252. First National Bank (Selma, AL)

View Charter #1537 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1537
Charter Number
1537
Start Date
June 11, 1867
Location
Selma, Alabama (32.407, -87.021)

Metadata

Model
gpt-5-mini
Short Digest
29e23ba5

Response Measures

None

Receivership Details

Depositor recovery rate
46.6%
Date receivership started
1867-04-30
Date receivership terminated
1882-11-25
OCC cause of failure
Fraud
Share of assets assessed as good
40.0%
Share of assets assessed as doubtful
33.1%
Share of assets assessed as worthless
26.9%

Description

Multiple contemporaneous newspapers (June–Oct 1867) list the First National Bank of Selma, Ala., among national banks that have failed and are now in the hands of receivers or passed into the hands of Receivers. Later items (Sept. 2) refer to the receiver of the insolvent First National Bank of Selma seeking court actions after the bank refused payment of a Government draft. No article describes a depositor run prior to suspension or any reopening — the bank was insolvent and in receivership. Dates are taken from the publication dates and earliest mentions in the clippings (June 11–19, 1867).

Events (4)
1. August 24, 1865 Chartered
Source
historical_nic
2. April 30, 1867 Receivership
Source
historical_nic
3. June 11, 1867 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Listed among national banks that have failed and are in the hands of receivers (insolvency/failure to meet obligations).
Newspaper Excerpt
First National, Selma, Ala., $85,000; ... national banks that have failed and are now in the hands of receivers
Source
newspapers
4. September 2, 1867 Receivership
Newspaper Excerpt
the receiver of the insolvent First National Bank of Selma, Ala., for vacation of attachment ... the Selma bank three days after it refused payment of a Government draft on deposits here (reporting court action by the receiver).
Source
newspapers

Newspaper Articles (13)
1. June 11, 1867 The New York Herald New York, NY
Article from The New York Herald, June 11, 1867

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Steward. Cornelius Vanof Smith Barker, Jr., and John H. Vanderbilt, Vice derbilt was re-elected President, W. ary. President, and Augustus Scheil, Secre banks that have The following is a list of national rs, with the Bive failed and are now in the bands of rec. First Na. amount of circulating notes issued to eac National, tional, Attica, N. Y., $45,000; Merchants FrankWashington, D. C., $180,000; Venango Nationa Tenn., lin, Pa., $85,000; Tennessee National, Memphis, 200; $90,000; First National, Newton, Mass., $130, First National, Selma, Ala., $85,000; First N tional, New Orleans, La, $180,000. In addition to these two banks have taken up their bonds and deposited lawful money in the United States Treasury to the amount of outstanding circulation, viz:-First National Carondolet, New Orleans, $25,500; First National Columbia, New Orleans, $11,990-making a total of $832,490 reverting to the government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution. The Sub-Treasurer in this city reports:Total receipts $1,465,816 Total payments. $1,563,316 For customs. 229,000 Balance 134,015,419 495,000 For gold notes The Chicago Clearing House statements of the past two weeks compare as follows:Balances. Clearings. $11,540,292 Week ending June 8 $1,002,558 9,207,614 Week previous 992,819 The following is a statement of the value of the imports entered at the port of Boston during the month of May:Value. Species of Goods, Wares and Merchandise. Imports-Dutiable, entered tor consumption $1,411,579 2,544,749 Imports-Dutiable, warehoused $3,956,328 Total paying duty Free 289,188 Total imports $4,245,516 Merchandise withdrawn from warehouse for $1,727,877 consumption The earnings of the undermentioned railroads during May of this and last year compare as follows:1867. 1866. $329,078 $316,432 Toledo, Wabash and Western 365,196 333,952 Michigan Central Cleveland and Toledo 210,783 180,675 51,710 55,133 Virginia and Tennessee Atlantic and Great Western 451,447 459,370 A St. Louis journal says:or the notes of the old "Bank of the State of Missouri, " which went out existence in 1857, and whose currency was barred in 1860, there 18 still afloat about $60,000 worth. The now existing Bank of the State of Missouri, lately organized as the "National Bank of the State of Missouri" agree to redeem this issue together with all of their own afloat, now amounting to about $50,000. The receiver of the Cataract City Bank of Paterson, N. J., notifies holders of the notes of that bank that all such notes must be presented for redemption to the Treasurer of the State of New Jersey, at Trenton, on or before November 30, 1867, and that holders and owners thereof who fail to present the same will be barred from all right to have the notes redeemed.

