Knoxville journal. [volume] (Knoxville, Iowa) 1874-1986, 1874-07-02
The Compromise Currency Bill.

SECTION l. The act emitted An act to provide
national currency, secured by a pledge oil
United States bonds. and TO provide for the cir.
cnlafion and redemption thereof" approved June
g. 1864, shall be hereafter known ar the National
Bank act.
SEC. g. That Section 81 Of the National Bank
act be 70 amended that the several associations
therein provided for shall not hereafter be re-
auired to keep on hand any amonnt OF money
whatever by Of the amount OF their respect
i've circulafions; but the moneys required by said
section 10 be kept at all times on hand shall be
determined by the amount of deposits in all re-
spects provided for in the said section.
SEC. 3. That every association organized or to
be organized under the provisions Of the said act
and Of the several acts amendatory thereon, shall
az all times keep and have on deposit in the
Treasury Of the United ststes, In lawful money Of
the Uaiied States, sum equal 10 per centum Of
It's circulation, to be held and used for the re-
demption Of such circulation which sum shall be
counted as part Of its lawful reserve, as pro-
yided In Sec. z Of this act; and when the eireu-
lating notes Of any such association assorted. or
unassorted, shall be presented for redemption IN
sums Of 81, 900 or any multiple thereof 70 the
Treasurer OF the United States, the same shall be
redeemed In United States notes. All notes so
redeemed shall be charged by the Treasurer OF the
United States 10 the respective associations ssu-
ing the same, and he shall notify them seyerally
on the first day Of each month or oftener, at his
discretion, OF the amount Of such redemptions;
and whenever such redemptions of any associa-
ton shall amount to the sum OF $500 such asso-
citation so notified shall forthwith deposit with
the Treasurer Of the United States notes equal 10
the amount Of its circulating notes so redeemed; ;
and all notes of National Banks worn, defaced,
mutilated, otherwise unfit for circulation snail
when received by any Assistant Treasurer, or at
any designated depository OF the United States.
be forwarded 10 the Treasurer OF the United States
for redemption, provided herein; and when
such redemptions have been so reimbursed the
circulating notes so redeemed shall be forwarded
10 the respective associations by which they
INITIATED defaced, or rendered otherwise unfit
for Gse, they shall be forwarded to the Comptrol-
Ter Of the Currency and destroyed and replaced as
now provided by law: ProDided, That each Of
said associations shall reimburse TO the Treasury
the charges for transportation and the costs for
asserting such notes, and the associations here
after organized shall also generally reimburse to
the Treasury the cost OF engraving such plates as
shall be ordered by each association respectively
aud the amount assessed apon each association
shall be IN proportion to the circulation
redeemed, and be charged to the fund on de-
post with the Treasurer: And progidsd further,
That much of Sec. 32 of said National Bank
act recognizing or permitting the redemption OF
It's circulating notes elsewhere than at It's own
counter, except provided for in this section IL
hereby repealed.
SEC. A. That any association organized under
this act or any of the acts to which this IL an
amendment desiring to withdraw Its circulating
notes, In whole or In part, may, upon the deposit
Of lawful money with the Treasurer of the United
States In sums Of not less than $1,000, take up the
bonds which said association has on deposit with
the Treasurer for the security of such circulating
notes, which bonds shall be assigned to the banks
in the manner specified in the nineteenth
section of the National Bank act, and the
outstanding notes of said association to an
amount equal to the legal-tender notes deposited
shall be redeemed at the Treasury of the United
States and destroyed now provided by law:
Fyouided, That the amount Of the bonds on de-
pOsit for circulation shall not be reduced below
$4,000
SEC. 5. That the Comptroller of the Currency
shall under such rules and regulations az the
Secretary of the Treasury may prescribe, cause
the charter number of the association TO be printed
upon all National Bank notes which may be here
after issued by him.
