The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-10-17
AN ACT
To authorize the Business of Banking.


person, or association Of persons, wishing tc
organize under this act, to cause to be en-
graved and printed, in the best manner tC
guard against counterfeiting. such quantity OF
circulating notes, in the similtude OF bans
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
AID for which the same are furnished
SEC. 2. Such bank notes in blank, so pro.
cured as aforesaid, shall be of the denomna>
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 ave and ten dollars ten and twenty,
twenty and fifty, or fifty aud one hundred
dollars.
SEC 3 Such blank circulating notes shall
lie countersigned by such Auditor of State,
and numbered and registered in proper books,
to be kept for that purpose, in His Office and
under his 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 simili,
tude and all bear the uniform signature of
such auditor of State and Register.
SEC. 4. Whenever any person or association
Of persons, formed for the purpose of banking
under the provisions CT this act, shall duly
assign or transfer, in trust, to 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. said
stocks to be valued at a rate 10 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 he left On
deposit with the uditor OF State, such person
OF association Of persons shall be entitled to
receive from the Auditor an amount Of such
circulating notes of different denominations
registered and countersigned, equal TO and not
exceeding the amount of public stocks assigned
and transferred as aforesaid bu; 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 AUDI
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 10y 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 depreciate 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 requi-ed by this act, to be trans,
ferred and assigned as aforesaid, or such bank
ing association or banker may make good such
deficiency by returning to TIE Auditor Of State
such amount of bank bills previously issued
to him or them, as shall be equal to the DE- f..
cheney Of securities created OF caused by the
depreciation of said stocks held as security as
azores aid Provided, That if in the opinion of
the Auditor and Governor, any stocks offered
shall be deemed insecure, they shall not be
received rs such securities under the proyis-
ions Of this set.
SrC s. Before any hank 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 the amount Of one fourth of the
notes that said bank shall receive, and the
thereof shall file, with the Audi
ter, certificate, TO be attested by the oaths of
the President and Cashier of such banking
association, 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 secErity to in lemnify
the bill holders against aEy less that may be
sustained, in case the other securities deposited
with the Auditor of State shall be insu tficiert
TO redeem said bills.
SEC. g. The bills and notes so to be coun-
tersigned and registered, the payment Of which
shall be secured 10y 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. 4. The Auditor may give, to any person
or associa ton of persons, transferring secu-
rites in pursuance of the provisions of this
act. power Of attorney to receive interest OF
dividends thereon, which said interest or diyi-
dend such person or association Of persons may
receive and apply to their own use; but such
pow or may be revoked upon such person or
association of ersons failing to redeem the
barking notes so issued, and the Auditor of
State. upon application of the owners of such
transferred securities in trust, may, in his dis
creiion, change or transfer the SAME for other
securities of the kind specified before in this
act, or may transfer the said securities any
part thereof, upon receiving and cancelling an
equal amount of such circulating notes deiiy-
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
his act provided.
SEC. s. The 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 or
town where the same is located, for all State,
county, town, school and corporation purposes,
n the name of lsuchl bank or banking asso-
,iatlon, I, The same extent and under the rev.
'nue laws, the same as the property of indi-
RITUALS
SEC. 9. Any person or association of persons
may establish Offices of discount, deposit and
circulation, and become incorporated upon the
terms and conditions, and subject 10 the LA.
oiliries prescribed in this act; but the agcre-
gate of the capital stock of such estahI; shman,