The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1880-02-26
Text Of the Proposed New Funding
Bill.
wASurNcroN 7

WASHINGTON, February Is.
The following is the text of the bill to
facilitate the refunding of the National
debt, agreed upon by the Committee on
Ways and Means:
ions of the law authorizing the refunding of
the National debt shall apply to any bonds of
the United States bearing higher rate of in
terest than ~ per sent1m per ann snnu which
that, in lieu of the bonds authorized to be-
issued by the act Of July IA, 1870, entitled IAN
act to authorize the refunding of the National
debt" and the acts amendatOry thereto, and
the certificates authorized by the act of Feb
ruary 26, 1879, entitled I" An act to authorize
the issue of certificates Of deposit in aid Of the
Secretary Of the Treasury is hereby
amount not exceeding s5oS'Sos, 1000. ~ which
centuln per annum redeemable at the pleas
ure of the United states after twenty years,
and payable forty years from date of issue,
ing interest at the rate OF 81 per centum per
annum, redeemable at the pleasure of the
United States after two years, and payable in
than Of said notes notes. e snail III be re-
1ar notes to be redeemed from a time me- to time
shall be determined by lot, under such rules
The bonds and notes shall be in all other re-
spects Of like character and subject to the
same provisions "a the bonds s authorized to be
act to authorize the refunding of the National
debt and the acts amendatOry thereto; pro-
Uided, that nothing in this act shall be so con-
strued as to authorize an increase of the pub
lie debt.
SEC. 2. The Secretary of the Treasury ID
hereby authorized, in the process of refund!
ing the National debt, to exchange at not less
thorized for any of the bonds of the United
States outstanding and uncalled for bearing o
higher rate of interest than ~ per cen,Hm;
Secretary of the Treasury may allow to hold
ers the difference between the interest on
such bonds from the date of exchange to the
period on bonds or notes issued; but none of
the provisions of this act shall apply to the re-
demptiOn or exchange OF any bonds issued to
90 received and exchanged In pursuance Of
the provisions Of this act shall be cancelled
SEC. J. Authority to issue bonds and notes
to the amount necessary to carry out the pro-
visions Of s tni: 81: act hereby gssnssd "a ,s
is Hereby amended 50 as to continue and limit
the amount of certificates to be issued to
$4,000, 600, to be outstanding at any one time,
and fixing the rate Of interest to be 9 sliowed
year. after which interest shall cease, and said
certificates shall be convertible, ct the option
OF the holders When presented IN sums OF $SO
or multtples thereof, into coupon or registered
bonds authorized by this act, and whenever
any of said certificates shall be converted in
to bonds, the same shall be Cancelled and
destroyed; but the Secretary Of the Treasury
may in his discretion issue new certificates
in place of those 90 converted up to the limit
Of $1,000, 600, until the aggregate amount Of
bonds authorized by this act, and Of said Ger.
tincates combined, then outstanding. shall
equal the amount of the bonds hereby
authorized. It shall be unlawful for any
person or persons to form combinations BY
which to procure said certificates OF deposit
authorized under this act for purposes Of eale
to others, or for acting 40 agents to others, and
any person 20 offending shall be liable, on con-
victfon, to be fined $1,000, OrtO imprisonment
not to exceed one year. The Secretary Of the
Treasury is authorized and directed to make
suitable regulations in compliance with this
act, providing that the expense for dispo0ine
| Of the certificates and bonds authorized to DO
issued shall not exceed one-Quarter Of one per
centum: provided that said certificates shall
| not be sold or converted at less than par.
SEC: s. From and after the lst day Of July;
1850. the three and one-half per centum bond9
authorized by the first section Of this act shall
| be the only bonds receivable as security foS
National Bank circulation.
| SEC. T. This act shall be known 40 the Fund
| ing oct Of 1850 and al aCts and parts Of ect@
] Inconsistent with this cot are hereby repealed.