The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-10-03
AN ACT
To authorize the Business Of Banking.
BE 1t enacted Iy the Legislature Of til.
State Of Kansas:

SECTION Z. That 1t is hereby made the duty
of the Auditor Of State, on application Of any
person, or association Of persons, wishing to
organize under this act, to cause to be en-
graved and printed, in the best manner to
guard against counterfeitug. such quantity Of
circulating notes, in the similitude of bank
notes, in blank, of the different denominations
hereinafter authorized to be issued. as may
from time to time, lie needed to meet the
demands of those organizations for the pur
pose Of banking; and all necessary 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.
SEC .. Such bank notes. in blank, so pro.
cured as aforesaid, shall be Of the denomina>
| tons usually issued by banks from one dollar
to one hundred dollars, but such notes shall
| not be Of any intermediate denomination be-
tween one and two, two and three, three and
FIVE. five and ten dollars. ten and twenty,
twenty and fifty, or nifty and one hundred
dollars.
SEC 3 Such blank circulating notes shall
he countersigned by such Auditor of State,
ard numbered and registered in proper books,
TO be kept for that purpose, ill lis office and
under bis direction, by the Auditor himself,
or such person or persons as the Auditor shall
appoint, so that each denomination Of such
circumlating notes shall be Of the same simii>
tude and all bear the uniform signature Of
such Auditor of State and Register.
SEC. i. Whenever any person or association
of persons, formed for the purpose of banking
under the provisions of this act, shall duly
| assign or transfer, in trust, 10 the Auditor of
this State, any portion Of the public stocks
issued, or to be issued, by the United States,
or the stocks Of the State of Kansas, sail
stocks to be valued at a rate to be estimated
| and governed by the average rate at which
such stocks are sold in the city Of New York,
| at the time when such stocks may be left On
| deposit with the Auditor Of State, such person
| OF association of persons shall be entitled to
| receive from the Auditor an amount Of such
| circulating notes Of different determinations
| registered and countersigned, 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 a stock producing six per cent. Per
| annum, and it shall not be lawful for the Aud
itor Of State to 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 asso-
citation Of persons. If at any time the stocks
assigned and transferred to the Auditor of
State for circulating notes, or any part thereof,
shall deprecate in value in the New York mar
ket, the Auditor of State shall reduce the rate.
at which the same shall be continued to be
held as securities, and require such banking
association or banker owning such stocks, to
make up the deficiency with such additional
stocks, as required by this act, to be trans
ferred ard assigned as aforesaid, or such bank
ing 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, as shall be equal to the def-
cheney Of securities created OF caused by the
depreciation Of said stocks held as security as
aforesa Provided, That if, in the opinion of
| the Auditor and Governor, any stocks offered
shall be deemed insecure, they shall not be
received such securities under the provis-
ions Of III act.
SEC. 5. Before any bank shall receive from
, the Auditor Of STATE any circulating notes, as
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 tie amount Of one-fourth Of the
notes that said bank shall receive, and the
stockholders thereof shall file, with the Audi
tor, a certificate, TO be attested by the oaths Of
the President and Cashier Of such banking
association, that ten per cent Of tie capital
| stock Of such bank is paid in specie and
deposit and shall remain in the vatlts Of said
bank as on additional security to in iemnify
the bill holders against any loss that may be
sustained, in case the other securities deposited
with the Auditor of State shall be insufficient
to redeem said bills.
SEC 6. The bills and notes so to be coun-
tersigned and registered, tie payment of which
shall 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 we're Issued.
SEC. .. The Auditor may give, to any person
or association Of persons so transferring secu-
rites in pursuance Of the provisions OF this
act. power of attorney to receive interest or
dividends thereon. which said interest or divi-
dend such person or association of persons may
receive and apply 10 their own use; but such
pow er may be revoked upon such person or
association of persons failing to redeem the
banking notes so issued, and the Auditor of
State, upon application of the owners Of such
transferred securities ia trust. may, in his dis
cret;on, change or transfer the same for other
securities of the Kind specified before in this
act, or may transfer the said securities. or any
part thereof, upon receiving and cancelling an
equal amount of such circulating notes de.iv-
cred 10 him by such perSon or association OF
persons, in such manner that the circulating
notes shall always be secured in full, as in
this act provided.
SEC. s. Tie notes and bills discounted or
purchased. moneys loaned, and all other prop
erty, effects or dues, Of every description, of
ali banks or banking associations, organized
under the provisions of this act, shall be as
sessed and taxed in the city, ward, village OF
| town where the same is located, for all State,
county, town. school and corporation purposes,
IN the name Of lsuchl bank or banking asso-
ciation, u the same extent and under the rev.
enue Jaws, the same as the property Of iudi-
| viduals
SEC .. Any person or association of persons
may establish Offices Of discount. deposit and
circulation, and become Incorporated upon the
terms and conditions, and subject to the liza
bilities prescribed in this act but the agcre.