Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1851-12-11

own use; but such power may be revoked upol
such association failing to redeem the circuat
ing notes so issued or whenever in the opinion
OF the treasurer the principal Of such stool
shall become an insufficient security; and the
said treasurer, upon application Of the owners
of such transferred stock in trust, may in h
discretion, change or transfer the same fo
other stocks of the kinds before specified in th
act, or may transfer the said stocks or any par
thereof, or the mortgages or any Of them here
matter mentioned and provided for, upon re-
ceiying and cancelling an equal amount Of sucl
circulating notes delivered by him to such as.
sociation, in such manner that the circulating
notes shall always be secured in full, either by
stocks, or by stocks and mortgages as in this
act provided.
SEC. 6. The bills or notes SO to be counter
signed, and the payment of which shall be So
secured by the transfer of public stocks, shall
be stamped upon their face, "secured by the
pledge of public stocks"
SEC. 7. Instead Of transferring public stocks
as aforesaid, to secure the whole amount Of
such bills or notes, it shall be lawful for such
association, in case they shall so elect, before
receiving any of the said bills or notes, to Sc
cure the payment Of one half Of the whole
amount so to be issued, by transferring to the
treasurer bonds and mortgages upon real cs-
tate, bearing at least six per cent. interest,
payable annually or semi-annually, in which
case all such bills or notes issued by the said
association shall be stamped on their face,
"secured by the pledge Of public stocks and
real estate"
SEC s. The real estate so mortgaged, must
be improved, productive, unincumbered lands
in this state, exclusive of any buildings thereon.
and the amount for which said lands are so
mortgaged must not exceed two-hfihs of the
value Of said lands; nor shall any mortgage be
received for greater amount than five thou
sand dollars each, the treasurer shall prescribe
such regulations for asCcrtainng the title and
value of such lands, as hemay deem necessary,
and such bonds shall be payable within such
time as the treasurer may direct.
SEC. 9. The treasurer may, in his discretion,
re-assign the said bonds and mortgages, or any
ofthem, to the association who transferred the
same, on receiving other approved bonds and
martgages, or public stocks of the description
mentioned in the second section Of this act, of
cuual amount; and when any sum of the prin-
cpal of the bonds and mortgages, transferred
to the treasurer, shall be paid to him. lie shall
notify the association that transferred the bonds
and mortgages, of such payment, and may pay
the same to such association, on receiving other
approved bonds and mortgages of equal amount.
SEC. 10. The association, assigning such
bonds and mortgages to the treasurer, may re-
ceve the annual interest to come thereon, un-
less default shall be made in paying the bills Or
notes to be countersgned as aforesaid, or un-
less, in the opinion Of the treasurer, the bonds
and mortgages, or stocks so pledged shall be-
come an insufficient security for the payment OF
such bills or notes
SEC. IL. In case such association shall fail
or refuse to pay such bills or notes on demand,
in the manner specified in the fourth section
of this act, the treasurer, after the ten days no
ticc therein mentioned, may proceed to sell at
public auction the public stocks so pledged, or
the bonds and mortgages so assigned, or any
or either of them and Out ofthe proceeds oi
such sale shall pay and cancel the said bills OF
notes, default in paying which shall have been
made as aforesaid; but nothing in this act con-
tanned shall be considered as implying any
pledge on the part of the State for the paymen,
of said bills or notes, beyond the proper appli-
cation fthe securities pledged to the treasurer
for their redemption,
SEC. II. The public stocks and bonds ant
mortgages to be deposited th the treasurer
by any such association, shall be held by hin
exclusively for the redemption Of the bills ol
notes Of such association, pnt in circulation a:
money, until the same arc paid.
SEC. l3. The plates, dies, and materials tc
be procured by the treasurer for the printing
and making of the circulating notes provided
for hereby, shall remain in his custody, ant
under his direction; the expenses necessarily
incurred in ncXecuting the provisions of this act
shall be paid by the treasurer out of any none,
in the treasury not otherwise appropriated; ant
for the purpose frembursing the same, til,
said treasurer is hereby authorized and requr
ed to charge against, and receive from suc'
association, applying for such circulating note
such rate per cent. thereon as may be sutlici-n
for that purpose, and as may be just and rea
sonable.
SEC a. 1t shall not be lawful for the treas
urcr or other officer, to counterslgn bills o
notes for any association to an amount in th
aggregate exceeding the public stocks, or pub
lie stocks and bonds and mortgages at thci
value, as before provided in this act, deposite
with the treasurar by such association and an
treasurer, or other officer, who shall violate tn
provisions of this section, shall, upon conyictio
be adludged guilty of misdcmeanor, and sha
be punished by a fine not less than five thou
sand dollars, or be imprisoned not less tina
five years in the State Prison, or by both sue
fine and Imprisonment.
SEC. 10. Any number of persons, not les
than ten, residents Of this state, may associate
to establish Offices Of discount, deposit and Gil
culation, upon the terms and conditions, an
subjected to the liabilities prescribed in this act
; but the aggregate amount ofthc capital stoc
of any such association shall not be less tina
q. fifty thousand dollars, nor more than two hur
) dred and fifty thousand dollars.
) SEC lG. Such persons, under their han'