TRANSFERS OF ASSETS-CORtinued. was not formally executed, or that the transfer was void because not authorized by the charter of the bank, so long as he retains, as assets, the advances, to secure repayment of which the pledge was given. (Casey vs. Le Société de Crédit Mobilier, 2 Woods, p. 77.) A preference of one creditor to another, within the meaning of section 5242, Revised Statutes, is a preference given by the bank to secure or pay a pre-existing debt. Where a person, knowing that a national bank is embarrassed, makes to it a loan, taking as security therefor a pledge of part of the assets of the bank, this transfer does not give him the preference prohibited by the statute. (Ibid.) II. When not binding. Under said section 5242, which declares void transfers of its property by a national bank, made in contemplation of insolvency, and with a view to give a preference to one creditor over another, or with a view to prevent the application of the assets of the bank in the manner prescribed by law, such a transfer is void if the insolvency is in the contemplation of the bank making the transfer, although the party to whom it is made does not know or contemplate the insolvency of the bank. (Case, receiver, vs. Citizens' Bank, 2 Woods, p. 23.) ULTRA VIRES, WHAT IS. I. National banks cannot sell railroad bonds for third parties on commission, or engage in business of that character. (Susan Welcker vs. First National Bank of Hagerstown, Court of Appeals of Maryland, 43 Md., p. 581.) II. In an action of deceit against a national bank, for alleged false representations of its teller in the sale to plaintiff of certain railroad bonds: Held, That the selling of such bonds on commission was not within the authorized business of a national bank, and being thus beyond the scope of its corporate powers, the defense of ultra vires was open to it, and it was not responsible for the deceit of its teller. (Ibid.) III. The national-bank act confers no power on a national bank to take a deed of trust of real estate as security for a contemporaneous loan; and such bank has no power not conferred by Congress. A sale under such a deed enjoined. (Matthews vs. Skinner, 62 Mo., p. 329. See also DEPOSITS, SPECIAL, I, II, IÏI, IV.) ULTRA VIRES, WHAT IS NOT. IV. A national bank took a lien upon real estate to secure a pre-existing debt. Afterward, the bank paid $500 to discharge a prior lien upon the land, taking a note and mortgage on land in Kansas to secure this advance. Lien and mortgage held valid, and warranted by law. (Orum vs. National Bank, 16 Kans., p. 341.) V. A chattel mortgage taken by a national bank to secure a pre-existing debt is valid, and will be enforced. (Spofford vs. First National Bank, 37 Iowa, p. 181.) USURY. I. State laws relative to usury do not apply to national banks. (Farmers and Mechanics' National Bank vs. Dearing, 1 Otto, p. 29.) II. The only forfeiture declared by the 30th section of the act of June 3, 1864, (Revised Statutes, section 5198,) is of the entire interest which the note or bill carries with it, or which has been agreed to be paid thereon, when the rate knowingly received, reserved or charged by a national bank is in excess of that allowed by that section; and no loss of the entire debt is incurred by such bank, as a penalty or otherwise, by reason of the provision of the usury law of a State. (Ibid.) To same effect are National Exchange Bank vs. Moore, 2 Bond, p. 170, and several State decisions. (The New York court of appeals had decided the other way.) APPENDIX. Special attention is called to the carefully prepared tables contained in the report and appendix, a full list of which will be found on the following page. An index to the detailed report of each of the 2,089 banks in operation on October 1 of this year appears at the end of the volume. In concluding this report the Comptroller takes pleasure in bearing testimony to the industry and efficiency of the officers and clerks associated with him in the discharge of official duties. Hon. SAMUEL J. RANDALL, JOHN JAY KNOX, Comptroller of the Currency. Speaker of the House of Representatives. TABLES CONTAINED IN REPORT AND APPENDIX. REPORT. I. Table of the resources and liabilities of the national banks in October of each year, from 1869 to 1877 .... Page. 140 II. Table of the resources and liabilities of the national banks on October 1, 1877, classified by reserve cities, &c III. Table, by geographical divisions, of the number, capital, and deposits of the State banks and private bankers, &c., for the six months ending May 31, 1877 IV. Table, similar to the one preceding, for the six months ending November 30, 1876 V. Table of the circulation, deposits and bank-balances, and specie of the banks of the country, with the ratios of specie to circulation and to circulation and deposits, from 1835 to 1842, and from 1850 to 1858 VI. Table of circulation, deposits and bank-balances, and legal-tender funds of the national banks, with the ratios of legal-tender funds to circulation, and to circulation and deposits, from 1870 to 1877. VII. Table showing the circulation, deposits and bank-balances, and specie of the State banks in New England and New York, with the ratios of specie to circulation, and to circulation and deposits, from 1835 to 1842, and from 1850 to 1858, and also the circulation, deposits and bank-balances, and legal-tender funds of the national banks in New England and New York, with the ratios of legal-tender funds to circulation and to circulation and deposits, from 1870 to 1877..... VIII. Table showing the number, circulation, deposits, and specie of the State banks in New York City, with the ratios of specie to circulation and to circulation and deposits, from 1855 to 1860, and also the number, circulation, deposits and legal-tender funds of the national banks in New York City, with the ratios of legal-tender funds to circulation and to circulation and deposits, from 1872 to 1877.... IX. Table showing the average number, circulation, deposits, and reserve-funds of the national banks in New York City, other reserve cities, and the remainder of the country, with the ratios of legal-tender funds to circulation and to circulation and deposits, and of reserve funds to circulation and deposits, 1870 to 1877..... 