The General Banking Law of 1852. 
177 
The General Banking Law of 1852. 
This law 28 was modeled upon the best features of the New 
York free banking law of 1838. Its main provisions were in¬ 
tended to furnish full security for the issue of notes by the 
state banks. 
Section 5 provides that United States or any state stocks 
on which full interest is paid must be assigned and transferred 
in trust to the state treasurer, whereupon the Bank Comptrol¬ 
ler must issue “an amount of such circulating notes of different 
denominations, registered and countersigned, equal to, and not 
exceeding, the amount of stock aforesaid. Such stocks must be 
taken at their current market value in the city of New York at 
the time of deposit; provided, that if, in the opinion of the 
Bank Comptroller and Governor, any stocks offered shall be 
deemed insecure they shall not be received. ” 
Sections 8 and 9 provide that railroad bonds may be received 
at a rate not higher than eighty cents on every dollar of actual 
and current value, as security for not over half the bills 
and notes issued. 
Section 16 provides for a semi-annual tax of three fourths of 
one per cent, on the capital stock. 
Section 17 provides for the deposit of bonds by the directors 
and stockholders of a bank, as additional security, to the amount 
of one fourth of the notes issued. 
Section 18. The aggregate of the capital stock shall not be less 
than $25,000 nor more than $500,000. 
Section 25 declares, that, if the current market value of the 
securities falls below their value at the time of deposit and con¬ 
tinues below that point for ninety days, the difference must be 
made up upon call of the Comptroller. 
Section 41 provides that every bank must make and transmit 
a report twice a year to the Comptroller, containing a sworn 
statement of its true condition. The Comptroller shall publish 
the report in some paper in Madison, with a summary of the 
items of capital, circulation, deposits, specie, cash items, 
public and private securities. 
28 Laws of Wis., 1852, p. 706, et seq. 
