than such as they would have in cases between individual citizens of the same State. By this, National banks become citizens of the States in which they are located, and can sue and be sued precisely the same as citizens. This may modify the effect of the proviso in Section 4 of the Act of July 12th, 1882, (page 108,) which placed National banks on a footing with State banks, unless the latter are, by the law or decisions of the courts in the State where they are located, declared to be citizens. 211. Limitation of Banking under Territorial Law. SECTION 1889. The legislative assemblies of the several Territories shall not grant private charters or especial privileges, but they may, by general incorporation acts, permit persons to associate themselves together as bodies corporate for mining, manufacturing, and other industrial pursuits, or the construction or operation of railroads, wagon roads, irrigation ditches, and the colonization and improvements of lands in connection therewith, or for colleges, seminaries, churches, libraries, or any benevolent, charitable, or scientific association. EXTRACT FROM AN ACT approved July 30, 1886. SECTION 5. That section eighteen hundred and eighty-nine, title twenty-three, 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 discount and deposit (but not of issue), loan, trust, and guarantee associations, and for the construction or operation of rail-roads, wagon-roads, irrigating ditches, and the colonization and improvements of lands in connection therewith, or for colleges, seminaries, churches, libraries, or any other benevolent, charitable, or scientific association." INFORMATION HOW TO PROCEED IN Organizing National Banks either de novo or by Conversion from State Banks and Private Banks, with Forms and Instructions; also in regard to the Increase and Reduction of Capital, Voluntary Liquidation, and Extension of Corporate Existence, with Suggestions for their Management, and a General Form for By-Laws, Compiled from “Instructions and Suggestions in Regard to the Organization and Management of National Banks," Issued by the Hon. Hugh McCulloch, Comptroller of the Currency, soon after the Organization of the National Banking System in 1864. Information as to Organization. 1. The first step to be taken for the organization of a National bank is to apply to the Comptroller of the Currency for his consent. The application should be made by letter, and should specify the title desired, as it must be approved by the Comptroller, the locality, capital, and names of at least five persons who will be stockholders of the proposed organization, and should also have a favorable endorsement, or a letter recommending that it be granted, from the Member of Congress for the district in which the bank is to be located, together with similar letters from gentlemen of well-known character and reputation, vouching for the responsibility of the parties, and that the proposed bank is likely to be useful to the community. 2.-—On approving the application, the Comptroller will furnish all necessary forms, in blank, to be used in perfecting the organization, which contain all requisite instructions for their proper execution. 3.-After an application to organize a National bank has been approved by the Comptroller of the Currency, the title selected will be held for the applicants until the organization is completed, provided it be within sixty days from the time (116) the same is approved. An extension of time will no doubt be granted for good reasons. 4.-The organization papers having been duly executed, (and it is suggested that they be executed in duplicate, so that the bank may be enabled to have originals of these important papers,) filed with the Comptroller, and at least one-half of the capital paid in and duly certified by certificate of officers and directors, (see Section 5168, page 15, and page 121 for form of certificate,) the next step is to deposit the amount of United States bonds required by law to perfect the organization; whereupon the Comptroller will, if satisfied that the law has been properly complied with, and that the bank has been organized in good faith for legitimate objects, give to it his "Certificate of Authority" to commence business, for which preparations should have previously been made by providing a suitable banking office, with a secure vault or safe, and all necessary books and papers. The "Certificate of Authority" must be published for sixty days, in a newspaper where the bank is located. 5.-The names of the persons executing the organization papers of a bank should be written in full, and the signatures to the different papers must be the same in all cases, and similarly written; and the papers must be executed before a notary public or judge of a court of record, and the acknowledgment authenticated by the seal of the notary or court. 6. Inasmuch as the laws of the various States differ greatly as to the rights of married women with respect to their estates and property, and as to the effect of covenants and agreements made by them, and as to forms of acknowledgment of instruments executed by them, they should not be made parties to the organization papers of National banks, in order to avoid the serious questions that may arise as to the legality of organizations founded upon papers executed in part by them. They can become stockholders of a bank, if it be desired, by transfer of stock to them after the organization shall be perfected. 7. Under the Act of July 12th, 1882, any National bank having a capital of $150,000, or less, is not required to keep on deposit with the Treasurer of United States bonds in excess of one-quarter of its capital stock, as security for circulation; therefore a bank of $50,000 capital can organize on deposit of $12,500 in United States bonds, and receive circulation to the extent of ninety per cent. of face of bonds. Any National bank may reduce its bonds deposited with the Treasurer of the United States to $50,000, without regard to the amount of its capital. 8.-A National bank cannot be organized with a less capital than $100,000, without the especial approval of the Secretary of the Treasury, and then only in places having less than 6000 inhabitants; and in cities with population of 50,000, the capital must be at least $200,000. 9.-The Comptroller of the Currency authorizes the payment to the bank of the interest on bonds deposited by it. 10. When a bank wishes an agent or correspondent to collect its interest-checks, a letter must be addressed to the Register of the Treasury, Washington, D. C., directing that the checks be forwarded to such agent, and a resolution of the board of directors, authenticated by the seal of the bank, authorizing such agent to endorse the checks, must be filed with the First Auditor of the Treasury, Washington, D. C. II.—The interest on all the United States registered bonds, except the "currency sixes," (Pacific R. R. bonds,) is paid by check to the order of the bank owning the bonds, and payable at any United States Assistant Treasury or U. S. depository. 12. When a National bank desires to withdraw any surplus of bonds it may have on deposit as security for circulation, or to substitute other bonds for those previously deposited for that purpose, a form of authority for such transaction will be furnished on application to the Comptroller of the Currency, to whom the receipts of the Treasurer of the United States for the bonds to be withdrawn must be returned with the request for withdrawal. 13.-If a National bank has occasion to sell United States registered stock issued in its name, a form of authority for an officer of the bank or an attorney to make the necessary assignments will be furnished on application to the Comptroller of the Currency. 14.-The Act of Congress approved June 20th, 1874, requires |