The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1851-04-16
nv shall failTt0 redeem, il, gold and silver

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ny shall failItc redeem, in gold and silver
COIN. any Of its circulating notes issued in
pursuance Of the provisions Of this act
whsh payment thereof shall be lawfully
demanded, during the usual hours Of bus
iness, at the Office ofisuch company, the
holder OF such note or notes may cause
one or more thereof to be protested by a
notary public, who shall, on protesting the
same, forthwith forward notice of such
protest TO the Auditor of State, and after
such protest suffered, ii shall not be lawful
forthe company thus suffering protest, to
pay out any Of its notes, discount any
notes or bills, or otherwise engage in the
Business OF banking, except 10 receive and
safely keep moneys belonging to it, and
deliver special deposits, and where the
holder Of such notes shalfcause more than
one to be protested on the same day he
shall not receive pay for more than one
such protest. sse @
SEC. 35. In case any such banking
company shall fail TO pay, and redeem its
circulating notes on demand, in gold or
ouVCI COlIl, dS SpoSillCu III ltS uCAb DTcCcs
ding sectionoft this act,the Auditor Of State
shall, within twenty days after he shall
have received notice OF such failure, cause
the stocks pledged by such company, or
sos'much thereof as may be necessary 10
redeem the outstanding circulating notes
of such company, to be sold either at the
Stock Exchange in the city Of New York,
after giving notice Of such sale TO such
company, and also advertising the time
and place Of sale, with pertinent descrip-
ton of the stocks to be offered for sale, in
twoior more newspapers published in the
city ofNew York, and in general circula-
tion, for not less than ten consecutive days
before the day Of sale, or at the office Of
the Auditor Of State. in the city Of Colum-
bus, giving notice to said company, and
also advertising in one or more newspa-
pers published and in general circulation
in he city Of Columbus, and one or more
newspapers in general circulation in the
county where the Office of such failing
company is situated, which advertisements
shall contain the same particulars as are
required herein, where sales are to be
made in the city Of New York; and out of
the proceeds Of such sale, the Auditor shall
pay,ion the circulating notes Of such bank,
as'the same may be presented, ratable
proportion Of the proceeds Of such sale,
not exceeding the amount due on said
notes; and due notice shall be given by
the Auditor, that said notes viii be paid at
the office Of the Auditor OF State; Prov-
ded. that il any ofthe circulating notes Of
such failing company shall not be present
ed for redemption at the Office Of the Au
ditor Of State, until after the term of two
years from the date Of the first publication
Of the notice to the holders Of such notes
to present the same at said Auditors Office,
the Auditor may pay ratably, TO the hold
ers ol the notes previously presented, if
such notes have not been previously paid
in full, whatever Of the proceeds of such
sale, remaining in his hands, may be need
cd TO fully discharge such notes SO present
cd. Whenever default shall be made in
the payment Of the circulating notes of any
banking company established under the
provisions Of this act, every stockholder
shall, for such notes, be individually liable,
in proportion to the stock held by such
stockholder in such bank, TO the extent and
to the full amount Of the respective shares
Of fnstock owned in such bank by such
stockholder. Where bank is owned by
less than six stockholders, they shall be
Individually liable, as natural persons, for
all, debts and Ii liabilities of such bank.
SEC. Sc. The Auditor Of State may, if
he shall deem that the interests Of the note
holders Of any insolvent banking compa-
ny will be best promoted thereby, with the
advice OF the Treasurer and Secretary of
State, hypothecate, or sell at private sale,
any Of the stocks transferred to and de-
posted with him by such company, TO any
other banking company, or to any indiyid-
uaL, person or firm, and receive therefor
either money or the circulating notes of
such failing company; Provided, that no
such stock shall.be sold, at private sale, at
less than the par value thereof, nor at less
than its selling price at the New York
Stock Exchange. at the date OF the last re-
ceived information; nor shall any such
stock be sold ON credit.
SEC. 81. On receiving notice that any
such banking company shall have commit
ted an act Of insolvency, as herein before
defined, the Treasurer of State, the Secre-
tary of State, and the Auditor Of State, or
amsjority, Of them, shall appoint spe-
ciai agent, who shall Immediately proceed
to ascertain whether such company has
refused to pay its notes in gold and silver
coin, when lawfully demanded, and re-
port to the said Treasurer, Secretary and
Auditor the facts SO ascertained; and if.
from the report so made, said Treasurer,
Secretary and Auditor, or majority of
them, shall be satisfied that such company
Ras suspended the payment Of its circulat-
ing notes, when lawfully demanded, in
gold and silver coin, they shall forthwith
appoint a receiver or receivers, and re.