The Topeka state journal., 1897-12-16

entitled to receive from the comptroller
of the currency and to issue an equal
amount of its circulation notes: but
the aggregate amount of bonds, United
States notes. treasury notes of 1890 and
silver certificates deposited by any ma
tional banking association, shall not ex-
ceed the amount of its capital; provid-
ed, that the total amount of the United
| States notes, treasury notes of 1890 and
silver certificates deposited with the
treasurer of the United States under
authority of this section shall not ex-
i ceed the sum of 5000, 600, 000
Section 6-That the secretary of the
treasury shall issue from time to time
in his discretion bonds in the same class
and character as those described in the
third section of this act, and shall sub
stitute the same with the treasurer of
the United States for equal amounts Of
notes, treasury notes of 1890 and silver
| certificates deposited by national bank
ing assOcia tiOns and the bonds so issued
and substituted shall be charged to the
respective national banking assOcia-
tions and be accounted for by them, at
such prices, not less than par, as shall
represent the market value of such
bonds; and the United States notes,
treasury notes of 1880 and silver certif-
icates released as herein provided. shall
become a part of the general redemp-
tion fund; and the secretary Of the
treasury is hereby authorized to ex-
change any OF said treasury notes of
1899 and said silver certificates for
like amount of United States notes;
provided that the amount of United
States notes issued under the authority
of this section shall not exceed the sum
of $500 600, 600.
Section When any national bank
now existing or hereafter organized,
shall have deposited such United States
bonds, United States notes, treasury
notes of 1890, or silver certificates to an
amount of not less than so per centum
of its capital, it shall be entitled to re-
ceiVe from the comptroller of the cur
rency and to issue national bank notes,
in addition to the so per centum thus
provided to the amount of % per cent
Of such deposits; but the circulation IS
sued by any national banking assOcia-
tion shall never be in excess of it's paid
up capital stock and the additional
notes so issued shall not be secured by
said deposit, but shall constitute a first
lien upon all the remaining assets of
the association issuing such notes
Upon the failure of an association to
redeem its circulating notes above pro
vided, whether the same are issued
against deposited security or general
assets, the same shall be promptly re-
deemed by the treasurer of the United
States. To secure the United States
against any loss arising from its
guarantee to pay and redeem such ad-
ditionaI circulating notes it shall be the
duty of the comptroller of the currency
to levy upon and collect from every
national banking association issuing
such unsecured circulation a tax at the
rate of per cent per annum on such
secured circulation which said tax of
> per cent per annun shall be paid to
the treasury of the United States in
equal Semi-annual pay ynentS IN Janu-
ary and July of each year, and when so
collected it shall constitute a safety
fund out of which the United States
shall be reimbursed for any redemption
of said unsecured circulation it may
make as herein provided. This safety
fund thus created shall be invested by
the secretary of the treasury in govern
nent bonds as ne may consider advis-
able Said tax Of . per cent per annum
shall be in addition to the tax of one
half of one per centum per annum
circulating notes hereinafter author
lied.
Section 8-That each additional bank
ing association shall deposit and main
tain in the treasury of the United
States sum of money aggregating 10
per cent of its aggregate circulation,
such sum to be in lieu of the per
centum fund reduction now required by
section 3, of the act approved June 20,
1874, to be maintained and to be subject
to all provisions of existing law re-
sIecting said redemption fund nOtincOn-
SiStent with the provisions of this act.
And in considerations of the deposits
of bonds. United States notes, treas
ury notes of 1880 and silver certificates
and the tax of 2 per centum on the un-
secured circulating notes of national
banking associations and of the depOS-
it of lawful money provided in this Sec
ton the ta1th OF the United States is
hereby pledged to the redemption in
lawful money Of the United States Of
all the circulating notes of said national
banking associations.
Section 9-That the comptroller of the
currency shall not issue to any national
banking association after the date
when this act shall take effect any of
the circulating notes of such associa-
tiOn, of less denomination than ten dol
lars; and when any circulating notes
of less denomination than ten dollars
shall be redeemed, or received into the
treasury of the United States, they
shall be cancelled and destroyed and
other notes of lawful denominations
FnnN faEa y J..
Section 10-That on and after the date
when this act shall take effect the cir
culating notes of the national banking
associations, shan be redeemed at the
office of the United States treasurer in
the city of New York and also at such
other subtreasury offices as may be
designated by the comptroller of the
currency with the approval of the sec
retary of the treasury and the circu-
Iat1ng notes of national banking asSO-
citation so redeemed shall be charged to
the 10 per centum redemption fund of
the association under such rules as
may be prescribed by the comptroller
of the currency, with the approval of
the secretary of the treasury.
Section 11-That in lieu of all existing
taxes every national banking assOcia-
ton issuing notes shall pay to the
treasurer of the United States in the
months of January and July of each
year a tax of One-fourth of one per
centum for each half year upon the av-
erage amount of it's notes in circula-
tlOn; Provided, however. that during
all the period of time intervening be
tween the deposit of United States
notes, treasury notes and sfIverand the
substitution of bonds by the secretary
OF the treasury as in this act provided
the circulation notes specifically issued
therefor and secured by said United
states notes, treasury notes or silver
certificates, shall be exempt from taxa
ton under the provisions of this act
Section 12-Section 5.13S of the revised
statutes shall be amended to read as
follows; No association shall be or
ganized with less capital than one
hundred thousand dollars except that
banks with a capital of not less than
$4,000 may with the approval of the
secretary of the treasury be organized
in any place. the POPULATION of which