New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-22

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 iftyfour millions of dollars
in notes tor circulation may be issued TO national
banking associations III addition to the three
hundred millions of dollars authorized by.
the twenty second section of the HAet to provide
national currency secured by pledge OF United
States bonds, and to provide for the circulation and
redemption thereof" approved June three, esl-
teen hundred and sixty-four; and the amount of
notes provided shall he furnished TO banking
sociations organized or to be organized i'll those
States and Territories having less than their pro-
portion under the appOrtionnent contemplated 10y
the provisions OF the Act 10 amend an ac1 10 pro.
vide a national currency secured by n pledge OF
United States bonds, and to provide for the circ-
lation and redemption thereof approved March
three, eighteen hundred and sixty five, and the
bonds deposited with the Treasurer of the United
States, TO the additional circulating notes
herein authorized shall be of any description OF
bonds.of the United States bearing interest in coin.
but superintendent of the increased circtIla
ton herein provided for shall be made as soon as
practicable, based upon the census of eighteen hum
tlred and seventy; Provided. that if applications
for the circulation herein authorized shall not be
by banking associations organized on to he organ
lied III States having less than their proper tion 1t
shall he lawful for the Controller OF the Currency
to issue such circulation to banking associations
applying for the in other States OF Territories
having less than their proportion. giving the pre-
ference to s;ch as have the greatest deficiency:
And provided further, that no banking association
hereafter organized shall have circulation in ex-
of i've 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
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 sixty-seven. and
July twenty-five. eighteen hundred aud sixty-eight
not less than the amount Of circulating notes so
reported. and may II necessary Ill order to procure
the presentation of such temporary loan certf-
Gates for redemption, give notice to the holders
thereof, by publication or otherwise, that certain
of said certificates, (Which shall be designated by
number, date, and aniOunt) shall cease to bear in
terest from and after day to be designated in such
notice. and that the certificates so designated shall
no longer he available as any portion OF the lawful
ing association and after the day designated in
such notice interest shall be paid on such ccrti
Gates, and they shall not thereafter be counted as
part of the reserve of any banking association.
SEC g. 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 in the
nineteenth and twentieth sections OF the national
currency act shall be lawful for the Controller of
the Currency to issue to the association making the
same, circ ulating 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 issued
to pay them, upon presentation at the Office OF the
association i'll gold coin OF the United States, and
shall be redeemable upon suc!, sentatiOn 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
gold or silver 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-
deenling its circulating notes in gold coin OF the
United States.
SEC. 5 And be it further enacted, That every as.
sociatiOn organized for tine purpose OF issuing gold
notes provided i'll this act shall be subject all
the requirements and provisions OF the national
currency act except the first clause OF section
twenty-five which limits the circulation OF ia tonal'
banking associations to three hUndred millions of
dollars; the first clause of section trt v-twO which
taken in connection with the preceding section,
would require national banking associations or
gained i'll the city of San Francisco TO redeem
their circulating notes at par in the city of New
York; and the last clause OF section tliirt two.
which requires every national banking association
to receive i'll payment of debts the notes of every
other national banking association at par: Pro-
vided That in applying the provisions and re-
quirements 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. 6. And be it further enacted That to secure
a more equitable distribution of the national bank
ing currency there may ,e issued circulating notes
to banking associations organized in States and
Territories having less than their proportion as
herein set forth and the amount circulation in
this section authorized SHALL under the direction OF
the Secretary of the Treasury, us it may be re-
quired for this purpose, be Withdrawn, as herein
provided, from banking associations organized in
States having circulation exceeding that prov iied
for by the act entitled San 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 sixty-fve but the amount so withdrawn shall
not exceed twenty-five million dollars. The Con-
trOer of the Currency SHALL under the direction of
the Secretary of the Treasury makesa statement
showing the amount of circulation in each State
and Territory and the amount to be retired by
each banking association in accordauc. with
this section, and shall, when such redistribution
of circulation is required, make d reauisiton
for such amount upon such banks commencing
with the banks having circulation exceed
ing one million of dollars in States having
an excess of circulation, and Withdrawing
their circulation in excess Of one million of dollars
and then proceeding pro rata with other banks
having circulation exceeding three hundred
Thousand dollars in States having the largest ex.
OF circulation, and reducing the circulation of
such banks in States having the greatest proper
ton in excess, leaving untsturbed the banks in
States having smaller proper ion 4, until those in
greater excess have been reduced TO the same
grade: and continuing thus to make the rednct ION
provided tor by this act until the full amount of