The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1861-10-31
AN ACT
To authorize the Business of Banking.

BE 1t enacted Jy the legislature Of tie
State Of Kansas;
| SECTION l. 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 ard printed, in the best manner to
guard against counterfeitng. 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, lie needed to meet the
demands Of those organizations for the pur
pose of banking; and all necessary expenses
in prGcuring 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 q 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
FIVE FIVE and ten dollars. ten and twenty,
twenty and fifty, or fifty and one hundred
! dollars
SEC Such blank circulating notes shall
he eountersened 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 # such
circumlaiing notes shall be of the same simii,
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, to 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 tate 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
deposit with the Auditor OF State, such person
| OF association Of persons 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 a stock producing six per cent. per
annum and ii 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 tine of deposit 10y such person or asso-
citation of persons. If at any time the stocks
|
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 he
| 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 ard assigned as aforesaid or such bank
ing association or banker may make good such
/ Audi Nf Sk,%x
such amount of bank bills, previously issued
to him or them, as shall be equal to the def-
cheney of securities created 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 provis-
ions of this act.
SEC. s. 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
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, and shall remain in the vaults of said
bank as an additional security to in 1emnify |
the bill holders against aay less that may be
sustained, in case the other securities deposited
with the Audilor Of State shall be insufficient
to redeem said bills.
SEC 8. The bills and notes so to be coun-
tersigned aud regis tered, 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, so transferring secu-
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 err may be revoked upon such person or
association of persons failing to redeem the
king 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 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 cancelling an
equal amount OF such circulating notes deiiv-
cred TO him by such person or association OF
persons, in such manner that the circulating
notes shall always be secured In full, as IN
this act provided.
SEC. S. The notes and bills discounted or
purchased moneys loaned. and all other prop
erty, effects or dues, of every description. of
all banks or banking associations, organized
under the provisions of this act, shall be as
sessed ana taxed in the city, ward, village or
town where the same is located. for all State, I
county, town, school and corporation purposes, {,
IN the name of Isuchl bank or banking asso- 1
oiation, u the extent and under the rev.
enue laws, the same as the property of indi- F;
viduals {
SEC. = Any person or association of persons s
may establish Offices Of discount, depos;t and [