New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-17
lPTBLIL-NO. l6l.l
AN ACT to provide for the redemption of the three
per cent temporary loan certificates, and for an
increase OF national bank notes


AN ACT to provide for the redemption of the three
per cent temporary loan certificates and for az
increase or national bank notes.
Be il enacted by the senate and House of Repre-
sentatives OF the United States of America in Con
gress assembled, That tifytorr millions of dollar.
III notes for circulation may De issued to national
hanSinS ASSOCIATIONS in addition II, the three
hundred millions Of dollars authorized BY
the twenty second section OF the tAet to provide
national currency secured by pledge OF United
States bonds and TO provide Tor the circulation and
redemption thereof" approved June three cgli.
teen hundred and siEty-fOur; and the amount OF
notes provided shall be furnished to banking as
sociatious organized or to be organized III those
States and Territories having less than their pro-
portion under the airport comment contemplated by
the provisions OF the Act to amend act to pro-
Vide "A national currency secured by q pledge OF
United States bonds and to provide for the circIl-
htion and redemption thereof approved March
three eighteen hundred and sIXt[ five, and the
bonds deposited with the Treasurer OF the United
States, to secure the additional circulating notes
herein authorized shall he of any description of
boEd.ot the United States bearing interest i'll coin
but a new apportionmeut of the increased circula-
ti0a herein provided for shall be made as soon as
practicable, based upon the census OF eighteen hun
dred and seventy: Provided, that if applica tions
for the circulation herein authorized shall not Ice
made within one year after the passage of this act,
bE banking associations organized to be organ
lied IN States having less than their proper ton, it
shall be lawful for the Controller of the. Currency
to issue such circulation 10 banking associa tons
applying for the III other States or TeGrit cries
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 i'll eX-
cess of five hundred thousand dollars.
SEC. 2. And be it further enacted, That at the
end OF each month after the passage OF this act il
shall be the duty of the Controller of the Cur
Tency 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 ;
whereupon the Secretary of Me Treasury shall re-
deem and cancel an amount of the three per centum
temporary loan certificates issued under the act, of
March two, eighteen hundred and sixty-scven, and
July twenty-five, eighteen hundred and sXty-eight
not less than the amount of circulating notes so
reported, and may, if necessary in order procure
the presentation of such temporary loan certt-
Gates for redemption give notice to the holders
thereof, by publication or otherwise, that certain
OF said certificates, (which shall! be designated by
number, date, and amountD 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 any portion of the lawful
money reserve in possession of any national bank
ing association, and after the day designated in
such notice no interest shall be paid on such certi
Gates and they shall not thereafter he counted as
part OF the reserve of any banking association.
SEC. 3. And BE it further enacted, That upon the
deposit of any United States bonds, bearing inter
est payable i'll gold, with the Treasurer of the
United States, III the manner prescribed in the
nineteenth and twentieth sections of the national
currency act, il shall be lawful for the Controller of
the Currency to issue to the association making the
same circulating of different denominations
not less than five dollars, not exceeding in amount
eighty per centum of the par value of the bonds de
posted which notes shall bear upon their face the
10 pay them, upon presentation al inc once OF the
association i'll gold coin of the United States and
shaii De redceiable upon such presentation III such
coin: Provided, That no banking association organ
lied under this section shall have circulation III
excess OF one million of dollars.
SEC. 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 on hand not les than twenty
t1ve per centum of its outstanding circulation in
gold or silver coin of the United States, and shall
receive at par i'll the payment of debts the gold
notes OF every other sUch banking association
which ut the time of such payments shall be re.
deeming its circulating notes III gold coin of the
United States.
SEC 5 And be it further enacted, That every as
ISOLATION organized tor the purpose OF issuing gold
notes provided i'll this 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 national
banking associations to three hundred millions of
dollars the first clause of section thirtytwo which
taken in connection with the preceding section,
would require national banking associations
gained i'll the city of san Francisco TO redeem
their circulating notes at par in the city OF New
York and the last clause of section thlrtN-tWo,
which requires every national banking association
to receive i'll payment of debts the notes of every
other national banking association at par Pro-
vided, That in applying the provisions and re-
quirement5 of said act to the banking associations
herein provided for 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. 6. And he it further enacted. That to
a more equitable distribution of the national bank
ing currency there be issued circulating notes
to banking associations organized i'll States and
Territories having less than their proportion as
herein set forth And the amount of circulation i'll
this section authorized shall under the direction OF
the Secretary of the Treasury. as it may be re-
quired for this purpose be withdrawn as herein
provided, from banking associations organized IN
States having circulation exceeding that provided
for by the act entitled An act to amend an act en-
rency secured by pledge of United States bonds,
and to provide for the circulation and redemption