New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-23
IPUBLC-No l61 r-I FL
AN ACT to provide for the redemption of the three

AN ACT to provide for the redemption Of the three
per cent temporary loan certificates and for an
increase of national bank notes.
Be it enacted by the Senate and House of Repre-
sentatives OF the United States Of America in Con-
gress assembled, That fiftyfOur millions of dollars
in notes Tor circulation may he issued to national
banking associations in addition to the three
hundred millions of dollars authorized by
the uwentysecOnd section OF the Act 10 provide a
States bonds and to provide for the circulation and
redemption thereof" approved june three, elsh-
teen hundred and sxty-four; and the amount of
notes provided shall be furnished to banking as
s0eiations organized or to be organized i'll those
States and Territories having less than their pro-
portion under the apportonment contemplated by
the prov siOns OF the "Aet to amend act to pro.
vide national currency secured by % pledge of
United States bonds, and to provide 1Or the cireu-
lation and redemption thereof" approved March
three eighteen hundred and sixty-ive. and the
bonds deposited with the Treasurer OF the United
States, to secure the additional circulating notes
herein authorized shall be of any description OF
bonds of the United States bearing interest in coin,
hut Il appOrtionment of the increased circula-
ton herein provided for shall be made as as
practicable based upon the census OF eighteen hun
dred and seventy: Provided, that if applications
for the circulation herein authorized shall not he
made within year after the passage OF this act,
by banking associations organized or 20 be organ
lied in States having less than their proper ton, 1t
shall be lawful for the Controller of The Currency
to Issue such circulation to banking associations
applying for the same in other States or Territories
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 IL eX-
cess of five hundred thousand dollars.
SEC. q 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 Controller of the Cur
rency to report to the Secretary of the Treasury
the amount OF circulating notes issued, under the
provisions of the preceding section, 10 national
banking associations during the previous month
whereupon the Secretary OF the Treasury shall re.
deem and cancel amount of the three per centum
temporary loan certificates issued under the acts OF
March two, eighteen hundred and sxty-seven, and
July twenty five, eighteen hundred and siNtyelght,
not less than the amount of circulating notes SO
reported, and may. necessary, in order TO procure
the presentation of such temporary loan certiti-
Gates for redemption, give notice to the holders
of said certificates (which shall be designated by
number date. and amount shall cease to bear in.
terest from and after day to be designated in such
notice and that the certificates SO grated shall
longer be available as any portion Of the lawful
money reserve in possession OF any national bank
ing association and after the day designated III
such notice interest shall be paid such certin
Gates, and they shall not thereafter be counted as
a part of the reserve Of any banking association.
SEC. B. And be it further enacted, That upon the
deposit OF any United States bonds, bearing inter
est payable in gold, with the Treasurer OF the
United States, in the manner prescribed i'll the
nineteenth and twentieth sections OF the national
currency act i. shall be lawful for the Controller OF
the Currency to issue to the association the
same, circulating notes Of different denominations
not less than five dollars not exceeding i'll amount
eighty per centum of the par value of the bonds de-
posted, which notes shall bear upon 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 he redeeniabe upon such presentation IN such
coin: Provided, That no banking association organ.
lied under this section shall have circulation in
excess OF one million of dollars.
SEC. L. 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
five per centum of its outstanding circulation in
gold or silver coin of the United States, and shall
roc n
notes of every other such banking association
which at the time of such payments shall he re-
deeming its circulating notes i'll gold coin OF the
SEC s And he it further enacted, That every as
sociation organized for the purpose Of issuing gold
notes provided III this act shall BE- subject 10 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 tlirty-two, which
taken i'll connection with the preceding section
would require national banking associations or
gaIiized in the city of San Francisco to redeem
their circulating notes at par in the city OF New
York; and the last clause of section thirty-two
which requires every national banking assOciat ion
to receive in payment of debts the notes Of every
other national banking association at par: Pro
viled, That in applying the provisions and re
quireInents of said to the banking associations
herein provided tor the terms lawful money" aud
lawful money Of the United States shall be he'd
and construed 10 mean gold OR silver coin OF tile
United States.
/ SEC g. And he it further enacted. That to secure
equitable distribution OF tine national bank
ing currency there may be issued circulating note:
TO banking associations organized n states aic
Territories having less than their proportion as
herein set forth. And the amount of circulation il
this section authorized shall under The direction
the Secretary of the Treasury, as it may De re
quIred for this purpose, he withdrawn, as nerelr
provided. from banking associations organized il
States having circulation exceeding that provided
for by the act entitled IAN act TO amend an act en-
titled An act to provide for national banking cur
rency secured by pledge of United STATES bonds
and to provide for the circulation and redemption
thereof" approved March three, eighteen hundred
and sXty-tive, but the amount SO withdrawn shal
not exceed twenty-five million dollars. The Con
trOller of the Currency SHALL under the direction
the Secretary of the Treasury, nlakesa statemen,
showing the amount of circulation IN each State
and Territory, and the amount to be retired by
each banking association in accordance witt
this section, and shall, when such redistribution
of circulation is required. make a re9uisitior
for such amount upon such banks, commcncins
with the banks having a circulation exceed
ing one million of dollars in States havin,
an excess of circulation, and withdrawing
their circulation in excess of one million of dollars
and then proceeding pro rata with other bank.
having circulation exceeding three hundred
thousand dollars in States having the largest ex
Of circulation, and reducing the circulation O.
such banks in States having the greatest proper
ton in excess, leaving undisturbed the banks il
States having smaller proportion, until those il
greater excess have been reduced to the same
grade. and continuing thus to make the reduction