Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1842-02-12
THE BANK LAW.

regulation Oh the banks has been signed by the
Governor. We publish the bill entire, with
exception of a few unimportant sections, the
legal verbiage (Which we have exchanged for
more concise language.
The law renews the charters Of all banks
located in New Orleans on the following con-
ditioDs
l. Each bank shall separate its loans on
capital paid III from lis loans en- deposi.es the
the loans on capital to be composed Of accom-
mod atoms on personal securIty,or n mortgage,
loans on stock by the property banks, and OF
all other investments of whatever nature not
realizab!e in ninety days.
The loans Oh deposltes and specie, repre-
sentlng the paper none issued cy the banks,
shall be restricted to paper payable in full at
maturity, such paper shall form a component
port Of the specie basis intended to meet the
| circulation and deposites, and shall be restricted
to so days, so as to edectually insure a rapid
movement in the daily receipts.
The loans and lnvestme mtg on the capital
| shall be denomina'ed the dead weight
The loans on tcposites shall be denominated
the movement of the banks
2 No bank sh1ll increase the investment in
its dead weight SO long as the whole Of its
cash liabilities shall not he represented by one
third of the amount of such responsibilities in
specie, and at least two thirds in satisfactory
paper, payable in full al maturity, and within
ninety days; and each and every director
q all be personally responsible for all loans
and Investments made in coftraventlon Of this
rule, unless he shall chow that he has voted
against the same if present.
Provided that nothing herein contained shall
be so construed as to relieve any bank from lts
obligation to lend the amount in the country
required by its charter provided further that
no bank shall be authorised to increase the
amount of its present loans, in The City OF
New Orleans, until such bank shall have made
the loans required by its charter in the differ
ent country parishes.
8. That the account Of the maker or endor-
ser OF any note, or acceptor Of any bill of eX-
chang offered and discounted as paper strict
ly payable at maturity who shall apply for q
renewal of said paper, or for an extension o.
time, shall be closed in the hank wh re such
transaction shall have originated, and notice
hereof shall lie Immediately given by such
bank to the other banks.
4. That every parry TO commercial paper
vino shall suffer such paper 10 be protested
ard if a drawer Of a bill of exchange or en-,
dorser Of a pronisaory note or bill, shall! suffer
1t to remain unpaid during ten days without
any legal GAUGE. shall be considered de fact'
d.scredited, and the fact shall be notified tt
the Bard Of Currency. and the other banks
and no discount stall be afterwards allowed
HIM as drawer or acceptor until lie has paid a
the tu!! amount.
5. That all paper offered for discount, an
having 10 more than ninety days to run, saal
be cons dered de facto as payable in iull &
maturity.
6. That any director, leaving the State
shall be cons .dered az having de facto resign
Ell, unless it be i r a term not eyceealing tbir
ty DAYS, and any direc.or doniciled in the frs
judicial dissric,, falling to attend, without per
mission, five regular meetings of the board il
SUCCESSION, shall also be cons. dered, except i
cas e Of sickness, as having vacated his place
NJ person shall be elected or shat! serve as
d re,for of any bank in the State of Louis:an9
who shlII rot at the time OF election or ar
, Pertinent be a citizen of the United State
, and o this Safe.
E Section BAD. It sh1ll be the duty of tn
;, Govern of the State, Immediately after I'll
prolnul 1atlol of this act aud every year there
:. after IN the last week of January 10 appnlr
three persons with the following q~aaiIflca
q tons:
lst. To be a citizen of the United State
and OF the Stale of Louisiana, and to have re
sided four consecutive years therein.
ID. Not to lie a director or commercial par
ner Of any bank director or officer OF a bank.
Sd. Not TO he a money broker.
And said persons shall organise tbemseive
c into a Beard TO Re S yled the Bard OF Gu
: renew the frs; B a.d % serve ul.ll the ar
Monday in February 1913 and until replace
Ivy new appointments, and said Board shall Al
point one among themselves 10 act as pres
g dent. Said members shall be entitled ca h
e a salary OF four thousand dollars per annu
in full for his services and Office expenses, Il
whole to be paid quarterly by the banks wor
a ing under this act, and each pro rata OF It's ca
ital paid in. The duty of the Board OF Cure
CIV shall be, to take c re, that the paper none
g tssued nader the authority of the State, be n
N deprcr;ated and for this purpose the follo'
y mo p,wers are hereby vested in them, to WI
" TO supervise The faithful execution
le this art. and OF the charters and by laws of
. Ban s working under it.
2. Thoroughly to examine the affairs OF a
re bank Whenever they may deem it ezpedient
a do SO, and at least quarterly.
OF 3 To require Of the President and Cashl
Of each bark on Saturday Of each week t
C, following statement in a printed form sign
~ by them:A
u L. CAPITAL iealized s.
e 9. Amount of dead weight under the
ny ~sractive heads Of Real Estate, loans CD s;oF
lone loans, personal or otherwise; protesi
,,e' narer: and in fine, of all assets not reaizal
within ninety days.
OF 2, Movement of the hank, to wit: Los
lat on paper payable at maturity and intended
~ meet the two thirds Of cash liabilities TN
presented by specie. Circulation.
Els Depcs.tes and other cash liabilities.
IL Specie and cash assets.
4, Said statements shall be regularly II
in the Office of tie Board of Currency, and
~ Statement s so furnished on the last satur
in each month shall be signed by the Pr
deaf of the Board of Currency, and pubits
in the Stale paper on the first monday IN G.
res month.
~ :, The Board of Currency, whenever I
y" NAV think it expedient, shall have the righ
calling a meeting of the proprie'ors OF any
of the said banks, to take cogliisance oil
affairs.
N And said Board of Currency shall lay
fore the Legislature, in the first week oil &
.;.a annual session, or as soon as pract'eabie In
after, a full copy OF all proceedings at s
meetings of the stockholders, and OF al
sno their own doings during he year. And it $
hc the duty OF the President and Cashle
the eacn ana every yam nro.ss, ths, ma,
entered into by any director of said banf
,ay- soon as inc III
the nates.
arch Each member of the Board of Currenc
nth take cath to fulfill faithfully the provision
e in this act
s44, Section 3d. BE it TURNER eaae1ee' =.
arch with q view oi enabling the oailks eliecA