NATIONAL BANKS. Banks created and governed under the provisions of the "Na tional Bank Act." They are private corporations organized under a general law of congress, by inidivid ual Atockholders, with their own capital, for private gain, and managed by officers, atents, Ind employes of their own selection. They itute no part of any branch of the gov _ ent of the United States, and whatever ifi c benefit they contribute to the country treturn for grants and privileges conferred 1,46 )1 them by statute, is of a general nature from their business relations to the louv.-144 people through individual citizens, and not as direct representatives of the state as a body politic in exercising its legal and con stitutional functions ; Branch v. U. S., 12 Ct. Cl. (U. S.) 281; but they are instruments de signed to aid the government in an impor tant branch of the public service; F'armers' & M. N. Bk. v. Dearing, 91 U. S. 29, 23 L. Ed. 196. Congress in the exercise of an undis puted constitutional power to provide a cur rency for the whole country, may constitu tionally secure the benefit of it to the people by appropriate legislation, and to that end may restrain the circulation of any notes not issued under its authority ; Veazie Bk. v. Fenno, 8 Wall. (U. S.) 548, 19 L. Ed. 482.
National banks are quasi public institu tions and for the purpose for which they are instituted are national in their character, and within constitutional limits are subject to control of congress, and not to be inter fered with by state legislative or judicial action except so far as congress permits ; Van Reed v. Bank, 198 U. S. 554, 25 Sup. Ct. 775, 49 L. Ed. 1161, 3 Ann. Cas. 1154 ; whether solvent or insolvent, they are ex empt from attachment before judgment in any state, etc., court ; id.
The minimum capital allowed Is $100,000, except that banks with a capital of not less than $50,000 may, with the approval of the secretary of the treasury, be organized in any place the population of which does not exceed 6,000 inhabitants, and with not less than $25,000, with like sanction, in any place population of which does not exceed h,000 inhabitants; no association shall be organized in a city of more than 50,000 popu lation with a capital of less than $200,000.
A national bank may change its name, or place of business, to any place within the same state, not more than thirty miles dis tant, with the approval of the comptroller and by a vote of two-thirds of the stock holders.
The corporate existence is twenty years and a bank may at any time within two years next previous to the expiration of that period, with the approval of the comptroller, extend its existence for another period of twenty years.
A bank may provide in its articles of as sociation for an increase of its capital, the maximum to be approved by the comptroller ; no increase shall be valid until fully paid in and notice submitted to the comptroller. A bank may, by vote of shareholders owning two-thirds of its capital stock, and subject to the approval of the comptroller, reduce its capital, but not below the amount required by the act to authorize the formation of a bank, nor below the amount required for its outstanding circulation, nor until approved by the federal reserve board (infra).
Shareholders are entitled to one vote for each share of stock, and may vote by proxy in writing, but no "officer, clerk, teller or bookkeeper" of the bank shall act as proxy, and no shareholder, whose liability is past due and unpaid, shall be allowed to vote.
Not less than five directors are required; they hold office for one year or until their successors have been elected and qualified; every director must, during his whole term of service, be a citizen of the United States ; at least three-fourths of the directors must have resided in the state, etc., in which the bank is located, for at least one year im mediately preceding their election ; every di rector must own in his own right at least ten shares of stock (only five shares in banks whose capital stock does not exceed $25,000) ; if a director becomes disqualified, his place is vacated (Act of February 8, 1905). Va cancies in the board are filled by the board, to hold until the next election. If an elec tion of directors is not made at the time ap pointed, it may be held on a subsequent day, upon thirty days' notice given in a newspa per published in the city, etc., in which the bank is located, or, if none, published in the nearest city, etc. If the articles do not fix the day of election, or if no election is held on the day fixed, such day shall be designat ed by the directors in their by-laws or other wise, and if they fail to do so, shareholders representing two-thirds of the shares may do so. The board chooses one of its mem bers as president.