A. They have all the powers of ordinary banking institutions. [Sec. 9.]
Q. Is the stock of such banks taxable?

A. Yes. It is declared "personal property, subject to taxation." The amount of taxation is determined by a commissioner provided in the law, and is levied on the company, not the individuals. A transfer of stock to new hands carries with it a transfer of all the "rights and liabilities" of original shareholders. The rights of creditors cannot be prejudiced by any alteration in the articles of association, nor can the association be dissolved by death or insanity, when there is more than one shareholder. [Sec. 10.]

Q In what name must the corporations do business?

A. In the name of the corporation. [Sec. 11.]

Q. Who may maintain actions against such corporations!

A. Any person having demands against them; and all judgments against them shall be enforced against their property, except such as may be obtained against shareholders, as provided in section 38. [Sec. 12.]

Q. How are bankers to receive the benefit of the security stocks deposited with the

Auditor?

A. The Auditor may give them power of attorney to receive interest on dividends for their own use; but this power is to be revoked on the bank failing to redeem its notes, or whenever, in the opinion of the Auditor, the bonds become insufficient security. The Auditor may also deliver to bankers an amount of their deposited stocks equal to any notes returned to him for cancelation-notes so returned to be burned. [Sec. 13.]

Q. What is to be done when banks refuse to pay their notes on demand?

A. The Auditor is to sell the pledged bonds at auction in New York, and shall pay the said notes from the proceeds thereof. [Sec. 14.]

Q. Is there any precedence given in the kind of debts to be paid from these stocks by the Auditor?

A. Yes. The notes are to be first paid; afterwards "all other liabilities." [Sec. 15.] Q. Who keeps the dies and plates from which the bank notes are to be printed; and who pays for the printing?

A. The Auditor keeps the dies and plates, and pays for the printing, charging the same again to the bank. [Sec. 16.]

Q. Is the Auditor prohibited from issuing notes to a greater amount than there are securities deposited?

A. Yes. He is for this to be judged "guilty of a misdemeanor; and shall be punished by a fine of not less than five thousand dollars, and imprisoned not less than five years in the penitentiary." [Sec. 17.]

Q. Are the banks to be bound for damages, for refusing to pay a note on demand?
A. Yes. Twelve per cent. [Sec. 18.]

Q. How may it be known who are shareholders in any bank?

A. The bank is bound to file lists with the county Clerk, for inspection. [Sec. 18.]
Q. Where are bank notes to be made payable?

A. At the bank, and no place else. [Sec. 19.]

Q. When are bank notes payable; and what is to be the banking capital ?

A. They are to be payable on demand, and the capital is to be specie, "a sufficient amount" of which is "to be kept always on hand" to redeem all notes which may be presented. The bonds deposited with the Auditor are not the bank's capital -they are only pledges of security. [Sec. 20.]

Q. What is to become of torn and mutilated notes ?

A. The Auditor is to give new ones in exchange for them-descriptions of the torn
ones are to be put on file, and they are then to be burned. [Sec. 21.]
Q. Can the bank prefer any of its creditors to others, by
them ?

A. No. Such conveyances are expressly declared void.
Q. Can the banks hold real estate

conveying its property to

[Sec. 20.]

A. Yes. Such as is necessary, as banking houses, &c.; such as is mortgaged to them by debtors in good faith; such as shall be conveyed in satisfaction of debts previously contracted in the course of its dealings; and such as they shall purchase at sales under judgments in their behalf, or in behalf of others, for the purpose of saving a debt due them. [Sec. 23.]

They cannot purchase, hold or convey real estate for any other purpose whatever,

VOL. XXVI.-NO. I.

7

and conveyances shall be to the corporation, free from any claim for or against shareholders, or others claiming under them. [Sec. 24.]

Q. How is the condition of a bank to be investigated?

A. The Judge of the Circuit Court where the bank is located, may appoint competent persons to investigate it, on the application of one or more shareholders whose shares amount to three thousand dollars; said investigation to be published by the Judge's orders. [Sec. 25.]

