ACT OF MARCH 29, 1886.

An act additional to an act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," passed June 3, 1864.

and

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whenever the receiver of any national bank duly appointed by the Comptroller of the Currency, and who shall have duly qualified and entered upon the discharge of his trust, shall find it in his opinion necessary, in order to fully protect and benefit his said trust, to the extent of any all equities that such trust may have in any property, real or personal, by reason of any bond, mortgage, assignment, or other proper legal claims attaching thereto, and which said property is to be sold under any execution, decree of foreclosure, or proper order of any court of jurisdiction, he may certify the facts in the case together with his opinion as to the value of the property to be sold, and the value of the equity his said trust may have in the same, to the Comptroller of the Currency, together with a request for the right and authority to use and employ so much of the money of said trust as may be neces sary to purchase such property at such sale.

By the concluding portion of section 5234 of the National Bank Act, the receiver of a national bank was required to pay over all money collected by him to the Treasurer of the United States subject to the order of the Comptroller.

§ 2. That such request, if approved by the Comptroller of the Currency, shall be, together with the certificate of facts in the case, and his recommendation as to the amount of money which, in his judgment, should be so used and employed, submitted to the Secretary of the Treasury; and if the same shall likewise be approved by him, the request shall be by the Comptroller of the Currency allowed and notice thereof, with copies of the request, certificate of facts, and indorsements of approvals, shall be filed with the Treasurer of the United States.

§ 3. That whenever any such request shall be allowed as hereinbefore provided, the said Comptroller of the Currency shall be, and is, empowered to draw upon and from such funds of any such trust

as may be deposited with the Treasurer of the United States for the benefit of the bank in interest to the amount as may be recommended and allowed, and for the purpose for which such allowance was made: Provided, however, That all payments to be made for or on account of the purchase of any such property and under any such allowance shall be made by the Comptroller of the Currency direct, with the approval of the Secretary of the Treasury, for such purpose only and in such manner as he may determine and order. Approved, March 29, 1886.

ACT OF MAY 1, 1886.

An act to enable national banking associations to increase their capital stock and to change their names or locations.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any nation's banking association may, with the approval of the Comptroller of the Currency, by the vote of shareholders owning two-thirds of the stock of such association, increase its capital stock, in accordance with existing laws, to any sum approved by the said Comptroller, notwithstanding the limit fixed in its original articles of association and determined by said Comptroller; and no increase of the capital stock of any national banking association either within or beyond the limit fixed in its original articles of association shall be made except in the maner herein provided.

§ 2. That any national banking association may change its name or the place where its operations of discount and deposit are to be carried on, to any other place within the same State, not more than thirty miles distant, with the approval of the Comptroller of the Currency, by the vote of shareholders owning two-thirds of the stock of such association. A duly authenticated notice of the vote and of the new name or location selected shall be sent to the office of Comptroller of the Currency; but no change of name or location shall be valid until the Comptroller shall have issued his certificate of approval of the same.

§ 3. That all debts, liabilities, rights, provisions, and powers of the association under its old name shall devolve upon and inure to the association under its new name.

§ 4. That nothing in this act contained shall be so construed as in any manner to release any national banking association under its old name or at its old location from any liability, or affect any action or proceeding in law in which said association may be or become a party interested.

Approved, May 1, 1886.

Notice should be taken of the final clause of the first section, because it deprives the board of directors of the power to increase capital, even when this power is granted in the articles of association.

As repeals by implication are not favored, and as the Act of 1886 is not in conflict or inconsistent with second and third requirements under section 5142, U. S. R. S., U. S. Comp. Stat. 1901, p. 3462, "that the whole amount of the proposed increase shall be paid in, and that the Comptroller, by his certificate specifying the amount of such increase of capital stock, shall approve thereof, and certify to the fact of its payment," it follows that such payment and eer tification by the Comptroller are still required under this act (1886) in order to make the increase of capital stock legal, Witners v. Armstrong, 37 Fed. Rep. 508.

