The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-09-26
AN ACT
To authorize the Business of Banking

AN ACT
To authorize the Business of Banking
Be Il enacted Ly tie Legislature Of tie
State of Kansas:
SECTION !. 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-
gravcd and printed, in the best manner to
guard against counterfeting. such quantity OF
circulating notes, in the similitude Of bank
notes, i'll blank, Of the differeLt denominations
hereinafter authorized to be issued as may
from time to time, lie needed to meet the
demands Of those organizations for the pur
pose Of banking; aud all necessary expenses
10 procuring such circulating notes. in blank,
sha!l be charged to, and paid by, the banker
or banking association, at whose solicitation
and for which the same are furnished
SEC. 2. Such bank notes. in blank, so pro.
cured as aforesaid, shall be of the denomina>
tons usually issued by banks, from one dollar
to one hundred dollars, but such notes shall
not be Of any intermediate denomination be-
tween one and two, two and three, three and
I'VE, five and ten dollars ten and twenty,
twenty and fifty, or fifty and one hundred
dollars.
SEC. g. Such blank circulating notes shall
I've conDtersigned by such Auditor of State,
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, 80 that each denomination Ct such
circumlating notes shall be of the same simili.
tude and all bear the uLiferm 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 TO be issued, by the United States,
or the stocks Of the State of Kansas, said
stocks 10 be valued at a rate TO be estimated
and governed by the average rate at which
euch stocks are sold in the city of New York,
ut the time when such stocks may be left On
deposit with the Auditor of State, such person
OF association Of pereons shall be entitled to
receive from the Auditor an amount of such
circulating notes of different denominations,
registered and countersigned, equal TO 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 Elk per cent. per
annum, md 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 asso-
citation Of persons. If at any time the stocks
assigned and transferred to the Auditor of
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 - 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 trans.
ferred and 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
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 proyis.
ions Of tn 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, 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
association, that ten per cent Of the capital
stock Of such bank is paid in specie and on
deposit, aud shall remain in the vaults of said
bank rs an additional security to indemnify
the bill holders against aRy loss that NAV be
sustained, in case the other securities deposited
with the Auditor of State shall be insufficient
to redeem said bills.
Sec. u. The bills and notes so TO be coun-
tersigned aud registered, the payment of which
shall he 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 9. The Auditor may give, to any person
or association Of persons, so transferring seen.
rites in pursuance of the provisions Of this
act, power OF attorney to receive interest or
dividends thereon, which said interest or diyi
dend 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 so issued, and the Auditor of
state, upon application Of the owners Of such
transferred securities in trust, may, in his dis
cretion, change or transfer the came for other
securities OF the kind specified before in this
act, or may transfer the said securities. or any
part thereof, upon receiving and cancellne an
equal amount Of such circulating note, de.iy-
cred 10 him by snch person or association of
persons. in such manner that the circulating
notes shall always be secured in full, as in
this act provided.
SEC. 9. The notes and bills discounted or
purchased. moneys loaned, and all other prop
ertv. effects or dues, of every description. Of
all banks or banking associations, organized
under the provisions Of this act shall be as
seseed and taxed in the city. gard, village or
town There the came is located, for all State.
county, town, school and corporation purposes.
in the name Of lsuch] bank or banking asso.
ciatiSn, 70 the same extent and under the rev.