2. June 15, 1867 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, June 15, 1867

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BANKS. TENNESSEE 90 Merchant's Bank Bank of Chattarooga10 Ocoee Memphis par Planters' Middle Tenn90 20 Southern Tenold is'se..35 40 SO W. Tenn Shelbyville 50 90 Traders' City B'k Nashville Union Commercial Bank par In Canada there are seventy-three yield gold mines, employing 708 miners. The is valof gold for the last three months ued As at an $690,955. illustration of the rapidity with of which the conversion and purchases the seven-thirty notes have been pushed forward it is officially reported that$151, have been taken in by the treas746,600 ury department during the four months ending June 1st. The reports in circulation that the sec- of of the treasury and comptroller of the retary currency are connected with any of efforts whereby the circulation suspended the banks is returned, and new circulation issued to the banks returning are officially denied. The comptroller it, of the currency regards all circulation or retire in the same light as new he circulation, and whenever has unlessed a margin unissued, he will distribute it according to the merits of the applications on file, without regard to who may return the circulation. If parties purthe circulation of retired banksaue they do it at a knows no and chase premium the comptroiler their of entitles own way risk, no of preventing it but that fact in the to any special privilèges new circulation. The national banks that is issue party list of of have receivers, following failed and a now in the hands of are the amount of circulating notes with to each: The First National bank issued Attica, N. Y., $45,000; the Merchants' of National bank of Washington, D. C., the Venango National bank of $180,000; Franklin, Penn., $85,000 the Tennessee $90,National bank of Memphis. Tenn., the First National bank of Newton, 000; Mass., $130,000; the First National bank NaSelma, Ala., $85,000; the First tional of bank of New Orleans, La., banks $180,addition to these, two up their bonds and in the treasury 000. have lawful taken In money deposited to of the the of the United States amount treasury of their outstanding circulation, The First National bank of Caron- First delet, viz: New Orieans, $25,500; the National bank of Columbia, New Orleans. $11,990, making a total of $832,490, which has reverted to the government, upon the return and destruction of which be at equal amount of circulation will an disposal of the comptroller of curthe for distribution, according to the the rency terms and conditions prescribed in national currency act, subject to the rules that governed the distribution by of same the amount originally authorized the act of congress. It has been reported that ex-President Jefferson Davis lost some money which of he was supposed to have in the hands Trenholm & Co. This error. He Frazer, had no funds on deposit with that upon the collapse of the ConMr. Judah Benjamin firm on account of from federacy, firm. the But, the procured Coufedt erate funds, a bill for twelve thousand t dollars in gold, which was duly paid. had received his salary in paper, and the sum for him as a partial cured Confederate Mr. Davis remuneration thus was se1 for the loss of depreciated paper strictly due. It is true, however, that a other members of the Confederate government were not so fortunate ( S The New Orleans Picayune of Tuesday Suit has been instituted in the p says: United States district court by Messrs. f George Soule and others, depositors in c the Bank of Commerce, of this city, o forcing the proprietor, Mr. Jacob Barker, bankruptcy. o Judge Dureil granted, upon the appliof an order to the States marshal, to cation United petitioners, directed seize the S property and effects of the defendant, the to be held subject to further orders of b ti b court. This is the first case either of voluntary or involuntary bankruptey in this in state under the operation of the new bankrupt law. a The showery character of the weather 4 made business more quiet than usual today. Very little was done in the way of S shipping, either by rail or river, Tomorrow, being the regular time for the ol departure of some of our local packets, will no doubt show a improvement. gi COTTON-The same remarks and to quotationsgiven yesterday would answer th very well for to-day. There is the very same firmness and the same difference W n the views of operators. Sales of about of 00 bales were reported to us, of mixed T ots. Receipts for the past 24 hours were 9 bales. No shipments.

