New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-07-15
THE CURRENCY BILL.

|
agreed to by the committee of conference
SECTION l.. That fifty-four millions of dol
lars in notes for circulation may be ISSUED
to national banking associations in addition
to the three hundred millions Of dollars au
thOrized by the twenty-secOnd section Of
the "Act to provide national currency
secured by a pledge of United States bonds
and to provide for the circulation and re
demption thereof" approved June 3, 1864
and the amount of notes so provided shall
be furnished to banking associations, organ
Territories having less than their proper
ton under the appOrtiOnment 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 t.
provide for the circulation and redemption
thereof" approved March g. 1865, and the
bonds deposited with the Treasurer OF
the United States to secure the adj
ditiOnal circulating notes herein author
lied shall be, Of any description of bonds OF
the United States bearing interest in coin;
but a new apportionment of the increased
circulation herein provided for shall be
made as soon as practicable, based upon
the census of 1870; provided, that if applica.
ton for the circulation herein authorized
shall not be made within one year after the
passage Of this act, by banking associations
organized or to be organized in States having
| less than their proportion, it shall be lawful
for the Controller of the Currency to issue
such circulation to banking associations ap-
| plying for the same in other States or Ter
ritOries having less than than their proper
| ton; giving the preference to such as have
the greatest deficiency. And, provided, fur
ther, that no banking association hereafter
organized shall have a circulation in excess
of $5OO,OOO.
| SEC. 2. And be it further enacted, That
at the end Of each month, after the passage
Of this act, it shall be the duty of the Con
| trOller OF the Currency to report to the
| Secretary of the Treasury the amount OF
| circulating notes issued, under the prOvi-
| sions of the preceding section, to national
| banking associations during the previous
| month, whereupon the Secretary of the
| Treasury shall redeem and cancel an
| amount of the three per centum temporary
March 2, 1867, and July 25, 1868, not less
than the amount of circulating notes SO re-
ported, and may, if necessary, in order to
procure the presentation of such temporary
loan certificates for redemption, give notice
to the holders thereof, by publication or
otherwise, that certain Of said certificates,
| which shall be designated by number, and
they shall not be counted as part OF the re-
serve of any banking association.
SEC. 3. And be it further enacted, That
upon the deposit of any United States bonds,
bearing interest payable in gold, with the
Treasurer of the United States, in the man.
ner prescribed in the nineteenth and twen-
tieth sections of the national currency act,
it shall be lawful for the Controller of the
Currency to issue to the association making
the same circulating notes of different de-
nominations not less than five dollars, not
exceeding in amount eighty per centum of
the par value of the bonds deposited, which
notes shall bear ,lpOn their face the promise
of the association to which they are issued
to pay them, upon presentation at the Office
of the association, in gold coin of the United
States, and shall be redecmable upon such
presentation i'll such coin; provided that no
banking association organized under this
section shall have circulation in excess of
one million dollars.
SEC. 4. And be it further enacted, That
every national banking association formed
under the provisions OF the preceding sec
tiOn of this act shall at all times keep on
hand not less than twenty-five per cent of
its outstanding circulation in gold 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 re-
deeming its circulating notes in gold coin of
the United States.
SEC. 6. And be it further enacted, That
every association organized for the purpose
of issuing gold notes as provided in this
act, shall be subject to all the requirements
and provisions of the national currency
act except the first clause of section twenty
two, which limits the circulation Of national
banking associations to three hundred mil
lions of dollars: the first clause of section
thirty-two, which. taken in connection with
the preceding section, would require nation
al banking associations organized in the
city OF San Francisco to redeem their circu-
lating notes at par in the city of New York;
and the last clause of section thirty-twO.
which requires every national banking assO-
citation to receive in payment of debts the
notes of every other national banking assO-
citation at par: provided, that in applying
the provisions and requirements 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 g. And be it further enacted. That to
secure a more equitable distribution of the
national banking currency, there may be
issued circulating notes to banking assOcia-
tions organized in the States and territories
having less than their proportion, as herein
set forth. And the amount of circulation
in this section shall, under the direction of
the Secretary of the Treasury, as it may be
required for this purpose, be withdrawn. as
herein provided, from banking associations
organized in States having circulation eX-
ceeding that provided for by the act entitled
9 An 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 re
demption thereof" approved March B.
1865 but the amount so withdrawn shall
not exceed $25,OOOOeO. The Controller of
the Currency shall, under the direction of
the Secretary of the Treasury, make state
mcnt showing the amount of circulation i'll
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 a requisitiOn for such
amount upon such banks, commencing with
the banks having circulation exceeding
81 ,O0O, 900 in States having an excess OF cir
culatiOn, and withdrawing their circulation
in excess of 81 l,000, 600, aud then proceeding
pro rata with other banks having circula
ton exceeding $500, 900 in States having the
largest excess of circulation, and reducing
the circulation of such banks in States hav-
ing the greatest proportion in excess, leay
ing undisturbed the banks in States having
a smaller proportion until those in greater
excess have been reduced to the same grade,
and continuing thus to make the re-
duction provided for by this act,
until the full amount of $4,000, 900 herein
provided for shall be withdrawn; and
the circulation so withdrawn shall be dis
tributed among the States and Territories
having less than their proportion SO as to
equalize the same. And it shall be the duty
of the Controller of the Currency, under
the direction of the Secretary of the
Treasury. forthwith to make a requisition
for the amount thereof Upon the banks