and twenty-eight, fifty-two hundred and twenty-nine, fiftytwo hundred and thirty-four, and fifty-two hundred and thirty-seven of the Revised Statutes shall be applicable in the case of the failure of any national banking association to redeem in compliance with law the national reserve notes issued to it.

Assessment in SEC. 24. That whenever the Comptrollers of the Currency case of deficiency in bank note shall ascertain what deficiency, if any, exists between the guaranty fund. aggregate collection for the benefit of the guaranty fund in the case of any failed bank and the amount of its national currency notes redeemed and to be redeemed from the said fund, he shall assess such deficiency upon all the national banks in proportion to their national currency notes outstanding at the time of the failure of such bank, said assessment, however, not to exceed in any one year one per centum of the amount of such circulation of the several banking associations, respectively.

Guaranty fund may be invest

States.

SEC. 25. That the Comptrollers of the Currency be, and ed in obligations they are hereby, authorized, in their discretion, to cause to of the United be invested in any interest-bearing obligation of the United States, at a price not greater than a premium of six per centum, any portion of the guaranty fund herein before provided for; and such securities shall be held and disposed of for the benefit of such fund.

Interest to con- SEC. 26. That all interest accruing from the investment stitute fund supplementary to of any portion of the aforesaid guaranty fund, and all funds bank-note guar- received in payment of the taxes on circulation provided

anty fund.

Redemption

fund.

Liability of United States

for in this act, shall be held in the division of issue and redemption in gold coin or in some interest-bearing obligation of the United States, and shall be supplementary to the guaranty fund, each banking association being credited with its proper share thereof.

SEC. 27. That the fund of five per centum of outstanding national bank notes required to be kept on deposit by every national banking association for the current redemption of the circulating notes of such association shall be required to be equal to five per centum of the national reserve notes issued to it and of its national bank notes outstanding, and shall be in gold coin of the United States; and the Comptrollers of the Currency shall have authority to provide for the redemption of said national bank notes and national reserve notes at any or all of the subtreasuries of the United States. Said notes shall be paid in gold coin of the United States, and shall thereupon be returned to the banks to which they were originally issued, subject to the limitations in sections twenty and twentythree.

SEC. 28. That so much of section three of the act of June for redemption. twentieth, eighteen hundred and seventy-four, entitled "An act fixing the amount of United States notes, providing for a redistribution of the national bank currency, and for other purposes," as reads "And when the circulating notes of any such associations, assorted or unassorted, shall be presented for redemption in sums of one thousand dollars, or any multiple thereof, to the Treasurer of the United States, the same shall be redeemed in United States

notes," be amended to read: "And when the circulating notes of any such associations, assorted or unassorted, shall be presented for redemption in sums of one thousand dollars, or any multiple thereof, at the Treasury, or at such subtreasuries as may be designated by the Comptrollers of the Currency, the same shall be redeemed in gold coin of the United States. But nothing in this act contained shall be construed to impose upon the United States any liability for the redemption of the notes of any national banking association, beyond the proper application of the proceeds of the bonds and of the redemption and guaranty funds deposited with the division of issue and redemption and the enforcement of the remedies by this act provided."

cash reserves to

SEC. 29. That every national banking association shall One-half of at all times have on hand, in gold coin of the United be held in gold. States, an amount equal to at least fifty per centum of the cash reserve required by law to be held against deposits: Provided, That nothing in this section, except as expressly provided, shall be construed to alter or in any way affect the provisions of existing law governing the maintenance of reserves.

lation.

No contribution to the guaranty fund provided for in section twenty-three of this act shall be counted by any national banking association as a part of its lawful reserve. SEC. 30. That when the amount of the national currency, Tax on circunotes of any national banking association issued under this act shall, together with its national-bank notes outstanding, exceed eighty per centum of its capital, every such national banking association shall pay, on or before the last day of every month, to the division of issue and redemption a tax imposed at the rate of one-half of one per centum per month upon the average daily amount of said national currency notes in circulation in excess of eighty per centum of its capital stock, and which shall not have been returned to the comptrollers for cancellation or covered by an equal amount of gold coin deposited with the First Comptroller for the retirement of such notes.

