The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-03-18
GOVERNMENT BANKING.

classification of the funds OF the United
States treasury, for the establishment of
general system of government banking, and
Tor other purposes.
Be it enacted by the senate and house of
representatives of the United States Of America
In congress assembled:
Section 1. That from and after the date and
passage Of this act, there shall be established
In the treasury department bureau to be
known as the government banking and loan
bureau; that chief and deputy chief of such
bureau shall be appointed by the president OF
the United States by and with the advice and
consent OF the senate The salary of the CHIEF
OF such bureau shall be $4,000 per annum, and
that of the deputy 5000 per annum. Before
entering upon their duties, the chief and deputy
chief Of the bureau, shall each make to the
United States and deliver to the secretary of
the treasury sufficient bond for the faithful
discharge Of all his official duties. When such
bond is approved, it shall be filed with the
secretary Of state, who shall be custodian of all
bonds, given under the provisions of this act.
Sec That it shall be the duty Of the
chief OF such bureau under the direction and
with the approval OF the secretary Of the treas
ury to superintend the affairs of the bureau, and
make and enforce all proper rules necessary to
carry into effect the provisions of this act; to
appoint all necessary clerks whose salaries
sh all be no greater than those paid for similar
clerical work in the department.
Sec. g. That the chief Of the bureau by and
with the consent of the secretary of the treas
ury shall establish branches Of the United
States treasury, or ubtreasuries, to be known
as government banks, in each county which has
population of 600 or more, in each state of
the United states, under the following condi-
lions: LIST The first government bank in any
county shall be established application by
petition of 100 resident citizen freehOlderS
each of whom shall be owner Of property with
in the county whose assessed valuation is not
less than $780, as certified by the county clerk.
I'd. In any county having one or more
government banks an additional bank
may be established upon q petition as
aforesaid, and with the recommendation Of the
bank examiner for that district as hereinafter
provided, showing that the volume of business
and the necessities of the people would be bet
ter supplied thereby: provided that no county
shall have more than one bank for every fifty
thousand inhabitants or major fraction thereof.
Section 4. That the business of each bank es-
tablished under the provisions of this act shall
be conducted by bank director who shall be
appointed by the chief of the bureau, by and
with the consent of the secretary of the treas
ury; provided: 1st He shall have been recon-
mended by the petitioners applying for such
bank. I'd. He shall have successfully passed
civil service examination Whenever any per-
son has received an appointment as bank di-
rector, he SHALL before entering upon his duties,
and deliver to the secretary of the treasury, a
sufficient bond for the faithful discharge of his
duties as such director.
Sec 5. That it shall be the duty of the bank
director to exercise general supervision over
the business of the bank, and employ all neces-
sary clerks; such clerks to be subordinate to
the director, who shall be responsible on his
bond for their official acts.
Sec. o. That the chief of the bureau shall
classify all banks into first, second, third and
fourth class banks, on the basis of the volume
of business to be DONE and each director of
bank of the first class shall receive salary of
$1,000 per annum; each director of bank of the
second class shall receive salary of s., 900 per
annum; each director of bank Of the third
class shall receive salary of 81 800 per annum,
and each director of a bank of the fourth class
shall receive salary of 81, 900 per annum.
Sec ton Z. That the chief of the bureau, by
and with the consent of the secretary of the
treasury, shall appoint sufficient number of
bank examiners, to examine the condition of
each and every bank, not less than twice each
year, and report the same to the chief of the
bureau. Each bank examiner shall receive
salary Of 81 600 per annum, out of which he
shall pay his travelling expenses. No person
shall be appointed bank examiner unless he
shall have successfully passed a civil service
examination.
Section 8. No person shall be removed from
the office of bank examiner or bank director ex-
cept for immortality, incompetency or failure to
faithfully perform the duties of his Office.
Sec 9. That all treasury notes, gold GER
tificates, silver certificates gold and silver coins
heretofore or hereafter issued by the authority
of the United States shall be full legal tender
for all debts, public and private and shall be
receivable by the government for all dues.
Sec TO- That any owner of silver gold
bullion may deposit the same at any mint of the
United States to be formed into standard dol
lars for his benefit, and without charge, but it
shall be lawful to refuse any deposit of bullion
so base as to be unsuitable for the operation of
the mint.
Sec. IL. That in lieu Of the various reserve
funds held in the treasury for the redemption
Of outstanding treasury notes. silver certifi.
Gates, gold certificates, and fractional paper
currency, there shall be established single
reserve fund containing $3.50 900, 000 in CON- not
more than half of which shall be gold,
which shall be held for the redemption of such
notes and certificates.
Sec II. That the secretary of the treasury
is hereby authorized and directed to have pre-.
pared $500, 100000, in treasury notes of suitable
denominations, and the secretary of the treas.
ury is further directed to place in the reserve
fund, heretofore provided for an additional
500, 600 of coin not more than half of which
shall be gold, which shall be held for the re-
demption of these notes.
Sec H. That when any treasury note or gold
or silver certificate is presented for REDEMPTION
the secretary of the treasury shall, at his op-
ton, redeem it in either gold or silver CON-
Sec. a. That the secretary of the treasury
shall establish loan fund in which shall be
placed all the gold and silver coins, treasury
notes and all deposits in national bank depos-
istories, which have heretofore been held in the
various reserve funds, exclusive of the $3.50 OOO-
600 set apart to be placed in the single reserve
fund.
Sec. 10 That the secretary of the treasury
shall have coined into standard dollars all the
silver bullion stored in the treasury under the
provisions of the act of July IA. 1890 and shall
place said coin in the permanent loan fund.
Sec. 16. That, when any coin certificates or
treasury notes have been redeemed if fl for
further use, they shall Immediately be placed
in the permanent loan fund, but if worn or mu-
tilated so as to be unfit for further use as cur
rency, they shall be destroyed and the treasury
notes of like denominations issued in their
stead, whichInotes shall be Immediately placed
in the permanent loan fund.
Section IT, That the secretary of the treasury
shall distribute all moneys in the permanent
loan fund among the various government banks
on the following basis: Not less than $4,000
nor more than $500, 900 shall be placed in any
one bank. Between the minimum and maxi
mum here established, the amount to be placed
in each bank shall be determined by the secre-
tary of the treasury, who shall base his action
on the comparative population and business re-
quirementS of the communities where such
banks are established.
Section 10 That any person may deposit in
any government bank, to the amount of one