agents of the United States. Such application shall specify, in addition to the name and capital of the banking association filing it, the place or places where the banking operations proposed are to be carried on, and the amount of capital set aside for the conduct of its foreign business. The Federal Reserve Board shall have power to approve or to reject such application if, in its judgment, the amount of capital proposed to be set aside for the conduct of foreign business is inadequate, or if for other reasons the granting of such application is deemed inexpedient. "Every national banking association which shall receive authority to establish foreign branches shall be required at all times to furnish information concerning the condition of such branches to the Comptroller of the Currency upon demand, and the Federal Reserve Board may order special examinations of the said foreign branches at such time or times as it may deem best. Every such national banking association shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accruing at each branch as a separate item." It was amended by Act Sept. 7, 1916, c. 461, cited above, to read as set forth here. The Clayton Act of Oct. 15, 1914, c. 323, § 8, mentioned in this section, is set forth ante, § 8835h. § 9746. (R. S. § 5191.) "Lawful-money reserve" prescribed. Every national banking association in either of the following cities: Albany, Baltimore, Boston, Cincinnati, Chicago, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh, Saint Louis, San Francisco, and Washington, shall at all times have on hand, in lawful money of the United States, an amount equal to at least twenty-five per centum of the aggregate amount of its notes in circulation and its deposits; and every other association shall at all times have on hand, in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate amount of its notes in circulation, and of its deposits. Whenever the lawful money of any association in any of the cities named shall be below the amount of twenty-five per centum of its circulation and deposits, and whenever the lawful money of any other association shall be below fifteen per centum of its circulation and deposits, such association shall not increase its liabilities by making any new loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight, nor make any dividend of its profits until the required proportion, between the aggregate amount of its outstanding notes of circulation and deposits and its lawful money of the United States, has been restored. And the Comptroller of the Currency may notify any association, whose lawful-money reserve shall be below the amount above required to be kept on hand, to make good such reserve; and if such association shall fail for thirty days thereafter so to make good its reserve of lawful money, the Comptroller may, with the concurrence of the Secretary of the Treasury, appoint a receiver to wind up the business of the association, as provided in section fifty-two hundred and thirty-four. Act June 3, 1864, c. 106, § 31, 13 Stat. 108. Act March 1, 1872, c. 22, 17 Stat. 32. This section was amended by Act June 20, 1874, c. 343, § 2, post, § 9748, by providing that the banking associations named should not be required to keep on hand any amount of money whatever by reason of the amount of their respective circulations, but that the moneys required to be kept on hand by said associations should be determined by the amount of their deposits solely, as provided by this section. The Federal Reserve Act of Dec. 23, 1913, c. 6, § 27, 38 Stat. 274, as amended by Act Aug. 4, 1914, c. 225, 38 Stat. 682, provided that this section and other specified sections of the Revised Statutes, which were amended by the Aldrich-Vreeland Act of May 30, 1908, c. 229, 35 Stat. 546, were re-enacted to read as they read prior to May 30, 1908, subject to such amendments and modifications as were prescribed in said Federal Reserve Act of 1913. This section not having been expressly amended by said Act May 30, 1908, c. 229, said provision of the Federal Reserve Act can have no effect other than to leave this section as set forth here, subject however, to any implied amend ments or modifications which may be found in the other provisions of said Federal Reserve Act of Dec. 23, 1913, c. 6, set forth post, §§ 9785--9805. The provisions of this section, relating to reserves of national banks, were made inapplicable to deposits of public moneys in designated depositaries, by said Aldrich-Vreeland Act of May 30, 1908, c. 229, § 14, ante, § 9692. See notes to said § 9692, ante. Upon application in writing by three-fourths of the national banks located in any city having a