Q. What is to be done when a bank refuses to pay its notes on demand?

A. The holder of the notes may have them protested before any Notary Public; and the Auditor, on receiving such protest, shall forthwith give notice in writing to the bank to pay the same; and if the bank shall omit to do so, the Auditor shall immediately, (unless the bank shall by affidavit convince him that it has a good defense against the person presenting the same,) give notice in a newspaper at the place where the bank is kept, (if there be a paper there,) and in a paper at the seat of government, that the notes of that bank will be redeemed out of the trust funds belonging to the bank, by the payment pro rata of all such circulating notes, whether protested or not; and to adopt such other measures as in his opinion will secure the note-holders from loss. The obtaining of such a protest, and the filing a copy thereof with the bank, shall put all end to its banking powers, and they shall be prohibited from exercising further banking privileges. The legal existence of the bank will only be continued for the necessary purpose of settling its accounts. [Sec. 26.]

Q. What is to be done with the property of such banks?

A. It is the duty of the Auditor to apply to any Judge of the Circuit Court, who will appoint Receivers to take the assets or property of every such bank. They are to apply the property:

1st. To the redemption or payment of circulating notes:

2d. To the payment of all other indebtedness; and

3d. To the payment of stockholders on account of stock invested. [Sec. 27.]

Q. What then becomes of the stock in the hands of the Auditor?

A. He is also bound to devote it, first, to the payment of the circulating notes. [Sec. 28.]

Q. Cannot stockholders avoid personal liability by pretended assignment or transfer of stock?

A. No; "the said liability is to continue six months after the assignment by him of any such stock;" and any stockholder who is the party in interest, shall be liable, although such stock may be held and recovered in the name of some other party. [Sec. 29.] Q. How is it to be known who are stockholders?

A. The bank is bound to keep a list of its stockholders posted up for inspection; and also a list of all transfers of stock, as they occur. [Sec. 29.]

Q. To whom does this law apply?

A. To all who shall “conduct business under the provisions of this law. [Sec. 30.] Q. How are the bank Commissioners to be appointed, and what are their duties? A. At the first meeting of the Legislature after the law takes effect, and every fourth year thereafter, the Governor is to nominate to the Senate three persons as Commissioners, and by the advice and consent of the same they are appointed. It is made their duty to make annual examinations of the condition of all banks formed under this law; to inspect the securities filed with the Auditor to see if they are still sufficient security for the notes; and to report them to the Auditor and to the banks. They have all powers necessary to those duties. [Sec. 31.]

Q. What are the Commissioners to do if they find the securities from any cause insufficient?

A. They are to notify the bank concerned, and require additional securities, or the surrender of such quantity of their notes to be burned as will make the securities sufficient for the remaining notes. If the bank fails to comply, it is to be put into liquidation by the Auditor. [Sec. 32.]

Q. Are the banks bound to report their condition?

A. Yes; quarterly under oath-to be published by the Auditor in a newspaper. These reports must contain the amount of stock “paid in and invested according to law;" the value of real estate held; the debts due the bank, and a list of bills discounted; giving amounts and times payable; the amount of debts owing by the bank, and the notes in circulation; of loans and discounts, and specie on hand; and amount held of the notes of other banks. Also, the amount of suspended debt held by the bank. [Sec. 33.]

Banks which refuse to do this "shall forthwith go into liquidation." [Sec. 35.]

Q. How and when may banks wind up voluntarily?

A. When they have redeemed 90 per cent of their notes, and deposited means to redeem the remainder in such bank as the Auditor shall direct, to his credit for that purpose. The Auditor may then give up the securities before deposited with him. [Sec. 36.] The bank may then give three years' notice in a paper published at the seat of government, and in a paper in the county where the bank is located, that all notes of said bank must be presented at the Auditor's office within three years, for redemption; after which the Auditor will give up to the bank any securities which may have been held for the redemption of any unredeemed notes. [Sec. 37.] Q. What rate of interest may the banks charge!

A.

"Not exceeding seven per cent on any real or personal security." This may be received in advance; thirty days to make a month, and twelve months a year. [Sec. 38.]

