Eastern times. [volume] (Bath, Me.) 1846-1857, 1850-10-10
Free Banking Bill.
STATE OF MAINE,

House OF Representatives, Aug. %, 1850.
ORDERED, The senate concurring that
" an act entitled = can Act to au-
thorize the business of banking reported
from the committee on Banks and Banking,
be referred to the next legislature; and the
secretary of state shall cause said act
as amended in the senate, to be printed
in the several newspapers in the state; and al
SO cause said act, as amended, to be submitted
. to the hank commissioners, whose duty it shall
be to carefully examine the same, and make
report to the next legislature, with such sug-
gestions and alterations as they shall deem
for the public interest
House of Representatives, August %, 1850.
Passed. +. w. FLAGG, Clerk.
In Senate, August 2S, 1850. Passed in
concurrence. A. II. SMALL, Secretary.
A true copy,
Attest ALBERT H. SMALL,
Secretary of the Senate.
AN ACT to authorize the business of Bank
ing.
Be it enacted by the senate and house of rep
resentatives in Legislature assembled, as fol-
lows;
SECTION l. The treasurer of this state is
hereby authorized and required to cause to be
engraved and printed, in the best manner to
guard against counterfeiting, such quantity of
circulating notes, in the similitude of bank
notes in blank, of the different denominations
authorized to be issued by the incorporated
banks of this state, he may from time to
time deem necessary to carry into effect the
provisions of this act, and of such form as he
may prescribe; such blank circulating notes
shall be countersigned, numbered and regis
tered in proper books to be provided and kept
for that purpose in the Office of said treasurer,
under his direction, by such person as the
said treasurer shall appoint for that purpose,
SO that each denomination of such notes shall
bear the uniform signature of such register.
Sect. 2. Whenever any person, or associa-
ton of persons formed for the purpose of
banking, under the provisions of this act,
shall lawfully transfer to the treasurer of this
state any portion of the public stock issued,
or that shall hereafter be issued by this state
or by the United States, or by the state of
Massachusetts,, or by any comfy, or by any
incorporated city in this state, such person or
association of persons shall be entitled to re-
ceive from said treasurer an equal amount Of
such circulating notes of different denomina-
tions, registered, numbered and countersign-
ed as aforesaid; Provided, that the treasurer
of state shall not receive on deposit as the ba-
sis of the issue of any bank bills, stock, or
other evidence of the Indebtedness of any city
whose debt exceeds one third of the value of
the re / estate of such city, according to the
then last valuation thereof; but such public
stock shall in all cases be, or be made to be,
equal to a stock of this state producing SIX
per cent per annum : and it shall not be law
full for the treasurer to take such stock at a
rate above its par value, nor above its current
market value. Provided, however - that no
association of persons shall commence the bu-
sineSs of banking under said act, or receive
circulating notes under the same. until such
association shall have deposited with the
Of tha No reOnired
by law, to the amount of fifty thousand dol
lars; and no individual banker shall COM
mence the business of banking under this act,
or receive circulating notes under the same,
until such individual banker shall have de-
posted with the treasurer the securities re-
quired by law, to the amount of twenty-five
thousand dollars; and it shall not be lawful
for the treasurer or other officer to counter
sign bills notes for any person, or associa-
ton of persons to an amount In the aggregate
exceeding the public stocks, as provided in
the second section of this act, deposited with
the treasurer by such person or association;
and any treasurer or other officer who shall
violate the provisions of this section, SHALL
upon conviction, be adjudged guilty OF mis-
demeanor, and shall be punished by fine not
less than five thousand dollars, or be impris-
oned not less than five years, or by both
such fine and imprisonment. But 1t she'll be
the duty of the treasurer to receive mutllatcd
circulating notes issued by him, and to deliv
er in lieu thereof other circulating notes to the
same amount.
Sect. 3. Such persons or association OF per-
sons, are hereby authorized, after having ex-
ecut=d and signed such circulating notes in
the manner required by law to make them
obligatory promissory notes, to loan and cir
culate the same money according to the or
dina course of banking business as regulat-
ed by the law and usages of this state; but no
such individual banker or association, shall is
sue or put in circulation any bill or note, un-
der the provisions of this act, unless the same
shall be made payable demand, without
interest at the place of business, within this
state, OF such banker, or association; and eve
ry violation of this section by any officer or
member of banking association, or by any
individual banker, shall be deemed and judg-
ed a misdemeanor, punishable by fine or I'M
prisonment, or both, in the discretion OF the
court having cognizance thereof.
Sect. 4. In case the maker or makers of any
such circulating note or notes. counterslgned
and registered as aforesaid, shall at any time
hereafter, on lawful demand, during the US
ual hours of business between the hours of ten
and three o'clock, at the place where such
note or notes, is or are payable, fail or refuse
to redeem such note in the lawful money of
the United States, or to pay any deposits
made by any person in such bank, the holder
of such note or notes, or such depositor, max
ing such demand, may cause the same to be
protested for such non payment by notary
public under his seal of Office, in the usual
manner; and the treasurer of state, on receiv-
ing and filing in his office such protest, shall
forthwith give notice in writing to the maker
or makers of such note or notes, to pay the
same; and if he or they shall omit to do so for
fifteen days after such notice, the treasurer
shall Immediately thereupon (unless he shall
be satisfied that there is a good and legal de-
tense against the payment of such note or
notes,) give notice in the state paper, that all
the circulating notes issued by such person,
or ASSOCIATION, will be redeemed out of the
trust funds In his hands for that purpose; and
he shall be required to apply the proceeds of
said trust funds belonging to the maker or
makers of such protested notes, to the paw
ment, pro rata, of all such circulating notes.
whether protested or not, put in circulation
by the maker or makers of such protested
notes, pursuant to the provisions of this act;
and to adopt such measures for the payment
ofsuch notes as will in his opinion most effec-
tually prevent loss to the holders thereof and
to this end, if he deem it expedient, he may
proceed to sell at public auction sad funds,
or any or either of them, and pay and cancel,
with the proceeds thereof, said ollis or notes;
and such association shall be liable to pay the
holder of every bill CT note put In clrcuiatlon
as money, the payment Of which snat nave
been demanded and refused, damages tor non
payment thereof, in lieu of interest, at and al
ter the rate Of twenty -four per cent per an
mum, from the expiration of the fifteen days
aforesaid, and until the payment of such evi-
dence of debt, and the DAMAGE thereon: but