The Providence news. (Providence [R.I.]) 1891-1906, 1897-12-16
SECRETARY CAGES BILL
Continued from page 4.

Provided. that none OF the outstanding
bonds shall be- received at valuation
greater than their present worth To yield
an income of two and ne-half per ceDtum
per annum and that the bonds hereby au-
thorized. shall be Issued at not less than
par.
sec. 4-Ihat the bonds authorized by
this net and any other bonds OF the Unit
ed States may be deposited with
rs secarty for the circulating
notes OF national banking associations
and any national bank which may deposit
the bonds herein authorized TO be deposit
ed as security for its circulating notes
shall be entitled To receive from the comp
troller of the currency and TO issue such
notes TO an amount equal To the face
value of such bonds
Provided that the aggregate amount OF
bonds deposited by any national banking
association under any law. shall not ex-
ceed the amount OF its capital: and, pro-
vided further. That anything herein con-
tained shall he construed To modify or
repeal the provision cf section 5l67, and
section Oil Of the revised statutt r. author
izing the comptroller of the currency to
require additional deposit OF bonds, or
lawful money. in cas- the market value
of the bonds held 10 secure the circuiat.
ing notos shall foil below the par value of
the circulating notes outstanding for
which hsuch bonds may be deposited as
security.
Section 5.-That any national banking
association whose deposit of bonds is less
than the amount'of its capital may de-
posit with the treasurer of the United
States under such regulations as the seq
retary of the treasury may approve,
United statos notes, treasury notes of
1890 and silver ertiticates. and shall be
entitled TO receive from the comptroller
Of the currency and TO Issue an equal
amount Of its circulating notes. but the
aggregate amount Of bonds. United States
notes, treasury notes of 1890 and silver
certificates deposited by any national
banking association shall not exceed the
amourt { of IL capital
Provided; that the tttal amount Of
United states notes, treasury notes, of
1890 and silver certificates. deposited
with the treasurer of the United Ststes,
shall not exceed the sum of 500 000, 900.
Sec. THAT the secretary of the treas
ury shall ISSUE from time tu time, in his
discretion, bonds of the same class and
character as those described in the third
section OF this act, and shall substitute
the same for equal amounts of u. ,. notes
treasury notes, notes of 1890 and silye,
certificates released as herein provided,
shall become a part OF the general re-
demption fund; and tee secretary of the
any OF said treasury notes of 1890 and said
silver certificates for like amount #
United States notes
Provided. that the amount of bonds
issued under the authority of this section
shall not exceed the sum of 500, 000, 600.
sec. when any national banking as
s1ciati0n now existing or hereafter organ
GRnnsitpd
States bonds, u. >. notes. treasury notes
of 1890 or silver certificates to an amount
Of not less than 80 per centum of its capi-
tai, it shall entitled to receive from the
comptroller oi the currency and to issue
national tani notes in addition to the
80 per centum thus provided to the
amount of 25 per annum Of suck deposits.
but the circulation issued by any national
tanking association shall never be in ex-
csss Of It's paid up capital stock and the
additional notes so issued shall not tie
secured by said deposit, but shnll ronsti-
tute first lien upon oil the remaining
assets of the association issuing such
notes. Upon. the failure of any associa-
tion To redeem its circulating notes above
provided. whether the sams are issued
against deposit Q lurity 4 or against gen.
eial assets. the same shall be promptly
redeemed by the treasurer Of the United
| States.
To secure tho United States against
| loss arising from its guaranty TO nay ana
| redeem such all additional circulating
note II shall be the duty of the comp
| troller of the currency to levy upon and
| collect from every national banking as
sOciation issuing such unsecured circuIa-
| tion tax at the rat, of two por ceptum
per annum on such unsecured circula-
| ton; which said tax of two per centum
per annum shall he paid to the treasurer
| of the United states in equal selni-an-
| nual payments in January and July Of
each year. and when so collected IL shall
constitute "A safety fund out If which the
| United States shall be reimbursed for
any redemption of snid unsecured cir.
! culation, il may make as herein provided
| The safety fund thus created shall be in
| vested by the secretary Of the treasury in
| such government bonds as he may CON
sidar advisable. Said tax Of two per cen
| tum per anum shall be In addition to the
tax of half of one per centum per
| annum on circulating notes hereina
nth )riZed.
Sec. s--1hat each national banking
| association shall deposit and maintain in
| the treasury OF the United States sum
| of lawful money equal TO 10 Fer cent of
| It's aggregate circulation. said SUN to he
| In lieu of the per Centum redemption
| fund now required 10y section three of the
act approved June 20, 1874, TO be MAIN
tulUtu, Huu to bt SuHittt iO III Tue pro-
visions OF existing law respecting said re-
deinption fund not Inconsistent with
the provisions Of this act; ana I'm copsid-
Grafton of the deposits of bonds. u. T..
notes. treasury notes OF 1890 and silver
certificates ana the tax of two per cent on
the unsecured circulating notes of ma
tional banking associations and of the
deposit of lawful money provided in this
section. the faith Of the United States Is
hereby pledged to the redemption in law
full money of the United States all of the
circulating notes of said national banking
associations.
Section 9.-That the comptroller Of
the CURRENCY shall not issue to any
national banking association on aud af-
ter the date when this act shall take
effect, any of tho circulation notes of such
association of loss denomination than
sl0 and whenever any circulating notes
OF less demon ination than $40 shall be re-
deemed or received into the treasury If
the United states they snail be cancelled
and destroyed and other notes OF lawful
denominations shall bp issned i'm THAR