Q. Are stockholders to be individually responsible?

A. They are, "to the full intent provided for in the Constitution of this State, and to the amounts of their respective shares of stock." And when the property of the corporation is exhausted, creditors may have recourse against stockholders. [Sec. 38.] Q. When does the bank law take effect?

A. When a majority of the people, on the first Tuesday in November, shall vote in favor of its adoption. [Sec. 39.]

Q. How are the people to vote?

A. By ballot; with the tickets having the words, "For the general banking law;" or," Against the general banking law." [Sec. 40.]

Q. How long may a bank exist under the law?
A. Not longer than twenty-five years. [Sec. 41.]

COMMERCIAL REGULATIONS.

THE HALF PILOTAGE LAW IN PENNSYLVANIA.

We publish below the law and supplement passed at the last session of the Legislature of Pennsylvania, as applied for by the Wardens of the Port of Philadelphia and Board of Trade of that city. It will be seen that all vessels engaged in the Pennsylvania Coal trade are exempt from the charge of half pilotage, whether inward or outward bound, and also ALL coastwise vessels outward bound and all steamships arriving at or departing from Philadelphia. The following is a correct copy of the laws in relation to Half Pilotage, passed March 24th, and April 8th, 1851:—

ACT OF 24TH MARCH, 1851.*

SEC. 4. That no duly licensed coasting steamboat, or propeller steamboat, sailing to or from any port within this State-and no duly licensed coasting vessel, bound from any port within this State-and no duly licensed coasting vessel, of the burden of one hundred tons, or under, and bound to any port within this State, shall be obliged to take a pilot, or to pay any pilotage therefor-and all vessels taking steam down as far as Reedy Island between the twentieth day of November and the tenth day of March, inclusive, in any year, there shall be a deduction of five dollars, or to the Buoy of the Brown, there shall be abated the whole charge of winter pilotage, of ten dollars. SEC. 5. That every vessel arriving from, or bound to any foreign port or place-and every other vessel of the burden of one hundred tons or upwards, sailing from, or bound to any port not within the river Delaware (excepted licensed coasting vessels sailing from this port,) shall be obliged to take a pilot—and it shall be the duty of the master of every such vessel, within thirty-six hours next after his arrival at said ports of Philadelphia, to make a report to the master warden of the name of such vessel, her draught of water, and the name of the pilot who shall have conducted her to this port, and when any such vessel shall be outward bound, and not duly licensed to coast, the master of such vessel, and the pilot who is to conduct her to the Capes, and her draught

In accordance with a system of legislation that prevails in Pennsylvania, which we have alluded to in former numbers of this Magazine, the other Sections of the Act relate to matters entirely disconnected with the objects of the Half Pilotage law, included in the 4th, 5th, 6th and 7th Sections &B above.

of water at that time-and it shall be the duty of the wardens to enter every such vessel (reported as aforesaid,) in a book to be by them kept for that purpose-and if the master of any such vessel shall neglect or refuse to make such a report, he shall forfeit and pay the sum of ten dollars, and no more-and if the master of any such vessel being licensed, as a coasting vessel, and of the burden of one hundred tons, or more, shall refuse or neglect to take a pilot, the master or owner, or consignee of such vessel, shall forfeit and pay the sum equal to half pilotage of such vessel—and if such vessel be not licensed as aforesaid, then and in such case, the master, owner or consignee thereof, shall forfeit and pay the full pilotage thereof. Provided always, That wherever it shall appear to the wardens, that in the case of an inward bound vessel, should a pilot not offer before such vessel reached the Brandywine light-house, bearing east, or in case of an outward bound vessel, should a pilot not be obtained for twentyfour hours after such vessel was ready to depart, the penalty aforesaid for not having a pilot, shall not be incurred.

