The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1881-03-04
The Funding BIN.

The Funding BIN.
d. WASHINGTON, February 10
FOLLOWING is the text of the Fund
ing bill as it passed the Senate to-day:
AN ACT to facilitate the refunding Of the
National debt:
SECTION L Be 4 enacted, etc., That al exist
ing provisions Of the law authorizing the re-
funding of the National debt shall apply to any
bonds of the United States bearing higher
rate of interest than " per centum per apnum
which may hereafter become redeemable;
provided, that, in lieu Of the bonds authorized
to be issued by the act of July "A. 1880. entitled
IAN act to authorize the refunding Of the Ma
tional debt" and acts amendatory thereto,
and the certificates authorized by the act of
February %, 1873, entitled IAN act to author
tie the issue Of certificates Of deposit in aid of
refunding the public debt, the Secretary of the
Treasury is hereby authorized to issue bonds
to an amount not exceeding 500, GOO, 900 in de-
nominations of $50, or some multiple Of that
sum, which shall bear interest at the rate OF
three per cent. per annum, payable seminar
nually ,redeemable at the pleasure of theUnited
States after five years, and payable IN twenty
years from the date Of issue; and also Treas
ury notes to an amount not exceeding $780,
600 600, in denominations Of SO, or some null
tiple of that sum not exceeding $1,000. either
registered or coupon, bearing interest at
rate not exceeding three per cent, payable
semi-annualy, redeemable at the pleasure OF
the United States after one year, and payable
in ten years from the date of issue; and no
Treasury note Of less denomination than 800
shall be registered. The bonds and Treasury
b>o Sv, all 0<kA AZ n
character and subject to the Same provision
a. tho bonds authorized to be issued by the
act of July IA, 1881, entitled IAN act to author
ize the refunding Of the National debt and
acts amendatory thereto; provided that moth
ing in this act shall be so construed as to atl-
thorize an increase of the public debt; pro
vided, further, that interest upon the six-per-
cent bonds hereby authorized to be refunded
shall cease at the expiration Of thirty days
after publication Of notice that the same
has been designated by the Secretary of
the Treasury for redemption. It shall be the
duty of the Secretary Of the Treasury, under
such rules and regulations as he may pre-
scribe, to authorize public subscriptions at not
less than par, to be received at all repositories
Of the United States, and at all National
Banks, and such other banks as he may desig-
nate, for the bonds and Treasury notes herein
provided for, for thirty days before he shall
contract for or award any portion of said bonds
or Treasury notes to any syndicate, or indi-
viduals, or bankers, or otherwise than under
such public subscriptions; and If it shall hap
pen that more than the entire amount of said
bonds and Treasury notes, or either, have
been subscribed within the g. aid thirty days, he
shall award the full amount subscribed to all
persons who shall have made bona fide sub
scriptions for the sum of 5000 or less, at the
rates most advantageous to the United States,
and the residue ratably among subscribers in
proportion to the amount by tn EN- respective
ly subscribed, at the rates most advantageous
to the United States.
SEC. 2. The Secretary Of the Treasury ID
hereby authorized, in the process Of refunding
the National debt. to exchange, at not less
than par, any bonds or Treasury notes herein
authorized for any bonds Of the United States
outstanding and uncalled. bearing a higher
rate Of interest than four and one-half per
centum per annum, and on. the bonds 50 re-
deemed tho Secretary Of the Treasury may
allow to the holders the difference between
the interest on such bonds from tho date Of
exchange to the time Of maturity, and the in
forest for like period on tho bonds or Treas
ury notes issued; and the bonds 50 received
and exchanged In pursuance of the provisions
Of this act shall be Cancelled and destroyed.
But none Of the provisions Of this act shall ap-
ply to the redemption or exchange of any Of
he bonds issued to the Pacific Railway Com
panies.
SEC. g. The Secretary of tho Treasury is
hereby authorized and directed to make suita-
BILE rules and regulations to carry this act into
effect and the expense Of preparing, issuing,
advertising and disposing Of the bonds and
Treasury notes authorized to be issued shall
not exceed one-half of one per centum.
SEC. 4. The Secretary Of the Treasury is
hereby authorized, If, in his opinion, it shall
become necessary, to use temporarily
not exceeding $500O0,0O0 of the standard
gold and silver coin in the Treasury in
redemption of five and six-percent.
refunded by the provisions of this act, which
shall. from time to time, be repaid and re-
placed out of the proceeds Of the sale of the
bonds or Treasury notes authorized by this
act, and he may, at any time, apply the sur
plus money in the Treasury not otherwise ap-
oropriated, or 50 much thereof as he may con-
slider proper, to the purchase or redemption
of the United States bonds or Treasury notes
authorized by this act; provided, that the
bonds and Treasury notes SO purchased or re-
deemed shall constitute no part Of the sinking
fund, but shall be cancelled.
SEC. 5. From and after the LIST day Of July,
1881, the three-percent. bonds authorized by
the first section of this act shall be the only
bonds receivable as security for National
Bank circulation, or as security for safe-keep-
ing and prompt payment OF public money de-
posted with such banks; but when any such
bonds, deposited for the purposes aforesaid,
shall be designated for the purchase or re-
demption by the Secretary of the Treasury.
the banking association depositing the same
shall have the right to substitute other issues
of bonds of the United States in lieu thereof;
Provided. that no bonds upon which interest
has ceased shall be accepted. or shall be con-
tinued on deposit as security for circulation, or
for safe-keeping of public money; and in case
the bonds so deposited shall not be withdrawn,
as provided by law, within thirty days after in
terest has ceased thereon. the banking asso-
citation depositing the same shall be subject to
the liabilities and proceedings on the part of
the Comptroller provided for in Sec. 1924 of the
Revised Statutes Of the United States: and