population of 50,000, asking that the name of such city be added to the cities named in this and the following section, the Comptroller of the Currency was authorized to grant the application, and every bank located in such city was required to keep on hand the reserve fund required by this section in the manner prescribed herein and by R. S. § 5195, by Act March 3, 1887, c. 378, § 1, post, § 9749. Upon application in writing by three-fourths of the national banks in any city having a population of 200,000, asking that such city may be a "central reserve city," as provided by R. S. § 5195, the Comptroller of the Currency was authorized to grant the application, and every bank located in such city was required thereupon to have on hand twenty-five per cent. of its deposits, as provided by this section, by Act March 3, 1887, c. 378, § 2, post, § 9750. The Federal Reserve Board was authorized to add to the number of reserve and central reserve cities, or reclassify the same, or terminate their designation as such, by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 11, as amended by Act Sept. 7, 1916, c. 461, post, § 9794. The amount of reserves to be kept by the Federal reserve banks, and their member banks, was prescribed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 19, as amended by Act Aug. 15, 1914, c. 252, post, § 9801. Provisions for redemption of circulating notes at the Treasury were made by Act June 20, 1874, c. 343, § 3, Act March 3, 1875, c. 130, § 3, Act July 14, 1890, c. 708, § 6, post, §§ 9751, 9753, 9754. Provisions for redemption of circulating notes of banks extending their period of corporate succession, issued prior to such extension, were made by Act July 12, 1882, c. 290, § 6, ante, § 9670. Additional provisions for the retirement of circulating notes and the refunding of the bonds deposited as security therefor were made by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 18, post, § 9800. The creation of Federal reserve districts, Federal reserve cities, and Federal reserve banks was provided for by said Federal Reserve Act of Dec. 23, 1913, c. 6, § 2, post, § 9786. National banks, failing to signify their acceptance of the Federal Reserve Act within a prescribed time, were required to cease to act as reserve agents, on notice to be given within the discretion of the Reserve Bank Organization Committee or the Federal Reserve Board, by said Federal Reserve Act of Dec. 23, 1913, c. 6, § 2, post, § 9786. The status of reserve cities and central reserve cities was not to be changed by the organization of Federal reserve districts, authorized by said Federal Reserve Act of Dec. 23, 1913, c. 6, post, §§ 9785-9805, except in so far as said act changed the amount of reserves that may be carried with approved reserve agents located therein, by a provision of section 2 of said act, post, § 9786. Notes of Decisions Operation of statute.-There is no right to organize and carry on the business of a national bank except as prescribed by the acts of Congress. First Nat. Bank v. Murray (1914) 212 Fed. 140, 128 C. C. A. 652. Reserve prescribed-Circulating notes. -The German-American Savings Bank of Washington, D. C., incorporated under a law of Congress relating to the District of Columbia, and having a capital of $126,000, is, by virtue of section 6 of the act of June 30, 1876 (chapter 156), required to keep hand a reserve of 25 per cent. of its deposits, and is entitled to receive circulating notes. (1877) 15 Op. Atty. Gen. 606, on Transfer of stock-Fraud of creditors.-A transfer of stock of a national bank made with knowledge that the bank's reserve was below the limit fixed by this section does not raise a pre sumption of bad faith avoiding the transaction as a fraud on the bank's creditors in the event of future suspension; the statute not creating a presumption of inability to continue business as a result of a reduction of the reserve below the legal requirement. Earle v. Carson (1903) 23 Sup. Ct. 254, 255, 188 U. S. 42, 47 L. Ed. 373. Loss from bad loans.-A loss resulting to a national bank from bad loans, which were not repaid, cannot be said to have been caused by a violation of law by the directors in failing to keep on hand the legal reserve required by this section. Allen v. Luke (C. C. 1908) 163 Fed. 1018. Liability of stockholders.-See Wright v. Merchants' Nat. Bank (C. C. 1876) Fed. Cas. No. 18,084. See, also, note under § 9689, ante. Appointment of receiver.