Page:A History of Banking in the United States.djvu/410

 remarkably clear and direct language, entirely free from legal verbiage. It leaves the impression of a schoolmaster who, having got tired of confusion, insubordination, and misbehavior, takes in hand the duty of restoring order, and distributes punishments, corrections, and new orders in the most peremptory manner. All charters were revived provided the banks would prepare at once to resume, and would obey the rules here laid down. The loans on capital were to be distinguished and separated from the loans on deposits; the former were to be on mortgage and long; the latter on ninety-day commercial paper. The loans on capital were designated "dead weight;" the loans on deposits were called "movement of banks." No bank was to increase the dead weight while its whole cash liabilities were not covered by one-third specie and two-thirds ninety-day paper. If any one applied for an extension, his account was to be closed and the other banks were to be informed. Any one whose paper lay protested ten days was to be discredited, and the banks informed, and he to have no bank credit until he should pay in full. The Governor was to appoint annually a Board of Currency of three persons, each to have a salary of $4,000 per annum, to supervise banks, and to get from each a weekly statement in detail. The one on the last Saturday of each month was to be published, in, order to inform the stockholders of the real situation of each bank. A full report was to be made annually to the Legislature. Each member of the Board of Currency was to file a bond for $5,000, on which he might be sued for failure to do his duty. All eisting debts were to be regarded as dead weight, and payment of fifteen per cent. per annum was to be required with good security at eight per cent., and no bank credit was to be given until full payment was made. Banks might issue post-notes payable September 30, 1842, for twice the specie they possessed, but with State bonds or mortgages for the uncovered half. All such post-notes were to be stamped and recorded by the Board of Currency. All banks in liquidation were freed from the obligation to pay any bonus or to carry out improvements, except the banks in which the State was a stockholder. Banks like the Gas Light Company, which had executed works, might hold them for a set term;—for the Gas Company, forty years. All the banks in liquidation were to report to the Board of Currency, and non-liquidating banks were to take the notes of liquidating banks; this circulation to be distributed amongst the former in proportion to their circulation, which, for this purpose, is assumed to be so much, a list of the banks and their circulation being inserted in the act. The solvent banks were to be secured in taking this currency by the assets of the liquidating banks, with interest at eight per cent. The whole operation was to be regulated by the Board of Currency, and all the currency of the liquidating banks was to be canceled as it was taken in. Every bank was to state, within twenty-five days, whether it accepted this law or not; and any revived bank which did not comply with it was to be put in liquidation by the Board of Currency. A fine of $500 was to be imposed on any bank official who violated the orders of the Board of Currency. After thirty days