Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-02-04
Important Bills Introduced In the Sen.
ate Yesterday by Senator Sher-
man, Of Ohio
Act Amendatory OF that of JBly II,
1870, in Relation TO the Increase
of Circulation Of National
Banks.
Bill to Provide for Redemption and Be
Issue Of Legal-Tenders, National
Bank NOtes-Free Banking.
REDEMPTION AND REISSUE OF NOTES -
FREE BANKING.

REDEMPTION AND REISSUE OF NOTES -
FREE BANKING.
WASHINGTON, February 3.-The fol-
lowing is full text OF the bill introduced by
Senator Sherman to provide for the redemp-
tion and reissue OF United States legal-tender
and national bank notes, and for free bank
Ing:
January, 1875, the secretary OF the treasury is
authorized and required - pay on demand at
the office of the assistant treasurer, in the
city OF New fotk, to any holder of UUited
States notes to the amount of one thousand
dollars, or any multiple thereof, in exchange
for such notes, an equal amount Of gold coin
of the United states; or in lieu of coin he
notes an equal amount of coupon or regis
tered bonds of the United States, in
such form as he may prescribe, and OF such
denominations of fifty dollars, or some null
tiple OF that sum, redeenable in coin at the
present standard value at the pleasure of the
United States, after ten years from the date Of
their issue, and bearing interest, payable
quarterly, in such coin at the rate of nve per
cent. per ennum; and the secretary Of the
treasury may reissue the United states notes
SO received, or, II they are cancelled, may Is
sue United States notes to the same
amount, either to the purchaser, or
to redeem the public debt, or to meet
the current payments for public service, and
said bonds, and interest thereon, shall os ex-
empt from the payment of all taxes or duties
of the United States, as well as taxation in
any form by or under state, municipal or 10
cal authority, and said bonds shall have set
forth and expressed upon their face the above
specified conditions, and shall, with their
coupons, be made payable at the treasury of
teh United States.
Section 2. That, from and after the first day
of July next, the limit OF tue aggregate circu-
lation of national banks as now preScribee by
law be repealed, and all banks hereafter or
ganized shall deposit, as security for their cir
culating notes, bonds OF the United States is
sued under this act or under the act entitled
EAn act to authorize refunding OF the debt"
approved July II, 1870.
Section 8. That section 81 of said act be
amended so as to read as follows: THAT every
national banking association shall have on
hand, in lawful money of the United States,
an amount equal to at least twenty-five per
cent. of its deposits, and whenever the lawful
money OF any ASSOCIATION shall be below the
amount OF twenty-five per cent. of its depOS-
its, such association shall not increase its liza
bilities -py making any new loans or dis
counts otherwise than by discounting or
at sight, nor make any dividend of
profits until the required proportion between
the aggregate amount of its deposits and its
lawful money shall be restored; provided that
three-nfths of twenty-five per cent. may con-
sist Of certificates of deposit in the United
States; provided that clearinghouse certifi-
Gates representing specie, or lawful money
specially deposited for the purpose by any
clearing house association shall be deemed to
be lawful money in the possession OF any
association belonging to such clearinghouse,
holding and owning such certificates, and
shall be considered to be a part of the lawful
money which such association is required to
have under the foregoing provisions of this
section, and it shall be competent for the
comptroller of currency to notify any
association whose lawful money re-
serve as aforesaid shall be below the
amount to be kept on hand as aforesaid to
shall fail for thirty days thereafter to make
good its reserve of lawful money, the comp
troller may, with the concurrence of the Sec
retary of the treasury, appoint a receiver to
wind mp the business of such association as
provided by this act.
