corporations, stockholders liable for, 
 against corporations, an act to facilitate the collection of, 
 DECISIONS on § 4 of the act of May Uth, 1840, 
 on § 1, General Statute (1 R. S. 589), . 
 on §§ 8, 9, General Statute (1 R. S. 591), 
 on the restraining acts, 
 relative to the General Banking Law, 
 relative to Receivers of corporations, . 
 as to unauthorized contracts made by corporations, 
 as to proceedings against corporations, &c. 
 DEFINITIONS of certain terms used in the Revised Statutes, 
 term " moneyed corporation " defined, 
 
 term " directors," 
 
 term " effects," 
 
 term " evidence of debt," .... 
 term "corporations," as used in the Act of April 
 6th, 1850, to prevent corporations from inter 
 posing the defence of usury, 
 term " corporation," as used in the Constitution 
 
 of 1846, 
 
 term "association," as used in the act of April 
 
 11th, 1849, .... 
 term "stockholder," as used in the act of April 
 
 5th, 1849, 
 
 a corporation, definitions of, by jurists and others, 
 partnerships and corporations, distinction be- 
 tween, 
 
 See Corporation, Banking Corporations. 
 DIGEST OF LEADING DECISIONS relating to General 
 
 Bank Act, 297-325 
 
 294 
 
 190 
 256, 257 
 
 155 
 
 232 
 
 114-122 n. 
 
 . 2, 3, 320 
 
 7, 8, 9 n., 323 
 
 42 n., 48 
 
 297-325 
 
 57 n. 
 
 51-55 n. 
 
 74, 75 n. 
 
 23,24 
 
 23 
 
 23 
 
 24 
 
 24 
 
 264 
 
 264 
 
 174 
 
 155 
 304, 305 n. 
 
 306 n. 
 
INDEX 
 
 343 
 
 " DIRECTORS," as used in Revised Statutes, defined, . 
 
 as to election of, 17- 
 
 penalty on, for violating certain sections of Revised 
 
 Statutes, .... 
 penalty on, for purchasing notes of the corpora- 
 tion for less than amount due, 
 penalty on, for discounting notes in certain cases, 
 penalty on, for violating § 3 of Restraining Act, 
 trustees of creditors in certain cases, . 
 See Officers and Directors. 
 DISSOLUTION {Voluntary) of corporations, 
 
 when directors may apply for dissolution, 
 
 contents of application, 
 
 order to show cause, when to be entered, 
 
 when coi'poration to he dissolved, 
 
 who may be appointed receivers, 
 
 rights, interest, and authority of such receivers, 
 
 such Receivers to have all the power of trustees of 
 
 estates of insolvent debtors, 
 certain sales, &c. declared void, .' 
 debtors to account to Receivers, . 
 Receivers to have power to refer controversies, 
 Receivers' commissions, ... 70, 
 order of payment of debts, .... 
 Receivers subject to control of Court of Chancery, 
 decrees and orders subject to appeal, 
 certain corporations excepted, 
 
 See Corporations, Receivers. 
 DIVIDENDS by banking corporations, — 
 to be made from profits only, 
 how profits are to be calculated, 
 surplus profits, how ascertained, 
 losses, how to be charged, . 
 how to be declared on stock owned by the State, 
 or literary, &c. institutions, 
 
 Page. 
 23 
 
 •23, 146 
 
 10 
 
 16 
 16 
 41 
 28 
 
 64-77 
 65 
 66 
 66 
 67 
 
 67,68 
 68 
 
 68 
 69 
 69 
 69 
 134, 135 
 71 
 73 
 74 
 74 
 
 5 
 5 
 5 
 5 
 
 231 
 
344: INDEX. 
 
 Page. 
 
 DIVIDENDS by banking corporations — continued. 
 
 not to be made if any part of capital has been 
 
 withdrawn, 104 
 
 provision if capital is reduced, &c., . . . 140 
 
 if made in such a case, the Chancellor may order 
 
 their affairs to be closed, ..... 104 
 
 "DRAWING & RE-DRA:W"ING " of biUs, described by 
 
 Adam Smith 301 n. 
 
 See Bills of Exchange, Fictitious Bills. 
 DISTRIBUTION of funds by the Comptroller, . . . 175-177 
 "EFFECTS," the term defined in Revised Statutes, . . 24 
 
 "EVIDENCE OP DEBT," the term defined in Revised 
 
 Statutes 24 
 
 EXERCISE of unauthorized banking powers prohibited, . 26 
 
 EXPRESS GRANT of banking powers necessary to their 
 
 exercise by a corporation, .... 26 
 
 EXPRESS POWERS of banking corporations, . . .94, 95 n. 
 
 of safety fund banks, 94, 95 n. 
 
 See Banking Powers. 
 FICTITIOUS BILLS, description of, by M'CuUoch, . . 303 n. 
 are a device for obtaining loans, . . . 302, 303 n. 
 have no effect in transferring or settling debts, . 303 n. 
 the system oi drawing & re-drawing is a mode 
 
 of borrowing money, : . . . 302, 303 n. 
 fiatitioiis MIU balance each other, . . . 303 n. 
 those drawn by London on Glasgow, are exactly 
 
 equal to those drawn by Glasgow on London, . 303 n. 
 See Bills of Exchange, Drawing and Re-drawing, 
 Raising Money by Circulation. 
 FOREIGN BANK NOTES, acts concerning, . . 107-109, 193 
 
 See Bank Bills. 
 POKEIGN CORPORATIONS, 
 
 are within the prohibitions of the Restraining 
 
 Act, §§ 3, 6, . . . . * . .41, 42, 50 n. 
 
 may prosecute suits, &c 240 
 
 upon giving security for costs 240 
 
INDEX. 345 
 
 Page. 
 
 FOREIGN CORPOEATIONS— continued. 
 
 when they shall not maintain an action, . . - 240 
 attachments against, . . . 242, 243, 246, 247, 253 
 
 in what courts suits may be brought, . . . 262, 253 
 
 by whom suits may be prosecuted, . . . 252, 253 
 
 in what cases suits may be brought, . . . 252, 253 
 
 Act of May 14th, 1840, as to proceedings against, 246, 246 
 
 Act of April 11th, 1842, as to suits against, 247, 248, 249 
 
 Act of May 13th, 1845, as to suits against, . . 249,250 
 
 Act of Feb. 21st, 1848, as to suits against, . . 251 
 
 Act of March 15th, 1849, as to remedies against, 252 
 
 actions against, under the Code of Procedure, . 253 
 FRAUDULENT BANKRUPTCIES of corporations. Act of 
 
 1825, to prevent xxv 
 
 this was a statute of hanleruptcy applied to cor- 
 porations, xxvi 
 
 English bankrupt laws did not extend to corpora- 
 tions, xxvi 
 
 provisions of the Act of 1825 re-enacted in Re- 
 vised Statutes, xxvi n. 
 
 See Statute Regulations of 1827, p. 1-28. 
 FRAUDULENT ISSUES of corporate bonds or stock, de- 
 clared to be a fehny, 207, 208 
 
 GENERAL BANKING LAW, as originally passed {with 
 
 notes and references'), . . . 81-107 
 
 as altered by subsequent legislation, . 211-223 
 
 GENERAL LIABILITIES of every corporation, . . . 24 
 
 Prkileges of every corporation, .... 24 
 
 Powers of every corporation, .... 24 
 
 INCORPORATED BANKS, Act as to withdrawal of their 
 
 circulating notes after their special charters 
 
 have expired, 197 
 
 their power to hold real estate, .... 172, 100 
 INDIVIDUAL BANKER, 
 
 must file a certificate stating residence, . . 144 
 
 penalty for neglect 144 
 
346 
 
 INDEX 
 
 Page. 
 
 INDIVIDUAL BANKER-continued. 
 
 to deposit securities to the amount of $60,000, 
 to be banks of discount and deposit, as well as of 
 
 circulation, 
 
 to transact business at place of residence specified 
 
 in the certificate, 
 
 notice of change of residence to be filed, 
 
 penalty for neglecting to make reports, 
 
 in whose name business shall be conducted, 
 
 sale of banking business prohibited, 
 
 to be individually liable for circulating notes, 
 
 notes, how signed, 
 
 to report names of persons interested with him, 
 penalty for not making such report, 
 persons interested to file a certificate, . 
 persons interested to be jointly liable for debts, 
 circulating notes to express individual liability, 
 circulating notes of, to be payable on demand, 
 and without interest, 
 
 subject to taxation, 
 
 See Banking Corporations. 
 INJUNCTIONS against moneyed corporations, — 
 
 may be issued to restrain any corporation from 
 
 exercising a franchise not granted, . 
 to restrain individuals from exercising corporate 
 rights not granted to them, .... 
 when to be issued, . . . .52, 68, 89, 159, 160 
 to prevent illegal alienations of corporate property, 54 
 
 to prevent directors from using corporate funds 
 
 for purposes unauthorized by the charter, . 55 n. 
 in case of insolvency, to prevent officers, &c. irom 
 
 exercising corporate rights, &c. . . 58, 169, 160 
 ( if corporation is unable to pay its debts, . . 58 
 to restrain proceedings at law against corpora- 
 tions in certain cases, 64 
 
 143 
 
 152 
 
 152 
 144 
 143 
 143, 204 
 204 
 204 
 204 
 143 
 143 
 203 
 208 
 204 
 
 82-85, 114 
 150 
 
 51 
 
 51 
 
INDEX 347 
 
 Pago. 
 INJUNCTIONS against moneyed corporations — continued. 
 
 may be issued upon the application of share- 
 holders in certain cases 55 n., 59, 160 
 
 See Chancellor, Banking Corporations, Insolvency. 
 INSOLVENCY of moneyed corporations, regulations to pre- 
 vent, 1-17 
 
 object of these regulations, as stated by the Reviaors, xxxix, 9 n. 
 if insolvent, corporation may be enjoined, ... 58 
 
 or if unable to pay its debts, 58 
 
 or for violations of its charter, 58, 104 
 
 conveyances by, when insolvent, with intent to give a 
 
 preference, invalid in law, 8, 9 
 
 insolvency defined by Allen, J., in Browjoer v. Ear- 
 
 ieci, 9 n. 
 
 if not " clearly solvent," the judge shall, by an order, 
 
 declare a corporation to be insolvent, . . . 160 
 See Banking Corporations, Injunction, Chancellor, 
 Conveyances, Insolvent Corporations. 
 INSOLVENT CORPORATIONS with banking powers, pro- 
 ceedings against, 58, 158-160 
 
 if insolvent, or unable to pay their debts, . . 58 
 
 for violations of any provisions of their charters, . 58, 104 
 for violations of any other law binding upon them, 58 
 
 insolvency defined by Allen, J., in Browwer v. 
 
 Harbeclc 9 n. 
 
 upon whose application injunction mayisme, 56, 59,158-170 
 for what coMsea injunction may issue, 58, 59, 104, 140, 149, 
 
 155, 156, 159, 160 
 a Receiver may be appointed, . . .59, 158-170 
 powers and duties of Receivers, . . 60,68,161-170 
 bill holders to have a preference, . . . 265 
 
 directors, &c., may be made parties in certain 
 
 cases, 61 
 
 jurisdiction over directors, &c., .... 61 
 
 proceedings on bills filed by creditors, . . 61 
 
 decree when corporation is insolvent, ... 62 
 
348 
 
 INDEX. 
 
 INSO LVBNT CORPORATIONS— continued, 
 distribution of corporate property, 
 liabilities of stockholders, .... 
 liabilities of directors, how enforced, . 
 discoyery by a corporation may be compelled, 
 when oflBcers compelled to answer, 
 answers of officers, how far evidence, . 
 answers, in what cases only, compelled, 
 persons compelled to answer exonerated from 
 
 prosecution, &c., . 
 when proceedings at law shall be stayed, 
 certain corporations excepted, &c.. 
 See Banking Corporations, Injunction, Chancellor. 
 INSPECTORS of election of directors, how chosen, 
 
 power to supply vacancies, . 
 
 officers not to be inspectors, 
 
 oath of inspectors, 
 
 qualification of voters, 
 
 form of oath to be administered 
 
 when votes shall be rejected, 
 
 not to vote on hypothecated stock, 
 
 any person challenged shall take an oath, &c.j 
 
 affidavits to be annexed to proxies, 
 
 certain by-laws invalid, 
 
 books of transfer to be kept, 
 
 married women may vote in certain cases, . 
 
 penalty for refusing inspection of books, . 
 
 remedy for persons aggrieved by an election, 
 
 duty of Supreme Court, .... 
 INTEREST OF MONEY, an act in relation to, . 
 
 rate at which discounts may be made by banks 
 
 subject to the act of 1829, 
 rate of interest allowed to incorporated banks by 
 
 the act of 1817, 
 notes or bills issued by banking corporations pay- 
 able with interest prohibited, 
 
 Page. 
 
 62 
 62 
 63 
 63 
 63 
 68 
 
 63 
 64 
 64 
 
 18 
 18 
 18 
 19 
 19 
 19 
 19 
 19 
 19 
 20 
 20 
 21 
 20 n. 
 21 
 21 
 22 
 260-262 
 
 37 
 
 288 n. 
 
 38, 114 
 
INDEX 
 
 349 
 
 INTEREST OF MONEY— continued. 
 
 recovery of, on protested circulating notes, regu- 
 
 lated. 
 
 187, 188 
 
 when interest shall not be recovered on such 
 
 notes, 
 
 for the purpose of calculating interest, a month 
 to be considered the twelfth part of a year, and 
 
 to consist of 30 days, 
 
 interest for less than one month to be estimated 
 by the proportion which the number of days 
 
 shall bear to 30, 
 
 how interest shall be calculated in certain cases, . 
 See Usury. 
 ISSUES by banking corporations, — 
 
 under exclusive control of the comptroller or superin- 
 tendent, 
 
 must be payable on demand, 
 
 must be payable without interest, 
 
 must be payable at bank's place of business, 
 
 must be secured by government stocks, &c., 
 
 must be stamped by the government, 
 
 by Bank of England, secured by a debt of the English 
 
 government liiin., Sin. 
 
 See Circulating Notes, Post Notes, Bills of Exchange, 
 
 Loans & Discounts, Fictitious Bills, Banking Systems. 
 
 ISSUES, unauthorized, of corporate bonds, &c., declared to 
 
 be a felony, 207,208 
 
 JUDGMENT SUFFERED by a moneyed corporation when 
 insolvent, with intent to give a preference, in- 
 valid, 
 
 See Conveyances, Transfers, Payments, Lien Ore 
 ated. 
 
 HOLIDAYS, an act to designate, 
 
 HUNT'S CASE, report and decision in, ... . 
 LEADING DECISIONS, relating to the general banking law, 
 
 and the powers of corporations formed under it, . 297-325 
 
 188 
 
 261 
 
 261 
 
 261 
 
 81-91, 186-139 
 
 38, 82, 114 
 
 38, 114, 174 
 
 82-85, 105 
 
 82, 88, 265 
 
 8,9 
 
 259 
 44 n. 
 
350 INDEX. 
 
 Pago. 
 LIABILITIES (general) of every corporation, ... 24 
 
 certain liabilities, stockholders liable for, . . 155 
 
 LIENS CREATED by a moneyed corporation, when insolvent 
 
 with intent to prefer, invalid, .... 8, 9 
 
 in contemplation of insolvency, with like intent, 
 
 invalid, 8, 9 
 
 See Conveyances, Transfers. 
 LIFE & FIRE BONDS, for what purpose issued, . . . xxxi 
 
 form of these bonds, xxxi. 43, 122 
 
 powers of Life and Fire Ins. Co xxxi 
 
 adjudications upon, xxxiii 
 
 LITERARY INSTITUTIONS, stocks held by, act in relation 
 
 to dividends on, 281 
 
 LOANS, when to be called in, 6 
 
 LOANS AND DISCOUNTS, limited by Revised Statutes to 
 
 three times the capital paid in, ... . 4 
 
 by the Safety-Fund Act, to twice and a half the 
 
 capital paid in, 36 
 
 but this act required the whole capital to be 
 actually paid in before any discounts, &c. could 
 
 be made 38 
 
 this act also limited the issue of notes to twice the 
 
 capital paid in, 36 
 
 by charters before 1829, debts of banks, over 
 deposits, limited to three times capital paid in, 
 See Charters. 
 
 See Clinton's message, 1827, p. xxxvi. 
 Charters prior to 1829, required only a small per- 
 centage on capital to be paid in before issuing 
 notes, &c. See Charters before 1829. 
 general banking law as amended, requires an 
 aggregate capital of $100,000, and a deposit 
 with Comptroller of $100,000 of securities before 
 commencing banking business, . . . .91, 114 
 but the general law only authorizes secured and 
 countersigned notes to be loaned, ... 82, 88 
 LOSSES, how to be computed 5, 6 
 
INDEX. 351 
 
 Page. 
 
 MANHATTAN COMPANY, how its charter was obtained in 
 
 1799, xxi, xxii 
 
 MERCANTILE TRAFFIC by Bank of England, forbidden, 
 
 ix n. — xlviii n. 
 this bank an engine of state, .... xlviii 
 
 it conducts the banking business of the British 
 
 Government, xlviii 
 
 See Trading, .Prohibition, Charters. 
 McCULLOCH, doctrines advocated by, with respect to secur- 
 ity for bank issues, li to liii 
 
 "MONEYED CORPORATION," the term defined in the 
 
 Revised Statutes, 23 
 
 shall not be interested in notarial fees, . . 77 
 
 nor in premiums on certain drafts, ... 77 
 
 nor place-moneys in the hands of any one for the 
 
 purpose of discounting, &c., .... 78 
 
 See Corporations, Banking Corporations, Insolvent 
 Corporations, Chancellor. 
 MORTGAGES, for a greater amount each than $5,000, cannot 
 
 be received by Comptroller, .... 153, 184 
 
 See Circulating Notes. 
 NATIONAL BANKS of the U. S.— 
 
 forbidden to trade in any thing, except bullion, &c., xiv 
 mercantile traflBc by banks condemned, . . xlviii 
 NEW YORK CLEARING HOUSE, account of, . . . 266-267 
 average amount of daily exchanges, . . . 276 
 mode in which these exchanges are made, . 270-275 
 results accomplished by this system of ex- 
 changes, ; 275 
 
 some of the advantages of this system, . . 275 
 
 it checks violent expansions, and contractions 
 
 ofloans, . 275 
 
 it compels banks to keep a larger Specie basis, 275 
 
 constitution of the Clearing-House, . . . 278 
 
 names of associated banks, .... 282, 283 
 NOTES, issue of, by banking corporations, payable on time, 
 
 or payable with interest, prohibited, . . .88, 114, 174 
 
352 INDEX. 
 
 Page. 
 NOTES— continued. 
 
 giyen in violation of §§ 1, 2, 3 of Restraining Act, void, 41, 42 
 for less than one dollar, prohibited, . . . . 16, 44, 45 
 See Bills, Post Notes, Foreign Bank Notes, Circulating 
 Notes, Bills of Exchange, Fictitious Bills. 
 OFFICERS AND DIRECTORS of moneyed corporations, 
 penalties on, — 
 for violating certain sections of the Revised 
 
 Statutes, 10 
 
 for purchasing notes, &c. of such corporations, 
 
 for less than amount due, .... 16 
 
 for discounting notes refused by directors, . 16, 17 
 for refusing to exhibit transfer books, . . 21 
 
 for violations of §3 and§6,oftheRestraining Act, 41, 43, 49 
 for issuing or circulating notes, &c. in violation 
 
 of § 4 of the Act of May 14th, 1848, . . 114 
 
 for making false statements, or false entries in 
 
 the books of such corporations, ... 36 
 
 for refusing to exhibit the book containing the 
 
 names, &c. of stockholders, .... IBT 
 
 for willfuUy signing, with intent to issue, false 
 
 certificates of shares, &c 207, 208 
 
 may be decreed to pay over to a Receiver corporate 
 funds misapplied, or improperly disposed of, . 10, 233 
 PAYMENTS by a moneyed corporation when insolvent, 
 
 with intent to prefer, invalid, .... 8, 9 
 
 in contemplation of insolvency, with like intent, 
 
 invalid, 8, 9 
 
 See Conveyances, Transfers. 
 PARTNERSHIPS & CORPORATIONS, distinction between, 306 n- 
 PLACE where the operations of discount, &c. are to be 
 carried on, to be specified in the Articles of Associa- 
 tion, (see p. XXV.) 92 n. 
 
 See Individual Banker, Change of Place of Business. 
 PENALTY on every person and every corporation violating 
 or assenting to the violation of § 6 of the Restraining 
 Act 43,44 
 
INDEX. 
 
 353 
 
 Page. 
 
 PENALTY— continued. 
 
 on ofScers Tiolating § 4 of the Act of May 14, 1840, . 
 
 for circulating bUls less than one dollar, 
 
 for circulating notes, &c. payable otherwise than in 
 
 lawful money of the U. S 
 
 See OflBcers & Directors. 
 POST BILLS, issue of, by banking corporations, prohibited, 
 
 except, &c 88 
 
 See Bills of Exchange, Fictitious Bills, Post Notes, 
 Circulating Notes. 
 POST NOTES, &c., issue of, by banking corporations or by 
 
 individual bankers, prohibited, . . 88, 114, 174 
 
 decisions as to the issue of, . 26 n., 43-45 n., 116, 117 n. 
 forms of, adjudicated upon iy the courts, 
 
 in Atty. Gen. v. Life & Fire Ins. Co , . 43, 122, xxxii 
 
 114 
 
 47 
 
 48 
 
 114, 174 
 
 in Jf. Y. Life Ins. & Trust Co. v. Beebe, 
 in Hunts Case, .... 
 mSaffordN. Wyckoff, . 
 in BanTc of GhilicotTis r. Bodge, . 
 in Smith & Warner v. Strong, 
 in Swift V. Been, .... 
 in Leaviit t. Palmer, . 
 in BanJc Commrs. v. St. Lawrence Bank, 
 in Tahnage v. Pell, 
 in Leaditt v. Yates, 
 in Southern Loan Co. v. Morris, . 
 in Miller v. Austin, 
 POWERS (general) of every corporation. 
 
 See Banking Powers. 
 PREFERENCES given by moneyed corporations, when in 
 
 solvent, &c. invalid 
 
 See Conveyances, Transfers. 
 PRINCIPLES ADJUDGED by the highest court in the 
 State in reference to the general bank law, &c. 
 PRIVILEGES (general) of every corporation, 
 23 
 
 26 n. 
 
 44, 45 n. 
 
 118 n. 
 
 118 n. 
 
 119 n. 
 
 119 n. 
 
 120 n. 
 
 120 n. 
 
 121 n. 
 121 n. 
 307 n. 
 307 n. 
 24,25 
 
 8,9 
 
 Ix to Ixiii 
 24,25 
 
354 INDEX. 
 
 Page. 
 PROCEEDINGS against corporations in Equity, ... 60, 66 
 
 at La/vo, . . . 240-247 
 See Banking Corporations, Chancellor, Injunc- 
 tion. 
 PROHIBITION against trading, in all bank charters prior to 
 
 1825, vii-xvii, 83 n. 
 
 omitted in first Pennsylvania charter of the Bank 
 
 of North America, viii 
 
 inserted in the second charter, , . . . xi n. 
 
 inserted in the charters of the two national Banks 
 of the U. S., . . . .. . . . xiv n. 
 
 inserted in charters of Banks of England, France, 
 
 Scotland, and Ireland, ix n. 
 
 against the issue of post notes, . . .38, 114, 174 
 against the exercise, by corporations, of powers 
 
 not expressly given, &c 25 
 
 against the transfers of corporate effects, in cer- 
 tain cases, 6, 7, 8 
 
 See Circulating Notes, Post Notes, Conveyances, 
 Chancellor. 
 PROFITS, how calculated, preparatory to a dividend, . . 5 
 
 surplus, how ascertained, 5 
 
 PROMISSORY NOTES, Acts in relation to, . . . . 253-260 
 
 See Circulating Notes. 
 PROVISIONS of Title II. chap. 18, 1 R. S. 588, apply to 
 every moneyed corporation created after Jan- 
 uary, 1828 28 
 
 PURCHASERS at Receivers' sales, act in relation to, . . 144 
 
 QUORUM of a Board of Directors, 27 
 
 REAL ESTATE, in what cases banking corporations can 
 
 acquire and hold the same, . . . lOO, 101 n. 
 conveyances of real estate to be made to the pres- 
 ident, or other officer indicated in the articles, 100, 101 
 But see%1 of the general statute, p. 6. See Incor- 
 porated Banks. 
 
INDEX. 355 
 
 " RAISING MONEY BY CIRCULATION," as described by 
 
 Adam Smith, 801 n. 
 
