The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1876-03-24

The following is correct draft of what is
known as the Payne bill which has received
the approval of the democratic caucus as the
best practicable compromise of differing
opinions on the financial question. II was
adopted, March 10, by a vote of 60 to 46,
after protracted debate. 1t provides for an
annual resumption fund in coin equal to
three per cent, of outstanding legal tenders
and requires the national banks to keep step
with the movement of the government by
setting aside three per cent, of their gold
interest on the amount of their circulating
notes. Finally it repeals the resumption
act and removes standing threat of panic
from the statute book. 1t reads rs follows:
A BILL to provide for the gradual resump-
ton of special payments.
BE il enacted, etc, That it shall be the
duty of the secretary Of the treasury dur
ing each and every year, from and after
July 1, 1876, and until the legal tender notes
of the United States shall have appreciated
to par value with gold and shall be con-
vertible into coin an amount equal to three
per ccntum of such legal tender notes out
standing. and from the date OF such CONVEX
tibility rs aforesaid, the amount of coin set
aside and retained as aforesaid shall be held
as resumption fund in respect to said le-
gal tender notes, and shall at no time be
less than thirty per centum OF such outstan-
ding legal tender notes: Provided, howeoer,
that the coin 50 set aside and retained as
above provided shall be counted as part OF
the sinking fund for the purchase or pay
ment of the public dept, as required by sec
ton 1864 of the revised statutes.
SEC. 2. That it shall be the duty of each
national banking association during each
and every year from and after July l, 1876,
and until the full and complete resumption
of the payment in specie Of its circulating
notes. to set aside and retain from the coin
receivable as interest on the bonds deposi-
ted with the Treasurer of the United States
as security for its circulation an amount
equal to three per ccntum of its circulating
notes, issued to such association and not
surrendered, and from the date of its re-
ouHpIioh Vi oPSSic pay hioheo 40 alOlcodiu 1,
the amount of coin to be held and main :
tained as resumption fund shall at no
time be less than 30 per centum of its out =
standing circulation; provided, however
that the coin by this section directed to be
set aside and retained shall be counted as a
part of the lawful money reserve which said
associations are by existing laws required to
maintain.
SEC 8. That so much of section three of
an act entitled ian act to provide for the
resumption of specie payments" approved
January IA, 1875, as requires the secretary
ofthe treasury to redeem legal tender notes
to the amount of so per centum of the sum
of national bank notes issued to any bank
ing association, increasing its capital or cir
culation, or to any association newly organ
lied as provided in said section, and also 50
much of said section three as relates to or
provides for the redemption in coin Of the
United States legal tender notes on and after
January l, 1879, and all other provisions of
law inconsistent with this act are hereby re-
pealed.