3. June 17, 1867 The New York Herald New York, NY
Article from The New York Herald, June 17, 1867

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The National Bank Currency. (Washington correspondence Boston Advertiser, June 9.] The story that a secret arrangement had been made between the Secretary of the Treasury and certain national banks, under which the banks are to receive new circulating notes in place of broken bank bills that they may redeem and present at the Department, is denied by authority. If any banks are buying up bills of defunct national banks they do it of their own motion and at their own risk, and speculation in these bills is not countenanced by the Department. The following is a list of the national banks that have failed and are now in the bands of receivers, with the amount of circu lating notes issued to each:Circulation. $45,000 First National Bank, Attica, N. Y Merchants' National Bank, Washington, D. C 180,000 85.000 Venango National Bank, Franklin, Pa 90.000 Tennessee National Bank, Memphis 130.000 First National Bank, Newton, Mass. 85,000 First National Bank, Selma, Ala. 180,000 First National Bank, New Orleans, La In addition to these the First National Bank of Carondelet, Mo., with a circulation of $25,500. and the First National Bank of Columbia, Mo., with a circulation of $11,999, have taken up their bonds and deposited lawful money in the United States Treasury to the amount of their outstanding circulation. Here is an aggregate of $832,499, which has reverted to the government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency, for distribution according to the terms and conditions prescribed in the national currency act, subject to the same rules as governed the distribution of the amount originalty authorized by Congress. Quite a number of national banks have been organized to which the Comptroller has not yet given any circulation, because the amount provided for by law is already out, and there are many others that have received only part of the amount to which they would under other circumstances be entitled.

4. June 19, 1867 The Weekly North-Carolina Standard Raleigh, NC
Article from The Weekly North-Carolina Standard, June 19, 1867

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FAILURES OF NATIONAL BANKS- The following is a list of national banks that have failed and are now in the hands of receivers, with the amount of circulating notes issued to each : The first National Bank of Attica, N. Y., $45,000; the Merchants National Bank of Wash ington, D. C., $180,000; the Venango National Bank of Franklin, Penn., $35,000; the Tennessee National Bank of Memphis, Tenn., $90,000; the First National Bank of Newton, Mass., $130,000; the First National Bank of Selma, Ala., $85,000; the First National Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation-viz.: The First National Bank of Carondelet, New Orleans, $25,500; the First National Bank of Columbia, New Orleans, $11,990; making a total of $832,490 which has reverted to the Government; upon the return and distruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the national currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.New York Times.

5. July 13, 1867 Dallas Herald Dallas, TX
Article from Dallas Herald, July 13, 1867

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FAILURES OF NATIONAL BANKS.The following is a list of National Banks that have failed and are now in the hands of the receivers, with the amount of circulating notes issued to each: The First National Bank of Atticit, New York, $45.000; the Mer. chants' National Bank of Washington, D. C., $180,000; the Venango National Bank of Franklin, Pennsylvania, $85,000; the Tennessee National Bank of Memphis, Tennessee, $90,000; the First National Bank of Newton, Massachusetts, $130,000; the First National Bank of Selma, Alabama, $85,000; the First National Bank of New Orleans, Louisiana, $180,000. In addition to those, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation, viz: The First National Bank of Carondelet, New Orleans, $25,000; the First National Bank of Columbia, New Orleans, $11,990, making a total of $832,490 which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution. according to the terms and conditions prescribed in the National Currency Act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.

