New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-30
(PuBLrC-No. l61.l
AN ACT to provide for the redemption Of the thre
per cent temporary loan certificates, and for q

Approved July H. 1870.
(PrBLrc-No. l61.I
AN ACT to provide for the redemption Of the three
per cent temporary loan certincates, and for an
increase OF national bank notes.
Be it enacted by the Senate and House of Repre-
sentatves of the United States of America in Con-
gress assembled That fftyfO millions of dollars
in notes for circulation may be issued to national
hundred millions of dollars authorized by
the twenty-second section of tie "Act to provide
national currency secured by a.pedse OF United
States bonds, and to provide for the circulation and
redemption thereof" approved June three, eigil-
teen Hundred and sixty four; and the amount of
notes so provided shall be furnished banking
sOciatipns organized or to be organized in those
States and Territories having less than their pro-
portion under the superintendent contemplated by
the provisions Of the Act to amend an act to pro-
vide a national currency secured by pledge OF
United States bonds. and to provide for the circu
,ation and redempti9n thereof approved March s
bonds deposited with the Treasurer of the United
States to secure the additional circulating notes
herein authorized shall be OF any description of
bondstof the United States bearing interest CON-
but a new apportionment of the increased circula
ton herein provided for shall be made as soon as
practicable, based upon the census of eighteen hun
dred and seventy: Provided, that if applications
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 organ
lied i States having less than their proper ton it
shall be lawful for the Controller of the Currency
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 a circulation in
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 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, to national
banking associations during the previous month;
whereupon the Secretary of the Treasury shall re-
daQyy, nv nrnt Oft no tbrao
temporary loan certificates issued under the acts of
March two, eighteen hundred and sixty-seven, and
July tweutyiv eighteen hundred and sixty eight,
not less than the amount of circulating notes so
reported and may, if necessary in order to procure
the presentation of such temporary loan certii
cate4 for redemption, give notice to the holders
thereof, by publication or otherwise, that certain
of said certificates, (which shall be designated by
mum per date, and amount) shall cease to bear in.
tered from and after day be designated in such
nOti&e, and that the certificates designated shall
no longer be available as any portion of the lawful
ing association, and after the day designated in
such notice no interest shall be paid such certii-
Gates and they shall not thereafter be 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 in gold, with the Treasurer of the
Unired States, in the manner prescribed in the
nineteenth and twentieth sections of the national
currency act, it shall be lawful for the Controller of
the Currency to issue the association making the
same circulating notes 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
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 aud
shall be redeemable 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. 4. And he it further enacted That every
ma tional banking association formed under the
provisions of the preceding section of this act
shall at all times keep hand les than twenty
Is Ucr pnl ati IA,
gold or silver coin of the United States, aud shall
receive at par in the payment OF debts the gold
nO1es OF every other such banking association
which at the time of such payments shall be
defining its circulating notes in geld coin of the
United States.
SEC. 5 And be it further enacted, That every as
ISOLATION organized for the purpose of issuing gold
notes as provided i'll this act shall be subject to all
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 thirytwO which
taken in connection with the preceding section
would require national banking associations or
gahized i'll the city of San Francisco to redeem
thtir circulating notes at par in the city of New
York; and the last clause of section tIiirty-twO
which requires every national banking association
tOrecelve IN payment OF debts the notes of every
other national banking association at par Pro-
vited, That in applying the provisions. and re-
herein provided for the terms lawful money" and
"lhwful money of the United States" shall be held
and construed to mean gold or silver coin of the
SEC 6. And be it further enacted That to secure
more equitable distribution of the national bank
ing currency there may be issued circulating notes
td banking associations organized in States and
Territories having less than their proportion as
herein set forth And the amount of circulation in
ts section authorized shall under the direction of
tile Secretary Of the Treasury, as 1t may be re-
qjlired 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-
Titled An act to provide for national banking cur
rtncy secured by pledge of United States bonds
aud to provide for the circulation and REDEEM ptjou
thereof" approved March three, eighteen hundred
ahd sixty-five, but the amount so withdrawn shall
MOT exceed twenty five million dollars. The Con
ttoer OF the Currency shall, under the direction of
the Secretary OF the Treasury make "a statement
showing the amount of circulation in each State
end 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 requisition
for such amount upon such banks, commencing
With the banks having a circulation exceed
ing one million of dollars in States having
an excess of circulation. and withdrawing
tnelr circulation in excess of million OF dollars
anu then proceeding pro rata with other banks
HaVnS circulation exceeding three hundred
Thousand dollars in States having the largest ex.
fess OF circulation, and reducing the circulation of
puen DanAs IN States having the greatest proper
E .on II excess, leaving undisturbed the banks in
otates having smaller proportion, until those in
sreSter excess have been reduced to the same
Eta0e ana continuing thus to make the reduction
provided Tor BY this act until the full amount Of
Il n Ys1iI1i haro L.