tice of Finance" (New York: Putnams) and "White's Money and
Banking" (Boston: Ginn & Co.).

3. Take up the papers of the course paragraph by paragraph and ask
yourself the reason why each is introduced. Discuss with your friends
the advantages or disadvantages of particular requirements.

OUR NATIONAL BANKING SYSTEM

The national banking system of the United States was established by an
act of Congress in 1863, revised in 1864, and amended by later
legislation. The great advantage of the system, it is said, is the
feature of uniformity, the fact that it brings the banking business of
the whole United States under one authority and under the supervision
of one set of administrative officers. The note-issuing department is
subordinate in its public usefulness to the facilities afforded by
banks and clearing-houses for the interchange of credits. The
essential features of national banks are briefly set forth as follows:

1. There is a bureau of the Treasury Department having charge of all
matters relating to national banks, the chief officer of which is the
comptroller of the currency.

2. Any number of persons, not less than five, may form an association
for banking purposes, to continue not more than twenty years, but
renewable for twenty years with the approval of the comptroller.

3. The powers of the bank are limited to the discounting of promissory
notes, drafts, bills of exchange, and other evidences of debt;
receiving deposits, dealing in exchange, coin, and bullion, loaning
money on personal security, and issuing circulating notes. It cannot
hold real estate except such as may be necessary for the transaction
of its business, or such as may have been taken as security for debts
previously contracted in good faith.

4. There can be no national banks anywhere of less capital than
$50,000, and these small ones are restricted to places of not
more than 6000 inhabitants. In cities of more than 6000 and less
than 50,000 inhabitants there can be no bank of less than
$100,000 capital, and in cities of 50,000 inhabitants or more
none of less than $200,000. One half of the capital must be paid
in before the bank can begin business and the remainder must be
paid in monthly instalments of at least ten per cent. each.

5. Shareholders are liable for the debts of the bank to an amount
equal to the par value of their shares in addition