This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1911 Excerpt: ...by other banks to those who wished to buy stock in a new bank, thus substantially repeating the old stock-note system. Although it was difficult to devise a satisfactory plan for parceling out a franchise possessing a pecuniary value, the commissioners suggested that an individual should be limited as to the number of ...
Read More
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1911 Excerpt: ...by other banks to those who wished to buy stock in a new bank, thus substantially repeating the old stock-note system. Although it was difficult to devise a satisfactory plan for parceling out a franchise possessing a pecuniary value, the commissioners suggested that an individual should be limited as to the number of shares; that shares should not be transferable for thirty days; that subscribers should take oath that they had paid in with their own money and had not pledged or hypothecated the stock in any way, or held it in trust in secret. In the same year a law was passed providing for the sale of bank stocks at auction whenever new capital was created. In 1854 the superintendent of the bank department reported that the only failures of banks in the previous eight years by which bill holders had suffered a loss had been those located in remote parts of the State owned by brokers and speculators residing in other sections.6 In New Jersey, by a charter of 1824, citizens of the State were to have a prior right to subscribe for at least one-half "Assembly Report, New York, No. 1j6, February 7, 1834. & Report, p. 62. the stock;" in three charters, 1828-1830, stock was to be subscribed by citizens of New Jersey exclusively; in 1832, citizens of Pennsylvania were given the privilege of subscription;6 in 1848, all outsiders were again excluded, and in a charter of 1855 it was provided that a majority of stockholders must always be residents of the State.' In Pennsylvania the charter of the Bank of Pennsylvania, 1793, required for the purpose of distributing ownership that books should be opened in Philadelphia for 2,000 shares, in Lancaster for 300, and in Reading for 200, and that no subscriptions should be received in Philadelphia for the two l...
Read Less