During Mr. Hulburd's administration, the law was amended to provide a penalty for imitating national bank circulation; for the refunding of excessive tax on circulation; restricting State taxation of shares of national bank stock; prohibiting loans on the credit of United States or national bank notes and the withholding of such notes from circulation; requiring reports of condition and of earnings and dividends to be made to the Comptroller; prescribing a penalty for false certification of checks; and for embezzlement, abstraction, misapplication, etc., of any moneys, funds or credits of a bank; making false entries in the books of the association, in reports to the Comptroller, etc.; for the retirement of circulation by liquidating banks; and providing for the organization of banks to issue gold notes.

This latter Act provided that upon the deposit of any United States bonds, bearing interest payable in gold, with the Treasurer of the United States, in the manner prescribed by the national bank act, the Comptroller of the Currency was authorized to issue to such associations circulating notes to an amount not exceeding eighty per centum of the par value of the bonds deposited, redeemable upon presentation in gold coin of the United States, and the banks issuing such notes were required to carry a reserve against them of not less than twenty-five per centum of the circulation outstanding, in gold or silver coin of the United States.

There were ten associations organized under this Act, nine of which were located in California, and one at Boston, Mass.

The Act of February 14, 1880, authorized the conversion of all such banks into regular currency associations. Seven of these banks reorganized as currency associations and three went into voluntary liquidation, the last one in February, 1880, since which date there has been no national gold bank.

JOHN JAY KNOX Comptroller of the Currency, 1872 1884

JOHN JAY KNOX Comptroller of the Currency, 1872-1884.