The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-03-16
THE FUNDING BILL.
How 1T will Ahec. the Nationa, Banks.

The bill just passed by the Senate will prob
ably be very much altered in the House Of
Representatives 1t does away with the sink
ing fund. and provides that all government
bonds now held in the name OF the United
States, OF which may hereafter be purchased
by the United States, shall be cancelled and
DESTROYED. There are bonds bearing their sew
eral rates of interest provided for-4, 4s and
per cent The following are the provisions as
to national banks:
SECTION I. And he it further enacted, That on
and after the first day of October, lSl0, regis
tered bonds of any denomination not less than
one thousand dollars, issued under the provl-
sions of this act and no others, shall be de-
nosited with the Treasurer of the United States
rs security for the notes issued to national
banking associations for circulation under an
act entitled .sAn act to provide q. national cur
rency secured by pledge of United States
bonds, and to provide for the circulation and
redemption thereof approved June 81, lSG4,
and all national banking associations organ
lied under said act, or any amendment Thereon,
are hereby required to deposit bonds issued
under this act as security for their circulating
notes within one year from the date of the
massage of this act, in default OF Which thelr
right to issue notes for circulation shall be for
feited, and the Treasurer and the Comptroller
of the Currency shall be authorized and re-
ouired to take such measures as may be neces-
sary to call in and destroy their outstanding
circulation, and to return The bonds held as
security therefor 10 the association by which
they were deposited, in sums of not less than
one thousand dollars; provided that any such
association now in existence may, upon giving
thirty days notice to the Comptroller OF the
Currency, by resolution OF Its board OF dlrec-
tors. deposit legal-tender notes with the Treas
urcr of the United States 10 the amount Of its
outstanding circulation; and provided further
that not more than one-third OF The bonds de-
nositcd by any bank as secarity shall be OF
either of the classes of bonds hereby author
lied on which the maximum rate OF interest
is fixed at four and one-hall or hve per cent.
per annllm mt.
SECTION s. .4nd he it further enacted, That
the amount of circulating notes which any
bank may receive from the Comptroller o. the
Currency, under the provisions OF section Il
of said act may equal but not exceed clghty
per centum of the par value OF the funds de-
posited, but shall not exceed In the aggregate
the amount to which said bank may be entl-
tied under this section.
SECTION 9. And be IL further enacted, That
any banking association organized, or to be
orTanized, under the national currency act
and the acts amendatoryS thereof. may, upon
depositing with the Treasurer United States
notes to an amount not less than 1llty thou-
sand dollars. receive an equal amount o: reg
istcred bonds OF the United States OF the KIND
and description provided for by section of
this act, and may deposit the same as the Sc
curity for the circulating notes, and thercupon
such banking association shall be entitled 10.
and shall receive, circulating notes upon terms
and conditions, and to the extent provided in
saiti national currency acts, and without re-
spect to the limitation of the aggregate c!rcr,
1. g NJ a,trf nY.nsnrihn1
acts: Provided, however. that us circulating
notes are issued under this section an equal
amount of United States notes shall be can
ccIlcd and destroyed.