Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1870-03-16
The Funding Bill.

After a long debate, indicating so great a
variety Of diverse opinions as to hazard the
bill itself, we have been surprised by the
passage of this bill by the strong vote Of 30
to 10. Our Washington letter gives the sub
stance of the bill, but for the information of
our banks and their stockholders, who are
particularly interested, we give in full the
seventh, eighth and ninth sections &C the bill
as passed, as follows
SIC. I. That ON and after the first day Of
October, 1870, registered bonds of any denomina-
ton not less than 81 900, issued under the pro-
visions Of this act, and others, shall he depos-
tied with the Treasurer of the United States ai
security for the notes issued to the National
Banking Associations for circulation, under an
act entitled T" An act to provide national cur
rency secured by a pledge of the United States
bonds, and 10 provide for the circulation aud TO
demption thereof approved June 3, ls64--and
all the national banking associations organized
under said act, OF any amendment thereof, the
bonds Of which are then redeemable, by their
terms, and as they shall thereafter become re-
deemablc, are hereby authorized to deposit bonds
issued under this act security for their circula-
ton notes within one year from the date of the
passage Of this act in default Of which their
right TO issue notes for circulation shall he for
ieited and the Treasurer and Comptroller of the
| Currency shall be authorized and required TO take
such measures N may be necessary TO call in and
destroy their outstanding circulation and 10 re-
turn the bonds held as security therefor 10 the
association by which they were deposited, in
sums of not less than 81 900, provided that any
such association now in existence may, upon Civ
ing thirty days notice 10 the Comptroller of the
Currency by resolution OF its board of directors,
deposit legal tender notes with the Treasurer OF
| the United States TO the amount Of its outstsnd-
ing circulation and take up the bonds pledged for
| its redemption and provided, further that not
more than one-third Of the bonds deposited by
any bank such security shall be of either Of the
classes of bonds hereby authorized on which the
maximum rate of interest is fixed at four and a
half or five per centum per annum.
! SIC. 3. That the amount of circulating notes
which any bank may receive from the Comptroller
of the Currency under the provisions Of section
twenty-one OF said act, may equal, but not exceed
eighty per centum of the par value of the bonds
deposited, but shall not exceed in the aggregate
the amount of which such hank may 10 entitled
under said section
SIC, 8. That any banking association organized
or TO he organized under the National Currency
act, and the acts amendatory thereof, may, upon
depositing with the United States Treasurer notes
/ 10 any amount not less than $50 900, receive an
equal amount of registered bonds of the United
States Of the kind and description provided for
by section three Of this act, and may deposit the
same as the security for circulation notes and
thereupon such banking association shall DO ell
titled to and shall receive circulating notes upon
terms and conditions and 10 the extent provided
in the said national currency acts, and without re-
spect 10 the limitation Of the aggregate circulation
/ OF national currency prescribed by said acts pro-
yided, however, that as circulating notes are
issued under this section, an equal amount OF
United States notes shall be cancelled and de-
strOVcd