SEC. 31. That every national banking association shall, within five days from the first day of each calendar month, make a return, under the oath of its president or cashier, to the Comptrollers of the Currency, in such form as they may prescribe, of the average daily amount of its nationalbank notes and national currency notes in circulation during the calendar month next preceding; and every such association shall, before the last day of such calendar month, pay to the division of issue and redemption, in lawful money, the full amount of the tax imposed in section thirty of this act; and whenever any association fails to pay the taxes imposed by this act, the sums due may be collected in the manner provided for the collection of taxes, or said First Comptroller may reserve the amount so dué out of the interest as it may become due on any bonds deposited with him by such defaulting association; and while such default continues no further amount of circulating notes shall be issued to such defaulting association.

Reports on cir. lection of taxes.

culation and col.

Tax on fran

chise.

Banks going

SEC. 32. That every national banking association shall pay to the Treasurer of the United States each half year, in the months of January and July, on or before the thirtieth day thereof, a tax of one-eighth of one per centum upon the value of its franchise, as measured by the aggregate amount of its capital, surplus, and undivided profits upon the last day of the calendar month next preceding. But in the case of any national banking association taking out reserve notes this tax shall be remitted, at the rate of one-half of one per centum per annum, on the amount of the reserve notes issued to it and outstanding. The taxes thus paid to the Treasurer of the United States shall be held as a separate fund for paying the expenses of the office of the Comptrollers of the Currency and the expenses of issuing and redeeming the several classes of notes as provided in this act. And the surplus, if any, shall be covered into the Treasury of the United States as a miscellaneous receipt. Sections fifty-two hundred and fourteen, fifty-two hundred and fifteen, fifty-two hundred and sixteen, and fifty-two nundred and seventeen of the Revised Statutes of the United States are hereby repealed. But nothing in this section contained shall be so construed as in any manner to release any national banking association from any liability for taxes or penalties incurred prior to the passage of this act.

SEC. 33. That every bank going into liquidation, volunnto liquidation. tary or involuntary, shall, prior to the payment of its creditors other than noteholders, and the distribution of any of its assets to its shareholders, deposit with the First Comptroller gold coin of the United States to such an amount that its total deposits of such gold coin shall equal the full amount of its outstanding national currency notes and its assessments provided for by this act.

Capital required.

Branch banks authorized.

Bank notes not payable

SEC. 34. That section fifty-one hundred and thirty-eight of the Revised Statutes of the United States be amended to read as follows: "No association shall be organized under this title in a city the population of which exceeds fifty thousand inhabitants with a less capital than two hundred thousand dollars. No association shall be organized with a less capital than one hundred thousand dollars, except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Comptrollers of the Currency, be organized in any place the population of which does not exceed six thousand inhabitants, and that banks with a capital of not less than twenty-five thousand dollars may, with the approval of the Comptrollers of the Currency, be organized in any place the population of which does not exceed three thousand inhabitants."

SEC. 35. That it shall be lawful for any national banking association to establish branches under such rules and regulations as may be prescribed by the Comptrollers of the Currency.

SEC. 36. That so much of section fifty-one hundred and United States. by eighty-two of the Revised Statutes of the United States as provides that the circulating notes of national banking associations shall be received at par "for all salaries and

other debts and demands owing by the United States to individuals, corporations, and associations within the United States, except interest on the public debt and in redemption of the national currency," be, and the same is hereby, repealed.

Examination

SEC. 37. That the examination of the affairs of every of banks. national baking association authorized by existing laws shall take place at least twice in each calendar year, aud as much oftener as the Comptrollers of the Currency shall consider necessary in order to furnish a full and complete knowledge of its condition; and the person making such examination shall have power to call together a quorum of the directors of such association, who shall, under oath, state to such examiner the character and circumstances of such of its loans or discounts as he may designate; and from and after the passage of this act all bank examiners shall receive fixed salaries, the amount whereof shall be determined by the Secretary of the Treasury; but the expense of the examination herein provided for shall be assessed by the Comptrollers of the Currency upon the associations examined.