SEC. q. That the amount of the United States
notes outstanding and to be issued as part of
the circulating medium shall not exceed the
sum of S3S2, 10000, which said sum shall appear
in each monthly statement Of the public debt,
and no part thereof shall be held or used as
reserve.
SEC. z. That so much of the act entitled San
act to provide for the redemption of the per
centum temporary loan certificates and for
increase of National Bank notes" as provided
that no circulation shall be Withdrawn under the
provisions OF Sec. of said act until after the S54,
100000 granted in Sec. of said act shall have
been taken up IL hereby repealed and it shall be
the duty of the ComptroQer of the Currency, I'M
der the direction Of the Secretary of the Treasury,
To proceed forthwith, and he Is hereby authorized
and required, from time to time, a. application
shall be duly made therefor. and until the
full amount OF the $o4,0Oo0OO shall be Withdrawn,
to makeDa requisition on each Of the Nationa-
Banks described in said section. and In the man
ner therein provided organized In States having
All excess OF circulation, to withdraw and return
much of this circulation by said act may be
apportioned 10 be Withdrawn from them, or, in
lieu thereof, 10 deposit In the Treasury Of the
United States lawful money sufficient to redeem
such circulation, and upon the return OF the Cir
cuation required, or the deposit of lawful money.
AZ herein provided, prop0rti0nate amount of the
bonds held to secure the circulation Of such
citation az shall make such return or deposit shall
be surrendered to IL.
SEC. g. That upon the failure of the National
Banks npon which acquisitions for circulation
shall be made, or of any of them, to return the
amount required, or to deposit in the Treasury
lawful money to redeem the circulation required,
within thirty days, the Comptroller Of the Cur
rency shall at once sell, provided in Sec. 40 of
the National Currency act, approved June 3,
1854, bonds held to secure the redemption of the
circulation of the association or associations
which shall so fail, to an amount sufficient to re-
deem the circulation required of such association
or associations, and with the proceeds, which
shall be deposited in the Treasury of the United
States, much of the circulation of said associ-
alton or associations shall be redeemed as will
equal the amount required and not re-
turned, and II there be any excess or proceeds
over the amount required for such redemption Ii
shall be returned to the association or associa-
tons whose bonds shall have been sold; and IL
shall be the duty Of the Treasurer, Assistant
Treasurers, designated repositories and National
Bank Repositories Of the United States, who
shall be kept informed by the Comptroller Of the
Currency OF such associations as shall fail to re-
turn circulation as required to assert and return
to the Treasurer for redemption the notes of such
the amount required shall be redeemed, and in
like manner To assert and return TO the Treasury
for redemption the notes OF such National Banks
as have failed or gone into voluntary liquidation,
for the purpose of winding up the affairs of such
as shall hereafter fail or go into liquidation.
SEC. o. That from and after the passage Of this
act II shall be lawful for the Comptroller Of the
Currency, and he Is hereby ordered, to Issue cir
culating notes without delay, as applications
therefor are made not TO exceed the sum OF
S55 10000 to associations organized or to be or
ganizcd, In those States and Territories having
Iess than their proportion Of circulation under an
apportionment made on the basis of population
and OF wealth AZ shown by the returns of the cen
Of 1870, and every association hereafter organ
lied shall be subject to and be governed by the
rules, restrictions and limitations. and possess
the rights, privileges and franchises, here
after TO be prescribed by law to national banking
associations, with the same power to
amend, alter and repeal provided by the
National Bank act: PToridsd. That the whole
amount of circulation withdrawn and redeemed
from the banks trapsacting business shall not ex-
ceed 900 600 and that such circulation shall be
Withdrawn aud redeemed Ms shall be necessary to
supply the circulation previously issued TO the
banks In those States having less than their ap-
portionment: dnd prortded, further, That not
more than 430,0O0O6O shall be withdrawn and re-
deemed M herein contemplated, during the fiscal
year ending June 30, 1875.
The title of the bill is amended to read
as follows:
IAN act to fix the amount OF United States
notes, provide for the redistribution of the Ma
tional Bank currency, and for other purposes"