Section 4. That section "a of said act be
amended so aS to read as follows: That each
national banking association shall redeem its
circulating notes at par at the office OF the as
Slstant treasurer OF the United States, in the
city OF New York, when presented in sums OF
one thousand dollars or any multiple of that
sum, and shall deposit at said Office in New
York, in lawful money OF the United States,
sufncienI for that purpose, receiving certif-
Gates OF deposits therefor; and the assistant
treasurer aforesaid shall apply such lawful
money to the redemption of the circulating
notes OF such BANKS when presented, as afore-
said. If any association shall redeem its
notes, rs aforesaid, the comptroller of the
currency may, upon receiving satisfactory
evidence thereof, appoint 81 receiver in the
manner provided for in this act, to wind up
Its affairs; or he may cause the United States
bonds belonging to such association sufficient
to redeem said notes to be sold as in other
cases. and the proceeds thereof to be applied
to the redemption of notes, provided that
nothing in this section shall relieve any aSsO-
citation from its liability to redeem its circu-
lationS at its own counter at par in
lawful money on demand; and, provided
further, that every association formed or ex-
isting under the provisions of this act shall
take and receive at par, for any debt or LA
b'lity TO said association, any and all notes or
bills issued by any association existing under
and by virtue of this act.
Section 5. That section of an act entitled
an act for the redemption of the three per
cent. temporary loan certificates, and for an
increase of national bank notes, approved
July II, 1870, is hereby repealed.
INCREASE OF CIRCULATION OF Ma
TIONAL BANKS.
WASHINGTON, February 3.-The fol-
lowing isa full text OF the bin introduced in
congress yesterday by Senator Sherman in re-
lation to an increase Of circulation of nation
al banks:
Be q enacted, ETC., That so much OF the act
Of July IL, 1870, as provides that no circula-
ton shall be withdrawn under the provisions
of section six of said act until after the fifty
four million dollars, granted in section one of
said act shall have been taken up, is hereby
repealed, and it shall be the duty of the comp
trolIer OF currency, under the direction of the
forthwith to carry into execution the provi-
sions of section six of said act and to enable
him to do so he is hereby authorized aud re-
Quired, from time to time, as needed for the
execution OF said section, to make requisitions
upon each of the national banks described
in said section, organized in the States hsv-
ing excess of circulation, to withdraw and re-
turn 50 much OF their circulation as by said
act may be apportioned to be Withdrawn
from them; or, in lieu thereof, to deposit in
lawful money suficient to redeem such
and upon the return of the circu-
lation required, on the deposit of lawful
money, as herein provided, are the appro-
pirate amount of bonds held to secure the cir /
culation of such association, as shall make
such returns or deposit, shall be surrendered
to it.
Section 2. That upon the failure of national |
banks, upon which requisttion fOrcirculattOn |
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 re- |
qutred, within thirty days, the Imptroller of !
4 Gh a al E1rV
vided in section 49 of the national cur |
rency act of June 3, 1854, the bonds |
circulation of the association or associations /
which shall so fail, to an amount sufficient to /
redeem the circulation required OF such aslo- |
citation or associations, and with the proceeds, |
which shall be deposited in the United States |
treasury, SO much Of the circulation of such |
association or associations shall be redeemed, /
and if there be any excess of the !
proceeds over the amount required for such /
redemption, it shall be returned to the asso-
ciatton or associations whose bonds shall have 1
been sold. It would be the duty of the /
treasurer and aSsistant-treagurerS of designat- /
ed repositories, and national bank deposit
ortes of the United States, who shall be kept /
informed by the comptroller of currency of |
such associations as shall fail to return its
or to deposit lawful money as
required; to assert and return 10 the treasury
the rates OF the associations as they shall 1
come into their hands, until the amount re-
quired be redeemed.
Section g. That from and afler the passage
Of this act it shall be lawful for the cofnptrol-
Ter Of currency to issue circulating notes in
manner and proportion now provid-
ed by law to associations organized,
Or to be organized, in those STATES and
Territories having less tkan their proportion 1
Of circulation under an appOrti9nment |
made on the basis of population and of wealth |
as shown by the returns of the census Of 1870
provided that the whole amount of eircuIa-
ton issued TO such banking associations, and
and redeemed from such banking
under the provisions of this act
shall not exceed twenty-five million dollars,
and that such circulation shall from time to
lime be Withdrawn and redeemed only as III
shall be necessary to supply the banks in
hose States having less than thelr spportion-