 See Bills of Exchange, Fictitious Bills, Drawing 
 and Re-Drawing. 
 RECEIVERS of moneyed corporations, — 
 
 their powers and duties, 59, 60, 68, 69, 161-170, 204, 282, 233 
 subject to order of Chancellor, . . . -73, 136 
 
 power to refer controversies 69 
 
 may hold real estate, 145 
 
 may sue in their own names, .... 145 
 
 duties as to the allowance and disallowance of 
 
 claims against the fund, . . . . 57 n., 60 n. 
 represent the rights of creditors and stockholders, 68, 57 n. 
 may repudiate illegal transfers, &c. of corporate 
 
 effects, 57 n. 
 
 suits commenced by a Receiver not abated by his 
 
 death or removal 280 
 
 their powers and duties under the Acts of April 
 
 5th, 1849, and March 15th, 1855, . . . 161, 205 
 See Act of April 26th, 1882, pp. 280, 281. 
 See Act of Ma/rcTi 19zft, 1852, pp. 232, 233. 
 See Insolvent Corporations, Chancellor, Banking 
 Corporations, Injunction. 
 REGISTERED NOTES may be issued in lieu of unregistered 
 
 notes, 154 
 
 REGULATIONS of 1827 (Revised Statutes),— 
 
 to prevent insolvency of moneyed corporations, . 1-17 
 
 such corporations shall not make dividends, ex- 
 cept from surplus profits, .... 3 
 nor pay any part of capital to stockholders, . . 3 
 nor reduce capital without consent of legislature, 3 
 nor discount notes in payment of installments on 
 
 stock, 3 
 
 nor receive notes to enable stockholders to with- 
 draw moneys paid for stock, .... 4 
 nor apply moneys, except surplus profits, to pur- 
 chase shares of its own stock 4 
 
356 INDEX. 
 
 Page. 
 REGULATIONS— continued. 
 
 nor receiye such shares in payment of debts, ex- 
 cept, &c 4 
 
 nor receive from other stock corporations in ex- 
 change, &c. shares, &c. of such other corporations, 4 
 nor make loans, &c. exceeding twice and a half 
 
 the capital, 4, 36 
 
 nor make loans, &c. to directors exceeding one 
 
 third of capital, 4, 5 
 
 See Banking Corporations, Chancellor, Moneyed 
 Corporations, Insolvent Corporations, Injunc- 
 tion. 
 REPORTS to Superintendent of Bank Department, . . 183 
 
 to be made quarterly, 138,183 
 
 New York city banks to publish in addition weekly 
 
 reports, 195, 196 
 
 what such reports shall contain 147, 148 
 
 penalty if not made, 149 
 
 to be published by superintendent, . . . . 139 
 
 RESTRAINING ACT of 1782 (obsolete) 283 
 
 of 1804 (obsolete), 234 
 
 of 1813 (obsolete) 236 
 
 of 1818 (obsolete) 237 
 
 RESTRAINING ACT OP 1880 (Revised Statutes), . . 39^9 
 
 Revisers' notes on 40, 41 n. 
 
 §6 in part repealed, Feb. 2, 1837, . . . 42,49n. 
 this repealing act not to apply to foreign corpora- 
 tions, . 49, 60 n. 
 
 corporations, unless expressly authorized by law, 
 forbidden to employ their effects for the purpose 
 
 of making discounts, &c., § 3, . . . . 41 
 
 or to keep any office for the purpose of receiving 
 
 deposits, &c., § 6, 42 
 
 or for the purpose of issuing evidences of debt, 
 
 &c., §6, 42 
 
 forbidden to issue notes, &c., on loan, or for cir- 
 culation as money, § 6, 42 n. 
 
INDEX. 
 
 357 
 
 llESTRAINING ACT— continued. 
 
 penalties for violations of this act, §§ 2, 4, 7, 9, 11 
 decisions of the courts on restraining acts, . 42 
 SAFETY-FUND ACT of April 2, 1829, . 
 
 banks whose charters had not expired in January, 
 
 1855 
 
 SECURITIES GIVEN by a moneyed corporation when in- 
 solvent, with intent to prefer, invalid, 
 in contemplation of insolvency, with like intent, 
 
 invalid, 
 
 See Conveyances, Transfers, Liens Created, Pay 
 
 ments. 
 given in violation of § 2 or § 3 of Restraining Act, 
 
 void, 
 
 SCOTTISH BANK, estabUshed in 1769, failed in 1771, his- 
 tory of, by Adam Smith, 
 
 See Bills of Exchange. 
 SHARES, HYPOTHECATED, when to be sold, . 
 
 of their own stock, moneyed corporations are prohib- 
 ited from purchasing, except with surplus profits, . 
 SANDPORD, VICE-CHANCELLOR, decision of, on §8, for- 
 bidding certain transfers of corporate effects. 
 See Gillet vs. Phillips, p, 323. 
 SPECIE PAYMENTS, suspension of, in May 1837, . 
 sanctioned by the legislature^ one year, . 
 the constitution of 1846 takes from the legislature 
 
 ' this power, 
 
 STATUTE REGULATIONS OF 1827, 
 
 these regulations took effect Jan. 1, 1828, . 
 main objects sought to be obtained by their enact- 
 ment, ........ 
 
 two systems of law, applicable to moneyed cor- 
 porations, in force Jan. 1, 1828, 
 STOCKS of the State of New York only, to be received for 
 circulating notes, .... 113, 142, 153, 
 
 ovTned by the State, exempt from taxation, 
 23* 
 
 Page, 
 
 41-49 
 
 n., 48 n, 
 
 29-39 
 
 295,296 
 
 8,9 
 
 8,9 
 
 41,42 
 
 303 n. 
 
 6 
 
 4 
 
 7n. 
 
 xlix n. 
 
 xlixn. 
 
 265 
 
 1-29 
 
 xxxviii 
 
 xl 
 
 154, 170 
 231 
 
358 
 
 INDEX. 
 
 Page. 
 STOCKHOLDERS of moneyed corporations, statutory regula- 
 tions to secure, 1-17 
 
 liable for certain debts 155 
 
 may apply to a Court of Chancery to prevent un- 
 authorized use of corporate funds, . . 55, 56 n. 59 
 Act to enforce responsibility of, . . . . 155-170 
 corporations " issuing ianJi notes, &e." are liable 
 
 for debts contracted after January 1, 1850, . 155 
 
 the term " stockholder " defined, . . . 155 
 
 how exonerated from such liability, . . . 156 
 
 when assignee of stock is liable, . . . 157 
 
 names to be kept in a book, .... 157 
 
 such book to be always open for inspection, . 157 
 
 penalty for neglect, 157 
 
 the book to be presumptive evidence, . . 158 
 
 when plaintiff may enter judgment, . . . 158 
 
 insolvency of corporation when to be declared, 159 
 
 when application for its dissolution shall be 
 
 made, 159 
 
 duty of judge on hearing the parties, . . 159, 160 
 when an injunction shall issue, . . . 160 
 
 stockholders may apply for dissolution of the 
 
 corporation, 160, 161 
 
 powers and duties ofReceivers under this Act, 161-163, 205 
 
 162 
 162 
 163 
 163 
 168 
 164 
 165 
 165 
 166 
 166 
 265 
 166, 167 
 
 securities when to be converted into cash, 
 dividend when to be made, 
 report as to unsatisfied debts to be made, 
 stockholders, list of, to be reported, 
 report to be referred to a Referee 
 hearing before Referee, how to be had, 
 apportionment, when to be reported, 
 report of Referee to be filed, 
 money how to be divided, 
 necessary expenses to be allowed, . 
 bill-holders to have a preference, 
 dividends not to be delayed beyond one year. 
 
INDEX 
 
 359 
 
 STOCKHOLDERS— continued. 
 
 surplus assets how disposed of, ... 
 limitation and effect of appeals, 
 appeals by Receivers, &c., .... 
 new apportionment, when to be made, 
 securities taken under this act, where to be filed, 
 rights of creditors neglecting to present their 
 
 demands, &c 
 
 certain issues of fact or of law to have a 
 
 preference, 
 
 SUPERINTENDENT of Bank Department, 
 
 to have the powers of the Comptroller, 
 to be subject to same penalties, &c. 
 to hold in custody all bank plates, 
 subject to a fine of not less than $5000, and to 
 imprisonment for not less than five years, for a 
 violation of § 14 of the general banking law, 91, 
 See Bank Department. 
 SYSTEMS OE BANKING in the State of New York, 
 
 See Banking Systems. 
 SUSPENSION of specie payments, the legislature no power 
 to pass a law to sanction, .... 
 
 See Specie Payments. 
 TAXES on moneyed corporations, 
 how stated and collected, . 
 
 duty of supervisors 
 
 duty of collector, .... 
 to be paid out of corporate funds, 
 proceedings, if taxes cannot be collected, 
 when to be reported to State Comptroller, 
 duty of Comptroller in such cases, 
 duty of Attorney General, . 
 powers of Chancellor, 
 TIME PAPER, issue of, by banks, prohibited, 
 
 except bills of exchange on foreign countries. 
 See Post Notes, Fictitious Bills, Interest 
 
 Pago. 
 
 167 
 167, 168 
 168 
 169 
 169 
 
 169 
 
 169 
 
 180 
 180 
 181 
 
 183, 183 
 
 265 
 
 150, 224 
 228 
 228 
 228 
 228 
 229 
 229 
 229 
 229 
 229 
 38, 114 
 174 
 
360 mDEX. 
 
 Page. 
 TRADING by banks, except ia bullion, &c. prohibited, 
 
 ix, xi, xvi, xlv, 83 n. 
 TKAFFICKING by banks in State stocks illegal, . . . 83 n. 
 
 See Trading. 
 TRANSFERS of corporate effiects in certain cases prohib- 
 ited, . 6, 7, 8 
 
 See Conveyance, Payment, Assignment, Lien 
 
 Created, 
 of corporate bonds or stock, unauthorized, Act for 
 
 the punishment of, 207, 208 
 
 TRIALS (^Conspiracy), history of, xxix 
 
 UNAUTHORIZED BANKING prohibited, : . . . 39-49 
 UNCLAIMED DIVIDENDS and deposits, Act in relation to, 173 
 
 USURY, an Act to prevent, ..;.... 262, 263 
 all bills, notes, &c. whereby more than 7 per cent, ia 
 
 reserved, shall be void, 260, 262 
 
 the defendant in an action may examine the plaintiff 
 
 as a witness to prove the usury, .... 262 
 
 offenders against this act may be compelled to answer 
 
 any bill exhibited against them 263 
 
 upon bills for relief, not necessary for plaintiff to pay, 
 
 or to offer to pay, interest or principal, . . . 262 
 
 nor shall the court require the payment, or deposit, 
 of principal sum, &c., as a condition of granting 
 
 relief, 262,263 
 
 power of the court to declare securities void, and to 
 
 enjoin any prosecution thereon, . . . . 263 
 
 persons violating this act to be deemed guilty of a 
 
 misdemeanor, ...:.... 263 
 
 upon conviction, to be punished by fine, not exceeding 
 $1000, or imprisonment not exceeding 6 months, or 
 
 both, 263 
 
 punishment for false swearing by plaintiffs examined 
 
 as witnesses, ........ 263 
 
 corporations prohibited (April 6th, 1850) from there- 
 after interposing the defence of usury in any action, 264 
 
INDEX 361 
 
 Pago. 
 
 USURY— continued. 
 
 the term corporatfon, as used in the Act of April 6th, 
 1850, defined to include associations and joint-stock 
 
 companies, &c 264 
 
 VAN BUREN'S (Governor) views on banks and banking, 
 
 1829, xli, xliii 
 
 VOLUNTARY DISSOLUTION of corporations, . . . 64-75 
 See Dissolution (Voluntary) of Corporations. 
 
INDEX 
 
 PRINCIPAL MATTERS. 
 
 ABATEMENT of suits by or against corporations, act to 
 
 prevent 330 
 
 ACT of 1837, entitled " Of moneyed corporations," 1-17 
 
 of 1837, entitled " Of general powers, &c., of corpora- 
 tions," 34-39 
 
 of 1839, called the " Safety Fund Act," 39-39 
 
 of 1830, caUed the " Kestraining Act," 39-50 
 
 of 1830, proceedings against corporations in equity. . . 50-75 
 of 1830, proceedings against corporations in courts of 
 
 law 340-347 
 
 of 1838, called the General Banidng Law 81, 311 
 
 of 1840, declaring the issue of certain bills or notes by 
 
 banking corporations, &c., to be a misdemeanor 114, 174 
 
 ADJUDICATIONS, digest of, relating to the General Bank 
 
 Act, &c 397-335 
 
 AGENTS to examine banking corporations, how appointed, 
 
 149, 150, 183, 300-303 
 
 powers and duties of, and expenses, how paid 150, 300, 301 
 
 for redemption of circulating notes, how appointed, 
 
 109-113, 186-191 
 to examine securities with banking department, how 
 
 appointed 308(Z 
 
 to witness destruction of canceled notes, how ap- 
 pointed 308/ 
 
 ASSESSMENT of taxes on banking corporations. .150, 334, 308*, 308ctf 
 
 See Taxes. 
 ASSIGNMENTS by moneyed corporations, in certain cases, 
 
 prohibited 6, 7, 8, SOu 
 
 made by, when insolvent, with intent to give a 
 
 preference, invalid in law 8, 9 n., 80c 
 
 See Conveyance, Transfer, Payment, Lien, Security. 
 
362 INDEX. 
 
 Page. 
 ASSOCIATIOlSfS under the general banking law, adjudged 
 
 to be " moneyed corporations," 96, 97 n., Ixi, Ixii 
 
 also to be bound and affected by all general 
 
 statutes relating to suoh corporations 96, 97 n., Lsii 
 
 to be banking corporations with limited powers. 97 n. 
 
 to have no power to traffic in state stocks 97 n., Ixiii 
 
 term defined to include individual bankers 174 
 
 See Banking Corporations. 
 
 BANES, Public, when first established vi 
 
 1153, Bank of Venice vi 
 
 1694, Bank of England vi 
 
 1695, Bank of Scotland vii 
 
 1781, Bank of North America vii 
 
 1783, Bank of Ireland vii 
 
 1791, Bank of the United States vii 
 
 1791, Bank of New York xiv 
 
 1803, Bank of France vii 
 
 Chartered by the State of New Torh — 
 
 ftom 1781 to 1839 284, 385 
 
 from 1839 to 1838. . , 386-389 
 
 organized under the general banking law from 1838 
 
 to August, 1855 389-394 
 
 history of New York legislation on the subject of 
 
 banks and bankings, from 1781 to 1838 vii to lix 
 
 BANKING, Origin of v 
 
 imauthorized by law, prohibited 39-49 
 
 See Restraining Acts. 
 BANKRUPTCIES of corporations. 
 
 See Fraudulent Bankruptcies. 
 BANKING CORPORATIONS, how organized under the 
 
 general banking law 91 
 
 definition of term, 308A 
 
 any number of persons may associate 91 
 
 to establish offices of discount, deposit, and cir- 
 culation 91 
 
 capital stock not to be less than $100,000 91, 308« 
 
 have no power to traffic in state stocks 97 n. 
 
 may become owner of stock of the United States, 
 
 or of the State of New York 308a! 
 
 such persons shall make a certificate 93 
 
 contents of such certificate 93, 93, 94 
 
 where such certificate shall be filed 94, 199 
 
 copies of such certificate may be used as evidence. 94 
 
INDEX. 363 
 Page. 
 
 BANKING CORPORATIONS— continued. 
 
 securities to be deposited with Comptroller to 
 the amount of $100,000 before commencing 
 
 business 91, 114 
 
 express powers of such corporations 83, 94, 95, 34 
 
 adjudged to be moneyed corporations 96, 97 n. 
 
 shares in, to be deemed personal property 96, 97 
 
 to be transferable, &c 96 
 
 no change to be made in articles to impair rights, 
 
 &c., of creditors 98 
 
 when change made, new certificate to be filed. . . 308« 
 power to increase capital may be reserved by the 
 
 articles 98 
 
 contracts by, how to be signed 98 
 
 suits, &c., how to be brought, &c 98 n., 135-137 
 
 actions against such corporations, how main- 
 tained 98n., 99, 135-137 
 
 shareholders not personally liable for debts of 
 
 such corporations 99, 100 
 
 except debts contracted after Jan. 1st, 1850. . . . 155 
 such corporations may hold real estate for certain 
 
 specified purposes, [See Real Estate,'] 100, 101 
 
 when chancellor may order an examination 101 
 
 diyidends, provisions as to 3, 3, 4, 104 
 
 if any part of capital withdrawn, no dividends to 
 
 be made until deficit be made good 104 
 
 no dividends to be made, except irom surplus 
 
 profits 80as 
 
 damages on protested " circulating notes," 105 n., 190 
 
 duties of president and cashier 105, 308c 
 
 power to remove president, &c., at pleasure 95 
 
 when banking corporations may relinquish busi- 
 ness 133 
 
 when deemed dissolved 80e 
 
 subject to taxation 150, 834 
 
 may te proceeded agamstfor the following causes — 
 for violations of provisions of the general 
 
 banking law 58, 104 
 
 for making dividends in certain cases 104 
 
 for violations of any other statute binding 
 
 upon them 58 
 
 for neglecting to make quarterly reports 140, 149 
 
 if insolvent, or unable to pay their debts 58, 59 n. 
 
364: INDEX. 
 
 Page. 
 BAJSTKING CORPORATIONS— continued. 
 
 if default be made in payment of any debt 
 
 or liability contracted aft&r Jan. 1, 1850. 155, 158, 159 
 if not " clearly solvent," the judge to make 
 an order declaring the corporation imol- 
 
 vent 159, 160 
 
 may reduce capital to not less than |100,000 .... 308t 
 shall give notice of such reduction to superin- 
 tendent 208f 
 
 duty of superintendent upon receipt of notice . . . 308J 
 
 certificate of reduction to be filed and notice to 
 
 be published 208a 
 
 such reduction not to afiect the liability of stock- 
 holders , 308m 
 
 two or more in same city may consolidate 208^^ 
 
 proceedings on such consolidation 208y 
 
 not to affect pending suits 308aa 
 
 nor lessen the liability of stockholders 308aa 
 
 Penalties imposed as follows — 
 
 for violating § 6 of the Restraining Act. ... 43 
 
 for violating §§ 8 and 10 of Restraining Act . . 47, 48, 49 
 for violating any of the provisions of the acts 
 
 concerning foreign lank notes 108, 195 
 
 for neglecting to redeem their circulating 
 
 notes 110 
 
 for issuing bills or notes in violation of the 
 
 Act of May 14th, 1840 114, 174 
 
 for neglecting to make quarterly reports, 
 
 140, 149, 183, 196 
 for neglecting to keep a book containing 
 
 names, &c., of shareholders 157, 308b 
 
 for a refusal to exhibit such book. 80, 157, 208w 
 
 for re-issuing circulating notes of incorpo- 
 rated banks after a certain time in certain 
 
 cases 197, 198 
 
 See Associations, Officers & Directors, Injunc- 
 tion, Receivers, Chancellor, Stockholders, 
 act to enforce responsibility of. Post 
 Notes. 
 BANK BILLS of foreign banks under $5, act prohibiting, 
 
 repealed 206 
 
 See Foreign Bank Notes, Circulating Notes, Post 
 Notes. 
 
INDEX. 365 
 
 Page. 
 BANK NOTES, Act of 1830 concerning 75 
 
 See § 31 General Banking Law, p. 105. 
 
 redemption of 109-113, 186-191 
 
 canceled, to be burnt in presence of Agent of 
 
 Bank 208/ 
 
 See Circulating Notes, Post Notes, Foreign Bank 
 Notes. 
 
 BANK DEPARTMENT, an act to establish: 178-185 
 
 an act in relation to 308p, 308s 
 
 an act to amend an act to organize 308a, 208p 
 
 charged with the execution of all laws relating 
 
 to banks 179 
 
 chief ofBcer, a superintendent 179 
 
 how appointed, term of office, &c 179 
 
 powers of superintendent 180 
 
 may receive deposit of money in place of 
 
 securities 308j 
 
 to give up securities upon such deposit. . . 308j 
 
 to advertise notice of redemption upon the 
 
 receipt of such deposit 308 j 
 
 at expiration of notice to give up balance 
 
 of money 308r 
 
 to hold in custody bank plates, &c 181 
 
 expenses of department, how paid 181, 183 
 
 § 14 of general banking law to apply to superin- 
 tendent 91, 183, 183 
 
 superintendent to fix the day for quarterly bank 
 
 reports 183, 308« 
 
 to destroy counterfeit bank notes and plates 308s 
 
 mortgages, how to be held by him 184 
 
 annual reports of superintendent 184 
 
 BANK OF ENGLAND prohibited from trading ixn., 83 n. 
 
 isme department separated from ianhing depart- 
 ment 84 n. 
 
 design of such separation 84 n. 
 
 issues of, secured by government debt liiin., 84n_ 
 
 See prohibitions against trading, in charters of the 
 banks of Scotland, Ireland, France, and of the 
 United States, pp. ixn., xiiin. 
 
 See Tradiag, Mercantile Traffic. 
 BANKING POWERS, first legislative specification of, in 
 
 1835 xxvii 
 
 not specified in early bank charters xvi 
 
366 INDEX. 
 
 Page. 
 BANKING POWERS— contiQued. 
 
 enumerated in the statute of 1837 26 
 
 in the Restraining Act, of 1830 40 n. 
 
 in Safety-Fund bank charters ; . . . . 95 n. 
 
 in the General Banking Law 94, 95 
 
 BANKING SYSTEMS of New York. 
 
 Jirst system from 1791 to 1839 xiy to xlui 
 
 charter of Bank of New York, 1791, is a model 
 
 of bank charters prior to 1835 xiv-xrii 
 
 leading features of bank charters prior to 1835. . xiv-xvii 
 these charters contained no specification of bank- 
 ing powers ; xyi 
 
 they authorized an issue of notes to tJtree times 
 
 the amount of capital : xxxvi 
 
 and required only a small part of the capital to 
 be actually paid in before issuing notes. 
 (See Bank Charters prior to 1839.) 
 from 1791 to 1835 the legislature relied upon pro- 
 hibitory clauses in each charter xvi 
 
 aU these contained a prohibition against trading 
 
 by banks xvi 
 
 Restraining Act of 1804 guaranteed to banks a 
 
 Monopoly xvii 
 
 Restraining Act of 1818 further guaranteed this 
 
 monopoly xix 
 
 main provisions of early bank charters derived 
 from charters of Bank of England and Bank of 
 
 the United States xx 
 
 banks chartered in New York from 1782 to 1839 . 284, 385 
 means employed to obtain ianlc charters in 1799, 
 
 1805, 1813, &c xxitoxxv 
 
 Spencer's report (1835) on certain insurance com- 
 panies exercising tanking powers by loaning 
 
 bonds, &c xxiv 
 
 Spencer's bill of 1835 to prevent fraudulent lanh- 
 
 ruptcies by corporations xxv 
 
 this was a statute ofhanhruptey applied to corpo- 
 rations xxvi 
 
 in 1835, the legislature for the first time specified 
 
 in bank charters, tanhmg powers xxvii 
 
 in 1836-7, certain insurance companies assumed 
 
 the exercise of banking powers xxviii to xxxv 
 
 in 1836-7, ofiicers in these insurance companies 
 
INDEX 367 
 
 Page. 
 BANKING SYSTEMS— continued. 
 
 were indicted xxix to xxxv 
 
 these criminal prosecutions were generally known 
 
 as the " conspiracy trials," xxix 
 
 " Life & Fire Bonds," adjudications upon xxx to xxxv 
 
 1837, Governor Clinton, in his message, recom- 
 mended further restrictions on banks ..... xxxv to xxxvii 
 
 1837, the legislature adopted a stringent code of 
 statute regulations to govern " moneyed corpo- 
 rations," which included inmirance companies 
 (§§ 51, 53, p. 33) xxxvii 
 
 this code prepared by Revisers familiar with the 
 
 disclosures made by the " conspiracy trials". . . xxxviii 
 
 main objects sought to be attained by this code 
 
 of 1837 xxxix to xl 
 
 See this code (Revised Statutes), pp. 1-38. 
 
 the code of 1837 contained onerous provisions in 
 
 relation to directors, &c 10-13 
 
 1839, Governor Van Buren, in his message, rec- 
 ommended a modification or repeal of some of 
 
 the restrictions in the code of 1837 xli to xliii 
 
 1839, the second, or safety-fund system xliii 
 
 leading features of this system xlv, xlvi 
 
 it created a " bank fund," xlvi 
 
 it established a board of Bank Commissioners. . . xlvi 
 
 it modified certain provisions of the code of 1837, 
 
 10-13, 36, 37 
 
 charters under it specified the banking powers 
 granted xlv, 95 
 
 and contaiaed a prohibition against trading by 
 
 banks xlv 
 
 banks under it were prohibited from issuing 
 notes, &o., on time xliv, 38 
 
 were also prohibited from exercising corporate 
 powers not expressly granted 35 
 
 were subject to iaspection by the Bank Commis- 
 sioners xW, 34 
 
 were prohibited from making loans, &c., exceed- 
 ing twice and a Jialf their capitals 36 
 
 were forbidden to have biUs in circulation ex- 
 ceeding twice their capitals 36 
 
 were forbidden to make loans until the wTwle 
 capital was paid in 38 
 
368 INDEX. 
 
 Page 
 BANKING SYSTEMS— contmued. 
 
 banks chartered under the safety-fond system 
 
 from 1839 to 1837 384, 385 
 
 how this system worked xlvi 
 
 1837, all the safety-fmid banks in the State sus- < 
 
 pended specie payments „ . xUx 
 
 this suspension sanctioned by the legislature for 
 
 oneyear xlixn. 
 
 But see Constitution of 1846, p. 365. 
 
 1837, restraining act so modified as to allow indi- 
 tiidv/ik to receive deposits, &c 49 n. 
 
 this repealing act not to apply to corporations, 
 foreign or domestic 49, 50 n. 
 
 remedies proposed, and theories advocated, by 
 
 McCullooh and others 1 to Ivi 
 
 1888, April 16th, a majority of bank delegates 
 from eighteen States resolved not to resume 
 specie payments before January, 1839 xlix, 1 
 
 1838, April 18th, the legislature passed the gene- 
 ral tanleing law 1, 81 
 
 1888, the third, or existing ianMng system : 
 
 distinctive principles of this system Ivii to lix 
 
 it separates the issue from the ianMng depart- 
 ment 83,83, 84n.,91n. 
 
 it requires ample security for aU bank issues, .... 365,81,83 
 
 it authorizes the issue of only a certain Mnd of 
 promissory notes 83 n. 
 
 it makes the issue of post notes a misdemeanor . . 114 
 
 tefore any notes are given out by the issue de- 
 partment, securities must be pledged for their 
 redemption 81,83 
 
 it authorizes any number of corporations to be 
 formed 91 
 
 it specifies the ianMng powers which such corpo- 
 rations may exercise 94,95 n. 
 
 it authorizes each corporation to fix for itself its 
 name, its capital, its location, and the period 
 of its corporate life Ix, 93, 93, 94 
 
 it requires an actual deposit of $100,000 in secu- 
 rities before commerwing banking business. . . . 91,114 
 
 banks imder this system subject to all general 
 laws relating to "moneyed corporations," &c.. 
 
