White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1861-10-17

Election In November, 1861 As according TO the
Constitution Of Kansas, "Article XIII, Section
g." No Banking Law shall be in force until the
sane shall have been submitted 70 q vote Of the
electors Of the State, at so.Ae geisral Election,
and approved BY q majority Of all the votes cast
a such Election.
.s>5--4-I ~ Secretary Of State.
---s -. AN ACT,
To authorize the Business Of Banking.
b enacted BY the Legislature 81 the State q
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 to or
ganize under this act, to cause to be engraved
and printed, in the best manner to guard against
counterfeiting, such quantity of circulating
notes, in the smilitude of bank notes, in blank,
of the different denominations hereinafter au-
shorized 10 be issued as may. from time to time,
be needed to meet the demands Of those organ
ixations 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 80
licitation and for which the same are furnished.
SEC. 2. Such bank notes, in blank, SO procured
AZ aforesaid, shall be of the denominations u.s.
ually issued by banks, from one dollar 70 one
hundred dollars, but 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 nifty. or NIFTY
and one hundred dollars.
SIC. 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. 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 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
o. 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 stock producing six per cent. per an
mum, 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 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 transferred to the Auditor of State for cir
cuating 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-
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
rs 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
che provisions Of this act.
SEC. S. 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 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 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 in the vaults Of said bank as
an 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
eaid 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.
SEC. Z. The Auditor may give to any person
or association of persons, 20 transferring secu
rites in pursuance of the provisions Of this act,
power Of attorney to receive interest or divi-
dends thereon. which said interest or dividend
such person or association of persons may re-
ceive 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, may transfer
the said securities, or any part thereof, upon
circulating notes delivered to him by such per-
son or association Of persons, in such manner
that tn, circulating notes shall always be secur-
ed in full, as in this act provided.
SEC. The notes and bills discounted y our
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 |
"a Tod Ca, Ctako
school and corporation purposes, in the name of
[suchl bank or banking association, to the same |
extent under the revenue laws, the same as the |
property of individuals.
SEC. 8. Any person or association of persons |
may establish Offices of discount. deposit and |
circulation, 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- |
piasd, That no such Office shall be established |
in any town containing less than two hundred
inhabitants.
SEC. III. Such person or association OF per-
eons, under their hands and seals shall make q
certificate which shall specify, first, the name
assumed to distinguish the bank to be establish
Cd 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
where the business of discount or deposit ofsuch
bank Is ~ bs carried on, designating the partic.
ular city, town, village and County; third, the
amount Of capital stock of Such bank, and the
number of shares into which the sane shall be
divided; fourth, the name and place of resi-
dence of the shareholder or shareholders in .uch
banss. and the number of shares held BY them
9TH, the period at which such
bank shall commence, which certificate shall be
and recorded in the Office of the
register Of deeds of the County where the Office