ver he chooses to do so.

12. Each bank must pay to the treasurer of the United States a tax
equal to one per cent. per annum on the average amount of its
notes in circulation. The shares are liable to taxation by the
States in which they are situated at the same rate as other
moneyed capital owned by the citizens of such States.

13. Any gain arising from lost and destroyed notes inures to the
benefit of the United States.

14. The comptroller has the absolute appointment of all receivers and
fixes their compensation. All moneys realised from the assets
are paid into the treasury to the credit of the comptroller, and
all dividends are paid out by him.

15. Over-certification of cheques is strictly prohibited, rendering
officers or clerks liable to imprisonment.

16. National bank directors are by law individually liable for the
full amount of losses resulting from violations of the national
banking laws.

STATE BANKS

Upon the establishment of the national banking system the greater
number of the banks incorporated under the laws of the several States
were organised as national banks. With others, however, the rights of
issue did not outweigh some inconveniences of the national system, and
as a result there is now an important class of banks, and loan and
trust companies, organised under State legislation and carrying on a
deposit and loan business. The regulations under which they work are
necessarily diverse, and the amount of public supervision over them
varies in different states. The State banks in existence when the
national banking system was organised were obliged to retire their
note circulation, owing to the fact that the government imposed a tax
of ten per cent. on their circulation. The object of the tax was to
secure the retirement of the State bank-notes to make room for the
circulation of the national banks. The internal mechanism of State
banks differs but slightly from that of national banks.

II. SAVINGS BANKS AND TRUST COMPANIES

SAVINGS BANKS

Nearly $2,000,000,000 is deposited in the savings banks of the United
States. This large sum represents the savings of about 5,000,000
people. The primary idea of a savings bank and of the post-office and
other forms of saving institutions in foreign countries is to
encourage thrift among the masses of the people.

The older savings banks, especially those in the eastern States, have
no capital stock