The Portsmouth inquirer. [volume] (Portsmouth, O. [Ohio]) 1849-1855, 1851-04-14

tons under ten dollars; after the year
eighteen hundred and sixty the Legisla-
ture may prohibit the circulation of bank
notes Of a less denomination than five
dollars, in which event, in lieu of notes
Of less denomination than Eve dollars,
notes. of the said denomination Of FIVE
dollars shall be furnished for circulation
to any bank thereafter organized; and in
lieu Of notes of less denomination than
FIVE dollars, as fast as the same shall be
redeemed by any bank, notes of the de-
nomination of five dollars shall be fur
nished to such bank, and the notes so re-
deemed shall be entered in the proper
book or books, and burned in the same
manner as provided in 81 section of this
act.
SEC. II. No banking company, hereby
authorized shall, at any time, issue, or
have in circulation, any note, draft, bill
of exchange, acceptance, certificate Of
deposite, or other evidence ofdebt, which,
from its character or appearance, shall
be calculated or intended to circulate as
money, other than such notes of circula-
ton as are by this act described. H.l
Sec. 1e. Each banking company here
in authorized, shall receive at par, at the
Office or banking house of said company,
in payment for debts due such company,
the notes of circulation issued by any
other banking company authorized to is
sue such notes by this act, which shall
at the time, redeem its notes in gold and
silver coin.
Sec. 19. Each banking company shall
at all times have on hand, in gold and sill
yer coin, or their equivalent, one-half at
least Of which shall be in gold and silver
coin, in its vault, an amount equal to at
least thirty per centum of the amount of
its outstanding notes Of circulation; and
whenever the amount of its outstanding
notes of circulation shall exceed the above
named proportion, for the space of twelve
days. or whenever the said gold and sill
yer coin or their equivalent shall, at any
time, fall below the amount of twenty per
centum of its circulation, no more of its
notes shall be paid out, or otherwise be
put in circulation, by such company; nor
shall such company increase its liabilities
by making any new loans or discounts,
other than discounting or purchasing bills
of exchange, payable at sight, nor make
any dividend of It's profits, until the re-
quired proportion between its outstanding
notes of circulation and gold and silver
coin on hand, shall be restored; actual de-
posits with any solvent bank or banker of
established credit, in the cities of New
York, Boston, Philadelphia Or Baltimore,
subject to be drawn against at sight, pay
able in gold and silver coin, shall be
deemed equivalent to gold and silver
coin, wherever these terms are used in
this act
SEC. 20. No banking company herein
authorized, shall at any time be indebt-
ed, or in any wayaliable, to an amount
exceeding the amount of its capital stock
at such time actually paid in and remain
ing as capital stock, undiminished by los
ses or otherwise, except on the following
accounts, that is to say: First-0n ac-
count of its notes of circulation: Second
ON account of moneys deposited with
or collected by such company; Third
On account of bills ofexchange or drafts,
drawn against money actually paid in de-
post to the credit OF, or due to such COM
pany; Fourth-Liabilities to its stockhold-
ers, on account of money paid in on cap
ital stock and dividends thereon.
Sec. 21. No banking company shall
either directly or indirectly, pledge by-
pothecate, or exchange, any of its notes
of circulation, for the purpose of procu-
ring money to be paid on its capital stock,
or to be used in its ordinary banking opera
tons, or for the purpose of purchasing stocks
to be deposited with the Auditor of State;
nor shall any banking company apply, or
permit TO be applied, hypothecated, or
pledged, any portion of its capital stock,
to the purchase of certificates of stock, to
be deposited with the Auditor of State, as
collateral security for the redemption of
its notes of circulation.
Sec. 22. No banking company shall,
during the time it shall continue its oper-
ations as bank, Withdraw or permit to
be Withdrawn either in form Of indivi-
dends, loans, to stockholders for longer
period of time than six months, or in any
other manner, any portion of its capital
stock, and if losSes shall at any time have
been sustained by any banss;;,c,ss company
equal to, or exceeding its undivided prc. c.
is then on hand, no dividends shall be
made, and no dividend shall ever be
made by any banking company, while it
'hall continue its banking operation to an
lmount greater than its net profits then
IN hand, deducting therefrom its losses,
,ad and suspended debts, and all debts
lue to banking company on which in
crest is past due and unpaid for period
If six months, unless the same shall be
we'll secured, and shall be in process of
collection, shall be considered bad or sus-
'ended debts within the meaning of this
let. aose
Sec. %. The directors Of each banking
shall, annually, on the first
Monday in May and November, declare |
dividend of so much of the net profits of
he company, as they shall Judge expedi-
mt, and on each dividend day, the cash