ACT OF JULY 30, 1886.

EXTRACT FROM

An act to prohibit the passage of local or special laws in the Territories of the United States to limit Territorial indebtedness, or for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, *

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§ 5. That section eighteen hundred and eighty-nine, title twentythree of the Revised Statutes of the United States be amended to read as follows:

"The legislative assemblies of the several Territories shall not grant private charters or special privileges, but they may, by general incorporation acts, permit persons to associate themselves together as bodies corporate for mining, manufacturing, and other industrial pursuits, and for conducting the business of insurance, banks of dis count and deposit (but not of issue), loan, trust, and guarantee associations, and for the construction or operation of railroads, wagonroads, irrigating ditches, and the colonization and improvement lands in connection therewith, or for colleges, seminaries, churches,

of

libraries, or any other benevolent, charitable, or scientific associa

tion."

Approved July 30, 1886.

ACT OF MARCH 3, 1887.

An act to amend sections 5191 and 5192 of Revised Statutes of United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whenever three-fourths in number of the national banks located in any city of the United States having a population of fifty thousand people, shall make application to the Comptroller of the Currency, in writing, asking that the name of the city in which such banks are located shall be added to the cities named in sections fifty-one hundred and ninetyone and fifty-one hundred and ninety-two of the Revised Statutes, the Comptroller shall have authority to grant such request, and every bank located in such city shall at all times thereafter have on hand, in lawful money of the United States, an amount equal to at least twenty-five per centum of its deposits, as provided in sections fiftyone hundred and ninety-one and fifty-one hundred and ninety-five of the Revised Statutes.

§ 2. That whenever three-fourths in number of the national banks located in any city of the United States having a population of two hundred thousand people shall make application to the Comptroller of the Currency, in writing, asking that such city may be a central reserve city, like the city of New York, in which one-half of the lawful money reserve of the national banks located in other reserve cities may be deposited, as provided in section fifty-one hundred and ninetyfive of the Revised Statutes, the Comptroller shall have authority, with the approval of the Secretary of the Treasury, to grant such request, and every bank located in such city shall at all times thereafter have on hand, in lawful money of the United States, twentyfive per centum of its deposits, as provided in section fifty-one hundred and ninety-one of the Revised Statutes.

In accordance with the amendment Chicago and St. Louis have been made central reserve cities. The application should be made the same as in the case of the designation of a reserve city.

§ 3. That section three of the act of January fourteenth, eighteen hundred and seventy-five, entitled "An act to provide for the resumption of specie payments," be, and the same is hereby, amended by adding, after the words "New York," the words "and the city of San Francisco, California."

Approved March 3, 1887.

See Act of March 3, 1903, post.

This amendment permits legal-tender notes presented in sums of not less than fifty dollars at the sub-treasury at San Francisco to be redeemed there in gold or silver coin. See section 12, Act of June 12, 1882, ante.

See Harland v. United Lines Tel. Co., 6 L. R. A. 252, 40 Fed. Rep. 308.

ACT OF AUGUST 13, 1888.

An act to correct the enrolment of an act approved March 3, 1887,

entitled An act to amend sections one, two, three and ten of an act to determine the jurisdiction of the circuit courts of the United States, and to regulate the removal of causes from the State courts, and for other purposes, approved March 3, 1875."

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

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§ 4. That all National banking associations, established under the laws of the United States shall, for the purposes of all actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located; and in such cases the circuit and district courts shall not have jurisdiction other than such as they would have in cases between individual citizens of the same State.

The provisions of this section shall not be held to affect the jurisdiction of the courts of the United States in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs of any such bank.

Approved August 13, 1888.

See proviso to section 4, Act of July 12, 1882; First Nat. Bank v. Forest, 40 Fed. Rep. 705.

EXTRACTS FROM ACT OF MAY 2, 1890.

National Banks in Oklahoma.

17. That the provisions of title sixty-two of the Revised Statutes of the United States relating to National banks, and all amendments