New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-21
fprBIIC-NO. 1911


AN ACT to provide for the redemption of the three
per cent temporary loan certificates and for an
increase OF national bank notes.
Be it enacted BIZ he Senate and House OF Repre-
SentaEyes of the Urited States OF America in Con
gress assembled, That fftyfour millions of dollars
III notes for circulation mag be issued TO national
banking associations in addition to the three
hundred millions OF dollars authorized bv
the tweuty-second section of the Act to provide a
national currency secured by a pledge OF United
States bonds. and to provide for tine circulation and
redemption thereof" approved June three eish-
teen hundred and iNty-tour; and the amount OF
notes provided shall be furnished to banking as
sociations organized or to be organized in those
States aud Territories having less than their pro-
portion under the apportIonment contemplated by
The provisions of the Act to amend an act to pro-
vide a national currency secured by pledge of
United States bonds aud to provide for the circI-
lLtion and redemption thereof" approved March
three, eighteen hundred and sixty-hvc and the
bonds deposited with the Treasurer OF the United
States, to secure the additional circulating notes
herein authorized shall be of any description OF
dsSof the United states bearing interest in CON
hut % new apportlnnmeht OF the increased clrrua'
ton herein provided for shall be made soon
practlca Die, based upon the census of eighteen hun
dred and seventy: Provided, that if applicai ION,
for the circulation herein authorized shall not he
by banking associations organized to be gan
lied i'll States having less than their proper ton
shall be lawful for the Controller of the Culrencv
to Issue such circulation 10 banking associa lions
applying Tor the same IL other States Territories
having less than their proportion, giving the pre-
ference to such as have the greatest deficiency:
And provided further, that no banking association
hereafter organized shall have circulation III ex-
cess OF five hundred thousand dollars.
SIC. 2. And be it further enacted. That at the
end of each month after the passage of this act
shall be the duty of the Controller of the Cur
rency to report to the Secretary OF the Treasury
the amount OF circulating notes issued, under the
provisions OF the preceding section to national
banking associations during the previous month;
Whercupon the Secretary of the Treasury shall re-
deem and cancel amount of the three per Cclltum
temporary loan certificates issued under the act of
March two, eighteen hundred and sixty-seveu and
July twent five, eighteen hundred and si1t weight,
not less than the amount of circulating notes so
reported, and may, if necessary, iii order procure
the presentation OF such temporary loan certifi-
Gates for redemption, give notice to the holders
thereof, by publication or otherwise that certain
of said certificates, (Which shah be designated by
number date, and amount,) shall cease to bear in
terest from and after day TO be designated in such
notice, and that the certificates designated shall
no longer be available as any portion of the lawful
money reserve in possession of any national bank
ing association, and after the day designated in
such notice interest shall be paid such certi
Gates and they shall not thereafter be counted as
part of the reserve OF any banking association.
SEC g. And be it further enacted That upon the
deposit of any United States bonds, bearing inter
est payable in gold with the Treasurer of the
United States, i'll the manner prescribed i'll the
nineteenth and twentieth sections of the atiOnal
currency act it shall be lawful for the Controller of
the Currency to issue to the association making the
same circulating notes OF different denominations
not less than live dollars not exceeding i'll amount
eighty per centum of the par value of the bonds de-
posted which notes shalt bear upon their face the
promise of the association to which they issued
to pay them, upon presentation ut the office of the
association, in gold coin of the United States and
shall be redeemable upon such presentation i'll such
coin: Provided That no banking association organ
lied under this section shall have IA circulation in
excess OF one million of dollars.
SIC. 4. And be it further enacted That every
national banking association formed under the
provisions of the preceding section of this act
shall at all times keep hand not les than twenty
five per centum of Its outs standing circulation III
gold silver coin of the United States, and shall
receive at par in the payment OF debts the gold
notes of every other such banking association
which at the time of such payments shall be
deeming its circulating notes III gold coin OF the
United States.
SEC s And be it further enacted, That every as
ISOLATION organized for the purpose OF issuing gold
notes provided in thi, act shall be subject TO all
the requirements and PROVISIONS of the national
currency act, except the first clause of section
Twenty-Five which limits the circulation OF ma iona
banking associat ions to three hundred millions OF
dollars; the first clause OF section thrtywo, which
taken in connection with the preceding section
would require national banking associations
gained in the city OF san Francisco - redeem
their circulating notes az par in the city of New
York: and the last clause of section thirty-two
which requires every national banking association
to receive in aIment OF debts the notes OF every
OF her national banking association at par: Pro
vded, That in applying the provisions and re-
qurements OF said act to the banking associations
herein provided tor the terms lawful money" and
lawful money of the United States shall be- held
and construed to mean gold or silver coin of the
United States.
SEC. g. And be il further enacted That to secure
ing currency there may be issued circulating notes
to banking associations organized i'll States and
Territories having less than their proportion
herein set forth. And the amount OF. circulation in
this section authorized shall under the direction of
the Secretary OF the Treasury, as 1t may be re-
CURED for this purpose, be withdrawn, as herein
provided from banking associations organized III
States having a circulation exceeding that provided
for by the act entitled AN act to amend an act en-
titled An act to provide for national banking cur
rency secured by pledge of United States bonds.
and to provide for the circulation and redemption
approved March three, eighteen hundred
and sixty five, but the amount so Withdrawn shall
not exceed twenty five million dollars. The Con
troer OF the Currency shall under the direction OF
the Secretary OF the Treasury, make'a statement
showing the amount of circulation in each State
and Territory, and the amount TO be retired by
each banking association in accordance with
this section, and shall when such redistribution
of circulation Is required, make n requlsitiOn
for such amount upon such banks, commencing
with the banks having circulation exceed
ing million OF dollars IN States having
an excess of circulation. ana withdrawing
their circulation in OF one million Of dollars
and then proceeding pro rata with other banks
having circulation exceeding three hundred
thousand dollars in States having the largest ex.
cess of circulation and reducing the circulation of
such banks in States having the greatest propor.
ton IN excess, leaving undisturbed the banks in
states having smaller proportion, until those in
greater excess have been reduced to the same
grade, apd continuing thus to make the reduction
provided for by this act until the full amount Of