# United States Statutes at Large/Volume 3/16th Congress/2nd Session/Chapter 38

Chap. XXXVIII.—An Act to authorize the President of the United States to borrow a sum not exceeding five millions of dollars.
The President empowered to borrow not more than 5,000,000 dollars at not exceeding five per centum. Reimbursable after 1st Jan., 1835. Stock transferable.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States be, and he is hereby, empowered to borrow, on the credit of the United States, a sum not exceeding five millions of dollars, at a ​rate of interest, payable quarter-yearly, not exceeding five per centum per annum, and reimbursable, at the will of the government, at any time after the first day of January, one thousand eight hundred and thirty-five; to be applied, in addition to the moneys now in the treasury, or which may be received therein from other sources, during the present year, to defray any of the public expenses which are, or may be, authorized by law. The stock thereby shall be transferable in the same manner as is provided by law for the transfer of the public debt.
The Bank of the United States may lend the money. Certificates of stock may be constituted and sold. Proviso.Sec. 2. And be it further enacted, That it shall be lawful for the Bank of the United States to lend the said sum, or any part thereof; and it is hereby further declared, that it shall be deemed a good execution of the said power to borrow, for the Secretary of the Treasury, with the approbation of the President of the United States, to cause to be constituted certificates of stock, signed by the register of the treasury, or by a commissioner of loans, for the sum to be borrowed, or for any part thereof, bearing an interest of five per centum per annum, transferable and reimbursable as aforesaid, and to cause the said certificates of stock to be sold: Provided, That no stock be sold under par.
The Secretary of the Treasury may employ agents to obtain subscriptions, or to sell the stock. Commissions to agents.Sec. 3. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized, with the approbation of the President of the United States, to employ an agent, or agents, for the purpose of obtaining subscriptions to the loan authorized by this act, or of selling any part of the stock to be created by virtue thereof. A commission of not exceeding one-eighth of one per centum on the amount thus sold, or for which subscriptions shall be obtained, may, by the Secretary of the Treasury, be allowed to such agent or agents; and a sum not exceeding four thousand dollars, to be paid out of any moneys in the treasury not otherwise appropriated, is hereby appropriated for that object, and subscription certificates, and certificates of stock, and other expenses incident to the due execution of this act.
Surplus of the annual approbation of 10,000,000 dollars pledged for the payment of the principal of the stock of the loan. Commissioners of the sinking fund authorized to apply the sums necessary. Sec. 4. And be it further enacted, That so much of the funds constituting the annual appropriation of ten millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be sufficient for that purpose, after satisfying the sums necessary for the payment of the interest, and of such part of the principal, of the said debt, as the United States are now pledged annually to pay and reimburse, is hereby pledged and appropriated for the payment of the interest, and for the reimbursement of the principal, of the stock which may be created by virtue of this act. It shall, accordingly, be the duty of the commissioners of the sinking fund to cause to be applied, and paid out of the said fund, yearly, such sum and sums as may be annually be necessary to discharge the interest accruing on the said stock, and to reimburse the principal, as the same may become due, and may be discharged in conformity with the terms of the loan. And they are further authorized to apply, from time to time, such sum or sums towards discharging, by purchase, and at a price not above par, the principal of the said stock, or any part thereof; and the faith of the United StatesFaith of the United States. is hereby pledged to establish sufficient revenues for making up any deficiency that may hereafter take place in the funds hereby appropriated for paying the said interest and principal sums, or any of them, in manner aforesaid.
Approved, March 3, 1821.