The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1870-07-01
THE CURRENCY AND BANKING
BILL

The following is lac text of Garfeld's cur
rency and banking bill as it passed the House
on Wednesday:
Be IL enacted, Sc, That ninety-iive million,
of dollars in notes for circulation may be is.
sued to national banking associations in add.
ton to the three hundred millions of dollars
authorized by the twenty-seconds section OF the
"act to provide national currency secured by
pledge of United States bonds, and to pro
vide for the circulation and redemption there
Of" approved June 3, 1864, and the amount OF
notes so provided shall be furnished to bank
ing associations organized or to be organized
in those States and Territories having less
than their proportion under the apportion-
ment contemplated by the provisions of the
'act to amend an act to provide q national
currency secured by a pledge of United States
bonds, and to provide Tor the circulation and
redemption thereof" approved March 3, 1863
and the bonds deposited with the Treasurer Of
the United States to secure the additional cir
culating notes herein authorized, shall be OF
any description of bonds of the United States
bearing interest in coin; provided that if APP
plications for the circulation herein authorized
shall not be made within one year after the
passage OF the act, by banking associations or
ganized or to be organized in States having
less than their proportion, it shall be lawful
for the Comptroller of the Currency to issue
such circulation to banking associations ap-
plying for the same in other States OF Terri
tories, having less than their proper cirCula-
ton, giving the preference to such as have the
greatest deficiency; and provided further
that no banking association hereafter organ
lied shall have circulation in excess of five
hundred thousand dollars.
SEC , That ot tho prH pf zach month
after the passage OF this act, it shall be the
duty of the Comptroller of the Currency to
report to the Secretary of the Treasury the
amount of circulating notes issued, under the
provisions of the proceeding section, to nation
al banking associations during the previous
month; whereUpon the Secretary Of the Treas
uary shall redeem and cancel an amount OF
the three per centum temporary loan ceTtif-
Gates, issued under the acts of March 2, 1867,
and July %, 1863, not less than the amount OF
circulation reported, and may, if necessary, i'll
order to procure the presentation of such tenn
porary loan certificates for redemption, give
notice to the holders thereof, by publication OF
otherwise, that certain of said certificates,
(which shall be designated by number, date
and amount), shall cease to bear interest from
and after a day to be designated in such no.
tice, and that the certificates so designated
shall no longer be available as any portion of
the lawful money reserve in possession of any
national banking association; and after the
day designated in such notice no interest shall
be paid on such certificates, and they shall not
hereafter be counted as a part Of the reserve
of any banking association.
SEC. 8. THAI to secure more equitable dis
tribution of the national banking currency,
there may be issued circulating notes to bank
ing associations organized in States and Ter
ritories having less than their proportion as
herein set forth, and the amount of circulation
in this section authorized shall, under the d.
rection of the Secretary of the Treasury, as it
may be required for this purpose, be with
drawn as herein provided, from banking asso-
Citations organized in States having a circula-
ton exceeding that provided for by the act
entitled Gan act to amend an act entitled 'An
act to provide for national banking currency
secured by pledge of United States bonds, and
to provide for the circulation and redemption
thereof, >" approved March 3, 1865: but the
the amount so withdrawn shall not exceed
twenty-five million dollars; the Comptroller of
the Currency shall, under the direction of the
Secretary of Treasury, make o statement
showing the amount Of circulation in each
State and Territory, and the amount to be re-
tired by each banking association in aceor-
dance with this section, and shall, when such
redistribution of circulation is required, make
requisition for such amount upon such
banks, commencing with the banks having q
circulation exceeding one million Of dollars in
States having excess of circulation, and with
drawing their circulation in excess of one mil
lion dollars, and then proceeding prorata with
banks in the States having smaller proper
ton, until those in greater excess have been
reduced to the same grade, and continuing
thus to make the reduction provided for by
,oA- kba -
millions, herein provided for shall be with
drawn; and the circulation so withdrawn shall
be distributed among the States and Terrific
ries having less than their proportion, so to
equalize the same; and it shall be the duty of
the Comptroller of the Currency, under the
direction of the Secretary of the Treasury,
forthwith to make requisition for the amount
thereof, upon the banks above indicated as
herin prescribed, and upon failure of such as
sociations or any Of them, to return the a.
mount so required within one year, it shall be
the duty of the Comptroller, Of the Currency
to sell at public auction, having given twenty
days notice thereof in one daily newspaper
printed in Washington, and one in New York
CITY, an amount of binds deposited by said
association as security for said circulation,
equal to the circulation to be Withdrawn from
said association and not returned in compliance
with such requisition; and the Comptroller
of the Currrncy shall with the proceeds re-
deem so many of the notes of the said bank
ing association, as they come into the Treasu-
ry, as will equal the amount required and not
so returned, and shall pay the balance if any
to such banking association; provided, that no
circulation shall be withdrawn under the pro-
visions of this section until after the ninety
five millions granted in the first section shall
have been taken up.
SEC. f. That after the expiration of six
months from the passage Of this act, any bank
ing association, located in any State having
more than its proportion of circulation, may
be removed to any State having less than its
of circulation, under such rules
and regulations as the Comptroller of the Cur
rency, with the approval Of the Secretary Of
the Treasury, may require; provided, that the
amount of the issue of said banks shall not be
deducted from the amount of new issue pro-
vided for in this act.