SEC. 6. That all sums due for pilotage, half pilotage, and all other claims and penalties in the nature or in lieu thereof, shall, as they accrue, become and remain a lien upon the vessels chargeable therewith, her tackle, apparel and furniture, until they are paid; and for the recovery thereof, in addition to the remedies now provided, (and which shall remain as heretofore,) such process and proceedings shall issue and be had in the Court of Common Pleas of Philadelphia county; or in any court possessing admirality jurisdiction, as are usually had in the courts of admirality, for the recovery of seamen's wages and all half pilotage forfeitures, and penalties in the nature thereof, accruing by the virtues of this act, and all other debts, claims and demands to which the "Society for the relief of distressed and decayed Pilots, their Widows and Children," are legally or equitably entitled to, under any law whatsoever, shall be recovered in the name and for the use of the said Society, to whom, or to whose agent, duly constituted, the same shall be paid: Provided, That in all suits and proceedings, to which, "The Society for the relief of distressed and decayed Pilots, their Widows and Childdren," shall be a party, no person shall be incompetent to testify as a witness, because of his being a member thereof.

SEC. 7. That such law or laws of this Commonwealth as are hereby repealed or supplied, shall thenceforth be and remain void, saving, nevertheless, all claims and causes of action which were instituted under any former laws, which shall continue to be presented as therein directed, and where proceedings therefore shall not have been commenced, the same shall be prosecuted, as prescribed under existing laws, prior to the passage of this act.

ACT OF 8TH APRIL, 1851.

That nothing contained in any act of Assembly shall be construed as to require any vessel engaged in the Pennsylvania coal trade to pay any Health fee or Half Pilotage either inward or outward bound.

POSTAGE WITHIN THE UNITED STATES AND TO CANADA.

For every single letter in manuscript, or paper of any kind upon which information shall be asked or communicated in writing, or by marks or signs sent by mail, the rates mentioned in this table shall be charged; and for every additional half ounce or fraction of an ounce above the weight named in this table, an additional single rate is to be charged. RATES OF LETTER POSTAGE BETWEEN OFFICES IN THE UNITED STATES, AND TO AND FROM CANADA, FROM AND AFTER JUNE 30, 1851.

NOTE. From and after the 30th of June, 1851, the mode of computing the rates upon inland letters-i. e. letters from one office within the United States or Territories to another, and also upon letters between the United States and the British North American provinces-is to be as follows, to wit: Single rate, if not exceeding half an ounce; double rate, if exceeding half an ounce, but not exceeding an ounce; treble rate, if exceeding an ounce, but not exceeding an ounce and a half; and so on, charging an additional rate for every additional half ounce or fraction of half an

ounce.

The mode of computing rates upon letters to Great Britain, and to all other foreign countries, the British North American provinces excepted, will remain as at present, under the act of 3d March, 1849, and agreeably to instructions appended to the table of foreign postages.

DIRECTIONS.

1st. Every letter or parcel, not exceeding half an ounce in weight, shall be deemed a single letter or rate.

2d. All drop letters, or letters placed in any post office, not for transmission, but for delivery only, shall be charged postage at the rate of one cent each.

3d. Each deputy postmaster, whose compensation for the last preceding fiscal year (ending the 30th of June) did not exceed $200, may send through the mail all letters written by himself, and receive through the mail all written communications addressed to himself, on his private business, which shall not exceed in weight one half ounce, free of postage. This does not authorize them to frank any letters unless written by themselves, and on their private business only; nor does it authorize them to receive free of postage anything but written communications addressed to themselves, and on their private business.

From and after the 30th of June, 1851, for each newspaper, not exceeding three ounces in weight, the annexed rates per quarter are to be paid quarterly in advance. These rates only apply where the paper is sent from the office of publication to actual and bona fide subscribers.

NEWSPAPER RATES, PER QUARTER, WHEN SENT FROM THE OFFICE OF PUBLICATION, TO ACTUAL AND BONA FIDE SUBSCRIBERS, AFTER 30TH JUNE, 1851.

1st. Weekly papers only, when sent as above stated, are to be delivered free in the county where they are published; and this although conveyed in the mail over 50 miles.

2d. Newspapers containing not over 300 square inches are to be charged one quarter the above rates.

3d. Publishers of newspapers are allowed to exchange free of postage one copy of each number only; and this privilege extends to newspapers published in Canada.