Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-02-21
TREASURY NOTES.
Il NET ISSUE PROPOSED BY THE
HOUSE.

HOUSE..
For Redemption of National Bank Gu,
rency and Bonds---Details of the Bill
WASHINGTON, Feb. 19.-The House com
mitee on banking and currency, to-day au
thorized their chairman, Buclner, by vot
of to 8, to report his bill which propose
to substitute for national bank notes q ney
description of treasury notes which shall b.
receivable in payment of custom duties, ant
all claims and demands against the United
States, except obligations made payable il
coin by existing laws, and shall be receivable
at par for four per cent bonds, notes, and TO-
national bank notes. They previously, thi:
morning. heard the Comptroller Of the Cur
rency in an argument against the bill. Tx
contended it's enactment would be an in
fringnent of vested rights, and that The
government has no constitutional power tx
take this action in regard to national banks
while their charters continue in existence.
The following is the full text of the bill:
BE it enacte2 etc.: That as soon as may be
secretary OF the treasury shall cause to be pre-
pared an issue OF treasury notes equal in
amount to the circulation Of national banking
associations on the first day Of February, 1878
being the sum Of $500, 647, 500, which shall be
used in redemption and retirement in the way
hereinafter provided of circulating notes OF
national banks which treasury notes shall be
in the following form: washington, D. c.,
The United States of America are indebted to
the bearer in the sum of - dollars" and
shall be signed by the treasurer of the United
States, and countersigned by the
register of the treasury or
their signaturts be thereto engraved, and shall
contain such devices and superscriptions as the
secretary of the treasury shall direct, and the
denomination of such notes. and the general
slmlHtude thereof shall conform as nearly as
may be to those of the United States notes
commonly known as legal tender notes. They
shall be receivable III payment of all taxes.
customs, excuses, debts and demands 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 ex-
listing law, and shall be received by the secre-
tary OF the treasury at par for per centum
bonds of the United States. authorized to be
issued by an act entitled an act to authorize
the refunding of the national debt approved
July 18th, 1870.
Section 2. Immediately after the treasury
notes provided for in the preceding section
shall be ready for circulation, the secretary of
the treasury shall cause them to be forwarded
to assistant treasurers of the United States at
New York, Boston, Philadelphia, Baltimore,
Cincinnati, Chicago st. Louis and New Or
leans, in amounts proportiOnate to the receipts
and disbursements OF their several offices, with
regulations and instructions to the following
tenor, to-Wit:
First-That assistant treasurcrs snail imme-
diately after the receipt OF such treasury notes,
cease to pay in the disbursement OF public
fUnlG rHnta ~
ing notes OF the national banks then in their
several offices or thereafter received into them
hut shall pay out in the place and to the extent
of such national bank notes, and in substtr-
ton therefor, the treasury notes herein author
lied, until the whole circulating notes of ma
tional banks shall have been retired and assist
ant treasurers may at any time issue such
treasury notes in exchange for bank notes upon
the application OF any person or bank
That the assistant treasurersshall every thirty
days after tho process of retiring national
bank notes shall have been begun as above
directed OF oftener, if the secretary of the
treasury shall SO require, transmit to the
treasurer Of the United States, at Washington
all national bank notes received by them up
shall be received by the treasurer in lcquida-
to the day OF such transmission, which said notes
ton Of the charges against the several assistant
United States treasurcrs on account of treasury
notes as herein provided.
1t shall be the duty Of the treasurer as rapid
ly as notes OF the national banks are received
into his Office from assistant treasurcr's to
cause them to be counted and assorted and the
notes of each association carefully ascertained
and whenever those of any association shall be
ascertaincd to the amount of SIS, OOO or any
multiple of S35,000 such association shall be
notified thereof and shall be entitled to receive
on demand and payment of Il like sum in
legal tender notes, or treasury notes, authorized
by this act, Or in drafts or certificates of deposit
OF the assistant treasurers, or Of such national
banks as may be designated by the Secretary of
the treasury for that purpose its bonds on de-
posit with the treasurer for security of crcula-
ton to the amount of its notes, as soon as as
certained and ratified, and to that extent shall
be discharged from tax on It's circulation and
if any national bank shall fail neglect for a
period OF 60 days after notification and direction
to make payment i'll redemption Of it's bonds
III accordance Herewith, then to. that extent,
interest OH its bonds, bearing interest at the
highest rate, shall cease and be forfeited to the
United States, during the whole period such
failure or neg ect shall continue, and any bank
ing 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-
CURED from time to time, payments are
made by national banks on the withdrawal
OF their bonds OF as treasury notes may be re-
authorized in the first section of this act, to
expend the sum of such receipts either in
treasury notes or legal tender notes, as may be
most expedient, i'll the purchase Of E per cent.
bonds OF the United States, redeemable at the
pleasure OF the government or in the purchase
of gold or silver coin with which to redeem and
pay such bonds.
Any national bank desiring to exchange its six
per centum bonds for treasury notes author
lied by this act, upon application to the treas
urer OF the United States, and upon payment
into the treasury in accordance with sue h regu-
lations as the secretary shall establish of legal
tender notes, OF treasury notes, equal to its
outstanding circulation at the date Of such APP
plication, shall be entitled to receive treasury
notes to the full market value of its six per
centum bonds on deposit with the treasurer for
security of circulation at the time, and in
addition thereto the amount of its accrued in
terest and premium at the market rate. All
banking associations organized under existing
laws with orders to issue circulating notes re-
deemable in coin, shall make monthly deposit
in the treasury OF the United States, in gold
coin or their circulating notes, equal to 5
per centum of their circulation outstanding on
the day OF the passage OF this act, and when an
amount equal to the outstanding circulation of
such gold banks shall have been deposited with
the treasurer in gold coin or in their own cir
culating notes, the bonds of the United States
held by the treasurer to secure the circulating
notes of said gold banks shall be resigned
and delivered at said banks, and therea fter
circulating notes of said banks shall be re-
deemed at the treasury of the United States
Circulating notes shall be issued to any ma
tional banking association after the passage Of
this act but nothing herein contained shall be
construed either to authorize or allow any con-
tracing OF the currencysby reason of it's opera