The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-19
THE NATIONAL BANKS.
Senator Farwelps Bill for Providing q Basis
for Circulation.

Senator Farwelrs Bill for Providing q Basis
for Circulation.
WASHINGTON, Jan. 18.-In the Senate. to-day,
Mr. FarweI introduced bill to authorize the
Secretary of the Treasury to apply the surplus
money In the Treasury to the purchase of United
Ststes bonds and to perpetuate the national
banking system by providing further securities.
The first section provides that the Secretary OF
the Treasury be and he is hereby authorized and
directed to issue to national banking assoca-
tions heretofore orgrnized, or that may
hereafter be organized under the general
law coupon or registered bonds of the
United States in such form and such
denomination as he may prescribe, redeemable
after fifty years from the date of their issue,
bearing interest, payable semi-annually at the
rate OF per cent per annum, to be used by ma
tiopal banking associations securities for their
circulating notes; such bonds shall be exempt
from taxation by or under State or municipal
authority.
Any national banking association SHALL after
the passage of this act, be authorized to issue
circulating notes to the amount of 100 per cent.
of the par value Of said bonds.
The second section provides that any national
banking association shall be authorized to de-
liver to the Secretary of the Treasury any of the
outstanding bonds OF the United States in ex-
change for the per cent. bonds provided for in
this act, and the Secretary of the Treasury is
heF6DY authorized anu ulTeCLeu 10 pay III ulouey
mot otherwise appropriately the difference in
value Of the bonds so exchanged, the difference
to be ascertained by taking the average premi-
nm. as shown by the New York market, for
twenty days prior TO the time of such exchange.
Section authorizes and directs the Secretary
of the Treasury to receive from national bank
ing associations United States notes in payment
OF the three-per-cent- bonds herein provided tor,
such bonds TO be delivered at their par value.
Section authorizes and directs the Secretary
OF the Treasury, at the end of each month, to
invest the surplus funds held in the Treasury
not otherwise appropriated in the purchase, in
open market, of any United States bonds, the
bonds so purchased to be cancelled and de-
Btroyed-
Section authorizes the Treasurer of the
United States to receive from any national
banking association. TO secure Its circulating
notes, an amount equal In value-the value
hereinafter provided for--to be coupon or regis
tered bonds purchased, Cancelled and de-
stroyed, apy State municipal bonds of the
United States, upon which interest has hereto
fore been promptly paid, and whose market val
ne is equal to greater than the par
value, bearing interest at q rate not
less than per cent. per annum; provided
that the Treasurer of the United States shall not
receive such State or municipal bonds at m ore
than 70 per cent. Of their par value; and pro-
vided, further, that the Treasurer of the United
States shall not receive such State or municipal
bonds until such bonds shall have Endorsed upon
them the approval of the Secretary of the Treas
ury and the Comptro Her of tho Currency.
Section provides that all laws and parts OF
laws relating to the establishment of a sinking
fund for the payment of the public debt shall
be repealed,