-A stockholder of a national bank whose char 1 ter has expired, suing also as cestui Cited without definite application, 924, 927, 141 U. S. 132, 35 L. Ed. 662; Chemical Nat. Bank of Chicago v. Hartford Deposit Co. (1896) 16 Sup. Ct. 439, 440, 161 U. S. 1, 40 L. Ed. 595; Fisher v. Tradesmen's Nat. Bank (1894) 64 Fed. 706, 707, 12 C. C. A. 409; Frelinghuysen v. Baldwin (D. C. 1882) 12 Fed. 395; U. S. v. Schlierholz (D. C. 1905) 137 Fed. 616. § 9747. (R. S. § 5192.) What may be counted toward the “lawfulmoney reserve." Three-fifths of the reserve of fifteen per centum required by the preceding section to be kept, may consist of balances due to an association, available for the redemption of its circulating notes, from associations approved by the Comptroller of the Currency, organized under the act of June three, eighteen hundred and sixty-four, or under this Title, and doing business in the cities of Albany, Baltimore, Boston, Charleston, Chicago, Cincinnati, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh, Richmond, Saint Louis, San Francisco, and Washington. Clearing-house certificates, representing specie or lawful money specially deposited for the purpose, of any clearing-house association, shall also be deemed to be lawful money in the possession of any association belonging to such clearing-house, holding and owning such certificate, within the preceding section. Act June 3, 1864, c. 106, § 31, 13 Stat. 108. "Lawful-money reserve" § 9748. (Act June 20, 1874, c. 343, § 2.) This section was part of the Currency Act of 1874, cited above. Section 31 of the "national-bank act," mentioned in this section, was incorporated into R. S. §§ 5191, 5192, ante, §§ 9746, 9747. See notes to said R. S. § 5191, ante, § 9746. So much of this section as provided that the fund deposited by any national banking association with the Treasurer of the United States for the redemption of its notes should be counted as a part of its lawful reserve was repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 20, post, § 9802, which also further provided that such fund of five per centum should in no case be counted by any national banking association as a part of its lawful reserve. § 9749. (Act March 3, 1887, c. 378, § 1, as amended, Act March 3, 1903, c. 1014.) Additional "reserve cities" of 25,000 inhabitants. Whenever three-fourths in number of the national banks located in any city of the United States having a population of twenty-five 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 ninety-one and fifty-one hundred and ninetytwo 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 fifty-one hundred and ninety-one and fifty-one hundred and ninety-five of the Revised Statutes. (24 Stat. 559. 32 Stat. 1223.) This was the first section of an act to amend R. S. §§ 5191, 5192, and for other purposes. Section 2 of the act is set forth post, § 9750. Section 3 of the act amended the Resumption Act of Jan. 14, 1875, c. 15, § 3. and is incorporated in the section amended as set forth ante, § 6543. This section was amended by Act March 3, 1903, c. 1014, cited above, by réducing the limit of population of cities which may become reserve cities from 50,000 to 25,000. R. S. §§ 5191, 5192, 5195, mentioned in this section, are set forth ante, $$ 9746, 9747, and post, § 9756. See notes to said R. S. § 5191, ante, & 9746. § 9750. (Act March 3, 1887, c. 378, § 2.) Additional "central reserve cities." 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 ninety-five 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, twenty-five per centum of its deposits, as provided in section fifty-one hundred and ninety-one of the Revised Statutes. Stat. 560.) (24 See notes to preceding section of this act, ante, § 9749, and to R. S. § 5191, ante, 9746. § 9751. (Act June 20, 1874, c. 343, § 3.) Reserve in Treasury for redemption of circulation; redemption of circulating notes. Every association organized, or to be organized, under the provisions of the said act, and of the several acts amendatory thereof, shall at all times keep and have on deposit in the Treasury of the United States, in lawful money of the United States, a sum equal to five per centum of its circulation, to be held and used for the redemption of such circulation; which sum shall be counted as a part of its lawful reserve, as provided in section two of this act; and when the circulating notes of any such associations, assorted or unassorted, shall be presented for redemption, in sums of one thousand dollars, or any multiple thereof, to the Treasurer of the United States, the same shall be redeemed in United States notes. All notes so redeemed shall be charged by the Treasurer of the United States to the respective associations issuing the same, and he shall notify them severally, on the first day of each month, or oftener, at his discretion, of the amount of such redemptions; and whenever such redemptions