The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-02-27
GENERAL TELEGRAMS.
Fall Text OF the Bill Passed by the
House Committee on Ranking and
Currency to Retire the Circulating of
Notes of National Banks.

Notes OF National Banks
WASHINGTON, Feb. 19-The following is a
full text of the bill agreed on by vote OF q
against 2 this morning by the house commit
tee on banking and currency to retire the
circulating of notes of national banks and
for other purposes:
Be it enacted, ETC., That soon as may be
practicabIe after the passage of this act, the
secretary of the treasury SIN all cause to be pre-
pared an issue OF treasury notes equai IN
amount to the circulation of the national
banking associations on the first day OF Feb
ruary, 1878, being the sum of SS26 647,6sO. which
shall be used in redemption and reure-
ment, in q way hereinafter provided, OF the
circulating notes of national banks, which
treasury notes shall be I'm the following form;
s'Washington, ID. G. The United states Oh
America are indie bted to the bearer in the sum
of - dollars" and shall be signed by the
treasurer OF the United States and counter
signed by the register Of the treasury, or their
signatures be thereunto engraved, and shau
contain such devices and superScriptlons as
the secretary of the treasury shall direct, ana
the denomina ions of such notes and general
similitude therto of shall conform as nearly as
may be TO those of the United states note
commonly known as the legal tender note
They shall be receivable In payment OF al
taxes, customs, excuses. q ebts and defnaG Us OF
every kind due TO the United States, and of all
claims and demands against the United states
except for obligations made payable IN coin
by the existing laws, and shall be received by
the secretary OF the treasury at par Tor Tour per
centum bonds Oftne United States authorized
to be issued by an act entitled IAN act to
authorize the refunding of the national debt"
Immediately alter the treasury notes pro-
vided for in the preceding secuon snail be
tfeasury shall cause them to be forwarded to
the assistant treasures of the United States at
New York, Boston, Philadelphia, BALTIMORE,
Cincinnati, On cago, st. Louis and New Or
leans, in amounts proportioned to the receipts
and disbursements of their several offices,
with regulations and instructions to the fol-
/. That the said assistant treaSurers SHALL
immediately after the receipt of such treasury
notes, cease to pay in the disbursements OF the
public funds upon any account whatever
circulating notes of the national banks then In
their several offices, thereafter received into
them, but shall pay out in the place and in
stead of such national bank notes, and in sub
EtitutiOn therefor, the treasury notes herein
authorized. until the whole OF the circulating
notes of the national banks shall have been
retired, and the assistant treaSurerS may AT
any time issue such treasury notes in exchange
for bank notes upon the application of any
person or bank.
2 That the assistant treasurers shall pay
every 30 days, after the process of retiring ma
above directed, or oftener, If the secretary OF
treasury shall req ire; transmit to the
treasurer of the Tlniteu States, at Washington,
all national bank notes received by them up
70 the date Of such transmission, which said
notes shall be received by the treasurer in
liquidation of the charges against the several
assistant treaSuTerS on account or the treasury
notes, as herein provided.
1t shall be the duty of the treasurer as rapid
received into his office from the assistant
tressurers to cause them to be counted and
fully ascertained to the amount of $5,0DO. or
any multiple of 5000. such association shall
be notified thereof and shall be entitled TO
receive upon demand and payment of like
sum in legal tender notes or treasury notes
authorized by this act or in drafts or certth-
Gates of deposit of assistant treasureTs or of
such national banks as may be designated by
the secretary OF The treasury for that purpose,
Its bonds on deposit with the treas urer for Sc
curity of circulation to the amount of its notes
so ascertained and notified, and 10 that extent
shall be discharged from the tax on its circula
ton, and III any nat onal bank shall fail or
neglect TOR a period of 20 days after the notif-
cation above directed to make payment in
redemption of its bonds in accordance there
with, then to that extent the interest on its
bonds, bearing interest at the highest rate,
shall cease and be forfeited to the United
States during the whole Leriod OF such failure
or neglect shall continue, and any banking
association desiring so to do may withdraw
all its bonds on payment into the treasury of
legal tender notes or notes authorized by this
act to the amount of its circulating notes out
standing at the date of such payment.
The secretary of the treasury is hereby re-
quired from time TO time, rs payments are
their bonds or as treasury notes may re
received in exchange for four per
section of this act to expend the sum of such
receipts either in treasury notes or In legal
tender notes, as may be most eXpedient, IN
the purchase OF SIX per cent. bonds of the
United States, redeems BILE at the pleasure of
the government, or in the purchase OF gold OF
silver coin with which to redeem and pay such
bonds.
Any national bank desiring TO exchange
Its six per centum bonds for treasury notes
the treasurer OF the United States, and upon
the payment into the treasury, in acc -rdance
with such regulations as the secretary shall
establish Of legal tender notes or treasury notes
equal to its outs anding rculation at the date
OF such application, shall he entitled TO
receive treasury notes to the full market value
M nor mt do on hnFn Nrrffh
treasurer for security of circulation at the
time and in addition thereto the amount of
accrued interest and premiums at the market
rate.
All banking associations organized under
existing laws with power 10 issue circulating
notes not redeemable in gold coin shall make
monthly deposit in the treasury of the Uni
ted States in gold coin or their own circulating
notes equal 20 D per centum OF their circula-
ton outstanding at the date of the passage of
this act, and when an amount equal to the
outstanding ejaculation Of such gold banks
shall have been deposited with the treasurer
IN gold coin or their own STIMULATING notes, the
bonds of the United states held by the treas
urer to secure the circulating notes of said gold
banks shall be reaSSlgued and delivered to said
banks, and thereafter the circulating notes of
said banks shall be redeemed at the treas
ury OF the United States No circulating
notes shall be issued to any national banking
association afGer the passage of this act, but
nothing herein contained shall be construed
either To authorize rallow any contraction OF
the currency by reason OF its operation, and
should any national bank after It's passage re-
tire its circulation in pursuance of the exist
Ing law the secretary of the treasury is hereby
directed TO issue In the purchase OF six per
centum bonds of the United States the treas
ury notes authorized by this act to the full
amount of the circulation reti ed by such as
ISOLATION, and all national bank notes redeem
ed nm the several provisions of this act
shall be cancelled and destroyed under such
rnles and regulations as the secretary OF the
treasury shall prescribe, and in the
monthly statement Of the condition Of the
public debt made by the secretary he
shall include exhibit of the amount of
treasury notes herein provided for, outStsnd
ing at the date OF such statement, together
with the amount of national bank notes which
up to the same date have been redee med and
destroyed or held for cancellation.
The third sectl n Of an act entitled "An act
for fixing the amount of United States notes.
and providing for the redistribution of
national bang currency, and for other
purposes" approved June 20. 1874, requiring
nationai banks to keep on deposit with the
treasurer of the United States. at Washington,
lawful money equal 10 five per centum of their
circulation, to be held and used for the re-
demption of such circulation. is hereby re-
pealed.
All acts and parts OF acts inconsistent
with the provisions OF this act are hereby re-