Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-03-10
BANK LAW

SEC. l. Be IL enacted By the Legislature of
the State Of Mississippi, That it Shall not be
lawful for any Bank IN this State to issue for,
and keep in circulation at any one time, more
than three times The amount of its specie CAPT.
tai.
SEC. ,. Be IL further enacted, That from and
after the passage of this act, it shall not be law
full for any Bank IN this State to issue any
bank note, bill of exchange, or other evidence
of debt, for circulation, before and until the
present circulation Of such bank shall be re-
duced to an amount not exceeding three tunes
the amount of specie actually in the vaults
| thereof, and bona fde belonging thereto, as the
| basis of Its capital. Nor shall any bank issue
any notes or bills for circulation at any time
to an amount exceeding such proportion of its
| specie basis at the time of issuing the same,
nor shall issue any notes or bills for circulation
at any time when the specie in the vaults OF
such bank shall be less than one-third of its
| circulation.
SEC. 3. Be 1t further enacted. That it shall
be the duty of the President and Directors o.
each bank in this State, twice a year, to make
out statement on oath, TO be administered by
any civil officer, legally authorized to admins
ter oaths, showing the amount of specie at thai
time remaining Ia such bank as the basis of it:
circulation, which statement so made, shall be
filed in the clerks office of the Circuit Court
of The county in which the bank may be loca.
ted; and the clerk of said court shall record the
same in a well bound book, to be kept for thai
purpose, and shall receive as his compensation
therefor, the sum of fifty cents, payable out O
the State Treasury, upon the certificate Of The
Judge assigned to the district.
SEC. 4. BE IL further Rlt1cted, That it shall
not be lawful for any bank in this State to issut
any post note, or note, bill or other evidence @
debt; payable at q day subsequent to its dat
under any device or pretext whatever; nor t
pay from the counter thereof any such post
note, note. bill or other evidence Of debt, il
payment of any debt due by such bank.
SEC. 5. Be Il further enacted, That it shall
not be lawful for any bank in this State to dea
in stocks of any kind, to purchase and hold, Ell
Their in trust, by mortga re or otherwise, an,
personal or real estate, except such alone, or s
much as may be necessary for the proper con
Quoting of the immediate affairs thereof, and a
no time TO exceed in value the sum of one hun
bred thousand dollars: Procided, that TIN
section does not apply to the estate owned b
any bank in any railroad constructed. or to b
constructed by the provisions of its charter
And prorided, also, that such prohibition sha
not prevent any bank from taking mortgages o
other liens upon land or other property to Sc
cure debts already existing.
Sec g. Be Il further enacted, That it sha
not be lawful for any bank in this State to des
in cotton or other commodity as security, G
collateral security for the payment of any loa
or luans made by such bank, or to purchase a
an article of trade any cotton or other ccmmod
ity; and any contract or contracts of wllateve
kind, made In relation to such commod tiles
shall be absolutely null and void.
SEC. z. Be 1t further enacted, That it sba
not be lawful for any bank in this State t
transfer by endorsement or otherwise, an
note, bill receivable, or other evidence of debt
and if it shall appear IN evidence upon the tris
of any action, upon any such note, bill recewa
bic, or other evidence of debt that the sam
was so transferred, the same shall abate upo
the plea of the defendant.
SEC 8. Be Il further enacted, That from an
after the first day of April next, all the bank
and monied corporations in this State shall
required to pay specie at their counters, re
spectively, for all their notes or liabilities the
due, of the denomination of five dollars an
under; and that from and after the first day {
July next they shall be required to pay speci
on all their notes and liabilities of the denomin
alton OF ten dollars and under; and that fror
and after the first day of October next, the
shall be required topay specie on all their note
and liabilities of the denomination Of twent
dollars and under; and that from and after tn
fist day of January, 184l, they shall be re
quired to resume spec'e payments upon a
Their notes, bills, bonds, and other liabilities {
whatever denomination then due.
Sec. g. Be IL further enacted, That shoul
any Bank or monied corporation in this Stat
from and after the times prescribed in the pre-
ceding section of this act, refuse to1ay speci
on its respective liabilities as therein specified
and in the manner therein pr, scribed, it sha,
be the duty of the President, cashier or telle
ofsuch bank, to place lis name, together wit
the date, on the back ofsuch note or evidenc
ofIiability on presentation thereof; which sal
endorsement shall be held and deemed stuff
cient evidence of protest and refusal of tn
bank to pay specie; and should the President
cashier or teller refuse so to endorse the same
he shall be liable 70 Indictment. and on con
. viction thereof shall be fined one thousand do
lars, and imprisoned three months
Sec. 10, BE IL further enacted, That when
ever the Governor, either from the certifcat
of the President, cashier or teller, as aforesaid
ofby affidavit of the holder of any such note
bill or other evidence of debt, shall be saiisfe
that such presentment has been duly made an
payment refused, he shall forthwith issue hi
proclamation. declaring that such corporatio
has forfeited all its banking powers and privile
ges a copy of which proclamation he sIa