 96, 97, n., Ix to Ixiii 
 
INDEX. 369 
 
 Page. 
 BACKING SYSTEMS— continued. 
 
 safety-ftmd and general-law systems contrasted. Ivii 
 
 banking corporations organized from 1838 to 1855 389-395 
 
 BILLS OF EXCHANGE, acts ia relation to 253-360 
 
 form a large part of the circulating medium 300, 801 n. 
 
 amount in circulation in Great Britain 801 n. 
 
 bankers' bills and mercantile bills, difference be- 
 tween 808 n. 
 
 fictitious bills, described by McCuUoch 303 n. 
 
 "drawing & re-drawing," described by Adam 
 
 Smith 301 n, 303, 303 
 
 "raising money by circulation," described by 
 
 Adam Smith 301 n, 303, 803 
 
 history of a Scottish Bank of 1769, by Adam 
 
 Smith 303n. 
 
 bills on time, or payable with interest, issues of, 
 
 by banking corporations, prohibited 38,114 
 
 imless drawn on foreign countries [Act 0/1850,] 174 
 
 damages on non-payment of bills 356, 357 
 
 on bills on certain Northern and Eastern States. 356 
 " " on certain Southern and Western States. 356 
 " " on other States and places on this Con- 
 tinent 356 
 
 on bills on any person or place in Europe 356, 357 
 
 damages to be in lieu of interest and charges . . . 357 
 
 when no reference to rate of exchamge shall be 
 
 made 357 
 
 otherwise when payable va. foreign aarreney 357 
 
 for non-acceptance of bills 357 
 
 by whom alone damages shall be recovered 357 
 
 BOARD OF DIRECTORS, quorum of 37, 308 bb 
 
 previous resolution of, necessary to authorize cer- 
 tain transfers 8 n. 
 
 See Gillet YS. PUllips, p. 838. See OflScers & Di- 
 rectors. 
 By-Laws regulating elections must be published . 80 d. 
 
 CHANXDELLOR shall home power — 
 
 to restrain any corporation from exercising a 
 
 franchise not granted to it 51 
 
 from doing business, not authorized by charter. . 51 
 
 to restrain individuals from exercising corporate 
 
 rights not granted to them 51 
 
 when such injunction may be issued 53, 58, 59 
 
3Y0 INDEX. 
 
 Page. 
 CHANCELLOE shall heme jvrisdiction. 
 
 over directora of coiTporations 53 
 
 to compel them to account for corporate funds . . S3 
 
 to decree payment of property wasted 53 
 
 , to suspend officers in cases of abuses 53 
 
 to remove officers for misconduct 53 
 
 to direct new elections , 53 
 
 to set aside alienations of property made contrary 
 
 to provisions of Txm 53 
 
 to set aside like alienations made for purposes 
 
 foreign, to lawfiil busiuess of the corporation. . 53 
 
 to restrain such threatened alienations 54 
 
 preceding powers how to be exercised 56 
 
 when corporate property inay be sequestered 57 
 
 upon final decree, how distribution shall be made 58 
 certain acts to be deemed a surrender of corpo- 
 rate rights, &c 58 
 
 certain omissions and acts to dissolve a corpora- 
 tion 58 
 
 if insolvent, or unable to pay its debtSj a corpo- 
 ration may be enjoined 58 
 
 it may be enjoined for violation of its charter. . . 58, 104 
 
 See also § 18 Safety Fund Act, p. 34. 
 
 or for a violation of any law binding upon it. . . 58 
 
 See § 18 Safety Fund Act, p. 34. 
 
 See Banking Corporations, Injunction, Insolvency. 
 
 CHANGE OF PLACE of business by banking corporation^. 92 n. 
 
 special acts authorizing xxv, 92 n. 
 
 See Individual Bankers. 
 CHAEITABLE INSTITUTIONS, dividends on stocks held 
 
 by , 331 
 
 Act in relation to 231 
 
 CHARTERS, reservation of power to repeal 37 
 
 of Bank of England 1694, prohibitions in is n. 
 
 of Bank of North America (1781, 1783,) what pro- 
 hibitions and restrictions in, were omitted ..... viii 
 inserted in the Pennsylvania charter of 1787 .... xi 
 of Bank of the United States 1791, prohibitions in xiv 
 
 of Bank of New York 1791, prohibitions in xvi n. 
 
 of Banks of France, Scotland, and Ireland, prohi- 
 bitions in ix n. 
 
 leading features and provisions in New York bank 
 
 charters, prior to 1825 xiv 
 
INDEX. 371 
 
 CHARTERS— continued. ^''^^' 
 
 how changed in 1835 xxvii 
 
 of safety-jftmd banks, how framed, from 1829 to 
 
 1838 xly 
 
 distinctions between safety-ftmd bank charters 
 
 and the provisions of the general law of 1838 .. Ivii 
 
 See Banking Systems. 
 
 CHARTERED BANKS, special provisions as to 171, 173 
 
 upon expiration of their charters may organize 
 
 under the general lam 171 
 
 registered notes may be issued to 154 
 
 may purchase certain stocks, &c 173 
 
 certain notes of, to be redeemed and destroyed. . 187 
 
 may hold certain real estate 173 
 
 See Banking Corporations. 
 CffiCULATma NOTES, issued by Bahkmg Corporations: 
 
 to be received from the Comptroller 81, 83 
 
 to be countersigned and registered by Comp- 
 troller 81, 83 
 
 to be payable on demand and without interest . . 38, 83, 83, 
 
 114, 174 
 
 to be payable at bank's place of business 83-85, 105 
 
 to be stamped on their face, "secured by pledge 
 
 of public stocks, &c" 88 
 
 to be signed by the president, or vice-president, 
 
 and cashier 98 
 
 " ample security" for their redemption in specie, 
 
 must be required by the legislature . . : 365 
 
 what securities may be taken 83, 88, 89, 308 q, 308 dd. 
 
 what mortgages may be taken 88, 153, 184 
 
 no mortgage exceeding $5,000 can be received. . 153, 184 
 what State stocks may be pledged. . . 83, 113, 143, 153, 154, 
 
 170, 171 
 
 pledged securities, when to be sold 89, 90 
 
 holders of biUs secured a preference 365 
 
 plates, dies, &c., to remain in custody of Comp- 
 troller or Superintendent 90, 138, 181 
 
 plates of failed banks to be destroyed by super- 
 intendent 308 f. 
 
 counterfeit bank-note plates to be destroyed 208 s. 
 
 penalty on Comptroller for violating § 14 of the 
 
 geimral law 91, 183, 188 
 
 issue of notes, payable on time, prohibited 38, 114 
 
372 INDEX. 
 
 Page. 
 CIRCULATmG NOTES— continued. 
 
 issue of notes or bills, payable witli interest, pro- 
 
 Hbited 38, 114 
 
 issue of bills, except foreign bills of exchange, for- 
 bidden 38, 114, 174 
 
 issue of notes or bills, by banking corporations not 
 
 specially authorized by law, prohibited — § 3 . . 35 
 
 See §§ 3, 6, of Restraining Act, pp. 41-44. 
 bills less than $1,000 to be payable alt the office of 
 
 the bank 75, 105 
 
 when to be deemed payable at the banking-house. 75,105 
 
 mutilated may be exchanged 115 
 
 less than |1 forbidden 44, 45 
 
 how demanded and protested 187-190 
 
 when interest may be recovered 187 
 
 when interest shall not be recovered 188 
 
 in what manner protested 188, 189 
 
 damages for non-payment of 190 
 
 aggregate amount in circulation, August, 1855 . . 394 
 
 when returned to the bank department for de- 
 struction must be burned in presence of agent. 308/ 
 
 redemption of. 308i 
 
 notice of redemption of 308i 
 
 lien of, when to cease 308r 
 
 See Post Notes, Bills of Exchange, Drawing and 
 Re-Drawing. 
 CLEABINa HOUSE in the city of New York, account of. 366-377 
 
 constitution of 378-383 
 
 names of Associated Banks 383, 383 
 
 See New York Clearing House. 
 CLINTON'S (Gov.) views on banks and banking, 1837. .xxxv to xxxviii 
 COLLECTION OF DEBTS against corporations. Act to 
 
 facilitate ^ 383 
 
 COMPTROLLER, powers and duties of, relative to securities 
 
 pledged for " circulating notes," , 81-91, 180 
 
 penalty on, for violating § 14 of the general banking 
 
 law 91, 183, 188 
 
 See Superintendent. 
 
 CONSOLIDATION of banking associations, act to provide 
 
 for 308a! 
 
 CONSPIRACY TRIALS of 1836 and 1837, history of, &c. . xxix 
 
 See Banking Systems. 
 
INDEX. 373 
 
 Page. 
 
 CONSTITUTION of 1821, pro-visions of, as to the creation 
 
 of corporations by the legislature 397 n. 
 
 of 1846, provisions of, as to corporations 264, 265 
 
 the term " corporation,'' defined by 264 
 
 corporations to be formed under general laws . . . 264 
 
 not to be created by special charter 264 
 
 the legislature shall have no power 
 to pass a special charter for banldng purposes. 265 
 
 nor to pass a law sanctioning a suspension of 
 
 specie payments • 265 
 
 fhe legislature shall provide 
 
 for the registry of aU bills or notes, put in 
 
 circulation as money 265 
 
 and shall require amvple seewrity for their 
 
 redemption in specie 265 
 
 stockholders shall be liable for certain debts. 265 
 
 bin holders to have a preference in cases of 
 
 insolvency 265 
 
 CONTEMPLATION OF INSOLVENCY, conveyances in, 
 
 by moneyed corporations invalid 8, 9, 80c 
 
 See Conveyances, Transfers, Insolvency. 
 CONTRACTS by banking corporations to be signed by the 
 
 president or vice-president, and cashier. 98 
 
 by a corporation unauthorized by its charter, void.52, 53, 54 n. 
 CONVETANCES by a moneyed corporation, when insolvent, 
 
 with intent to give a preference, invalid 8, 9, 80e 
 
 in contemplation of insolvency, with like intent, 
 
 invalid 8, 9, 80(J 
 
 See Brouwer v. Harbeck, p. 9 n. 
 unauthorized by a previous resolution of the board 
 
 of directors, forbidden in certain cases 7 
 
 See Oillet vs. Phillips, p. 323. 
 
 Blunt vs. Banna, p. 7 n. 
 
 for benefit of a corporation, must be directly to it 
 
 by name, except, &c 6 
 
 But see § 34, sub. 4, as to real estate, pp. 100, 101. 
 See Transfers, Lien Created, Security Given, Pay- 
 ment, Assignment, Real Estate. 
 CORPORATION, the term defined by the Constitution of 
 
 1846 265 
 
 by Bronson, J. 304, 305 
 
 by Marshall, C. J 305 
 
 by Kyd 305 
 
374 INDEX. 
 
 COEPORATION, the term defined— continued. ^*^°" 
 
 by Grant 3O5 
 
 distii^iction between corporations and partner- 
 
 sMps 306 
 
 " moneyed," defined by Revised Statutes 33 
 
 has such powers as are expressly granted 25 n. 
 
 and such incidental powers as aie twcessary to the 
 
 exercise of its express powers 35 
 
 the exercise by, of powers not granted prohibited. 35 
 shall not by construction of imphcation possess 
 
 imiMnff powers 36 
 
 forbidden, by the act of 1850, thereafter to inter- 
 pose the defense of usury 364 
 
 voluntary dissolution of 64-75, 308i 
 
 proceedings against, in equity. 50-64 
 
 proceedings against, in courts of law 340 
 
 foreign, proceedings against 343-353 
 
 not estopped from denying its power to make a 
 
 contract. .... 53 n. 
 
 forbidden to exercise banting powers 36 
 
 or to employ its effects for the purpose of 
 
 issuing notes, &c . 41 
 
 or to keep any office for the purpose of re- 
 ceiving deposits, &c 43 
 
 or for the purpose of issuing notes, &c 43, 48 n. 
 
 See Banking Corporations, Restraining Acts. 
 COUNTERFEIT bank notes or plates, to be destroyed by 
 
 the Superintendent of Bank Departrnent 308s 
 
 COUNTERSIGNED NOTES, aggregate amount in circula- 
 tion in August, 1855 394 
 
 See Circulating Notes. 
 CREDITORS of moneyed corporations, regulations to secure 
 
 the rights of 1-17 
 
 biU holders, in certain cases, to have a preference. 365 
 
 stockholders to be individually responsible, in 
 
 certain cases 365 
 
 directors to be individually responsible in certain 
 
 cases 80a 
 
 DAMAGES on protested circulating notes 190 
 
 on protested bills of exchange 356, 357 
 
 See Bills of Exchange. 
 
INDEX. 375 
 
 Page. 
 DEBTS of certain banking corporations, stockholders liable 
 
 for 155, 265 
 
 against corporations, an act to facilitate the collec- 
 tion of 233 
 
 DECISIONS on § 4 of the act of May 14th, 1840 114^132 n. 
 
 on § 1, General Statute (1 R. 8. 589) 2, 8, 320 
 
 on §§ 8, 9, General Statute (1 R. S. 591) 7, 8, 9 n., 323 
 
 on the restraining acts 43 n., 48 
 
 relative to the General Banking Law 297-359 
 
 relative to Receivers of corporations 57 n. 
 
 as to unauthorized contracts made by corporations. . . 51-55 n. . 
 
 as to proceedings against corporations, &o 74, 75 n. 
 
 DEFINITIONS of certain terms used in the Revised Statutes. 23, 24 
 
 term " moneyed corporation" defined 23 
 
 term " directors," 23 
 
 term " effects," 24 
 
 term " evidence of debt," 24 
 
 term " corporations," as used in the Act of April 
 6th, 1850, to prevent corporations from inters 
 
 posing the defense of usury 364 
 
 term " corporation," as used in the Constitution 
 
 of 1846 364 
 
 term " association," as used in the act of April 
 
 11th, 1849 174 
 
 term " stockholder," as used iu the act of April 
 
 5th, 1849 155 
 
 a corporation, definitions of, by jurists and others. .304, 305 n. 
 partnerships and corporations, distinction be- 
 tween 306 n. 
 
 See Corporation, Banking Corporations. 
 DIGEST OP LEADING DECISIONS relating to General 
 
 Bank Act 397-359 
 
 " DIRECTORS," as used in Revised Statutes, defined 33 
 
 as to election of. 17-23, md, 146 
 
 not less than five may constitute quorum 208J5 
 
 penalty on, for viQlating certain section of Re- 
 vised Statutes 10 
 
 penalty on, for piu-chasing notes of the corpora- 
 tion for less than amount due. 16, 80« 
 
 penalty on, for discoimting notes in certain cases. 16, 80« 
 
 penalty on, for violating § 3 of Restraining Act. 41 
 
 trustees of creditors in certain cases 28 
 
 individually responsible in certain cases 80a 
 
 shall make dividends from surplus profits only . . 80a 
 
3T6 IHDEX. 
 
 Page. 
 " DmECTORS"— continued. 
 
 shall not reduce the capital stock by declaring 
 
 dividends SOas 
 
 shall not receive note in payment of installment. 80a 
 
 personally liable in case of violation of above 
 
 provisions 80a; 
 
 action at law or equity against such directors, 
 
 not barred by the statute 80a 
 
 See Officers and Directors. 
 
 DISSOLUTION {Volunta/ry) of corporations 64-77, 3084 
 
 when directors may apply for dissolution 65 
 
 contents of application 66 
 
 order to show cause, when to be entered 66 
 
 when corporation to be dissolved 67, 80c 
 
 who may be appointed receivers 67, 68 
 
 rights, interest, and authority of such receivers. . 68 
 
 such Receivers to have all the power of trustees 
 
 of estates of insolvent debtors 68 
 
 certaiu sales, &c. declared void 69 
 
 debtors to account to Receivers 69 
 
 Receivers to have power to refer controversies.. 69 
 
 Receivers' commissions 70, 71, 134, 135 
 
 order of payment of debts 71 
 
 Receivers subject to control of Court of Chancery. 73 
 
 decrees and orders subject to appeal 74 
 
 certaiu corporations excepted 74 
 
 See Corporations, Receivers. 
 
 DISTRIBUTION of flmds by the ComptroUer 175-177 
 
 DIVIDBNDS by banking corporations, — 
 
 to be madefrom profits only 5, SOa 
 
 how profits are to be calculated. ^ 5 
 
 surplus profits, how ascertained 5 
 
 losses, how to be charged 5 
 
 how to be declared on stock owned by the State, 
 
 or literary, &c. iustitutions 381 
 
 not to be made if any part of capital has been 
 
 withdrawn 104 
 
 provision if capital is reduced, &c 140 
 
 if made in such a case, the Chancellor may order 
 
 their affairs to be closed 104 
 
 "DRAWING & RE-DRAWING" of bHls, described by 
 
 Adam Smith 301 n. 
 
 See BiUs of Exchange, Fictitious Bills. 
 
INDEX. 377 
 
 Page. 
 
 " EFFECTS," the term defined in Revised Statutes 34 
 
 ELECTIONS, power of Supreme Court to examine iato 80c 
 
 by-laws regarding, must be published SOd 
 
 inspectors shall require evidence of right to vote, 
 
 from transfer books sOd 
 
 Inspectors of, to take oath 80c? 
 
 if not held on day designated, must be held 
 
 within 60 days thereafter 80« 
 
 "EVIDENCE OF DEBT," the term defined in ReviLed 
 
 Statutes 34 
 
 EXERCISE of unauthorized banking powers prohibited . . 36 
 EXPRESS GRANT of banking powers necessary to their 
 
 exercise by a corporation 36 
 
 EXPRESS POWERS of banking corporations 94, 95 n. 
 
 of safety fund banks 94, 95 n. 
 
 See Banking Powers. 
 
 FICTITIOUS BILLS, description of, by M'Culloch 303 n. 
 
 are a device for obtaining loans 303, 308 n, 
 
 have no efiect in transferring or settling debts . . 303 n. 
 the system of drawing a/nd re-droMing is a mode 
 
 of borrowing money 803, 308 n. 
 
 fietiUoua UUs balance each other 308 n. 
 
 those drawn by London on Glasgow are exactly- 
 equal to those drawn by Glasgow on London. 803 n. 
 See Bills of Exchange, Drawing and Re-Drawing, 
 Raising Money by Circulation. 
 
 FOREIGN BANK NOTES, acts concerning 107-109, 193 
 
 See Bank Bills. 
 FOREIGN CORPORATIONS, 
 
 are vnthin the prohibitions of the Restraining 
 
 Act, §§ 3, 6 41, 43, 50n. 
 
 may prosecute suits, &c 340 
 
 upon giving security for costs 340 
 
 when they shall not maintain an action 340 
 
 attachments against 343, 348, 346, 347, 358 
 
 in what courts suits may be brought 353, 358 
 
 by whom suits may be prosecuted 353, 353 
 
 in what cases suits may be brought 353, 353 
 
 Act of May 14th, 1840, as to proceedings against. 345, 346 
 Act of April 11th, 1843, as to suits against. . ,347, 348, 349 
 
 Act of May 13th, 1845, as to suits against 349, 350 
 
 Act of Feb. 3lBt, 1848, as to suits against 351 
 
 Act of March 15th, 1849, as to remedies against 353 
 25 
 
378 INDEX. 
 
 FOREIGN CORPORATIONS— continued. 
 
 actions against, under the Code of Procedure. . . 353 
 FRAUDULENT BANKRUPTCIES of corporations, Act of 
 
 1835, to prevent f xxy 
 
 this was a statute of icmhruptcy applied to cor- 
 porations xxvi 
 
 MngTmh bankrupt laws did not extend to corpora- 
 tions xxri 
 
 provisions of the Act of 1835 re-enacted in Re- 
 vised Statutes xxvi n. 
 
 See Statute Regulations of 1837, pp. 1-38. 
 FRAUDULENT ISSUES of corporate bonds or stock de- 
 clared to be a felony 307, 308 
 
 GENERAL BANKING LAW, as originally passed (w«A 
 
 notes and refereneei) 81-107 
 
 as altered by subsequent legislation 311-333 
 
 GENERAL LIABILITIES of every corporation 34 
 
 PrivUeges of every corporation 34 
 
 Powers of every corporation , 34 
 
 INCORPORATED BANKS, Act as to withdrawal of their 
 > circulating notes after their special charters 
 
 have expired 197 
 
 their power to hold real estate 100, 173 
 
 INDIVIDUAL BANKER. 
 
 definition of term , 308A 
 
 must file a certificate stating residence 144 
 
 penalty for neglect 144 
 
 to deposit securities to the amount of |50,000 . . 143 
 to be banks of discount and deposit, as well as 
 
 of circulation 153 
 
 to transact business at place of residence specified 
 
 in the certificate 153 
 
 notice of change of residence to be filed 144 
 
 penalty for neglecting to make reports 143, 308« 
 
 in whose name business shall be conducted 143, 304 
 
 sale of banking business prohibited 304 
 
 sale of banking business prohibited, except to 
 
 partner 3089" 
 
 to be individually liable for circulating notes . . . 304 
 
 notes, how signed 304 
 
 notes to have the word " bank" added 308j? 
 
 to report names of persons interested with him . . 143 
 
 penalty for not making such report 143 
 
INDEX. 379 
 
 Page. 
 
 INDIVIDUAL BAIOKER— continued. 
 
 persons interested to file a certificate 203 
 
 persons interested to be jointly liable for debts . . 203 
 
 circulating notes to express individual liability. . 204 
 
 circulating notes of, to be payable on demand, 
 
 and -without interest 82-85, 114 
 
 subject to taxation 150 
 
 once in each year to examine securities deposited 
 
 ■with the superintendent 208(! 
 
 in case of his inability, must appoint agent to 
 
 make such examination 208d 
 
 shall make quarterly reports 208e 
 
 to appoint agent to witness burning of notes. . . . 308/ 
 
 See Banking Corporations. 
 INJUNCTIONS against moneyed corporations, — 
 
 may be issued to restrain any corporation from 
 
 exercising a franchise not granted 51 
 
 to restrain individuals from exercising corporate 
 
 rights not granted to them 51 
 
 ■when to be issued 52, 58, 59, 159, 160 
 
 to prevent illegal alienations of corporate property 54 
 
 to prevent directors from using corporate funds 
 
 for purposes unauthorized by the charter. .... 55 n. 
 
 in case of insolvency, to prevent ofllcers, &c. from 
 
 exercising corporate rights, &c 58, 159, 160 
 
 if corporation is unable to pay its debts. 58 
 
 to restrain proceedings at la^w against corpora- 
 tions in certain cases 64 
 
 may be issued upon the application of sharehold- 
 ers in certain cases 55 n, 59, 160 
 
 See Chancellor, Banking Corporations, Insol- 
 vency. 
 INSOLVENCY of moneyed corporations, regulations to pre- 
 vent 1-17 
 
 object of these regulations, as stated by the Be- 
 
 visors xxxix, 9 n. 
 
 if insolvent, corporation may be enjoined 58 
 
 or if unable to pay its debts 58 
 
 or for violation of its charter 58, 104 
 
 conveyances by, ■when insolvent, ■with intent to 
 
 give a preference, invalid in la^w 8, 9, 80c 
 
 insolvency defined by AUm, J., in Broweer v. 
 Harbeck 9 n. 
 
380 INDEX. 
 
 Page. 
 INSOLVENCY of moneyed corporations — continued. 
 
 if not " clearly solvent," the judge shall, by an 
 
 order, declare a corporation to be insolvent . . 160 
 if. one year shall be deemed a surrender of the 
 
 franchise and a dissolution 80c 
 
 See Banking Corporations, Injunction, Chancel- 
 lor, Conveyances, Insolvent Corporations. 
 mSOLVENT CORPOEATIONS with banking powers, pro- 
 ceedings against - 58, 158-160 
 
 if insolvent, or unable to pay their debts 58 
 
 for violations of any provisions of their charters 58, 104 
 
 for violations of any other law binding upon them 58 
 insolvency defined by Allen, J., in Brouwer v. 
 
 Ha/rbeck 9 n. 
 
 wpon whose wppVxatJum iriffWMtion may mvs. . 56, 59, 158-170 
 for what cmmei injvmction may issue. .58, 59, 104, 140, 149, 
 
 155, 156, 159, 160 
 
 a Receiver may be appointed 59, 158-170 
 
 powers and duties of Receivers 60, 68, 161-170 
 
 bill holders to have a preference 365 
 
 directors, &c., may be made parties in certain 
 
 cases 61 
 
 jurisdiction over directors, &c : 61 
 
 proceedings on bills filed by creditors 61 
 
 decree when corporation is insolvent 62 
 
 distribution of corporate property 63 
 
 liabilities of stockholders 63 
 
 liabilities of directors, how enforced 63 
 
 discovery by a corporation may be compelled. ... 63 
 
 when officers compelled to answer 63 
 
 answers of officers, how far evidence 63 
 
 answers, in what cases only, compelled 63 
 
 persons compelled to answer exonerated from 
 
 prosecution, &c 63 
 
 when proceedings at law shall be stayed 64 
 
 certain corporations excepted, &c 64 
 
 See Banking Corporations, Injunction, Chancel- 
 lor. 
 
 INSPECTORS of election of directors, how chosen 18 
 
 power to supply vacancies 18 
 
 officers not to be inspectors 18 
 
 oath bf inspectors 19, 80(? 
 
 qualification of voters 19, 80c?, SOe 
 
INDEX. 381 
 
 Page. 
 
