Page:A History of Banking in the United States.djvu/84

 in a charter, an explicit provision for what appear to be stock notes. It may be added here that the charter of this bank was extended March 26, 1823, until 1847, it being provided that a bonus of $25,000 should be paid, and that the old notes should be replaced by new. The Louisiana State Bank was chartered March 14, 1818, with a capital of $2 millions. One-fifth of the subscription was to be paid at once "in cash or notes payable to the directors," endorsed to the satisfaction of the managers, who might also accept mortgages. One-quarter of the capital was reserved for the State, which was to subscribe $100,000 at once, and appoint six directors out of eighteen. The bank was to last until 1870; to organize when $500,000 had been subscribed by private individuals; to establish five branches within six months; and to pay a bonus of $100,000. No provision was made in any of these charters for the case of suspension.

March 3, 1819, the Louisiana Bank was ordered to liquidate before March 12, 1822.

.—The Bank of St. Louis was chartered August 21, 1813, to last until 1838, with a capital of $150,000. The Territorial government might take one-tenth of its shares; it might have branches in the Missouri Territory, and could carry on a lombard business with fur, lead, or other commodities deposited in the control of the bank. Not more than one-quarter of the capital might be sold out of the Missouri and Illinois Territories.

The Bank of Missouri was incorporated, existing already as an association, January 31, 1817, with a capital of $250,000. It might have branches. The Territory reserved an option for ten years to subscribe 1,000 shares. It was to last until 1838, and must pay specie or forfeit five per cent. per month during refusal. Unauthorized issues were forbidden December 12, 1820, and it was forbidden to pass them. Notes of incorporated banks of other States, if not under $1, were not included.

The earliest State Constitution which contained any mention of banks was that of Indiana, of 1816, in which it was forbidden that any corporation should be created to issue "bills of credit or bills payable to order or bearer," but a State bank with branches might be established. The Mississippi constitution of 1817 provided that no bank should be incorporated in which one-fourth of the stock was not reserved for the State, with the power to appoint a proportionate number of the directors. The provision on this subject in the Constitution of Missouri, 1820, was: "The General Assembly may incorporate one banking company, and no more, to be in operation at the same time."