The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-20
A NEW NATIONAL CURRENCY
SUBSTITUTING TREfSTRY NOTES FOR
NITIONiL BANK NOTES.


WASHINGTON, Feb. 1o.-Thc House Com
mttcc on Banking and Currency o-day author
ized their Chairman. Mr.. Buckner TO report his
bill, which proposes 10 substitute for national
bank notes new description OF Treasury notes.
Tho biii provides that as soon as practicable
after the pnssage OF this act, the Secretary Of
the Treasury shall cause TO be prepared an
issue Of Treasury notes equal in amount 10 the
circulation OF the national banks on Feb. |.
1873. being the sum of s320Gi7.G90. which
Treasury notes shall be in the following form:
w,,niNeroN % e. -
Tie twod states % tmcrca are indebted To- the ianrcr
IN the sim "i - duillr~ --. Treasurer
---. Rc-istor OF tlS Treasury
The denominations Of such notes. and the
general similtudc thereof shall conform as
nearly as may be to those of the United States
logal-tender notes. and shall be- receivable in
payment OF all taxes. customs. excises. 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 existing laws. and shall be
received by the Secretary ofthe Treasury at par
for the four per cent. bonds. Immediately after
such Trensury notes are ready for circulation
the Secretary OF the Treasury shall cause them
TO hc forward ii 10 the Assistant Tpasurprs in
New York, Boston. Philadelphia. Baltimore.
Cincinnati Chicago St. Louis and New Or
leans. in amounts proportioned to the receipts
and disbursements ot their respective Offices.
and said Assistant Treasurers shall. imme-
dintelv after the receipt of such notes. cease to
pay ont upon any account whatever the nutgs OF
the national banks then in their several Offices
or thereafter received into them hut shall pay
out IN the place and stead Of such notes. aud in
substitution therefor the Treasury notes herein
authorized until the whol" circulating notes of
the national banks shall have been retired. and
the Assistant Treasurers may at anv time issue
such Treasury notes In exchange for bank
notes upon the Application OF any person or
Every thirty days after the process OF retiring
the national bank notes shall have bcen begun.
or ouen"r. II the Secretary Of the Treasury
shall So require the Assistant Treasurers shall
transmit to the Treasurer n, Washington all the
national bank notes received by them up 10 me
,late of such transmission which notes snail
hr received by the Treasurer III luuiia-
tion Of the charges against the sever,
al Assistant Trcusurcrs on account OF
Treasury notes. as herein provided: and
whenever those of any yas-ociniion shall amount
60 $4,000 or any multiple Of 5000 ~ h associn-
tou shall hc notified thereof, and shall be an
titled To receive. upon demand and payment ot
like sum n United States notes. its bonds on de,
ppSt with the Treasurer for security of
circulation to the amount ol It's notes
So asreriaincd. and TO that extent shall
be discharged from tax on is circulation;
and II any national bank shall fail or neglect
for n period of sixty days after the notification
To- make payment IN redemption Of its bonds,
then to that extent interest on its bonds shall
cease and hc forfeited TO the United Sttes dur
ng the whole period Of such failure or neglect;
and any banking nssorintion desiring SO to do
may withdraw all it, bonds On payment into the
Treasury of legal-tender not"s or the notes
authorized 10y this a I e. the amount ot It's cir
culatne notes outstandin. at the date OF such
The Secretary iof the Treasury IS required
from time g. time. rs payments are made 10y
the national banks on the withdrawal OF their
bonds. or as Treasury notes may b' received
In exchange. for four per cent, bonds. e eN-
pend the sum OF such receipts either in Treas
ury notes or legal tender notes. as may he most
eApedient, IN the purchase OF six per cent
GpXaIllnfsnt. tlr
Of gold or silver coin with which TO redeem and
pay such bonds.
Treasurer and on payment into the Treasury
OF legal tender or Treasury notes equal TO its
outstanding circulation at the date Oi such ap-
pllr!uon. may exchange IT, six per cent. bonis
Tor theTrensury notes authorized by this act and
iul market value of lis bonds. with accrued
interest and prrmlum ~ the market rate, Gold
banks are required To make monthly deposit
III the Treasury OF gold cpiu,or their own notes.
equal to five per cent. of their circulation out
standing AT the date OF the passage OF this net.
and when an amount equal 10 their entire cir
cuation has been SO deposiied the bonds held
by the Treasurer to secure their circulation
shall be reassigned and delivered TO
banks shall be redeemed AZ the United
States Treasury. No notes shall he
issued 10 my national bank after the passage Of
this ft but nothing herein contained shall be
construed either 10 authorize or allow any con-
traction Of tho currency. and should any ma
tional bank retr" lis circulation in pursuance
Of existing law. the Secretary OF the Treasury is
directed 10 issue. IN the purchase OF six per
cenium bonds Of the United States. the Treas
ury notes authorized by this act To the full
amount Of the circulation retired 10y such assoc
citation, and all the national bank notes re-
deemed under the several provisions Of
this act are 70 be- cancelled and destroyed {:
and the monthly statement Of the condition Of
the public debt shall include an exhibit Of the
amount OF the Treasury notes outstanding nj
the date Of such statement, with the amount OF
national bank notes which. of the same date
have been redeemed and destroyed. or held ior
cancellation.
The third section Of the act Of June 20. 1874
requiring the national banksto keep on deposit
with the Treasurer at Washington law lul
money equal to five per cent. Of their circula-
tion. 10 b, held and used for the redemption Of
such circulation. Is repealed
The committee vote upon the question Of au-
thor2ing Mr.. Buckner to report the foregoing
hill for passage was as follows:
YF,,-Mcssrs Buckncr Dem. Mo-. Ewing Dem ohio.
Nears Dem. q Hartlcu Dem lll. B.n dem .GaL
Fort Rep III. ana Phillips lep, Kan -
NAYs-Me.srs hArdenborgh dem, y. Jl and Eames
dIcl. Il. -
Mr.. Hart QRep.,, n; ~ was absent. and Mr..
Chitic ndcn (lIep.. y. ", on the tuai question.
declined 10 vote. although he hat previously
manifested his opposition 10 the bill.
THE ELETTORIL IRIED