The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1882-06-23

OF thelf capital STOCK as security Tor tnelr
circulating notes. and such of those banks
having on deposit bonds in excess of that
amount are authorized to reduce their cir
culation by the deposit of lawful money.
as provided by law; provided, that the
amount of such circulating notes shall not
In any case be ninety per cent of the
bonds deposited as herein provld
ed; provided further that all
national banks which shall hereafter
make deposits of lawful money for retire
ment in full of their circulation shall at
the time of their deposit be assessed for
the cost of transporting and redeeming
their notes then outstanding, a sum equal
TO the average cost of redemption of ma
tional bank notes during the proceeding
year and shall thereupon pay such assess
ment and all national banks which have
heretofore or shall hererfter make deposits
of lawful money for reduction of their cir
culation shall be assessed and shall pay an
assessment in the manner specified in sec.
8 act, approped June Goth, 1874, for cost
of trans porting and redeeming their notes
redeemed from such deposit subse quent
to June 30th, 1881
Section 8. That any national banking
now organized or hereafter organizing, de-
string to withdraw its circulating notes up
on deposit of lawful money with the treas
urer of the United States, as provided in
section of the act of June 90, 1874, en-
titled IAN act fixing the amount of United
States notes, providing for the redistribu-
ton OF national bank currency and for
other purposes, or as provided in this act
is authorized to. deposit lawful money and
withdraw proportionate amount of bonds |
held as security for its circulating notes, in
order of such deposits, and no national
bank which makes any deposit of lawful
money in order to withdraw its circulating
notes, shall be entitled TO receive any IN |
crease in its circulation for period of six |
months from the time it made such deposit |
of lawful money for the purpose aforesaid, |
provided that not more than three million
dollars of lawful money shall be deposited
during any calendar month for this purpose.
Section 10. That upon the deposit
OF bonds as described by the sec
tions $3.50 and 5. 160 revised statutes, ex
cept as modified by sections of an act en-
titled AN act fixing the amendment of the
United States notes providing for the re
distribution of national bank currency and
for other purposes" Approved June Goth,
1874, and as modified by section eight of
this act. The association making the same
shall be entitled to receive from the comp
trolier of the currency circulating notes Of
different denominations in blank, register
ed and countersigned as hereafter provided,
equal in amount to 90 per cen. of the cur
rent market value, not exceeding the part
value of United States banks so transfer
red and delivered. And at no time shall
the total amount of such notes issued to
any such association exceec 90 per cent. of
amount at such time as it is actually paid in
of its capital stock, and the provisions of
sections 5,170 and 5, ,176 are hereby re
pealed.
Section II. That the secretary of the
treasury is hereby authorized to receive ae
the treasury any bonds of the United
States bearing three and a half per cent
interest, and to issue in exchange therefor
an equal amount of registered bonds of
the United States, of the denomination of
five, one hundred, one thousand and ten
thousand dollars, of such form as he NAV
prescribe, bearing interest at the rate of J
three per cent. per annum, payable quar-
terly at the treasury of the United States
Such bonds shall be exempt from all taxa
ton by or under state authority, and be
payable at the pleasure of the United
States; provided that bonds herein author
lied shall not be called and paid so long as
any bonds of the United States heretofore
lssded bearing higher rate of interest ,
than three per cent and which shall be re-
deemable at the pleasure OF the United
States, shall be outstanding and uncalled.
the last of said bonds originally issued and
their substitutes shall be first called in
and their order OF payment shall be fol-
lowed until all shall have been paid.
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