The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-03-12
SATURDAY, MARCH 1s, 1870.
THE FUNDING BILL.


$40O, 600, 600 each, in denominations not less
than fifty dollars, and payable in coin at the
pleasure of the Government after ten and at
forty years from date; the second after fifteen
and at forty years; and the third after twenty
and at forty years. The first series, or ten
forties, are to bear interest at the rate of five
per cent. per annum; the second
series, or fifteen-forties, are to bear
interest at four and half per
cent; and the twenty-forties interest at four
per cent. These bonds the Secretary is
authorized to dispose of, under such regula-
tions as he shall prescribe, within the United
States or elsewhere, at not less than their par
value in coin, or they may be exchanged for
any of the outstanding bonds of an equal
aggregate par value heretofore issued and
known as the fve-twenty bonds. The pro-
ceeds of so much of the loan as may be dis
posed of for coin are to be placed in the Trea-
sury, to be used for the redemption of such
six per cent. bonds as may mott be offered in
exchange, or to replace such amounts of coin
as may have been used for that purpose.
The bonds authorized by this act are exempt
from all taxation under national, State, or
mu nioipal authority. g..
The Secretary Of the Treasury is authorized
to appoint such agents in the United States
and Europe as he may deem necessary to aid
in the negotiation of these bonds, and also to
advertise the loan and its conditions in such
newspapers and journals in this country and
Europe as he may select for the purpose, a
sum not exceeding one-half of one per cent.
of the bonds authorized in the bill being sp-
propriated to pay the expense of preparing,
issuing, and disposing of the same.
The sum of $3.50, 900, 900 annually is ap-
propriated oat of the duties derived from inn
ported goods, to be applied during each fiscal
year to the reduction Of the principal
of the public debt, and the United States
bonds now held as the sinking fund and those
now held in the Treasury are to be cancelled
and destroyed, and the bonds hereafter pur-
chased are also to be cancelled and destroyed
in like manner, and full and detailed
account of the application of the money ap-
propriated in the bill is to be made annually
to Congress by the Secretary of the Treasury
with his report, and the aggregate amount of
the bonds cancelled and destroyed is to be
given in the monthly statements of the pub
lie debt .
The seventh section of the bill refers to
the national banks, and provides that on and
after tina LIST day Of October, 1870, registered
bonds of any denomination not less than
$1,000, issued under the provisions of the act,
and no others, shall be deposited with the
Treasurer of the United States as security for
the notes issued to national banking associa-
tions for circulation, under the act of
July 3, 1864, and all national bank
Z ing associations organized under said
5 act or any amendment thereof, the
bonds of which are then redeemable by these
terms, and as they shall thereafter become re.
deemable are authorized to deposit bonds
issued under this act as security for their cir
culating notes, within one year from the date
of the passage of this act in default of which
their right to issue notes for circulation shall
be forfeited, and that the Treasurer and the
Comptroller of the Currency are autho-
rized and required to take such measures as
may be necessary to call in and destroy their
outstanding Calculations, and to return the
bonds held as security therefor to the
association by which they were deposited
in sums of not less than $1,000, 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 Directors, deposit legal-tender
notes with the Treasurer of the United States
to the amount of its outstanding circulation
and take up the bonds pledged for its redemp-
tion; and provided further, that not more
than one-third of the bonds deposited by any
bank as security shall be of either of the
Glasses Of bonds authorized in this bill, in
which the maximum rate of interest is fixed
at four and half or Ave per cent. per
Annum.
The eighth section provides that the
amount of circulating notes which any bank
may receive from the Comptroller of the Our
roncy under the provisions of the act of 1864
may equal but not exceed eighty per cent OF
the bonds deposited, but shall not exceed in
the aggregate the amount to which suoh bank
may be entitled under that act
1t is further provided that any banking
associations organized or to be organized
under the National Currency act and the acts
amendatory thereof, may, upon depositing
with the Treasurer United States notes to an
amount not less than $50, 90, receive an
equal amount Of registered twenty-forty -four
per cent. bonds provided for in this bill, and
may deposit the same as the security for cir
culating notes, and thereupon such banking
association shall be entitled and shall receive
ciPculatino notaa ,,Don farYns and condifion,