 INSPECTOBS of election of directors— continued. 
 
 form of oath to be administered 19 
 
 when votes shall be rejected 19 
 
 not to vote on hypothecated stock 19 
 
 any person challenged shall take an oath, &c . . . . 19 
 
 aflBdavits to be annexed to proxies 30 
 
 certain by-laws invalid 30, SOd. 
 
 books of transfer to be kept 31, 80 
 
 married women may vote in certain cases 30 n. 
 
 penalty for refusing inspection of books 31, 80 
 
 remedy for persons aggrieved by an election. ... 31, 80c 
 
 duty of Supreme Court 33, 80e 
 
 INTEREST OF MONEY, an act in relation to 360-363 
 
 rate at which discounts may be made by banks 
 
 subject to the act of 1839 37 
 
 rate of interest allowed to incorporated banks by 
 
 the act of 1817 338 n. 
 
 notes or bills issued by banking corporations pay- 
 able with «»<«?■««* prohibited 38, 114 
 
 recovery of, on protested circulating notes, regu- 
 lated 187, 188 
 
 ^hen interest shall not be recovered on such notes. 188 
 
 for the purpose of calculating interest, a month 
 to be considered the twelfth part of a year, and 
 
 to consist of 30 days 361 
 
 interest for less than one month to be estimated 
 by the proportion which the number of days 
 
 shall bear to 30 261 
 
 how interest shall be calculated in certaia cases. 361 
 
 See Usury. 
 
 INTRODUCTION v 
 
 ISSUES by banking corporations — 
 
 under exclusive control of the comptroller or su- 
 perintendent 81-91, 136-139 
 
 must be payable ore drnnamd 38, 83, 114 
 
 must be payable wiSftoM* interest 38, 114, 174 
 
 must be payable at bank's place of business 83-85, 105 
 
 must be secured by government stocks, &c 83, 88, 365 
 
 must be stamped by the government 88 
 
 by Bank of England, secured by a debt of the 
 
 English government liii n., 84 n. 
 
 See Circulating Notes, Post Notes, BiUs of Ex- 
 change, Loans and Discounts, Fictitious Bills, 
 Banking Systems. 
 
382 INDEX. 
 
 Page. 
 ISSUES, unauthorized, of corporate bonds, &c., declared to 
 
 be a felony 207, 208 
 
 JUDGMENT SUFFERED by a moneyed corporation when 
 insolvent, with intent to give a preference, in- 
 valid 8, 9 
 
 may be recovered by Receiver of banking asso- 
 ciation against a non-resident stockholder 308«e 
 
 such judgment may be sold by receiver ^08gg 
 
 upon docketing, shall be a lien on real estate. .. 208^^ 
 See Conveyances, Transfers, Payments, Lien Cre- 
 ated. 
 
 HOLIDATS, an act to designate 359 
 
 HUNT'S CASE, report and decision in 44 n. 
 
 LB ADES:G DECISIONS relating to the general banking law, 
 
 and the powers of corporations formed under it 297-359 
 
 LIABILITIES (general) of every corporation 24 
 
 certain liabilities, stockholders liable for 155 
 
 of trustees of expired banks, when to cease 208j 
 
 of stockholders not affected by consolidation. . . ZOSaa 
 LIENS CREATED by a moneyed corporation, when insolv- 
 ent, with intent to prefer, invalid 8, 9, 80c 
 
 in contemplation of insolvency, with like intent, 
 
 invalid 8, 9, 80c 
 
 See Conveyances, Transfers. 
 
 LIFE AND FIRE BONDS, for what purpose issued xxxi 
 
 form of these bonds xxxi, 43, 122 
 
 powers of Life and Fire Insurance Companies xxxi 
 
 adjudications upon xxxiii 
 
 LITERARY INSTITUTIONS, stocks held by, act in relation 
 
 to dividends on 231 
 
 LOANS, when to be called in 6 
 
 LOANS AND DISCOUNTS, limited by Revised Statutes to 
 
 three times the capital paid in 4 
 
 by the Safety-Fund Act, to twice and a half the 
 
 capital paidin 36 
 
 but this act required the whole capital to be ac- 
 tually paid in before any discounts, &c., could 
 
 be made 38 
 
 this act also limited the issue of notes to twice the 
 
 capital paid in. . . ► 36 
 
 by charters before 1829, debts of banks, over de- 
 posits, limited to three times capital in. 
 
INDEX. 383 
 
 LOANS AND DISCOUNTS— continued. 
 
 See Clinton's message, 1837, p. xxxvi. 
 Charters prior to 1839, required only a small per- 
 centage on capital to be paid in before issuing 
 notes, &c. See Charters before 1839. 
 general banking law, as amended, requires an ag- 
 gregate capital of $100,000, and a deposit -with 
 Comptroller of $100,000 of securities before 
 
 conunendng banking business 91, 114 
 
 but the general law only authorizes secured and 
 
 coimtersigned notes to be loaned 83, 88 
 
 LOSSES, how to be computed S, 6 
 
 MANHATTAN COMPANY, how its charter was obtained 
 
 in 1799 xxi, xxii 
 
 MERCANTILE TRAFFIC by Bank of England, forbidden, 
 
 ix n. — xlviu n. 
 
 this bank an engine of state xlviii 
 
 it conducts the banking business of the British 
 
 Government xlvii^ 
 
 See Trading, Prohibition, Charters. 
 McCULLOCH, doctrines advocated by, with respect to secu- 
 rity for bank issues li to liii 
 
 "MONEYED CORPORATION," the term defined in the Re- 
 vised Statutes 33 
 
 shall not be interested in notarial fees 77 
 
 nor in premiums on certain drafts 77 
 
 nor place moneys in the hands of any one for the 
 
 purpose of discounting, &c 78 
 
 See Corporations, Banking Corporations, Insolv- 
 ent Corporations, Chancellor. 
 MORTGAGES, for a greater amount each than $5,000, can- 
 not be received by Comptroller 153, 184 
 
 See Circulating Notes. 
 NATIONAL BANKS of the United States of 1791 and 1816— 
 
 forbidden to trade in anything, except bullion, &c. xiv 
 
 mercantile traffic by banks condemned xlviii 
 
 NEW YORK CLEARESTG-HOUSE, account of 366-367 
 
 average amount of daily exchanges 376 
 
 mode in which these exchanges are made 370-375 
 
 results accomplished by this system of exchanges . 375 
 
 some of the advantages of this system 375 
 
 it checks violent expansions and contractions of 
 
 loans ; 375 
 
 it compels banks to keep a larger specie basis. . . 375 
 
384 INDEX. 
 
 Page. 
 NEW YORK CLEARING-HOU^E— continued. 
 
 Constitution of the Clearing-House 278 
 
 names of associated banks 383, 383 
 
 NOTES, issue of, by banking corporations, payable on time, 
 
 or payable wiift interest, prohibited 38, 114, 174 
 
 given in violation of §§ 1, 3, 3 of Restraining Act, 
 
 void 41, 43 
 
 for less than one dollar, prohibited 16, 44, 45 
 
 See Bills, Post Notes, Foreign Bank Notes, Circu- 
 lating Notes, BiUa of Exchange, Fictitious Bills. 
 OFFICERS AJSD DIRECTORS of moneyed corpora,tions, 
 penalties on — 
 |br violating certain sections of the Revised Sta- 
 tutes 10 
 
 for purchasing notes, &c., of such corporations, 
 
 for less than amoimt due 16, 80s 
 
 for discounting notes refused by directors 16, 17, 80« 
 
 for refusing to exhibit transfer books 31 
 
 for violations of § 3 and § 6 of the Restraining 
 
 Act 41, 43, 49 
 
 for, issuing or circulating notes, &c., ,in violation 
 
 of § 4 of the Act of May 14, 1848 114 
 
 for making false statements, or false entries in the 
 
 books of such corporations 36 
 
 for refusing to exhibit the book containing the 
 
 names, &c., of stockholders 157 
 
 . for willfully signing, with intent to issue, false 
 
 certificates of shares, &c 307, 208 
 
 for making dividends except from sm-plus profits 80a 
 
 for reducing capital stock without consent of the 
 
 legislature 80o 
 
 for receiving or discounting a note in payment of 
 
 installment on stock 80a 
 
 may be decreed to pay over to a Receiver corpo- 
 rate funds misapplied, or improperly disposed 
 
 of 10, 233 
 
 PAYMENTS by a moneyed corporation when insolvent, 
 
 with intent to prefer, invalid 8, 9 
 
 in contemplation of insolvency, with like intent, 
 
 invalid 8, 9 
 
 See Conveyances, Transfers. 
 PARTNERSHIPS AND CORPORATIONS, distinction be- 
 tween 306 n. 
 
INDEX. 385 
 
 Page. 
 
 PLACE where the operations of discount, &c., are to be car- 
 ried on, to be specified in the Articles of Associa- 
 tion (see p. xxt) 93 n. 
 
 See Individual Banker, Change of Place of Business. 
 PENALTY on every person and every corporation violating 
 or assmtinff to the violation of § 6 of the Re- 
 straining Act 43, 44 
 
 on officers violating § 4 of the Act of May 14, 
 
 1840.... 114 
 
 for circulating bills less than one doUar 47 
 
 for circulating notes, &c., payable otherwise than 
 
 in lavpful money of the United States 48 
 
 for neglect to present notes for redemption 308o 
 
 for making dividends, except from surplus profits 80a 
 for reducing the capital stock without the con- 
 sent of the legislature SOa 
 
 for receiving or discounting a note in payment of 
 
 installment on stock 80a 
 
 See Officers and Directors. 
 PLATES of Notes of Insolvent Banks to be destroyed by su- 
 perintendent 308 
 
 POST BILLS, issue of, by banking corporations, prohibited, 
 
 except, &c 38, 114, 174 
 
 See Bills of Exchange, Fictitious BiUs, Post Notes, 
 Circulating Notes. 
 POST NOTES, &c., issue of, by banking corporations or by 
 
 individual bankers, prohibited 88, 114, 174 
 
 decisions as to the issue of 26 n., 43-45 n., 116, 117 n. 
 
 forms of, adjvMcated v/pon Try the cowrU, 
 
 in AtPy. Qen. v. Life d> Fire Ins. Oo 43, 133, xxxii 
 
 in iV. r. Ufe Ins. & Trust Go. v. Be^ 36 n. 
 
 in EwnVs Case 44, 45 n. 
 
 in SaffordY. Wyckoff 118 n. 
 
 in Banh of GMllicothe v. Dodge 118 n. 
 
 in Smith & Wwmer v. Strong 119 n. 
 
 in Swift V. Beers 119 n. 
 
 in LeoAiitt v. Palmer 130 n. 
 
 in Bank Gomnirs v. St. Lamrence Bank. 130 n. 
 
 in Taknage v. Pdl 131 n. 
 
 in Leaaitt v. Tates 131 n. 
 
 in Southern Loan Go. v. Morris 307 n. 
 
 in Miller v. Austin 307 n. 
 
 POWERS (general) of every corporation 34, 35 
 
 See Banking Powers. 
 
386 INDEX. 
 
 Page. 
 PREFERENCES given by moneyed corporations, when in- 
 solvent, &c., invalid 8, 9, SOc 
 
 See Conveyances, Transfers. 
 PRINCrPLES ADJUDGED by the highest court in the State 
 
 in reference to the general bank law, &c Ix to Ixiii 
 
 PRIVILEGES (general) of every corporation 24, 35 
 
 PROCEEDINGS against corporations in Equity 50, 65 
 
 at Lww 340-347 
 
 See Banking Corporations, Chancellor, Injunction. 
 PROHIBITION against trading, in all bank charters prior 
 
 to 1835 vii-xvii, 83 n. 
 
 omitted mflrst Pennsylvania charter of the Bank 
 
 of North America viii 
 
 inserted in the second charter xi n, 
 
 inserted in the charters of the two national Banks 
 
 of the United States xiv n. 
 
 inserted in charters of Banks of England, Prance, 
 
 Scotland, and Ireland ix n. 
 
 against the issue of post notes 38, 114, 174 
 
 against the exercise, by corporations, of powers 
 
 not expressly given, &c 35 
 
 against the transfers of corporate effects, in cer- 
 tain cases 6, 7) 8 
 
 See Circulating Notes, Post Notes, Conveyances, 
 Chancellor. 
 
 PROFITS, how calculated, preparatory to a dividend 5 
 
 surplus, how ascertained 5 
 
 PROMISSORY NOTES, Acts in relation to 258-260 
 
 See Circulating Notes. 
 PROVISIONS of Title H. chap. 18, 1 R. 8. 588, apply to 
 evei7 moneyed coiporation created after Jan- 
 uary, 1838 33 
 
 PURCHASERS at Receivers' sales, act in relation to 144 
 
 QUORUM of a Board of Directors 27, 208JJ 
 
 REAL ESTATE, in what cases banking corporations can ac- 
 quire and hold the same 100, 101 n. 
 
 conveyances of real estate to be made to the pres- 
 ident, or other officer indicated in the articles 100, 101 
 But see ^7 of the general stabute, p. 6. See Incor- 
 porated Banks. 
 "RAISING MONEY BY CIRCULATION," as described by 
 
 Adam Smith 801 n. 
 
 See BiUs of Exchange, Fictitious Bills, Drawing 
 and Re-Drawing. 
 
INDEX. 387 
 
 Page. 
 RECEIVERS of moneyed corporations, — 
 
 their powers and duties, 59, 60, 68, 69, 161-170, 204, 333, 
 
 333, 308«e, 308jf, 208gg 
 
 subject to OTder of Chancellor 73, 135 
 
 power to refer controversies 69 
 
 may hold real estate 145 
 
 may sue in their own names 145 
 
 duties as to the allowance and disallowance of 
 
 claims against the fiind 57 n., 60 n. 
 
 represent the rights of creditors and stockhold- 
 ers 57, 68 n. 
 
 may repudiate illegal transfers, &c., of corporate 
 
 effects 57 n. 
 
 suits commenced by a Receiver not abated by his 
 
 death or removal 330 
 
 their powers and duties under the Acts of April 
 
 5th, 1849, and March 15th, 1855 161, 305 
 
 See Act of April 36th, 1833, pp. 380, 331. 
 See Act of Mwrck 19ffi, 1852, pp. 333, 333. 
 
 See Act ofM(M/2d, 1863 208«« 
 
 See §§ 4 and 5, Act April 11th, 1859 308p 
 
 See Insolvent Corporations, Chancellor, Banking 
 Corporations, Injunction. 
 
 REDEMPTION of notes, at least once in each week 308™ 
 
 REDUCTION of capital of banks, act to authorize 308« 
 
 REGISTERED NOTES may be issued in lieu of unregistered 
 
 notes 154 
 
 REGULATIONS of 1827 (Revised Statutes),— 
 
 to prevent insolvency of moneyed corporations. . 1-17 
 such corporations shall not make dividends, ex- 
 cept from surplus profits 3, 80* 
 
 nor pay any part of capital to stockholders 3, 80a 
 
 nor reduce capital without consent of legislature 3, 80a 
 nor discount notes in payment of installments on 
 
 stock 3, 80a 
 
 nor receive notes to enable stockholders to with- 
 draw moneys paid for stock 4, 80a 
 
 not apply moneys, except surplus profits, to pur- 
 chase shares of its own stock 4 
 
 nor receive such shares in payment of debts, ex- 
 
 cept,^ &c 4 
 
 nor receive from other stock corporations in ex- 
 change, &c., shares, &c., of such other corpora- 
 tions 4 
 
388 INDEX. 
 
 Page. 
 EEQXJLATIONS— continued. 
 
 nor make loans, &c., exceeding twice and a half 
 
 the capital 4, 36 
 
 nor make loans, &c., to directora exceeding one- 
 third of capital 4, 5 
 
 See Banking Corporations, Chancellor, Moneyed 
 Corporations, Insolvent Corporations, Injunc- 
 tion. 
 
 REPORTS to Superintendent of Bank Department 183 
 
 to be made quarterly. 138, 183, 208e 
 
 New York city banks to publish in addition week- 
 ly reports , 195, 196 
 
 what such reports shall contain 147, 148 
 
 penalty if not made 149, 308e 
 
 to be published by superintendent 139 
 
 RESPONSIBILITY of stockholders in certain banking as- 
 sociations, 
 
 act to enforce 208« 
 
 RESTRAINING ACT of 1782 (obsolete) 233 
 
 of 1804 (obsolete) 384 
 
 of 1813 (obsolete) 336 
 
 of 1818 (obsolete) 337 
 
 RESTRAINING ACT OF 1830 (Revised Statutes) 39-49 
 
 Revisers' notes on 40, 41 n. 
 
 § 6 in part repealed, Feb. 3, 1887 42, 49 n. 
 
 this repealing act not to apply to foreign corpo- 
 rations 49, 50 n. 
 
 corporations, unless expressly authorized by law, 
 forbidden to employ their effects for the pur- 
 pose of making discounts, &c., §8 41 
 
 or to keep any office for the purpose of receiving 
 
 deposits, :&c., § 6 42 
 
 or for the purpose of issuing evidences of debt, 
 
 &c., §6 7 43 
 
 forbidden to issue notes, &c., on loan, or for cir- 
 culation as money, § 6 42 n. 
 
 penalties for violations of this act, §§ 3, 4, 7, 9, 1 1. 41-49 
 
 ;.^ecisions of the courts on restraining, acts 42 n., 48 n. 
 
 SAFETY-FUND ACT of April 3, 1839 39-39 
 
 banks whose charters had not expired in January, 
 
 1855 295, 396 
 
 SECURITIES GIVEN by a moneyed corporation when in- 
 solvent, with intent to prefer, invalid 8, 9, 80c 
 
INDEX. 389 
 
 SEOUEmES GIVEN— continued. ^''^^' 
 
 in contemplation of insolvency, with like intent, 
 
 invalid 8, 9, 80c 
 
 See Conveyances, Transfers, Liens Created, Pay- 
 ments, 
 given in violation of § 2 or § 3 of Restraining Act, 
 
 void 41,43 
 
 SCOTTISH BAJSfK, established in 1769, failed in 1771, his- 
 tory of, by Adam Smith 303 n. 
 
 See Bills of Exchange. 
 
 SHARES, HTPOTHBCATED, -when to be sold 6 
 
 of their own stock, moneyed corporations are pro- 
 hibited from purchasing, except with surplus 
 
 profits 4 
 
 SANDEORD, VICE-CHANCELLOR, decision of, on § 8, for- 
 bidding certain transfers of corporate effects 7 n. 
 
 See Grillet v. Phillips, p. 333. 
 
 SPECIE PAYMENTS, suspension of, in May, 1837 xlix n. 
 
 sanctioned by the legislature /w one yea/r xlix n. 
 
 the constitution of 1846 takes from the legislature 
 
 this power 365 
 
 STATE TREASURER, or his deputy, to countersign trans- 
 fer of security. 
 
 for circulating notes 3085 
 
 shall enter in a book, in his office, particulars of 
 
 transfer 308& 
 
 shall report same annually 308J 
 
 salary of, for such service 2086 
 
 STATUTE REGULATIONS OP 1837 1-39 
 
 these regulations took effect Jan. 1, 1828 xxxviii 
 
 main objects sought to be obtained by their enact- 
 ment xxxix 
 
 two systems of law, applicable to moneyed cor- 
 porations, in force Jan. 1, 1828 xl 
 
 STOCKS of the State of New York only, to be received for 
 
 circulating notes 113, 143, 153, 154, 170 
 
 owned by the State, exempt from taxation 331 
 
 of the United States may be held by banks 308a; 
 
 of the United States and of the State of New 
 York in certain proportions, to be received for 
 
 circulating notes 308(M 
 
 STOCKHOLDERS of moneyed corporations, statutoiy regu- 
 lations to secure 1-17 
 
 liable for certain debts 155 
 
390 INDEX. 
 
 P»ge. 
 
 STOCKHOLDERS— continued 
 
 liability not impaired by consolidation WSaa 
 
 may apply to a Court of Chancery to prevent un- 
 authorized use of corporate fimds 55, 56 n., 59 
 
 Act to enforce revpormtnUty of : 155-170 
 
 Act to amend an act to enforce the responsibility 
 
 of, &c 308b, 308«e 
 
 corporations " issuing banh TMtes, &c.," are liable 
 
 for debts contracted after January 1, 1850 155 
 
 the term " stockholder'' defined 155 
 
 how exonerated from such liability 156 
 
 when assignee of stock is liable 157 
 
 names and residences to be kept in a book 157, 308« 
 
 such book to be always open for inspection. .80, 157, 308w 
 
 penalty for neglect 80, 157, 308m 
 
 the book to be presumptive evidence 158, 308«> 
 
 when plaiintiff may enter judgment 158 
 
 insolvency of corporation when to be declared. . 159 
 
 when application for its' dissolution shall be made 159 
 
 duty of judge on hearing the parties 159, 160 
 
 when an injunction shall issue 160 
 
 stockholders may apply for dissolution of the 
 
 corporation : 160, 161 
 
 powers and duties of Receivers under this Act, 
 
 161-163, 305, ■imgg 
 
 securities when to be converted into cash 163 
 
 dividend when to be made 163 
 
 report as to unsatisfied debts to be made 163 
 
 stockholders, list of, to be reported 168 
 
 report to be referred to a Referee , 163 
 
 hearing before Referee, how to be had 164 
 
 apportionment, when to be reported 165 
 
 liability of non-resident at time of confirmation 
 
 of Referee's report 308«e 
 
 order of confirmation of report presumptive evi- 
 dence of liability of non-resident stockholder 308e« 
 Receiver may compromise with non-resident 
 
 stockholder SOSj^T 
 
 report of Referee to'be filed. 165 
 
 money, how to be divided. 166 
 
 necessary e:fpenBes to be allowed 166 
 
 bill-holders to have a preference 365 
 
 dividends not to be delayed beyond one year. . . 166, 167 
 surplus assets, how disposed of. 167 
 
INDEX. 391 
 
 STOCKHOLDERS— continued. ^^^^' 
 
 limitation and effect of appeals 167, 168 
 
 appeals by Receivers, &c 168 
 
 new apportionment, when to be made 169 
 
 securities taken under this act, where to be filed 169 
 rights of creditors neglecting to present their 
 
 demands, &c 169 
 
 certain issues of fact or of law to have a prefer- 
 ence •. 169 
 
 SUPERINTENDENT of Bank Department, 
 
 to have the powers of the Comptroller 180 
 
 to be subject to same penalties, &c 180 
 
 to hold in custody all bank plates 181 
 
 subject to a fine of not less than $5,000, and to 
 imprisonment for not less than five years, for a 
 violation of § 14 of the general banking law. 91, 183,183 
 
 to destroy counterfeit bank note plates 308s 
 
 salary of 208a 
 
 shall appoint a day for reports of banks to be 
 
 made 3086 
 
 on faUm-e of bank to report, shall appoint agent 
 
 to make examination 308« 
 
 shall pay to State Treasurer unclaimed deposits, 
 
 after six years 308»' 
 
 See Bank Department. 
 SYSTEMS OP BANKING in the State of New York. 
 
 See Banking Systems. 
 SUSPENSION of specie payments, the legislature no power 
 
 to pass a law to sanction 365 
 
 See Specie Payments. 
 
 TAXES on moneyed corporations 150, 334, 308/fc, 308cc 
 
 how stated or collected 308/i;, 338 
 
 duty of supervisors 338 
 
 duty of collector 338 
 
 to be paid out of corporate funds 338 
 
 proceedings, if taxes cannot be collected 339 
 
 when to be reported to State Comptroller 339 
 
 duty of Comptroller in such cases 308^, 339 
 
 duty of Attorney-General 308?, 339 
 
 powers of Chancellor 339 
 
 TIME PAPER, issue of, by banks, prohibited 38, 114 
 
 except bills of exchange on foreign countries. . . 174 
 See Post Notes, Fictitious Bills, Interest. 
 
392 INDEX. 
 
 Page. 
 TRADING- by banks, except in bullion, &c,, prohibited, 
 
 ix, xi, xvi, xlv, 83 n. 
 
 TRATFICKCNG by banks in State stocks illegal 83 n. 
 
 See Trading. 
 TRAJSTSFERS of corporate effects in certain cases prohib- 
 ited 6, 7, 8, 80c 
 
 See Conveyance, Payment, Assignment, Lien 
 Created, 
 of corporate bonds or stock, unauthorized, Act 
 
 for the punishment of 207, 208 
 
 TRIALS {Oompvraay), history of inHT 
 
 UNAUTHORIZED BANEUSTa prohibited 39-49 
 
 UNCLAIMED DIVIDENDS and deposits, Act in relation to 173 
 
 USURY, an Act to prevent 263, 363 
 
 all bills, notes, &c., whereby more than 7 per cent, is 
 
 reserved, shall be void 260, 263 
 
 the defendant in an action may examine the plaintiff 
 
 as a witness to prove the usury 262 
 
 offenders against this act may be compelled to answer 
 
 any bill exhibited against them 263 
 
 upon bills for relief, not necessary for plaintiff to pay, 
 
 or to offer to pay, interest or principal 363 
 
 nor shall the court require the payment, or deposit, 
 of principal sum, &c„ as a condition of granting 
 
 relief 363, 363 
 
 power of the court to declare securities void, and to 
 
 enjoin any prosecution thereon 363 
 
 persons violating this act to be deemed guilty of a 
 
 misdemeanor 363 
 
 upon conviction, to be punished by fine, not exceed- 
 ing $1,000, or imprisonment not exceeding 6 months, 
 
 or both 263 
 
 punishment for false swearing by plaintifls examined 
 
 as witnesses 363 
 
 corporations prohibited (April 6, 1850,) ffom there- 
 after interposing the defense of usury in any action 264 
 the term corporation, as used ia the Act of April 6, 
 1850, defined to include associations and joint-stock 
 
 companies, &c 264 
 
 VAN BUREN'S (Governor) views on banks and banking, 
 
 1839 xli, xliii 
 
 VOLUNTARY DISSOLUTION of corporations 64-75 
 
 •See Dissolution (Voluntary) of Corporations. 
 