for any association shall amount to the sum of five hundred dollars, such association so notified shall forthwith deposit with the Treasurer of the United States a sum in United States notes equal to the amount of its circulating-notes so redeemed. And all notes of national banks worn, defaced, mutilated, or otherwise unfit for circulation shall, when received by any assistant treasurer or at any designated depository of the United States, be forwarded to the Treasurer of the United States for redemption as provided herein. And when such redemptions have been so reimbursed, the circulatingnotes so redeemed shall be forwarded to the respective associations by which they were issued; but if any of such notes are worn, mutilated, defaced, or rendered otherwise unfit for use, they shall be forwarded to the Comptroller of the Currency and destroyed and re placed as now provided by law: Provided, That each of said associations shall re-imburse to the Treasury the charges for transportation, and the costs for assorting such notes; and the associations hereafter organized shall also severally re-imburse to the Treasury the cost of engraving such plates as shall be ordered by each association respectively; and the amount assessed upon each association shall be in proportion to the circulation redeemed, and be charged to the fund on deposit with the Treasurer: And provided further, That so much of section thirty-two of said national-bank act requiring or permitting the redemption of its circulating notes elsewhere than at its own counter, except as provided for in this section, is hereby repealed. (18 Stat. 123.) This section was part of the Currency Act of 1874, cited above. The provisions of section 32 of the National Bank Act of June 3, 1864, c. 106, 13 Stat. 109, mentioned in this section, were incorporated into R. S. § 5195, post, § 9756. The manner of destroying circulating notes was prescribed by Act June 23, 1874, c. 455, § 1, ante, § 6560. Provisions relating to the appointment of a clerical force to carry out the provisions of this section were made by Act March 3, 1875, c. 130, § 3, post, § 9753. Other provisions relating to the redemption of circulating notes at the Treasury were made by the Sherman Purchase of Silver Act of July 14, 1890, c. 708, § 6, post, & 9754. Said provisions, however, are not applicable to deposits made under the requirements of this section. Circulating notes presented to the Treasury for redemption were to be redeemed in lawful money, by the Aldrich-Vreeland Act of May 30, 1908, c. 229, § 12, post, § 9752. In addition to the redemption fund required by this Section, any national banking association having outstanding any of the additional circulating notes authorized to be issued by the Aldrich-Vreeland Act of May 30, 1908, c. 229, 35 Stat. 546, was required to keep on deposit in the Treasury an additional sum equal to five per cent. of such additional circulation, to be treated, held, and used in the same manner as the fund provided for by this section, by said Act May 30, 1908, c. 229, § 6, 35 Stat. 550. So much of this section as provided that the fund deposited by any national banking association with the Treasurer of the United States for the redemption of its notes should be counted as a part of its lawful reserve was repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 20, post, § 9802, which also further provided that such fund of five per centum should in no case be counted by any national banking association as a part of its lawful reserve. Whenever any bank belonging to a national currency association failed to preserve or make good its redemption fund required by this section, and the national currency association failed to make good such fund, the redemption fund belonging to other banks composing the national currency association was to be applied to make good such fund, and the securities deposited by such bank were to be sold, and the proceeds of the sale deposited as a redemption fund, by the Aldrich-Vreeland Act of May 30, 1908, c. 229, § 2, 35 Stat. 548. See notes to Chapter Two A of this Title. See, also, notes to R. S. § 5191, ante, § 9746. Notes of Decisions Signature to bank note.-A national bank note placed in circulation without signature of the president and cashier of the bank being redeemable under Act June 20, 1874, and Act July 28, 1892, held an obligation or security after the similitude of an "obligation or security" issued under authority of the United States, within section 10320, post. Wiggains v. U. S. (1914) 214 Fed. 970, 131 C. C. A. 266. Redemption of circulation.-A national banking association may, under this section, deposit coin in the Treasury |