The advocate., 1892-04-13


troller of the currency is hereby authorised
and required to accept registered bonds is-
sued by any railroad corporation or city in
the United States, and deposit the same
with the treasurer of the United
States in behalf of any such as
sociation as security for its circulating
NOES, subject to the following restrictions:
1. The principal and interest of all such
bonds shall, in expressed terms, be payable
in gold coin of the United States.
2. All such bonds must have been continu-
ously listed upon some regular stock ex-
change, located in a city of the United
States having population of not less than
100000. for at least five years.
3. To bond shall be accepted upon which
payment of interest has at any time been in
default, or which at any time within three
years prior to the date of its offer for accept
ance has sold publicly upon any stock ex-
change where it was listed for less than 105
cents on the dollar of its face value.
4. No bond shall be accepted if the total
tax levy of the city issuing it exceeds per
Centum per annum.
5. No railroad bond, not regularly secured
by mortgage upon the road bed and track,
shall be accepted.
6. No association shall be permitted to
have more than 20 per centum of its bonds
on deposit of the issue of any one railroad
corporation or city.
z. Whenever any class of bonds on de-
posit has been publicly sold below par for
period of thirty days upon any stock ex-
change where listed, the comptroller shall
require bond, to be submitted, which will
in all respects meet the requirements of
this act.
8. Whenever any railroad corporation
which was paying dividends upon it's stock
when it's bonds were accepted by the comp
troller ceases to pay dividends, the substi-
tuition of other and proper bonds shall be
required.
Sec. 6. That the comptroller, with the
consent of the secretary of the treasury,
shall have the right to reject any class of
bonds he sees fit, and to require proper SUBJ
stitution for any already on deposit con-
sidered undesirable.
Sec. 7. That no association shall hereafter
be required to keep on deposit with the
treasurer of the United States any further
security or fund for the payment of its cir
CulatiDg notes than those provided for and
required by this act.
Sec. 8. That any president, vice president,
manager, secretary, treasurer, or other
officer of any interstate railroad who shall
knowingly issue, or permit to be issued, any
false statement of the earnings, expenses,
or condition of the road he is officially con-
nected with, shall be subject to indictment
and trial in any court of the United States,
and if found guilty shall be imprisoned at
hard labor for not less than ten years nor
more than twenty years, and be subject to
fine in addition of not more than $780,
600.
Sec. 9. That for the further protection of
the holders of circulating notes, the United
States shall have first lien upon the assets
of each association for the payments of its
notes, in addition to the bonds deposited
with the treasurer of the United States for
security.
Sec. 10. That fund of 81, ,OOO, 900 shall be
created out of the taxes collected under
this act from national banking associations
and shall be maintained from the same
source, and if the proceeds of the bonds de-
posted to secure the circulating notes of
an association and the first lien upon it's
assets together are insufficient TO redeem
the outstanding notes of the association,
then the deficiency shall be made good from
this fund.