Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1868-01-23
Bill to Fund the Public Debt.

Mr.. Henderson introduced O bill TO
fund the public debt and amend the
banking laws Of the United States,
which was referred 20 tie Committee on
Finance. 1t provides that for the pur-
pose Of paying of the compound inter-
est notes, three per cent certificates and
other outstanding indebtedness, payable
in lawful money, the Secretary Of the
Treasury shall be authorized to issue
and pay ont such notes as were author
lied BY the act Of February 18th, 1867
provided their whole Amount shall not
at any time exceed $400,000,000, in
Guiding those already issued, except in
the cases hereafter specified. The Sec
rotary of the Treasury is further author.
lied to issue coupons or registered bonds
TO an amount sufficient to cover oil the
existing obligations which are bearing
interest at not more than three and
half per cent. per annum, the principal
and interest payable in coin, to be due
in fifty years, but receivable ten years
after date at the pleasure of the Govern
ment. They are to be exchanged at not
less than par value for any bonds, GER
tif;cates, notes, or other evidence of in.
debtedness, except legal tender notes,
which are not to be funded until decided
by Congress, and the new bonds shall be
exempt from all taxation by State or
local authorities.
Section three provides that a limit OF
s.. 1000, 1000 in the amount Of circulating
notes shall be removed, and any national
bank may receive eighty per cent. on the
value ofthe new bonds deposited with the
Treasurer for notes for circulation, pro.
vided that this does not exceed seventy
per cent. on its paid up capital, and the
existing banks are requested to substi-
tute the bonds of the new issue for those
now deposited to an equal amount, bear
ing the same relation to their circulation
and capital as is required by this section,
under the penalty of a forfeiture of their
old bonds and the winding up OF their
affairs by the Controller of the Currency,
in which case their notes are to be paid
by a sufficient amount of legal tender
notes. which may be issued in excess Of
the $500, 100000 heretofore authorized;
but if the amount of United States notes
and national bank notes together shall
not exceed $$79o egn, goo, the bonds de-
posted by banks may be devoted to them,
on receipt by the Treasurer of the amount
of their outstanding notes in United
States notes.
Section fourth provides for the crea-
ton of sinking fund, by retention of
two.sevenths of the interest," accruing on
the bonds deposited to secure the circu-
lating notes, in consideration of which
the capital of the banks is to extend the
same as if invested in the bonds so de-
posted, and all shares Of stock therein,
and their circulating notes shall be ex-
empted from national, State and mum
cipal taxation. The bill further provides
that from July LIST, 1868, until July LIST.
1869, ont-eighth part, and after the last
date, one fourth part of the import duties
may be paid in United States notes.
Also, that whenever the amount of ma
tiona bank notes shall exceed $500, 000,-
900. the Secretary of the Treasury, with
the advice and consent of the following
named persons, viz: Controller of the
Currency, Commissioner of Internal
Revenue, Chairman of the Senate FL
nance Committee, and the Chairman of
the House Committee on Ways and
Means, shall retire en- amount of United
States notes equal to such excess, so that
the whole amount circulating and the
legal tender notes shall not exceed $780,
000,0 900, and the legal tender notes out
standing be reduced to 100000, 900.