The advocate and Topeka tribune., 1893-03-08
Cooperation Of Labor The Exchange Bill.

For the purpose of facilitating che eX-
change Of products and thereby increasing
prosperity, promoting and enlivening bust.
ness throughout the state in every depart
ment of industry, and to avoid the enormous
drainage of interest money continually paid
by the producers which is a heavy burden
upon the wealth Of the state, and to protect
people against the avariCS of outside capital,
the following sections shall be used as a
foundation to place upon the statutes law
known as the state exchange bill;
SECTION l. Every county treasury and the
state treasury of the state Of Kansas, upon
the passage of this act, shall be created Q
clearing house to do regular line of clear
ing house business for the exchange of local
credit paper, and also TO transact such nec-
esssry clearing house business between
counties, and also between the state treas
ury and the several counties, as will be
necessary to form complete circuit of ex-
change within the commonwealth, besides
the business transacted by the various
treasures in the past.
SEC. 3 That any person being resident
Of county and will give FIRST class security
in real estate, personal property, or such
as is sproperly indOrssd and secured by one
or more persons who are ample security for
the same, shall be allowed TO place on credit
in the clearing house these securities as a
deposit on bond, and for collateral to So
cure credit upon which can be checked al
will, until the amount Of such credit shall
be exhausted or the time for balancing ac-
counts may have arrived, as provided for in
section g.
SEQ. 3. Credit shall not be given for more
than one-half Of the assessed value Of the
securities gwen, nor shall there be placed
to the credit of any man or woman a sum
representing less than $25 nor more than
$1,000, and in no case shall the balancing Of
accounts be deferred longer than three
months from the time of placing the credit,
and at the end of which time balance may
be declared and the account continued. or,
il necessary, new security given and a
new transaction begun.
SEQ. A. These credit securities shall be as
binding upon individual persons, personal
property, or real estate, as are personal
securities, ohattel mortgages or real estate
mortgages in any other case, and are as an
encumbrsnoe upon such person or property
until the account with the clearing house
is balanced and the credit removed. In case
the depositOr Of credit should fail to COM
ply with the requirements, the necessary
cost Of prosecution and recovering Of loss,
If there be any, shall be charged TO the
credit depositor who has been in default,
and the same shall be dealt with in accord
ance TO the laws of Kansas in similar cases,
where fraud may be perpetrated.
SEC. 5. The combined credits Of the per-
sons who have credits deposited in the
clearing house at the time shall form the
basis upon which the clearing house can
issue credit checks; but at no time shall the
clearing house issue more checks than to
amount to One-third of the average credits
deposited. The clearing house checks,
from county or state, shall be honored in
any county in the state. Individual checks
must be secured by individual securities,
and when presented by the proper parties
as designated upon their face, they shall be
placed against the maker and in favor Of
the presenter. In case the presenter has
no account at the clearing house and does
not wish TO open an account, then the clear
ing house shall pass over its check for the
amount which shall represent full face
value in any part Of the state, upon proper
Endorsement Of the person to whom IL was