Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-10-09

ciple of such stock shall become an INSULT
Gent security; and the said comptroller
upon the application Of the own n or own
ers fsuch transferred stock in trust, may
in his discretion, change or transfer the
same for other stocks Of the kind before
specified in this act, or may re-transfer the
said stocks, or any part thereof, or the
mortgages, or any of them hereinafter
mentioned and provided for, upon receiv-
ing and cancelllng an equal amount OF
such circulating notes delivered by him to
such person or association, in such man.
ner that the circulating notes shall always
be secured in full either by stocks or by
stocks and mortgages, as in this act pro-
vided.
6. The bills or notes SO to be coun-
tersigned, and the payment ofwhich shall
be SO secured by the transfer Of public
stocks, shall be stamped on their face
Secured by the pledge Of public
stocks"
7. Instead of transferring public
stocks as aforesaid to secure the whole
amount of such bills or notes, it shall be
lawful for such person or association of
persons, in case they shall so elect before
receiving any Of the said bills or notes,
to secure the payment of one BALI of the
whole amount so to be issued by transfer
ing tothe comptroller, bonds and mort
cages upon real estate, bearing at least
six per cent interest of this state, payable
annually or semi-annnally; in which case
all such bills or notes issued by the said
person or association of persons. shall be
stamped on their face Secured by
pledge Of public stocks and real es-
tate"
5 s. Such mortgages shall be only
upon improved, productive, unincumbered
lands within this state, worth inde-
pendently of any buildings thereon, at
least double the amount for which they
shall have been mortgaged; and the comp
troller shall prescribe such regulations for
ascertaining the title and value of such
lands as he may deem necessary; and
such mortgages shall be payable within
sucha time as the comptroller may di-
rect.
8. The comptroller may, in his dis
erection, re-assgn the said bonds and mort
cages, or any of them, to the person or
ASSOCIATION who transferred the same, on
receiving other approved bonds and mort
cages Of equal amount; and when any
sum OF the principal of the bonds and mort
cages transferred to the comptroller shall
be paid to him, he shall notify the person
or association that transferred the bonds
and mortgages ofsuch payment, and may
pay the same to such person OF associa-
ton on receiving other approved bonds
and mortgages of equal amount.
10. The person or association of
persons assigning such bonds and mort
cages to the comptroller, may receive the
annual interest to accrue thereon, unless
default shall be made in paying the bills or
notes to be countersigned-as aforesaid or
unless in the opinion of the comptroller
the bonds and mortgages or stocks so pied
ged shall become an insufficient security
for the payment Of such bills or notes.
IL. In case such a person or asso-
citation Of persons shall fail o" refuse to
yay such bills or notes on demand in the
manner specified in the fourth section of
this act, the comptroller after ten days no
tice therein mentioned, may proceed to
sell at public auction the public stocks so
pledged or the bonds or mortgages so as
signed or any or either Of them, and out
of the proceeds ofsuch sale shall paw or
canoe, the SAID bills or notes, default in
paving which shall have been made as
aforesaid; but nothing in this act contain
ed shall be considered as implying any
pledge on the part of the state for the pay.
ment Of said bills or notes beyond the pro-
per application of the securities pledged
to the comptroller for their redemption.
5 II. The public debt and bonds and
mortgages to'be deposited with the comp
troler by any such person or association
shall be held by him exclusively for the
redemption Of the bills or notes Of such
person or association put in circulation as
money, urtil the same are paid.
5 13. The plates, dies and materials
to be procured by the comptroller, for the
printing and making of the circulating
notes provided for hereby, shall remain in
custody and under his direction; and the
expenses necessarily incurred in executing
the provisions OF this act, shall be audited
and settled by the comptroller, and pnd
out of any moneys 10 the treasury not
otherwise appropriated; and for the pur-
pose Of reimbursing the same, the said
comptroller is hereby authorised and re-
quirel to charge against and receive from
such person or association applying for
such circulating notes, such rateper cent
thereon as may be suficient for that pur-
pose, and as may be just and reasons
blea
S IA. Il shall not be lawful for the
comptroller, or other officer TO countersign
bills or notes for any person or associa-
ton of persons, to an amount IN the ag-
pregaie exceeding the public debt, OF
public debt and bonds and mortgages at
their value, as provided in the second sec
ton of this act, deposited with the comp
troller by such .personor association; and
any comptroller brother officer who shal
violate the provisions Of this section shall
upon conviction, be adjudged guilty Of !
misdemeanor, and shall be punished By :
fine not less than five thousand dollars, 81
beinprisoned not less than FIVE years, q
Nv both such fine and imprisonment.
s Is. Any number Of persons na5
associate to establish officers Of discolla
deposIte and circulation, upon tpe term
and conditions, and subject to the Liabilities
ntascribed ID this act, but the at
j ,.St ff flsa canifal stock Of any $50