The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1861-10-19
AN ACT

"A n
90 To authorize the business of Banking.
Be Ienaeted by the Legislature Of the State of
SECTION /. That it is hereby made the duty of
ss, Auditor Of State, on application of any per-
an association Of persons wishing to organize
upar this act, to cause to be engraved and print
Al in the best manner to guard against counter
6idng, such quantity of circulating notes. in the
sfmilitlde Of bank notes, in blank. of the differ
ent denominations hereinafter authorized to be
ssuea, rs may from time TO time be needed to
meet the demands of those organizations for the
purpose of banking; and all necessary expenses
10 procuring such circulating notes, in blank,
shsii Der charged TO. sod paid by. the banker or
taking association at whose solicitation and for
which the same are furnished
nj SEc 2. Such bank notes, in blank, so procured
as aforesaid shall be of the denominations usually
issued by banks, from one dollar to one hundred
dollars but such notes shall not be of any inter
mediate denomination between one and two, two
and three three aud five, five md ten dollars, ten
and twenty twenty and fifty or fifty and one
hcndred dollars.
SIC s. Such blank eirculatin notes shall be
eountersgned by such Auditor of State, and num-
bered and registered in proper books, to be kept
for that parp6se. in his Office and under his di-
reeton, by the Auditor himself or such person or
persons the Auditor shall appoint, so that each
denomination Of such circulating notes shall be
Of the same smihtude and all bear the uniform
Signature of such Auditor of State and Register
SIC A. Whenever; any person or association of
persons, formed for the purpose Of banking under
he provisions of 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 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
or association of persons shall be entitled to
,ceye from the Auditor amount OF such circu-
latin notes of different denominations, registered
and countersigned, equal to and not exceeding
the amount of public stocks assigned and trans
ferred as aforesaid but such public stocks shall
in all cases be, or be made to be- equal to q stock
producing six per cent. per annum, and it shall
not he LAW full for the Auditor Of State to take such
stock above its par value, nor above It's 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 any time
the stocks assigned and tra nsferred to the Audi
tor of State for circulating notes, or any part
thereof, shall appreciate 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 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 transferred
and assigned, as aforesaid, such banking asso-
citation 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
rs shall be equal to the deficiency of securities
stocks held as security aforesaid PTouided
That if. in the opinion of the Auditor and Gov
ernOr. any stocks offered shall be deemed inse-
cure they shall not be received such securities
10 nnder the provisions of this act.
SEc 5. Before any bank shall receive from the
Auditor Of State any circulating notes, provid-
ed in Section of this act. the stockholders there
OF 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
hle with the Auditor certificate, to be attested
by the oaths of the president add cashier of such
banking association, that ten per cent. of the cap
ital stock Of such bank is paid in specie and on
deposit. and shall remain in the vaults of said
bank additional security to indemnify the
bill-hoders against any loss that may be sus-
tanned, in ease the other securities deposited with
the Auditor of State shall be insufficient to re-
deem said bills
SEC. 6. The bills and notes SO to be counter
signed and registered, the 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 were issued. a
SEC. 7. The Auditor may give to any person or
association of persons, transferring securities
in pursuance of the provisions of this act, power
ofattorney to. receive interest dividends there
on, which said interest or dividend such person or
association of persons may receive and apply to
their own use; but such power may be revoked
upon such person or association of persons failing
to redeem the banking notes issued, and the
Auditor Of State, upon application of the owners
of such transferred securities in trust may in hi
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
'thereofS upon receiving and canceing an equal
amount of such circulating notes delivered 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. 8. The notes and bills discounted or pur-
chased. moneys loaned, and all other property
effneta Hnas of intin Of al kan
or banking associations, organized under the pro-
visions Of this act, shall be assesse 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 lsuchl bank
or banking association, to the same extent and
under the revenue laws, the same as the property
OF ndvidunls. -
SEC. 8. Any person or association of persons
may establish offices Of discount, deposit and cir
euiation, and become incorporated upon the terms
and conditions, and subject to the liabilities pre-
;snoed in this act; but the aggregate of the cap
.tAlHoek Of such establishment shall not be less
.uAn twenty-five thousand dollars: PT0nided, That
no such office shall be established in any town
eonaining less than 900 inhabitants.
SEo ~. Such person or assOciationof persons,
.uuer their hands and seals, shall make Q cert s.
vote which shall specify, first the name assum ed
20 distinguish the bank to be established pursu
ant to this act, and to be used in all its dealings
winch name shall not be that of any other bank
~ uis Stste; second, the place where the bust
oiscouuI or deposit OF such bank to be
esrried on. designating the particular CITY, town
,liSee and county; third, the amount OF capital
s1oeS OF such bank, and the number of shares into
which the same shall be divided; fourth. the
name and place of residence of the shareholder or
"narehoiders IN such bank, and the number of
aaFes held by them respectively: fifth, the period
nj which such bank shall co;nrnenea-vhieh Ger
'lhcate shall be acknowledged. and recorded in
'he Office Of the register OF deeds of The county
where the Office of such bank NAV be establi sled
nd copy thereof shall be fled in the Office of
me Auditor Of State; and upon the recording of
tuch certificate, the person persons aforesaid
fhail become body polite and corporate by the
heme assumed as aforesaid, and by such maine
rnelI have power TO contract and be contracted
with. sue and be sued. and shall have all other
overs, privileges and immunities incident to
corporations. and applicable 70 the end Of such
Establishments, subject TO tho provisions and re-
ttrictions of this net.
SEC. IL. A copy Of the certificate required by
the next preceding section, duly certified by the
register Of deeds Of tie county or by the Auditor
If State may be used evidences in all courts for
against such bank, az any person or persons fer