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Early Michigan Early Banks Of Michigan
The specie thus paid in was to be the capital of the bank, the basis of its business operations. The requirement of it involved the principle that banking could not be carried on without bona fide capital, and without it no bank could be permitted to flood the country with its bills. But the investigations of the commissioners showed a very general violation of the law ' in this respect.
In many cases instead of specie a kind of paper denominated as "specie certificates" was used. These were given by bank officers, and sometimes by individuals or firms acknowledging the receipt of specie held on deposit. In some cases specie borrowed for the occasion was used and immediately returned to the owner. Sometimes the notes of the individual subscribers or others, usually denominated "stock notes," were received and counted as specie.
Michigan
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