Receivers have also been appointed, since the date named, for the following banks which had previously gone into voluntary liquidation: First National Bank of Ashland, Pa.; First National Bank of Allentown, Pa.; First National Bank of Waynesburg, Pa.; Citizens' National Bank of Charlottesville, Va.; and Merchants' National Bank of Fort Scott, Kans. The receivers for the five last-mentioned banks were appointed under authority of an act "authorizing the appointment of receivers of national banks, and for other purposes," approved June 30, 1876. This action was rendered necessary by the complaints of creditors that the affairs of the several banks were not being properly or effi ciently settled by the officers or agents having them in charge. Dividends have been paid to the creditors of six of the banks that have failed during the year, as follows: Third National Bank of Chicago, Ill.... Central National Bank of Chicago, Ill First National Bank of Kansas City, Mo.. Commercial National Bank of Kansas City, Mo.. First National Bank of Tarrytown, N. Y.. Washington County National Bank of Greenwich, N. Y. 70 per cent. 40 per cent. 30 per cent. 100 per cent. 70 per cent. 50 per cent. The aggregate amount of these dividends is $1,309,167; the average rate being 53.8 per cent. Dividends have also been paid during the year to creditors of banks which failed previous to November 1, 1877, as follows: First National Bank of Tiffin, Ohio.. First National Bank of Delphi, Ind per cent. per cent. per cent.; total, 50 Lock Haven National Bank, Lock Haven, Pa.... 30 per cent.; total, 30 The total amount of dividends disbursed by the Comptroller to creditors of insolvent banks during the year ending November 1, 1878, was $2,856,851. The total dividends paid since the organization of the system is $14,010,313, upon proved claims amounting to $23,147,393, or 60.53 per cent. of the amount of the claims. Assessments amounting to $5,703,500 have been made upon the share per cent.; total, 58 per cent. per cent. 10 per cent.; total, 37 per cent. 10 per cent.; total, 30 per cent, 25 per cent.; total, 35 per cent. 10 per cent.; total, 50 per cent. 124 per cent.; total, 124 75 per cent. per cent.; total, 100 per cent. per cent. 15 per cent.; total, 35 per cent. 10 per cent.; total, 45 per cent. 124 per cent.; total, 100 per cent. 25 per cent.; total, 60 per cent. per cent.; total, 50 per cent. 30 per cent.; total, 50 per cent. per cent.; total, 65 per cent. holders of thirty-four insolvent banks for the purpose of enforcing their individual liability, of which $1,458,834 has been collected. A table showing the national banks which have been placed in the hands of receivers, the date of appointment of receivers, the amount of capital and of claims proved, and the rates of dividends paid; and also one showing the amount of circulation of such banks, issued, redeemed, and outstanding, on November 1, 1878, will be found in the appendix. STATE BANKS AND SAVINGS BANKS. The laws of the United States require returns of capital and deposits to be made to the Commissioner of Internal Revenue, for purposes of taxation, by all State banks, savings-banks, and private bankers. The data for the following table were obtained from the Commissioner and compiled in this Office. This table exhibits, by geographical divisions, the number of State banks and trust companies, private bankers, and savings-banks, and their average capital and deposits for the six months ending May 31, 1878: The following table exhibits by States, cities, and geographical divisions, the average capital and deposits of the same banks and bankers, and the taxes thereon for the same period: Tables giving similar information for previous years will be found in the appendix. Section 333 of the Revised Statutes requires the Comptroller to report to Congress the resources and liabilities of banks other than national, so far as such information can be obtained by him. Statements showing the condition of the State and savings banks of New York and New England are readily obtained for this purpose from the State authorities. A summary of these, and of returns showing the condition of the State banks of New Jersey, Pennsylvania, Maryland, Ohio, Louisiana, Kentucky, Michigan, Wisconsin, Minnesota, Kansas, and California, are given in the appendix. Complete returns are also given showing the condition of the savings-banks of New England, New York, New Jersey, Ohio, and California. It will be seen that complete returns of State banks have been received from seventeen States only, of savings-banks from but ten States, and of trust and loan companies from five only. The laws of fourteen States do not require returns to be made by banking associations to any State official. The tables referred to do not therefore present a satisfactory exhibit of the condition of the resources and liabilities of the State banks and savings-banks of the country. SUMMARY OF THE PRINCIPAL RESTRICTIONS AND REQUIREMENTS OF THE NATIONAL BANK ACT. 1. The corporate powers possessed by the national banking associations, and which they cannot exceed, are limited by the organic act which governs them, and are very carefully enumerated therein. They are, briefly, as follows: First. To adopt and use a corporate seal. Second. To