NATIONAL BANE ACT OF 1864 
 
 An Act to provide a Irrational Currency, secured hy a pledge of 
 United States Bonds, and to provide for the circulation and 
 redemption thereof. Approved, June 3, 1864. 
 
 A BureoM of Cwrrency shall he estahlished. The Officers shall 
 ffive ionds y and shall not he interested in any National 
 Banks. 
 
 Be it enacted hy the Senate and House of Representatives of the United 
 States of America in Congress assembled, That there shall be established 
 in the Treasury Department a separate bureau, which shall be charged 
 with the execution of this and all other laws that may be passed by Con- 
 gress respecting the issue and regulation of a national currency secured 
 by United States bonds. The chief officer of the said bureau shall be 
 denominated the Comptroller of the Currency, and shall be under the 
 general direction of the Secretary of the Treasury. He shall be ap- 
 pointed by the President, on the recommendation of the Secretary of the 
 Treasury, by and with the advice and consent of the Senate, and shall 
 hold his office for the term of five years unless sooner removed by the 
 President, upon reasons to be communicated by him to the Senate ; he 
 shall receive an annual salary of five thousand dollars ; he shall have a 
 competent deputy, appointed by the Secretary, whose salary shall be 
 two thousand five hundred dollars, and who shall possess the power and 
 perform the duties attached by law to the office of Comptroller during a 
 vacancy in such office and during his absence or inability ; he shall em- 
 ploy, from time to tinie, the necessary clerks to discharge such duties as 
 he shall direct, which clerks shall be appointed and classified by the 
 Secretary of the Treasury in the manner now provided by law. Within 
 fifteen days from the time of notice of his appointment the Comptroller 
 shall take and subscribe the oath of office prescribed by the Constitution. 
 and laws of the United States; and he shall give to the United States a 
 bond in the penalty of one hundred thousand dollars, with not less than 
 two responsible sureties, to be approved by the Secretary of the Treas- 
 ury, conditioned' for the faithful discharge of the duties of his office. 
 The Deputy Comptroller so appointed shall also take the oath of office 
 prescribed by the Constitution and laws of the United States, and shall 
 give a like bond in the penalty of fifty thousand dollars. The Comp- 
 1 
 
2 
 
 troller and Deputy Comptroller shall not, either directly or indirectly, 
 he interested in any Association issuing national currency under the 
 provisions of this Act. 
 
 Seal of^ Office. Instruments under such seal evidence in Cowrts. 
 
 Sec. 2. And he it further enacted, That the Comptroller of the Cur- 
 rency, with the approval of the Secretary of the Treasury, shall devise a 
 seal, with suitable inscriptions, for his office, a description of which, with 
 a certificate of approval by the Secretary of the Treasury, shall be filed 
 in the office of the Secretary of State with an impression thereof, which 
 shall thereupon become the seal of office of the Comptroller of the Cur- 
 rency ,^and the same may be renewed when necessary. Every certificate, 
 assignment, and conveyance executed by the Comptroller, in pursuance 
 of any authority conferred on him by law, and sealed with his seal of 
 office, shall be received in evidence in all places and courts whatsoever ; 
 and all copies of papers in the office of the Comptroller, certified by him 
 and authenticated by the said seal, shall in all cases be evidence equally 
 and in like manner as the original. An impression of such seal directly 
 on the paper shall be as valid as if made on wax or wafer. 
 
 Booms, with fire-proof vaults, shall he assigned to the Comptroller. 
 
 Sec. 3. And be it further enacted, That there shall be assigned to 
 the Comptroller of the Currency by the Secretary of the Treasury suita- 
 ble rooms in the Treasury building for conducting the business of the 
 Currency Bureau, in which shall be safe and Secure fire-proof vaults, in 
 which it shall be the duty of the Comptroller to deposit and safely keep 
 all the plates, not necessarily in the possession of engravers or printers, 
 and other valuable things belonging to his department ; and the Comp- 
 troller shall from time to time furnish the necessary furniture, stationery, 
 fuel, lights, and other proper conveniences for the transaction of the 
 said business. 
 
 Definition of term " United States Bonds." 
 
 Sec. 4. And he it further enacted. That the term " United States 
 bonds," as used in this act, shall be construed to mean all registered 
 bonds now issued, or that may hereafter be issued, on the faith of the 
 United States by the Secretary of the Treasury in pursuance of law. 
 
 Associations for hanking purposes a/uthorised. Articles of asso- 
 ciation / what to contain. 
 
 Sec. 5. And he it further enacted, That Associations for carrying on 
 the business of banking may be formed by any number of persons, not 
 less in any case than five, who shall enter into articles of association, 
 which shall specify in general terms the object for which the Association 
 is formed, and may contain any other provisions, not inconsistent with 
 the provisions of this Act, which the Association may see fit to adopt 
 for the regulation of the business of the Association and the conduct of 
 
its affairs, which said articles shall be signed by the persons uniting to 
 form the Association, and a copy of them forwarded to the Comptroller 
 of the Currency, to be filed and preserved in his office. 
 
 Organisation certificate required ; what it shall specify. 
 
 Sec. 6. And be it further enacted, That the persons uniting to form 
 such an Association shall, under their hands, malie an organization cer- 
 tificate, which shall specify — 
 
 First. The name assumed by such Association, which name shall be 
 subject to the approval of the Comptroller. 
 
 Second. The place where its operations of discount and deposit are 
 to be carried on, designating the State, Territory, or District, and also 
 the particular county and city, town or village. 
 
 Third. The amount of its capital stock, and the number of shares 
 into which the same shall be divided. 
 
 Fourth. The names and places of residence of the shareholders, and 
 the number of shares held' by each of them. 
 
 Fifth. A declaration that said certificate is made to enable such per- 
 sons to avail themselves of the advantages of this Act. 
 
 The said certificate shall be acknowledged before a judge of some 
 court of record or a notary public, and such certificate, with the acknowl- 
 edgment thereof authenticated by the seal of such court or notary, shall 
 be transmitted to the Comptroller of the Currency, who shall record and 
 carefully preserve the same in his office. Copies of such certificate, duly 
 certified by the Comptroller, and authenticated by his seal of office, shall 
 be legal and sufficient evidence in all courts and places within the United 
 States, or the jurisdiction of the government thereof, of the existence of 
 such association, and of every other matter or thing which could be 
 proved by the production of the original certificate. 
 
 Capital of Associations in no place to he less than fifty thousand 
 
 dollars. 
 
 Sec. 7. And he it further enacted, That no Association shall be or- 
 ganized under this Act with a less capital than one hundred thousand 
 dollars, nor, in a city whose population exceeds fifty thousand persons, 
 with a less capital than two hundred thousand dollars : Provided, That 
 banks with a capital of not less than fifty thousand dollars may, with the 
 approval of the Secretary of the Treasury, be organized in any place the 
 population of which does not exceed six thousand inhabitants. 
 
 Corporate powers of Associations. 
 
 Skc. 8. And he it further enacted, That every Association, formed 
 pursuant to the provisions of this Act, shall, from the date of the execu- 
 tion of its organization certificate, be a body corporate, but shall transact 
 no business except such as may be incidental to its organization and 
 necessarily preliminary, until authorized by the Comptroller of the 
 Currency to commence the business of banking. Such Association shall 
 
have power to adopt a corporate seal, and shall have succession by the 
 name designated in its organization certificate, for the period of twenty 
 years from its organization, unless sooner dissolved according to the 
 provisions of its articles of association, or by the act of its shareholders 
 owning two-thirds of its stock, or unless the franchise shall be forfeited 
 by a violation of this Act ; by such name it may make contracts, sue 
 and be sued, complain and defend, in any court of law and equity, as 
 fully as natural persons ; it may elect or appoint directors, and by its 
 board of directors appoint a president, vice-president, cashier, and other 
 officers, define their duties, require bonds of them and fix the penalty 
 thereof, dismiss said officers or any of them at pleasure, and appoint 
 others to fill their places, and exercise under this act all such incidental 
 powers as shall be necessary to carry on the business of banking by 
 discounting and negotiating promissory notes, drafts, bills of exchange, 
 and other evidences of debt ; by receiving deposits ; by buying and 
 selling exchange, coin and bullion ; by loaning money on personal se- 
 curity ; by obtaining, issuing and circulating notes according to the 
 provisions of this Act ; and its board of directors shall also have power 
 to define and regulate by by-laws, not inconsistent with the provisions 
 of this Act, the manner in which its stock shall be transferred, its di- 
 rectors elected or appointed, its officers appointed, its property trans- 
 ferred, its general business conducted, and all the privileges granted by 
 this Act to Associations organized under it shall be exercised and 
 enjoyed; and its usual business shall be transacted at an office or 
 banking-house located in the place specified in its organization certificate. 
 
 Directors and their qualifications. 
 
 Sec. 9. And he it further enacted, That the affairs of every Associa- 
 tion shall be managed by not less than five directors, one of whom shall 
 be the president. Every director shall, during his whole term of service, 
 be a citizen of the United States ; and at least three-fourths of the di- 
 rectors shall have resided in the State, Territory or district in which 
 such Association is located one year next preceding their election as 
 directors, and be residents of the same during their continuance in office. 
 Each director shall own, in his own right, at least ten shares of the 
 capital stock of the Association of which he is a director. Each director, 
 when appointed or elected, shall take an oath that he will, so far as the 
 duty devolves on him, diligently and honestly administer the affiiirs of 
 such Association, and will not knowingly violate, or willingly permit to 
 be violated, any of the provisions of this Act, and that he is the bona fide 
 owner, in his own right, of the number of shares of stock required by 
 this Act, subscribed by him, or standing in his name on the books of the 
 Association, and that the same is not hypothecated, or in any way 
 pledged, as security for any loan or debt ; which oath, subscribed by 
 himself, and certified by the officer before whom it is taken, shall be 
 immediately transmitted to the Comptroller of the Currency, and by 
 him filed and prese"rved in his office. 
 
Directors to he elected annually, in Janua/ry. Vacancies ; how 
 
 filled. 
 
 Sbo. 10. And be it further enacted, That the directors of any Asso- 
 ciation first elected or appointed shall hold their places until their suc- 
 cessors shall be elected and qualified. All subsequent elections shall be 
 held annually on such day in the month of January as may be specified 
 in the articles of association ; and the directors so elected shall hold 
 tjieir places for one year, and until their successors are elected and 
 qualified. But any director, ceasing to be the owner of the requisite 
 amount of stock, or having in any other manner become disqualified, 
 shall thereby vacate his place. Any vacancy in the board shall be filled 
 by appointment by the remaining directors, and any director so ap- 
 pointed shall hold his place until the next election. If from any cause 
 an election of directors shall not be made at the time appointed, the 
 Association shall not for that cause be dissolved, but an election may be 
 held on any subsequent day, thirty days notice thereof in all cases 
 having been given in a newspaper published in the city, town or county 
 in which the Association is located ; and if no newspaper is published 
 in such city, town or county, such notice shall be published in a news- 
 paper published nearest thereto. If the articles of association do not fix 
 the day on which the election shall be held, or if the election should not 
 be held on the day fixed, the day for the election shall be designated by 
 the board of directors in their by-laws, or otherwise : Provided, That if 
 the directors fail to fix the day, as aforesaid, shareholders representing 
 two-thirds of the shares may. 
 
 Each Shareholder entitled to one vote / may vote ly proxies. No 
 Officer shall act as proxy. 
 
 Sec. 11. And he it further enacted, That in all elections of directors, 
 and in deciding all questions at meetings of shareholders, each share- 
 holder shall be entitled to one vote on each share of stock held by him. 
 Shareholders may vote by proxies duly authorized in writing ; but no 
 officer, clerk, teller, or book-keeper of such Association shall act as 
 proxy ; and no shareholder whose liability is past due and unpaid shall 
 be allowed to vote. 
 
 Shares one hundred dollars each. Liaiility of Shareholders. 
 
 Sbo. 12. And he it further enacted. That the capital stock of any 
 Association formed under this Act shall be divided into shares of one 
 hundred dollars each, and be deemed personal property, and transferable 
 cm the books of the Association in such manner as may be prescribed in 
 the by-laws or articles of association ; and every person becoming a 
 shareholder by such transfer shall, in proportion to his shares, succeed 
 to all the rights and liabilities of the prior holder of such shares, and no 
 change shall be made in the articles of association by which the rights, 
 remedies, or security of the existing creditors of the Association shall 
 be impaired. The shareholders of each Association formed under the 
 
6 
 
 provisions of this Act, and of each existing bank or Banking Association 
 that may accept the provisions of this Act, shall be held individually 
 responsible, equally and ratably, and not one for another, for all con- 
 tracts, debts, and engagements of such Association to the extent of the 
 amount of their stock therein at the par value thereof, in addition to the 
 amount invested in such shares ; except that shareholders of any Banking 
 Association now existing under State laws, having not less than five 
 millions of dollars of capital actually paid in, and a surplus of twenty 
 per centum on hand, both to be determined by the Comptroller of the 
 Currency, shall be liable only to the amount invested in their shares ; 
 and such surplus of twenty per centum shall be kept undiminished, and 
 be in addition to the surplus provided for in this Act ; and if at any time 
 there shall be a deficiency in said surplus of twenty per centum, the said 
 Banking Association shall not pay any dividends to its shareholders 
 until such deficiency shall be made good ; and in case of such deficiency, 
 the Comptroller of the Currency may compel said Banking Association 
 to close its business and wind up its affairs under the provisions of this 
 Act. And the Comptroller shall have authority to withhold from an 
 Association his certificate authorizing the commencement of business, 
 whenever he shall have reason to suppose that the shareholders thereof 
 have formed the same for any other than the legitimate objects contem- 
 plated by this Act. 
 
 Mow an Association may increase or reduce its capital. 
 
 Sec. 13. And he it further enacted, That it shall be lawful for any 
 Association formed under this Act, by its articles of association, to pro- 
 vide for an increase of its capital from time to time as may be deemed 
 expedient, subject to the limitations of this Act : Provided, That the 
 maximum of such increase in the articles of Association shall be determ- 
 ined by the Comptroller of the Cijrrency ; and no increase of capital 
 shall be valid until the whole amount of such increase shall be paid in, 
 and notice thereof shall have been transmitted to the Comptroller of the 
 Currency, and his certificate obtained specifying the amount of such 
 increase of capital stock, with his approval thereof, and that it has been 
 duly paid in as part of the capital of such Association. And every 
 Association shall have power, by the vote of shareholders owning two- 
 thirds of its capital stock, to reduce the capital of such Association to 
 any sum not below the amount required by this Act, in the formation 
 of Associations : Provided, That by no such reduction, shall its capital 
 be brought below the amount required by this Act for its outstanding 
 circulation, nor shall any such reduction be made until the amount of 
 the proposed reduction has been reported to the Comptroller of the 
 Currency and his approval thereof obtained. 
 
 Fifty per cent, of capital required 'before convmencement of 
 
 iusiness. 
 Sec. 14. And be it further enacted, That at least fifty per centum of 
 the capital stock of every Association shall be paid in before it shall be 
 
authorized to commence business ; and the remainder of the capital 
 stock of such Association shall be paid in installments of at least ten per 
 centum each on the whole amount of the capital as frequently as one 
 installment at the end of each succeeding month from the time it shall be 
 authorized by the Comptroller to commence business ; and the payment 
 of each installment shall be certified to the Comptroller, under oath, by 
 the president or cashier of the Association. 
 
 Directors may sell stock of delinquent shareholders. 
 
 . Seo. 15. And he it further enacted, That if any shareholder, or his 
 assignee, shall fail to pay any installment on the stock when the same is 
 required by the foregoing section to be paid, the directors of such Asso- 
 ciation may sell the stock of such delinquent shareholder, at public 
 auction, having given three weeks previous notice thereof in a newspaper 
 published and of general circulation in the city or county where the 
 Association is located, and if no newspaper is published in said city or 
 county, then in a newspaper published nearest thereto, to any person 
 who will pay the highest price therefor, and not less than the amount 
 then due thereon, with the expenses of advertisement and sale ; and the 
 excess, if any, shall be paid to the delinquent shareholder. If no bidder 
 can be found who will pay for such stock the amount due thereon to the 
 Association, and the cost of advertisement and sale, the amount pre- 
 viously paid shall be forfeited to the Association, and such stock shall 
 be sold as the directors may order, within six months from the time of 
 such forfeiture, and if not sold it shall be canceled and deducted from 
 the capital stock of the Association ; and if such cancellation and reduc- 
 tion shall reduce the capital of the Association below the minimum of 
 capital required by this Act, the capital stock shall, within thirty days 
 from the date of such cancellation, be increased to the requirements of 
 the Act ; in default of which a receiver may be appointed to close up the 
 business of the Association according to the provisions of the fiftieth 
 section of this Act. 
 
 Deposit of United States Bonds with the Treasurer of the United 
 States, required of each association. 
 
 Sec. 16. And he it further enacted, That every Association, after 
 having complied with the provisions of this Act preliminary to the com- 
 mencement of banking business under its provisions, and before it shall 
 be authorized to commence business, shall transfer and deliver to the 
 Treasurer of the United States, any United States registered bonds 
 bearing interest to an amount not less than thirty thousand dollars nor 
 less than one-third of the capital stock paid in, which bonds shall be 
 deposited with the Treasurer of the United States and by him safely 
 kept in his office until the same shall be otherwise disposed of, in pur- 
 suance of the provisions of this Act ; and the Secretary of the Treasury 
 is hereby authorized to receive and cancel any United States coupoi 
 bonds, and to issue in lieu thereof registered bonds of like amount, bear 
 
8 
 
 ing a like rate of interest, and having the same time to run ; and the 
 deposit of bonds shall be, by every Association, increased as its cap- 
 ital may be paid up or increased,, so that every Association shall at all 
 times have on deposit with the Treasurer registered United States bonds 
 to the amount of at least one-third of its capital stock actually paid in : 
 Provided, That nothing in this section shall prevent an Association that 
 may desire to reduce its capital or to dose up its business and dissolve 
 its organization from taking up its bonds upon returning to the Comp- 
 troller its circulating notes in the proportion hereinafter named in this 
 Act, nor from taking up any excess of bonds, beyond one-third of its 
 capital stock and upon which no circulating notes have been delivered. 
 
 Comptroller shall examine condition of association before gra/niing 
 
 certificate. 
 
 Sec. 17. And he it further enacted, That whenever a certificate shall 
 have been transmitted to the Comptroller of the Currency, as provided 
 in this Act, and the Association transmitting the same shall notify the 
 Comptroller that at, least fifty per centum of its capital stock has been 
 paid in as aforesaid, and that such Association has complied with all the 
 provisions of this Act as required to be complied with before such Asso- 
 ciation shall be authorized to commence the business of banking, the 
 Comptroller shall examine into the condition of such Association, ascer- 
 tain especially the amount of money paid in on account of its capital, the 
 name and place of residence of each of the directors of such Association, 
 and the amount of the capital stock of which each is the bona fide owner, 
 and generally whether such Association has complied with all the re- 
 quirements of this Act to entitle it to engage in the business of banking ; 
 and shall cause to be made, and attested by the oaths of a majority of 
 the directors and by the president or cashier of such Association, a state- 
 ment of all the facts necessary to enable the Comptroller to determine 
 whether such Association is lawfully entitled to commence the business 
 of banking under this Act. 
 
 Jf condition of Association isfovmd to he satisfactory, certificate 
 to le granted hy Comptroller — to le published for sixty days. 
 
 Sbo. 18. And be it further enacted, That if, upon a carefiil examination 
 of the facts so reported, and of any other facts which may come to the 
 knowledge of the Comptroller, whether by means of a special commission 
 appointed by him for the purpose of inquiring into the condition of such 
 Association or otherwise, it shall appear that such Association is law- 
 fully entitled to commence the business of banking, the Comptroller 
 shall give to such Association a certificate, under his hand and official 
 seal, that such Association has complied with all the provisions of this 
 Act required to be complied with before being entitled to commence the 
 business of banking under it, and that such Association is authorized to 
 commence said business accordingly ; and it shall be the duty of the 
 Association to cause said certificate to be published in some newspaper 
 
9 
 
 published in the city or county -where the Association is located, for at 
 least sixty days next after the issuing thereof: Provided, That if no 
 newspaper is published in such city or county, the certificate shall be 
 published in a newspaper published nearest thereto. 
 
 ^orm of transfer of hands hy assnoiation to the Treasurer. Bonds 
 to ie countersigned hy the Comptroller. 
 
 Sec. 19. And he it further enacted, That all transfers of United 
 States bonds which shall be made by any Association under the provi- 
 sions of this Act, shall be made to the Treasurer of the United States in 
 trust for the Association, with a memorandum written or printed on 
 each bond, and signed by the cashier or some other officer of the Asso- 
 ciation making the deposit, a receipt therefor to be given to said Asso- 
 ciation, or by the Comptroller of the Currency, or by a clerk appointed 
 by him for that purpose, stating that it is held in trust for the Associa- 
 tion on whose behalf such transfer is made, and as security for the re- 
 demption and payment of any circulating notes that have been or may 
 be delivered to such Association. No assignment or transfer of any such 
 bonds by the Treasurer shall be deemed valid, or of binding force and 
 effect, unless countersigned by the Comptroller of the Currency. It 
 shall be the duty of the Comptroller of the Currency to keep in his office 
 a book in which shall be entered the name of every Association from 
 whose accounts such tfansfer of bonds is made by the Treasurer, and the 
 name of the party to whom such transfer is made ; and the par value of 
 the bonds so transferred shall be entered therein ; and it shall be the 
 duty of the Comptroller, immediately upon countersigning and entering 
 the same, to advise by mail the Association from whose account such 
 transfer was made, of the kind and numerical designation of the bonds 
 and the amount thereof so transferred. 
 
 Duties of Comptroller upon transfer of hands. 
 
 Sec. 20. And he it further enacted, That it shall be the duty of the 
 Comptroller of the Currency to countersign and enter in the book, in the 
 manner aforesaid, every transfer or assignment of any bonds held by the 
 Treasurer presented for his signature ; and the Comptroller shall have 
 at all times during office hours access to the books of the Treasurer, for 
 the purpose of ascertaining the correctness of the transfer or assignment 
 presented to him to countersign ; and the Treasurer shall have the like 
 access to the book above mentioned, kept by the Comptroller, during 
 office hours, to ascertain the correctness of the entries in the same; and 
 the Comptroller shall also at all times have access to the bonds on de- 
 posit with the Treasurer, to ascertain their amount and condition. 
 
 Circulating notes to he issued hy the Comptroller. 
 
 Sec. 21. And he it further enacted, That upon the transfer and deliv- 
 ery of bonds to the Treasurer, as provided in the foregoing section, the 
 Association making the same shall be entitled to receive from the Comp- 
 
10 
 
 troller of the Currency circulating notes of different denominations, in 
 blank, registered and countersigned as hereinafter provided, equal in 
 amount to ninety per centum of the current market value of the United 
 States bonds so transferred and delivered, but not exceeding ninety per 
 centum of the amount of said bonds at the par value thereof, if bearing 
 interest at a rate not less than five per centum per annum ; and at no 
 time shall the total amount of such notes, issued to any such Association, 
 exceed the amount at such time actually paid in of its capital stock. 
 
 Limit of circulating notes three hundred millions. Denominations 
 amdform of notes. 
 
 Sec. 22. And be it further enacted, That the entire amount of notes 
 for circulation to be issued under this Act shall not exceed three hundred 
 millions of dollars. In order to furnish suitable notes for circulation, the 
 Comptroller of the Currency is hereby authorized and required, under 
 the direction of the Secretary of the Treasury, to cause plates and dies 
 to be engraved, in the best manner, to guard against counterfeiting and 
 fraudulent alterations, and to have printed therefrom, and numbered, 
 such quantity of circulating notes, in blank, of the denominations of one 
 dollar, two dollars, three dollars, five dollars, ten dollars, twenty dollars, 
 fifty dollars, one hundred dollars, five hundred dollars, and one thousand 
 dollars, as may be required to supply, under this Act, the Associations 
 entitled to receive the same ; which notes shall express upon their face 
 that they are secured by United States bonds, deposited with the Treas- 
 urer of the United States by the written or engraved signatures of the 
 Treasurer and Register, and by the imprint of the seal of the Treasury ; 
 and shall also express upon their face the promise of the Association 
 receiving the same to pay on demand, attested by the signatures of the 
 president or vice-president and cashier. And the said notes shall bear 
 such devices and such other statements, and shall be in such form, as the 
 Secretary of the Treasury shall, by regulation, direct : Provided, That 
 not more than one-sixth part of the notes furnished to an Association 
 shall be -of a less denomination than five dollars, and that after specie 
 payments shall be resumed no Association shall be furnished with notes 
 of a less denomination than five dollars. 
 
 Notes to circulate as money, and receivable for taxes, excises^ 
 public lands, and all other dues to the United States, except 
 import duties. 
 
 Sec. 23. And he it further enacted, That after any such Association 
 shall have caused its promise to pay such notes on demand to be signed 
 by the president or vice-president and cashier thereof, in such manner as 
 to make them obligatory promissory notes, payable on demand, at its 
 place of business, such Association is hereby authorized to issue and cir- 
 culate the same as money ; and the same shall be received at par in all 
 parts of the United States in payment of taxes, excises, public lands, and 
 all other dues to the United States, except for duties on imports ; and 
 also for all salaries and other debts and demands owing by the United 
 
11 
 
 States to individuals, corporations, and Associations within the United 
 States, except interest on the public debt and in redemption of the na- 
 tional currency. And no such Association shall issue post notes or any- 
 other, notes to circulate as money than such as are authorized by the 
 foregoing provisions of this Act. 
 
