1. The present banking system was established by an act of Congress in 1863. The plan is quite different from any before in use, and commends itself to the whole country by the stability it gives to the currency in use in the transaction of its business, and the security it furnishes against loss of values common under the old systems. They are managed by private parties and corporations, apart from the government, but under a certain degree of supervision, and by its authority. By the act referred to any number of persons not less than five may associate themselves together for the purpose of banking, by compliance with the following conditions: 2. First: They must, under their hands and seals, make a certificate which shall specify—
1. The name assumed by such association.
2. The place where its business is to be conducted.
3. The amount of its capital stock (which cannot be less than $50,000), and the number of its shares.
4. The names of its shareholders, and the number of shares held by each.
5. The time when such association shall commence business.
6. A declaration that said certificate is made to enable such persons to avail themselves of the advantages of this act.
3. This certificate must be properly acknowledged before some competent person, and must be sent to the comptroller of the currency in the Treasury Department, to be recorded and kept by him. When this, and all other acts which the law[284] requires, has been done by the association, the comptroller of the currency gives them a certificate under his hand and official seal, to that effect, and that they are authorized to commence business. This constitutes the association a corporation. They have the right to make and use a common seal, and have all the rights, and are liable to all the responsibilities of ordinary legalized corporations; and may exist not to exceed twenty years from the passage of this act. Every shareholder is made personally liable for the debts of the association or bank, to the amount of the par value of his stock.
4. In order to secure the holders of bills issued by these banks, they must deposit with the Treasurer of the United States, United States bonds bearing interest to an amount not less than one-third of the capital stock paid in. These bonds are safely kept by the Treasurer. The comptroller of the currency then issues to the bank an amount of bank notes equal to the amount of bonds thus deposited, less ten per cent. In case the bank should fail to redeem its circulating bills, its bonds are sold, and with the proceeds the comptroller of the currency redeems them, or orders them to be paid at the United States Treasury. ............