Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-04-05
THE NATIONAL BANKS.
Additional Legislation Proposed.
To Dispose of the New LOW-Interest
Bonds.

To Dispose of the New LOW-Interest
Bonds.
WASHINGTON, April 4.-The following
bill was introduced in the House by Mr..
Dawes to-day and referred to the Commit
tee on Ways and Means. 1t embraces the
views OF the Secretary of the Treasury on
the subject, which he explained before the
Committee yesterday:
Be it enacted ETC., that any national
banking association which shall have de-
posted bonds with the Treasurer of the
United States for the security of its circu-
latiOn, in accordance with the provisions Of
the act entitled Gan act to provide a Ma.
tiOnal Currency secured by the pledge Of
United States bonds, and to provide for
the circulation and redemption thereof"
approved on the Sd of June, 1864, and Of
the several acts amendatory thereof, may,
on or before first day of January, 1873, in
lieu of bonds SO deposited, deposit the
bonds authorized by the act approved the
14th of July, 1870, entitled "An act to au-
thorize the refunding of the national debt"
in equal amounts of each of the several
classes Of bonds authorized by said act;
provided however, that any bank which
shall have deposited five per cent. bonds
" I'LL bllC llCdolllCl VI lDC OulLcU DJdJbS
previous to the passage of this act, may sub
scribe for and deposit an equal amount of
said several classes Of bonds for any sum
additional, which may be required as Sc
curity, for the circulation of such banks.
Sec. ?. That if any banking association or
associations shall neglect to deposit the
bonds with The Treasurer of the United
States, agreeably to the first section of this
act other bank associations may be organ
lied in the State where any banking assOci-
alton or associations which have so neglect
ed to make the deposit Of bonds may be
located, and such new associations shall
have all the powers and privileges, and sub
iect to all the duties and liabilities of other
banking associations organized under the
act aforesaid; and it shall be the duty of
the Comptroller Of Currency under regu-
latiOns prescribed by the Secretary of the
Treasury TO caA in the circulation Of bank
ing associations so neglecting to deposit
bond as provided the first section ofthis act
and the circulation so called in shall, on pre-
sentation TO the bank issuing the same, be
redeemed and forthwith returned to the
Comptroller of Currency to be destroyed,
as provided by section "a of the National
Currency Act; and if any bank shall fail to
return said circulating notes for destruction
in thirty days after they shall have been re-
deemed, the bank so in default shall forfeit,
as a penalty therefor, sum equal to 10 per
cent on the amount Of notes redeemed,
which penalty shall be retained by the
Treasurer out of any interest due or to be-
come due on the bonds held by him as Sc
clIritv for the notes of said bank; and the
circulation so called in shall be awarded to
such new banking associations in conform
ity with existing laws.
Sec. 3. That the Secretary OF the Treas
ury be and he is hereby authorized to pro-
vide for the registering and transfer of the
registered bonds issued under the act ap-
proved on the 18th of July, 1870, entitled
IAN act to authorize the refunding Of the
national debit in London, England, andf for
the payment in that city of interest on the
bonds issued under said act.
Sec. 1. That section of the act entitled
can act to authorize the refunding of the
National debt" approved on the 18th of
July, 1870, be amended by striking out all
after the enacting clause and inserting
in lieu thereof the following: payment Of
any bonds heretofore authorized after the
expiration of said several terms of ten,
fifteen and thirty years shall be made in
amounts to be determined from time to
time by the Secretary OF the Treasury at
his discretion, the bonds so to be paid 10 be
distinguished and described by dates and
numbers, Of the time of which intended
payment Or redemption the Secretary of
the Treasury shall give public notice and
the interest of the particular bonds so
selected at any time to be paid shall cease
at the expiration Of three months from
the date of such notice"