The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-05-12
From The Toledo Blade Of April Is
IMPORTANT, TO BILL HOLDERS.

SAFETY FUND BANKs-It should be borne in mind
that no institution under the general banking law o.
safety fund system of Michigan has right te
issue its bills until they endorsed upon the back by
one of the Bank Commissioners of the State These
Commissioners Hon. A. Felch, X Pritchette, and
T. Fitzgerald and any bill having uponi it, the endorse
ment Of either of these three gentlemen, contains
guarantee the holder Of the solvency and honest
management of the institution from which il issued
According TO the law passed Dec 30, 1887, all the
safety fund banks Of the State, required within
ninety days from the passage Of that act give
ty for the liabilities of the bank, by bonds and mortga-
ges upon unincnmbered real estate, exclusive Of build
ngs, three times the amount OF their capital paid in,
which real estate was to be valued under oath, at its
rHe cash uaue by the clerk, treasurer and associate
Judges of the county in which such bank situated,
who to be interested either in the lands estna-
ted in the stock Of any banks. In addition to this,
the personal property Of each stakeholder is liable for
the debts Of the banks the full amount Of his stock
and that Of each director to the full amount Of its
issues Thirty per cent OF the capital stock OF such
bank required to be paid in, specie before per-
mitted to commence operations, and before 1t is allowed
issue any of its bills is required TO be visited by
Of the Bank Commissioners of the State, living nearest
to it whose duty it is to count the gold and silver its
vanlts administer ain oath to each OF Its officers and d
recors, that the amount of specie then hand bona
fde the property Of the bank, and is intended thus
remain for the redemption Of its bills After having
satisfied himself that all things in relation to the nsttu
ton are fair and honest-that the full amount Of
rty has been given in according to law and that the
institution is in the hands OF solvent business men, it
then becomes the duty OF the Bank Commissioner, to
endorse, before stated his in his official capac
ty, upon the back of each bill the bank is permitted to
have in circulation, which shall, case, exceed
twice and half the amount OF the capital paid in. The
directors are required 10 make monthly statements
under oath, to the Bank Commissioners, setting forth
in clear and ample manner, the transactions aud
don of the bank its liabilities and resources; and the
Commissioners themselves, required. at least
i'll every ninety days to visit the banking house Of each
institution within the State, and institute rigid
animation into its condition and operations.
Such are some of the leading features OF the general
banking or safety fund law of Michigan it
lists; and venture say that law ever before
listed to authorize the business Of banking other
corporate business which inteposed many barriers to
fraud presented greater amount of security to the
people than the one above described. II should he
borne in mind that this law differs materially from the
old general banking las of Michigan, under which
several fundamental institutions put into operation
before this law took effect through the fundamentally
Of some two or three Of the old chartered banks by
giving false and fictitious certificates OF specie de-
poses and in other ways aflordlng them facilities TO go
into operation, by evadng the literal intent OF the law
All the institutions under the old law, required
to come under the provisions OF the law Of Both De-
cember, or wind up their concerns Immediately Most
OF them have already given in the additional securities,
and in other respects complied with the requirements Of
the law and at very few days, at the arthest. the
public will be able to discriminate between those which
are fraudulent nsolvent and those which honest
Nv conducted and entitled TO credit Several OF the
former description have already been put under nnnc
ton by the Commissioners and their ability TO do further
mischief, has, Of course, ceased.