Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-04-23
The General Bank Law.

We annex, from the Albany Argus of Friday the
principal provisions of the New Gene al Bank Law,
which auhorises the creation of banks any of
capital, not under 100000.
It's powers are ample enough and framed on specie
paying principles
l. The comptroller is hereby authorized and re.
qsred 10 cause be engraved and printed in the best
manner, guard against counterietng such quantity
ofsircalatng notes, in the smiitude Of bank in
blank Of the different denominations authorized 10 be
issued by the Incorporated banks of this state he
may from time time deem necessary carry into ef
feet the provisions of this and of such form he
may prescribe. Such blank circulating notes shall be
countersgned numbered and registered in proper books
provided and kept for that purpose in the Office of
said comptroller under his direction by such person
persons as the said comptroller shall appoint for that
purpose that each denomination of such circulating
shall all be of the smilitude and bear the
uniform signature of such register or one OF such re-
gsters.
q Whenever any person association of persons
foraed for the purpose Of banking under the provisions
o. this shall legally transfer to the comptroller any
portion of the public debt created hereafter
be created by the United States by this such
ether 0f the United States shall be approved
by the comptroller person association OF persons
shall be entitled receive from the comptroller equal
amount of such circulating notes. Of different denomna-
egsered and countersigncd aforesad but such
public debt shall in all be- or be made to be- equal
TO stock ofths producing five per cent per annar
and shall not be lawful for the comptroller take any
stock at rate above its par value.
g. Such person association of persons are hereby
authorized after having executed and signed such cir
eulatng in the required by laWs TO make
them obligatory promissoy notes payable on demand
the place OF business within this of such person
asssciaon to loan and circulate the money.
according the ordinary of banking business as
regulated by the laws and usages Of this state.
4. In case the maker makers ct any OF such CIR
culating notes. countersigned and registered as aore-
said shall any time hereafter, on lawful demand du.
ring the usual hours of business between the hours Of
and three o'clock the place where ouch note is
payable fail refuse redeem such note in the lawful
money of the United States, the holder Of such note
making such demand may cause the same to be protest.
ed for payment by notary public under his seal Of
Office the usual and the comptroller re-
ceivng and filing in his Office such protest. shall forth
with give notice in writing to the maker or makers OF
TO do for days after such notice, the comptroller
shall Immediately thereupon unless he shall be satish
ed that there good and legal defence against the
payment of such note notes. give notice IN the state
PAPER that all the circulating issued by such
association will be redeemed out Of the trust funds
in his hands for that purpose and shall be lawful Tor
ths comptroller apply the said trust funds belonging 10
the maker makers Of such protested notes. to the
payment and redemption Of sach notes. with costs
of protest and adopt such measures for the payment
Of all such circulating put in circulation by the
maker makers of such protested notes. pursuant
the provisions Of this act will in his opinion most e
fectaally prevent loss to the holders thereof
The Comptroller is authorized by TIE 9Th section to
give powers Of attorney the transformers Of stock to
receive dividends thereon be applied to their
use these powers be revoked when such person or
company, fail to redeem the circulated the comp
trser may also discretion charge the transferred
stock in ion application of the owners Cor other
stocks retransfer these stocks mortgages
ceiling equal Of circulating notes delivered
by such association tina, the shall be secured
in fall either by stocks mortgages The no:es TO be
stamped their face, secured by the pledge Of pub
lie stocks"
Instead Of transferring public stocks as aforesa i'd
TO secure the whole amount Of such bills notes, il
shall be lawful for such person association Of persons
in they shall elect before receiving any Of the
said bills or notes. to secure the payment Of one half OF
the whole be issued by transferring to the
comptroller bonds mortgages upon real estate bear
ing least six per interest Of this payable
annually semi-annusly in which all such bills
notes ssued by the said person or association OF per-
cons, shall be stamped their face, secured by
pledge Of public stocks and real estate
g. Such mortgages shall be only upon improved pro-
ductve, unmcumbered lands within this state, worth
independently OF any buildings thereon least double
the amour, Tor which they shall be mortgaged and
the comptroller shall prescribe such regulations fer
eeraisng the title and the value Of such lands as he
may deem necessary and such merg ages shall be pay.
able within such time the comptroller may direct
The comptroller may re-assigs these bonds to the
trsnsferer, receiving equal of other good
and when any Of the principal is paid to him. he
mast notify ne uarsferers and may pay the to
them on receiving bonds equivalent
Those assigning such may receive the interest there.
on ssess defsniers in paying notes. unless the boRds
become insufficient security.
IL any fail to pay notes on demand the comptroller
after ten days notice. may sell the stocks bonds &C. 50
pledged public auction, and pay the notes out Of the
proceeds bat the is To be liable for pay
ment
The bonds to be held by the comptroller exclusively
for reseeninr these notes The plates, dies, &c
main In the comptrcllers custody the expense 10 be
paid out Of the treasury. aud per centage thereon
be charged 20 the association
No notes 70 be couniersigned to aggregate amount
above the public debt on pain Of years imprisonment
$1,000 hne, or both.
IS. Asy number Of persons may associate 20 estab
sh Offices Of discount deposite and circulation upon
the and conditions and subject to the liabilities
prescribed N this bat the aggregate amount OF the
capital stock OF such association shall not De less
than one hundred thousand dollars.
10. Ssch persons under their hands and seals, shall
make certificate which shall specify
l. The name assumed t. distinguish such association,
and 10 be used in its alings.
q The place where the operations sf discount and
epo~ise ofsuch association be carried on
ting the particular city, town, or village.
j. The amount Of the capital sock 81 such assoss.
tion and tho number Of shares inse which the sane
n