The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-11-07
AN ACT
To authorize the Business Of Banking.
BE 1t enacted Iy tie Legislature Of tn

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State Of Kassas:
| SEcTIox / That it 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 counterfeitng such quantity OF
,irculajipg notes, in the simIi!tude OF bank
notes in blank Of the difIerer denominations
hereinafter authorized to be issued. AZ may,
from time 20 time. lie needed to meet the
demands Of those organizations for the pur
pose Of barking: and al 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 2. 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 fifty and one hundred
dollars.
SEC. 3. Such blank circulating notes shall
be 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 of this act, shall duly
assign or transfer, in trust, to the Auditor of
this State, any portion OF the public stocks
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| or the stocks of the State of Kansas, said
stocks to be valued at 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 be left On
deposit with the Audit or 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; but such public
stocks shall, in all cases. be, or be made to be,
equal to stock producing Elk 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 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, required by this act, to be trans
ferred and assigned as aforesaid, or such bank
| ing association or banker may make good such
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such amount of bank bills, previously issued
to him or them, as shall be equal to the def-
cheney of securities created 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 as such securities under the provis-
ions of this act.
SEC. 5. 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
stockholders thereof shall file, with the Audi
tor, 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 10 specie and on
| deposit, and shall remain in the vaults of said
! bank as an additional security to nlemnify
the bill holders against any loss that may be
sustained, in case the other securities deposited
with the Auditor of State shall be insult ciert
to redeem said bills.
| SEC 6. The bills aud notes so to be coun.
tersigned and registered, the payment of which
shall be secured by the transfer of public
stocks. shall have engraved upon their face the
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and the place where the same were issued
| SEC. Z. The Auditor may give, to any person
or association Uf 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 livi-
dend such person or association Of persons may
receive and apply to heir 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 in trust, may, in his dis
cretion, 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 caneelling an
equal amount of such circulating notes deiiv-
cred TO 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. The notes and bills discounted OF
purchased. moneys loaned. and all other prop
ertv, effects or dues, of every description, of
all 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,
In the name Of lsuch] bank or banking asso-
cia'ien, Z, the same extent and under tie rev.
enue laws, the same as the property of indi-
viduals