141 142 142 144 144 145 146 147 X. Table showing the value of the legal-tender paper dollar in each year, from 1863 to 1877.. 149 XI. Table showing the weight of the gold coin represented by the legal-tender paper dollar in each year, from 1863 to 1877 149 XII. Table, by States and geographical divisions, of the number of national banks organized, closed, and closing, and in operation, with their capital, bonds, and circulation, November 1, 1877 151 XIII. Table of the outstanding circulation of the national banks on January 1 of each year from 1868 to 1877, and on November 1, 1877... 152 XIV. Table showing, by States, the issue and retirement of circulation for the year ending November 1, 1877, and the total amount issued and retired since June 20, 1874..... 153 XV. Table showing the issue and retirement of national-bank notes and the deposit and retirement of legal-tender notes, monthly, since the passage of the act of January 14, 1875 154 Page. XVI. Statement giving similar information by fiscal years.... XVII. Statement showing concisely the operations of the acts of June 20, 1874, and of 154 155 XVIII. Table of the amounts and kinds of United S ates bonds held as security for national-bank circulation....... 156 XIX. Table of the liabilities of the national banks, and of the reserve required and 158 XX. Table showing the liabilities and reserve of the national banks since June 20, 160 XXI. Table showing the weekly movement of the legal-tender reserve of the New XXIII. Table of the amounts of specie held by the national banks at the dates of their XXIV. Statement showing the movement of coin and bullion in the United States for the fiscal year 1876-77, and the estimated amount in the country at the end of that year......... XXV. Statement of the public debt at its maximum. XXVI. Table of the amounts and kinds of outstanding United States and national-bank issues, from 1865 to 1877, at the dates given. XXVII. Table showing the transactions of the New York clearing-house, yearly, from 1854 to 1877.. XXVIII. Table showing the classes of loans of the national banks in New York City in XXIX. Statement of the rates of interest in New York and London, 1874 to 1877....... XXXI. Statement of the amount of United States taxes collected from banks, other than national, yearly, from 1864 to 1877 XXXII. Table, by States and reserve cities, of the capital and the amount and rate of taxation of the national banks for the year 1876.. XXXIII. Table of the taxation of national banks, yearly, from 1866 to 1876......... XXXIV. Table of the rates of taxation of the national banks in certain States for the years 1874, 1875, and 1876. XXXV. Table of the rates of taxation of the national banks in certain cities for the years 1875 and 1876........ XXXVI. Table, by geographical divisions, of the capital, and the amount and rates of taxation, of the national banks, for the years 1874, 1875, and 1876.. XXXVII. Table, by States and reserve cities, of the amount of the losses charged off by national banks during the year ending September 1, 1877...... XXXVIII. Table of the amount of losses charged off by the national banks in the principal cities in the years 1876 and 1877 XXXIX, Table, by geographical divisions, of the number and capital of the national banks XL. Table showing the capital, surplus, dividends, and earnings of the national XLII. Table, by geographical divisions, of the ratios to capital and to capital and sur- 1877.. XLIV..Table, by denominations, of the number and amount of national-bank notes issued and redeemed from 1863 to 1877, and the number and amount outstanding November 1, 1877...... XLV. Statement of the amount of national-bank notes destroyed, yearly, from 1863 to 1877........ XLVI. Table showing, by denominations, the amount of national-bank notes, and of legal-tender notes, and the total outstanding on November 1, 1877.................................... XLVII. Table, by States and reserve cities, and geographical divisions, of the number of State banks, savings banks, &c., with their average capital and deposita, and the tax thereon, for the six months ending May 31, 1877.................................. XLVIII. Synopsis of judicial decisions relative to national banks.... 161 162 163 164 164 164 165 165 166 166 167 167 168 169 169 169 170 171 171 177 177 178 178 179 179 180 183 189 APPENDIX. I. Names and compensation of officers and clerks in the office of Comptroller of the Currency, and expenses of the office for fiscal year ending June 30, 1877.. II. Table showing, by States, the issue of circulation and the deposit of legaltender notes to retire circulation, from June 20, 1874, to December 1, 1877, and the amount remaining on deposit at the latter date... III. Table, by States and reserve cities, of the ratios to capital, and to capital and surplus, of the dividends and earnings of the national banks, from March 1, 1873, to September 1, 1877 IV. Table showing the liabilities and reserve of the national banks at the dates of their reports, from October, 1871, to October, 1877. V. Table showing, by States and reserve cities, the liabilities and reserve of the national banks on October 1, 1877. VI. Table showing the weekly liabilities and reserve of the national banks in New VII. Table showing by States, reserve cities and geographical divisions, the number IX. Table showing the aggregate resources and liabilities of savings-banks from X. Table, by States, of the aggregate deposits of savings-banks, the number of their depositors, and the average amount due to each, in 1876 and 1877................... XI. Aggregate resources and liabilities of the national banks at the dates of their reports, from 1863 to 1877... Page. 205 207 208 210 212 214 215 216 216 216 217 |