Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-02-19
THE NATIONAL DEBT
NEW REFUSDING ACT.


WASHINGTON Feb. lS.-The following is the
text of the bill to facilitate refundipg the ma
tional debt, agreed upon by the committee of
ways and means:
b it enacted, ETC., That all existing provi-
sions of law authorizing rounding Of the ma
tional debt shall apply to any bonds of the
United States bearing higher rate of interest
!hsn Al per cent. per annusl, which may here
after become -edeemable; provided, that in lieu
of bonds authorized to be issued by the act of
July l4th, 1870, entitled IAN act TO authorize
refundiug of the national debt" and acts
amendentory thereto, and to the certificates
authorized by the act of February and October.
1879, entitled an &C. to authorize the issue OF
certificates OF deposit in aid of refuuding the
public debt that the secretary of the treasury
is hereby authorized to issue bonds in
amount not exceeding s. 0,000 900, which shall
bear interest at the rate of 3 ; per centum per
aunum, redeemable at the pleasure of the Unit
cd States. after twenty years. and payable forty
years from date of issues. and also notes IN
the amount of 00,000, 900. bearing interest ct
the rate of 3 per centum per annu Al, redeem
able at the pleasure of the United States after
two years, and payable IL ten years from date
of Issue, but not more than $40, 0J0000 of said
notes shall be redeemable any one fiscal year,
and the particular notes to be redeemed ftOm
time to time shall be determined by lot under
such rules as the secretary of the treasury shall
prescribe. The bonds and notes shall be in all
other respects of like character and subject to
the same provisions as the bonds authorized to
be issued by the act of July II, 1870, entitled
ar act to authorize refundiug of the national
debt, and also amendatOry thereto, provided
that nothing in this act shall he so constructed
as to authorize al increase of public debt.
See. ,. The secretary of tue treasury IS
hereby authorized, in the process of refunding
the national debt, TO exchange at not less than
par any of the bonds notes herein author
lied for any of the bonds of the United States
outstanding and uucaled bearing higher rate
of interest than - per cent. per anuum. and
on bonds redeemed the secretary of the treas
ury may allow to holders the difference be-
tween the interest on such bonds from date of
exchange to the time of their maturity, and
interest for like period on the bonds or notes
issued but none of the provisions OF this act
shall apply to the redemption or exchange Of
any bonds issued to the Pacific railroad
companies, and the bonds so received and ex-
changed, Gin pursuance of the provisions of
this act, shall be cancelled and destroyed.
Sec. 5. Authority to issue bonds and notes
to an amount necessary to carry out the pro-
visions of this act is hereby granted.
Sec. 4. The act approved February 26, 1879,
authorizing ths issue of certificates of deposit
is hereby amended as to combine and limit
the amount of certificates TO be issued to S5O,
600 900, to be outstanding at any one time, and
fixing the rate of interest thereon to be allow
ed, at the rate of 8 of per cent. per annum,
for one year, after which inter
est shall cease, and said certificates
shall be converted at the option of the holder
when presented in sums of $50, or mutiples
thereof, into coupon or registered bunds author
lied by this act, and whenever any of said GER
tifcates shall be converted into bonds the same
shall be cancelled and destroyed, but
the secretary may, in his discretion, issue new
certificates in place of those converted, up
to the limit of $4,000, 900 until the aggregate
amount of bonds authorized by this act, and of
said certificates combined, then outstanding
shall equal the amount of bonds hereby
thorZed. 1t shall be unlawful for
any person or persons to form
a combination by which to procure said certif-
Gates of deposit authorized under this act for
agents of others, and any person offending
shall be liable on conviction to be fined 81. COO
or imprisonment not to exceed one year. The
rccted to make suitable regulation in compli
ance with this act, providing that the expense
for dlsposing OF the certificates
and bonds authorized to be issued shall not ex-
coed one-quarter of l per cent, and provided
that said certificate shall not be sold con-
converted at less than par.
Sec 5. From and after the LIST day of July,
1880. the 81 per cent. bonds authorized by the
first section of this act shall be the only bonds
receivable as security for national bank circu-
Iation.
Sec q. This act shall be known the fund
ing act of 1880, and all acts and parts of acts
inconsistent with this act are hereby re-
pealed