The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1874-04-18
The Currency Hill.


a vote of 129 to 116. The following is
the substance Of the bill:
Section l provides that section 81 of
the National Currency act be so amend
ed that the amount of money the banks
are reGdired to keep on hand shall be
determined by the amount of deposits,
aud that they shall not hereafter be re-
quired to keep on hand any money
whatever by reason of the amount of
their respective circulations.
Sec. 2 repeals section % of the said
act and the several amendments thereto,
so far as they restrict the amount of
notes for circulation. 1t also repeats
the second proyiso in section of the
act to provide for the redemption OF
the three per cent. temporary loan GER
tiGcates. and the amendment to the
National Currency act, approved March
3, 1865. Section 81 of the original act
is re-enacted. ...
Sec. 3 requires each national bank to
keep on deposit in the Treasury of the
United States in lawful money, sum
equal to 3 per cent. of it circulation,
to be held and used only for the redemp-
tion of such circulation, and when such
circulating notes shall be presentedfor
redemption in sums of 81 900, or any
multiple thereof, to the Treasurer, or
any Assistant Treasurer of the United
States, the same shall be redee med in
United States notes. All notes so re-
deemed shall be charged by the Comp
troller of the Currency to the respective
associations issuing the same and, he
shall notify them severaily on the first
day of each north, or oftener, at his
discretion, of the amount of such re-
demption, whereupon each ASSOCIATION
so notified shall forthwith deposit with
the Treasurer of the United States a
sum in United States notes equal to the
amount Of its circulating notes so re-
deemed. And when such redemption
shall have been so reimbursed, the cir.
culating notes so redeemed, or if WON,
mutilated, or defaced, new notes in
stead shall be forwarded to the respec.
tive associations provided, that each of
said associations shall reimburse to the
Treasury the costs of redemption and
of supplying new notes in the place of
those redeemed: and the associations
hereafter organized shall also severally
reimburse to the Treasury the costs of
engraving and printing their circulated
notes, and provides further that the eD-
tire amount of United States notes out
standing and in circulation at any one
time shall not exceed the sum of four
hundred million dollars now authorized
by existing laws.
Sec. 4 provides that any bank desir-
ing to withdraY its circulating notes in
whole or iii part may, upon the deposit
of lawful money in sums of not less
than 10000 with the Treasurer of the
United States, withdraw proportionate
amount of bonds deposited in pledge
for such circulation, and he shall re-
deem. cancel, and destroy an amount of
the circulating notes of such bank equal
to the amount issued upon such bonds.
Sec. 5. That sections 3l-32 of the said
act be amended by requiring that each
of the said associations shall keep its
lawful money reserves within its own
vaults at the place where its operations
Of discount and deposits are carried on,
and all the provisions of the said associ-
ANlOho ~ hCNp uuJ Poibioh Va ITO to"iul
money reserves elsewhere than in its
own vaults, or requiring or permitting
the redemption OF its circulating notes
elsewher than at its own counter, ex-
cept as provided for in this act, are
hereby repealed.
Sec. 6. That upon all circulating notes
hereafter issued, or hereafter TO be is
| sued, whenever the same shall come
into the Treasury in payment or depos-
it for redemption or otherwise, there
shall be printed under such rules and
regulations as the Secretary of the Trea-
sury may prescribe, the charter num-
bers of the associations by which they
are severally issued.
The Senate bill was then taken up
and after considerable discussion, Mr.
Maynard moved the previous question
on the passage of the Senate bill, and il
was seconded, 12l to 80. The bill was
then pass ed, yeas 14O, nays 1902. The
text of the bin is as follows:
That the maximum amount of United
States notes is hereby fixed at $780,
100000.
Sec. 2.-That 4G, 900, 900 in notes fol
circulation in addition TO such circulation
now allowed by law shall be issued t,
National Banking Associations now or
ganized, and which may be organizes
hereafter, and such increased circulation
shall be distributed among the ssvera
States as provided in section l of tn
act entitled, "An act to provide for tn
redemption of the three per centur
temporary loan certificates, and for al
increase OF national bank notes" Ap
proved July II, 1870. And each ma
tional banking association now organ
ICED, or hereafter to be organized, sha
keep and maintain rs part of its re
serve required by laws One-fourth pa.
, OF the coin received by 1t as interest o
bonds of the United States deposited a
security for circulating notes or GOV
, ernment deposits, and that hereafte
only one-fourth of the reserve now pre-
scribed by law for national banking as
, soclations shall consist of balances du
, to an association. available for the II
! demption of its circulating notes, frOI
/ associations in the cities Of redemption