Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-03-24

IMPORTANT FINANCIAL MEASURABLE the
Senate yesterday, Mr. Sherman, from the Com
mittee on Finance, reported the bill to provide
for the redemption and reissue of United States
notes and for free banking. 1t fixes the max
imum limit of Cnited States notes at $3.50 OOO 400
at which amount il shall remain until reduced
as provided in the bill.
Sec. 1. That on the first of January, 1876,
the Secretary of the Treasury is author
lied and required to pay on demand to any
holder OF the United States to the amount of
s1,COO, or any multiple thereof, in exchange fer
such notes, an equal amount OF the gold coin of
the United States or in lieu OF coin he nav at
his option, issue in exchange for said notes an
equal amount OF coupon or registered bonds of
the United States, OF denomination OF fifty dol
lars, or some multiple OF that sum, redeemable
IN coin OF the present standard value, at the
pleasure OF the United States, after ten years
frUm the date of their issue and bearing inter-
est, payable quarterly IN such coin, at the rate
OF i've per centum per annuR. And the Sec
IeIaIy OF the &reasury may reissue the United
states notes 20 received. or, if they are can
celed, may Issue United States notes to the
same amount, either TO purchase OF redeem the
pubic debt, or to meet the current payments
LOT the public service. And the said bonds, and
the interest thereon, shall be exempt from the
payment OF all taxes or duties.
Sec. 3. The national banking association NAV
be organized In any state or territory, including
the District of Columbia, having a less propore
ton of national bank circulation eduaI 10 ina
OF the state of New York, according to the an
portiOnment made upon the basis OF population
anu Weditn Dy the annual report OF the control
Ter OF the currency for 1873 until each state and
territory and said District, respectively, has an
amount OF such bank circulation equal TO such
proportion of notes then outstanding in the state
OF New York; and all banks organized under
this section shall be subject to, and be gov
erned by, the rules, restrictions, and limitations
ana possesses the rights, privileges, and fran
ehises, now, or hereafter to be, prescribed by
law as TO national banking associations.
Sec. 4. That within thirty DAYS after circu-
latlng notes TO the amount Of ore million dol
lars shall be issued to national banking assoca-
Ions under the preceding section, il shall be the
Outy OF the Secretary OF the Treasury to retire
an amount OF United States notes equal to sew
enty per centum of the circulating notes 40
issued, which shall be in further reducrion OF
the volume OF s3s2 600 600 fixed by the preced-
ing section; and such reduction shall Continue
until the aggregate amount of United St1tes
notes outstanding shall be IS .0OO, OOO And for
that purpose he IL authorized to issue ana sail
after ten days notice Of the time and place of
sale, q sufficient OF the bonds of the JTnited
states. OF the character and description pre-
scribed in the second section of this act for
United States notes to be then retired and can
Celled.
Sec. 5. That each national banking associa-
ton now organized or hereafter to be organized
shall keep and maintain as part of ITS reserve
required by law one-fourth part OF the coin re-
ceiyed by II as interest on bonds Of the United
States deposited as security for circulating
notes or government deposits; and that hereaf-
ter only one-fourth of the reserve now pre-
scriotd by law for national banking associa-
lions shall consist Of balances due to an associa-
lating notes from associations in cities of re-
compton, and upon which balances no interest
shall be paid.
See. 6. That nothing in this act shall be con-
strued 10 authorize any increase In the public
debt Of the United States.