Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1851-12-04
No. 22.-AN ACT to authorize the business o
banking.
II Is hereby enacted &c.

II is hereby enacted &c.
Sec. !. The treasurer Of the state is hereby
authorized and required to cause 10 be engrav ed
and printed, in the best manner to guard against
counterfeiting, such quantity ofcircuating not es
in the simlltude of bank notes in blank of the
different denominations authorized to be issued
by the Incorporated banks Of this state, as 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 crcu-
lating notes shall be countersigned, numbered,
and registered in proper books to be provided
and kept for that purpose, in the Office of said
treasurer, under his direction, by snch person or
persons as the said treasurer shall appoint Tor
that purpose, so that each donomir alton of such
circulating notes shall bear the Il inform sigma
ture of such register, or OF any OF UGH registers.
SIC. 2, Whenever any assoc alton Of per-
Anlns, notices. than ten in nambeHS residents OF
this state, formed for the purpose { banking I'M
der the provisions Of this act shall lawfully trans
fer to the said treasurer any port on Of the pub
lie stock issued, OF to be issued by the United
States, the State Of Massachuset IS, New York,
Maine, Connecticut, Rhode Islam d. New Hamp.
shire, Vermont, Ohio, New. Jerst ~, or Virginia,
such association of persons sha be entitled to
receive from the said treasurer IN equal amount
of such circulating notes, Of diff erent denomina
tons, registered and countersigr led as aforesaid
but such public stock shall in all cases be, or
be made to be, equal to a stock reducing six per
cent. per annum and it shall moi be lawful for the
treasurer to take such stock at a rfLte above its
par value, nor above Its current mar ket value.
Sec. 3. Such association is lie reby author
lied, after having executed and sigl led such cir
culating notes in the manner requir I'd by law, to
make them obligatory promissory n otes, payable
on demand, 1T the place of bushes IS, within this
STATE, Of such association, to loan and circulate
the same as money, according to the ordinary
course Of banking business, as re gulated by the
laws and usages OF this state.
Sec. 4. In case the makers of any such cir
culatng note or notes, countersig ned and regis
tesed as aforesaid, shall at any time hereafter,
on lawful demand, during the usual hours of
business, between the hours OF en- and three o.
clock, at the place where such note or notes are
payable, fail or refuse to rede EN- such note in
the lawful money ofthC United States, the hold
er of such note or notes, mai ing such demand,
may cause the same to be prot esed for non paw
ment by notary public, under his official sea,
in the usual manner; and the treasurer, on re-
ceiving and filing nhls office such protest, shall
forthwith give notice in wrting,to such makers of
such note or notes, to pay the same and if they
shall omit to do SO, for ten days after such no.
tice the treasurer shall Immediately thereupon,
unless he shall be satisfied that there is good
and legal defence against the payment of such
note or notes. give notice that all the circulating
notes issued by such association will be redeemed
out of the trust furds in his hands for that pur-
pose, which notice shall be given by publishing
the same in some newspaper printed in the coun.
ty where the business of such association is es-
tablished, or in case there is no newspaper print
ed in such county such notice shall be published
in some newspaper printed at Montpelier; and
the treasurer shall be required to apply the said
trust funds, belonging TO the makers of such pro-
tested note or notes, to the payment pro rata of
all circulating notes, whether protested or not,
put in circulation by the makers Of such protest.
ed note or notes. pursuant to the provisions of
this act and to adopt such measures for the
payment of such notes as will in his opinion
msst effeelualy prevent loss to the holders
thereof
Sec. 5. The treasurer may give to any asso-
citation, SO transferring stock, in pursuance of
the provisoils Of this act, powers of attorney to
receive interest or dividends thereon, which such
association may receive and apply to their own
use I; but such power may be revoked upon such
association failing to redeem the circulating
notes SO issued, or whenever in the opinion Of
the treasurer the principal Of such stock shall
become an insufficient security and the said
treasurer, upon application of the owners of such
transferred stock in trust, may, in his discretion
change or transfer the same for other stocks Of
the kind before specified in this act, or may
transfer the said stocks or any part thereof, or
the mortgages, or any of them hereinafter rren.
toned and provided for, upon receiving and can
ceiling an eqna amount of such circulating
notes delivered by him to such association. in
such manner that the circulating notes shall al
way be secured in full, either by stocks, or by
stock and mortgages, as in this act provided.
SEC. 6. The bills or notes so to be counter
signed, and the payment Of which shall he so
secured by the transfer of public stocks, shall be
stamped upon their face, "secured by the pledge
Of public stocks"
SEC. 2, Instead of transferring public stocks
as aforesaid, to secure the whole amount Of such
bills or notes, 1t shall be lawful for such associ-
alton, in case they shall so elect, before receiv.
ing any of the said bills or notes, to secure the