The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-09-19


State Of Kansas:
SECTION :. That it is hereby made the dut,
OF the Auditor of State, Oh application Of an,
person, or association Of persons, wishing t.
organize under this act, to cause to be en-
graved and printed, in the best manner t,
guard against counterfeitng. such quantity o
circulating notes, in the similitude of banl
notes, in blank. of the different denomination.
hereinafter authorized to be issued. as may
from time to time, lie needed to meet tn,
demands OF those organizations for the pur
pose OF banking and all necessary expense.
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 dolIa,
to one hundred dollars, but such notes shall
not be Of any intermediate denomination be.
tween one and two, two and three, three and
five, five and ten dollars. ten and twenty,
twenty and fifty, or fifty and one hundred
dollars.
SEC 5. Such blank circulating notes shall
lie cOuntersigned by such Auditor of State,
and numbered and registered in proper books,
to be kept for that purpose, in lis office and
or such person or persons as the Auditor shall
appoint, so that each denomination If such
circumlating notes shall be of the same simili,
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 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.
ut the time when such stocks may be left on
deposit with the Auditor of State, such person
ol association of persons shall be entitled to
receive from the Auditor an amount of such
circulating notes Of different denominations,
registered and countersgned, equal 10 and no:
exceeding the amount of public stocks assigned
and transferred aforesaid; bu: 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 Aud
ltOr 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 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 as 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
aofIn boz tor IL,
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 8 act.
SEC. 5. Before any hank shall receive from
the Auditor of Stale 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
thereof shall file, with the Audi
tor, certificate, to be attested by the oaths of
the President and Cashier of such banking
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 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. 6. The bills and notes so to be coun-
tersigned 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. 4. 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 i
dividends thereon, which said interest or div- |
iend such person or association Of persons may |
receive and apply 10 their own use; but such |
power may be revoked upon such person or
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
;retion, change or transfer the same for other
securities of the kind specified before in this
let, or may transfer the said securities. or any
'art thereof, upon receiving and canceling an
equal amount of such circulating notes deliv-
red TO him by such person or association of
versions, in such manner that the circulating
notes shall always be secured in full as in
his act provided.
SEC. 8. The notes and bills discounted or
purchased. moneys loaned, and all other prop
rtv, effects or dues, of every description. of
III banks or banking associations, organized
lnder the provisions Of this act, shall be as
essed and taxed in the city, ward, village or
own where the same is located, for all State.
ounty, town, school and corporation purposes.
the name of [such] bank or banking asso-
iation, to the same extent and under the rev.
nue. laws, the same as the property of indi-