The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1859-03-08

tEeic Of some agent, az = loss OF one {
two per cent, be presented at the counte
in Detroit, for redemption. And if Il
means Of redemption have been used !
speculating in stocks in Wall street. or els
where, those at Lansing must at once be sol
to make good the deficiency. 1t Is indee
easy to see the fatal effects Of such pa
pable violation Of charter
One more view: The statute charge
against each bank an annual specific tax @
one per cent. ON is capital stock 1h
claim Is to issue any amount, however large
OF circulating bills; ana the statute allow
the hank to charge interest upon di>conute,
paper at the rate Of ten per- cent. Was /
the intention Of the Legislature to ALLOW
the bank to have out circulation to an,
amount. however large, drawing ten pc.
cent. interest, without charging it for th,
privilege more than one per cent. upon it
capital stock Assurodly, such an ide;
could never have been entertained |
would be an anomaly indeed to see a banl
owning State stocks TO the amount Of nil
lions, with corresponding circulation, an(
drawing al interest at ten per cent uIo;
the proceeds Of that circulation. but paying
to the State an annual tax Of only one pc,
cant on a capital Of $4,000
And there is another equally ingeniou:
theory i'll vogue in respect to this Spoeifl
tGcatton, about which | viii here say &
word. 1t is, understand, claimed that the
tax Of one per cent. Is to be paid only OF
the amount Of the banks capital stock ae,
tually paid IN , and that where none ha.
been paid in except the three-tourths inyes,
ted in the State Stocks lodged with the
Treasurer, that only is the amount to be
taxed. Suppose, then, the amount Of Its
capital stock as set forth In its certificate to
be Si,000,000 The 29th section provides
that mo person or individual banker shall
commence the business of banking, under
this act, until lie shall have deposited with
the Treasurer the securities required by
law to the amount of at least twenty-five
thousand dollars" And the argument il,
that on depositing that amount with him,
and having 10 other capital on hand, actu-
ally paid in, a bank with 4 certificate cap
ital of Sl,000,000 could be required 10
pay onl " one per cent on its S25,o0o,
viz: $3.50
But it is evident that this idea OF appor-
tioning the tax according to the amount OF
capital paid in, is founded upon a mistaken
view of the statute The sd section pro-
vldes that every bank and banker, opening
under it, shall pay to the State Treasurer
ON or before the second Monday Of .janua-
ry in each year, lone per cent upon its
capitai stock" deducting their real estate,
&c.
can give this language no other mean
ing but that which it plainly expresses, aud
am Of opinion that the specific tag to be
paid must be one per cent. upon the amount
of capital stock named in the certificate Of
incorporation required by section >. And
| hold further that the act does not permit
any banking corporation to be created with
out actually paying il of at least the mini
mum amount of stock required by the first
section that is, $4,000 [ mean that Al
the moment the corporation takes It's birth
it shculd own and possess Of capital stock
In the current coin OF the | nitrd States, OF
hat which is equivalent to, and immediate
" convertible into such coin at the will OF
the corporation, the sum named in its Ger
tifcatc as It's capjtdI stock. In my opln
ion, not = circulating bill can be lawfully
issued before this is done, and if issued the
person issuing it makes himself ameanabi,
to a highly penal laws of the State.
am quite aware that the bank charter
heretofore granted by the State and by til,
former Territory of Michigan, the stock
holders were not required to pay in at one,
and on the organization, the whole amour
of their stock, and that it was called il
from time 10 time in ins,almcnts by the di
rectors And such has doubtless been th,
general practice Of other States. But thi
has been privilege specially granted il
terms 10y the charters Our general act ol
the other hand, contains no such clause AN,
plainly may say necessarily = contem
plates that the capital shall be actually ol
hand at the time the certificate Is fled viii
the Secretary of State. This certificate
required TO specify the GHl0utt Of tn
capital stock Of ss.ch person or aSsocio
tion dNa lie nunjer Of shares int
lchich the SaDlc IS dlrjded
, Aud section / provides that such assoc
alton "Icjtea 50 Organice4', Il. e, afte
filing the requisite certiiicate), "S'tGH har
porer TO cayyy on the business Of baui
ing, &c The capital stock Of the ban
must here mean something more Substar
tial than the mere words written in the ce1
t.ficate something more than the mere e.
pectation OF the bank officers that it viii,
future period, be paid in by the stochho
ders; something more than the pr0niiSe
the stockholders to pay it in, especially ;
the statute does no; authorize any subscriI
tion to the stock af;er making the certit
cate, nor furnishes any mode or meaI
, whatever for enforcing such . promise. !!
deed it seems to me too plain for argumel
that the statute contempla,es an actual ra
! ment in, Of the whole capital, a. an indi
: pensable element in the creation Of the CO
: poration, before i; can ever begin to tran
) ac; banking business, and that this Is
: much a condition precedent rs the fling al
+, recording Of the certificate
1 My opinion, then. is
I lst That no such bank can issue a circ
y lstion greater in amount than ,hree-fourt