 Mutilated Notes to ie replaced hy New Issues. 
 
 Sec. 24. And he it further enacted, That it shall be the duty of the 
 Comptroller of the Currency to receive 'worri-out or mutilated circulat- 
 ing notes issued by any such Banking Association ; and also, on due 
 proof of the destruction of any such circulating notes, to deliver in place 
 thereof to such association other blank circulating notes to an equal 
 amount. And such worn-out or mutilated notes, after a memorandum 
 shall have been entered in the proper books, in accordance with such 
 regulations as may be established by the Comptroller, as well, as all cir- 
 culating notes which shall have been paid or surrendered to be canceled, 
 shall be burned to ashes in presence^ of four persons — one to be ap- 
 pointed by the Secretary of the Treasury, one by the Comptroller of the 
 Currency, one by the Treasurer of the United States, and one by the 
 Association, under such regulations as the Secretary of the Treasury 
 may prescribe. And a certificate of such burning, signed by the parties 
 so appointed, shall be made in the books of the Comptroller, and a du- 
 plicate thereof forwarded to the Association whose notes are thus 
 canceled. 
 
 PeriodAcal examination of Bonds deposited. 
 
 Sec. 25. And he it further enacted. That it shall be the duty of 
 every Banking Association, having bonds deposited in the office of the 
 Treasurer of the United States, once or oftener in each fiscal year; and 
 at such time or times during, the ordinary business hours as said officer 
 or officers may select, to examine and compare the bonds so pledged, 
 with the books of the Comptroller and the accounts of the Association, 
 and, if found correct, to execute to the said Treasurer a certificate setting 
 forth the different kinds and the amounts thereof, and that the same are 
 in the possession and custody of the Treasurer at the date of such 
 certificate. Such examination may be made by an officer or agent of 
 such Association, duly appointed in writing for that purpose, whose cer- 
 tificate before mentioned shall be of like force and validity as if executed 
 by such president or cashier ; and a duplicate signed by the Treasurer 
 shall be retained by the Association. 
 
 Bonds transferred to he held exclusively for the Security of the 
 Circulating Notes, hut the Interest to he paid to the Association. 
 When depreciated, to he exchanged for other Bonds. 
 
 Seo. 26. And he it further enacted. That the bonds transferred to 
 and deposited with the Treasurer of the United States, as hereinbefore 
 provided, by any Banking Association for the security of its circulating 
 notes, shall be held exclusively for that purpose, until such notes shall 
 
12 
 
 be redeemed, except as provided in this act ; but the Comptroller of the 
 Currency shall give to any such Banking Association powers of attorney 
 to receive and appropriate to its own use the interest on the bonds which 
 it shall have so transferred to the Treasurer ; but such powers shall be- 
 come inoperative whenever such Banking Association shall fail to redeem 
 its circulating notes as aforesaid. Whenever the market or cash value 
 of any bonds deposited with the Treasurer of the United States, as afore- 
 said, shall be reduced below the amount of the circulation issued for the 
 same, the Comptroller of the Currency is hereby authorized to demand 
 and receive the amount of such depreciation in other United States bonds 
 at cash value or in money, from the Association receiving said bills, to 
 be deposited with the Treasurer of the United States, as long as sueh 
 depreciation continues. And said Comptroller, upon the terms pre- 
 scribed by the Secretary of the Treasury, may permit an exchange to be 
 made of any of the bonds deposited with, the Treasurer by, an Associa^ 
 tion for other bonds of the United States authorized by this Act to be 
 received as security for circulating notes, if he shall be of opinion that 
 such an exchange can be made without prejudice to the United States, 
 and he may direct the return of any of said bonds to the Banking Asso- 
 ciation which transferred the same, in sums of not less than one thousand 
 dollars, upon the surrender to him and the cancellation of a proportion- 
 ate amount of such circulating notes: Provided, ThaX, the remaining 
 bonds which shall have been transferred by the Banking Association 
 oifering to surrender circulating notes shall be equal to the amount 
 required for the circulating notes not surrendered by such Banking 
 Association, and that the amount of bonds in the hands of the Treasurer 
 shall not be diminished below the amount required to be kept on deposit 
 with liim by this act : And provided, That there shall have been no failure 
 by such Association to redeem its circulating notes, and no other viola- 
 tion by such Association of the provisions of this act, and that the mar- 
 ket or cash value of the remaining bonds shall not be below the amount 
 required for the circulation issued for the same. 
 
 Penalty for isswing or delivering Notes, except as herevn provided. 
 
 Sec. 37. And be it further enacted, That it shall be unlawful for any 
 officer acting under the provisions of this act to countersign or deliver 
 to any Association, or to. any other company or person, any circulating 
 notes contemplated by this act, except as hereinbefore provided, and in 
 accordancte with the true intent and meaning of this act. And any officer 
 who shall violate the provisions of this section shall be deemed guilty of 
 a high misdemeanor, and on conviction thereof shall be punished by fine 
 not exceeding double the amount so countersigned and delivered, and im- 
 prisonment not less than one year and not exceeding fifteen years, at the 
 discretion of the court in which he shall be tried. 
 
 Beal Estate, wJven and how held hy Associations. 
 
 Sec. 28. And be it further enacted. That it shall be lawful for any 
 such Association to purchase, hold and convey real estate as follows : 
 
13 
 
 First. Such as shall be necessary for its immediate accommodation 
 in the transaction of its business. 
 
 Second. Such as shall be mortgaged to it in good faith by way of 
 security for debts previously contracted. 
 
 Third. Such as shall be conveyed to it in satisfaction of debts pre- 
 viously contracted in the course of its dealings. 
 
 Fourth. Such as it shall purchase at sales under judgments, decrees 
 or mortgages held by such Association, or shall purchase to secure debts 
 due to said Association. 
 
 Such Association shall not purchase or hold real estate in any other 
 case or for any other purpose than as specified in this section ; nor shall 
 it hold the possession of any real estate under mortgage, or hold the 
 title and possession of any real estate purchased to secure any debts due 
 to' it for a longer period than five years. 
 
 Limitation of Liability of Borrowers. 
 
 Sec. 29. And he it further enacted, That the total liabilities to any 
 Association, of any person, or of any company, corporation or firm, for 
 money borrowed, including in the liabilities of a company or firm the 
 liabilities of the several members thereof, shall at no time exceed one- 
 tenth part of the amount of the capital stock of such Association actually 
 paid in : Provided, That the discount of hona-fide bills of exchange drawn 
 against actually existing values, and the discount of commercial or busi- 
 ness paper actually owned by the person or persons, corporation or 
 firm negotiating the same, shall not be considered as money borrowed. 
 
 Limit of Rate of Interest. Penalties for Usury. 
 
 Sec. 30. And he it further enacted. That every Association may take, 
 receive, reserve and charge on any loan or discount made, or upon any 
 note, bill of exchange, or other evidences of debt, interest at the rate 
 allowed by the laws of the State or Territory where the bank is located, 
 and no more, except that where by the laws of any State a different rate 
 is limited for banks of issue organized under State laws, the rates so 
 limited shall be allowed for Associations organized in any such State 
 under this act. And when no rate is fixed by the laws of the State or 
 Territory, the bank may take, receive, reserve or charge a rate not ex- 
 ceeding seven per centum, and such interest may be taken in advance, 
 reckoning the days for which the note, bill or other evidence of debt has 
 to run. And the knowingly taking, receiving, reserving or charging a 
 rate of interest greater than aforesaid shall be held and adjudged a for- 
 feiture of the entire interest which the note, bill or other evidence of 
 debt carries with it, or which has been agreed to be paid thereon. And 
 in case a greater rate of interest has been paid, the person or persons 
 paying the same, or their legal representatives, may recover back, in any 
 action of debt, twice the amount of the interest thus paid, from the Asso- 
 ciation taking or receiving the same : Provided, That such action is 
 commenced within two years from the time the usurious transaction 
 occurred. But the purchase, discount or sale of a hona-fide bill of 
 
14 
 
 exchange, payable at another place J;han the place of such purchase, 
 discount or sale, at not more than the current rate of exchange for sight 
 drafts ia addition to the interest, shall not be considered as taking or 
 receiving a greater rate of interest. 
 
 Heserve of Legal Money prescribed. 
 
 Sec. 31 . And he it further enacted, That every Association in the 
 cities hereinafter named shall, at all times, have on hand, in lawful money 
 of the United States, an amount equal to at least twenty-five per centum 
 of the aggregate amount of its notes in circulation and of its deposits ; and 
 every other Association shall at all times have on hand, in lawful money 
 of the United States, an amount equal to at least fifteen per centum of 
 the aggregate amount of its notes in circulation, and of its deposits. 
 And whenever the lawful money of any Association in any of the cities 
 hereinafter named shall be below the amount of twenty-five per centum 
 of its circulation and deposit?, and whenever the lawful money of any 
 other Association shall be below fifteen per centum of its circulation and 
 deposits, such Association shall not increase its liabilities by making any 
 new loans or discounts otherwise than by discounting or purchasing bills 
 of exchange payable at sight, nor make any dividend of its profits, until 
 the required proportion between the aggregate amount of its outstanding 
 notes of circulation and, deposits and its lawful mon6y of the United 
 States shall be restored : Provided, That three-fifths of said fifteen per 
 centum may consist of balances due to an Association available for the 
 redemption of its circulating notes from Associations approved by the 
 Comptroller of the Currency, organized under this act, in the cities of 
 Saint Louis, Louisville, Chicago, Detroit, Milwaukee, New Orleans, Cin- 
 cinnati, Cleveland, Pittsburg, Baltimore, Philadelphia, Boston, New 
 York, Albany, Leavenworth, San Francisco and Washington City : 
 Provided also, That clearing-house certificates, representing specie or 
 lawful money specially deposited for the purpose of any clearing-house 
 Association, shall be deemed to be lawful money in the possession of any 
 Association belonging to such clearing-house holding and owning such 
 certificate, and shall be considered to be a part of the lawful money 
 which such Association is required to have under the foregoing provis- 
 ions of this section : Provided, That the cities of Charleston and Eich- 
 mond may be added to the list of cities in the National Associa,tions of 
 which other Associations may keep three-fifths of their lawful money, 
 jvhenever, in the Opinion of the Comptroller of the Currency, the condi- 
 tion of the Southern States will warrant it. And it shall be competent 
 for the Comptroller of the Currency to notify any Association whose 
 lawful money reserve, as aforesaid, shall be below the amount to be kept 
 on hand, as aforesaid, to make good such reserve ; and if such Associa- 
 tion shall fail for thirty days thereafter so to make good its reserve of 
 lawful money of the United States, the Comptroller may, with the con- 
 currence of the Secretary of the Treasury, appoint a receiver to wind up 
 the business of such Association, as provided in this Act. 
 
15 
 
 Redemption of Noies at pa/r in New York or other Cities. 
 
 Sec. 32. And he it further enacted, That each Association organized 
 in any of the cities named in the foregoing section shall select, subject to 
 the approval of the Comptroller of the Currency, an Association in the 
 city of New York at which it will redeem its circulating notes at par. 
 And each of such Associations may keep one half of its lawful money 
 reserve in cash deposits in the city of New York. And each Association 
 not organized within the cities named within the preceding section shall 
 select, subject to the approval of the Comptroller of the Currency, an 
 Association in either of the cities named in the preceding section at 
 which it will redeem its circulating notes at par ;, and the Comptroller 
 shall give public notice of the names of the Associations so selected at 
 which redemptions are to be made by the respective Associations, and 
 of any change that may be made of the Association at which the notes 
 of any Association are redeemed. If any Association shall fail either to 
 make the selection or to redeem its notes aforesaid, the Comptroller of 
 the Currency may, upon receiving satisfactory evidence thereof, appoint 
 a receiver, in the manner provided for in this Act, to wind up its affairs : 
 Provided, That nothing in this section shall relieve any Association from 
 its liability to redeem its circulating notes at its own counter, at par, in 
 lawful money, on demand. And provided further, that every Associa- 
 tion formed or existing under the provisions of this Act shall take and 
 receive at par, for any debt or liability to said Association, any and all 
 notes or bills issued by any Association existing under and by virtue of 
 this Act. 
 
 Semi-annual Dividends. 
 
 Sec. 33. And he it further enacted, That the directors of any Asso- 
 ciation may, semi-annually, each year, declare a dividend of so much of 
 the net profits of the Association as they shall judge expedient ; but each 
 Association shall, before the declaration of a dividend^ carry one-tenth 
 part of its net profits of the preceding half year to its surplus fund until 
 the same shall amount to twenty per centum of its capital stock. 
 
 Quarterly and monthly statements of resoivrces and liabilities 
 
 required. 
 
 Sec. 34. Ar^d be it further enacted, That every Association shall 
 make to the Comptroller of the Currency a report, according to the 
 form which may be prescribed by him, verified by the oath or affirma- 
 tion of the president or cashier of such Association ; which report shall 
 exhibit in detail, and under appropriate heads, the resources and liabili- 
 ties of the Association befoie the commencement of business on the 
 morning of the first Monday of the months of January, April, July 
 and October of each year, and shall transmit the same to the Comptrol- 
 ler within five days thereafter. And any bank failing to make and trans- 
 mit such report shall be subject to a penalty of one hundred dollars for 
 each day after five days that such report is delayed beyond the time. 
 
16 
 
 And the Comptroller shall publish abstracts of said reports in a news- 
 paper to be designated by him for that purpose, in the city of Washing- 
 ton, and the separate report of each Association shall be published in a 
 newspaper in the place where such Association is established, or if there 
 be no newspaper at such place, then in a newspaper published at the 
 nearest place thereto, at the expense of the Association making such 
 report. In addition to the quarterly reports required by this section, 
 every Association shall, on the first Tuesday of each month, make to the 
 Comptroller of the Curreiiey a statement, under the oath of the presi- 
 dent or cashier, showing the condition of the Association making such 
 statement, on the morning of the day next preceding the date of such 
 statement, in respect to the following items and particulars, to 'virit : 
 average amount of loans and discounts, specie and other lawful money 
 belonging to the Association, deposits, and circulation. And Associa- 
 tions in other places than those cities named in the thirty-first section of 
 this act shall also return the amount due them available for the redemp- 
 tion of their circulation. 
 
 Loans Jy an Association on or purchase of its own stock 
 foil-bidden. 
 
 Sec. 35. And he it further enacted, That no Association shall make 
 any loan or discount on the security of the shares of its own capital 
 stock, nor be the purchaser or holder of any such shares, unless such 
 security or purchase shall be necessary to prevent loss upon a debt pre- 
 viously contracted in good faith ; and stock so purchased or acquired 
 shall, within six months from the time of its purchase, be sold or dis- 
 posed of at public or private sale, in default of which a receiver may be 
 appointed to close up the business of the Association, according to the 
 provisions of this Act. 
 
 Limitation of indebtedness prescribed. 
 
 Sec. 36. And be it further enacted, That no Association shall at any 
 time be indebted, or in any way liable, to an amount exceeding the 
 amount of its capital stock at such time actually paid in and remaining 
 undiminished by losses or otherwise, except on the following accounts, 
 that is to say : 
 , First. On account of its notes of circulation. 
 
 Second. On account of moneys deposited with, or collected by, such 
 Association. 
 
 Third. On account of bills of exchange or drafts drawn against 
 money actually on deposit to the credit of such Association, or due 
 thereto. 
 
 Fourth. On account of liabilities to its stockholders for dividends 
 and reserved profits. 
 
 Hypothecation of circulating notes prohibited. 
 Sko. 37. And be it further enacted, That no Association shall, either 
 
17 
 
 directly or indirectly, pledge, or hypothecate any of its notes of circu- 
 lation, for the purpose of procuring money to be paid in on its capital 
 stock, or to be used in its banking operations, or otherwise ; nor shall 
 any Association use its circulating notes, or any part thereof, in any 
 manner or form^ to create or increase its capital stock. 
 
 Withdrawal of capital stock prohibited. 
 
 Sec. 38. And be it further enacted, That no Association, or any mem- 
 ber thereof, shall, during the time it shall continue its banking operations, 
 ■withdraw, or permit to be withdrawn, either in form of dividends or 
 otherwise, any portion of its capital. And if losses 'shall at any time 
 have been sustained by any such Association equal to or exceeding its 
 undivided profits then on hand, no dividend shall be made ; and no divi- 
 dend shall ever be made by any Association while it shall continue its 
 banking operations to an amount greater than its net profits then on 
 hand, deducting therefrom its losses and bad debts. And all debts due 
 to any Association, on which interest is past due and unpaid for a period 
 of six months, unless the same shall be well secured and shall be in pro- 
 cess of collection, shall be considered bad debts within the meaning of 
 this act : Provided, That nothing in this section shall prevent the reduc- 
 tion of the capital stock of the Association under the thirteenth section 
 of this Act. 
 
 Circulation of depreciated currency forbidden,. 
 
 Sec. 39. And he it further enacted. That no Association shall at any 
 time pay out on loans or discounts, or in purchasing drafts or bills of 
 exchange, or in payment of deposits, or in any other mode, pay or put 
 in circulation the notes of any bank or Banking Association which shall 
 not, at any such time, be receivable at par, on deposit and in payment 
 of debts by the Association so paying out or circulating such notes ; 
 nor shall it knowingly pay Out or put in circulation any notes issued by 
 any bank or Banking Association which at the time of such paying out 
 or putting in circulation is not redeeming its circulating notes in lawful 
 money of the United States. 
 
 List of shareholders to be kept, and to be open to inspection. 
 
 Sec. 40. And be it further enacted, That the president and cashier 
 of every such Association shall cause to be kept at all times a full and 
 correct list of the names and residences of all the shareholders in the 
 Association, and the number of shares held by each, in the office where 
 its business is transacted ; and such list shall be subject to the inspection 
 of all the shareholders and creditors of the Association, and the officers 
 authorized to assess taxes under State authority, during business hours 
 of each day in which business may be legally transacted ; and a copy of 
 such list, on the first Monday of July in each year, verified by the oath 
 of such president or cashier, shall be transmitted to the Comptroller of 
 the Currency. 
 
18 
 
 Plates and dies to remain, under direction of Comptroller. — An-' 
 nual taxes to he pa/id hy each Association. — 'Retv/tns to ie 
 made of amount of circulation. 
 
 Sec. 41. And he it further enacted, That the plates and special dies 
 to be procured by the Comptroller of the Currency for the printing of 
 such circulating notes shall remain under his control and direction, and 
 the expenses necessarily incurred in executing the provisions of this Act 
 respecting the procuring of such, notes, and all other expenses of the 
 bureau, shall be paid out of the proceeds of the taxes or duties now or 
 hereafter to be assessed on the circulation, and collected from Associa- 
 tions organized under this Act. And in lieu of all existing taxes, every 
 . Association shall pay to the Treasurer of the United States, in the 
 months of January and July, a duty of one half of one per centum each 
 half year from and after the first day of January, eighteen hundred, and 
 sixty-four, upon the average amount of its notes in circulation, and a 
 duty of one quarter of one per centum each half year upon the average 
 amount of its deposits, and a duty of one quarter of one per centum 
 each half year, as aforesaid, on the average amount of its capital stock 
 beyond the amount invested in United States bonds ; and in case of de- 
 fault in the payment thereof by any Association, the duties aforesaid 
 may be collected in the manner provided for the collection of United 
 States duties of other corporations, or the Treasurer may reserve the 
 amount of said duties out of the interest, as it may become due, on the 
 bonds deposited with him by such defaulting Association. And it shall 
 •be the duty of each Association, within ten days from the first days of 
 January and July of each year, to make a return, under the oath of its 
 president or cashier, to the Treasurer of the United States, in such form 
 as he may prescribe, of the average amount of its notes in circulation, 
 and of the average amount of its deposits, and of the average amount of 
 its capital stock beyond the amount invested in United States bonds, for 
 the six months next preceding said first days of January and July as 
 aforesaid, and in default of such return, and for each default thereof, each 
 defaulting Association shall forfeit and pay to the United States the sum 
 of two hundred dollars, to be collected either out of the interest as it 
 may become due such Association on the bonds deposited with the 
 Treasurer, or, at his option, in the manner in which penalties are to be 
 collected of other corporations under the laws of the United States ; and 
 in case of such default the amount of the duties to be paid by such As- 
 sociation shall be assessed upon the amount of notes delivered to such 
 Association by the Comptroller of the Currency, and upon the highest 
 amount of its deposits and capital stock, to be ascertained in such other 
 manner as the Treasurer may deem best : Provided, That nothing in this 
 Act shall be construed to prevent all' the shares in any of the said As- 
 sociations, held by any person or body corporate, from being included 
 in the valuation of the personal property of such person or corporation 
 in the assessment of taxes imposed by or under State authority at the 
 place where such bank is located and not elsewhere, but not at a greater 
 
19 
 
 rate than is assessed upon other moneyed capital in the hands of indi- 
 vidual citizens of such State : Provided further, That the tax so iraposed 
 under the laws of any State upon the shares of any of the Associations 
 authorized by this Act shall not exceed the rate imposed upon the shares 
 in any of the banks organized under authority of the State where such 
 Association is located : Provided also, That nothing in this Act shall ex- 
 empt the real estate of Associations from either State, county, or muni- 
 cipal taxes to the same extent, according to its value, as other real estate 
 is taxed. 
 
 Provision for liquidation hy vote of two thirds of stock. 
 
 Sec. 42. And be it further enacted. That any Association may go 
 into liquidation >nd be closed by, the vote of its shareholders owning 
 two thirds of its stock. And whenever such vote shall be taken, it shall 
 be the duty of the board of directors to cause notice of this fact to be 
 certified, under the seal of the Association, by its president or cashier, 
 to the Comptroller of the Currency, and the publication thereof to be 
 made for a period of two months in a newspaper published in the city of 
 New York, apd also in a newspaper published in a city or town in which 
 the Association is located, and if no newspaper be there published, then 
 in the lUewspaper published nearest thereto, that said Association is clos- 
 ing up its affairs, and notifying the holders of its notes and other credi- 
 tors to present the notes and other claims against the Association for 
 payment. And at any time after the expiration of one year from the 
 time of the publication of such notice as aforesaid, the said Association 
 may pay over to the Treasurer of the United States the amount of its 
 outstanding notes in the lawful money of the United States, and take up 
 the bonds which said Association has on deposit with the Treasurer for 
 the security of its circulating notes ; which bonds shall be assigned to 
 the bank in the manner specified in the 19th section of this Act, and 
 from that time the outstanding notes pf said Association shall be re- 
 deemed at the Treasury of the United States, and the said Association 
 and the shareholders thereof shall be discharged from all liabilities 
 therefor. 
 
 Circulating notes, when redeemed hy the Treasurer, to he hu/mt 
 
 quarterly. 
 
 Sec. 43. And be it fwther enacted. That the Treasurer, on receiving 
 from an Association lawful money for the payment and redemption of 
 its outstanding notes, as provided for in the preceding section of this 
 Act, shall execute duplicate receipts therefor, one to the Association and 
 the other to the Comptroller of the Currency, stating the amount re- 
 ceived by him, and the purpose for which it has been received, which 
 amount shall be paid into the Treasury of the United States, and placed 
 to the credit of such Association upon redemption account. And it shall 
 be the duty of the Treasurer, whenever he shall redeem any of the notes 
 pf said Association, to cause the same to be mutilated, and charged to 
 
20 
 
 the redemption account of said Association ; and all notes so redeemed , 
 by the Treasurer shall, every three months, be certified to and burned in 
 the manner prescribed in the twenty-fourth section of this Act. 
 
 State Banks may he converted tnto National Associations. 
 
 Seo. 44. And be it further enacted, That any bank incorporated by 
 special law, or any banking institution organized under a general law of 
 any State, may, by authority of this Act, become a National Association 
 under its provisions, by the name prescribed in its organization certifi- 
 cate ; and in such case, the articles of association and the organization 
 certificate required by this Act may be executed by a majority of the 
 directors of the bank or banking institution ; and said certificate shall de- 
 clare that the owners of two thirds of the capital stock have authorized 
 the directors to make such certificate, and to change and convert the said 
 bank or banking institution into a National Association under this Act. 
 And a majority of the directors, after executing said articles of associa- 
 tion and organization certificate, shall have power to execute all other 
 papers, and to do whatever may be required to make its organization 
 perfect and complete as a National Association. The shares of any such 
 bank may contiriue to be for the same amount each as they were before 
 said conversion, and the directors aforesaid may be the directors of the 
 Association until others are elected' or appointed in accordance with the 
 provisions of this Act ; and any State bank which is a stockholder in any 
 other bank, by authority of State laws, may continue to hold its stock, 
 although either bank, or both, may be organized under and have accepted 
 the provisions of this Act. When the Comptroller shall give to such 
 Association a certificate, under his hand and official seal, that the pro- 
 visions of this Act have been complied with, and that it is authorized 
 to commence the business of banking under it, the Association shall have 
 the same powers and privileges, and shall be subject to the same duties, 
 responsibilities, and rules, in all respects as are prescribed in this Act for 
 other Associations organized under it, and shall be held and regarded as 
 an Association under this Act : Provided, however, That no such Asso- 
 ciation shall have a less capital than the amount prescribed for Banking 
 Associations under this Act. 
 
 National Banhs to he special depositaries of public moneys, and 
 financial agents (^ the Government. 
 
 Sec. 45. And he it further enacted. That all Associations under this 
 Act, when designated for that purpose by the Secretary of the Treasury, 
 shall be depositaries of public money, except receipts from customs, 
 under such regulations as may be prescribed by the Secretary ; and they 
 may also be employed as finanfcial agents of the government ; and they 
 shall perform all such reasonable duties, as depositaries of public mon- 
 eys and financial agents of the government, as may be required of them. 
 And the Secretary of the Treasury shall require of the Associations thus 
 designated satisfactory security by the deposit of United States bonds 
 
21 
 
 and otherwise, for the safe-keeping and prompt payment of the public 
 money deposited with them, and for the faithful performance of their du- 
 ties as financial agents of the government : Provided, That every Asso- 
 ciation which shall be selected and designated as receiver or depositary 
 of the public money shall take and receive at par all of the national 
 currency bills, by whatever Association issued, which have been paid in 
 to the government for internal revenue, or for loans or stocks. 
 
