The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-08-05
VOL. X-NO. l8.
MINNESOTA BANKING LAW.

AN ACT to Authorize and Regulate the
Business of Banking.
BE il enacted by the Legislature ofthe State
Of Minnesota.
SECTION /. That il is hereby made the
duty of the Auditor of State, on applica-
ton of any person or association Of persons
wishing to organize under this act, to cause
to be engraved and printed in the best man
ner, TO guard against counterieiting, such
quantity Of circulating notes, in the simili.
tude Of bank notes in blank Of the different
denominations hereinafter authorized TO be
issued, as may from time to time be needed
to meet the demands Of those organizations
for the purpose of banking; and all neces-
sary expenses in procuring such circulating
notes in blank shall be charged to and paid
by the banker or banking association, at
whose solicitation and for which the same
are furnished.
SIC. 2. Nothing herein contained shall
be so constructed as to prevent any banker or
banking association from procuring their own
plates, dies and other materials for engraving
and printing blank notes, furnishing them
to the Auditor of State and having them
ever after in his custody and under his con-
troll, TO be used and disposed of as though
such auditor Of State had himself procured
them under the preceding section.
SEC. 3. Such bank notes in blank so
procured or placed in the hands of the Au.
ditor Of State as aforesaid, shall be Of the
dimensions usually issued by banks, from
one dollar TO five hundred dollars but such
notes shall not be OF any intermediate num-
Der between five and ten dollars, ten and
twenty, twenty and fifty, or fifty and one
hundred dollars.
SEC. 4. Such blank circulating notes
shall be coantersigned by such Auditor of
State and numbered, and registered in pro.
per books to be kept for that purpose in his
Office and under his direction, by the audi
tor himself, or such person or persons as the
auditor shall appoint, so that each denomi.
nation Of such circulating notes shall be Of
the same similitude, and all bear the uniform
signature Of such Auditor Of State and
Register.
SEC. 5. Whenever any person or assO-
citation of persons formed for the purpose of
banking under the provisions Of this act,
shall duly assign or transfer in trust to the
auditor oil this State, any portion Of the
public stocks issued or to be issued by the
I'm ted States, or the stocks OF any State OF
the United States, on which full interest is
semi.annually paid, said stocks to be valued
at rate to be estimated and governed by
the average rate at which such stocks have
been sold in the city Of New York, within
the next six months preceding the time when
such stocks may be left on deposit with the
Auditor of State, such person or association
of peUons shall BE- entitled TO receive from
the auditor, an amount Of such circulating
notes OF different denominations, reg stered
and cOuntersigned, equel to and not exceed
ing the amount OF public stocks assigned
and transferred, as aforesaid, but such public
stock shall 10 all cases be or be made to be
equal to stock producing six per cent. per
Auditor Of State to take such stock
above its par value, nor above its cur
rent market value in the city of New York
at the time Of deposit, by such person or as
ISOLATION OF pcrsobs, il at any time the stocks
assigned and transferred to the Auditor Of
State for circulating notes or any part there
OF, shall depreciate ten per cent. or more IN
value n the New FORK market, the Audi
tor Of State shall reduce the rate at which
the same shall be continued TO be held a. Sc
curties, and require such banking assOcia-
ton or banker owning such stocks. TO make
up the deficiency with such additional stocks
as required by this act, to be transferred and
assigned as Aforesaid. or such banking asso.
citation or banker may make good such def.
cheney by returning 10 the auditor Of State.
such amount OF bank bills previously issued
TO him or them, as shall be equal to the def
cheney OF security created or caused by the
depreciation OF tue said stocks held as secu.
rty as AFORESAID Provided, That II IN the
opinion OF the auditor and governor, any
stocks Offered shall he deemed insecure, they
shall not BE- received as such securities un-
der the provisions OF this act.
SIC. &. Before any bank shall receive
from the auditor OF State any circulating
notes as provided in sectlon five Of this act.
the stockholders thereof shall either give 10
the auditor Of State good and sufficient
bonds, 10 be approved by him 10 the amount
OF oDe-fourth Of the notes that said babx
shall receive, " deposit 10 hen Of such bonds,
ten Per cent more stock than amount Of the
circulating nO,es. TO be delivered b. the an-
ditto TO such bank. a. an additional security
70 indemnify the bill holders against any loss
that may b. sustained 10 case the other se-
eurities deposited with the auditor Of STATE,
shall he insufficient TO redeem said biIls.
SEC. :. The bills and notes 20 TO b.
countersgnei and registered the payment Of
which shall be secured by The uausier Of
public stocks. shall b. engraved upon their
face, the word. Secured By paige Of
public stocks"
SIC. 5. The auditor may give TO AM
person or association d persors ~ transfer
ring securities in Pursuance Of the proyvs-
ions Of this act, power Of attorney to feceive