6. July 19, 1867 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, July 19, 1867

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NO. 23. The following is a list of Na. tional Banks that have failed, and are DOW in the hands of receivers, with the amount of circulating notes issued to each:-First National, Atica. New York, $45,000; Merchants' National, Washington, D. C., $180,000; Venango National; Franklin, Pa., $85,000; Tennessee National, Memphis, Tenn., $90,000; First National, Newton, Mass., $130,000; First National Selma, Ala., $85,000; First National New Orleans, La., $180,000. In ad dition to these, two banks have taken up their bonds, and deposited lawful money in the United States Treasury to the amount of outstanding circulation, viz: Firat National, Columbia, $11,990-making a total of $832. 490 reverting to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution.

7. September 2, 1867 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, September 2, 1867

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New York News. NEW YORK, Aug. 31.-Several Mexican detectives are here in search of C. M. Medinich and several others, who are reported to have robbed the Mexican Liberal Government of $200,000 in gold at the time of the capture of Maximilian. He is said to have been in Maximilian's interest. A woman who accompanied him, sailed for Europe, it is supposed with part of the money, but she will be intercepted there by the cable. Medinich and his confederates have thus far evaded the vigilance of the detectives, who, however, are confident that they are yet in the city, with much of the gold. Gen. Rousseau and staffsailed per the Arizona, to-day, for California. David Dadley Field sailed for Europe, to-day, to attend the Social Science Congress at Belfast, on the 18th of September. The deaths in New York, for the week, are about 580. It is officially reported that there is not a case of yellow fever in the city. Judge Baruard, in the Supreme Court to-day, denied the motion made at the instance of the Receiver of the insolvent First National Bank of Selma, Ala., for vacation of attachment upon

8. September 2, 1867 Daily Ohio Statesman Columbus, OH
Article from Daily Ohio Statesman, September 2, 1867

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FROM NEW YORK. Hunting RobbersSailed for Califor nia. NEW YORK, Aug. 31.-Several Mexican detectives are here in seach of C.M. Medna inich and several others who a.e reported to have robbed the Mexican Liberal Government af $200 000 in gold at the time of the capture of Maximilian. (A woman who accompanied him sailed for Europe, it is supposed, with part of the money, but will be intercepted there by the cable. Medirich and confederates thus far have evaded the vigilance of the detectives, who, however. are confident that they are yet in the city with much of the gold. General Roussean and staff sailed per Arizona to-day for California. Sailed for Europe. David Dudiey Field sailed for Europe to-day to attend the Social Science Congress, at Belfast, our the 18th Sent. Mortuary Report. The deaths in New York for the week are reporte d at 580. There is not a case of yellow fever in the city. Judge Barnard, in the Supreme Court to-day, denied the motion made at the instance of the receiver of the insolvent First National Bank of Selma, Alabama, for a vacation of attachment upon certain de= posits of the bank in the Ocean Bank here. The attachment had been issued by the owner of certain checks drawn by the Selma bank three days after it refused payment of a Government draft on deposits here. It is claimed the attachment is in violation of the provisions of the act creating national banks, which provides for the winding up of insolvent concerns. Case gone to general term of Court of Appeals,

9. September 2, 1867 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, September 2, 1867

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New York Items. NEW YORK, August 31.-David Dudley Field sailed for Europe to-day to attend the Social Science Congress at Belfast, on the 18th of September. The number of deaths in New York for the week was about 580. There is not a casé of yellow fever in the city. Judge Barnard, in the Supreme Court, to-day, denied the motion made at the instance of the receiver of the insolvent First National Bank of Selina, Ala. bama, for a vacation attachment upon certain deposits of the bank in the Ocean Bank here. The attachment had been issued by the owner of certain checks drawn by the Selma bank three days after it refused payment of a government draft on deposits here. It is claimed that the attachment is in derogation of the provisions of the act creating national banks, which provides for winding up insolvent concerns. The case has gone to the general term of the Court of Appeals,

10. October 10, 1867 Clearfield Republican Clearfield, PA
Article from Clearfield Republican, October 10, 1867

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NATIONAL BANKS SUSPENDED.-The following National Banks have passed into the hands of Receivers: Croton National Bank, N. Y. National Bank of W bitestown, Oneida county, N. Y. Atlas Bank, of Providence, R. I. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N.Y. First National Bank, Columbia, N.Y. Venango National Bank, Franklin, Pennsylvania. Merchants' National Bank, Washington, D. C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, Louisiana. First National Bank, Carondelet, Missouri. First National Bank, Selma, Alabama.

