The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1861-10-05
AN ACT

son or association OF persons wishing TO organize
under this act, to cause to be engraved and print
ed, in the best manner to guard against counter
feiting, such quantity of circulating notes. in the
similitude of bank notes. in blank. of the differ
| ent denominations hereinafter auth orized to be
| issued, as may from time to time be needed to
meet the demands of those organizations for the
LptfposA of banking and al Necessary expenses
| in procuring such circulating notes, in blank,
shall be charged to, and paid by, the banker or
ban king association ct whose solicitation and for
| which the same furnished.
SEC. 2. Such bank notes, in blan K, so procured
as aforesaid shall be of the determinations usually
| issued BY banks, from dollar to one hundred
dollars, but such notes shall not be of any inter
mediate denomination between one and two, two
and three, three and five, five 9nd ten dollars ten
and twenty, twenty and fifty or fifty and one
hundred dollars.
| SEC B. Such blank circulating notes shall be
eountersigned by such Auditor of State, and num-
bered and registered in proper books, to be kept
| for that purpose in his Office and under his di-
rection, by the Auditor himself or such person or
persons as the Auditor shall appoint. that each
! denomination of such circulating notes shall be
of the same similitude and all bear the uniform
| signature of such Auditor of State and r. gister
| SEC. 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 Issued or to be issued
by the United States, 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
| on denosit with the Auditor of State such person
or association of persons shall be entitled to re-
| ceiye frum the Auditor an amount OF such .rcu-
latin notes of different denominations, registered
1 and countersigned, sequal to and not exceeding
/ the amount Of public stocks assigned and trans
ferrad "A aforesaid but such public stocks shall
in all cases be- or be made to be, equal to stock
| producing six per cent. per annum, and it 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 DIRK, on the
stock exchange, at the time OF deposit by such
rerson or association of persons. II ut any time
the stocks assigned and transferred to the Auli-
| tor of State for circulating notes, any part
thereof, shall depreciate IN value in the New
York market. the Auditor of Sta tie shall reduce
the rate at which the same shall be contn ued to
be held as g. curities. and require such banking
association 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, or such banking asso-
citation or banker may make good such deficiency
hy returning to the Auditor of State such amount
OF bank bills, previously issued to him or them,
as shalt be equal to the deficiency of securities
created or caused by the depreciation of said
stocks held as security rs aforesaid Pr0cided,
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
under the provisions of this act.
SEC s. Before any bank shall receive from the
Auditor of State any circulating notes, as provid
ed in Section of this act, the stockho lders 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
file with the Auditor certificate, to be attested
by the oaths of the PRECEDENT and cashier of such
banking association, that ten per cent of the cap
tal stock of such bank is pad in specie and on
deposit, and shall remain in the vaults of said
bank as an additional security to indemnify the
bilI-holders against any loss, that may be sus-
tanned in case the other securities deposited with
the Auditor of State shall be insufficient to re-
deem said bills.
SEC. 6. The bills and notes to be counter
signed and registered, the payment of which
shall be secured by the transf,r Of public stocks
shall have engraved upon their face the words:
Secured by pledge OF public stocks and the
place where the issued.
SEC. Z. The Auditor may give to any person or
association of persons, so transferring securities
in pursuance of the provisions of this act, power
Of attorney 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 pei 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 hi
discretion 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 canoeing equal
amou of such circulating notes delivered to him
by such person or association of persons, il such
manner that the circua ing notes shall always be
secured in full, as in this act provided
SIC. s. 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 pro-
visions of this act shall be assess 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 [such bank
or banking association, to the same extent and
Il
OF individuals.
SEC 9. Any person or association of persons
may establish offices of discount, deposit and cir
culation, and become Incorporated upon the terms
and conditions and subject to the liabilities. pre-
scribed in this act; but the aggregate of the cap
ital st eek of such establishment shall not be less
than twenty-five thousand dollars: Prorided, That
no such office shall be established in any town
containing less than 300 inhabitants.
SEC 10. Such person assnciationof persons,
under their hands ana seals, shall make crrt f.
cate which shall specify, first, the name assum ed
to distinguish the bank TO be established Pursu
ant to this act, and to be used in all its dealings
which name shall not be that of any other bank
in this Stete; second, the place where the bust
ness Of discount or deposit of such bank to he
carried on, desigI ating the particular city, town.
village and county; third, the amount of capital
stock of such bank, and the number of shares into
which the same shall be divid-d fourth, the
name and place of resd nee of the shareholder or
shareholders in such bank, and the number of
at which such bank shall comInence-which GER
tlficate shall be acknowledged, and recorded in
the office of the register of deeds of the county
where the Office of such bank may be establi she'd
and copy thereof shall be filed in the office of
the Auditor of State; and upon the recording of
such certificate, the. person or persons aforesaid
shall becqne body polite and corporate. by the
name assumed aforesaid, and by such name
shall have power to contract and be contracted
with, sue and be sued and shall have all other
powers, privileges and immunities incident to
corporations, and applicable to the end of such
esta bishInents, subject to the provisions and re-
strictions of this act.
SEC. IL. A copy of the certificate required by
the next preceding section, duly certified by the
register of deeds of tie county, by the Auditor
of State, may be used evidence in all courts for
or against such bank, any person persons for
or against whom any such evidence may be nee
essary. whether on civil or criminal trial.
SEc. IL. Such person association of persons
shall have power to carry on the business Of
banking. by dscounting bills, notes, and other
evidences of debt, by receiving deposits. by buy