 Protest of notes oil failwe to redeem, and duty of Association 
 
 thereupon. 
 Seo, 46. And he it further enacted, That if any such Association shall 
 at any time fail to redeem, in the lawful money of the United States, any 
 of its circulating notes, when payment thereof shall be lawfully demand- 
 ed, during the usual hours of business, at the office of such Association, 
 or at its place of redemption aforesaid, the holder may cause the same 
 to be protested, in one package, by a notary public, unless the president 
 or cashier of the Association whose notes are presented for payment, or 
 the president or cashier of the Association at the place at which they are 
 redeemable, shall oifer to waive demand and notice of the protest, and 
 shall, in pursuance of such offer, make, sign, and deliver to the party 
 making such demand an admission in writing, stating the time of the 
 demand, the amount demanded, and the fact of the non-payment thereof; 
 and such notary public, on making such protest, or upon receiving such 
 admission, shall forthwith forward such admission or notice of protest to 
 the Comptroller of the Currency, retaining a copy thereof. And after 
 such default, on examination of the facts by the Comptroller, and notice 
 by him to the Association, it shall not be lawful for the Association 
 suffering the same to pay out any of its notes, discount any notes or bills, 
 or otherwise prosecute the business of banking, except to receive and 
 safely keep motiey belonging to it, and to deliver special deposits : 
 Provided, That if satisfactory proof be produced to such notary public 
 that the payment of any such notes is restrained by order of any court 
 of competent jurisdiction, such notary public shall not protest the same ; 
 and when the holder of such notes shall cause more than one note or 
 package to be protested on the same day, he shall not receive pay for 
 more than one protest. 
 
 Appointment of Special Agent on notice of protest. 
 
 Sbc. 47. And he it further enacted. That on receiving notice that any 
 such Association has fa,iled to redeem any of its circulating notes, as 
 specified in the next preceding section, the Comptroller of the Currency, 
 with the concurrence of the Secretary of the Treasury, may appoint a 
 special agent (of whose appointment immediate notice shall be given to 
 such Association), who shall immediately proceed to ascertain whether 
 such Association has refused to pay its circulating notes, in the lawful 
 money of the United States, when demanded as aforesaid, and report to 
 the Comptroller the fact so ascertained ; and if, from such protest or the 
 report so made, the Comptroller shall be satisfied that such Association 
 has refused to pay its circulating notes as aforesaid, and is in default, he 
 
shall, within thirty days after he shall have received notice of such fail- 
 ure, declare the United States bondsa;nd securities' pledged by such' Asso- 
 ciation forfeited to the United- States, and the same shall thereupon be 
 forfeited accordingly. And thereupon the Comptroller shall immediately 
 give , notice, in such manner as the Secretary of the Treasury; shall, by 
 general rules or otherwise, direct, to th6 holders of the circulating notes 
 of such Association, to present thern for payment at the Trieasury of the 
 United States, and the same shall be paid as presented in lawful money 
 of the United States: whereupon said Comptroller may, in his discretion, 
 cancel an amount of bonds pledged by such Association, equal at cur- 
 rent market rates, not exceeding par, to the notes paid. And it shall be 
 lawful for the Secretary of the Treasury, from time to time, to make 
 such regulations respecting the disposition to be made of such circulating 
 notes after presentation thereof for payment as aforesaid, and respecting 
 the perpetuation of the evidence of the payment thereof, as may seem to 
 him proper ; but all- such notes, on being paid, shall be canceled. And 
 for any deficiency in the proceeds of the bonds pledged by such Asso- 
 ciation, when disposed of as hereinafter specified, to reimburse to the 
 United States the amount so expended in paying the circulating notes ot 
 such Association, the United States shall have a first and paramount lien 
 upon all the assets of such Association; and such deficiency shall be 
 made good out of such assets in preference to any and all other claims 
 whatsoever, except the necessary costs and expenses of adtoinistering the 
 same. 
 
 Sale at auoiion qfbvhds of suspended banc's. 
 Sec. 48. And be it further enacted, That whenever the Comptroller 
 shall become satisfied, as in the last preceding section spedified, that any 
 Association has refused to pay its circulating notes as therein rhentioned, 
 he may, instead of canceling the United States bonds pledged by such 
 Association, as provided in the next preceding section, cause so much of 
 them as may be necessary to redeem the outstanding circillating notes 
 of such Association to be sold at public auction in the city of New York, 
 after giving thirty days' notice of such sale to such Association. 
 
 Such sale may, in tM discretion of the Comptroller be at private 
 sale — but in that casefornot less than par or the market value. 
 Sec. 49. And be it further enacted, That the Comptroller of the Cur- 
 rency may, if he shall be of opinion that the interests of the United States 
 will be best promoted thereby, sell at private sale any of the bonds 
 pledged by such Association, and receive therefor either money or the 
 circulating notes of such failing Association : ■ Provided, That no such 
 bonds shall be sold by private sale for less than par, nor less than the 
 market value thereof at the time of sale: And provided, further, That 
 no sales of any such bonds, either public or private, shall be complete 
 uiitil the transfer thereof shall have been made with the formalities pre- 
 scribed in this Act. 
 
 Meoeiver of Suspended As^ociaii&hs, and his Duties. 
 Sec. 50. And be it further enacted, That on becomirig satisfied, as 
 
23 
 
 specified in this Act, that any Association has refused to pay its circulat- 
 ing notes as therein mentioned, and is in default, the Comptroller of the 
 Currency may forthwith appoint a receiver, and require of him such 
 hond and security as he shall deem proper, who, under the direction of 
 the Comptroller, shall take possession of the books, records and assets 
 of every description of such Association ; collect all debts, dues and 
 claims belonging to such Association, and, upon the order of a court of 
 record of competent jurisdiction, may sell or compound all bad or doubt- 
 ful debts, and, on a like order, sell all the real and personal property of 
 such Association, on such terms as the court shall direct ; and may, if 
 necessary to pay the debts of such Association, enforce the individual 
 liability of the stockholders provided for by the twelfth section of this 
 act ; and such receiver shall pay over all money so made to the Treas- 
 urer of the United States, subject to the order of the Comptroller of the 
 Currency, and also make report to the Comptroller of the Currency of 
 all his acts and proceedings. The Comptroller shall thereupon cause 
 notice to be given, by advertisement in such, newspapers as he may di- 
 rect, for three consecutive months, calling on all persons who ma^y have 
 claims against such Assoeiation to present the same, and to make legal 
 proof thereof. And from time to time the Comptroller, after full pro- 
 vision shall have been first made for refunding to the United States any 
 such deficiency in redeeming the notes of such Association as is men- 
 tioned in this Act, shall make a ratable dividend of the money so paid 
 over to him by such receiver on all such, claims as may have been proved 
 to his satisfaction or adjudicated in a court of competent jurisdiction ; 
 and from time to time, as the proceeds of the assets of such Association 
 shall be paid over to him, he shall make further dividends, as aforesaid, 
 on all claims previously proved or adjudicated; and the remainder of 
 such proceeds, if any, shall be paid over to the shareholders of such 
 Association, or their legal representatives, in proportion to the stock by 
 them respectively held : Provided, however, That if such Association, 
 against which proceedings have been so instituted, on account of any 
 alleged refusal to redeem its circulating notes as aforesaid, shall deny 
 having failed to do so, such Association may, at any time within ten days 
 after such Association shall have been notified of the appointment of an 
 agent, as provided in this act; apply to the nearest circuit or district or 
 territorial court of the United States, to enjoin further proceedings in the 
 premises ; and such court, after citing the Comptroller of the Currency 
 to show cause why further proceedings should not be enjoined, and after 
 the decision of the court or finding of a jury that such Association has 
 not refused to redeem its circulating notes, when legally presented, in 
 the lawful money of the United States, shall make an order enjoining 
 the Comptroller and any receiver acting under his direction, from all 
 fiirther proceedings on account of such alleged refusal. 
 
 Fees for Protests, Examinations and Receiverships; Iry wTMm paid. 
 
 Sec. 51. And he it further enacted, That all fees for protesting the 
 notes issued by any such Banking Association shall be paid by the per- 
 son procuring the protestto be made, and such Banking Association shall 
 
24: 
 
 be liable therefor ; but no part of the bonds pledged by such Banking 
 Association, as aforesaid, shall be applied to the payment of such fees. 
 And all expenses of any preliminary or other examinations into the con- 
 dition of any Association shall be paid by such Association; and all ex- 
 penses of any receivership shall be paid out of the assets of such Asso- 
 ciation before distribution of the proceeds thereof. 
 
 Transfer of Assets iy an Association after Insolvency, in prejii- 
 dice of rights of Ored^tors, void. 
 
 Sec. 52. And be it further enacted, That all transfer of the notes, 
 bonds, bills of exchange, and other evidences of debt owing to any 
 Association, or of deposits to its credit ; all assignments of mortgages, " 
 sureties on real estate, or of judgments or decrees in its favor ; all de- 
 posits of money, bullion or other valuable thing for its use,\ or for the 
 use of any of its shareholders or creditors ; and all payments of money 
 to either, made after the commission of an act of insolvency, or in con- 
 templation thereof, with a view to prevent the application of its assets 
 in the manner prescribed by this act, or with a view to the preference of 
 one creditor to another, except in payment of its circulating notes, shall 
 b e utterly null and void. 
 
 On Malfeasance of Officers or Directors, franchises of Associa- 
 tion forfeited. 
 Sec. 53. And be it further enacted, That if the directors of any 
 Association shall knowingly violate, or knowingly permit any of the 
 ofScers, agents or servants of the Association to violate any of the pro- 
 visions of this Act, all the rights, privileges and franchises of the Asso- 
 ciation derived from this Act shall be thereby forfeited. Such violation 
 shall, however, be determined and adjudged lay a proper circuit, district 
 or territorial court of the United States, in a suit brought for that pur- 
 pose by the Comptroller of the Currency, in his own name, before the 
 Association shall be declared dissolved. And in cases of such violation, 
 every director who participated in or assented to the same shall be held 
 liable in his personal and individual capacity for all damages which the 
 Association, its shareholders or any other person shall have sustained in 
 consequence of such violation. 
 
 Appointment of Special Agent to examine affairs of Associa- 
 tion — his powers. 
 Sec. 54. And he it further enacted. That the Comptroller of the 
 Currency, with the approbation of the Secretary of the Treasury, as 
 often as shall be deemed necessary or proper, shall appoint a suitable 
 person or persons to make an examination of the affairs of every Bank- 
 ing Association, which person shall not be a director or other officer in 
 any Association whose affairs he shall be appointed to examine, and who 
 shall have power to make a thorough examination into all the affairs of 
 the Association, and, in doing so, to examine any of the officers and 
 agents thereof on oath ; and shall make a full and detailed report of the 
 condition of the Association to the Comptroller. And the Association 
 
25 
 
 shall not be subject to any other visitorial powers than such as are au- 
 thorized by this Act, except such as are vested in the several courts of 
 law and chancery. And every person appointed to make such examina- 
 tion shall receive for his services at the rate of five dollars for each day 
 by him employed in such examination, and two dollars for every twenty- 
 five miles he shall necessarily travel in the performance of his duty, 
 which shall be paid by the Association by him examined. 
 
 Penalty for embezzlement or misdemeam,or of Officers. 
 
 Sec. 55. And be it further enacted, That every president, director, 
 cashier, teller, clerk, or agent of any Association, who shall embezzle, 
 abstract, or willfully misapply any of the moneys, funds, or credits of 
 the Association, or shall, without authority from the directors, issue or 
 put in circulation any of the notes of the Association, or shall, without 
 such authority, issue or put forth any certificate of deposit, draw any 
 order or bill of exchange, make any acceptance, assign any note, bond, 
 draft, bill of exchange, mortgage, judgment or decree, or shall make any 
 false entry in any book, report, or statement of the Association, with 
 intent, in either case, to injure or defraud the Association or any other 
 company, body politic or corporate, or any individual person, or to de- 
 ceive any officer of the Association, or any agent appointed to examine 
 the affairs of any such Association, shall be deemed guilty of a misde- 
 meanor, and upon conviction thereof shall be punished by imprisonment 
 not less than five nor more than ten years. 
 
 Suits and pr'oceedings under this Act. 
 
 Sec. 56. And be it further enacted, That all suits and proceedings 
 arising out of the provisions of this Act, in which the 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 of the Treasury. 
 
 Suits against any Association may ie brought in any Court. 
 Proceedings to enjoi?i Comptroller, to be brought in V. S. 
 Court. 
 
 Sec. 57. And be it further enacted, That suits, actions and proceed- 
 ings against any Association under this Act may be had in any circuit, 
 district, or territorial court of the United States held within the district 
 in which such Association may be established ; or in any State, county, 
 or municipal court in the county or city in which said Association is 
 located, 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 dis- 
 trict in which the Association is located. 
 
 Penalty for mutilation of circulating notes. 
 Sec. 58. And be it further enacted, That every person who shall 
 
26 
 
 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 
 other evidence of debt, issued by any such Association, or shall cause or 
 procure the same to be done, with intent to render such bank bill, draft, 
 note, or 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 juris- 
 diction. 
 
 Penalty for forging circulating notes. 
 
 Sec. 59. And be it further enacted, That if any person shall felsely 
 make, forge, or counterfeit, or cause or procu:;e to be made, forged, or 
 counterfeited, or willingly aid or assist in falsely making, forging, or 
 counterfeiting, any note in imitation of, or purporting to be in imitation 
 of, the circulating 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 spu- 
 rious, 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. 
 
 Penalty for making plates for forging circulating notes, or 
 having hla/rik notes in possession. 
 
 Sue. 60. And be it further enacted, That if any person shall make 
 or engrave, or cause or procure to be made or engraved, or shall have 
 in his custody or possession any plate, die, or block after the similitude 
 of any plate, die, or block from which any circulating notes issued as 
 aforesaid shall have 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 thp 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 counterfeit- 
 ing any of the notes issued as aforesaid, or shall have in his custody or 
 possession any paper adapted to the making of such notes, and similar 
 to the paper upon which any such notes shall have been 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 
 
27 
 
 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. 
 
 Annual report of Comptroller reguired ; what it shall contcdn. 
 
 Sec. 61. And he it further enacted, That it shall be the duty of the 
 Comptroller of the Currency to "report annually to Congress at the com- 
 mencement of its session — 
 
 First. A summary of the state and condition of every Association 
 from whom 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 inform- 
 ation in relation to said Associations as, in his judgment, may be 
 useful. 
 
 Second. A statement of the Associations whose business has been 
 closed during the year, with the amount of their circulation redeemed 
 and the amount outstanding. 
 
 Third. Any amendment to the laws relative to banking by which the 
 system may be iniproved, and the security of the holders of its notes 
 and other creditors may be increased. 
 
 Fourth. 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. 
 
 Act of 1863 r&peaied. 
 
 Sec. 63. And he it further enacted. That 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," ap- 
 proved February twenty-fifth, eighteen hundred and sixty-three, is hereby 
 repealed : Provided, That such repeal shall not affect any appointments 
 made, acts done, or proceedings had, or the organization, acts, of pro- 
 ceedings of any Associatioii organized or in the process of orga'Aizatioti 
 under the Act aforesaid : And provided, alsor. That all Silch Associations 
 so organized oir 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 Comp- 
 troller 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 u'nder this Act, or under the Act hereby repealed ; but no such 
 
28 
 
 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 Asso- 
 
 _ elation shall be considered as a part of the circulation provided for in 
 
 'this Act. 
 
 Exeautors, Trustees, <&c., holding stock, not fersonaJZy liahle. 
 
 Sec. 63. And he it further enacted, That 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 name. 
 
 Rights of Congress reserved. 
 
 Sec. 64. And he it further enacted, That Congress may at any time 
 amend, alter or repeal this Act. 
 
 On the thirtieth day of June, 1864, Congress passed an aat enti- 
 tled " An Act to provide Internal Revenue to support the 
 Government, to pay Interest on the Public Debt, and for other 
 purpose^'' {Chap, clxxiii. U. S. Statutes at Large (1863-186A), 
 page 77), from which the following is an extract : 
 
 Sec. 110. And he it further enacted, That there shall be levied, col- 
 lected and paid a duty of one twenty-fourth of one per centum each 
 month upon the average amount of the deposits of money, subject to 
 payment by check or draft, or represented by certificates of deposit or 
 otherwise, whether payable on demand or at some future day, with any 
 person, bank, association, company or corporation engaged in the busi- 
 ness of banking; and a duty of one twenty-fourth of one per centum 
 each month, as aforesaid, upon the average amount of the capital of any 
 bank, association, company or corporation, or person engaged in the 
 business of banking, beyond the amount invested in United States bonds; 
 and a duty of one-twelfth of one per centum each month upon the aver- 
 age amount of circulation issued by any bank, association, corporation, 
 company or person, including as circulation all certified checks and all 
 notes and other obligations calculated or intended to circulate or to be 
 used as money, but not including that in the vault of the bank, or re- 
 deemed and on deposit for said bank ; and an additional duty of one-sixth 
 of one per centum each month upon the average amount of such circula- 
 tion, issued as aforesaid, beyond the amount of ninety per centum of the 
 capital of any such bank, association, corporation, company or person, 
 
29 
 
 and upon any amount of such circulation beyond the average amount of 
 the circulation that had been issued as aforesaid by any such bank, asso- 
 ciation, corporation, company or person, for the six months preceding 
 the first day of July, eighteen hundred and sixty-four. And on the first 
 Monday of August next, and of each month thereafter, a true and accu- 
 rate return of the amount of circulation, of deposit, and of capital, as 
 aforesaid, for the previous month, shall be made and rendered in dupli- 
 cate by each of such banks, associations, corporations, companies or per- 
 sons to the assessor of the district in which any such bank, association, 
 corporation or company may be located, or in which such person may 
 reside, witlT a declaration annexed thereto, and the oath or affirmation of 
 such person, or of the president or cashier of such bank, association, 
 corporation or company, in such form and manner as may be prescribed 
 by the Commissioner of Internal Revenue, that the same contains a 
 true and faithful statement of the amount of circulation, deposits and 
 capital, as aforesaid, subject to duty as aforesaid, and shall transmit the 
 duplicate of said return to the Commissioner of Internal Revenue, and 
 within twenty days thereafter shall pay to the said Commissioner of In- 
 ternal Revenue the duties hereinbefore prescribed upon the said amount 
 of circulation, of deposits and of capital, as aforesaid ; and for any 
 refusal or neglect to make or to render such return and payment, as 
 aforesaid, any such bank, association, corporation, company or person 
 so in default shall be subject to and pay a penalty of two hundred dol- 
 lars, besides the additional penalty and forfeitures in other cases provided 
 in this act ; and the amount of circulation, deposit and capital, as afore- 
 said, in default of the proper return, shall be estimated by the assessor 
 or assistant assessor of the district, as aforesaid, upon the best informa- 
 tion he can obtain ; and every such penalty, together with the duties as 
 aforesaid, may be recovered for the use of the United States in any 
 court of competent jurisdiction. And in the case of banks with branches 
 the duty herein provided for shall be imposed upon the circulation of 
 each branch, severally, and the amount of capital of each branch shall 
 be considered to be the amount allotted to such branch ; and so much of 
 an act entitled " An act to provide ways and means for the support of 
 the government," approved March three, eighteen hundred and sixty- 
 three, as imposes any tax on banks, their circulation, capital or deposits, 
 other than is herein provided, is hereby repealed : Provided, That this 
 section shall not apply to associations which are taxed under and by 
 virtue of the act " to provide a national currency, secured by a pledge 
 of United States bonds, and to provide for the circulation and redemp- 
 tion thereof;" nor to any savings banks having no capital stock, and 
 whose business is confined to receiving deposits, and loaning the same 
 on interest for the benefit of the depositors only, and which do no other 
 business of banking : And provided, further. That any bank ceasing to 
 issue notes for circulation, and which shall deposit in the Treasury of the 
 United States, in lawful money, the amount of its outstanding circulation, 
 to be redeemed at par, under such regulations as the Secretary of the 
 Treasury may prescribe, shall be exempt from any tax upon such circu- 
 lation. 
 
INDEX 
 
 NATIONAL BANK ACT OF 1864. 
 
 ' -8ECTI0H. 
 
 Actnowletenent of certificate of application 6 
 
 ActSiprpjudicial to creditors in contempjatipn of insolvency 52 
 
 Administrators holding stock as sach, rights of protected 63 
 
 Agents, Associations may become financial, 46 
 
 Agents of Associations may make examination of bonds 26 
 
 special, and duties of 47 
 
 Albany, certain Associations to redeem.at 32 
 
 . Amendments, to,law, Comptroller to suggest, 61 
 
 Congress reserves the right to make 64 
 
 Appointment of clerks in Bureau of Currency 1 
 
 Comptroller of Currency 1 
 
 Deputy Comptroller. 1 
 
 director of Association, when to be made 10 
 
 receiver 60 
 
 visitor 54 
 
 Articles of Association, changes in, restricted 12 
 
 Assessors df United States taxes may inspect lists of stockholders 40 
 
 Assets of failing Associations, disbursement of 60 
 
 Assignments made by Comptroller, evidence, when 2 
 
 Assignment of rooms in treasury for use of bureau 3 
 
 Associations, acts of, prejudicial to creditors, void : 62 
 
 amount of Capital stock of, to be certified 6 
 
 annual report of, by Comptroller. 61 
 
 articles of, changes in, restricted 12 
 
 assets of, United States to have a prior lien on 47 
 
 at certain cities may keep one half of their lawful money i-eserve 
 
 in New York... 82 
 
 at certain cities must redeem at New York at par 32 
 
 authorized to circulate their notes 23 
 
 authorized to oonunence banking 18 
 
 banking, how to organize 6 
 
 banking powers conferred upon, 8 
 
 banking usages granted to • 30 
 
 bonds deposited by, forfeited, when 47 
 
 bonds of, may be sold at auction, when 48 
 
 bonds of, may be sold. at, private sale, when 49 
 
 bonds of, transferred to Treasurer, in trust 19 
 
 capital stock of, how and when paid in 14 
 
 capital stock of, how increased and reduced, 13 
 
31 
 
 SECnoN. 
 
 Associations capital stockof, into what shares divided 12 
 
 certificate to be forwarded to Comptroller by 6 
 
 condition of, upon organization to be examined 17 
 
 corporate powers conferred upon 8 
 
 declaration of intention to form 6 
 
 directors, amount of stock to be held by 9 
 
 directors, election, number and qualification of. 9 
 
 directors, oath of, and oath to be sent to the Comptroller 9 
 
 dissolved for irregularities, when , 63 
 
 dividends, how and when to be declared by. 83 
 
 duties of,. upon suspension 46 
 
 existence of, limited to twenty years 8 
 
 failing, .duties of Comptroller towards 4*7 
 
 failing to redeem their notes, proceeding against. 46 
 
 forbidden to increase their liabilities, when 81 
 
 forbidden to issue any other than national currency notes 23 
 
 forbidden to make dividends, when 31 
 
 forbidden to pay dividends, except upon profits 38 
 
 forbidden to pay out uncurrent money 39 
 
 forbidden to pledge their own notes 37 
 
 forbidden to purchase any capital stock 35 
 
 forbidden to purchase real, estate, except 28 
 
 forbidden to receive capital stock as security 36 
 
 forbidden to withdraw capital stock 38 
 
 indebtedness of, restricted 86 
 
 individual and firm. liabilities to, restrained 29 
 
 in liquidation to receive back their bonds , 42 
 
 interest on loans prescribed to 30 
 
 interest on United States bonds to be paid to 26 
 
 limitation of, as to holding real estate 28 
 
 lists of stockholders prescribed 6, 40 
 
 may become depositaries of public funds 45 
 
 may be wound up for deficiency of redemption fund 31 
 
 may change their name 62 
 
 may enjoin proceedings against themselves 60 
 
 may go into liquidation 42 
 
 may hold mortgages for five years 28 
 
 may increase their capital 13 
 
 may obtain their bondsfrom Treasurer 25 
 
 may sell delinquent stock 15 
 
 monthly and quarterly reports to be made by. 34 
 
 must forward certificate to Comptroller. 6 
 
 name of, must be certified 6 
 
 names and residences of stockholders of 6, 40 
 
 notes of, for what to be received 23 
 
 notes of, paid at United States treasury, when 47 
 
 notes; of, penalties for counterfeiting, <fec. 59 
 
 notes of, penalties for mutilating, &c, 68 
 
 notes of, signature of 22 
 
 ofioicers of, appointment of. . , 8 
 
 oflScers of, embezzlement by. 66 
 
 officers of, false entries by 55 
 
 officers of, malfeasance of '. 63 
 
 officers of, misdemeanors of 65 
 
 place of business of, must be certified 6 
 
 place of business of,, location of 6, 8 
 
 president of, must.be a director 9 
 
 rate of interest prescribed to 30 
 
32 
 
 SBcnoir. 
 