11. October 24, 1867 The Jeffersonian Stroudsburg, PA
Article from The Jeffersonian, October 24, 1867

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National Banks Suspended. The following National Banks have passed into the hands of Receivers : Croton National Bank, New York. National Bank of Whitestown, Oneida co., New York. Atlas Bank of Providence, Rhode Island. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank Medina, N. Y. First National Bank, Columbia N. Y. Venango National Bank, Franklin, Pa Merchants' National Bank, Washing ton. D. C. Tennessee National Bank, Memphis, Tenn. First National Bank of New Orleans Louisana. First National Bank, Carondelet, Mo. First National Bank, Selma, Alabama Mrs. Jesse Craig of Island Falls, Maine made, in six weeks this summer, 50 pounds of cheese.

12. December 2, 1872 New-York Tribune New York, NY
Article from New-York Tribune, December 2, 1872

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curity, or as collateral security, for any loan of money, or for a consideration shall agreeAto withhold the same from use, or shall offer or receive the custod or promise of custody of such notes as security, or as collateral security or consideration, for any lloan of money." 5th of April last the Controller was advised that bank On the in the City of New-York, with a capital of $1,000,000, a and whose average exchanges at the Clearinghouse did not exceed $300,000, was that morning creditor at the Clearing-house for $4,770,000. A8 it was evident that this large credit was not the result of legitimate business, the examiner was directed to make an exam ination of the bank, which was immediately done, 114 connection with a member of the Clearing-house committee. From the examination, which was thoroughly and carefully conducted, it appeared that deposits had been made in that bank, by one individual, upon the morning of April 5 to the amount of $4,100,000, the whole of which was drawn out upon the same day, upon the checks of the depositor, in legal-tender notes. The president of the bank denied that the bank had any interest in these trans actions, and there was no evidence of any loan, or of ad. vances in any shape. upon these deposits. These traus actions were the subject, subsequently, of an investiga tion by the Bank Committee of the House of Represent tarives, and, although it was clear that the spirit of the law had been violated, no evidence could be obtained to warrant the commencement of a suit for the recovery of the penalty prescribed in the act referred to. The in vestigation undoubtedly had the effect to prevent the repetition of similar transactions; no offenses of this been kind, on the part of any national bank, having since brought to the attention of the Controller. The New-York Clearing house Association subse quently passed a resolution declaring "that the Clearinghouse Committee be and is hereby directed, whenever it appears, in its judgment, that legal-tender notes have been withdrawn from use through the agency of any bank, members of the association, to make an immediate examination of the bank in question, and should there appear to be complicity on the part of the bank or its officials, to suspend said bank from the Clearing house until action of the association shall be taken there on." The withdrawal of currency for illegitimate purposes has, however, since been accomplished without the assistance of the banks. The rigid enforcement of the resolution of the Clearing-house will prevent complicity on the part of banks in such transactions; and it the New-York Stock Board and