Evening star. [volume] (Washington, D.C.) 1854-1972, 1868-01-16

FUNDING THE NATIONAL DEBr.-The bill for
the funding of the National debt introduced by
Mr.. Hunter in the House of Representatives on
Monday, and referred TO the Committee of
Ways and Means, authorizes the Secretary of
the Treasury ssto issue registered or coupon
bonds OF the United States, in form and of such
denominations rs he may prescribe, payable,
principal and interest. in coin. and bearing in-
tfrest ut the rate of six per centum per aunum.
payable >emi-annually. Such bonds To be due
Al no definite period, but to be redeemable in
coin al the pleasure of the United States after
ten years from date, TO b. issued to such an
amount from time 20 time As the demands upon
the treasury may require, but III all not exceed
ing amount sufficient to cover all present
outstanding or existing obligations of the United
States and to be disposed of by such Treasurer
a hereinafter required and not otherwise"
The second section enacts: ssThat the bonds
issued under the first section of this act shall be
known as the funded debt of the United 81 itns:
and the same shall be exempt from taxation in
any form by or under State. municipal, or
local authority; and in consideration of such
exemption there shall BIZ reserved by the Treas
urPr of the United States sixth of the interest
arising on said bonds, which sum in lawful
money of the United States, shall be distributed
among the several States in proportion to their
population, which shall be determined by the
last census taken before such distribution
The third section provides that immediately
after the taking effect of the act the Secretary is
to give notice to all persons holding obligations
against the United States except Treasury
~
ment. The Fiye-twentes and Seven thirtles
Eall be r garded as due and payable after five
and three years from their dates respectively:
and the Secretary shall pay all such obligations
and bonds in the lawful currency of the United
States. except as hereafter provided or NAV
exchange such bonds and obligations in
amounts of one hundred, dollars, or multiples
of that sum for an equar amount of the bonds
provided for in the first section of this act
The Ten-forties and all other obligations while
the United States expressly stipulated to pay
EhnlI
same may al the pleasure of the holders be con-
verified into the bonds provided for in the irst
section of this act.
The fourth section provides that TO make the
payments provided for in the third section, the
Secretary of the Treasury is required to issue
such amount of treasury notes, commonly
known As greenbacks, as may be required to
pay on such bonds and obligations of the
United States, not payable in coin. as fast as
the same may be presented for payment, where
the person or persons presenting the same shall
prefer payment in the treasury notes of the
United States TO the exchange of their bonds or
obligations for the bonds forming the funded
debt.
The fifth section provides that if any person
or persons holding bonds or other obi cations
against the United States which shall be draw :
ing interest, and such person or persons shall
not present the same at such treas ury or such
other place as such Secretary shall prescribe
for payment or exchange. as provided in the
third section of this act, within six months
after such notice when the same are due or
WltniI SIX months AFTER the same shall become
due, after such notice, as provided IN said thi rd
section. then the interest on such bond or obi :
CATION shall cease from the date of six months
after such notice. or within six months after
such bond or obligation shall become due after
such notice "a Aforesaid: and such Secretary of
the Treasury shall, when such bond or obliga-
ton. so drawing interest, is presented for paw
ment or exchange, only allow interest on such
bond for six months after such notice. or for six
months after the same becomes due after such
notice a aforesaid, a. provided in this act.
The sixth ec.iOn provides that the Secre-
tary OF the Treasury shall not be permitted to
accumulate coin and hold the same il the treas
ury of the United States in any greater GUAM
tlty than shall b. sufficient TO meet the dema nd
upon the treasury payable in COIN as pro divided
III the third section of this act. and the slme
shall b. paid out upon such demands "a fast a
the same shall fall due aud be presented for
payment: and l. authorized and empowered To
collect from duties upon imports only such pro-
portion OF the same in coin aslmay be neces-
sary 10 meet the obligations of the United States
which are payable in coin. and the residue he
shall receive in the lawful currency OF the
United States.
The remaining sections provide for cancelling
the redeemed bonds, and that all moneys arising
from the sale of the public lands of the United
States after this dat. and all moneys arising
from fines penalties and fOrfpitureS under the
acts providing internal revenue for the sup
port of the Government and the act imposing
duties upon foreign imports. after the payment
OF informers, as provided in such acts, and all
moneys arising from every other source belong
ing 10 the United States and paid into the
treasury thereof, except moneys arising from
internal revenue and the duties upon foreign
imports. shall be set apart a n sinking fund, to
BE- applied to the reduction of such debt in such
manner As may ne determined by such Secre-
tary OF the Treasury, or As Congress may here
after direct.