 Asaodations, receiver of, appointment and duties of 50 
 
 reports of, Comptroller to prescribe 34 
 
 reports of, publication of 34 
 
 reports of, to be made monthly and quarterly under oath 34 
 
 reports to be made semi-annually to Treasurer 41 
 
 residence of shareholders to be certified by 6 
 
 rights of persons becoming shareholders of. 12 
 
 security for loans to be given by shareholders of 36 
 
 shares of, personal property 12 
 
 shares of, transfer of 12 
 
 suits and actions by and against 67 
 
 taxes to be paid by 41 
 
 to be notified by Comptroller not to increase their liabilities 46 
 
 to deposit additional bonds, when 26 
 
 to examine bonds annually and give certificate 25 
 
 to forfeit corporate rights, when 53 
 
 to forward certificate and articles of association 6 
 
 to furnish monthly, and to make and publish quarterly reports 34 
 
 to pay compensation of visitor. 54 
 
 to pay for protests and other expenses 61 
 
 to procure certificate from Comptroller, and publish the same 18 
 
 to receive interest on bonds 26 
 
 to receive new notes for old 24 
 
 to receive notes for circulation from Comptroller 21 
 
 to redeem at certain cities at par 32 
 
 to reserve a redemption fund : 31 
 
 transfer of bonds of, to Treasurer of the United States 16 
 
 transfer of bonds of, by Treasurer of the United States 19 
 
 usury by 30 
 
 vested with corporate powers 8 
 
 Attorneys, district, duties of 56 
 
 Auction, public, when stock may be sold at 16, 48 
 
 Authority, grant of, to commence banking 18 
 
 B. 
 
 Bad debts defined 38 
 
 Baltimore, certain Associations to redeem at. . .' 32 
 
 Banking Associations, how formed 5 
 
 powers conferred on Associations 8 
 
 usages secured to Associations 30 
 
 Banks, State and other, may organize under this Act 44 
 
 Bills of exchange, discount of, not loans 29 
 
 Bond of Comptroller and Deputy Comptroller of Currency 1 
 
 Bonds of United States defined 4 
 
 deposited by Associations, change of coupon for registered 16 
 
 change of one kind for any other kind 26 
 
 deposited by Associations to be annually examined ^ . . . 25 
 
 depreciation of 26 
 
 how and when returned 16, 26 
 
 how transferred to Treasurer in trust 19 
 
 in excess of amount required may be taken up. 16 
 
 interest on, paid, when 26 
 
 may be declared forfeited 47 
 
 may be sold at auction 16, 48 
 
 may be sold at private sale 49 
 
 must be transferred in trust 19 
 
3^ 
 
 Bonds deposited by Associations, Secretary may authorize the exchange of. , . . .■ 16 
 
 ■ who may sign memorandum of transfer of. 19 
 
 Bonds of Associations in liquidation to be returned 42 
 
 transferred by Associations, receipt must be given for. . , 19 
 
 Boston, certain Associations'may redeem at. . . i . . .■■;■ 32 
 
 Bureau of Currency established and business prescribed ; . . . :..... 1 
 
 Burning of mutilated notes prescribed *....•..... j.. 24 
 
 redeemed notes prescribed '-. .....; 43 
 
 Business of Association, place of. . . . . .........', 6 8 
 
 0. 
 
 Capital stock. Associations forbidden to withdraw then- 38 
 
 of Associations falling below , the minimum amount must be 
 
 made up ig 
 
 Capital atoct of Associations, how apd when paid in , ^,.^1 14 
 
 how increased .'...... .,>.'^ 13 
 
 how reduced; * ...^ .;. . . ... 13, 88 
 
 not to be pledged as security. .'^ ■-•,-.. ■ , 35 
 
 . shares of, prescribed ^'■. ."..'!..... 12 
 
 semi-annual reports of, to Treasurer. ....... 41 
 
 tax on portion of. 41 
 
 of State bants, when converted into National , 44 
 
 Cashier of Association, appointment of 8 
 
 to keep list of names of stockholders , 40 
 
 to sign notes 22 
 
 Certificate of burnt notes to be given. , .;.'.. .i.,... 24, 43 
 
 Comptroller to National banks converted from State. .....' 44 
 
 examination of bonds deposited j ^. , . . 25 
 
 increase of capital paid in required. .....'. '. i^^^j. , 13 
 
 organization. Comptroller to give. ..../... 18 
 
 organization, preliminary, by Associations. ........... .„ 6 
 
 organization, preliminary, by State banks ,,!',-. ......... 44 
 
 orgailization, publication of. ...... . .'. ...,. ........... 18 
 
 Certificates, Certified copies of, by Comptroller,' evidence 6 
 
 clearing-house , ....'. 31 
 
 executed by Comptroller, evidence, when 2 
 
 Charleston, Associations may hereafter redeem at..... , 32 
 
 Chipago, Associations may redeem at '. 32 
 
 Cincinnati, Associations may redeem at.. .... ., , ,. 32 
 
 Circulating noties lost, how replaced ■ 24 
 
 semi-annual report of, to Treasurer. 41 
 
 tax on 41 
 
 Circulation of notes by Associations authorized 23 
 
 Clearing-house certificates. 81 
 
 Cleveland, Associations may redeem at. . . , 32 
 
 Clerks in Currency Bureau, appointment and classification of 1 
 
 to be annually returned. 61 
 
 Commercial centers, at which certain Associations miist redeem. 31 . 
 
 Commission, special, may be appointed, when 18 
 
 Comptroller of Currency, annual report of. , 61 
 
 appointment of ^ ■ • • • • 1 
 
 assignments made by, evidence 2 
 
 bond oT ...,.,.. .:,,.... 1 
 
 certificates made by, evidence.. J % 
 
 certificates of capital, paid in, to give. '. , 13 
 
 conveyances executed by, evidence ". .•••■.•• ^ 
 
 copies of papers certified by, evidence '....'. 2 
 
34 
 
 sicno)). 
 
 Comptroller^ duties of, towards failing Aesp^ations , 47 
 
 duties of, upon report of receiver 80 
 
 forbidden to be interested in Associations. 1 
 
 list of stockholders, &e., to be transmitted to. . , -, 40 
 
 may appoint receiver, when, 50 
 
 may authorize Associations to receive interest on their bonds, 26 
 
 may declare bonds forfeited, , , 47 
 
 may direct return of bonds to Associations 26 
 
 may examine aSiara of associates by commission 18 
 
 may sell bonds at auction • . . • 48 
 
 may sell bonds at private sale 49 
 
 montlily and quarterly reports to be made to 34 
 
 oath of. • . ■ 1 
 
 oath of directors to be sent to. 9 
 
 office and term of office prescribed , , . 1 
 
 oiHceB in treasury to be assigned to .8 
 
 proceedings by, against failing Associations. i1 
 
 receiver to be appointed by, and to report to fiO 
 
 removal of, &om office,. 1 
 
 salary of I 
 
 seal of bureau to be devised by 2 
 
 to advise Associations of transfers,. ^ 19 
 
 to advise Associations of sales of bonds at auction 48 
 
 of Currency to cause plates for notes to be engraved 22 
 
 to control plates for notes.... 41 
 
 to demand the deposit of additional bonds, when 26 
 
 to deposit plates, &c., in fire-proof vaults <. . . 3 
 
 to determine the amount to which Associations may increase their 
 
 capital. 13 
 
 to devise a seal.: 2 
 
 to direct publication of certificate, when. 18 
 
 to examine affairs of Associations, when. 17 
 
 to furnish furniture, steitionery, i!ic 3 
 
 to furnish notes for Associations to issue 22 
 
 to give Associations a. certificate... 18 
 
 to give certificate of increase of capital 13 
 
 to give notice of payment of notes at treasury 47 
 
 to have access to books of Treasurer ., 20 
 
 to keep record of bonds transferred 19 
 
 to not£f^ Associations not to increase their liabilities. 46 
 
 tonotify Associations of deficiency of redemption fand..;..., 34 
 
 to prescribe the fbrm of quarterly reports ; 34 
 
 to receive and exchange worn-out notes 24 
 
 to record transfers of Donds from Associations. 20 
 
 to record and preserve certificate of association. 6 
 
 to supply ftotes to Associations upon transfer of bonds 21 
 
 verified lists of names, Ac,, of shareholders tolDe sent to. 40 
 
 visitor to be appointed by ,. ., 64 
 
 of Currency, Deputy; (See Deputy Comptroller.) 
 
 Condition of Associations to be examined by Comptroller. .... ....... 17 
 
 Congress, rights of, to amend this Act, reserved. ......:;...,. 64 
 
 Conversion of State banl^ into National ; 44 
 
 Conveyauces made by Comptroller, evidence 2 
 
 Copies of papers certified to by Comptroller, evidence 2 
 
 annual report of Comptroller, number of v 61 
 
 Corporate powers conferred upon Associations 8 
 
 Counterfeiting, &c., notes of Associations, punishment for. . .' 69 
 
 Courts, jurisdiction of '.....' 67 
 
35 
 
 siiCTioa. 
 
 Creditors, acts by Associations prejudicial to, void 62 
 
 of faimig Associations to be notified BO 
 
 Currency act, rejpeal of former.. ,.......,, 12 
 
 Currency Bwean, appointment and classification of clerks in^ and business of . , . 1 
 
 ■ clerks in, return of, to be annually made 61 
 
 D. 
 
 ' Day of election, who may determine.. 10 
 
 Debts, bad, defined 38 
 
 Delinquent shareholders, proceedings against 16 
 
 Denominations of notes to be circulated 22 
 
 Depositories of public moneys. Associations may become 46 
 
 to receive notes of Ifational Banks at par 46 
 
 Deposits, semi-annual report to Treasurer, average of 41 
 
 tax on 41 
 
 Deputy Comptroller of Currency, appointment, bond, duties, and oath of 1 
 
 forbidden to be interested in; Associations under 
 
 this Act 1 
 
 Deputy Comptroller of Currency, salary of 1 
 
 Detroit, Associations may redeem at par at.. > 32 
 
 Devices on notes. Secretary of Treasury to regulate. 22 
 
 Directors ef Association, appointiaent of, « 10 
 
 consent o^ ifor transfer of stock, when Tequired. 8 
 
 election of , i.. 10 
 
 knowingly permitting the violation of any laws 63 
 
 malfeasance of. ...•••, 63 
 
 niunber, oath, and qualification of 9 
 
 president must be one. 9 
 
 to be examined under oath, when ; 17 
 
 to control delinquent stock, when 16 
 
 Discounting bills of exchange not loaning money. , 29 
 
 Discount or purchase of bills of exchange not usury. 30 
 
 District attorneys, duties of, under this law 66 
 
 Dividends forbidden, when 31,38 
 
 Dividends restricted to net prbfits : 38 
 
 semi-annual, how to be made, and surplus fund to be set aside from . . 33 
 
 E. 
 
 Election of directors > • 10 
 
 rights of shareholders at 11 
 
 Embezzlement, false entries, <fec., by officers 65 
 
 Engraving of counterfeit plates, punishment for. .'. 60 
 
 Evidence, certain instruments of writing executed: by Coniptroller. 2 
 
 certified copies of certificates made by Cbmfttroller 6 
 
 Examination of affairs of Association by visitor. 54 
 
 affairs of Associations by special commission. 18 
 
 officers under oath 1'7,64 
 
 bonds deposited by Associations to .be annually made 25 
 
 Examination preliminary, and other expenses, how paid 61 
 
 Exchaage of bonds deposited, how effected ,16,26 
 
 Executors holcKng stock, rights of, protected. ,63 
 
 Expenses of executmg this Act, how paid ,r- • • , 41 
 
 visitorial sxaminatian, what, and how paid. 64 
 
36 
 F. 
 
 SBOTION. 
 
 Fake entries by officera, and punishment for ."J , 65 
 
 Fees for examinations, protests, and receivers, how paid. ..'.,., ^ ' 51 
 
 Financial agents. Associations inay become..^ ....'.'.." 46 
 
 ■ Firms, liabilities of, to Associations, restrained. ..''...''.'. 29 
 
 Forfeiture of corporate rights of Association for malfeasance B3 
 
 Forgery, &c., of notes 59 
 
 Frauds, &e., by officers 55 
 
 Fuel, fiarniture, <fec., of bureau. Comptroller to furnish 3 
 
 Fund for redemption of issue tp be reserved R, .>«|.. .. .> ,irw.'ii«i«. • • ■ 31 
 
 • ' ' ' G. ^'"y 
 
 Guardians holding stock as such, rights of, protected . . j i .1 . . . 6i3 
 
 ^Jlypothecation of notes by Association forbidden ^ -.l....... »..; 8T 
 
 Impression of seal of bureau to be filed In office of Secretary of State 2 
 
 whenvalid.; k 2 
 
 ; Increase of capital stock. Comptroller to determine. .'.\ .':'..'..'. 13 
 
 liabilities by Associations forbidden', when 31 
 
 Indebtedness by Associations limited ...1. 36 
 
 Individual liabilities to Associations restricted... .. . . . ^. 29 
 
 Injunction against Comptroller may be had, when. 50 
 
 Insolvency, acts prejudicial to creditors in contemplation of 52 
 
 Installments on capital stock, how paid 14 
 
 Interest on bonds deposited. Associations to refeeiVe 26 
 
 to be retained by Comptroller, when 26 
 
 on loans may be retained in advance. 30 
 
 rate of, established, and penalty for usurious.. . . ; SO 
 
 Interested in Associations under this Act, Comptroller and Deputy Comptroller 
 
 forbidden to be i'..-. ;i.. ;.'..... '■' ^^ 
 
 J. 
 
 Jurisdiction of courts ;..,,..../... ....'....' ^7 
 
 ,. ■. -• .- L. ' ''':i"':'Z. . 
 
 Leavenworth, certain Associations may redeem at par at . -, 32 
 
 Liabilities, Associations forbidden to increase their, when 31 
 
 of individuals and firms to Associations restricted 29 
 
 of shareholdei'S to creditors declared 12 
 
 Liability of shareholders in banks of $5,000,000 and upwards. 12 
 
 Lien of United States upon assets of Association.. ... ,...4, 47 
 
 Lights, Ac, for use of bureau. Comptroller to fupnish. ,. . . 4 ... . 3 
 
 Limitation of amount of notes and of small notes to be circulated. . . . k. 22 
 
 Associations in the holding of real estate 28 
 
 existence of Associations . ..... 8 
 
 indebtedness of Associations, , ,. . 3C 
 
 Liimdation of Associations, how effected. . . , 42 
 
 j Lists of names and residences, &o., of stpckhglders, to be transmitted to Comp- 
 troller, with application . ,' : — 6,40 
 
 Lists of names, residences, &c., verified, to be annually sent to the Comptroller. 40 
 
 to be, retained in office 40 
 
 Listsof stockholders to be open to the inspection of the United States assessors 40 
 
 Loans, security to be given for prescribedi . . . . ..; .... ; 35 
 
 Lost; circulating notes, how replaced. .... ,......., ,,/. 24 
 
S7 
 M. 
 
 BECTION. 
 
 Malfeasance by directors, or permitted by them. 63 
 
 Memorandum of transfer upon bonds, who may sign. ' 19 
 
 Milwaukee, Associations may redeem at, at par 32 
 
 Misdemeanor of officers, and punishment for 27 
 
 Money, uncurrent or under par. Associations forbidden to pay 39 
 
 Monthly reports. Associations to famish 34 
 
 Mortgage, how long Associations may hold a 28 
 
 Mutilated notes, burning of, prescribed < . 24 
 
 Mutilation of notes of Association, penalty for 58 
 
 Name of Association may be changed 62 
 
 Name of Association to be set forth in certificate 6 
 
 Names of stockholders, residences and amount of stock held, to be kept by offi- 
 cers, and verified list transmitted to Comptroller of Currency. 40 
 
 New Orleans, Associations may redeem at par at 32 
 
 New York, certain Associations must redeem at par at 32 
 
 Notary pulilic, protest of notes by 46 
 
 fees of, for protest, how paid 51 
 
 Notes of Associations, amount of, to be supplied to each Association 21 
 
 annual report of issue of, to be made 61 
 
 burning of, and certificate of burning mutilated. 24 
 
 Comptroller to supply, for circulation 21 
 
 denominations of, and devices upon, prescribed, "22 
 
 disfigurement and mutilation of 58 
 
 expenses of preparing, how paid 41 
 
 for what to be received ; 23 
 
 fund for the redemption of, to be maintained 31 
 
 going into liquidation, paid by Treasurer, when. 42 
 
 paid at the treasury of the United States, when 47 
 
 paid at the treasury of United States, how disposed of. . . 47 
 
 penalty for the forgery, &c., of ; 59 
 
 plates of. Comptroller to control 41 
 
 pledge of, by Associations forbidden 37 
 
 protest of 46 
 
 signatures of officers upon. 22 
 
 received at par by financial agents 45 
 
 to be received by other Associations 32 
 
 to be supplied by Comptroller for circulation 21 
 
 redeemed, burning of, prescribed , 43 
 
 tax on circulating 41 
 
 what shall be expressed upon the face of 22 
 
 what officers of Association must sign 22 
 
 whole amount of, to be issued 22 
 
 worn and mutilated, to be exchanged for new 24 
 
 worn and mutilated, wV^A exchanged, how canceled 24 
 
 Notification to Comptroller of the amount of stock paid in required 14 
 
 Number of copies of annual report of Comptroller.., 61 
 
 persons requisite to organize a Batdring Association 5 
 
 o. 
 
 Oath of office of Comptroller of Currency, and when it must be taken 1 
 
 Deputy Comptroller, and when it must \^ taken 1 
 
 directors of Association to be transmitted to Comptroller 9 
 
 Officers of Association, howappointed ^. .. 8 
 
 malfeasance of, hpw punished. ....;....'. v'."., 53 
 
'38 
 
 SEOTION. 
 
 Officers of Association, misdemeanors of.'defined 27, 65 
 
 Offices in Treasury building to be assigned for Currency Bureau 3 
 
 Organization, cer^ficate of State banks converting into national 44 
 
 speciiicatjon's of. > r 6 
 
 P. 
 
 Paper similar- to Association bank-notepaper, JieilaltieB for being in possession of 60 
 
 -Payment by Associations of unourrent' money forbidden 39 
 
 Penalties against banks -for failing to furnisli dnarterlv report 34 
 
 failing to report notes issned ' 41 
 
 neglecting to maintain redemption fand 31 
 
 neglecting to report average circolstion, &a 41 
 
 neglecting to select a bank of redemption 32 
 
 neglecting to sell stock received as security. 35 
 
 I usury... , 30 
 
 for disfigurement,^i&utilation, &c., of notes i.i 58 
 
 for being found with bank-note paper j i .... .. 60 
 
 for counterfeiting, uttering, &c ; 59 
 
 for engraving plates or having them in possession, &e 60 
 
 Perjury, false reports made under oath to be deetaed 34 
 
 Philadelphia, Associations may redeeril at par at. 32 
 
 Kttsburg, Associations may redeem at par at 32 
 
 Place of business of Assooiataon deterimned 8 
 
 Pla.tes, fraudulent engraving of 60 
 
 Plates to be kept in fire vaiUts 3 
 
 Pledge of their own notes by Assotiallons forbidden SI 
 
 President of. Association, how appointed 8 
 
 Association must be a dii-eetor 9 
 
 United States to appointand remove' Comptroller of Currency 1 
 
 ProceedingSiagainst failing Association 46 
 
 Profits, surplus fund to be set aside from. '.. i 33 
 
 Protest of notes of Associations 46 
 
 fees for, bi&w paid 51 
 
 •Proxy, shareholders may vote-hy 11 
 
 . Public moneys may be aepdsited in banks of Association 46 
 
 sE^blication of authority to commence .banking : 18 
 
 Purchase or discount of bills of exchange tot' usury. 30 
 
 Qualifications of directors » 
 
 . Quarterly reports of Associations, Comptroller to prescribe 34 
 
 penalty for neglecting to furnish 34 
 
 publication of 34 
 
 K. 
 
 llate of Intei'est on loons, &d., established 30 
 
 Beal estate, limitation of A^dciations to hold 28 
 
 BecaU of bonds deposited in'exceas of the requirements of the Act 16 
 
 Receiver of Association, appointment and duties of , 60 
 
 appointed on failure to maintain lawful money reserve . 3 1 
 appointed on failure to maintain capital stock at pre- 
 scribed amount.... 15 
 
 appointed on failure to sell stock received as security. . 35 
 
 may be enjoined 50 
 
 payment of fees of. T.>... 51 
 
 Bedemptions at par, where to be made 32 
 
89- • 
 
 SECTION. 
 
 Beduction of capital stock, how effectcji, , ;.,... 13 
 
 riglit of, reserved 88 
 
 Begister of United States, signature of, required on notes. 22 
 
 Bemoval of Comptroller of Currency. 1 
 
 Beport, annual, of Comptroller .to' Congr08B 61 
 
 monthly, Associations to ma^e. 34 
 
 quarterly, Associations to make and publish 34 
 
 quarterly, Comptroller to prescribe form o£ , 34 
 
 quarterly. Comptroller to publish abstracts of '. 34 
 
 _ Beports to be made to Treasurer of average circulation, deposits, semi-annually. 41 
 
 " Beserve of lawful money to be maintained 31 
 
 Besidences of shareholders to be returned under oath 40 
 
 Richmond, redemptions at par may^ hereafter be made at. 32 
 
 Bights of administrators, executors, guardians, and trustees, holding stock as 
 
 such. 63 
 
 Associations reserred,, on repeal of former Act. , 62 
 
 Congress to amend Act reserveil 64 
 
 privileges, and firanchises of Assgciatious forfeited,^ when 63 
 
 s. 
 
 Salary of Comptroller and Deputy Comptroller of Currency 1 
 
 San JFVancisco, Associations may redeem at par at. . . . 32 
 
 Seal of Bureau of Currency and impression of, when valid. 2 
 
 description and impression of, to be filed in the De- 
 partment of State 2 
 
 of Treasury to appear on aU notes. 22 
 
 Secretary of Treasury, clerks of bureau appointed by 1 
 
 Comptroller of Gra^enoy nominated by 1 
 
 Comptroller of Currency under general direction of . : . . 1 
 
 disposition.of notes paid at Treasury ^egulatec^ by 47 
 
 engraving of plates directed by : 22 
 
 exchange of old notes for new, regulated by 24 
 
 oiSces for bureau to be assigned by. 3 
 
 seal of bureau to be approved by 2 
 
 Secretary of State, certificate of approval of seal and impression of same to be 
 
 filed in the office of 2 
 
 Security for loans, capital stock forbidden to be received as 35 
 
 Semi-annual dividend,.how declared. 33 
 
 Senate to confirm.appointment of Comptroller, 1 
 
 Shareholder, delinquent,, proceedings against : 16 
 
 Shareholders, jiabifities of, in banks, of $6,000,000 and upwards 12 
 
 liabilities of,. to creditors. 12 
 
 may determine day of election, when 10 
 
 may determine to close Association, when 42 
 
 rights.of, upon receiving transfers of stock 12 
 
 securities for loans required from. , 35 
 
 votft of, by proxy, and when not entitled to vote 11 
 
 Shares of stock personal property 12 
 
 transfer of • • 8 
 
 Signatures of Officers of Association to appear on notes 22 
 
 Treasurer and Begister upon. ,.... 22 
 
 Small notes, limitation of amount to be issued 22 
 
 Solicitor of Treasury to supervise suits under this law '. 86 
 
 Spurious notes, penalty for having, uttering, <fec._ 69 
 
 State banks, conversion of, into national, and capital of, when converted 44 
 
 State taxation of national Associations 41 
 
 Stationery of bureau, Comptroller to furnish 3 
 
• 40 
 
 . . SECTION. 
 
 St. Louis, Associations may redeem at par at.. . . ... '. . .'. . ... i . . • . ■ •• °~ 
 
 Stock of delinquent stockholders^ disposition of. .-. ••••,••■ J® 
 
 Suits under this Act, Solicitor of Treasury to supervise s. . . . .'■ yV :W- 86 
 
 Surplus fund to be established , »...:.. ••'"'*'•.> •^•''- ^^ 
 
 Surrender of boiuds of United States by Associations.. ^ . . . ; ■ ■ .^i^'l'j^-- 19 
 
 to Associations • . ..■.."';'■ 26 
 
 T. ' '■"■" 
 
 Taxation of national Associations by States ; 41 
 
 Tax on average amount of capital stock not in United States bon s 41 
 
 circulating notes and deposits 41 
 
 Term of office of Comptroller and Deputy Comptroller of Currency! 1 
 
 Transfer of United States bonds by Associations to Treasurer, amoimt of. 16 
 
 by Associations to Treasurer, how made ;.. .. 19 
 
 from Associations by Treasurer, how ihade ... . 19 
 
 from Associations to be recorded • • ■ • ■ 20 
 
 Treasurer of United States, re-transfer of bonds by v.' . 19 
 
 signature of, to appear on notes^ 22 
 
 to have access to books of Comptroller 20 
 
 to pay notes of Association in liquidation 42, 
 
 to receive and hold bonds in trust 16 
 
 " to reserve one-half of one per centum semi-annually . 21 
 
 Treasury, notes of failing Associations paid at the United States. 47. 
 
 Treasury, Solicitor of the, to supervise suits under this Act 66 
 
 IT. 
 
 Uncurrent money, Associations forbidden to pay out. .' i 89 
 
 Uni|ted States assessors to inspect lists of stockholders 4^) 
 
 United States bonds defined • 4 
 
 transfer of, by Associations to Treasurer of United States. . 19 
 
 ., . transfer of, from Associations by Treasurer. 19 
 
 Usury by Associations ; 30 
 
 Utterance of forged, counterfeit, Ac, notes .,.' 59 
 
 V. ■ - '■■■'; 
 
 Vacancy of directors, how filled ..<..'...:.... 10 
 
 "Valuables, note-plates, Ac., to be kept in fire-proof vaults 3 
 
 Vaults, fire-proof, to be assigned to Comptroller. 3 
 
 Vice-president of Association ....;. 22 
 
 Visitor of Association, appointment and compensation of. .' 54 
 
 paymentof. 61,64 
 
 Void, acts of Assoeiation prejudicial to creditors, when. 52 
 
 Votes, number of, shareholders entitled to, and regulation of, by proxy 1] 
 
 when shareholders to lose their. , \\ 
 
 Washington, D. C, Associations may redeem at par at 32 
 
 Withdrawal of capital by Association forbidden 3g