New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-09-27
IPUBLIC-No. l61.I
AN ACT to provide for the redemption OF the thre
per cen: temporary loan certificates and for al

per cen: temporary loan certificates, and for
increase of national bank notes.
Be il enacted by the Senate and House of Repre-
sentatves of the United States Of America in Con
gress assembled. That nfTyfOur millions of dollars
in notes for circulation may he issued to national
banking associations in addition to the three
the twentysecond section of the ''Aet TO provide
national currency secured by apledse of United
States bonus. anu to provide for the circulation and
redemption thereof approved June three, elsh-
teen hundred and siyty-fcur: and the amount of
notes provided shall be furnished TO banking
socl3uons organized or TO be organized in those
States and Territories having less than their pro-
portion under the apportionment contemplated by
the provisions of the Act to amend an act to pro
vide anational currency secured by pledge of
United States bonds, and 10 provide for the crcu-
lation and redemption thereof" approved March
three eighteen hundred and siyty-tive, 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
Jof the United States bearing interest in COIN
but anew appOrtioument of the increased circula-
ton herein provided for shall be made as
practicable, based upon the census of eighteen hun
bred and seventy: Provided that if applications
for the circulation herein authorized shall not he
madewthin one year after the passage of this act,
by banking associations organized or to be organ
lied in States having less than their proper ton, it
shall be lawful for the Controller of the Currency
TO sne such circulation to banking associations
applying Tor the same i'll 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 associa ion
hereafter organized shall have circulation in
cess Of five hundred thousand dollars.
SEC ?. And be it further enacted. That at the
end d each month after the passage OF this act Ii
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
prov iions of the preceding section to national
banking associations during the previous month;
whersupon the Secretary OF the Treasury shall re-
demand cancel an 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 and weight
not Rss than the amount OF circulating notes
reported, and may II necessary III order TO procure
the Iresentation of such temporary loan certiti-
Gates for redemption give notice to the holders
Thereof, by publication otherwise, that certain
of sad certificates, (Which shall be designated by
numsr date. and amount) shall cease to bear in
teres from and after day to be designated in such
notice. and that the certificates designated shall
no logger be available as any portion of the lawful
money reserve III possession of any national bank
ing association, and after the day designated in
suchnotice interest snail be paid such certifi-
Gates and they shall not thereafter be counted as
a pant of tie reserve Of any banking association.
SEC 3. And be it further enacted That upon the
depoEt of any United States bonds bearing inter
est piyable in gold, with the Treasurer of the
United States, i'll the manner prescribed in the
nine Renth and twentieth sections of the national
currency act it shall be lawful for the Controller OF
the Currency to issue to the association king the
same circulating notes OF different denominations
not l@s than five dollars, not exceeding in amount
eighy 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 pF them. upon presentation at the Office of the
association in gold coin of the United States, and
shallbe redeemable upon such presentation in such
eoin:Provided, That no banking association organ.
lied lIder this section shall have circulation in
excess OF one million of dollars.
So. 4. And be it further enacted That every
national banking association formed under the
provisions OF the preceding section Of this act
shallat all times keep hand not les than twenty.
FIVE per centum of its outstanding circulation in
gold or silver coin of the United States, aud shaa
receive at par in the payment of debts the gold
Ii N thar howl
whial at the time of such payments shall be re-
deening its circulating notes in gold coin OF the
JJnird States.
SIC. 5. And he it further enacted That every as.
sOcation organized for the purpose of issuing gold
nots as provided i'll this act shall lie subject to all
the requirements and PROVISIONS of the national
currency act except the first clause of section
twenty-five, which limits the circulation of national
baking associations to three hundred millions of
dollars the hlst clause of section thirty-two which
taltn IN connection with the preceding section
would require national banking associations or
gaiized IN the city of San Francisco to redeem
Their elrculatlnS notes at par in the city of New
YoIk; and the last clause OF section thirtv-t
which requires every national banking association
to ecelve no payment of debts the notes OF every
OthsT national banking association at par: Pro-
vIdtd. mat IN applying the provisions and
quiemeh1s OF said act to the banking associations
herdr provided for the terms lawful money" and
"laytul money Of the United States" shall he held
and construed to mean gold silver coin OF the
Unt.d States.
SEE. g. AID be it further enacted That to secure
ing Currency there may be issued circulating notes
to banking associations organized in States and
Territories having less than their proportion as
herel1 SET forth. And the amount of circulation in
this seton authorized shall under the direction Of
the secretary OF the Treasury, as i. may be
qulrea Ior TINS purpose, lie withdrawn, as herein
proVided, from banking associations organized in
States having circulation exceeding that provided
for by the act entitled An act 70 amend an act ell
titled An act to provide tor a national banking cur
rency secured by pledge of United States bonds
and to provide Tor the circulation and redemption
thereof" approved March three eighteen hundred
and sixty lye, but the amount so withdrawn shall
not exceed twenty five million dollars. The Con
troler OF the Currency shall under the direction of
the secretary OF the Treasury, make "a statement
showing the amount OF circulation in each State
and Territory, and the amount to be retired by
each banking association ia accordance with
this SECTION and shall, when such redistribution
of circulation is required. make a requisition
for luch 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
Transportation IN excess of million of dollars
and then proceeding pro rata with other banks
having circulation exceeding three hundred
thousand dollars in States having the largest ex.
cess OF circulation and reducing the circulation of
such banks IN States having the greatest proper.
ton in excess, leaving undisturbed the banks in
States having smaller proportion, until those in
greater excess have been reduced to the same
grade. and continuing thus to make the reduction
provided for by this act until the full amount of