The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-10-24

the Constitution Of Kansas, "Ar,icIe XIII
Sec ion 6 no Banking Law shall he in force
until the sane shall have been submitted to a
vote Of the electors Of the State, a, some G en-.
eral Election, and approved by majority OF
| all the votes cast at such Election.
J. w. ROBINSON,
Secretary of State.
AN ACT
To authorize the Business Of Banking.
Be 1t enacted ty the Legislature Of the
State Of Kansas:
SECTION Z. 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 counterfeitiug. such quantity of
circulating notes, in the similitude of bank
notes in blank. of the different denominations
hereinafter authorized to be issued. as may,
from time to time. tie needed to meet the
demands Of those organizations for the pur
pose of banking; 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. .. Such bank notes. in blank, so pro.
cured as aforesaid, shall be of the denomina>
lions usually issued by banks. from one dollar
to one hundred dollars, but such notes shall
not be of any intermediate denoE: inatOn be-
tween one and two, two and three, three and
FIVE FIVE and ten dollars. ten and twenty,
twenty aud fifty, or fifty and one hundred
dollars.
SEC 3 Such blank circulating notes shall
J. cd n AM nf
and numbered and registered in proper books,
TO be kept for that purpose, in lis Office and
under his direction, by the Auditor himself,
or such person or persons as the Auditor shall
appoint. so that each denomination IF such
crcumlating notes shall be Of the same simiii.
| 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, 10 the Auditor of
this State any portion Of the public stocks
issued, or 10 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 nre 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
receive from the Auditor an amount of such
circulating notes Of different denominations,
registered and countersigned, equal 10 and no.:
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 stock producing fix 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 socks
assigned and transferred to the Auditor o.:
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, aud require such banking
association or banker owning such stocks, to
make up the deficiency with such additional
stocks. as required by this act, t" be trans
ferred ard assigned as aforesaid, or such bank
ing 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 def
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 Audltor and Governor, any stocks offered
shall be deemed insecure, they shall not be
received rs 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. 10 the amount of one fourth of the
notes that said bank shall receive, and the
stockholders thereof shall file, with the Audi
ter certificate, to be attestcd 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 va,.lts of said
bank rs an additional security TO in iemnify
the bill holders against any loss that may be
sustained. in case the other securities deposited
with the Auditor of State shall be insufficient
to redeem said bills.
SEC g. The bills and notes so to be coun.
tersicned and registered, the payment of which
shall be secured 10y the transfer of public
stocks. shall have engraved upon their face the
words. g Secured by pledge of public stocks. }"
and the place where the same were issued.
SEC =. The Auditor may give, to any person
or association IF persons, so transferring seem
rites in pursuance Of the provisions of this
act. power of attorney to receive interest or
dividends thereon, which said interest or divi-
dend such person or ass ,ciation 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
bal king notes so issued, and the Auditor of
State, upon application Of the owners Of such
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 or any
part thereof, upon receiving and cancelline an
equal amount of such circulating notes de!iv- |
cred 10 him by such person or association OF
persons. il such manner that The circulating !
notes shall always be secured in full, as in