Loans or gra

SEC. 38. That no association shall hereafter make any tuities to examloan or grant any gratuity to any examiner of such associ- iners forbidden. ation. Any association offending against this provision shall be deemed guilty of a misdemeanor, and shall be fined not more than one thousand dollars and a further sum equal to the money so loaned or gratuity so given; and the officer or officers of such association who shall make such loan or grant such gratuity shall be likewise deemed guilty of a misdemeanor, and shall be fined not to exceed five hundred dollars. And any examiner accepting a loan or gratuity from any association examined by him shall be deemed guilty of a misdemeanor, and shall be fined not more than five hundred dollars and a further sum equal to the money so loaned or gratuity given, and shall be forthwith dismissed from the service.

SEC. 39. That the Comptrollers of the Currency, in addition to the reports provided for by existing laws, shall have authority to call for such other reports, regular or special, as he may deem advisable; and such reports shall be rendered in such form as the Comptrollers may prescribe; but nothing herein contained shall be construed to require the publication of such additional reports by each association in the manner prescribed for other reports now rendered.

Extra reports provided for.

SEC. 40. That after the passage of this act no national Reserve notes required on orbanking association shall be granted an extension or re-ganization. newal of its charter, and no national banking association shall be granted a certificate of organization, unless such association shall have taken out in the manner prescribed herein an amount of national reserve notes equal to at least twenty-five per centum of its capital, subject to the exemptions provided in section nineteen of this act.

SEC. 41. That any national banking association hereto One year for reorganization. fore organized may, at any time within one year from the passage of this act, and with the approval of the Comptrol

State banks

under this act.

lers of the Currency, be granted, as herein provided, all the rights and be subject to all the liabilities of national banking associations organized hereunder: Provided, That such action on the part of such associations shall be authorized by the consent in writing of shareholders owning not less than two-thirds of the capital stock of the association. Any national banking association now organized which shall not within one year after the passage of this act become a national banking association under the provisions of this act, and which shall not place in the hands of the Treasurer of the United States the sums hereinbefore provided for the redemption and guaranty of its circulating notes, or which shall fail to comply with any other provision of this act, shall be dissolved; but such dissolution shall not take away or impair any remedy against such corporation, its stockholders or officers, for any liability or penalty which shall have been previously incurred.

SEC. 42. That any bank or banking association incorpomay reorganize rated by special law of any State, or organized under the general laws of any State, and having a paid-up and unimpaired capital sufficient to entitle it to become a national banking association under the provisions of this act, may, by the consent in writing of the shareholders owning not less than two-thirds of the capital stock of such bank or banking association, and with the approval of the Comptrollers of the Currency, become a national bank under this system, under its former name or by any name approved by the Comptrollers. The directors thereof may continue to be the directors of the association so organized until others are elected or appointed in accordance with the provisions of law. When the Comptrollers of the Currency have given to any such bank or banking association a certificate that the provisions of this act have been complied with, such bank or banking association, and all its stockholders, officers, and employees, shall have the same powers and privileges and shall be subject to the same duties, liabilities, and regulations in all respects as shall have been prescribed for associations originally organized as national banking associations under this act.

Extension of powers of banks.

Modification of

of corporate existence.

SEC. 43. That section fifty-one hundred and thirty-six of the Revised Statutes is hereby amended by inserting after the word "discounting," in the seventh clause relating to incidental powers, the words "buying, selling," so that such portion of said clause will read as follows: "By discounting, buying, selling, and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt."

SEC. 44. That so much of section nine of an act entitled act for extension An act to enable national banking associations to extend their corporate existence, and for other purposes," approved July twelfth, eighteen hundred and eighty-two, as reads as follows, "And no national bank which makes any deposit of lawful money in order to withdraw its circulating notes shall be entitled to receive any increase of its circulation for the period of six months from the time it made such