White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1861-10-24

Constitution Of Kansas, article XIII, Section
D." No Banking Law shall be in force until the
same shall have been submitted to Q vote of the
electors Of the State, at some general Election
and approved BY majority of all the votes cas-,
at such Election.
NV. ROBINSON,
Secretary Of State.
AN ACT,
To authorize the Business of Banking.
Be- Il snsefsd By the Legislature Of the State d
xsnsas:
SECTION ]. That it is hereby made the duty
Of the Auditor of State, on application OF any
person or association Of persons wishing to or
gauize under this act, to cause to be engraved
and printed, in the best manner to guard against
eounterfeiting, such quantity of circulating
notes, in the similitude of bank notes, in blank
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.
isstions for the purpose of banking; and all nee
sssaxy expenses in procuring such circulating
notes, in blank, shall be charged to and paid, by
the banker or banking association, at whose So
licitation and for which the same are furnished
SIC. 2. Such bank notes, in blank, 80 procured
IS 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 oil
any intermediate denomination between one and
two, two and three, three and Eve, 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 circulating notes
shall be of the same similitade and all bear the
uniform signature of such Auditor of State and
Register.
SEC. A. 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 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
at which such stocks are sold in the city of New
York, at the time when such stocks may be left
o. deposit with the Auditor of State, such per-
son or association of persons shall be entitled
10 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 q stock producing six per cent. per an
mum, and it shall not be lawful for the Auditor
Of State 10 take such stock above its par value,
nor above its current market value in the city
Of New York, on the stock exchange, st the
time Of deposit by such person or association Of
persons. IT at any time the stocks assigned
and transferred to the Auditor of State for cir
suating notes, or any part thereof shall depre-
ciste 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-
6ciency with such additional stocks, as required
BY this act, to be transferred and assigned as
aforesaid, or such banking 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 deficiency of securities created or
caused BY the depreciation of said stocks held
a. security as Aforesaid; 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 provisions of this 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 DO 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 asso-
citation, that ten per cent. of the capital stock
Of such bank is paid in specie and on deposit,
and shall remain 10 the vaults of said bank as |
IN additional security to indemnify the bill hol- |
ders against any loss that may be sustained, in
case the other securities deposited with the Au- |
ditor of State shall be insufficient to redeem |
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 we're issued.
SEC. Z. 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 oivi-
dends thereon. which said interest or dividend
such person or association of persons may re-
eeive and apply to their own use; but 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 tho circulating notes shall always be secur-
ed in full, as in this act provided.
SEC. The notes and bills discounted or pur-
chased, moneys loaned and all other property,
effects or dues, of every description, Of all banks
or banking associations, organized under the
provisions of this act, shall be assessed and tax
ed 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
such bank or banking association, to the same
extent under the revenue laws, the same as the
property of individuals.
Sec. 0. Any person or association Of persons
may establish Offices of discount. deposit and
and become incorporated upon the
terms and conditions, and subject to the liabili
ties prescribed in this act; but the aggregate OF
the capital stock of such establishment shall not
be less than twenty five thousand dollars: Pro-
uidsd, That no such Office shall be established
in any town containing less than two hundred |:
inhabitants.
Sec. 10. Saoh person or association of per- :
sons, under their hands and seals shall make q
certificate which shall specify, first, the name
assumed to distinguish the bank to be establish.
ID pursuant TO this act, and to be used in all its
dealings, which name shall not be that of any
other bank in this State; second, the place b
where the business Of discount or deposit such
bank is to be carried on, designating the r.rtic.
ular city, town, village and County; third, tn. {
number of shares into which the same shall be t
ience Of the shareholder or shareholders in such
bank, and the number Of shares held by them b
respectively; ffth, the period at which such 9
bank shall commence, which certificate shall be b
and recorded in the Office of the u
,eCater of deeds of the County where the Office g