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

of this State tho following Grill on Banking,
FOR their approval or rejection, at the general
Election in November, 1861, as according to the
Constitution Of Kansas, "Article XIII, Section
e,"JNo Banking Law shall be in force until the
eame shall have been submitted to q vote OF the
eIectors of the State. at some general Election,
and approved by majority of all the votes cast
" '' Nv. ROBINSON.
Secretary of State.
.vsF ~ AN ACT,
To authorize the Business Of Banking. >,
Be enacted by the Legislature Of the STATE %
Kansas:
SECTION I. That it is hereby made the DUTY
Of the Auditor of State, on application OF any
person or association of persons wishing 70 OF |
oanixe under this act to cause to be engraved
and printed, in the best manner to guard against
counterfeiting, such quantity Oh circuia'ins
notes, in the simiitude of bank notes, IN biank'
of the different denominations hereinafter au-
thorized to be issued as may. from time to time,
be needed to meet the demands of those organ
ixstions for the purpose of banking; and all nee
essary expenses in procuring such circulating
notes, in blank, shall be charged to and paid, by
the banker or banking association, at whose So
lictation and for which the same are furnished;
SEC. g Such bank notes, in blank, so procured
as Aforesaid, shall be of the denominations u.s.
ually issued by banks, from one dollar 70 one
hundred dollars, bnt such notes shall not be OF
any intermediate denomination between one and
two. two and three, three and five, five and ten
dollars, ten and twenty, twenty and fifty. or hfty
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 oe
kept for that purpose, in his office and under MS
direction, by the Auditor himself or such person
or persons as the Auditor shall appoint, so that
each denomination of such circulating notes
shall be of tie same similitade and ali 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 assign or
transfer in trust, stocks issued or to be issued,
by the United States, or the stocks of the State
of Kansas, said stocks to be valued at rate to
be estimated and governed by the average rate
York, at the time when such stocks may be lett
on deposit with the Auditor of State, such per-
son or association of persons shall be entitled
TO 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 a stock producing six per cent per an
mum, andit shall not be lawful for the Auditor
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 association OF
persons. If ut any time the stocks assigned
and transferred to the Auditor of State for cir
culating notes, or any part thereof shall depre-
ciate in value in the New York market, the
Auditor of State shall reduce the rate at which
the same shall be continued to be held as secu-
rites, and require such banking association or
banker owning such stocks to make up the De,
nclency with such additional STOCKS as REQUIRED
by this act, TO De transferred ana assigned as
aforesaid, Or such banking association or banker
may make GOOD such denclency oy returning 70
the Auaitor oil State such amount OF oank Oils
previously issued to MIN or them' as snail De
equal to the deficiency OF securities created or
caused BY the depreciation OF said STOCKS neio
as security as azores Prootdea, That II, IN
the opinion OF the Auditor and governor, any
stocks offered shall be deemed insecure they
shall not be received as such seeurities under
the provisions OF TINS act.
SEC. 5. Before any bank shall receive from
the Auditor oil state any circulating notes, as
provided in section four OF this act, the Stock.
holders thereon shall give 10 the Auditor OF
State good and suincient ponds 70 De approved
by him, TO the amount OF one-iourth OF tne
notes that said bank shall receive, ana the
stockholders thereof shal. ME, with the hudi,
tor, certihcate, 10 De attesteo oy the oaths oil
the president and cashier OF such oaneing ass9
ciation, that ten per cent. Oh the capitai STOCK
OF such Dahk Is paid IN specie anu on oePosis'
and shall remain in the vaults OF SAID bank as
an additional security to indemnify the pill mol
ders against any loss that may DC sustaiheu, ID
case the other securities oeposited with the Au-
ditor OF state snail De lnsumcieht 70 reoeem
said bills.
SEC: 3. The bills and notes SO TO De counter
signed and registered, the payment Oh wnicn
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 were issued.
SEC. .. The Auditor may give to any person
or association OF persons, so transferring secu-
rites In pursuance OF the provisions OF tnis act
power OF attorney TO receive interest or oiVl.
bends thereon, which said interest or DIVIDEND
such person or association OF persons may re-
ceive and apply to their own use; out such pow
er may be revoked, upon such person or ascot
alton 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 discretion 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 canceling an equal amount of such
circulating notes delivered to him by such per
son or association of persons, in such manner
that the circulating notes shall always be secur
ed in full, as in this act provided.
SEC. 8 The notes and bills discounted or our
chased, moneys loaned and all other property
effects or dues, of every description of all bank.
or banking associations, organized under the
provisions of this act, shall be assessed and tax