White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1861-10-03

os~ NOTICE!
To the Electors Of the State Of Kansas
Il becomes my duty to lay before the voter
Of this State the following "Bili on Banking,
for their approval or rejection, at the genera
Eisoios ip November, 1861, Is according to tn
Constitution Of Kansas, "Article XIII, Sectio
g." No Banking Law shall be in force until tn
same shall have been submitted to a vote of tn
electors of the Stat. at some general Election
and approved BY majority of all the votes cas-
at such Election.
J. w. ROBINSON,
.SEGHfE w 10 Secretary Of State.
..-Es5i t.l AN ACT, 5lf5
ITO authorize the Business of Banking.
Be casefed by the Legislature Of the Stale 2
Xansas:
SECTION ]. That it is hereby made the duty
OF the Auditor of State, on application OF AM
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 agains
coanterfeiting, such quantity Of circulating
notes, in the similitude of bank notes, in blank
Of the different denominations hereinafter au
thorized TO be issued as may, from time to time
be needed 10 meet the demands of those organ
.izations 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 90.
licitation and for which the same are furnished
SEC. 2. Such bank notes, in blank, 90 procured
as aforesaid, shall be of the denominations us.
ually Issued by banks, from one dollar to one
hundred dollars, but such notes shall not be oil
any intermediate denomination between 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. 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. A. 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
q 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 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 1t 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. Ii at any time the stocks assigned
and transferred to the Auditor of State for cir.
caiatlng notes, or any part thereof shall depre-
clate 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-
nciency 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 |
as security as aforesaid; Provided, That If, in
the opinion of the Auditor and Governor, apy
stocks offered shall be deemed insecure, they
shall not be received as such securities under
the provisions of this act
SEC. 5. 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 aud 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-
1ers against any loss that may be sustained in
case the other securities deposited with the Au.
1itor OF State shall be insufficient to redeem
,aid bills.
SEC. 8. The bills and notes SO to be counter
igned and registered, the payment OF which
hall be secured BY the transfer of public stocks,
hall have engraved upon their face the words: o
Secured by pledge of public stocks" and the '
''ace where the same were issued. 10
Sec. Z. The Auditor may give to any person .
y association of persons, 80 transferring secu-
ties IN pursuance of the provisions Of this act,
over OF attorney to receive interest or oivi.
lends thereon, which said interest or dividend
UGH person or association of persons may re- a
eive and apply to their own use; but such pow
= may be revoked, upon such person or associ- .
ton OF persons failing to redeem the banking G.
otes so Issued, and the Auditor of State, upon u
Ppiication Of the owners of such transferred e
ecurities in trust, may in his discretion change
transfer the same for other securities, of the u
nd specified before in this act, or may transfer o
ne saio securities, or any part thereof, upon =.
eceivlnS and canceling an equal amount of such r
REGULATING notes delivered to him by such per.
On or association of persons, in such manner o.
nat tn, circulating notes shall always be secur.
in full, as in this act provided. p
SEC. The notes and bills discounted or DUR. al
based, moneys loaned and all other property.
fleets or dues, of every description, of all banks d
T banking associations, organized under the re
rovislons OF this act, shall be assessed and tax
Ia the city, ward, village or town where the c.
anne Is located, for all State, County, town, it
chool and corporation purposes, in the name Of 3
such bank or banking association, to the same 10
roperty of individuals. IA
Sec. 3. Amy person or association of persons ct
Jay establish Offices of discount, deposit and 81
regulation, and become incorporated upon the al
rms and conditions, and subject to the abili. NJ
es prescribed in this act; but the aggregate Of OF
lie capital stock Of such establishment shall not al
. less than twenty five thousand dollars: Pro- m
dsd, That no such Office shall be established th
any town containing less than two hundred OF
habitants. til
Sec. 10. Such person or association of per. or
ms, under their hands and seals shall make a IN
'rsihcate which shall specify, first, the name
sumed to distinguish the bank to be establish. ba
pursuant to this act and to be used in all its
.alings, which name shall not be that of any lis
her bank in this State; second, the place ba
here the bnainess of discount N. 3a,.;t IN