Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-01-27
ANoTaER FINANCIAL FAILURE.
4 Dfsl for Euno ing lAe Public
Debt and Amending theNaslons
al Bnnfxtng Law.

In ths United States Senate, yesterday,
Nj Henderson, Of Missouri, introduced
bill TO fund tho public debt and amend the
banking Laws OF the United States, which
vas referred 10 the Committee on Finance.
u provides that for The purpose Of paying
OH the compound interest notes, three per
+ cent. certificate and outstanding indebted
| ness. nay able 10 awful money, the SecFe-
tary OF ths Treasury shall be authorized 70
1 ise-e and pay out such notes as were az
ti.or;xed by the act of February goth, 1857,
,,ovid Il their whole amount shall not a.
snx tins sxcsed four hundred miili0ns Of
1oilars including those already issned, ex-
! = - h, nasss hereafter specified The Sec
ret,ry OF the Treasury is fertilizer authorized
TO issue coupons, or registered bonds, TO an
amount sufficient to cover all existing obi
oasione, which are n bear interest at not
more than 81 per csat. per snnutn. princi-
pal aud interest payable in coin, to be due
in My yeaSs, but redssmabls in ten ysass
aftcr date, at the pleasure Of the Govern
ment. They are 20 be exch aneed q not
less than par value for any bond, certificate,
note or other evidence Of indebtedness of
the United States, excep: legal tender
notes, which are not 10 be funded until de-
cided By Congress; and the new bonds
shall b ex tempt from eli taxation by State
- local authority.
Section three provides that the limit Of
$500. COO 900 in the amount Of circulating
notes shall be removed, and that any Ma
tional Bank may receive 50 per cent. Of the
value Q! new bonds deposited with tbs
Treasurer in notes for circulation provided
this does not exceed 70 per cent. on its
paid up capital Existing banks are re-
alircs u substitute bonds OF the new issue
for those now deposited, to an equal amount
bearing the same relation to circulation and
capita. as required By this section In the
case Of new bank, under the penalty Of
forfeiture OF cid bonds and winding up their
affairs by the Comptroller Of the Currency,
in which case their n ties are to be paid by
a sufficient amount of legal tender notes
which may be issued In excess Of the $780,
| 000, 900 heretofore authorized but if the
amount OF United States notes and Nation
81 Bank notes togethcr shall exceed $780,
| 600, 900, tho bonds deposited by the banks
may be devoted 10 them on receipt, by the
Treasurer, Of the amount Of their outetand-
ing notes in United States notes.
The fourth section provides for the crea-
ton Of Of . sinking fund, BY the setention
II two-ssvcnths Of the interest accruing on
bonds deposited 10 secure the circulating
notes. in confederation Of which the capital
of the banks to extend the Same AZ invested
in bonds 90 deposited. All shares OF stock
therein. and their circulating notes, shall be
exempted from national, State and munich
pal taxation.
The bill further provides that from july
lat, 1868. to January lot, 1853, one cightt
part, and after ths last date one-fourth par /
of enc import duties may be paid in United
S,otes notes. Also, that whenever Oh,
amount Of National Bank notes shall exccet
, $500, 100000. the Secretary Of the Treas
, ,ry, with the advice aud consent Of ma
/ i,rity Of the following named persons, viz
9 The Comptroller of Currency, the Commits
soner OF Internal Revenue, the Chairman
, OF the Senate Committee on Finance, an,
the Chairman Of the House Committee Q
Ways and Means, shall retire an amount Q
, United States notes equal 10 such excess
so that the whole amount Of circulating an
leg Il tender notes shall not exceed 500
900 900, until legal tender notes outstan,
ing be reduced to s200, 100000.