The Portland daily press., 1870-02-04
WASHINGTON.

SENATOR SHERMAN FUNDING BILL,
WASHINGTON, Feb 81 The following is the
text of the funding bill reported to the Senate
day by Mr.. Sherman, from the Finance
Committee:
Be 1t enacted, &C., That for the funding of
the debt OF the United States and reducing the
interest thereon, the Secretary of the Treasury
be and he is hereby authorized to issue on the
credit of the United States coupon or regis
tered bonds of such denominations, not less
than $50, as he may think proper, to an amount
not exceeding $500 900, 900, redeemable in coin
at the pleasure of the Government at any time
after ten years, and payable in coin at twenty
years from date and bearing interest at the rate
of 5 per centum per amman, payable semi
annually in coin; and the bonds thus author
lied may be disposed of at the discretion of
the Secretary under such regulations as he
shall prescribe, either in the United States or
elsewhere at not less than par value for coin;
or they may be exchanged for any of the out
standing bonds of an equal aggregate par
value heretofore issued and known as 500
bonds, and for no other purpose; and the pro-
ceeds of so much thereof as may be disposed of
for coin shall be placed in the Treasury to be
used for the redemption of such per centum
bonds at par as may be offered in exchange
or to replace such an amount of coin as NAV
have been used for that purpose
SECT. 2--That the Secretary of the Treasury
be, and he is hereby authorized to issue on
credit of the United States coupon or reg
istered bonds to the amount of $500, 900, of
such denominations not less than $50 as he
may think proper, and redeemable in coin at
the pleasure of the Government at any time
after fifteen years, and payable in coin at
thirty years from date, and bearing interest
not exceeding IL per centum per annum
payable sem-annualy in coin; and the bonds
authorized by this section may be disposed of
under such regulations the Secretary of the
Treasury shall prescribe in the United States
and elsewhere at not less than par for coin, or
they may be exchanged at par for any of the
outstanding obligations of the Government
bearing higher rate OF interest in coin, and
the proceeds of such bonds as may be sold for
coin shall be deposited in the Treasury to be
used for the redemption of such obligations
bearing interest IN coin as by the terms of the
issue is or may become redeemable or payable,
or to replace such coin as may have been used
for tlat purpose.
SECT. 3.-That the Secretary of the Treasu-
ry be and he is hereby authorized to issue on
the credit of the United States from time to
time coupon or registered bonds of such de-
nomination of not less than $50 as he may
think proper. to the amount of $400, 600, 000 re-
deemable in coin at the pleasure of the govern
ment any time after twenty years and payable
in coin at forty years from date and bearing
interest at the rate of per centum per annum,
payable semi-annually in coin, and such bonds
may be disposed of either in the United States
or elsewhere at not less than their par value
for coin, or at the discretion of the Secretary
of the Treasury for United States notes or may
be exchanged at not less than par for any of
the United States bonds outstanding at the date
of issue of such bonds; and if in the opinion of
the Secretary of the Treasury it is thought adj
visable to issue larger amount of per centum
bonds for any Of the purposes herein or here
after recited than would be otherwise author
lied by this section of this act, such farther is
sues are hereby authorized; provided that there
shall be no increase in the aggregate debt of
the United States in consequence of any issues
authorized by this act.
SECT. 4-That the bonds authorized by this
act shall be exempt from all taxation by or un-
der national, State, municipal or local authori-
ties.
SECT. 5-That the coupons of said bonds
may be made payable at the Treasury of the
United States or at the Office of an agent of
the United States, either in the cities OF Lon
don, Paris, Amsterdam or Frankfort in dollars
or the equivalent thereof in sterling money! in
francs or thalers.
SECT. 6-That the Secretary of the Treasury
be and he is hereby authorized to appoint such
agents in the United States and in Europe as
he may deem necessary to aid in the negotia-
ton of said bonds, and he may advertise the
loan herein authorized and the conditions
thereof in such newspapers and journals in
this country and Europe as he may select for
that purpose, and a sum not exceeding per
cent. per annum of the bonds herein authoriz-
ed is hereby appropriated to pay the expense
of preparing, issuing and disposing of the same.
SECT. THAT in order to carry into execu-
ton the provisions of the 9th section of the
funding act of the United States notes, &c., of
Feb %, 1862, there is hereby appropriated out
of the duties derived from imported goods the
sum of $15O,OOO0O annually, which sum dur
ing each fiscal year shall be applied to the pay
ment of interest and to the redemption of the
principal of the public debt; and United States
bonds now held as sinking fund in the treasu-
ry shall be cancelled and destroyed; detailed
record thereof being first made in the books of
the Treasury Department.. And the books
hereafter purchased under this section shall in
like manner be cancelled and destroyed. ard
full and detailed account of the application of
the money herein appropriated shall be made
by the Secretary of the Treasury to Congress,
with his annual report; and the aggregate
amount OF bonds cancelled and DESTROYED shall
be stated in the monthly statement of the pub
lie debt
SECT. 8@That on and after the first day of
october, 1870, the registered bonds of any de-
nomination not less that $1,000, issued under
the provisions of this act, and no other shall
be deposited with the Treasurer of the United
States as security for notes issued to national
banking associations for circulation under the
currency act of June 3, 1864; and all national
banking associations organized under said act
or any amendment thereof are hereby required
to deposit bonds issued under this act, as secu-
rlty Tor their circulation notes, within one year
from the date OF the passage of this act, in de-
fault of which their right to issue notesefOr cir
culation shall be forfeited, and the Treasurer
aud Comptroller of the Currency shall he au-
thorized and required to take such measures
as may be necessary to call in and destroy
their outstanding circul ,tion and to return the
bonds held as security therefor to the associa-
ton by which they were deposited, in sums of
not less than $1,000; provided that any such as
soclatlon now in existence may upon giving 80
days notice to the Comptroller of the Curren-
cy, by resolution of its board of directors, de-
post legal tender notes with the Treasurer of
the United States to the amount of it's out
standing circulation and take up the bonds
pledged for its redemption; and provided fur
| Their, that not more than one-third of the bonds
| deposited by any bank as such security shall
be OF either of the classes of bonds hereby au-
thor'zed, on which the maximum rate of inter-
| est is fixed at 4 IL to per cent. per anuum.
SECT. 9.-That the amount of circulating
| notes which any bank may receive from the
| Comptroller of the Currency under the provis-
| ions of section 2 of said act may equal but not
exceed 50 per centum of the par value of the
bonds deposited, but shall not exceed in the
| aggregate the amount such bank may be en-
| titled to under said section.
SECT. 10.-That any banking association or
| gained or to be organized under the national
| currency act and acts amendatory thereof ma y
upon depositing with the Treasurer of the
| United States, notes to the amount of not less
than 100000 receive an equal amount of regis
| tered bonds of the United States of the kind
| and description provided for by section Sd of
| this act and may deposit the same as security
L ,1o<,n 1o,.