Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1881-02-24
The Funding Bill.

w AeHlNGIoN, rep. 1S.-1he following
Is the full text Of the funding bill, as
passed by the senate,
a BILL to facilitate the refunding of the nation
al debt.
Be it enacted, by the senate and house of rep
reSentatiyeS of the United States of America. in
congress assembled, that all existing provisions OF
law authorizing the refunding of the national
debt shall apply to any bonds of the United States
bearing a higher rate of interest than I ! per
cent. per annum, which may hereafter become re-
deelnable; provided, that in lieu of the bonds
authorized to be issued by an act of July Il 1870
entitled An act TO authorize the refundng of the
national debt" and the acts amendatory thereto
and certificates authorized by the act of Feb %
1879, entitled. AN act to authorize the issue OF
ceruhcates OF deposits IN aid of the refunding ef
the public debt"
Section l. The secretary of the treasury is here
by authorized to issue bonds to an amount not ex-
ceeding $500, 000 in denomination of fiftv dol
lars or some multiple of that sum which shall bear
interest at rate not exceeding 5 per cent. per
annufn, payable semi-annuay redeemable at
the pleasure of the United States after FIVE years,
and payable In twenty years from date of issue;
and also treasury notes to an amount not exceed
ing $500 900 900 in denominations of TO- or some
multiple of that sum not exceeding $1,000,
either registered or coupon bearing interest at
the rate not exceeding of per cent. per annum
payable semi-annually redeemable at the
pleasure Of the United States after one
year, and payable in ten years from date. and
no treasury note of less denomination than 500
shall be registered, Bonds and treasury
notes shall be In all other respects
of like character and subject to the same provi-
sions as the bonds authorized to be issued by the
act of July II, 1870, entitled, IAN act to author
iZe the refunding of the national debt, and acts
amendatory thereto; providing that nothing in
this act shall be so construed to authorize the in
crease of the public debt; provided further that
II M bonds hereby
thorized to be refunded, shall close at the ex
piration of 30 days, after the publication or no
tice that the same has been designated by the
secretary of the treasury for redemption. 1t shall
be the duty of the secretary OF the treasury under
such rules and regulations as he may prescribe,
to authorize public Subscription 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 designate Tor bonds
and treasury notes herein provided for, for 80
days before he shall contract for or award any
portion of said bonds or treasury notes to any
syndicate of individuals of bankers otherwise
than under such public subscription; and If 1T
shall happen that more tnan the entire
amount Of said bonds and treasury notes,
or either have been subscribed for within
said thirty days he shall award the full amount
subscribed to all persons who shall have made
bona tide subscriptions for the sum of $50 600 or
less at rates most advantageous to the United
| States and residue ratably among subscribers in
subscribed at rates most advantageous to the
United States.
Section 2. The secretary of the treasury is
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 un-
called bearing higher rate of interest than q
percentum per annum and on bonds so redeemed
the secretary of the treasury may allow to the
holder the difference between the interest on such
| bonds from the date of exchange TO the time of
maturity, and the interest for like period of
bonds or treasury notes Issued; and bonds so
received and exchanged in pursuance of the pro-
visions OF that act shall be cancelled and de-
stroyed; but none of the provisions of this act
shall apply to the redemption exchange of any
of the bonds issued to the Pacific railroad com
panics.
Section 3. The secretary of the treasury is
hereby authorized and directed to make suitable
rules and regulations to carry this act into effect
and the expense of preparing, issuing, adyertis
ing and diSpOsing of bonds and treasury notes au-
thOrlZed to be issued shall not exceed Onehalf of
per cent.
Section 4. The secretary of the treasury is
hereby authorized, if in his opiuiOn it shall be-
come necessary, to use temporarily, not exceeding
$50 600 600 of standard gold and silver coin in
the treasury, in the redemption of and per
cent bonds of the United States, authorized to be
refunded by the provisions of this act which shall
from time to time be repaid and replaced out of
the proceeds of the sale of bonds or treasury
notes authorized by this act, and he may at any
time apply the surplus money in the treasury not
other wise appropriated, or so much thereof as he
may consider proper to the purchase on redemption
OF United States bonds or treasury notes author
lied by this act, provided that the bonds or treas
ury notes so purchased or redeemed shall consti-
tate part of the sinking fund but shall be can
cclled.
Section 5. From and after the first day of July.
1881, ) per centum bonds, authorized by the first
section OF this act shall be the only bonds receivable
as security for safe keeping and prompt payment
OF public money deposited with such banks but
when any such bonds deposited for PURPOSES
aforesaid shall be designated for purchase or re-
demptlon by the secretary of the treasury the
banking association depositing the same shall
nave the right to substitute other issues bonds of
the United States in lieu thereof; provided no
bonds upon which interest has ceased shall be ac-
cepted or shall continue deposit as security for
circulation or safe keeping of public money In case
the bonds so deposited shall not be withdrawn as
provided by law, within 80 days after interest has
ceased thereon, the banking association deposit
ng the same shall be subject to the liabilities and
proceedings on the part OF the comptroller, pro-
yIded tor in section 1924 revised statutes of the
United States; and provided further that the sec
ton OF the act of June 90 1874 entitled ian
act fixing the amount of United States notes, and
providing for the distribution of national bank
currency, and for other purposes" be- and the
same is hereby repealed; and sections 5I59 and
5l6O revised statues of the United States, be and
the same are hereby re-enacted. ----~~
Section s. That the payment of any of the
bonds hereby authorized, after the expiration of
1Ve years, shall be made in amounts to be
determined from time to time, by the secretary of
the treasury at his discretion. y The bonds to be
distinguished and described by dates and mum
bers, beginning each successive payment with
the bonds of each class last dated and numbered,
OF the time of which the intended payment or re-
denption will be made. The secretary of the
treasury shall give public notice and the interest,
on the particular bonds so selected at any time to
be paid, shall cease at the expiration of thirty
days from the publication of such notice -s..-
Section 4. That this act shall be known as the
funding act of 1881 and all acts and parts of acts
inconsistent with this act are hereby renealed.