Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1855-04-06
THE NEW FREE BANK LAW
After recitinp the old Law In full. L

I otus H. ID
THE NEW FREE BANK LAW.
After reciting the old law In full, Il
Is enacted so as to read as follows:
SEC. Q. Any number Of persons not
less than eleven, u majority Of whom
shall be resident citizens ofthis State.
having In the opinion OF the Governor,
Secretary. and Treasurer Of State.
complied with the ncccssa y provisions
Of this act. as hereinafter specified,
may make applications TO the Auditor
Of State. who shall cause to be en-
graved and printed In the best manner,
to guard against fraud and counter
feiting such qantity Of circulating notes
In the similitude OF bank notes, In
blank Of the different denominations
hereinafter authorised to be issued, rs
may from time to time be needed TO
meet the demands of those organiza-
tons, for the purpose Of Banking, as
may correspond with the receipt OF the
Treasurer Of State, ms hereinafter sta
ted.
Sec. ;. Nothing herein contained
shall be so constructed rs to prevent
any banking association from procur.
ing their own plates, dies and other
materials for engraving and printing
blank notes, and furnishing them tc
the Auditor.
Sec. 4. Such bank notes. in blank
so procured or placed In the hands O
the Auditor, rs aforesaid. shall be o
the denomination usually issued BY
banks-from one dollar to FIVE hun
hundred dollars; but such notes shall
not DO Of any intermediate number be
tween five and ten dollars. ten and
twenty. twenty and [6fy1 and ont
hundred dollars: Provided. however
that no banking association, under thi
act. shall DO authorized to issue bill,
for circulation Of less denomination
than five dollars, TO an amount no
exceeding one-twentieth Of their Who'll,
issue: Provided, further, that no bank
under this act. shall be authorized :,
receive orpay out any note or bill O
less denomination than five dollars, Is
sued by any bank or other corporatio,
out Of this State.
Sec. 8. Such bank circulating n ote
shall be countersigned by such Audi
tor, and numbered and registered il
proper books. kept for that purpos
in his Office and under his direction
by such persons as the Auditor shal
appoint. 30 thrt each denomination @
such circulating notes shall all be Q
the same similitudc, and all bear III
uniform signature Of such Auditor an
register.
Sees. Whenever any association q
persons, formed under this act. sha'
legally transfer TO the Treasurer G
Stale fifty thousand dollars worth Q
stocks or bonds. such as hcreinafte
specified, such association Of person
shall be entitled to receive from tn
said Auditor for every one hnndre
and ten dollars worth Of stocks Q
bonds thus transferred and deposited
only one hundred dollars in notes. ,
, different denominations. registered an
countersigned as aforesaid, to be use
by them In the usual course Of banl
ing business as money. Provided. thu
IL all the persons composing such asse
! Citations shall be bona yfds residents I
! this State. and bona .fds owners.
their own right, and not In trust e
the use or benefit Of others. OF III
' stocks or bonds transferred and depo'
tied as aforesaid. then for every on
!. hundred and ten dollars worth ,
stocks or bonds thus deposited. sue
association shall BE- entitled to receiy
only one hundred dollars in notes .
aforesaid; and. propidfd further. III,
7 the aggregate amount Of bank circul'
0 ton. under the provisions Of this Ac
? shall not exceed six million dollar
aud. provided, further that no essocil
ton. under this act, shall have a grea
Q or circulation OF notes than two hun
I dred thousand dollars. Provided (u
r hsr, that the bank notes issued b
/. any banking association. shall be r.
!, ceivable in payment Of any debt or
'. ability due the banking associate
q so issuing such bank notes, and Il
same rule shall prevail for one ycl
after said transfer Of said bank or otl
or stock thereof 10 other individual
for banking purposes. in regard to u
u debts and liabilities incurred eth
n before or after such transfer.
!. Sec. Z. Such stocks shall consist
: any portion of the public debt no
: created, or hereafter TO be created,
o the United States. or by this Stat
l. and chargeablc on the treasury,
/. such other States OF the Union rs pl
% interest semi-annvally, or a. any le
n period. on their public debts; but su,
!" public debt shall, In oil cases, be,
r be made to be. equal to stock pr
Is ducing six per cent. per annum; al
II it shall not be lawful foi the Treasu
/. err 10 take any stock at n rate abo
:, its par value. nor its market valu
Provided. that whenever any Sta
&c who.e stock is pledged, in whole or
lie part. for the redemption Of its circul
10 lion, shall fail or neglect to pay int