The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-05-19

Such stock is sold to the highest bidder
other stockholders having the first right
of purchase
Management and Control.
The affairs of a Kansas Incorporated
bank are controlled by board of direct
ors of not less than five nor more than
thirteen. They are selected from the
stockholders at their annual meeting.
which is held between the 1st and 10th
days of January of each year A majority
of such directors must be residents CT
Kansas. The board names one of its
number to act as president and some
stockholder for cashier. The directors
are required to take what is practically
the national bank directors oath The
board of directors must require all off,
GERS having the care and handling of the
funds of the bank to give good and suffi-
Gent bond and this must be approved by
the board and placed in the hands of
designated custodian TO hold for therl
The board is required to hold not less
than four regular meetings each year.
at which there shall be thorough ex-
animation Of the books. records. bonds
and securities held by the bank and the
result of such examination must be re-
corded upon their record book and trans
mitted to the bank commissioners office.
investment of Funds.
Section eleven of the law. which relates
to investment of funds is particularly
important and reads as follows:
No bank shall employ its moneys. d.
recuy or indirectly. in trade or commerce
by buying and selling goods. chattels.
wares and merchandise and shall not in
vest any Of its funds in the stock Of any
other bank or corporation. nor make any
loans or discounts on the security Of the
shares Of its own capital stock. nor he
the purchaser or holder of any such shares
of IFS own capital stock. nor be the pur-
chaser or holder Of any such shares I'M
less such security or purchase shall be
necessary 10 prevent loss upon debt
previously contracted in good faith: and
stock SO purchased or acquired shall with
IN six months from the time of its p,.--
chase. he sold or disposed Of at public
or private sale: after the expiration Of
six months any such stock shall not be
considered as a part, of the assets of any
bank: Provided. that II may hold and sell
all kinds of property which may come in
10 its possession as collateral security for
loans or any ordinary collection of debts.
in the manner prescribed by law; Provid-
ed further. that any goods or chattels
coming into the possession Of any bank
as aforesaid shall be disposed Of as soon
as possible and shall not be considered as
n part Of the hanks assets after the ex-
piration Of six months from the date OF
acquiring same"
II Is siven in full for the reason that the
most important duty Of a banker is to
be able 70 invest his funds safely and
probably and this section gives the re-
strictiors that are. by law. thrown around
such investments
Legal Reserve.
Ranks located IN towns with a popula-
ton OF less than 5.ca0 are required TO keep
in cash and sight exchange. not less than
twenty per cent Of their deposits. Banks
located IN towns Of over 5.0no are required
70 keep twenty-five per cent Of their de-
posits on hand ANY bank made the de-
pository for any other hank or banks.
must have on hand At all times not less
than twenty-five per cent Of its deposits
When tho available funds Of any hank