Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-04-17

Legislature of Pennsylvania has passed law esab hing
free banking system that State This law empowers any
number persons less than five, after publication Tor SIX
months in Harrisburg paper and the local paper Of the mum
Der and names proposed Associations its location (which
cannot be changed without the consent Of the Auditor General
months netice0 amount Of capital stock number Of
shares held b each stakeholder, &c, to form partnership Tor
establishing OF deposits issue discount with maxi
mum capital Of SIGOCOO and minimum Of S5o,oOO with au
thory to transact general banking business FOR twenty years.
and power to increase the capital giving six mouths notice.
and receiving the approval the Auditor General whose duty
shall be to report annually Legislature the condition OF
all the banking institutions Of the State The notes issued are
not to be Of less than So and will be Issued by the
Auditor General all uniform numbered, registered and counter
signed by him. and stamped them ecurd by deposit OF pub
liz The notes are to be Issued in such denominations
are required on deposit with assignment to the Auditor Gene
al of the United States bonds at per cent below their
market value they above par These bonds are to
bear interest," rsvalued annually, and deprecated ad
doual security required they may also he exchanged Tor
others Of like amOuntand value
The banks managed by not les than ye nor more than
eleven directors whom ha be elected President The
yember and each citizen Of the State holding in
his right least cent OF the stock up 70 S@OOO
and onsf per cent thereafter, ceasng hold which,
1 f, The state he loses his seat; all vacancies to be
filled That he holds such stock unhypOthcd
and that he diligently and honestly manage the Affairs Of the
hank each director must OATH be filed and recorded In
the Recorder the county; and person shall be Ptes
5ent Cashier Director Of thar one bank at time one
share of stock paid up, the holder vote proxy,
b M hank officer may Shares fixed At $50
each, and cannot be transferred or eIaS l nc
holder as surety otherwise indebted TO the bank and the
stock Of persons failing meet nstanen when called may
Before commencing business twenty per cent Of the capital
stock must possession Of the bank IN gold OF s
yer coin or bullion it, after issuing notes, bank refuses
10 redeem them in coin bills shall be protested BY notary,
and if after being BY the Auditor General TO pay t
same with interest and COSTS the bank sha SUI Isgs Il sal
h declared usoyent committee Of three appointed TO inquire
its condition. and they hno mat II mas susnoeu se
payment arecever is to be appointed
The cashier Of bank shall publish monthly statement
s condition thereof paper OF his county, or IN tWoI
there one, setting forth the capital PAD 10 e IN
dbtedne the bank, amount Of circulation deposits coin IN
vault bills bonds evidences Of dtea and personal
property Dividends to be declared semi annuay N
sum not exceeding the profits officers being liable 70 the
of the stock diydeI when aoI5dena llss ss
ita On dividend day cashier is to render under oa an &
hbt OF assets Liabilities to he published shree times 40 s
local paper security Ok loan or dsOuse
any part fits capital Stock and shareholders ana non
sbarsboIs must give the security. Every bank shall
keep gold aud silver or its equivalent 70 the
twenty per cent circulation and when that portion IS eA
ceeded shall be circulated, no new discounts be
made or declared until the proportion be restored
shou any bank comply with order OF the AUDITOR
General TIE shall be enOined and It's properly IN
/ vested in that officer.
withdraw part OF capital stock, and in
Of loss exceeding undivided pof dividend shall be
made amount greater than the net pro
fits after eucng and bad and suspended debts Neither
circulate drafts notes, evidences oil dsot one
than the paper by act these shall be received az
psr in payment bills exchange notes OF hand at any BANK
under the The rate OF Interest TO De charged on
loans IS fixed at six per cent may taken in advance
any violate the provisions Of the act or IL
rector permit franchises forfeited and any trainer or
assignment, with after insolvency, IS VOID
The provides the punishment Of dishonest ocr5 oy
IMPRISONMENT the Peniteutary from one TO ten years au
ses banks now vote Of stockholders TO call IN
carry the banking business unde
makes the notes legal tender taxes, and empowers the Leg
saure repeal the without doing injustice 70 those
| smbarkug in banking under its proyisions