The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1870-02-11
sHERMAN's FUNDING BILL.
Washington. February 3.


funding the debt of the United States and
lro1ucing the intrest, thereon, the secretary
OF the treasury is hereby authorized to issue
on the credit Of the United States coupon or
registered bonds of such denominations, not
less than tifty collars, as he may think proper,
to an amount not exceeding 100000, 600, re-
demable in coin at the pleasure of the govern
ment at any time after ten years, and payable
in coin at twenty years from date, and bear
ing interest at the rate of 5per cent perannum,
payable ssmi-annually in coin, and the bond
| thus authorized may be disposed of at the dis
c-etlon Of the secretary under such regulations
\ as he shall prescribe, either in the United
Sta.e3 or elsewhere, at 70. less th5n their par
value for coin, OF they may be exchanged for
any of the outstanding bonds, Of an equal ag-
gregate par value, heretofore issued and
known as tve-twenty bonds, and for no other
/ purpose, and the proceeds 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 six per cent bonds, at par, as may not
be offered for exchange, or to replace such a.
mount Of coin as may have been used for that
purpose
SEC. >. That the secretary of the treasury is
hereby authorized to issue On the credit of
the United States, coupon or registered bonds
b the amount of S400,O00,000, of denomina-
tions not less than $50, as he may think proper
redeomable III coin at the pleasure of the gov
eTnment at any time after fifteen years, and
payable in coin at thirty years from date, and
bearing an interest not exceeding 4 l-2 per
centum in coin; and the bonds authorized by
this section may be disposed Of under such
regulations as the secretary of the treasury
shall prescribe, in the United States and else
where, at not less than par for coin, or they
may be exchanged at par for any of the out
standing obligations OF the government bear
ing higher rate Of intrest in coin; and the
proceeds Of such bonds as may be sold for coin
shall be deposited in the treasury, to bo used
for the redempison of such obligations bear
ing interest in coin as by the terms Of issue are
to replace such coin as may have been used
for that purpose.
SEC. 3. That the Secretary of the Treasury
Is hereby authorized to issue on the credit of |
the United States, from time to time, coupon /
or registered bonds of such denominations |
not less than fifty dollars, as he may think |
proper, to the amount of four hundred million |
dollars, redeemable in coin at the pleasure of |
the government at any time after twenty !
years and payable in coin at forty years from |
date, and bearing interest at the rate of four |
per'csntuTn per annUm payable semi-annua- |
lly in coin, and such bonds may be disposed |
OF, either in the United States or selswhere, 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 obligations of /
the United States outstanding at the date Of |
issue OF such bonds, and in the opinion Of |
the secretary OF the treasury it is thought /
advisable to issue large amount of four per /
cent. bonds for any OF the purposes herein OF
hereinafter recited than would be otherwise |
authorized by this section of this act such fur
ther issues are hereby authorized. provided |
there shall be any increase in the aggregate /
debt OF the United States in consequence of |
any issues authorized by this act.
SEC 4. That the bonds authorized by this
act shall be exempt from all taxation by or
under national, state, municipal or local auth
ority.
SEC. ). That the coupons Of said bonds NAV
be made payable at the treasury of the United |
States, either IN the cities Of London. Paris
Amsterdam or Frankfort, in dollars, or their
equivalent thereof in sterling money French
or on thaleas.
SEc.6. That the secretary of the treacnry is
hereby authorized to appoint such agents in
the United States and Europe as he may
deem Necessary to aid i'll the negotiation of
said bonds, and he may advertise the loan
herein authorized, and the conditions thereof
N such newspapers and journals in this coun-
try and Europe as ne may select for that pur-
pose and a sum not exceeding one per centum
of the bonds herein authorized is hereby ap-
propriated to pay the expense of preparing
securing and disposIlg Of the same.
Sec. Z. That in order to carry into execu-
ton the provisions of the 59th section of an
arucle entitled. "An aGS to authorize the
issue OF United States notes and for the re-
demption or funding of the floating debt of
the United States" approved February 25
1862 relative to the sinking fund, there is here
by appropriated out OF the duties derived
from imported goods the sum of Sl5O,0OO,O0O
annually, which sum- during each fiscal wear.
shall be applied to the payment of the interest
and the reduction OF the principal of the public
debt, and the United States bonds now held
as q sinking fund and the United States bonds
now held IN the treasury shall be Cancelled and
detailed record thereof being first
made in the books of the treasury department
and the bonds hereafter purchased under this
section shall In like manner be cancelled and
and q full and detailed account of
the Implication of the money herein appropriate
ed shall be made by the secretary of the treas
ury to Congress with his annual report, and
the aggregate amount of bonds cancelled and
destroyed shall be stated in the monthly state
ments Of the public debt,
SEC. 8. That On and after the first ofOctober
1870, registered bonds of any denomination
not less than one thousand dollars, issued und-
er the provisions Of this act, and no Others
shall be deposited with the treasurer of the
United States as security for the notes issued
to national banking associations for circulation
under the act entitled. An act to provide a
national currency secured By pledge Of United
States bonds. and to provide for the eircula-
ton and redemption thereof" approved June
Sd, 1854; and all national banking associations
under said act, or any amendment
thereof, are hereby required to deposit bonds
issued under this act as security Tor their cir
culahng. notes within one year from the date
Of the passage of this act IN default of which
1heir right to issue notes for circulation shall
be forfeited, and the Treasurer and Comptrol-
ler OF the Currency shall be authorized and re-
quired to take such measures as may be necess-
ary to call in and destroy their outstanding
circulation, and to return the bonds held as
security therefor to 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, byresolution ofits board of directors
deposit Legal tender notes with the Treasurer
Of the United States to the amount of its out
standing circulation, and take up the bonds
pledged for It's redemption, and provided fur
Jher;. that not more than oHe-third of the
bonds deposited by any bank as such security
shall be OF either OF the classes of bonds here
Dy authorized on which the maximum rate of
interest is liked at Ii or 5per cent, per an
mum.
SEC. 9. That the amount of circulating notes
which any bank may receive from the COM
ptroiler OF the currency, under the provisions
OF section q Of said act, may equal but not
exceed so per centum OF the par value of the
bonds deposited, but shall not exceed the ag-
greSate amount to which such bank may be
entitled under said section.
Sec. 10. That any banking association or
ganized, or to be organized under the national
currency act, and the acts amendatory thereof,
may, upon depositing with the treasurer of the
United States notes IN amount not less than
one hundred thousand dollars to relieve the
equivalent of registered bonds of the United
States OF the kind and description provided
tor by section three of this act, and may deposit
the same as security of circulating notes, and
Chereupon such banking association shall be
entitled to and shall receive circulating notes
upon the terms and conditions, and to the ex-
tent provided III said currency acts, and with
5ut respect to the limitation of the aggregate
condition Of the national currency prescribed
by said acts provided, however, that as the
3lrculoting notes issued under this section, an
equal amount of United States notes shall be
cancelled and destroyed.