the leading banking houses will unite with the Clearing-house, and refuse to transact business with unserupulous men. who do not hesitate to embarrass legitimate business for the parpose of increasing or diminishing the values of stocks or bonds in which they are temporarily interested, they can do more to prevent such operations team any Congress enactment. INSOLVENT BANKS. Twenty-one national banks, organized in 11 different States, with an aggregate capital of $1,236,100, have failed since the organization of the system in 1863 The total circulation of these banks was $2,942,793. of which $2,441,430 has been redeemed in full, leaving a belance still outstanding of $501,363, which will also be redeemed, upon presentation to the Treasurer of the United States, from the avails of United States bonds held as security for that purpose. Of these banks, five have been finally closed (two during the past year), baying paid dividends to their ereditors. Six national banks have fatted during the past year. New-York: Of these, the Union Square National Bank, the Fourth National Bank, Philadelphia, and the Waverley National Bank, New-York, have paid their creditors in full-a settlement, it is believed, without a precedent prior to the establishment of the national system. The Eighth National Bank, New-York, has paid dividend of 50 per cent; the Ocean National Bank, New-York, a dividend of 70 per cent; and the receiver of the Ocean National Bank, and of the First National Bank of Fort Smith, Ark., estimate that the creditors of both these banks will últimately receive a dividend of 100 cents on the dollar. The Venango National Bank of Franklin, Penn.: the Merchants' National Bank of Washington. D. C. the First National Bank of Selma, Ala., and the First National Bank of New-Orleans, were United States depositories. e-final dividend in favor of the creditors of the First National Bank of Vicksburg has been unexpectedly delayed by the recent presentation of a claim of the United States for money alleged to have been illegally deposited by the Collector of Internal Revenue of that district, in the year 1868. Since that time no lesses have occurred to the Government by deposits made in the national banks, although many millions of dollars have been continually on deposit with banks which are designated as depositories. The three a first-named banks, at the time of their failure, had large amount of Government funds on deposit. SURPLUS AND SPECIE-EXTENDING THE LIMIT OF SURPLUS. The law requires that every national bank shall carry one-tenth part of its profits to surplus-fund account before the declaration of a dividend, until the same shall amount to 20 per cent of its capital stock. This wise provision has been generally observed. and the returns show that the banks now have a surplus of more than $100,000,000, and considerably more than onefifth of their capital in surplus account. The act also limits the liabilities of any association, person, com pany, or corporation, for money borrowed, to one-tenth of the capital stock paid in. The Controller recommends that this limit be extended to one-tenth of the capital and surplu. which will have a tendency to 10. crease the surplus fund beyond the limit required by the law. The following table will exhibit the aggregate amount of specie held by the national banks at the dates mentioned, the coin, coin certificates, and checks payable coin held by the national banks of the City of New York being stated separately. The country banks have not heretofore separated coin in their reports: -Held NationalsBanks in New- City.-