have succession for twenty years, unless sooner voluntarily dissolved, or their franchise becomes forfeited by some violation of law. Third. To make contracts. Fourth. To sue and be sued, as fully as natural persons. Fifth. To elect or appoint directors, and by the directors to appoint a president, cashier, and other officers, and define their duties. Sixth. To adopt all necessary by-laws, not inconsistent with law. Seventh. To exercise by their boards of directors, or officers, subject to law, such incidental powers as are necessary to carry on the business of banking; by discounting and negotiating promissory notes and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining and issuing circulating notes. These are the entire powers possessed by the national banks, and it has been judicially held that all powers not here enumerated are withheld. These enumerated powers, therefore, operate also as restrictions upon the banks. 2. One of the provisions appearing in the above grant of powers is that the national banks may loan money upon personal security onlythat is, real estate may not be taken by them, directly or indirectly, as original security for any loan; the effect of which is to make them commercial institutions, and to discourage the loaning of money upon securities not readily convertible. 3. Mortgages on real estate may be taken, or real estate be conveyed to them, by way of security for or in satisfaction of debts previously contracted in good faith; or they may purchase the same at sales under judgments, decrees, or mortgages held by them. But all possession by them of such real estate, whether under mortgage, by purchase, or otherwise, is limited to five years. 4. They are required to have a paid-up capital of not less than $100,000 each, and in cities of 50,000 inhabitants their capital must be not less than $200,000 each. In the discretion of the Secretary of the Treasury, however, banks with not less than $50,000 capital may be organized in places having less than 6,000 inhabitants. The design and effect of these provisions is to prevent, as far as possible, the establishment of feeble organizations, unequal to the wants of the communities in which they are located. 5. At least one-half of the authorized capital must be paid in before commencing business, and the remaining portion must be paid in at the rate of not less than one-fifth monthly from the time the association is authorized to commence business. Proper provision is made for enforeing payment of installments of capital stock subscribed, or for making good any impairment of capital which may occur in the course of busi ness. 6. The Comptroller is also authorized and required, before issuing his certificate of authority to any association to commence business, to ascertain if such association has in good faith complied with all the requirements of law preliminary to its organization, and he may appoint a special commission for this purpose if thought necessary. He must also obtain a sworn statement of the president and cashier and of a majority of the directors of the proposed association, setting forth all the facts properly bearing on this inquiry. 7. No increase or reduction of the authorized capital of an association can be made without the approval of the Comptroller being first obtained, and no increase is valid until the whole amount is actually paid in and certified to under oath. 8. Every director must be a citizen of the United States, and threefourths of the directors of any association must be residents of the State, Territory, or District in which it is located. Each director must also, during his whole continuance in office, be the bona fide owner of not less than ten shares of the capital stock of the association of which he is a director, which shares must not be hypothecated or in any way pledged as security for any loan or debt. To all of which he must make oath. 9. Every director must also, immediately upon his election or appointment, make and transmit to the Comptroller an oath that he will faithfully administer the affairs of his association, and will not knowingly violate, or permit to be violated, any of the provisions of the national bank act. 10. The shareholders of every national bank are each made individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such association, to the extent of their stock therein, at its par value, in addition to the amount invested in such shares; thus giving a double security to the general creditors of these associations. 11. Each national bank, before it is authorized to commence business, must have first deposited with the Treasurer of the United States an amount of interest-bearing, registered United States bonds, not less in any case than $30.000, nor less than one-third of the paid-in capital of the bank, except that, by a late act, the maximum deposit of bonds required for any bank is $50,000. These bonds are primarily held as security for the redemption of the circulating notes of the bank; but as the amount of circulation issued equals ninety per cent. only of the par value of the bonds deposited, any excess in the value of the bonds above the amount of circulation to be redeemed becomes an added security, in the possession of the government, applicable to the payment |