White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1861-10-31
AN ACT,


AN ASi'
To authori.s the Business Of banIing;
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ksssss:
Sscrron I. That il is hereby made the duty
Of the Auditor of State, on application Of any
parson or association of persons wishing to or
eanixe under this act, to cause to be engraved
and printed, in the best manner TO guard against
sounterfeiting, such quantity Of circulating
notes, in the similitude of bank notes, in blank,
Of the different denominations hereinafter au-
thorised to be issued ,as may, from time to time,
b needed to meet the demands Of those organ
isstions for the purpose of banking; and all nee
sssary expenses in procuring such circulating
notes, in blank, shall be charged to and paid, by
the banker or banking association, at whose So
licitation and for which the same are furnished
SEC. 2. Such bank notes, in blank, 90 procured
- Aforesaid. shall be of the denominations u.s.
uAlly issued BY banks, from one dollar TO one
hundred dollars, but such notes shall not be Of
any intermediate denomination between one and
two, two and three, three and Eve, FIVE and ten
dollars, ten and twenty, twenty and fifty. or fifty
and one hundred dollars.
SEC. 8. Such blank circulating notes shall be
eountersigned by such Auditor of State, and
numbered and registered In proper books, to be
kept for that purpose, in his Office and under his
or persons as the Auditor shall appoint, 90 that
each denomination of such circulating notes
shall be of the same smilitade and all bear the
uniform signature of such Auditor of State and
Register
SEC. A. Whenever any person or association
of persons, formed for the purpose of banking
under the provisions of this act, shall assign or
transfer in trust, stocks issued or to be issued,
Ay the United States, or the stocks of the State
be estimated andsoyened by the average rate
at which such stocks are sold in the CITY Of New
York, at the time when such stocks NAV be left
On depos;t with the Auditor of State. snch per-
con or association of persons shaII be entitled
10 receive from the Auditor an amount of such
circulating notes of different denominations,
registered and courtersigned, equal to and not
exceeding the amount Of public stocks assigned
and transferred as aforesaid; but such public
stocks shall, in all cases, be or be made to be,
equal TO q stock producing six Der cent. per an.
mum, and Il shall not be lawful for the Auditor
Of State 70 take such stock above its par value,
nor above its current market value in the city
of New York, on the stock exchange. At the
time of deposit by such person or association of
persons If at sny time the stocks assigned
and transferred to the Auditor of State for cir
SulatinR notes, or sny part thereof shall depre-
cgste in value in the New York market. the
Auditor of State shall reduce the rate At which
Che same shall be continued 70 he held AZ aeon
rites, and require such banking association or
banker owning such stocks 10 make M the de.
Aoiency with such additional stocks, as REQUIRED
By this act, to be transferred and assigned as
Aforesaid, or such banking association or banker
may make good such deficiency by returning TO
The Auditor of State such amount of bank bills,
previously issued to him or them, "A shall be
equal 10 the deficiency of securities created or
caused BY the depreciation of said stocks held
~ security as aforesaid; Provided. That If. in
She opinion of the Auditor and Governor. any
stocks offered shall be deemed insecure, they
shall not be received as such securities under
the provisions of this act.
Sec. s. Before anv bank shall receive from
Che Auditor of State any circulating notes. AZ
provided in section four of this act. the stock
holders thereof shall give to the Auditor of
State good and sufficient bonds to be approved
BY him, to the amount of one fourth of the
notes that, said bank shall receive, and the
stockholders thereof shall. file, with the Audi.
Sor, q certificate, 70 be attested by the oaths of
the president and cashier of such banking asso-
cistion, that ten per cent. Of the capital stock
Of such bank is paid in specie and on deposit,
and shall remain In the vaults of said bank as
an additional security to indemnify the bill hol-
ders against any loss that may be sustained, in
ease the other securities deposited with the Au.
ditor of State shall DO insufficient to redeem
said bills.
SEC 6. The bills and notes % 10 be counter.
signed and registered, the payment OF which
sball be secured by the transfer of public stocks.
shall have engraved upon their face the words:
'Secured BY pledge Of public stocks" and the
place where the same were issued
SEC. 7. The Auditor may give to any person
or association of persons, 90 transferring secu-
rites in pursuance of the provisions of this act
pover of attorney N receive interest mr. oivi