13. December 3, 1872 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, December 3, 1872

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notes, which will probably go to the Supreme Court for final adjudication. An assessment has been made upon the shareholders of the National Bank of Bethel, of 15% per cent, which, if collected, will pay the creditors in full, without interest, up to the date of the appointment of the Recoiver. A dividend of more than 30 per cent will also soon be declared in favor of the creditors of the First National Bank of Nevada. The affairs of the Eighth National Bank of New York, and of the First National Bank of Rockford, Illinois, are involved in litigation, and the date of the final closing of their affairs is uncertain. The Venango National Bank of Franklin, Pennsylvania; the Merchants' National Bank of Washington, District of Columbia; the First National Bank of Selma, Alabama, and the First National Bank of New Orleans, were United States depositories. The final dividend in favor of the creditors of the First National Bank of Vicksburg has been unexpectedly delayed by the recent presentation of a claim of the United States for money alleged to have been illegally deposited by the Collector of Internal Revenue of that district, in the year 1868. Since that time no losses have occurred to the Government by deposits in the National Banks, although many millions of dollars have been continually on deposit with banks which are designated as depositories. The three first-named banks, at the time of their failure, had a large amount of Government funds on deposit. The fifth section of the act of March 3, 1797, provides "that when any revenue officer or other person hereafter becoming indebted to the United States, by bond or otherwise, shall become insolvent; or where the estate of any deceased debtor, in the hands of executors or administrators, shall be insufficient to pay all the debts due from the deceased, the debt due to the United States shall be first satisfied; and the priority horeby established shall be deemed to extend as well to cases in which a debtor, not having sufficient property to pay all his debts, shall make a voluntary assignment thereof, or in which the estate and effects of an absconding, concealed, or absent debtor shall be attached by process of law, as to cases in which an act of legal bankruptcy shall be committed." The Treasurer of the United States claims, under this act, that all deposits in these banks at the time of suspension, belonging to the United States, whether deposited to its credit directly, or to the credit of its disbursing officers, with interest thereon from the date of the failure of the bank, are entitled to priority of payment. In the case of the First National Bank of New Orleans, other questions have arisen. At the date of its suspension the bank was in charge of officers of the Government, who were also engaged in the settlement of the accounts of a defaulting ex-Assistant Treasurer of the United States. The nominal balance to the personal credit of this individual upon the books of the bank was $815,779.10, and a certified check for this amount was taken from him, and about $94.000 collected upon it. The Government holds this check, and claims that the balance uncollected shall have priority in payment, the same as if that amount had been on deposit to the credit of the United States. The creditors of the bank, on the other hand, claim that, at the time of the suspension, the bank held legal offsets, and that there was really no balance upon the check held by the Government. The Receiver concurs in this opinion, and if the claim should be presented to him in the usual way for settlement, it would be disallowed. Unsuccessful attempts have been made to obtain a final decision in the Supreme Court of the United States upon these questions, owing, in part, as is believed, to defects in the present act. A large amount of funds has been on deposit with the Treasurer for the last three years, which will be distributed among the creditors as soon as a decision of the Court can be obtained upon these points. Section 50 of the Fational Currency act provides that the Comptroller shall make a ratable dividend upon all claims which may be proved to his satisfaction or adjudicated in a court of competent jurisdiction; and this is the only existing provision in reference to the method of procedure in the proving of claims against an insolvent bank. The law should be so amended as to define the duties of the Comptroller and of the Receiver in proving claims and in prescribing the mode and manner of referring conflicting interests to the proper tribunal for final arbitrament. A bill for this purpose was introduced into the last Congress, reported by the Bank Committee, and referred to the Judiciary Committee of the House of Representatives. The passage of this bill will facilitate the settlement of the affairs of these banks, and simplify the method of procedure in all cases of insolvent banks. An amendment is also suggested giving authority for the return of the assets of an insolvent bank to an agent of the shareholders upon their unanimous request, after full payment shall have been mode to the creditors of the bank. Where dividends are delayed by reason of protrasted litigation, provision should also be made for the investment of the funds on deposit with the Treasurer in interest-bearing securities. # SURPLUS AND SPECIE. The law requires that every National Bank shall carry one-tenth part of its profits to surplus-fund account before the declaration of n dividend, until the same shall amount to 20 per cent of its capital stock. This wise provision has been generally observed, and the returns show that the banks now have a surplus of over one hundred millions of dollars, and considerably more than one-fifth of their capital in surplus account. The act also limits the liabilities of any association, person, company, or corporation, for money borrowed, to one-tonth of the capital stock paid in. The Comptroller recommends that this limit be extended to one-tenth of the capital and surplus, which will have a tendency to increase the surplus fund beyond the limit required by the law. Banks have hitherto been in the habit of reporting, as specie, checks payable in coin. The result is to give an erroneous aggregate of tho amount of coin held by the banks, the вато amount being reported by the bank holding the coin and the bank holding the check. In the present statement, and in all future statements, the item of coin will include only actual coin and United States coin certificates which are payable on demand at the Treasury. # SHINPLASTERS. The State of Alabama has issued for some years past, in the form and similitude of bank notes, of five different denominations, certificates which read as follows: "The State of Alabama: Receivable as five dollars in payment of all dues to the State. Montgomery, May 1, 1867 (Signed) Governor. (Signed) Com. of Public Ac'ts." On the reverse: "Receivable in payment of taxes and all dues to the State. Issued under the provisions of the act entitled 'An act to provide for the issue of certificates or receipts by the State,' approved Feb. 19, 1867. The credit and faith of the State of Alabama are pledged for the redemption of this certificato or receipt, as provided for in such act." A circular was also issued by the Governor of Alabama, on July 24, 1867, and is still in circulation, which states that an opinion has been ob-